2022-08-31-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 2022

THE GRAMMAR SCHOOL AT LEEDS REPORT AND FINANCIAL STATEMENTS 2022

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
Financial review and results for the year	13
Governors’ responsibilities statement	14
Independent Auditor’s report	15
Consolidated statement of financial activities	18
Consolidated and charity balance sheet	19
Consolidated cash flow statement	20
Notes to the financial statements	21
Consolidated statement of financial activities for the prior year	35
Schedule of charitable donations paid	37

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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 31/08/22	Committees served as at 31/08/22	Committees served as at 31/08/22	Committees served as at 31/08/22	Expiry of Term
		Corporate Governance	Education	External Relations	Audit & Risk	Business & Management
Mrs E E Bailey	10 November 1995	X					January 2023
Mr P J Britton	1 September 2021		X				September 2027
Sir Stephen Brown	23 September 2013	X		X			January 2023
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 2027
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 ViceChair)	01 September 2016			X		X	November 2026
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				Resigned August 2022
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 2022

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

GSAL Leadership Team as at 31 August 2022

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 2022

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

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

CMS Cameron McKenna LLP Cannon Place 28 Cannon Street London EC4N 6AF Walker Morris LLP 33 Wellington Street Leeds LS1 4DL

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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 2022 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 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 GSAL’s employees, suppliers, parents and the wider community are considered as part of the decision-making process. GSAL actively engages with key stakeholders through employee, parent and supplier feedback.

Organisational management

The Governors, as the charity’s trustees and company directors, are legally responsible for the overall management and control of the school and met 7 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.

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	3	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	8	Principal
			Vice Principal & Head of Senior School Vice Principal & Head of Primary School
			Director of Finance & Operations
			Clerk to the Governors
Corporate Governance	Mr M R Curle	3	Principal
			Clerk to the Governors

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

The day-to-day running of the school is delegated to the Principal supported by 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 presented a further risk during the reporting period.

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 continued to provide operational challenges in 2021-22. Risks relating to Covid-19 persist either directly, through further potential partial or full closures of the school, or indirectly, through the future impact on the wider economy, and could impact fee income, pupil numbers and costs.

Going Concern

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 2022

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 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:

• Adherence to 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

GSAL actively invites opinion, and endeavours to understand the issues important to employees to ensure they have a voice which is heard and respected. 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 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, 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

GSAL’s commitment to promoting equity and valuing diversity continues to develop and grow. In addition to the statutory commitments within the Staff Employment Manual complying with the Sex Discrimination Act 1975, the Equality Act 2010 and the Disability Discrimination Act 1995, we have also developed vibrant Equity, Diversity and Inclusion (EDI) activities and documents. The school is working towards accreditation by the National Centre for Diversity (NCD), which includes a development plan looking at and embedding best EDI practice in every part of school life, as a business and as a place of education. We have invested in staff training and key appointments to improve our knowledge and understanding and to ensure that we are delivering an inclusive and inspiring curriculum, and that all minority groups feel that they are represented in school life. We are active members of a number of local, regional and national initiatives which aim to effectively embed EDI in schools, and we are increasingly being seen as an example of best practice. We have established a number of EDI groups to lead our work and to support our

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

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. The school communicates and demonstrates its commitment to EDI in numerous ways using the NCD’s FREDIE principles; Fairness, Respect, Equality, Diversity, Inclusion and Engagement.

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 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 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 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.

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.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

Our partners include:

• Leeds Beckett University with whom we are joint funding a PhD to improve young people’s participation in sport.

• Leeds Rhinos to improve netball pathways.

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

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

• MathsCity which aims to improve the public’s understanding of maths.

• Zero Waste Leeds by providing preloved items of uniform which are distributed to families in need.

• 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, where we collaborate on a range of projects.

