2023-08-31-accounts - The Grammar School At Leeds

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

THE GRAMMAR SCHOOL AT LEEDS

A Company Limited by Guarantee

Report and Financial Statements

31 August 2023

THE GRAMMAR SCHOOL AT LEEDS REPORT AND FINANCIAL STATEMENTS 2023

CONTENTS	Page
Governors and charity trustees, officers and advisers	2
Governors’ report	5
Reference and administrative information	5
Structure, governance and management	5
Risk management	7
Objects, aims, objectives and activities	9
Review of achievements and performance for the year	12
Financial review and results for the year	13
Governors’ responsibilities statement	15
Independent Auditor’s report	16
Consolidated statement of financial activities	19
Consolidated and charity balance sheet	20
Consolidated cash flow statement	21
Notes to the financial statements	22
Consolidated statement of financial activities for the prior year	37

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

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		Committees served as at 31/08/23	Committees served as at 31/08/23	Committees served as at 31/08/23
	Corporate Governance	Education	External Relations	Audit & Risk	Business & Management
Mrs B Ashby (appointed 21 Sept 2023)
Mrs E E Bailey (resigned 23 Mar 2023)	X
Mr P J Britton (appointed 01 Sept 2022)		X
Sir Stephen Brown (resigned 23 Mar 2023)	X		X
Mr J Cross				X	X
Mr M R Curle	X			X
Prof A Harrison Moore		X
Ms J Harper			X
Mr R Howse(appointed 23 Sept 2023)
Mr I M Jones(resigned 19 Jan 2023)					X
Mrs D Kenny (resigned 31 Aug 2023)		X
Dr A L Khan				X
Mrs C Lyons(Joint Vice Chair)			X		X
Mr A M Martin (Chair)	X				X
Mrs J Semple			X
Mrs P Sowa (appointed 23 Mar 2023)		X
Mrs C Vilarrubi	X			X
Mr T J Walsh					X
Mr J Woodward (Joint Vice Chair) (resigned 23 Mar 2023)			X		X

OFFICERS

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

S Woodroofe E Carruthers

S Kingston

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS AND CHARITY TRUSTEES, OFFICERS AND ADVISERS

KEY MANAGEMENT PERSONNEL

GSAL Leadership Team as at 31 August 2023

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 enquiries@gsal.org.uk

www.gsal.org.uk

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

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

NatWest Group Close Brothers 8 Park Row 10 Crown Place Leeds London LS1 1QS EC2A 4FT

INDEPENDENT AUDITOR

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

SOLICITORS

Lupton Fawcett LLP Yorkshire House East Parade Leeds LS1 5BD

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

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

Walker Morris LLP 33 Wellington Street Leeds LS1 4DL

Ward Hadaway 5 Wellington Place Leeds LS1 4AP

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

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 2023 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 2, 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.

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 5, and details of how the school engages with other key stakeholders is included within the relevant section of the Governors’ Report.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

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 8 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 2.

in the details on page 2.
Committee	Committee Chair	Meetings in year	Executive officers attending /secretary
Audit and Risk	Mr J Cross	3	Principal
			Director of Finance & Operations
			Clerk to the Governors
Education	Mrs D Kenny	4	Principal
			Vice Principal & Head of Senior School
			Vice Principal & Head of Primary School
			Clerk to the Governors
External Relations	Mrs C Lyons	3	Principal
			Director of External Relations
			Clerk to the Governors
Business and Management	Mr T J Walsh	4	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

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.

The charity also has a wholly owned subsidiary charitable incorporated organisation, the Parents and Friends of the Grammar School (GSAL PFA). The purpose of the GSAL PFA is to support the charity through developing relationships within the parental community and raising funds to support activities of the charity.

GSAL is the only shareholder of GSAL PFA and has sole authority to elect the Trustees. The GSAL PFA’s financial results are not deemed to be material to GSAL’s financial statements and have not been consolidated here.

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

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

In November 2022, as part of a restructuring and refinancing exercise, the total assets and liabilities of the GCT were transferred to GSAL and the GCT ceased to operate.

The transfer included the land and buildings at Alwoodley Gates currently occupied by GSAL, as well as the bank loans. The banking facilities with NatWest were renewed at the point of restructure. Further details are included in note 21 below.

