2020-08-31-accounts - The Portsmouth Grammar School

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	Page	Page
Governors, Officers and Advisers		1 - 3
Report of the Directors	4	— 24
Statement of Directors’ Responsibilities		25
Report of the Auditors	26 — 28
Consolidated Statement of Financial Activities		29
Consolidated Balance Sheet		30
Company Balance Sheet		31
Consolidated Cash Flow Statement		32
Notes to the Financial Statements	33 - 53

	2020	2019
UK energy use (1) kWh	2,450,890	3,205.028
Associated Greenhouse gas	535.7	688.5
emissions (2) Tonnes 002
equivalent
Intensity ratio Emissions per	0.025	0.032
tCO2/m2/year

Crowe A

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE PORTSMOUTH GRAMMAR SCHOOL (CONTINUED)

Responsibilities of the Governors

As explained more fully in the Governors' Responsibilities Statement set out on page 25, the Governors 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 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's or the 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 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

Our objectives are to obtain reasonable assurance about whether the 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.orq.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the 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 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 Charitable Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce

Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor

Reading

Date: 18 December 2020

Page 28

					Expendable	Permanent
		Unrestricted	Restricted		Endowment	Endowment	Total	Total
	Notes	Funds	Funds		Fund	Funds	2020	2019
INCOME AND ENDOWMENTS		£	£		£	£	£	£
Charitable activities
School tees receivable	4	16,996,395				-	16,996,395	19,322,718
Ancillary trading income	5	703,980				-	703,980	1,417,395
Other trading activities
Activities for generating funds:
Non-charitable trading	7	116,154				-	116,154	148,509
Other incoming resources		66,366				-	66,366	52,168
Investments
Investment Income	6	57,481		-	6,178	22,941	86,600	119,463
Voluntary sources
Donations		133,818	239,289		-	-	373,107	370,340
Coronavirus Job Retention
scheme income		155,409					155,409
Total income		18,229,603	239,289		6,178	22,941	18,498,011	21,430,593
EXPENDITURE ON:
Raising Funds
Non-charitable trading	7	193,650				-	193,650	200,633
Financing costs	11	342,229			2,294	8,520	353,043	253,557
Fund-raising costs		198,768				-	198,768	211,001
Charitable activities:
School operating costs and grant making before exceptional write-ott costs Exceptional write-oft of fixed assets r	8	17,684,894 -		315 -	15,867 -	- -	17,701,076 -	19,655,121 633,774
Total charitable activities		17,684,894		315	15,867	-	17,701,076	20,288,895
Total expenditure	8	18,419,541		315	18,161	8,520	18,446,537	20,954,086
Net investment gains/(losses)	13	6,093		-	2,372	8,808	17,273	82,549
NET INCOME/(EXPENDITURE)		(183,845)	238,974		(9,611)	23,229	68,747	559,056
Transter between funds	9	-		-	-	-	-
								-
NET MOVEMENT IN FUNDS		(183,845)	238,974		(9,611)	23,229	68,747	559,056
Fund balances at 1 September 2019		17,117,746	578,532		244,386	4,535,393	22,476,057	21,917,001
Fund balances at 31 August 2020	22	16,933,901	81	7.506	234,775	4,558,622		224Z6.D5Z

		Notes	2020			2019
			£	£		£
FIXED ASSETS
Tangible assets		12	23,076,080			23,026, 181
Investments		13		2,277,010		2,277,292
			25,353,090			25,303,473
CURRENT ASSETS
Stocks			139,949			157,681
Debtors		15	1,108,969			1,107278
Cash at bank and in hand		14	6,194,462			7,367,286
			7,443,380			8,632,245
CREDITORS: Amounts falling due within
one year		16	(3,221,190)			(3,603,197)
NET CURRENT ASSETS				4,222,190		5,029,048
TOTAL ASSETS LESS CURRENT
LIABILITES			29,575,280			30,332,521
CREDITORS: Amounts falling due in
more than one year		17	(7,030,476)			(7,856,464)
TOTAL NET ASSETS			£	22,544,804	£	22,476,057
FUNDS
Endowed funds				4,558,622		4,535,393
Expendable Endowment	Fund			234,775		244,386
Restricted funds		20		817,506		578,532
Unrestricted funds	- General	21	16,933,901			17,117746
TOTAL FUNDS		22	£	22.544.804	£	22476,057

