2021-08-31-accounts

Company Registration No.: 03075826 Registered Charity No.: 1048304

THE GRAMMAR SCHOOL AT LEEDS

A Company Limited by Guarantee

Report and Financial Statements

31 August 2021

THE GRAMMAR SCHOOL AT LEEDS REPORT AND FINANCIAL STATEMENTS 2021

THE GRAMMAR SCHOOL AT LEEDS REPORT AND FINANCIAL STATEMENTS 2021
CONTENTS	Page
Governors and charity trustees, officers and advisers	1
Governors’ report	4
Reference and administrative information	4
Structure, governance and management	4
Risk management	5
Objects, aims, objectives and activities	7
Review of achievements and performance for the year	10
Independent Auditors' Report	16
Consolidated statement of financial activities	19
Consolidated cash flow statement	21
Notes to the financial statements	22
Consolidated statement of financial activities	36
Schedule of charitable donations paid	38

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS AND CHARITY TRUSTEES, OFFICERS AND ADVISERS

GOVERNORS AND CHARITY TRUSTEES

The Governors are the charity Trustees and company directors of The Grammar School at Leeds (the charity). The Board is a self-appointing body and the Governors, who have served in office during the year and subsequently, are shown below. Changes from last year are indicated in italics.

Name of Governor	Date of appointment		Committees served as at 31/08/21	Committees served as at 31/08/21	Committees served as at 31/08/21	Committees served as at 31/08/21	Expiry of Term
		Corporate Governance	Education	External Relations	Audit & Risk	Business & Management
Mrs E E Bailey	10 November 1995	X					January 2022
Sir Stephen Brown	23 September 2013	X		X			January 2022
Mr J Cross	12 December 2012				X		January2023
Mr M R Curle	28 September 2018	X			X		November 2023
Prof A Harrison Moore	30 November 2017		X				January 2022
Ms J Harper	22 March 2018			X			May 2023
Mr I M Jones	13 December 2006					X	January2023
Mrs D Kenny	14 October 2010		X				November 2025
Dr A L Khan	28 November 2018				X		November 2023
Mrs C Lyons (Joint Vice Chair)	01 September 2016			X		X	November 2021
Mr A M Martin (Chair)	12 November 2014	X				X	January 2025
Mrs J Semple	01 September 2017			X			November 2022
Mrs C Vilarrubi	18 January 2018	X			X		March 2023
Mr M Waldron	24 September 2019		X				September 2024
Mr T J Walsh	23 September 2014					X	January2024
Mr J Woodward (Joint Vice Chair)	10 December 2009			X		X	January 2026

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS AND CHARITY TRUSTEES, OFFICERS AND ADVISERS

OFFICERS

Principal Clerk to the Governors Company Secretary and Director of Finance and Operations

S Woodroofe E Carruthers S Kingston

KEY MANAGEMENT PERSONNEL

The GSAL Leadership Team as at 31 August 2021

Sue Woodroofe , BA (Hons), MEd, NPQH Helen Clapham, BA (Hons), CIM, Pg Dip Rachel Cooper, BA(Hons), MCIPD Emma Cox, BA(Hons), PGCE Mark Cramoysan, BSc (Hons), D Phil Debbie Danks, BA (Hons), D Phil Andrea Evans, BEd (Hons), NPQH Chris Freeman, MA (Hons) Stephen Kingston, BA (Hons), FCA Graham Purves, MPhys, D Phil Gabrielle Solti, BA (Hons), NPQH Helen Stansfield, BEd (Hons)

Principal Director of External Relations Head of Human Resources Deputy Head (Academic); GSAL Primary Deputy Head (Data and Systems) Senior Deputy Head (Academic) Deputy Head (Pastoral); GSAL Primary Deputy Head (Pastoral & Co-Curricular) Director of Finance and Operations Vice Principal and Head of Senior School Vice Principal and Head of Primary School Senior Deputy Head (Pastoral)

ADDRESSES AND CONTACT DETAILS

The Grammar School at Leeds Senior and Primary Schools Alwoodley Gates Harrogate Road Leeds LS17 8GS 0113 229 1552 [e-mail]

www.gsal.org.uk

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS AND CHARITY TRUSTEES, OFFICERS AND ADVISERS

ADVISERS

INVESTMENT MANAGERS

CCLA Investment Management Limited 80 Cheapside London EC2V 6DZ

INSURANCE BROKERS

Bartlett and Company Limited Broadway Hall Horsforth Leeds LS18 4RS

BANKERS

Royal Bank of Scotland Group PO Box No 154 8 Park Row Leeds LS1 1QS

INDEPENDENT AUDITOR

Saffery Champness LLP Mitre House North Park Road Harrogate HG1 5RX United Kingdom

SOLICITORS

Lupton Fawcett LLP Yorkshire House East Parade Leeds LS1 5BD

DLA Piper UK LLP Princes Exchange Princes Square Leeds LS1 4BY

Veale Wasbrough Vizards LLP Orchard Court Orchard Lane Bristol BS1 5WS

CMS Cameron McKenna LLP Cannon Place 28 Cannon Street London EC4N 6AF

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

The Governors of The Grammar School at Leeds (GSAL) present their annual report (including the Strategic Report) for the year ended 31 August 2021 under the Charities Act 2011, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2015.

REFERENCE AND ADMINISTRATIVE INFORMATION

The charity was formed as a company limited by guarantee on 4 July 1995 (registration number 03075826) and is registered with the Charity Commission, (registration number 1048304).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The charity is governed by the Articles of Association of The Grammar School at Leeds, which were adopted by special resolution dated 15[th] June 2005.

Governing Body

The Governing Body, as detailed on page 1, acts as the sole Governing Body for all sections of school, i.e. Primary and Senior.

Recruitment and training of Governors

The Corporate Governance Committee has carefully defined the job description and person specification for a Governor of The Grammar School at Leeds and has appraised the existing structure of the Governing Board. Its aim is to recruit responsible people who are actively interested in our charity and who can give the necessary time commitment. We look over a wide range for a person with the specific expertise required to maintain a balanced, diverse and effective Board in accordance with our governing documents.

An induction procedure is in place for new Governors when appointed. All Governors are made aware of training opportunities available to them.

Governors’ engagement with suppliers, parents and other stakeholders

Where appropriate the Governors’ will consult with professionals to assist with decision making and help consider the likely consequences of the decision in the long term. The interests of all key stakeholders including the GSAL’s employees, suppliers, parents and the wider community are considered as part of the decision-making process. The GSAL actively engages with key stakeholders through employee, parent and supplier feedback.

Organisational management

The Governors, as the charity’s trustees, are legally responsible for the overall management and control of the school and met 5 times in the year. There are a number of sub-committees which meet on a regular basis and report back to the main Governing Body, as detailed below. Membership of these bodies is noted in the details on page 1.

		Number of
Committee	Committee Chair	meetings in year	Executive officers attending /secretary
Audit and Risk	Mr J Cross	3	Principal
			Director of Finance & Operations
			Clerk to the Governors
Education	Mrs D Kenny	4	Principal
			Vice Principal & Head of Senior School
			Vice Principal & Head of Primary School
			Clerk to the Governors
External Relations	Mrs C Lyons	4	Principal
			Director of External Relations
			Clerk to the Governors
Business and Management	Mr T J Walsh	5	Principal
			Vice Principal & Head of Senior School
			Vice Principal & Head of Primary School
			Director of Finance & Operations
			Clerk to the Governors
Corporate Governance	Mrs E E Bailey	3	Principal
			Clerk to the Governors

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

The day-to-day running of the school is delegated to the Principal supported by the GSAL Senior Leadership Team. The Principal, Vice Principal & Head of Senior School, Vice Principal & Head of Primary School and the Director of Finance & Operations attend meetings of the Governing Body in addition to attendance at sub-committees as outlined above.

Group Structure and Relationships

The charity has two wholly owned non-charitable trading subsidiaries, GSAL Enterprises Limited and GSAL Transport Limited whose annual profits are donated to the charity under the Gift Aid Scheme.

The trading activities of GSAL Enterprises Limited relate to revenue from letting of the school campus facilities when not in use by the charity.

Those of GSAL Transport Limited relate largely to the provision of transport services to the charity with some additional revenue generated through providing transport services to third parties, primarily local state schools. This company was created in August 2015 to address operational issues that the charity was experiencing in the provision of before and after school transport for its pupils and thus remove a significant element of external risk.

Both subsidiaries are incorporated in England and Wales. The financial results of both GSAL Enterprises Limited and GSAL Transport Limited are included in the consolidated financial statements.