STRATEGIC REPORT

RISK MANAGEMENT

Principal risks and going concern for the charity and group

The principal ongoing financial risks facing the charity are its ability to make payment of capital and interest in accordance with the facility agreement and to be able to adhere to the banking covenants given by the charity in respect of its borrowings.

The principal covenant for the charity 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 is required to meet a cash flow covenant. This risk is addressed through the preparation of detailed budgets, 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.

Going Concern

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

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

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

The promotion of Equity, Diversity and Inclusion (EDI) has been a large focus at GSAL over recent years and, GSAL has gone over and above the statutory commitments (the Sex Discrimination Act 1975, the Equality Act 2010 and the Disability Discrimination Act 1995) to embark upon accreditation with the National Centre for Diversity (NCD). This was granted in October 2023 and GSAL was the first independent school to achieve this. Then, for and with our students, we also run a vibrant EDI society called UpSoc. Both of these additions have their own development plans to embed 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, we have diversified our curriculum, and want to ensure that all people, including those with protected characteristics, are represented in school life and feel valued in our inclusive community. We are active members of a number of local, regional and national initiatives and have an EDI calendar to bring a different aspect of this work to life in the school each month. As part of the NCD accreditation, we also follow the FREDIE principles; Fairness, Respect, Equality, Diversity, Inclusion and Engagement and these are publicised everywhere, in print and online, to underline our commitment to these core values in the school.

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.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

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 - 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

As one of the oldest ins�tu�ons in Leeds we take our role in the community seriously. According to research undertaken by the Independent School Council (ISC), we contribute nearly £20m to the local economy and our ac�vi�es support over 470 jobs in the Leeds area. The success of the school and that of the city are inextricably linked, and thanks to generous philanthropic support throughout our history we are fortunate to enjoy excellent resources and facili�es, so we want as many children and young people as possible to benefit from our good fortune.

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

Our partners include:

Child Friendly Leeds for whom we are an ambassador. We organise seasonal collections, support their annual awards ceremony and they make use of our facilities.
LEEDS2023 we are key supporter and have run a CPD session for DT teachers, provided the use of facilities and equipment and donated to one of their legacy projects.
MILIM with whom we have hosted a number of high profile public events including Lord Finkelstein, Tim Marshall and David Conn.
Leeds Beckett University with whom we are joint funding a PhD to improve young people’s participation in sport.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

Leeds Rhinos to improve netball pathways across the area.
Leeds City Museum to provide free family fun days during the school holidays to augment the curriculum.
Otley Science Festival to inspire children about the wonders of science.
MathsCity which aims to improve the public’s understanding of maths by providing high quality hands-on experiences at the country’s only dedicated maths discovery centre.
Zero Waste Leeds by providing preloved items of uniform which are distributed to families in need and also saving tonnes of clothing from going to landfill.
White Rose and Yorkshire Schools’ Teaching Alliances to support teacher training and development and hence teacher recruitment and retention.
LEAP (Leeds Enterprise and Advisory Programme) to develop student’s enterprise skills in conjunction with other secondary schools across the city.
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 which include specialist rooms, sports pitches, swimming pool, conference suites and buses are used extensively by community groups, charities, educational organisations and businesses. Our staff also volunteer for a range of organisations including other schools and various charities.

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.

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.

The Governors have determined that the appropriate minimum level of free revenue reserves held should be one term’s expenditure on salaries, approximately £6.2m.

Unrestricted funds amount to £20.2m of which £50.2m is invested in fixed assets. During the year, £43.3m of fixed assets were transferred from GCT, largely comprising of the land and buildings occupied by the School.

Free reserves (total unrestricted reserves less fixed assets) have reduced in the year as a result of the transfer of the assets and liabilities from GCT, including the fixed assets above, and loans of £39m. Expenditure on new fixed assets and repayments on the bank loan following the transfer have also reduced cash in the year, contributing to the decrease in free reserves.

GSAL currently has no free reserves on a calculated basis (i.e. when fixed assets are deducted from unrestricted reserves). However, this is calculated after bank borrowings and other long term loans not due within one year and as such is not reflective of GSAL’s liquidity. GSAL is cash generating and well placed to meet its working capital requirements.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

GOVERNORS REPORT (INCLUDING THE STRATEGIC REPORT)

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.