		Notes	2020		2019
				£	£
FIXED ASSETS
Tangible assets		12	19,441,866		19,389,635
Investments		13		2,277,012	2,277,294
			21,718,878		21,666,929
CURRENT ASSETS
Stock			12,379		12,362
Debtors		15	1,478,645		1,465,241
Cash at bank and in hand		14	5,958,242		7, 134,898
			7,449,266		8,612,501
CREDITORS: Amounts falling due within
one year		16	(4,362,326)		(4,735,615)
NET CURRENT ASSETS				3,086,940	3,876,886
TOTAL ASSETS LESS CURRENT
LIABILITIES			24,805,818		25,543,815
CREDITORS: Amounts due in more than
one year		17		(7,030,476)	(7,856,464)
TOTAL NET ASSETS			£	17,775,342	£17,687,351
FUNDS
Restricted funds		20		817,506	578,532
Unrestricted funds	- General	21	16,957,836		17,108,819
TOTAL FUNDS		22	£	17,775,342	£17,687,351

		2020	2019
		£	£
Cash flows from operating activities
Net movement in funds per SOFA		68,747	559,056
Depreciation		897,755	930,789
Write-off of fixed assets		-	633,774
Investment income		(86,600)	(119,463)
Interest paid		197,930	236,256
Gain on investments		(17,273)	(82,549)
Decrease/Oncrease) in stock		17,732	(14963)
(Increase)/decrease in debtors		(1,691)	54,323
(Decrease)/increase in creditors		(408,234)	2, 166
Cash provided by operating activities		668,366	2, 196,389
Cash flows from investing activities
Payments to acquire tangible fixed assets		(947,654)	(1,446,825)
Payments to acquire fixed asset investments		(282,707)	(934,039)
Proceeds on tangible fixed assets		-	-
Proceeds on disposal of fixed asset investments		242,194	592,050
Interest paid		(197,930)	(236,256)
Investment income		86,600	119,463
Cash used in investing activities		(1,099,497)	(1,905,607)
Cash flows from financing activities
Bank loan repaid		(2,037,599)	(570,910)
New bank loan		1,528,237	-
Cash used in financing activities		(509,362)	(570,910)
Advancefees scheme
Payments on account utilised		(1,193,165)	(1,334,016)
Receipts from new contracts		902,766	1466,878
Cash (used in) / provided by advancefees		(290,399)	132,862
Decrease in cash and cash equivalents in the year	24	(1,230,892)	(144266)
Cash and cash equivalents at the beginning of the year		7,449,325	7,596,591
Total cash and cash equivalents at the end of the year		£ 6,218,433	£ 7.449225
Analysis of cash and cash equivalents:
Cash at bankand in hand	14	6,194,462	4364286
Cash held with investment manager		23,971	82,039
		£ 6.218.433	£ 7,449,325

HOOL FEES	RECEIVABLE
		2020	2019
		£	£
School fees	receivableconsist of:-
Gross fees		19,172,792	21,215,958
Less:
	Foundation bursaries	(1,301,146)	(1,120,802)
	Scholarships, prizes, discounts and allowances	(875,251)	(772,438)
		£16,996,395	£19,322,718