Whilst not qualifying as related parties, Leeds Girls High School & Leeds Grammar School Foundation, the Morley House Trust and LGS General Charitable Trust share similar charitable objectives that support the School in meeting its own objectives, including provision of bursary funding for pupils and provision of buildings facilities for the education of children.

STRATEGIC REPORT

RISK MANAGEMENT

Principal risks and going concern for the charity and group

The principal ongoing financial risks facing the charity are adherence to sole and aggregated banking covenants and the guarantees given by the charity in respect of the LGS General Charitable Trust’s (the Trust) borrowings. In addition, the Covid-19 pandemic presents a further risk in the current circumstances.

a) Adherence to banking covenants

The principal covenant for the charity itself relates to pupil numbers and the impact that inadequate pupil recruitment and retention has on the charity’s ability to meet the covenant. Pupil numbers are monitored closely throughout the year, including the mix of pupils between school sections, forecasts of future numbers and analysis of demographic trends in the local population. The charity actively markets the school to new pupils in order to generate interest and potential applications, and has procedures in place to address individual pupil retention issues as and when they arise.

Additionally, the charity and the Trust are required to meet a cash flow covenant on an aggregated basis. This risk is addressed through the preparation of detailed budgets and aggregated financial forecasts and sensitivity analyses, which are closely monitored against actual performance to ensure that acceptable levels of cash are generated on an aggregated basis to enable the cash flow covenant to be met.

b) Bank Guarantees

The charity provides guarantees to the Bank as disclosed in note 19 to the financial statements. After making enquiries of the trustees of the Trust, the Governors have a reasonable expectation that the Trust will have adequate resources to make the required capital and interest repayments to its bankers as and when they fall due.

c) Covid-19 pandemic

The Covid-19 pandemic resulted in the closure of the school to all pupils, with the exception of key worker children, for a period in 2020-21 and continues to provide operational challenges in 2021-22. Risks relating to Covid-19 persist either directly, through further partial or full closures of the school, or indirectly, through the future impact on the wider economy, and could result in consequences for fee income, pupil numbers and costs.

The charity has conducted a thorough financial review, including the production of detailed medium and long term forecasts with associated sensitivity analysis, and has concluded that sufficient headroom exists in cash and reserves for the going concern basis to be appropriate.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

After consideration of the charity’s own risks, and having received confirmation from the Trust that they are able to meet their financial obligations, the Governors believe that the charity is well placed to operate successfully in the future and that the banking covenants will be met. Accordingly, the Governors have determined that the financial statements should be prepared on a going concern basis.

Management of risk

The Board of Governors is responsible for the management of the risks faced by the GSAL. An on-going process has been established for identifying, evaluating and managing risks, streamed into educational, financial, external relations and governance risk areas.

The Board of Governors, supported by the Audit and Risk Committee, has identified and prioritised the key strategic and operational risks, and approved the process for dealing with these risks.

Detailed consideration and management of each risk area is delegated to the Audit and Risk Committee, which meets termly and consists of four Governors and key members of the Executive Leadership Team. The Audit and Risk Committee reports to every meeting of the Governing Board.

The key controls used by the charity include:

• Formal written policies covering all aspects of school operations including keeping children safe in education, health and safety, staff recruitment and financial procedures, including bribery and corruption.

• Comprehensive strategic planning, revenue and capital budgeting, cash flow and management accounting, reporting and monitoring.

• Detailed tracking of pupil number movements weekly as well as annual recruitment forecasts.

• Annual review of key objectives in the Strategic Development Plan, including the results of pupils in public examinations.

• Termly review of strategic and operational risks including cyber threats.

• Compliance with statutory requirements and external guidelines as appropriate.

• Formal agendas and minutes for all Committee and Board activity.

• Clearly defined organisational responsibilities and limits of authority.

• Clear authorisation and approval levels.

Through the above risk management procedures the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Employment and employee engagement

The GSAL actively invites opinion, and endeavours to understand the issues important to employees to ensure they have a voice which is heard and respected. The GSAL is committed to establishing collaborative and constructive employment relationships with its staff, to enable both parties to achieve common objectives relating to the efficiency and prosperity of the GSAL. GSAL believes in the value of representation for its staff, in a culture of fairness, openness and equality. In order to implement these principles, the GSAL as an employer has entered into a formal agreement with the staff to meet with staff representatives on a regular basis via the Staff Consultative Forum to discuss workplace issues.

Diversity

The GSAL’s commitment to promoting equality and valuing diversity has expanded considerably recently. In addition to the statutory commitments within the Staff Employment Manual complying with race relations legislation, the Sex Discrimination Act 1975, the Equality Act 2010 and the Disability Discrimination Act 1995, we have also developed vibrant Equality, Diversity and Inclusion (EDI) activities and documents. The school is seeking accreditation with the National Centre for Diversity (NCD), which includes a development plan looking at and embedding best EDI practice in every part of the school life, as a business and as a place of education. An EDI fellow with extensive experience in this field over 30 years has been appointed as an advisor to this work, alongside a positive and proactive student EDI group (UpSoc, which stands for ‘United People’s Society’) that ensures that all areas of EDI are promoted and celebrated throughout the year. Extensive staff training is ongoing and this work has included decolonising the curriculum. The school publishes in many ways and places that it runs on the NCD’s FREDIE principles; Fairness, Respect, Equality, Diversity, Inclusion and Engagement.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

Remuneration

Remuneration is set annually by the Board taking into account national pay body settlements and the broader issues of pay and employment conditions within the independent sector and the local market. Remuneration of the Senior Leadership Team is reviewed by the Business & Management committee annually, and recommendations made to the main Board.

Disabled employees

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group continues and that appropriate training is arranged. It is the policy of the charity that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable objects

The objects of the charity are the advancement of education and training for boys and girls.

Public benefit aims and intended impact

As a registered charity, the Governors of the GSAL aim to ensure that our activities in support of this charitable aim are of benefit to the public, and have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

In meeting the above objects, the school’s public benefit aim is to provide pupils with a friendly and caring learning community in which their abilities and talents are developed by superb teachers. We aim to produce confident and versatile young people, capable of high achievement, rising to any challenge, and having a positive contribution to make to the wider community.

Our pastoral system – widely regarded as a model of excellence and recognised as such by Independent Schools Inspectorate (ISI) inspection – promotes and rewards good social skills and consideration for others. As a result, friendships formed at the GSAL often endure for many years and unite nationalities and cultures.

Bursarial support is offered to assist pupils who may otherwise have been unable to attend the GSAL on the grounds of financial cost. The extent of these bursaries is detailed further in the review of achievements and performance for the year.

The GSAL encourages pupils to consider their place in the wider community, to develop a strong sense of social responsibility, and to support those less fortunate than themselves. This is achieved through many avenues, with pupils voluntarily taking part in charity and community projects, as well as making contributions to our weekly charity collection and organising fundraising events throughout the year including competitions, concerts, food sales, fun runs, carol singing, coffee mornings and non-uniform days to benefit local, national and global charities.

A wide range of community groups benefit from our provision of sports, meetings and event facilities. For some - charities, fundraisers and those offering activities which benefit children - use of the school’s facilities and/or equipment is free or substantially discounted.

Partnerships with local schools and organisations

The school takes its civic role very seriously, and works hard to ensure that it serves a community well beyond its school gates. The school delivers an extensive primary and secondary school outreach programme and it also works in partnership with a number of organisations which share its objectives and values. The aim of these projects are to provide high quality activities which enrich the lives of our community, with the aim of helping Leeds be the best city in the UK for children and young people.

Our partners include:

• Ilkley Literature and Milim Literature Festivals to increase access to leading literature festivals.

• Leeds City Museum to provide free family fun days during the school holidays.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

• Otley Science Festival to inspire children about the wonders of science.

• Leeds Catholic Schools’ Partnership and the White Rose Academy chain to raise aspirations and provide opportunities for young people.

• A joint Combined Cadet Force with Bishop Young Community Academy.

• White Rose and Yorkshire Schools’ Teaching Alliances to support teacher training and development.

• LEAP (Leeds Enterprise and Advisory Programme) to develop student’s enterprise skills.

• Kamuzu Academy, Malawi whereby we collaborate on a range of projects.

These partnerships and our school outreach programme enable the school to deliver activities to over 2,000 children and young people a year drawn from across Leeds, West and North Yorkshire take part in high quality cross-curricular activities. Events include maths and science workshops, arts performances and access to our higher education and careers support. We have also established a Young Scholars Network to raise aspirations and help to build the ‘cultural capital’ of over 100 year 10 gifted and talented pupils who are in receipt of free school meals. We also provide specific support and assistance through our student volunteers.