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.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

REVIEW OF ACHIEVEMENTS AND PERFORMANCE FOR THE YEAR

Our operational objectives are set to reflect our charitable purpose, our educational mission, and our ethos.

GSAL’s whole school development plan was set for in 2021 to cover the period 2021-2024. It includes objectives across a range of areas as summarised, along with achievements in the year and plans for the future as below:

Area	Main objectives	Achievements in the year	Future
Mission and vision	Reinforcement of the school’s ethos and values including emphasis on EDI.	Accreditation from the National Centre for Diversity for work on EDI. Investment in staffing for EDI leadership and projects. Diversifying the curriculum.	Continued work with student leaders to further embed EDI across primary and senior schools.
Teaching and learning	A clear and coherent vision across all ages and school sections, inspiring academic excellence and wide pupil involvement.	81% of grades achieved were A to B at A Level. 91% of students progressed to higher education. At GCSE, in 2023, 51% of the GCSE grades were at an 8 or above (formerly A), and almost a third given a grade 9 (A**). Ongoing classroom refurbishment and furnishing projects - the greatest of these was the refurbishment of the senior school library (the oldest library in the city). Ongoing classroom IT upgrades for optimal teaching.	Completion of classroom IT replacements with more powerful interactive boards, trialling of new pupil laptops.
Pastoral and co- curricular	Commitment to pupil wellbeing and pastoral care though respect, listening to pupil voice, promotion of EDI and investment in wellbeing support. Range of activities and extensive pupil involvement in the co-curricular programme.	Increased spending on training and support in key safeguarding areas – the RAP project, anti-bullying workshops and others. Increased filtering and monitoring of electronic devices, investment in student support services. Review of Co-curricular allowances to coordinate provision and ensure parity of remuneration.	Continued safeguarding education for pupils, enhanced age and stage filtering/monitoring. Review of trips and visits offering across school sections, year groups and subjects.
Staff	Focus on staff wellbeing and continuing professional development.	Increased benefits through EAP provision and GP helpline, staff fitness classes introduced, counselling and support services, refurbishment of staff common areas, promotion of staff training and offering apprenticeships to existing staff.	Ensure staff remain well informed and supported regarding changes in the TPS, offer support through free specialist pensions’ advice.
School culture and external relations	Focus on communications, alumni relations, pupil recruitment/retention, renewed parent activities and school outreach.	Started development of new school website, embedded new parental communications platform and extended access to pupils. Newly reformed PFA introduced evening activities for parent community. School remained full with waitinglists in many yeargroups.	New external website to be launched in the year.
Capital investments, operational systems and resources	Focus on cyber security, risk management and statutory compliance, driving the green agenda, development of the performing arts centre.	Refurbishment and development of sporting facilities, (athletics track, astroturf pitches, sports dome into use), investment in IT infrastructure and commencing work on the performing arts centre. Strengthening cyber security through additional software tools, enhanced staff training and spot tests. Awarded Schools’ Green Flag with distinction, 100% LED lighting outside.	The Performing Arts Centre (PAC) will be largely completed over the coming year, due to open 2024/25.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Consolidated net income before exceptional income and transfers for the year was £1,750k (2022: £828k). The increase in net income for 2022-23 is largely attributable to an increase in trading subsidiary activity, a decrease in the need for financial support for parents and the transfer of buildings to the school, as detailed in note 21, reducing the rent liability in the year.

In line with our charitable objectives, GSAL provided £1,083k (2022: £1,276k) of bursary, scholarship and temporary financial hardship support to parents in 2022-23, the equivalent of 3.7% of gross fee income. This included an additional contribution from the school of £552k (2022: £764k) to support restricted funds over and above the £448k (2022: £434k) transfer required by the Memorandum and Articles, representing 2% of Senior School fees.