These partnerships and our outreach programme enables the school to deliver activities which benefit over 1,500 children and young people a year from across the city region. The programme includes projects which improve access to higher education, enhanced understanding of careers and the world of work, provide support for GCSE preparation, subject workshops and visiting speakers. We also have an extensive student volunteering programme.

Our facilities are available for use by community groups, charities, educational organisations and businesses.

We are also active supporters of Leeds Community Foundation, Child Friendly Leeds, West and North Yorkshire Chamber of Commerce and LEEDS2023, who like the school are committed to ensuring that Leeds is 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).

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. 2021-22 saw the adoption of our revised three-year whole school development plan covering 2021-24. The forthcoming academic year aims to build on the results achieved this year.

Key achievements from the 2021-2024 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, with a particular focus on individual respect and embedding a new and improved support for EDI. Highlights from the year have included the hosting of talks from Jeffrey Boakye and David Olusoga to senior school pupils on black history in the UK, the unveiling of EDI inspired murals in the tunnels leading into the school and the holding of diversity week in the spring term, which celebrated all aspects of EDI. Meanwhile, in primary school the curriculum has been revised to ensure there is greater diversity in topics and texts whilst PSHE now specifically incorporates EDI related issues.

• Teaching and learning; focus has been given to ensuring a stimulating academic experience for all students within and beyond the classroom. A combination of public examination results, external value added measures and university application success, continue to show that GSAL students are meeting with significant success in their academic work. The re-introduction of trips and visits post Covid across the whole school, alongside innovative initiatives such as the development of the outside “forest classroom” in primary, has helped to supplement “in classroom” learning. Work continues on the development of a consistent whole school approach to assessment and monitoring.

• Pastoral and co-curricular ; following the pandemic, the school undertook a review of the pastoral and wellbeing support available for pupils. This has resulted in the creation of a new role of Head of Student

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

Health and Wellbeing and an increase in the capacity of the nursing team whilst the role of Deputy Head - Pastoral and Co-curricular will be split into two roles from September 2022 to allow a greater focus on pastoral and wellbeing issues. Regular pupil voice meetings are held in both senior and primary school to ensure effective, on-going dialogue and feedback to make a positive change for students. From a cocurricular perspective, work has continued on developing the range and breadth of activities and opportunities available to all pupils, helped by the appointment of a new Whole School Director of Sport from September 2021, whilst additional focus has been given to increasing participation in sixth form games.

• Staff; staff wellbeing has been prioritised during the year, especially following the pandemic. The Employee Assistance Programme (EAP) has been embedded, which provides 24/7 confidential advice to employees on a range of issues, a staff exercise programme has been introduced alongside mental health first aiders and new sabbatical and menopause policies. A further area of focus has been on personal development with the launch of a new performance & development process to support meaningful development orientated discussions and the introduction of a revised pay progression process specifically for support staff.

• School culture and external relations; a new system has been implemented for communicating to parents so they are better informed and more engaged with the school, whilst improving the school’s efficiency and effectiveness. The PFA has been successfully relaunched, which is helping to increase parents’ affinity with the school. A record level of pupil retention was achieved which contributed to the school being full for much of the academic year. Capacity has been increased in alumni relations and fundraising to support the school’s strategic objectives.

• Capital investments, operational resources and investments; the sports dome, which greatly increases the covered sports area available, was completed in time for the start of the 2022/23 academic year and it was officially opened on 28[th] September 2022 by Tracey Neville MBE. Further investments have also been made during the year in both the physical estate, including the refurbishment of classrooms and pupil common rooms, and IT infrastructure, with the wifi and servers being upgraded and devices being replaced on a rolling basis, whilst work has continued on improving cyber security. Menus have been revised during the course of the year, taking into account pupil feedback and with a focus on promoting healthier eating options and the environment, resulting in an increased proportion of fresh, homemade food and the removal of aluminium cans. The school was delighted to be awarded the Eco-Schools Green Flag, with reduced waste, enhanced biodiversity onsite and the excellent commitment of pupils and staff being particularly highlighted.