Our facilities are available for use by community groups, charities, educational organisations and businesses. Recent activities have included a live broadcast of Marty Jopson’s ‘Zap’ science show to over 2,000 primary pupils across Yorkshire, a live virtual workshop attended by over three thousand pupils aged 3 to 6 from more than 40 primary schools to mark the launch of a children’s literacy charity and a virtual careers event for students at the GSAL and two partner schools; Leeds East Academy and Mount St Mary High School. The GSAL Futures Conference, included more than 30 alumni of Leeds Grammar School, Leeds Girls’ High School and GSAL, all at different stages of their careers, who were on hand to share their experiences, offer advice and answer students’ questions.

We are also active supporters of Leeds Community Foundation, Child Friendly Leeds, West and North Yorkshire Chamber of Commerce, who like the school are committed to ensuring that Leeds is a an economically successful and compassionate city.

Principal activities of the year

The principal activity has been to continue to provide a high quality education for boys and girls. The school consists of three sections; Primary School (age 3-11), Senior School (age 11-16) and Sixth Form (age 16-18).

The GSAL prides itself on being the “best of both”; offering the best of both single-sex and co-educational environments under the diamond model. We also offer the best of both through our sharp focus on academic success, being mirrored in our staff’s devotion to providing a co-curricular programme that is second to none. These aspects are both underpinned by our pastoral care system that ensures every pupil is nurtured and supported throughout their GSAL journey to reach their full potential.

Review of progress in the year against the whole school development plan

Our operational objectives are set to reflect our charitable purpose, our educational mission, and our ethos. 2020-21 saw the commencement of the second year of our three-year whole school development plan alongside the development of a revised three year plan covering 2021-24. The forthcoming academic year aims to build on the results achieved this year.

Key achievements from the 2019-2022 whole school development plan

• Mission and vision; progress has continued to be made against our aim of providing the most inspiring and successful educational experience. The relocation of Rose Court to the Alwoodley Gates site has created an age 3-18 all through school on one campus. We received the highest possible rating of ‘excellent’ following a full inspection by the Independent Schools Inspectorate (ISI) in November 2019 and we were also named The Sunday Times North Independent Secondary School of the Year for 2020 in the same week. The following year, in November 2020, we passed another, short ISI inspection that was then followed by being named as The Sunday Times North Independent Secondary School of the Decade.

• Teaching and learning; with the new age 3 – 11 Primary School on one site, the curriculum was completely redesigned to ensure a coherent development of skills and knowledge through the primary phase and provide greater opportunities to develop higher order thinking and questioning. With the final roll-out of 1-1 devices in Senior School in autumn 2019, further developments to enhance the use of technology were introduced, all of which proved essential during the lockdowns that followed so that no teaching and learning time was

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

lost. Furthermore, no attainment gap has been found in post-lockdown monitoring and public examination results have been outstanding.

• Pastoral and co-curricular; the school successfully rolled out its new pastoral approaches to students based on the concept of THINK (when you want to say or do something, is it T rue, H elpful, I nspiring, N ecessary, K ind). The Student Support Services area and use of school counsellors continued to develop and provided a huge resource to parents and pupils, with an additional nurse appointed to further improve the coverage on site and at weekends. Pastoral support moved online during the lockdowns so that all pupils were wellsupported in remote 1-1 meetings and lessons as well as online resources. Webinars were also provided to support parents to do the same.

• Although the co-curricular programme was disrupted by COVID-19, work has continued on developing the range and breadth of activities and opportunities, helped by a new structure in the Music department and the new 3G pitch for sport. From September 2020, a full co-curricular programme was established, some online and some face to face, including innovative Saturday sport events, even though school fixtures were not allowed by the government.

• Staff; the Executive Leadership Team has been embedded with the two new Vice Principals (each one Head of their own school, primary or senior) having started in September 2019. The Primary School has been restructured following the relocation of Rose Court in summer 2020. The staffing structure in Primary School has been completely redesigned, including a new Senior Leadership Team. Our staff wellbeing and professional development initiatives have continued to develop and expand during the year.

• School culture and external relations; initial scoping work has taken place to review and streamline both internal and external communications and we are finalising the plans for a new parent portal. Significant progress has been made on recruitment and retention of pupils, driven partly by the quality of our new Primary School and our single site offer, together with the strength of our online teaching provision which received a huge amount of word of mouth advertising to spread this news.

• Capital investments, operational resources and investments; we successfully relocated Rose Court to the Alwoodley Gates site, completing all of the required redevelopment work as planned in time for the start of the 2020-21 academic year after selling the Headingley Rose Court site for full market value to Leeds City Council to be used for a special needs school from September 2022. The challenges of COVID-19 cut short some excellent progress on the green agenda and, beyond that, necessitated continual updates to our financial and operational scenario planning. Despite this, progress continued to be made with our IT systems and infrastructure during the year.

Objectives for the coming year

The key objectives from the 2021-24 development plan for 2021-22 are summarised below:

Mission & Vision

• Uphold the aims of the school’s strategic review, ethos and values, providing the most inspiring and successful educational experience with a particular focus on individual respect following the international emphasis on Black Lives Matter and Me Too issues.

• To embed a new and improved support for equality, diversity and inclusion (EDI) where everyone feels valued and respected.

Teaching & Learning

• To ensure a stimulating academic experience for all students within and beyond the classroom.

• To ensure that assessment and monitoring is used coherently, clearly and consistently across the school to inform and improve teaching & learning and enable staff, students and parents to better measure and monitor student progress.

• To develop a new, whole school approach to sport and wellbeing.

Pastoral & Co-Curricular

• To review pastoral and wellbeing support following the pandemic to maximise new structure, with particular focus on safeguarding and online safety, wellbeing, EDI, counselling and suicide prevention.

• To continue to develop a broad range of quality, inspiring co-curricular activities and opportunities, coherently offered from Primary school to Senior school to respond to pupil interests and extend them.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

• Pupil voice: to make best use of student leadership and representatives across the school to ensure effective, on-going dialogue and feedback to make a positive change for students.

• To ensure that the GSAL is a kind and respectful school from age 3-18 with the highest standards of behaviour and care for all, evident at all times.

Staff

• To continue to develop the programme for staff wellbeing so that the GSAL is known to be a positive and edifying environment to work and grow professionally. To build a sense of team that sees staff as a part of the whole, support and teaching staff working together and equally valued.

• To maintain strong and positive staff morale and sense of belonging through turbulent times from external threats facing the sector, e.g. cost of Teachers’ Pension Scheme, review of Business Rates and other political pressures with budgetary implications.

School Culture & External Relations

• To ensure that communications are streamlined and of the highest quality, internally and externally, through all media.

• To reset the PFA to grow the parental community’s engagement and involvement at school.

• To promote the development strategy to include improved alumni relations and increased fundraising capacity to meet objectives of strategic review.

• To improve recruitment and retention of pupils.

• To streamline and improve parent communications via a parent app.

Capital Investments, Operational Systems and Resources

• To continue to improve the IT infrastructure of the estate, including cyber security.

• To improve the healthy eating options in school for staff and pupil wellbeing.

• To embed the GSAL’s green credentials, ensuring the resources available to us are used in a socially responsible manner.

• To complete the sports barn project that will extend covered sports areas available for pupil use in all weathers.

Grant-making policy

While authority to provide additional funds to support bursaries rests with the Governing Body, the discretionary distribution of those funds rests with the Principal in accordance with agreed criteria and procedures.

All applicants are assessed according to means and bursary provision awarded according to a common means–tested scale.

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Section 172(1) statement

The Governors recognise the importance of their governance structure in supporting the operational performance and long term success and sustainability of the school. Details of the training and governance structure are included within section ‘structure, governance and management’, the details of which can be found on page 4, and details of how the school engages with other key stakeholders is included within the relevant section of the Governors’ Report.

Operational performance

The academic year 2020-21 was a challenging year, which included many successes, but one which was ultimately overshadowed by the COVID-19 pandemic for a second year running.

COVID-19 pandemic

In line with Government policy, the school closed on 6 January 2021 to all pupils with the exception of key worker children. The GSAL responded by switching to remote learning to enable pupils to continue their education virtually, with timetabled lessons via video link, bespoke video content, remote work setting and marking and scheduled form

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

times to provide pastoral as well as academic support. The provision was especially strong in the senior school where all pupils are provided with a 1-2-1 laptop as standard.

As of 8 March 2021, the GSAL welcomed back all students in line with government advice for the remainder of the spring term.

COVID-19 has presented significant operational challenges during the year. This has included running a physical school for key worker children whilst simultaneously running a virtual school for all other pupils along with having to implement the additional health and safety measures required to keep our staff and pupils safe. All of these factors have had a financial impact on the year, which is covered in the financial review and results for the year section.

