2021-08-31-accounts

SEDBERGH SCHOOL ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 August 2021 Reglstered charity: 1080672 Company number: 03946280 SEDBERGH SCHOOL Founded In 1525

SEDBERGH SCHOOL ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 August 2021 CONTENTS Page Chairman's Statement Trustees, Annual Report (Governors. Report) Background to Sedbergh School Charitable objects ObjectFves and artivities Strategic report Public benefit activities and community 5UPPOrt Strategic Plan 2020-25 Financial review Policles Environment and sustainability Statement of compliance Post balance sheet events Structure. governance and management Group structure and relationships Reference and administrative details li 13 14 15 15 17 18 Statement of Governors. Responsibilitie5 Independent Auditorfs Report Consolidated Statement of Finanual Actiwties 20 21-23 24 Balance Sheets (Consolidated and Schooll Consolidated Cash Flow Statement 25 26 Notes to the Accounts 27-52

SEDBERGH SCHOOL CHAIRMAN'S STATEMENT for the year ended 31 August 2021 Young people have had a raw deal durlng the pandemic. Their education has been disrupted, and their life at school and in further education has been put on hold for extended periods. At the same time, the mental health of many young people has been impacted by social isolation and other adverse consequences of the pandemic. AnticSpatin8 these challenge5. and rnTtigating their consequences for our pupils at Sedbergh. has been a constant priority for my Board and for the leadership of the School. Our stsff have worked tirelessly to 5U5tain the quality and breadth of the Sedbergh education and the pastoral care and support for all our pupils, both in School and, as necessary, at home durin8 government-mandated school dosures and self isolation. l am hu8ety proud of whal the Sch(￿. the stsff and the puplls theMSe￿e$ have achieved in this time, in spite of the pandemic. And l am grateful too, for the immense support we have recelved throughout this period from parents. from the Old Sedberghian Club and our alumni. and from the wider Sedbergh School communltv. An important measure of what has been achieved is the record pupil numbers in the School at the start of the new school year in September 2021. Fartors that have brought newfamilies to Sedbergh include the quallty and contlnulty of our education and pastoral care duringthe pandemic. the breadth of our educatlonal provislon and extracurricular activities, and the healthy environment and lifestyle at Sedbergh. The strength of the pupil roll in both the Senior School and at the Prep School is a clear demonstration of the qualty and resilience of a Sedbergh education. and of the future opportunity that this engenders for our pupils and our stsff. As a Board, we are working very closely with the executive team to ensure Strategic and operational resilience to uncertainty and potentlal turbulence in global markets and in the UK economy. We a150 remain alert to both challenges and opportunities in our local market. We are committed to a more sustainable world and we accept the challenge to advance our focus on the environment in all that we do. Technolo8y and di8ital media impacts increaslngly on our everyday lrfe. We want future generations of Sedberghians to be ready for the accelerating pace of thange in technology. both at home and in the workpla￿, and we are developing our curriculum and our facilities to sustain this ambition. At the same time we wlll not deviate from our primary responsibility to ensure our pupils have the necessary lrfe skills to be Suc￿sSfUl and happy individuals. with a clear moral compass. Outside of School. we knowthat Itfe for many In Sedbergh and the surroundin8 area has been very drfficult duringthe pandemlc. The School ha5 therefore sought to scale up its community outreach programme, Sedbergh Gfves Back. over the last two years. A variety of projects are supported each Thursday afternoon during term time as part of the voluntary service programme, and once a year all the boarding houses undertake a full da*s work for charities or l¢xal communlties. The School was recognised for its community work in 2021, winning the Community Invofvement Award at the In-cumbria Bu5inessAward5. l am dellghted to have had the opportunity to Nrystt Sedbergh more in 2021 than in the previous year, and to meet more puplls and parents, as well as School staff. One event during the year stands Out in my mind. In October. we celebrated twentyyears of gir15 at Sedbergh. and the transformation they have helped bring about, In the life of pupils and in the culture and environment of the School. It Was wonderful to see so many confident and successful young women returning to the Sctrwx)I to celebrate this annNersary and to meet old friend5 and many of the teachers that helped shape thelr young lives. l am constsntly grateful to the leadership of the School at that time. for the insplred decision to admit girls. Next yearsees another important annNersary in the historyof glrls, edutation. 2023 isthe two hundredth anniversary of the founding of Casterton School by the Reverend Carus Wilson. to educate the daughters of clergy. Casterton became part of Sedbergh in 2013, and rts impressive campus is now the home of our Prep School. Covid permittlng, we will provide opportunities for Casterton Old Girls to visit their school next year. and to ￿lebrate this important nniversary.