Objectives for the coming year

The key objectives from the 2021-24 development plan for 2022-23 are summarised below:

Mission & Vision

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

• To review the operating model at GSAL to understand its purpose and value 15 years on from merger.

Teaching & Learning

• To ensure the coherence and consistency of the vertical curriculum to support the progression of student learning & experience from 3-18.

• To review 6[th] form structure and provision to maximise quality and appeal of GSAL offer and impact of sixth formers as role models, with impact across the whole school and wider community.

Pastoral & Co-Curricular

• 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 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.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

Staff

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

• To ensure that GSAL has a clear outreach plan to build and protect its reputation and brand among key stakeholders in the region and beyond to respect the importance of its charitable status.

Capital Investments, Operational Systems and Resources

• To continue to improve e-processes and systems across the school.

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

• To ensure that security, health, safety, data protection and risk management issues and statutory guidelines are clearly prioritised and followed.

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 3, 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 2021-22 saw some normality resume following the prior two years COVID-19 related lockdowns and included many successes.

Inspection and awards

• In July, GSAL was accredited with a coveted international environmental award. The Eco-Schools Green Flag recognises a school’s outstanding efforts to reduce its impact on the planet. The students on GSAL’s Eco-Committee used their free time to tackle some of the most pressing environmental issues at the school including; stopping the sale of plastic bottles, plastic cups and single use drinks cans at the school and planting 250 trees in the school grounds and securing funding to plant 14 hectares of native woodland on grazed land.

Exam performance

Exam results in the year reflect the efforts of our hardworking pupils and dedicated staff. Out of an A-Level student cohort of 200, 83% of grades achieved were A* to B. 92% of students progressed to higher education and 55% of students achieved places at Russell Group universities with ten students obtaining Oxbridge places. 16 students secured places on highly selective courses for medicine, dentistry or veterinary sciences.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

From a cohort of 215 GCSE students, thirty seven students achieved grade 8 (formerly grade A*) or above in every subject, including eleven who secured the highest possible grade in every subject. Individually, in 2022, 52% of the GCSE grades were at an 8 or above, significantly higher than the national average.

Co-curricular, sporting and academic achievements

2021-22 saw another year of individual and team successes across many areas, both within and outside GSAL. Highlights included:

• GSAL marked the centenary of scouting at the school and its predecessor, Leeds Grammar School.

• A Year 13 pupil won the first Association for Heritage Interpretation Young Interpreter Award as part of the bi-annual Engaging People Awards.

• Four students scooped silver at the English Schools Swimming Association (ESSA) secondary schools’ team relay championships in London.

• A year 8 pupil broke the English Schools record for 200 metre freestyle at the Inter Divisional English Schools Swimming Championships.

• 44 Year 13 students were awarded full colours; the highest accolade for achievement and service.

• A Year 12 student read his poem at the unveiling of a blue plaque next to the River Aire for David Oluwale.

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 GSAL Life and Memento publications.

Bursary support

During the year, we provided some form of financial assistance to 139 pupils amounting to £1,276k, equivalent to 4.5% of fees receivable (see note 14). Of this, 95 means-tested fee bursaries, at an average value of 82% of the senior school fee, were awarded totalling £1,151k, analysed as follows:

• 37 at 100% of the fee

• 33 between 75% and 99% of the fee

• 15 between 50% and 74% of the fee

• 8 between 25% and 49% of the fee

• 2 between 15% and 24% of the fee

Of the total £1,276k of assistance, £14k of temporary financial support grants were awarded to 3 pupils and scholarships and music awards totalling £111k were awarded to 41 pupils.

Fundraising Performance

Members of 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. 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 (£53k in total) and an individual family donation (£25k).

Other restricted funds include weekly donations and collections from pupils (Seniors £13k; Primary £3k), for local and national charities, and £3k was raised through sales and fundraising events in the year for Malawi. Over £19k 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.