				2020		2019
				£		£
Lunches				363,461		702,356
School trips				227,218		558,069
Registration fees				15,700		18,700
Fee protection insurance				17,697		21,065
Events and fundraising				9,790		19,697
Sale of goods				14,383		26,957
Other ancillary income				55,731		70,551
			£	703,980		£ 1.417.395
NVESTMENT INCOME
				2020		2019
				£		£
Dividend income				46,132		44,542
Bank interest				40,468		74,921
		£		86,600	£	119,463
RADING SUBSIDIARY
				2020		2019
PGS PROMOTIONS LIMITED				£		£
Turnover				164,785		197816
Cost of sales			(125,506)			(125,098)
Gross profit				39,279		72,718
Administrative expenses				(73,228)		(81,343)
Other operating income				2,720		-
Interest payable and similar charges				(407)
Net loss	£			(31,636)	£	(8.625)
Retained earnings at the beginning of the year				8,927		45,832
				8,927		45,832
Loss for the year				(31,636)		(8,625)
Gift aid donation				(1,227)		(28,280)
Retained earnings at the end of the year				(23,936)		8,927

OTAL RESOURCES	EXPENDED
	Statt costs	Depreciation		Other	2020	2019
	£		£	£	£	£
Charitable
activities
Teaching costs Welfare costs	10,569,691 469,618		404,611 -	1,203,012 473,654	12,177,314 943,272	13,457595 1,322,881
Premisescosts*	617,662		490,812	1,119,611	2,228,085	3,086,112
Support costs	1,311,736		-	1,024,802	2,336,538	2,403,562
School’s operating costs	12,968,707		895,423	3,821,079	17,685,209	20,270,150
Raising Funds Financing costs Fund-raising costs	- 163,939		-	342,229 34,829	342,229 198,768	242, 120 211,001
	163,939			377,058	540,997	453, 121
TOTAL FOR
SCHOOL	13,132.646		895,423	4,198,137	18,226,206	20,723,271
Subsidiary trading
and financing costs	49,448		2,332	141,870	193,650	201,360
Endowment fund	-		-	8,520	8,520	8,438
The Arthur Darby Nock Trust				18,161	18,161	21,017
TOTAL FOR
GROUP	£13182094	£	897,755	£ 4,366.688	£18,446.537	£20,954,086

OTAL RESOURCES EXPENDED (continued)
	2020	2019
	£	£
Total staff costs comprised:
Wages and salaries	10,369,731	11,124,327
Social security costs	963,910	973,661
Pension contributions	1,758,840	1,320,651
Other	89,613	41,544

The av	erage number of employees in the period was	332 broken down as follows:
		2020	2019
Average number of teaching staff:
	Full Time	117	133
	Part Time	64	59
Total		181	192
Average number of support staff
	Full Time	76	81
	Part Time	75	88
Total		151	169
Total	all staff	332	361

		2020		2019
		No.		No.
£60,000 -	£70,000		8	8
£70,000-80,000			3	2
£80,000-90,000			2	1
£90,000 -	£100,000			1
£100,000	-£110,000		1
£120,000	- £130,000			1
£130,000	-£140,000		1
£140,000	-£150,000			1

		2020	2019
		£	£
Net income is stated	after charging:
Auditors’ remuneration	- Audit — School	21,400	20,950
	- Audit — Subsidiary	5,100	4,995
	- Other services	1,060	1,060
	- Corporation tax compliance	1,500	930
Operating leases Depreciation		94,805 897,755	106,715 930,75.

		2020		2019
		£		£
Bank loan and overdraft interest		197,930		236,256
Bank charges		10,196		12,326
Bad debts/(credit)		94,717		(42,137)
Other financing costs		50,200		47, 112
	£	353,043	£	25.55i