After these transfers total funds carried forward were £20,233k (2022: £13,909k), split between unrestricted funds £20,177k and restricted funds £56k.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

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

UK Greenhouse gas emissions and energy use data for the period 1 September to	2022/23	2021/22
31 August		comparative
Energyconsumption used to calculate emissions(kWh)	6,291,234	6,362,298
Energyconsumption break down(kWh) (optional):
•gas
• electricity
• transport fuel
Scope 1emissions in metric tonnes CO2e
Gas consumption	813	830
Owned transport – mini-buses	8	5
Total Scope 1	821	835
Scope 2emissions in metric tonnes CO2e

Purchased electricity	375	346
Scope 3emissions in metric tonnes CO2e

Business travel in employee owned vehicles	1.42	1.29
Totalgross emissions in metric tonnes CO2e	1,197	1,182
Intensityratio Tonnes CO2eperpupil	0.57	0.56

Quantification and reporting methodology

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

Intensity measurement

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

Measures taken to improve energy efficiency

During 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. All external building lights have been replaced with LED fittings and has individual occupancy time programmes set through the building management system (BMS). Our efforts have been rewarded through an Eco-Schools Green Flag distinction award.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

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 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

Chair

10 January 2024

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

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 2023 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 2023 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

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. 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 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.

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

Other matters prescribed by the Companies Act 2006

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

the information given in the Governors’ Annual Report which includes the Directors’ Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Governors’ Annual Report which includes the Directors’ Report and the Strategic Report has been prepared in accordance with applicable legal requirements.

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:

THE GRAMMAR SCHOOL AT LEEDS ANNUAL REPORT AND FINANCIAL STATEMENTS 2023

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS

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

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

Audit response to risks identified:

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

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

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

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

Use of our report

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

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

Chartered Accountants, Statutory Auditors Mitre House North Park Road Harrogate HG1 5RX

22 February 2024 Date:

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

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account)

Year ended 31 August 2023

expenditure account) Year ended 31 August 2023
Note INCOME FROM: Charitable activities–education; Tuition fees Other income 2 Other trading activities - trading income Donations - general Investments Total trading and charitable income Exceptional income – transfer from GCT 21 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 NET MOVEMENT IN FUNDS BEFORE EXCEPTIONAL INCOME 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 2023 Total funds 2022 £’000 £’000 £’000 £’000 29,058 - 29,058 28,115 1,818 - 1,818 1,772
	30,876 - 30,876 29,887 622 - 622 412 - 103 103 102 343 - 343 205
	31,841 103 31,944 30,606 4,574 - 4,574 -
	36,415 103 36,518 30,606
	(1,599) - (1,599) (1,408) (27,494) (1,101) (28,595) (28,370)
	(29,093) (1,101) (30,194) (29,778)
	7,322 (998) 6,324 828
	(448) 448 - - (552) 552 - -
	6,322 2 6,324 828

	1,748 2 1,750 828
	13,855 54 13,909 13,081 6,322 2 6,324 828
	20,177 56 20,233 13,909

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 23 for comparative Consolidated Statement of Financial Activities analysed by fund.

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED AND CHARITY BALANCE SHEETS

At 31 August 2023

			Group		Charity
		2023	2022	2023	2022
	Note		£’000		£’000
FIXED ASSETS
Tangible assets	8	49,366	5,002	49,192	4,974
Assets under construction	9	878	1,506	878	1,506
Investments	10	25	25	25	25
		50,269	6,533	50,095	6,505
CURRENT ASSETS
Stocks		27	19	20	18
Debtors due within one year	11	758	550	1,050	791
Debtors due after one year	11	5,635	5,632	5,731	5,632
Bank balances and cash		12,724	16,960	12,369	16,641
		19,144	23,161	19,170	23,082
CREDITORS: amounts falling due within one year	12	(19,249)	(15,290)	(19,101)	(15,123)
NET CURRENT (LIABILITIES)/ ASSETS		(105)	7,871	69	7,959
TOTAL ASSETS LESS CURRENT LIABILITIES		50,164	14,404	50,164	14,464
CREDITORS: amounts due after more than one year	13	(29,931)	(495)	(29,931)	(495)
NET ASSETS		20,233	13,909	20,233	13,969
FUNDS
Restricted funds	14	56	54	56	54
Unrestricted funds	15	20,177	13,855	20,177	13,915
TOTAL FUNDS	16	20,233	13,909	20,233	13,969

These financial statements of The Grammar School at Leeds, Company Registration Number 03075826 were approved by the Governing Body and authorised for issue on 10 January 2024 and signed on their behalf by:

A M Martin

Chair

THE GRAMMAR SCHOOL AT LEEDS

CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2023

Net cash flows from operating activities Cash flows from investing activities: Interest received Financing activities - repayment of borrowings Interest payable Purchase of tangible fixed assets Sale of tangible fixed assets (Decrease) 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	2023 2022 £'000 £'000 2,902 2,521 343 205 (4,781) - (532) - (2,168) (2,870) - 38
		(4,236) (106) 16,960 17,066
		12,724 16,960

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 (Gain)/loss on GCT transfer Depreciation (Increase) in stocks Increase in creditors <1yr (Decrease)/Increase in creditors >1yr (Increase)/Decrease in debtors Net cash inflow from operating activities	2023 2022 £’000 £'000 6,324 828 (343) (205) - (38) (4,574) - 1,709 737 (8) (2) 33 486 (28) 52 (211) 663
	2,902 2,521

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 12 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 3.