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THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

UK Greenhouse gas emissions and energy use data for the period 1 September 2021 to 31	2021/22
August 2022
Energyconsumption used to calculate emissions(kWh)	6,362,298
Energyconsumption break down(kWh):
•gas
• electricity
• transport fuel
Scope 1emissions in metric tonnes CO2e
Gas consumption	830
Owned transport – mini-buses	5
Total Scope 1	835
Scope 2emissions in metric tonnes CO2e
Purchased electricity	346
Scope 3emissions in metric tonnes CO2e
Business travel in employee owned vehicles	1.29
Totalgross emissions in metric tonnes CO2e	1,182
Intensityratio Tonnes CO2eperpupil	0.56
2021 Comparatives
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

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.

12

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

GOVERNORS’ REPORT (INCLUDING THE STRATEGIC REPORT)

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 this year, we have continued with the programme to remove internal fluorescent lights and replaced them with LED fittings which consume approximately 1/3rd of the amount of power required to support the old fittings. Approximately 90% of external building lights have been replaced with LED fittings as well as individual occupancy time programmes for the external lighting which is programmed through the building management system (BMS).

Various heating and vent pumps have been required throughout the year and have been replaced with energy efficient equivalents that comply with modern standards.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Consolidated net income before transfers for the year was £828k (2021: £403k). The increase in net income for 202122 is largely attributable to an increase in activity and a decrease in the need for financial support for parents.

In 2020-21, COVID-19 restrictions were prevalent and some parents needed additional financial support, but this was not the case in 2021-22. As a result of this, the school did not have to operate any closures thus no COVID-related fee remissions were granted, and transport and catering income was generated through the whole year.

In 2021-22, the school provided additional support to parents of £14k through temporary financial support.

In line with our charitable objectives, GSAL provided £1,276k (2021: £1,629k) of bursary, scholarship and temporary financial hardship support to parents in 2021-22, the equivalent of 4.5% of gross fee income. This included an additional contribution from the school of £764k (2021: £902k) to support restricted funds over and above the £434k (2021: £415k) transfer required by the Memorandum and Articles, representing 2% of Senior School fees.

After these transfers total funds carried forward were £13,909k (2021: £13,081k), split between unrestricted funds £13,855k and restricted funds £54k.

Reserves policy

Notes 14 and 15 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 £13,855k of which £6,508k is invested in fixed assets.

£7,347k 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 £5.9m. Total free reserves currently exceed this level, at £7.3m (2021: £8.6m) and thus have met the requirement, though only £2m represent liquid funds that are readily available to spend.

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.

13

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2022

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

16 December 2022

14

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 2022 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 2022 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

15

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

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

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 14, 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

16

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

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.

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.

\afe Choroneet CLP

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: 13 February 2023

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

17

THE GRAMMAR SCHOOL AT LEEDS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account) Year ended 31 August 2022

Note INCOME FROM: Charitable activities– education; Tuition fees Other income 2 Other trading activities - trading income Donations - general Investments 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 2022 Total funds 2021 £’000 £’000 £’000 £’000 28,115 - 28,115 26,291 1,772 - 1,772 1,425
	29,887 - 29,887 27,716 412 - 412 68 - 102 102 324 205 - 205 189
	30,504 102 30,606 28,297
	(1,408) - (1,408) (1,095) (27,063) (1,307) (28,370) (26,799)
	(28,471) (1,307) (29,778) (27,894)
	2,033 (1,205) 828 403 (434) 434 - - (764) 764 - -
	835 (7) 828 403
	13,020 61 13,081 12,678 835 (7) 828 403
	13,855 54 13,909 13,081

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.