		Fixtures,
		fittings,
	Freehold	computer
	land and	equipment &		Motor
GROUP	buildings	plant		vehicles		Total
	£	£		£		£
COST
At 1 September 2019	26,542,377	8,290,927		65,012		34,898,316
Additions	381,291	566,363		-		947,654
At 31 August 2020	26,923,668	8,857,290		65,012		35,845,970
DEPRECIATION
At 1 September2019	4,797,133	7,014,374		60,628		11,872,135
Charge for the year	453,757	443,122		876		897,755
At31 August2020	5250,890	7,457,496		61,504		12,769,890
NET BOOK VALUE
At 31 August 2020	£21,672,778	£1,399,794	£	3,508	£	23,076,080
At3lAugust2019	£21745244	£1276553	£	4,384	£	23,026.181
SCHOOL
COST
Ati September2019	22,917,493	8,147,590		53,787		31,118,870
Additions	381,291	566,363		-		947,654
Disposals	-	-		-		-
At 31 August 2020	23,298,784	8,713,953		53,787		32,066,524
DEPRECIATION
At 1 September2019	4,797,133	6,879,757		52,345		11,729,235
Charge for the year	453.757	441,378		288		895,423
At31 August2020	5,250,890	7,321,135		52,633		12,624,658
NET BOOK VALUE
At 31 August 2020	£18,047.894	£1.392.818	£	1,154	£	19.441.866
At3lAugust2019	£18120360	£1,267,833	£	1,442	£	19,389,635

FIXED ASSET INVESTMENTS
GROUP
				2020			2019
				£			£
UK Listed investments
At 1 September2019			2,195,253				1,770,715
Additions				282,707			934,039
Disposals Investment gains				(242,194) 17,273			(592,050) 82,549
Market value of investments			2,253,039				2, 195,253
Cash held for investment				23,971			82,039
Total investment at 31 August 2020		£	2,277,010			£	2.277,292
Historical Cost		£	1,975,245			£	1,988.431
SCHOOL
		Listed		Unlisted			Total
		£		£			£
At 1 September2019		2,195,253			2		2,195,255
Additions		282.707			-		282,707
Disposals		(242,194)			-		(242,194)
Investment gains		17,273					17,273
Market value of investments		2,253,039			2		2,253,041
Cash held for investment*		23,971					23,971
At31 August2020	£	2.277,010		£	2		£ 2,277.012
Historical cost	£	1,975.245		£	2		£1,975,247

DEBTORS
		Group			School
		2020	2019		2020	2019
		£	£		£	£
Trade and parental debt		449,961	298,258		390,097	267694
Amounts due from
group undertakings		-	-		435,428	417011
Prepayments and
other debtors		557,966	698,202		552,078	669,718
Deferred expenditure		101,042	110,818		101,042	110,818
	£	1.108,969	£1,107,278	£	1,478,645	£_i,465241

		Group		School	School
	2020		2019	2020	2019
	£		£	£	£
Bank loan (note 18)	625,367		612,309	625,367	612,309
Trade creditors	477,520		537517	477,520	537517
Amounts owed to group
undertakings	-		-	1,168,513	1,154,894
Deposits in advance	82,300		172,620	82,300	172,620
Other creditors	211,441		286,316	211,441	285,081
Accruals	773,957		917,343	746,580	896,102
Deferred income (note 19)	813,315		800,145	813,315	800,145
Other taxes and social
security	237,290		276,947	237,290	276,947
	£3,221,190	£3.	603. 197	£4,362,326	£4735,615

REDITORS: Amo	unts falling d	ue after more	than one year
			Group		School
		2020	2019	2020	2019
		£	£	£	£
Bank loans	(note 18)	6,113,164	6,635,583	6,113,164	6,635,583
Deferred income	(note 19)	917,312	1,220,881	917,312	1,220,881
		£7,030,476	£7,856,464	£7,030,476	£756.464

		2020		2019
		£		£
Within one year		813,315		800,145
Within 1 to 2 years		378,542		458,494
Within 2 to 5 years		397,326		551,286
Overfiveyears		141,444		211,101
	£	1,730,627	£	2.021.026

he balance representsthe accrued liability under the co ere:	ntracts.	The movemen	ts du	ring the yea
Balance at 1 September 2019		2,021,026		1,888,164
New contracts		902,766		1,466,878
Amounts accrued to contracts		2,923,792		3,355,042
Amounts utilised in payment of fees to the school		(1,193,165)		(1,334,016)
Balance at 31 August 2020	£	1,730,627	£	2021.026