We recognise that this has again been a very difficult and testing time for our parents and we are extremely grateful for the support that they have continued to show the school.

Inspection and awards

In November, the GSAL was named The Sunday Times North Independent Secondary School of the Decade, where it was said “with around 2,000 children across all ages from three to 18, the school has the critical mass to offer a range of extra-curricular activities to rival any school and children are encouraged to develop their interests inside the classroom and out. Committed and inspirational teaching is backed up by supportive pastoral care to allow the children to be the best they can be.”

Exam performance

Although awarded under different circumstances this year, exam results still reflect the efforts of our hardworking pupils and dedicated staff. Out of an A-Level student cohort of 193, 88% of grades achieved were A* to B. 92% of students progressed to higher education and 65% of students achieved places at Russell Group universities with seven students obtaining Oxbridge places. 21 students secured places on highly selective courses for medicine, dentistry or veterinary sciences.

From a cohort of 202 GCSE students, 57% of students achieved grades of 7 (formerly grade A) or above in every subject, including thirteen who secured the highest possible grade in every subject. Individually, in 2021, 61% of the GCSE grades were at an 8 or above, significantly higher than the national average.

Co-curricular, sporting and academic achievements

Despite opportunities being reduced again by COVID-19, 2020-21 still saw another year of individual and team successes across many areas, both within and outside the GSAL. Highlights included:

• A Year 13 pupil qualified for the highly regarded British Informatics Olympiad finals. The competition is open to all students in pre-university education in mainland Britain, and involves solving problems against the clock, using nothing more than a pen, paper and a computer.

• Two Year 13 pupils who have been debating together since Year 10 competed in 2 national competitions, including; qualifying for the finals of the prestigious ‘Oxford Union’s Schools’ Debating Competition’ and lifting the coveted title at the ‘Manchester University Schools’ Debating Competition’ – the UK’s largest one day schools’ debating competition.

• A Year 12 pupil achieving a hat trick of successes in a number of national competitions including; a finalist in the BBC young reporter completion, a prize winner at the inaugural Louise Rennison National Funny Awards and the award of a bursary by New Writing North which enables attendance at a professional writing course.

Co-curricular, sporting and academic achievements are celebrated regularly within school and at the annual speech days and prize giving ceremonies. Further details can be obtained from the school’s website www.gsal.org.uk and in the GSAL Life and Memento publications.

Bursary support

During the year, we provided some form of financial assistance to 200 pupils amounting to £1,629k, equivalent to 6.2% of fees receivable (see note 14). Of this, 115 means-tested fee bursaries, at an average value of 84% of the senior school fee, were awarded totalling £1,392k, analysed as follows:

• 47 at 100% of the fee

• 37 between 75% and 99% of the fee

• 20 between 50% and 74% of the fee

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

• 11 between 25% and 49% of the fee

Of the total £1,629k of assistance, £145k of temporary financial support grants were awarded to 56 pupils and scholarships and music awards totalling £92k were awarded to 29 pupils.

Fundraising Performance

Members of the GSAL’s staff and student body organise various fundraising events and co-ordinate a variety of activities both within the school and the wider community to raise funds for an array of charitable cases throughout each year. The school does not use any professional fundraisers or involve commercial participators in its fundraising efforts. The GSAL is registered with the Fundraising Regulator and, as a result, has signed up to the Code of Fundraising Practice. No complaints have arisen this year with regards to the school’s fundraising activity. All marketing/advertisement of events and activities is overseen by the External Relations department to ensure that it is not unreasonably intrusive or persistent.

It is appropriate to record appreciation for many individual and corporate donations that the school has received during the year. Donations towards the bursary provision have been received from the three Leeds Grammar School and Leeds Girls’ High School Foundation Award funds (£294k in total) and an individual family donation (£17k).

Other restricted funds include weekly donations and collections from pupils (Seniors £4k; Primary £7k), for local and national charities, and £1k was raised through sales and fundraising events in the year for Malawi.

Over £12k was raised for charity by pupils through a wide variety of fundraising events. Details of the donations made during the year are included in the additional information section at the end of these financial statements.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

This report was undertaken in accordance with the SECR reporting requirements. This report contains details on our annual UK energy consumption across our UK business, and energy efficiency actions implemented.

UK Greenhouse gas emissions and energy use data for the period 1 September 2020 to 31	2020/21
August 2021
Energyconsumption used to calculate emissions(kWh)	6,822,606
Energyconsumption break down(kWh):
•gas
• electricity
• transport fuel
Scope 1emissions in metric tonnes CO2e
Gas consumption	945
Owned transport – mini-buses	1
Total Scope 1	946
Scope 2emissions in metric tonnes CO2e
Purchased electricity	391
Scope 3emissions in metric tonnes CO2e
Business travel in employee owned vehicles	0.47
Totalgross emissions in metric tonnes CO2e	1,337
Intensityratio Tonnes CO2eperpupil	0.64

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

2020 Comparatives

2020 Comparatives
UK Greenhouse gas emissions and energy use data for the period 1 September 2019 to 31	2019/20
August 2020
Energyconsumption used to calculate emissions(kWh)	6,601,327
Energyconsumption break down(kWh):
•gas
• electricity
• transport fuel
Scope 1emissions in metric tonnes CO2e
Gas consumption	868
Owned transport – mini-buses	5
Total Scope 1	874
Scope 2emissions in metric tonnes CO2e
Purchased electricity	432
Scope 3emissions in metric tonnes CO2e
Business travel in employee owned vehicles	1.44
Totalgross emissions in metric tonnes CO2e	1307
Intensityratio Tonnes CO2eperpupil	0.64

Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per pupil, the recommended ratio for the sector.

Measures taken to improve energy efficiency

During the year we have made improvements to the building management system (BMS) which allows us to control the temperature in areas of the school on an individual basis versus supporting a continuous temperature throughout. We have continued with the programme to remove fluorescent lights and replaced them with LED fittings which consume approximately 1/3rd of the amount of power required to support the old fittings. Heating and vent pumps have been replaced with more energy efficient equivalents that comply with modern standards.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Similar to 2019-20, the underlying financial performance in 2020-21 was impacted by the Covid-19 pandemic.

Consolidated net income before transfers for the year was £403k (2020: £2,205k). The decrease in net income is directly attributable to the 2019-20 financial year containing a one-off receipt in respect of the Rose Court property sale which was not replicated in 2020-21.

Some of the key items contributing to the net position were:

• Fee remissions provided to parents of £560k (included within tuition fees on page 18)

• Temporary support grants awarded to assist parents experiencing temporary financial hardship of £145k

• Support received as a result of furloughing appropriate staff via the Government’s Coronavirus Job Retention Scheme of £133k

In 2020-21, the school provided additional support to parents of £705k through fee remissions and temporary financial support. This additional support was in excess of the cost savings generated during the school closure period and represented a net cost in the financial year.

In line with our charitable objectives, the GSAL provided £1,629k (2020: £1,799k) of bursary, scholarship and temporary financial hardship support to parents in 2020-21, the equivalent of 6.2% of gross fee income. This included an additional contribution from the school of £902k (2020: £985k) to support restricted funds over and above the £415k (2020: £402k) transfer required by the Memorandum and Articles, representing 2% of Senior School fees. In total, the school provided support to parents of £2,188k through a combination of fee remissions, bursaries, scholarships and temporary financial assistance in the academic year 2020-21.

After these transfers total funds carried forward were £13,081k (2020: £12,678k), split between unrestricted funds £13,020k and restricted funds £61k.

Reserves policy

Notes 15 and 16 to the financial statements show movements on the unrestricted funds and the assets and liabilities attributable to the unrestricted funds respectively.

Unrestricted funds amount to £13,020k of which £4,375k is invested in fixed assets.

£8,645k is uncommitted reserves, though this is funded through long-term debtors of £5,632k. These debts are considered to be recoverable, but do not represent liquid reserves available to spend.

The Governors have determined that the appropriate minimum level of free revenue reserves held should be one terms’ expenditure on salaries, approximately £5.3m. Total free reserves currently exceed this level, at £8.6m (2020: £7.4m) and thus have met the requirement, though only £3m represent liquid funds that are readily available to spend. Excess free reserves above the minimum are currently being held due to the ongoing uncertainty surrounding the Covid-19 pandemic.

Investment powers and policy

The Articles of Association allow the Governing Body to invest any part of the funds of the charity in such manner as they consider being most beneficial for the achievement of the objects of the charity. Investment income is accounted for as income when receivable and realised and unrealised investment gains are recognised in the SOFA under other recognised gains and losses.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2021

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES

The Governors (who are also the trustees and directors of The Grammar School at Leeds for the purposes of charity and company law) are responsible for preparing the Governors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP (FRS 102);

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Governors are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware; and

• the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the reparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITOR

Saffery Champness LLP has expressed their willingness to continue in office as auditor and their reappointment will be considered at the forthcoming Annual General Meeting.