18

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED AND CHARITY BALANCE SHEET Year ended 31 August 2022

			Group		Charity
		2022	2021	2022	2021
	Note		£’000		£’000
FIXED ASSETS
Tangible assets	8	5,002	4,284	4,974	4,254
Assets under construction	9	1,506	91	1,506	91
Investments	10	25	25	25	25
		6,533	4,400	6,505	4,370
CURRENT ASSETS
Stocks		19	17	18	16
Debtors due within one year	11	550	1,213	791	1,325
Debtors due after one year	11	5,632	5,632	5,632	5,632
Bank balances and cash		16,960	17,066	16,641	16,958
		23,161	23,928	23,082	23,931
CREDITORS: amounts falling due within one year	12	(15,290)	(14,804)	(15,123)	(14,691)
NET CURRENT ASSETS		7,871	9,124	7,959	9,240
TOTAL ASSETS LESS CURRENT LIABILITIES		14,404	13,524	14,464	13,610
CREDITORS: amounts due after more than one year	13	(495)	(443)	(495)	(443)
NET ASSETS		13,909	13,081	13,969	13,167
FUNDS
Restricted funds	14	54	61	54	61
Unrestricted funds	15	13,855	13,020	13,915	13,106
TOTAL FUNDS	16	13,909	13,081	13,969	13,167

These financial statements of The Grammar School at Leeds, Company Registration Number 03075826 were approved by the Governing Body and authorised for issue on 16 December 2022 and signed on their behalf by:

A M Martin

Chairma

19

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2022

Net cash flows from operating activities Cash flows from investing activities: Interest Received Purchase of tangible fixed assets Sale of tangible fixed assets (Decrease)/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	2022 £'000 2021 £'000 2,521 2,688 205 (2,870) 189 (613) 38 12
		(106) 2,276 17,066 14,790
		16,960 17,066

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 (Profit)/Loss on disposal of fixed asset Depreciation (Increase)/Decrease in stocks Increase in creditors <1yr Increase/(Decrease) in creditors >1yr Decrease in debtors Net cash inflow from operating activities	2022 663 52 486 (2) 737 (38) (205) 828 £’000 2021 761 (18) 1,064 1 663 3 (189) 403 £'000
	2,521 2,688

20

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 continued 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.

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

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).

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 £802k (2021: £489k).

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

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

The school buildings at Alwoodley were the property of the LGS General Charitable Trust in the year. 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.

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	2022 £’000 2021 £’000 1,139 835 169 118 - 133 464 308 - 31
	1,772 1,425

Included within unrestricted income is £nil (2021: £133k) 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 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 GSAL unrestricted funds	2022 £’000 2021 £’000 434 415 764 902 1,198 1,317

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	2022 2021 £'000 £'000 (38) 3 737 663 22 17 6 15 3,431 3,361 420 436

The charity’s net income for the year in accordance with the Companies Act 2006 was £828k (2021: £489k).

5. GOVERNING BODY REMUNERATION AND RELATED PARTY TRANSACTIONS

During the year, no travel expenses were paid to Governors for attending meetings (2021:£nil).

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 GSAL (2021: £nil). Income to GSAL from GSAL Transport £10k in respect of support services provided (2021: £10k). Expenditure paid by GSAL to GSAL Transport £1,177k in respect of transport services and advertising (2021: £932k).

A balance of £191k was owed to GSAL from GSAL Transport limited at 31 August 2022 (2021: £143k).

GSAL Enterprises Limited

Income to GSAL from GSAL Enterprises £156k donation under gift aid (2021: £24k) Income to GSAL from GSAL Enterprises £nil in respect of the provision of consumables (food) for events (2021: £nil).

Expenditure paid by GSAL to GSAL Enterprises £1k in respect of the provision of consumables (drinks) for events (2021: £2k).

A balance of £156k was owed to GSAL from GSAL Enterprises limited at 31 August 2022 (2021: £24k).