	At I					Transfers	Transfers	At 31
	September	Incoming		Resources		between		August
Fund name	2019	Resources		expended			funds	2020
	£		£		£		£	£
William Smith Fund	495,446		236,794		-		-	732,240
Geoff Foley Innovation
and Creativity	14,880		-		(20)		-	14,860
Other	68206		2495		(295)			70,406
Total	£ 578532	£	239.289	£	(315)	£	-	£ 817,506
GROUPAND SCHOOL	(2019 comparative)
	Ati						Transfers	At31
	September		Incoming	Resources			between	August
Fundname	2018	Resources		expended			funds	2019
	£		£		£		£	£
William SmithFund	433,196		154,660		(92,410)		-	495,446
GeoffFoley Innovation
and Creativity Other	14,900 6,645		- 61,342		(20) (3,106)		- 3,325*	14,880 68,206
Total	£ 454,741	£	216,002	£	(95,536)	£	3,225	£ 578,532

UNRESTRICT	ED FUNDS
GROUP
	Atl											At31
	September		Incoming	Resources		Gairis/			Transfer			August
Fund name	2019		resources	expended		(losses)			between			2020
									funds
	£		£	£		£			£			£
General
General	£ 17,117,746		18,229,603	(18,419,541)			6,093			-		£16,933,901
Total	£ 17.117.746	£ 18.229,603		Ji419,541)	£		6.093	£		-		£16,933,901
SCHOOL
General
General	£ 17,108,819		18,115,811	(18,272,887)			6,093				-	£16,957,836
Total	£ 17.108.819	£	18,115.811	£(18,272.887)	£	f,Q93		£			-	£16,957,836

ALLOCATION	OF NET ASSET	S B	ETWEEN F	UN	DS
2020
GROUP
					Current		Current		Long term
Fund name	Fixed assets	Investments			assets		liabilities		liabilities	Total
	£		£		£		£		£	£
Endowed	3,624884		-		1,039,766		(106,028)		-	4,558,622
Restricted	-		-		817,506		-		-	817,506
Expendable endowment	-		-		355,117		(120,342)		-	234,775
Unrestricted	19,451,196		2,277,010		5,230,991		(2994,820)		(7030,476)	16,933,901
Total	£ 23.076080	£_22.7LQ1Q		£	7443.380	£	(3.22jjQ)	£	(7030,476)	£ 22,544,804
SCHOOL
Restricted	-		-		817,506		-		-	817,506
Unrestricted	19441 .866		2,277,012		6,631,760		(4,362,326)		(7,030,476)	16,957,836
Total	£19441866	£	2.277.012	£	7.449.266	£	(4.362.326)	£	(7.030,476)	£ 17.775.342
2019
GROUP
					Current		Current		Long term
Fundname	Fixedassets		Investments		assets		liabilities		liabilities	Total
	£		£		£		£		£	£
Endowed	3,624,884		-		1,039,478		(128,969)		-	4,535,393
Restricted	-		-		578,532		-		-	578,532
Expendable endowment	-		-		355,040		(110,654)		-	244,386
Unrestricted	19,401,297		2,277,292		6,659, 195		(3,363,574)		(7,856,464)	17. 117.746
Total	£23,026,181	£	2,277.292	£	8.632.245	£‘	(3.603.197)	£	(7.856.464)	£22.476.057
SCHOOL
Restricted			-		578,532		-		-	578,532
Unrestricted	19,389,635		2,277,294		8,033,969		(4,735,615)		(7,856,464)	17,108,819
Total	£i.89,.535	£....Z22Z294		Lj6i2,5Oi		(4,735,6152		£	(7856.464)	Li7.687.351