The Governors’ Report, including the Strategic Report, is approved by the Governing Body and signed on behalf of the Board.

A M Martin

Chairman

17 December 2021

15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GRAMMAR SCHOOL AT LEEDS

Opinion

We have audited the financial statements of The Grammar School at Leeds (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2021 which comprise the consolidated statement of financial activities (incorporating income and expenditure account), the consolidated balance sheet, the charity balance sheet, the consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 August 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.

Other information

The Governors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Governors’ Annual Report which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Governors’ Annual Report which includes the Directors’ Report and the Strategic Report has been prepared in accordance with applicable legal requirements.

16

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GRAMMAR SCHOOL AT LEEDS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Governors’ Annual Report and Strategic Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Governors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Governors

As explained more fully in the Statement of Governors’ Responsibilities set out on page 15, the Governors (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the group and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the Governors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with Governors and updating our understanding of the sector in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales, the Independent School Standards as found in the Education and Skills Act 2008 and guidance issued by the Department for Education.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

17

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GRAMMAR SCHOOL AT LEEDS

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sally Appleton (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP

Chartered Accountants Mitre House North Park Road Harrogate HG1 5RX

Statutory Auditors

Date: 21 December 2021

Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

18

THE GRAMMAR SCHOOL AT LEEDS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account) Year ended 31 August 2021

and expenditure account) Year ended 31 August 2021
Note INCOME FROM: Charitable activities– education; Tuition fees Other income 2 Other trading activities - trading income Donations - general Donations – Rose Court sale proceeds Investments Other income – surplus on sale of Rose Court TOTAL INCOME EXPENDITURE ON: Raising funds: Trading expenditure Charitable activities - education: Education and grant making 7 TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) Transfers between funds: Transfer to Expendable Bursary & Hardship Fund 3 Additional Transfer to Expendable Bursary & Hardship Fund 3 NET MOVEMENT IN FUNDS 4 RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds for the year TOTAL FUNDS CARRIED FORWARD 14,15,16	Unrestricted funds Restricted funds Total funds 2021 Total funds 2020 £’000 £’000 £’000 £’000 26,291 - 26,291 24,726 1,425 - 1,425 2,219
	27,716 - 27,716 26,945 68 - 68 228 - 324 324 445 - - - 2,240 189 - 189 195 - - - 760
	27,973 324 28,297 30,813
	(1,095) - (1,095) (1,173) (25,151) (1,648) (26,799) (27,435)
	(26,246) (1,648) (27,894) (28,608)
	1,727 (1,324) 403 2,205 (415) 415 - - (902) 902 - -
	410 (7) 403 2,205
	12,610 68 12,678 10,473 410 (7) 403 2,205
	13,020 61 13,081 12,678

All income and expenditure derives from continuing operations.

There are no recognised gains and losses for the current and prior period other than as stated above.

See note 22 for comparative Consolidated Statement of Financial Activities analysed by fund.

19

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED AND CHARITY BALANCE SHEETS At 31 August 2021

			Group		Charity
		2021	2020	2021	2020
	Note	£’000	£’000	£’000	£’000
FIXED ASSETS
Tangible assets	8	4,284	2,479	4,254	2,459
Assets under construction	9	91	1,961	91	1,961
Investments	10	25	25	25	25
		4,400	4,465	4,370	4,445
CURRENT ASSETS
Stocks		17	18	16	16
Debtors due within one year	11	1,213	1,974	1,325	2,190
Debtors due after one year	11	5,632	5,632	5,632	5,632
Bank balances and cash		17,066	14,790	16,958	14,470
		23,928	22,414	23,931	22,308
CREDITORS: amounts falling due within one year	12	(14,804)	(13,740)	(14,691)	(13,614)
NET CURRENT ASSETS		9,124	8,674	9,240	8,694
TOTAL ASSETS LESS CURRENT LIABILITIES		13,524	13,139	13,610	13,139
after more than one year CREDITORS: amounts due	13	(443)	(461)	(443)	(461)
NET ASSETS		13,081	12,678	13,167	12,678
FUNDS
Restricted funds	14	61	68	61	68
Unrestricted funds	15	13,020	12,610	13,106	12,610
TOTAL FUNDS	16	13,081	12,678	13,167	12,678

These financial statements of The Grammar School at Leeds, Company Registration Number 03075826 were approved by the Governing Body and authorised for issue on 17 December 2021 and signed on their behalf by:

A M Martin Chairman

20

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2021

Net cash flows from operating activities Cash flows from investing activities: Interest Received Purchase of tangible fixed assets Sale of tangible fixed assets Increase in cash and cash equivalents in year Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	Note A	2021 2020 £'000 £'000 2,688 2,784 189 195 (613) (1,667) 12 760
		2,276 2,072 14,790 12,718
		17,066 14,790

Cash and cash equivalents are represented by bank balances and cash.

NOTE A: RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net incoming resources Interest receivable Loss/(Profit) on disposal of fixed asset Depreciation Decrease/(Increase) in stocks Increase in creditors <1yr (Decrease)/Increase in creditors >1yr Decrease/(Increase) in debtors Net cash inflow from operating activities	2021 2020 £’000 £'000 403 2,205 (189) (195) 3 (706) 663 527 1 (5) 1,064 1,128 (18) 64 761 (234)
	2,688 2,784

21

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

Company and charitable status

The Grammar School at Leeds, a public benefit entity, is incorporated in England and Wales as a company limited by guarantee not having a share capital. There are currently 16 Governors who are also the members of the company. Each member has undertaken to contribute to the assets in the event of winding up a sum not exceeding £1. If upon winding up or dissolution of the company there remains, after the satisfaction of all debts and liabilities, any assets these should be given or transferred to Leeds Grammar School and Leeds Girls’ High School Foundation or to some other charitable body or bodies having objects similar to the objects of the company.

The charity is a registered charity. The registered office is given on page 2.

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective 1 January 2015; and the Companies Act 2006.

The charity meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemption available to it in respect of its separate financial statements in relation to presentation of a cash flow statement.

The principal accounting policies are summarised below.

Preparation of financial statements – going concern basis

• a) The principal financial risk facing the charity is a reduction in income if there were to be a reduction in pupil numbers.

This risk is being addressed through preparation of detailed financial forecasts and sensitivity analyses, which demonstrate that the charity will continue to generate acceptable levels of cash. Pupil numbers are monitored closely throughout the year, including the mix of pupils between school sections, forecasts of future numbers and analysis of demographic trends in the local population. The charity actively markets the school to new pupils in order to generate interest and potential applications, thus helping to preserve and grow pupil numbers, as well as identifying potential leavers and addressing any concerns these may have in order to increase retention of pupils, particularly at potential break points in the school.

After consideration of the charity’s business risks, the Governors believe that the charity is well placed to operate successfully in the future.

• b) Bank Guarantees given in respect of third parties

The charity has provided guarantees under a Senior Facility Agreement and a Bridging Loan Agreement between the Royal Bank of Scotland (the Bank) and the LGS General Charitable Trust (the Trust) as disclosed in note 19 to the financial statements. The facility agreements embody covenants both for the charity and the Trust.

After making enquiries of the trustees of the Trust, the Governors have a reasonable expectation that the Trust will have adequate resources to make the required capital and interest repayments to its bankers as they fall due and that the associated covenants will be met.

• c) Covid-19 pandemic

The Covid-19 pandemic resulted in the closure of the school to all pupils, with the exception of key worker children, for a period in 2020-21 and continues to provide operational challenges in 2021-22. Risks relating to Covid-19 persist either directly, through further partial or full closures of the school, or indirectly, through the future impact on the wider economy, and could result in consequences for fee income, pupil numbers and costs.

The charity has conducted a thorough financial review, including the production of detailed medium and long term forecasts with associated sensitivity analysis, and has concluded that sufficient headroom exists in cash and reserves for the going concern basis to be appropriate.

In accordance with the above considerations, the Governors have determined that the financial statements should be prepared on a going concern basis.

Basis of consolidation

The consolidated financial statements of the group comprise the financial statements of The Grammar School at Leeds and its trading subsidiaries, GSAL Enterprises Limited and GSAL Transport Limited (GTL).

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

A separate Statement of Financial Activities (incorporating Income and Expenditure Account) for the charity has not been presented, because the group has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. However, the charity’s net income for the year in accordance with the Companies Act 2006 was £489k (2020: £2,205k).