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

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 £6,264k (2022: £802k).

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.

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

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, financing 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. Fixed assets consist of leasehold property and related equipment. 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 - general	25 years
Land and buildings – main	Remaining life of lease expiring in December 2070
Organ	50 years

At the start of the financial year, the school buildings at Alwoodley were the property of the LGS General Charitable Trust. In November 2022, ownership of the buildings transferred to the school. The land at Alwoodley is the property of the Leeds Grammar School and Leeds Girls’ High School Foundation.

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.

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

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 teaching and 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).

With the exception of the interest rate swap described in note 22, 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.

The fair value of the interest rate swap is calculated by the charity’s bankers by discounting the future cash flows to the maturity date. Any movement in the valuation at the year end is recognised in the statement of financial activities for the year.

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 Pupil transport	2023 £’000 2022 £’000 1,175 1,139 123 169 520 464
	1,818 1,772

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	2023 £’000 2022 £’000 448 434 552 764 1,000 1,198

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	2023 2022 £'000 £'000 - (38) 1,709 737 38 22 1 6 650 3,431 158 420

The charity’s net income for the year in accordance with the Companies Act 2006 was £6,264k (2022: £802k).

5. GOVERNING BODY REMUNERATION AND RELATED PARTY TRANSACTIONS

During the year, no travel expenses were paid to Governors for attending meetings (2022:£nil).

No governors were remunerated during the current or prior years.

The children of governors that attend the school do so under normal commercial terms and receive no discount or concession.

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

Income to GSAL from GSAL Transport £1k donation under gift aid (2022: £nil). Income to GSAL from GSAL Transport £10k in respect of support services provided (2022: £10k). Expenditure paid by GSAL to GSAL Transport £1,216k in respect of transport services and advertising (2022: £1,177k).

A £150k loan from GSAL to GSAL Transport was granted in the year to purchase vehicles. There is an outstanding balance owing of £146k at 31 August 2023. The loan is interest bearing and subject to a repayment plan.

A further balance of £244k was owed to GSAL from GSAL Transport limited at 31 August 2023 (2022: £191k).

GSAL Enterprises Limited

Income to GSAL from GSAL Enterprises £178k donation under gift aid (2022: £156k) Income to GSAL from GSAL Enterprises £nil in respect of the provision of consumables (food) for events (2022: £nil).

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

Expenditure paid by GSAL to GSAL Enterprises £1k in respect of the provision of consumables (drinks) for events (2022: £1k).

A balance of £178k was owed to GSAL from GSAL Enterprises limited at 31 August 2023 (2022: £156k). A balance of £1k was owed by GSAL to GSAL Enterprises limited at 31 August 2023 (2022: £nil)

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 2023 2022 No. No. 214 202 258 258 472 460 No. No. 191 179 177 174 368 353 2023 £’000 14,946 1,495 2,646 19,087	Charity 2023 2022 No. No. 214 202 239 239
		453 441
		No. No. 191 179 158 155
		349 334
		2022 £’000 13,876 1,380 2,467
		17,723

During the year there were redundancy/termination payments made by the charity to two individuals (2022: one) which amounted to £62k (2022: £50k). As at year end, £nil remained outstanding (2022: £50k).

There were 19 staff (FTE) directly employed by the charity’s subsidiaries in the year (2022: 19).

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:

	2023	2022
	No.	No.
£60,001 - £70,000	43	30
£70,001 - £80,000	4	6
£80,001 - £90,000	4	3
£90,001 - £100,000	2	1
£100,001 - £110,001	-	2
£110,001 - £120,000	3	-
£140,001 - £150,000	-	1
£160,001 - £170,000	1	-
£210,001 - £220,000	-	1
£230,001 - £240,000	1	-

Of the above staff members, 50 (2022: 39) have benefits accruing under defined benefit pension schemes and 8

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

(2022: 5) had benefits accruing under the defined contribution scheme. Employer’s contributions for the defined contribution scheme were £68K (2022: £38k).