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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 2022 2021 No. No. 202 222 258 249 460 471 No. No. 179 186 174 167 353 353 2022 £’000 13,876 1,380 2,467 17,723	Charity 2022 2021 No. No. 202 222 239 229
		441 451
		No. No. 179 186 155 151
		334 337
		2021 £’000 12,721 1,227 2,291
		16,239

During the year there were redundancy/termination payments made by the charity to one individual (2021: two) which amounted to £50k (2021: £41k). As at year end, £50k remained outstanding (2021: £nil). The balance has not yet been paid to the recipient.

There were 19 staff (FTE) directly employed by the charity’s subsidiaries in the year (2021: 20).

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:

	2022	2021
	No.	No.
£60,001 - £70,000	30	28
£70,001 - £80,000	6	3
£80,001 - £90,000	3	4
£90,001 - £100,000	1	-
£100,001 - £110,001	2	-
£110,001 - £120,000	-	2
£140,001 - £150,000	1	-
£150,001 - £160,000	-	1
£210,001 - £220,000	1	-
£230,001 - £240,000	-	1

Of the above staff members, 39 (2021: 36) have benefits accruing under defined benefit pension schemes and 5 (2021: 3) had benefits accruing under the defined contribution scheme. Employer’s contributions for the defined contribution scheme were £38k (2021: £25k).

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 GSAL were £1,407k (2021: £1,405k).

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

The key management personnel of the group comprise those of 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 £1,407k (2021: £1,405k).

7. ANALYSIS OF EDUCATION AND GRANT MAKING EXPENDITURE

Direct costs Support costs Bursaries, prizes and specific fund expenditure Non-teaching support costs Premises Welfare costs Teaching costs Finance and other costs Governance costs Consolidated total 2021 Comparatives Direct costs Support costs Bursaries, prizes and specific fund expenditure Non-teaching support costs Premises Welfare costs Teaching costs Finance and other costs Governance costs Consolidated total

Staff Costs Other Costs Depreciation Total 2022 - 1,764 850 698 13,872 1,138 707 5,500 1,485 1,307 - 367 370 - - 15,010 1,405 6,720 3,616 1,307 - 40 61 211 - - 251 61 17,224 10,409 737 28,370 Staff Costs Other Costs Depreciation Total 2021 - 1,341 766 629 13,058 1,648 1,582 5,344 569 888 - 249 406 - - 13,946 1,198 6,516 3,172 1,648 - 39 46 234 - - 273 46 15,833 10,311 655 26,799

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

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

8. FIXED ASSETS

Consolidated & Company Cost At 1 September 2021 Additions Disposals At 31 August 2022 Accumulated depreciation At 1 September 2021 Charge for the year Disposals At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Vehicles Plant & Machinery Office & Computer Equipment Land & Buildings Furniture & Fixtures Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £'000 £’000 £’000 £’000 £’000 29 613 1,889 1,968 2,777 7,276 43 7,319 - 102 988 - 355 1,445 10 1,455 - - (474) - - (474) - (474)
	29 715 2,403 1,968 3,132 8,247 53 8,300
	27 435 1,360 72 1,128 3,022 13 3,035 1 43 354 79 248 725 12 737 - - (474) - - (474) - (474)
	28 478 1,240 151 1,376 3,273 25 3,298
	1 237 1,163 1,817 1,756 4,974 28 5,002
	2 178 529 1,896 1,649 4,254 30 4,284

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 2021 Additions Transfer to fixed assets At 31 August 2022	Sports Dome Performing Arts Centre Server Upgrade Charity Total Trading Companies Consolidated Total £’000 £’000 £'000 £’000 £’000 £’000 91 - - 91 - 91 1,292 93 30 1,415 - 1,415 - - - - - -
	1,383 93 30 1,506 - 1,506

The above assets relating to the sports dome, performing arts centre and server upgrade were under construction at the year end and as such have not been depreciated.