Income

All income is recognised in the statement of financial activities when the charity has entitlement to the funds, conditions for receipt have been met, it is probable that the income will be received and the amount can be measured reliably. Where a claim for repayment of income tax has or will be made, such income is grossed up for the tax recoverable. The following accounting policies are applied to income.

Tuition fees - credit is taken for fees relating to the school year. Tuition fees received in advance in respect of future academic years are deferred until the above criteria for income recognition are met.

Investment income - investment income is accounted for when receivable and the amount can be measured reliably by the group; this is normally upon notification of the interest paid or payable by the bank.

Donations - donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported under fundraising expenditure.

Legacies - Legacy income is included when the charity is advised by the personal representative of an estate that payment will be made, and the amount involved can be quantified.

Other – school catering, pupil transport, and any other miscellaneous income is accounted for when the above criteria for income recognition are met.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. The charity’s operating costs include staff costs, premises costs and other related costs. Such costs are allocated as follows:

Cost of raising funds - includes costs relating to fundraising and trading company expenditure.

Direct charitable expenditure - includes all expenditure directly related to the sole activity of the charity, being the education of children. Expenditure is categorised between teaching costs, welfare costs, premises costs, financing costs, support costs, governance costs and grants, awards and prizes.

Fund accounting

The charity maintains the following funds:

Restricted funds - represent grants, donations and legacies received which are allocated by the donor for specific purposes, including donations received and collections made on site for direct payment to specific third party beneficiaries.

Unrestricted funds - represent funds which are expendable at the discretion of the Governing Body in the furtherance of the objects of the charity and include designated funds representing monies allocated from unrestricted reserves by the Governors for designated purposes. Such funds may be held in order to finance both working capital and capital investment.

Fixed assets and depreciation

Tangible fixed assets are stated at cost, less accumulated depreciation and any provision for impairment. Tangible fixed assets are capitalised and depreciated in equal annual instalments over their estimated useful lives as follows:

Vehicles	4 years
Plant and machinery	7 years
Office and computer equipment	3 years
Furniture and fixtures	10 years
Land and buildings	25 years

The school buildings at Alwoodley are the property of the LGS General Charitable Trust. The land at Alwoodley is the property of the Leeds Grammar School and Leeds Girls’ High School Foundation. The Governors are required to maintain the fabric of the buildings under the terms of the leases.

23

THE GRAMMAR SCHOOL AT LEEDS NOTES TO THE FINANCIAL STATEMENTS

Investments

Investments are stated in the financial statements at market value. Realised and unrealised gains and losses on investments are disclosed in the statement of financial activities.

In the parent charity balance sheet, investments in subsidiary undertakings are measured at cost less impairment.

Stocks

Stocks of food and merchandise for re-sale are valued at the lower of cost and net realisable value.

Employee benefits

Contributions made by the charity to the Teachers’ Pension Agency superannuation scheme (a defined benefit scheme) and the group personal pension schemes for support staff (a defined contribution scheme) are charged directly to the statement of financial activities.

Operating leases

The group classifies the lease of land and buildings and vehicles and equipment as operating leases, as the title to the leased items remains with the lessor and the economic life of the leased items is substantially longer than the lease term. Rentals due under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term.

Financial instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs).

The charity and group only have financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

2. OTHER INCOME (UNRESTRICTED)

School catering Miscellaneous Coronavirus Job Retention Scheme grant Pupil transport GSAL Transport Limited other income	2021 £’000 2020 £’000 835 787 118 123 133 925 308 284 31 100
	1,425 2,219

Included within unrestricted income is £133k (2020: £925k) received under the Coronavirus Job Retention Scheme, which has been fully expended in the year on the wages and salaries of furloughed staff. The equivalent costs have been included within unrestricted expenditure.

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

3. TRANSFERS BETWEEN FUNDS

Expenditure on Bursaries, Scholarships and Hardship Awards is accounted for as restricted fund expenditure in the SOFA and is funded by restricted fund donations from the Leeds Grammar School and Leeds Girls’ High School Foundation Award Funds and other external third parties, with the balance being provided by the GSAL as a transfer from unrestricted funds. The Memorandum and Articles requires the Governors to apply a minimum of 2% of the Senior School Independent fees towards Bursaries.

2% of Senior School Independent fees Additional bursary transfer from the GSAL unrestricted funds Net proceeds of donation from sale of Rose Court transfer to unrestricted funds	2021 £’000 2020 £’000 415 402 902 985 - (2,044) 1,317 (657)

4. NET MOVEMENT IN FUNDS

Net movement in funds is stated after charging/ (crediting):

(Profit)/loss on disposal of fixed assets Depreciation - owned assets Fees payable to the charitable company's auditor: For audit related assurance services For other services - taxation & project advice Rentals under operating leases - buildings Rentals under operating leases - vehicles and equipment	2021 2020 £'000 £'000 3 (706) 663 527 17 23 15 - 3,361 3,540 436 475

The charity’s net income for the year in accordance with the Companies Act 2006 was £489k (2020: £2,205k).

5. GOVERNING BODY REMUNERATION AND RELATED PARTY TRANSACTIONS

During the year, no travel expenses were paid to Governors for attending meetings (2020: £1,430 paid to 5 Governors).

No governors were remunerated during the current or prior years.

The children of governors and staff that attend the school do so under normal commercial terms.

All transactions between the charity and its subsidiaries, GSAL Enterprises and GSAL Transport Ltd, are eliminated on consolidation. In the year, the following transactions took place between GSAL and its subsidiaries:

GSAL Transport Limited

Under gift aid, no donation is required from GSAL Transport to the GSAL (2020: £51k). Income to the GSAL from GSAL Transport £10k in respect of support services provided (2020: £10k). Expenditure paid by the GSAL to GSAL Transport £932k in respect of transport services and advertising (2020: £986k).

A balance of £143k was owed to the GSAL from GSAL Transport limited at 31 August 2021 (2020: £173k).

GSAL Enterprises Limited

Income to the GSAL from GSAL Enterprises £24k donation under gift aid (2020: £101k) Income to the GSAL from GSAL Enterprises £nil in respect of the provision of consumables (food) for events (2020: £1k).

Expenditure paid by the GSAL to GSAL Enterprises £2k in respect of the provision of consumables (drinks) for events (2020: £10k).

A balance of £24k was owed to the GSAL from GSAL Enterprises limited at 31 August 2021 (2020: £101k).

25

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

6. INFORMATION REGARDING EMPLOYEES

Average headcount of persons employed Teachers Support staff Average number of persons employed (full time equivalents) Charitable activities: Teachers Support staff Staff costs during the year: Wages and salaries Social security costs Pension costs	Consolidated 2021 2020 No. No. 222 212 249 241 471 453 No. No. 186 185 167 168 353 353 2021 £’000 12,721 1,227 2,291 16,239	Charity 2021 2020 No. No. 222 212 229 223
		451 435
		No. No. 186 185 151 154
		337 339
		2020 £’000 13,198 1,288 2,335
		16,821

During the year there were redundancy/termination payments made by the charity to two individuals (2020: nil) which amounted to £41k (2020: £nil). No amounts were outstanding at the year-end (2020: £nil).

There were 20 staff (FTE) directly employed by the charity’s subsidiaries in the year (2020: 14).

The number of Group employees whose emoluments, excluding pension contributions but including employer’s national insurance contributions and benefits in kind, were in excess of £60,000 was:

	No.	No.
£60,001 - £70,000	28	14
£70,001 - £80,000	3	4
£80,001 - £90,000	4	3
£110,001 - £120,000	2	2
£140,001 - £150,000	-	1
£150,001 - £160,000	1	-
£220,001 - £230,000	-	1
£230,001 - £240,000	1	-

Of the above staff members, 36 (2020: 21) have benefits accruing under defined benefit pension schemes and 3 (2020: 4) had benefits accruing under the defined contribution scheme. Employer’s contributions for the defined contribution scheme were £25k (2020: £30k).

The key management personnel of the parent charity, The Grammar School at Leeds, are listed on page 2. The total employee benefits, including employer’s national insurance and pension contributions, of the key management personnel of the GSAL were £1,405k (2020: £1,328k).

The key management personnel of the group comprise those of the GSAL and the key management personnel of its wholly owned subsidiaries GSAL Enterprises Ltd and GSAL Transport Ltd. There are not considered to be any key management personnel in either of the subsidiaries. The total employee benefits of key management personnel for the group were therefore £1,405k (2020: £1,328k).