		2020	2019
			(Restated)
		£	£
Decrease in cash in the year		(1,230,892)	(147,266)
Net oan repayments		509,362	570,910
Net advance fees movements		290,399	(132,862)
Change in net debt		(431,131)	290,782
Net debt at 1 September 2019		(1,819,594)	(2,110,375)
NET DEBT AT 31 AUGUST 2020	£	(2,250,725)	£ (1.819,593)

ALYSIS OF CHANGE IN NET	DEBT
	Netdebtas at			Net funds as
	1 September		Cash	at 31 August
	2019		Change	2020
	(Restated)
	£		£	£
Cash at bank and in hand	7367286		(1,172,824)	6,194,462
Cash at investment manager	82,039		(58,068)	23,971
Loans	(7247892)		509,362	(6,738,530)
Advance fees scheme	(2,021,026)		290,399	(1,730,627)
	£(1819.593)	£	(431131)	£(2.250,724)

perating leases as follows:
		Other operating		leases
		2020		2019
		£		£
GROUP
Within one year		85,479		89,943
Between one and five years		89,020		174,564
Over 5 years
	£	174.499	£	264,507
SCHOOL
Within one year		61,606		66,069
Between one and five years		70,529		132,135
Over 5 years
	£	132.135	£	198,204

FINANCI	AL INSTRUMENTS
		2020	2019
		£	£
Group
Financial	assets measured at amortised cost	7,202,389	8,363,746
Financial	liabilities measured at amortised cost	6,230,653	6,581,750
Financial	assets measured at fair value	2,277,010	2,277,292

The group’s income, expense, gains and losses in respect of financial summarised below:	instruments ar	e
	2020	2019
	£	£
Interest income and expense:
Total interest income for financial assets held at amortised cost	86,600	74,921
Total income for financial assets held at fair value	29,119	44,542
Total interest expense for financial liabilities held at amortised cost	198,337	236,256

		2020	2019
		£	£
School
Financial	assets measured at amortised cost	7,335,847	8,489,323
Financial	liabilities measured at amortised cost	7,426,543	4759,122
Financial	assets measured at fair value	2,277,008	2,277,292

	2020	2019
	£	£
Interest income and expense:
Interest income	86,600	74,921
Total income for financial assets held at fair value	18,153	14105
Interest expense	197,930	236,256

			Expendable	Permanent
	Unrestricted	Restricted	Endowment	Endowment	Total
	Funds	Funds	Fund	Funds	2019
INCOMEAND ENDOWMENTS	£	£	£	£	£
Charitable activities
Schoolfees receivable	19,322718			-	19,322,718
Ancillary trading income	1,417,395			-	1,417395
Other trading activities
Activities forgenerating funds:
Non-charitable trading	148,509			-	148,509
Other incoming resources	52, 168			-	52,168
Investments
Investment Income	92,026	-	5,821	21,616	119,463
Voluntarysources
Donations	154,338	216,002	-	-	370,340
Total income	21,187,154	216,002	5,821	21616	21,430,593
EXPENDITURE ON:
Raising Funds
Non-charitable trading	200,633		-	-	200,633
Financing costs	242,847		2,272	8,438	253,557
Fund-raising costs	211,001	-	-	-	211,001
Charitable activities:
Schooloperating costs and
grant making before exceptional
write-offcosts	19,540,840	95,536	18,745	-	19,655,121
Exceptional write-offof fixedassets	633,774	-	-	-	633,774
Total charitable activities	20,174,614	95,536	18,745	-	20,288,895
Totalexpenditure	20,829,095	95,536	21,017	8,438	20,954,086
Netinvestmentgains/(Iosses)	31,699	-	10,789	40,061	82,549
NETINCOME/(EXPENDITURE)	389,758	120,466	(4,407)	53,239	559,056
Transferbetween funds	(3,325)	3,325	-	-	-
NET MOVEMENT IN FUNDS	386,433	123,791	(4,407)	53,239	559,056
FundbalancesatlSeptember2ol8	16,731,313	454,741	248,793	4,482,154	21,917,001
Fundbalancesat3l August2019	17,117,746				22,476,057