27

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

10. INVESTMENTS HELD AS FIXED ASSETS

Market value at 1 September 2021 and 31 August 2022 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 2022	Consolidated & Charity 2022 £’000 2021 £’000 25 25 5 5 20 20 25 25 25 25

11. DEBTORS AND PAYMENTS IN ADVANCE

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 Amounts falling due after more than one year: Amounts due from LGS General Charitable Trust Amounts due from LGS & LGHS Foundation	Consolidated Charity 2022 2021 2022 2021 £’000 £’000 £’000 £’000 44 74 44 74 47 13 - - 41 62 - 29 - - 347 167 418 1,064 400 1,055
	550 1,213 791 1,325
	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 2022 2021 2022 2021 £’000 £’000 £’000 £’000 11,386 10,755 11,386 10,755 774 457 670 387 292 1,167 292 1,167 375 334 354 320 857 682 854 677 41 34 41 34 1,565 1,375 1,526 1,351
	15,290 14,804 15,123 14,691

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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 2022 £’000 2021 £’000 495 443
	495 443

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 2021 Income Expenditure Transfer from unrestricted funds Balance at 31 August 2022	Expendable Bursary & Hardship Fund Lightwing & Headingley Funds Chapel Fund Specific Restricted Donations Total £’000 £’000 £’000 £’000 £’000 - 16 5 40 61 78 - - 24 102 (1,276) - - (31) (1,307) 1,198 - - - 1,198
	- 16 5 33 54

2021 Comparatives

2021 Comparatives
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

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 GSAL amounted to £1,276k offset by donations from third parties and the Foundation Award Funds of £78k, with the balance being funded by transfers from GSAL unrestricted funds amounting to £1,198k

Total specific restricted donations income of £24k includes monies received from the Malawi charity (£3k), donations for prizes (£5k) and pupils’ weekly charity collection (£16k). Specific restricted donations expenditure of £31k includes the donations to various charities from the pupils’ weekly collections (£23k), prizes (£5k), plus other specific expenditure. This has resulted in net expenditure for specific restricted donations of £7k.

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

15. UNRESTRICTED FUNDS

Consolidated & Charity Balance at 1 September 2021 Income Expenditure Transfer to restricted funds Transfer from trading companies Balance at 31 August 2022	School Reserve Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £’000 13,106 13,106 (86) 13,020 30,092 30,092 412 30,504 (28,241) (28,241) (230) (28,471) (1,198) (1,198) - (1,198) 156 156 (156) -
	13,915 13,915 (60) 13,855

Included within unrestricted income is £nil (2021: £133k) 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.

2021 Comparatives

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

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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
Lightwing & Headingley Funds	20	-	-	(4)	-	16
Chapel Fund	5	-	-	-	-	5
Specific Restricted Donations	-	-	33	-	-	33
	25	-	33	(4)	-	54
Unrestricted funds
School Reserve	6,508	5,632	17,496	(15,286)	(495)	13,855
	6,508	5,632	17,496	(15,286)	(495)	13,855
Consolidated total
	6,533	5,632	17,529	(15,290)	(495)	13,909
2021 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	-	-	-	(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

17. TAXATION

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

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 £2,117k (2021: £1,977k) and at the year-end £176k (2021 - £204k) was accrued in respect of contributions to this scheme.

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NOTES TO THE FINANCIAL STATEMENTS

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 2021 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	2022 £’000 2021 £’000 2,227 2,079 217 192
	2,444 2,271

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

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NOTES TO THE FINANCIAL STATEMENTS

• 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 2022, the liabilities of the Trust to the bank amounted to £26,259,160 (2021: £32,174,602).

20. INVESTMENT IN SUBSIDIARIES

INVESTMENT IN SUBSIDIARIES
	2022	2021
	£	£
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.