26

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NOTES TO THE FINANCIAL STATEMENTS

7. ANALYSIS OF EDUCATION AND GRANT MAKING EXPENDITURE

Direct costs Teaching costs Welfare costs Premises Non-teaching support costs Bursaries, prizes and specific fund expenditure Support costs Governance costs Finance and other costs Consolidated total 2020 Comparatives	Staff Costs Other Costs Depreciation Total 2021 13,058 888 - 13,946 629 569 - 1,198 766 5,344 406 6,516 1,341 1,582 249 3,172 - 1,648 - 1,648 39 234 - 273 - 46 - 46
	15,833 10,311 655 26,799

Direct costs Teaching costs Welfare costs Premises Non-teaching support costs Bursaries, prizes and specific fund expenditure Support costs Governance costs Finance and other costs Consolidated total	Staff Costs Other Costs Depreciation Total 2020 £'000 £'000 £'000 £'000 13,551 895 - 14,446 658 506 - 1,164 780 5,260 294 6,334 1,329 1,457 233 3,019 - 2,026 - 2,026 46 193 - 239 - 207 - 207 16,364 10,544 527 27,435

With the exception of the bursaries, prizes and specific fund expenditure, all of the above expenditure is taken from unrestricted funds.

27

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

8. FIXED ASSETS

Consolidated & Company Cost At 1 September 2020 Additions Disposals At 31 August 2021 Accumulated depreciation At 1 September 2020 Charge for the year Disposals At 31 August 2021 Net book value At 31 August 2021 At 31 August 2020	Vehicles Plant & Machinery Office & Computer Equipment Land & Buildings Furniture & Fixtures Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £'000 £’000 £’000 £’000 £’000 55 686 2,083 - 2,799 5,623 25 5,648 - 32 282 1,968 183 2,465 18 2,483 (26) (105) (476) - (205) (812) - (812)
	29 613 1,889 1,968 2,777 7,276 43 7,319
	52 497 1,589 - 1,026 3,164 5 3,169 1 38 247 72 297 655 8 663 (26) (100) (476) - (195) (797) - (797)
	27 435 1,360 72 1,128 3,022 13 3,035
	2 178 529 1,896 1,649 4,254 30 4,284
	3 189 494 - 1,773 2,459 20 2,479

All of the above assets were in use at year end and were depreciated accordingly.

9. ASSETS UNDER CONSTRUCTION

Consolidated & Company Cost At 1 September 2020 Additions Transfer to fixed assets At 31 August 2021	Rose Court Relocation Sports Barn Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £’000 £’000 1,961 - 1,961 - 1,961 - 91 91 - 91 (1,961) - (1,961) - (1,961)
	- 91 91 - 91

The above assets relating to the Rose Court relocation were transferred to the fixed asset register upon completion and are now subject to depreciation. The above assets relating to the sports barn were under construction at the year end and as such have not been depreciated.

28

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NOTES TO THE FINANCIAL STATEMENTS

10. INVESTMENTS HELD AS FIXED ASSETS

Market value at 1 September 2020 and 31 August 2021 Investments comprise the following: Investments listed on a UK stock exchange: Charity unit trusts Cash deposits held as fixed asset investments Historical cost at 31 August 2021	Consolidated & Charity 2021 £’000 2020 £’000 25 25
	5 5 20 20
	25 25
	25 25

11. DEBTORS AND PAYMENTS IN ADVANCE

Amounts falling due within one year: Tuition fee debtors Trade debtors Other debtors Amounts due from trading subsidiaries Prepayments and accrued income Rent paid in advance Amounts falling due after more than one year: Amounts due from LGS General Charitable Trust Amounts due from LGS & LGHS Foundation Rent paid in advance	Consolidated Charity 2021 2020 2021 2020 £’000 £’000 £’000 £’000 74 21 74 21 13 4 - - 62 130 29 91 - - 167 274 1,064 1,236 1,055 1,221 - 583 - 583
	1,213 1,974 1,325 2,190
	2,990 2,990 2,990 2,990 2,642 2,642 2,642 2,642 - - - -
	5,632 5,632 5,632 5,632

The loan due from LGS General Charitable carries a fixed rate of interest, is unsecured and is due for repayment no later than 31 December 2033 or by instalments commencing on 31 December 2021.

The loan due from LGS & LGS Foundation is interest free, partly secured on a property owned by the Foundation, and due for repayment on the earlier of 31 December 2067 or by instalments after 31 December 2028.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Tuition fee payments received in advance Trade creditors Amounts owed to LGS General Charitable Trust Other taxes and social security costs Other creditors Acceptance deposits Accruals	Consolidated Charity 2021 2020 2021 2020 £’000 £’000 £’000 £’000 10,755 9,802 10,755 9,802 457 1,318 387 1,229 1,167 - 1,167 - 334 298 320 289 682 717 677 708 34 26 34 26 1,375 1,579 1,351 1,560
	14,804 13,740 14,691 13,614

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THE GRAMMAR SCHOOL AT LEEDS NOTES TO THE FINANCIAL STATEMENTS

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Acceptance deposits	Consolidated & Charity 2021 £’000 2020 £’000 443 461
	443 461

14. RESTRICTED FUNDS

In accordance with Statement of Recommended Practice “Accounting by Charities”, the restricted funds of the charity comprise the following:

Consolidated & Charity Balance at 1 September 2020 Income Expenditure Transfer from unrestricted funds Balance at 31 August 2021	Expendable Bursary & Hardship Fund Lightwing & Headingley Funds Chapel Fund Specific Restricted Donations Total £’000 £’000 £’000 £’000 £’000 - 16 5 47 68 312 - - 12 324 (1,629) - - (19) (1,648) 1,317 - - - 1,317
	- 16 5 40 61

2020 Comparatives

Consolidated & Charity Balance at 1 September 2019 Income Expenditure Transfer to unrestricted funds Transfer from unrestricted funds Balance at 31 August 2020	Expendable Bursary & Hardship Fund Lightwing & Headingley Funds Chapel Fund Rose Court Restricted Donation Specific Restricted Donations Total £’000 £’000 £’000 £’000 £’000 £’000 - 16 5 - 45 66 412 - - 2,240 33 2,685 (1,799) - - (196) (31) (2,026) - - - (2,044) - (2,044) 1,387 - - - - 1,387
	- 16 5 - 47 68

The balances on the funds are included in the balance sheet under fixed asset investments and bank balances, as analysed in note 16.

All bursary transactions are accounted for through the Expendable & Hardship Bursary Funds. Bursaries paid out by the GSAL amounted to £1,629k offset by donations from third parties and the Foundation Award Funds of £312k, with the balance being funded by transfers from the GSAL unrestricted funds amounting to £1,317k

Total specific restricted donations income of £12k includes monies received from the Malawi charity (£1k) and pupils’ weekly charity collection (£11k). Specific restricted donations expenditure of £19k includes the donations to various charities from the pupils’ weekly collections (£12k), to Malawi (£1k), plus other specific expenditure. This has resulted in net expenditure for specific restricted donations of £7k.

In the 2020 comparatives, the Rose Court restricted donation comprises of income of £2,240k received from the LGHS and LGS Foundation. This donation was equivalent to the remaining proceeds received by other parties in relation to the sale of the Rose Court site at Headingley. The use of the donation was restricted to the maintenance and development of the Alwoodley Gates site. Rose Court restricted expenditure of £196k included the costs associated with the relocation of Rose Court. The net proceeds of the sale of Rose Court (£2,044k) were transferred to the GSAL unrestricted funds. These net proceeds were fully utilised in the development of the Alwoodley Gates site during 19/20 in order to facilitate and accommodate the Rose Court pupils into the Primary School.

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

15. UNRESTRICTED FUNDS

Consolidated & Charity Balance at 1 September 2020 Income Expenditure Transfer to restricted funds Transfer from trading companies Balance at 31 August 2021	School Reserve Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £’000 12,610 12,610 - 12,610 27,874 27,874 99 27,973 (26,085) (26,085) (161) (26,246) (1,317) (1,317) - (1,317) 24 24 (24) -
	13,106 13,106 (86) 13,020

Included within unrestricted income is £133k (2020: £925k) received under the Coronavirus Job Retention Scheme, which has been fully expended in the year on the wages and salaries of furloughed staff. The equivalent costs have been included within unrestricted expenditure.