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 £1,518k (2022: £1,407k).

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 £1,518k (2022: £1,407k).

7. ANALYSIS OF EDUCATION AND GRANT MAKING EXPENDITURE

Direct costs
Teaching costs
Welfare costs
Premises
Non-teaching support costs
Bursaries, prizes and specific fund expenditure
Support costs
Governance costs
Finance and other costs
Consolidated total
2022 Comparatives
Direct costs
Teaching costs
Welfare costs
Premises
Non-teaching support costs
Bursaries, prizes and specific fund expenditure
Support costs
Governance costs
Finance and other costs
Consolidated total

Staff Costs
Other Costs
Depreciation
Total 2023
14,855
1,241
-
16,096
754
927
-
1,681
1,018
2,855
1,195
5,068
1,786
1,145
504
3,435
-
1,101
-
1,101
41
527
-
568
-
646
-
646
18,454
8,442
1,699
28,595
Staff Costs
Other Costs
Depreciation
Total 2022
13,872
1,138
-
15,010
698
707
-
1,405
850
5,500
370
6,720
1,764
1,497
355
3,616
-
1,307
-
1,307
40
211
-
251
-
61
-
61
17,224
10,421
725
28,370

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

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

8. FIXED ASSETS

Consolidated & Company Cost At 1 September 2022 Additions Transfer from GCT Disposals At 31 August 2023 Accumulated depreciation At 1 September 2022 Charge for the year Disposals At 31 August 2023 Net book value At 31 August 2023 At 31 August 2022	Vehicles Plant & Machinery Office & Computer Equipment Land & Buildings Furniture & Fixtures Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £'000 £’000 £’000 £’000 £’000 29 715 2,403 1,968 3,132 8,247 53 8,300 - 73 756 1,405 406 2,640 156 2,796 - - - 43,221 56 43,277 - 43,277 - - (102) - (18) (120) (8) (128)
	29 788 3,057 46,594 3,576 54,044 201 54,245
	28 478 1,240 151 1,376 3,273 25 3,298 - 56 504 848 291 1,699 10 1,709 - - (102) - (18) (120) (8) (128)
	28 534 1,642 999 1,649 4,852 27 4,879
	1 254 1,415 45,595 1,927 49,192 174 49,366
	1 237 1,163 1,817 1,756 4,974 28 5,002

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 2022 Additions Transfer to fixed assets At 31 August 2023	Sports Dome Performing Arts Centre Server Upgrade Charity Total Trading Companies Consolidated Total £’000 £’000 £'000 £’000 £’000 £’000 1,383 93 30 1,506 - 1,506 - 785 - 785 - 785 (1,383) - (30) (1,413) - (1,413)
	- 878 - 878 - 878

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

THE GRAMMAR SCHOOL AT LEEDS NOTES TO THE FINANCIAL STATEMENTS

10. INVESTMENTS HELD AS FIXED ASSETS

Market value at 1 September 2022 and 31 August 2023 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 2023	Consolidated & Charity 2023 £’000 2022 £’000 25 25
	5 5 20 20
	25 25
	25 25

11. DEBTORS AND PAYMENTS IN ADVANCE Amounts falling due within one year: Tuition fee debtors Trade debtors Other debtors Amounts due from trading subsidiaries Loan due from GSAL Transport Limited 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 Loan due from GSAL Transport limited SWAP contract	Consolidated Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 61 44 61 44 98 47 - - 120 41 51 - - - 422 347 - - 50 - 479 418 466 400
	758 550 1,050 791
	- 2,990 - 2,990 2,642 2,642 2,642 2,642 - - 96 - 2,993 - 2,993 -
	5,635 5,632 5,731 5,632

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.

The loan due from GSAL Transport Limited carries a fixed rate of interest, is unsecured and is currently being repaid by instalments with the final payment due on, or before, 31 July 2026.