	2022 2021
GSAL Enterprises Ltd - financial summary	£'000 £'000
Turnover	186 46
Cost of sales	(11) (2)
Gross profit	175 44
Admin expenses	(19) (20)
Operating profit	156 24
Donation to GSAL	(156) (24)
Result for the financialyear	- -
Assets	186 38
Liabilities	(186) (38)
Funds	- -
GSAL Transport Ltd - financial summary Turnover Cost of sales Gross profit Admin expenses Operating (loss)/profit Reserves brought forward Donation to GSAL Cumulative losses carried forward Assets Liabilities Funds	2022 2021 £’000 £'000 1,405 987 (1,335) (1,031)
	70 (44) (44) (42)
	26 (86) (86) - -
	(60) (86)
	269 157 (329) (243)
	(60) (86)

21. OPERATING LEASES COMMITMENTS

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

2022

2021

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THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

Group - within one year - between one and five years - after five years Charity - within one year - between one and five years - after five years	Land and buildings £000 3,500 14,000 151,667 169,167 3,500 14,000 151,667 169,167	Other £000 74 - - 74 74 - - 74	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

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 2021

INCOME FROM: Charitable activities– education; Tuition fees Other income Other trading activities - trading income Donations - general Investments 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 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 2021 £’000 £’000 £’000 26,291 - 26,291 1,425 - 1,425
	27,716 - 27,716 68 - 68 - 324 324 189 - 189
	27,973 324 28,297
	(1,095) - (1,095) (25,151) (1,648) (26,799)
	(26,246) (1,648) (27,894)
	1,727 (1,324) 403 (415) 415 - (902) 902 -
	410 (7) 403
	12,610 68 12,678 410 (7) 403
	13,020 61 13,081

23. POST BALANCE SHEET EVENTS

In November 2022, as part of a restructuring and refinancing exercise, the total assets and liabilities of the LGS General Charitable Trust were transferred to GSAL.

The transfer included the underlease relating to the land and buildings at Alwoodley Gates currently occupied by GSAL, as well as the bank loans referred to in note 19. The banking facilities with Royal Bank of Scotland were renewed at the point of restructure.

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ADDITIONAL INFORMATION NOT FORMING PART OF THE FINANCIAL STATEMENTS

The additional information, which comprises charitable donations paid by The Grammar School at Leeds for 2020/21 and 21/22 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 2020/21 but not paid until 2021/22 and excludes funds raised in 2021/22 not paid by the year end, which are held within restricted funds pending payment in 2022/23.

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ADDITIONAL INFORMATION NOT FORMING PART OF THE FINANCIAL STATEMENTS

SCHEDULE OF CHARITABLE DONATIONS PAID DURING THE YEAR

SENIOR SCHOOL Anti-bullying Alliance Centrepoint Comic Relief Duke of Edinburgh Educate the Kids Kidz in Kampz Leeds Cares Malala Fund Malawi Mummys Star PAFRAS Place2Be Rain Reforest RETAS Royal British Legion St George’s Crypt Unicef Zarach JUNIOR SCHOOL Bone Cancer Research Trust Candlelighters Children in Need Comic Relief Dogs for Good Hope Pastures Jeans for Genes Lord Mayor’s Charity Appeal Macmillan Cancer Care Malawi Marie Curie Royal British Legion Save the Children St George’s Crypt WWF Yorkshire Air Ambulance Yorkshire Wildlife Trust Zarach ROSE COURT Candlelighters Children in Need Comic Relief Hope Pastures Macmillan Cancer Support Malawi Sport Relief Yorkshire Air Ambulance Yorkshire Wildlife Trust TOTAL	2022 2021 £ £ 338 - 419 - - 330 - 105 2,559 - 1,597 - 132 - 134 - - 1,137 - 314 4,306 - - 828 453 - 975 - 139 476 - 1,500 230 - 1,717 1,542
	12,999 6,232
	- 1,570 47 - 1,737 1,928 1.566 - 363 - 47 - 289 - 131 - 549 - 2,420 - 185 - 99 176 536 - 129 - 712 - 243 - 47 - - 511
	9,100 4,185
	140 376 994 536 - 408 - 377 309 - 121 - 1,196 - - 376 - 377
	2,760 2,450
	24,859 12,867

37