2020 Comparatives Consolidated & Charity Balance at 1 September 2019 Income Expenditure Transfer to restricted funds Transfer to school reserve Transfer from designated fund Transfer from trading companies Balance at 31 August 2020	Building Maintenance (Designated Fund) School Reserve Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £’000 £’000 270 10,137 10,407 - 10,407 - 27,851 27,851 277 28,128 - (26,406) (26,406) (176) (26,582) - 657 657 - 657 (270) - (270) - (270) - 270 270 - 270 - 101 101 (101) -
	- 12,610 12,610 - 12,610

31

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

16. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

	Fixed Assets and investments	Debtors due in more than	Current assets	Current liabilities	Long term liabilities	Total
		one year
	£’000	£’000	£’000	£’000	£’000	£’000
Restricted funds
Expendable Bursary & Hardship Fund	-	-	-	(1)	-	(1)
Lightwing & Headingley Funds	20	-	-	(4)	-	16
Chapel Fund	5	-	-	-	-	5
Specific Restricted Donations	-	-	41	-	-	41
	25	-	41	(5)	-	61
Unrestricted funds
School Reserve	4,375	5,632	18,255	(14,799)	(443)	13,020
	4,375	5,632	18,255	(14,799)	(443)	13,020
Consolidated total
	4,400	5,632	18,296	(14,804)	(443)	13,081
2020 Comparatives	Fixed Assets and investments	Debtors due in more than	Current assets	Current liabilities	Long term liabilities	Total
		one year
	£’000	£’000	£’000	£’000	£’000	£’000
Restricted funds
Expendable Bursary
& Hardship Fund	-	-	-	-	-	-
Lightwing & Headingley Funds	20	-	-	(4)	-	16
Chapel Fund	5	-	-	-	-	5
Specific Restricted Donations	-	-	47	-	-	47
	25	-	47	(4)	-	68
Unrestricted funds
School Reserve	4,440	5,632	16,735	(13,736)	(461)	12,610
Building Maintenance
Fund	-	-	-	-	-	-
	4,465	5,632	16,782	(13,740)	(461)	12,610
Consolidated total
	4,465	5,632	16,782	(13,740)	(461)	12,678

17. TAXATION

The charity’s activities are exempt from taxation under chapter 3 of part II to the Corporation Tax Act 2010.

32

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NOTES TO THE FINANCIAL STATEMENTS

18. EMPLOYEE RETIREMENT BENEFITS

The charity participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,977k (2020: £2,013k) and at the year-end £204k (2020 - £212k) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The charity also contributes to two group personal pension plans for support staff, the costs of which are also charged directly to the statement of financial activities.

The total pension costs are broken down as follows:

al pension costs are broken down as follows:
Teachers Support staff	2021 £’000 2020 £’000 2,079 2,129 192 188
	2,271 2,317

33

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NOTES TO THE FINANCIAL STATEMENTS

19. CONTINGENT LIABILITIES

Under a loan agreement entered into in July 2016 between the Royal Bank of Scotland plc (the Bank) and the LGS General Charitable Trust (the Trust) the charity has provided the following securities: -

• a guarantee in respect of all liabilities without limit from time to time due and owing to the Bank by the Trust

• a debenture containing fixed and floating charges over all of its assets as security for all liabilities without limit from time to time due and owing to the Bank

• a first-party first legal charge in respect of the Alwoodley sublease

• a deed of sub-ordination subordinating the loan to the Trust to the indebtedness of the Bank.

At 31 August 2021, the liabilities of the Trust to the bank amounted to £32,174,602 (2020: £33,380,464).

20. INVESTMENT IN SUBSIDIARIES

INVESTMENT IN SUBSIDIARIES
	2021	2020
	£	£
Investment in subsidiaries at cost	3	3

In addition to the investments shown in note 10, the charity owns the following; 100% of the ordinary share capital of GSAL Enterprises Limited (registration no. 02314911), incorporated in England and Wales. The principal activity of GSAL Enterprises Limited is letting and associated activities at the Alwoodley site.

The charity owns 100% of the ordinary share capital of GSAL Transport Limited (registration no. 09393247), incorporated in England and Wales. The principal activity of GSAL Transport Limited is the operation of passenger transport services.

ransport services.
	2021 2020
GSAL Enterprises Ltd - financial summary	£'000 £'000
Turnover	46 138
Cost of sales	(2) (18)
Gross profit	44 120
Admin expenses	(20) (19)
Operating profit	24 101
Donation to GSAL	(24) (101)
Result for the financialyear	- -
Assets	38 111
Liabilities	(38) (111)
Funds	- -
GSAL Transport Ltd - financial summary Turnover Cost of sales Gross profit Admin expenses Operating (loss)/profit Donation to GSAL Result for the financial year Assets Liabilities Funds	2021 2020 £’000 £'000 987 1,189 (1,031) (1,100)
	(44) 89 (42) (38)
	(86) 51 - (51)
	(86) -
	157 289 (243) (289)
	(86) -

34

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

21. OPERATING LEASES COMMITMENTS

The total future minimum lease payments under non-cancellable operating leases:

Group - within one year - between one and five years - after five years Charity - within one year - between one and five years - after five years	2021 Land and buildings £000 3,500 14,000 155,167 172,667 3,500 14,000 155,167 172,667	Other £000 112 76 - 188 112 76 - 188	2020 Land and buildings £000 3,500 14,000 158,667 176,167 3,500 14,000 158,667 176,167	Other £000 267 152 -
				419
				267 152 -
				419

The lease of land and buildings relate to a long term rental commitment that expires in 2070.

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THE GRAMMAR SCHOOL AT LEEDS NOTES TO THE FINANCIAL STATEMENTS

22. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVIES – COMPARATIVE FIGURES BY FUND-TYPE

Year ended 31 August 2020

INCOME FROM: Charitable activities– education; Tuition fees Other income Other trading activities - trading income Donations - general Donations – Rose Court sale proceeds Investments Other income – surplus on sale of Rose Court TOTAL INCOME EXPENDITURE ON: Raising funds: Trading expenditure Charitable activities - education: Education and grant making TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) Transfers between funds: Transfer to Expendable Bursary & Hardship Fund Additional Transfer to Expendable Bursary & Hardship Fund Transfer to unrestricted – Rose Court NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward Net movement in funds for the year TOTAL FUNDS CARRIED FORWARD	Unrestricted funds Restricted funds Total 2020 £’000 £’000 £’000 24,276 - 24,726 2,219 - 2,219
	26,945 - 26,945 228 - 228 - 445 445 - 2,240 2,240 195 - 195 760 - 760
	28,128 2,685 30,813
	(1,173) - (1,173) (25,409) (2,026) (27,435)
	(26,582) (2,026) (28,608)
	1,546 659 2,205 (402) 402 - (985) 985 - 2,044 (2,044) -
	2,203 2 2.205
	10,407 66 10,473 2,203 2 2,205
	12,610 68 12,678

36

THE GRAMMAR SCHOOL AT LEEDS

ADDITIONAL INFORMATION NOT FORMING PART OF THE FINANCIAL STATEMENTS

The additional information, which comprises charitable donations paid by The Grammar School at Leeds for 2019/20 and 20/21 has been prepared from the accounting records of the charity. While it is unaudited and does not form part of the statutory financial statements, it should be read in conjunction with them and the independent auditor’s report thereon.

This schedule shows donations paid during the year and so includes funds raised in 2019/20 but not paid until 2020/21 and excludes funds raised in 2020/21 not paid by the year end, which are held within restricted funds pending payment in 2021/22.

37

THE GRAMMAR SCHOOL AT LEEDS

ADDITIONAL INFORMATION NOT FORMING PART OF THE FINANCIAL STATEMENTS

SCHEDULE OF CHARITABLE DONATIONS PAID DURING THE YEAR

SENIOR SCHOOL Bone Cancer Trust C-R-Y Cancer Research Leeds Carlton Lodge Children in Need Comic Relief Danby Rovers Duke of Edinburgh Forever Angels Ghurkha Welfare Trust Guide Dogs For The Blind Homeless Street Angels Macmillan Cancer Care Malawi Martin House Mary’s Meals Mercury Phoenix Moor Allerton Elderly Care Mummys Star Oxfam Parkinsons UK Place2Be Prostate Cancer Read For Good Royal British Legion Simon On The Streets Spinal Injuries St Gemma’s Hospice St George’s Crypt Team Rubicon UK Teenage Cancer Trust WWF Zarach JUNIOR SCHOOL Children in Need Bone Cancer Research Trust Royal British Legion Zarach ROSE COURT Candlelighters Children in Need Comic Relief Hope Pastures Macmillan Cancer Support NSPCC Yorkshire Air Ambulance Yorkshire Wildlife Trust TOTAL	2021 2020 £ 479 421 1,106 233 560 330 310 105 325 221 355 340 1,843 1,137 6,590 200 814 132 250 314 365 125 828 220 468 476 454 368 300 335 1,500 410 345 2,378 1,542
	6,232 19,947
	1,928 5,913 1,570 176 511
	4,185 5,913
	376 536 367 408 377 245 97 376 377
	2,450 709
	12,867 26,569

38