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NOTES TO THE FINANCIAL STATEMENTS

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 Bank loan Amounts owing to trading subsidiaries	Consolidated Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 11,879 11,386 11,879 11,386 761 774 679 670 - 292 - 292 440 375 423 354 860 857 858 854 43 41 43 41 1,230 1,565 1,182 1,526 4,036 - 4,036 - - - 1 -
	19,249 15,290 19,101 15,123

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

Acceptance deposits Amount due to LGS/LGHS Foundation Bank loan	Consolidated Charity 2023 2022 2023 2022 £’000 £’000 £’000 £’000 467 495 467 495 10,900 - 10,900 - 18,564 - 18,564 -
	29,931 495 29,931 495

The loan of £10,900,000 from the Foundation was transferred from the LGS General Charitable Trust as part of the restructuring and refinancing exercise and is made up of £6,050,000 (representing the equality of exchange resulting from the exchange of the Leeds Grammar School Moorland Road site, the Junior School property and the Playing Fields site at Lawnswood for the land at Alwoodley Gates with the University of Leeds), a loan of £750,000 advanced in May 2007 and a total of £4,100,000 being the proceeds of sale of the Headingley properties.

13A. BORROWINGS

The loans are repayable in instalments as follows;

Note Due within one year 12 Due within one to two years 13 Due within two to five years 13 Due after more than five years 13	2023 £ 4,036 3,229 9,685 16,550
	33,500

In November 2022 the assets and liabilities of the GCT were transferred to GSAL. This included bank loans from NatWest of £28m, repayable by July 2030.

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

The loan interest is at a variable rate, and a swap contract is in place to manage the risk of interest rate variations as per note 22.

The bank loan is secured by a legal charge over the assets of the charity and the following securities:

a first and third-party first legal charge granted by the Foundation in respect of the Alwoodley Freehold;
a deed of subordination entered into by the Foundation subordinating the existing Alwoodley Foundation loan, the Foundation Development facility and the Foundation Refinancing facility to the indebtedness of the Bank

The Foundation loan of £10.9m was transferred from GCT. The loan is interest-free and unsecured, is due to be repaid in one amount on 31 December 2067, with an option to make payments after 31 December 2028.

The Foundation is the custodian of the land at Alwoodley Gates pursuant to the Charity Commission Scheme of 6 December 1996.

14. RESTRICTED FUNDS

The restricted funds of the charity comprise the following:

Consolidated & Charity Balance at 1 September 2022 Income Expenditure Transfer from unrestricted funds Balance at 31 August 2023 2022 Comparatives 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 33 54 83 - - 20 103 (1,083) - - (18) (1,101) 1,000 - - - 1,000
	- 16 5 35 56
	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

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

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

All bursary transactions are accounted for through the Expendable & Hardship Bursary Funds. Bursaries paid out by GSAL amounted to £1,083k offset by donations from third parties and the Foundation Award Funds of £83k, with the balance being funded by transfers from GSAL unrestricted funds amounting to £1,000k

Total specific restricted donations income of £20k includes monies received from restricted scholarship sources (£1k) and pupils’ weekly charity collection (£19k). Specific restricted donations expenditure of £18k includes the donations to various charities from the pupils’ weekly collections (£18k). This has resulted in net income for specific restricted donations of £2k.

15. UNRESTRICTED FUNDS

Consolidated & Charity Balance at 1 September 2022 Income Expenditure Transfer to restricted funds Transfer from trading companies Exceptional items Balance at 31 August 2023	School Reserve Charity Total Trading Companies Consolidated Total £’000 £’000 £’000 £’000 13,915 13,915 (60) 13,855 31,220 31,220 619 31,839 (28,711) (28,711) (380) (29,091) (1,000) (1,000) - (1,000) 179 179 (179) - 4,574 4,574 - 4,574
	20,177 20,177 - 20,177

2022 Comparatives

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

16. ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS

Restricted funds Lightwing & Headingley Funds Chapel Fund Specific Restricted Donations Unrestricted funds School Reserve	Fixed Assets and investments Debtors due in more than one year Current assets Current liabilities Long term liabilities Total £’000 £’000 £’000 £’000 £’000 £’000 20 - - (4) - 16 5 - - - - 5 - - 35 - - 35
	25 - 35 (4) - 56
	50,244 5,635 13,474 (19,245) (29,931) 20,177

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NOTES TO THE FINANCIAL STATEMENTS

	50,244	5,635	13,474	(19,245)	(29,931)	20,177
Consolidated total
	50,269	5,635	13,509	(19,249)	(29,931)	20,233
2022 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
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

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 £2,260k (2022: £2,117k) and at the year-end £183k (2022 - £176k) was accrued in respect of contributions to this scheme.

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

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

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

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

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 a defined contribution group personal pension plan for support staff and teaching staff who elect to join this scheme in place of the TPS. These contributions are also charged directly to the statement of financial activities.

The total pension costs are broken down as follows: Teachers Support staff 19. INVESTMENT IN SUBSIDIARIES Investment in subsidiaries at cost	2023 £’000 2022 £’000 2,380 2,227 238 217
	2,618 2,444
	2023 £ 2022 £ 3 3

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

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

ransport services.
	2023 2022
GSAL Enterprises Ltd - financial summary	£'000 £'000

Turnover	212 186
Cost of sales	(18) (11)
Gross profit	194 175
Admin expenses	(16) (19)
Operating profit	178 156
Donation to GSAL	(178) (156)
Result for the financialyear	- -

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NOTES TO THE FINANCIAL STATEMENTS

Assets	190 186
Liabilities	(190) (186)
Funds	- -

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

GSAL Transport Ltd - financial summary Turnover Cost of sales Gross profit Admin expenses Operating (loss)/profit Profit/(loss) before tax Donation to GSAL Cumulative losses carried forward Assets Liabilities Funds	2023 2022 £’000 £'000 1,627 1,405 (1,523) (1,335)
	104 70 (43) (44)
	61 26 (60) (86) (1) -
	- (60)
	528 269 (528) (329)
	- (60)

20. OPERATING LEASES COMMITMENTS

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

Group - within one year - between one and five years - after five years Charity - within one year - between one and five years - after five years	2023 Land and buildings £000 - - - - - - - -	Other £000 3 - - 3 3 - - 3	2022 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

Ownership of the land and buildings transferred to GSAL in November 2022, resulting in the termination of the lease.

THE GRAMMAR SCHOOL AT LEEDS

NOTES TO THE FINANCIAL STATEMENTS

21. EXCEPTIONAL INCOME

On 14 November 2022, as part of a restructuring and refinancing exercise, the total assets and liabilities of the LGS General Charitable Trust were transferred to the school.

The transfer included £43m of fixed assets, largely the land and buildings at Alwoodley Gates currently occupied by school. The banking facilities with NatWest were renewed at the point of restructure, and loan liabilities of £28m and a swap contract (asset) with a value of £3m were transferred to GSAL (see note 22).

Other liabilities totalling £14m were also transferred, including £11m owed to the Foundation (note 13) and £3m owed to GSAL (eliminated as part of the restructuring), giving an overall exceptional income of £4.5m as shown in the statement of financial activities.

22. FINANCIAL INSTRUMENTS

Prior to the transfer of assets and liabilities to GSAL, GCT had previously entered into a contract in relation to a financial derivative to manage its exposure to the risk of interest rate variation. The interest rate swap was due to expire on 31 December 2028 but as part of the re-structure of loans during the 2015/16 financial year, the original swap contract was cancelled in July 2016 and a new swap contract entered into with a termination date of 30 June 2030.

The existing swap contract was transferred to GSAL as part of the restructure in November 2022.

The fair value of the derivative is calculated by discounting the future cash flows to the maturity date and at 31 August 2023 the value was determined by GSAL’s bankers to be an asset of £2,993k compared to an asset of £3,042k at 31 October 2022 (when revalued as part of the restructure). The loss of £49k resulting from this revaluation was recognised in the statement of financial activities for the year.

The notional principal value at 31 August 2023 is £22,600k. The contract fixed interest rate is 0.92%. The interest rate swap settles quarterly, on the basis of the difference between the fixed and floating interest rate.

THE GRAMMAR SCHOOL AT LEEDS NOTES TO THE FINANCIAL STATEMENTS

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

Year ended 31 August 2022

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 2022 £’000 £’000 £’000 28,115 - 28,115 1,772 - 1,772
	29,887 - 29,887 412 - 412 - 102 102 205 - 205
	30,504 102 30,606
	(1,408) - (1,408) (27,063) (1,307) (28,370)
	(28,471) (1,307) (29,778)
	2,033 (1,205) 828 (434) 434 - (764) 764 -
	835 (7) 828
	13,020 61 13,081 835 (7) 828
	13,855 54 13,909