SEDBERGH SCHOOL CHAIRMAN'S STATEMENT for the year ended 31 August 2021 I would like to reiterate my thanks to Andrew Fleck. who retired at the end of August 2021 after eleven years at the helm of the School, initially as Headmaster and latterly as Principal. Andre￿5 vision and ambition for the School has shaped the Sedbergh of the twenty-first century and has ¥Jnderpinned our continuing progress and success, and his strategy and management capability have helped us navigate some ofthe greatest opportunities, and also the biB8est challenges, the School has ever faced. Through his leadership, we have seen strong pro8ress by both Schools on academic standards. in the quality of the Common Room, in the range of extracurricular actNlties and in the culture and ethos of the School. But to my mind the things that best demonstrate Andre￿5 achievements at Sedbergh are that. at the end of his tenure, we have a School full of happy, confident young people who are a credit to the School, and a first rate Common Room, full of great teachers who love Sedbergh. Dan Harrison has taken over leadership of the whole School. a5 Headmaster of Sedbergh Sthool. I have worked closely with Dan since my appointment as Chairman, and l am delighted to have such an able and experienced Headmaster to lead the School. Finally, I would like to pay tribLtte to Sir Roger Gifford. Old Sedberghian and Governor of Sedbergh School, who sadly died last year. Rogerf5 wise counsel arKI his friendship is great￿ missed by all of us. I firmly intend to spend more time in Sedbergh in the coming year. I look forward to the opportunrty to meet more pupils and their families, and to thank in person the staff of the School for all the great work that they do. Richard Gledhill Chairman Sedbergh School

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS. REPORn for the year ended 31 Au8USt 2021 The Board of Governors of Sedbergh School presents itsAnnual Rewrt and Consolldated Flnancial Statements for the vear ended 31 August 2021 and confim) that they comply with the requirements of the Companles Act 2(M)6. the Charltles Act 2011 and ihe Charities SORP {FRS1021- Second Edition. 8ACKGROUND TO 5EDBERGH SCHOOI Sedbergh School was founded in 1525 and received a Royal Charter from King Edward Vl in 1551. The Sensor School I'senior School'l is based in the market town of Sedbergh in the Yorkshire Dales, and the Preparatory School I'Prep Schoofl and Mulberry Bush nursery ITr Mulberry Bush'l are located nine miles away in the village of Casterton. The two schools and the nursery {together 'the School'l provlde educatlon to boys and Eirls bètween the ages of six months and 18 years. The Senior School is boarding, with nine boarding houses. The p￿ p School has a mix of both boardlng and day puplls. CHARITABLE 08JEcrs The object of the School is to advance education by carrying on in Great Britain a school or schools at which infants, children and pupils may obtain education and instruction in acadernic. sportin& musical. cultural. scientific. technical. vocational. social and commercial subjects. activities and crafts of every description. OBJECTIVES AND ACTIVMES The mission of the School Is.. To nurtureeochsedberghionso thottheyreolisetheirfvllpotentiolinouniqueondrigomusenvironmentof excellence, charartensed bycommitted endeavour, morolpurpose ondintegrity of contribution. In particular. the School alms to- Identify and develop the potential of pupils in a variety of areas- academic. artistic, cultural, sportin& personal, social and spiritual. help them to obtain the best POS5ible qualifications,. and prepare them for the opportunities. responsibilities and experiences of life: Provide a welcomln& frierbdty and sUPPOrtive environment which recognlses the worth of each individual; 3. Provlde a fulfllllng worklng environment for both teachirE and sUPPQrt Staff. and encourage thelr development; 4. Liaise closely with the parents of Its pupils and encourage them to share in the lrfe of the School and the house: S. Work responsib￿ within its environment and community: and 6. Attract pupils from a wide ran8e of soual arml financial bxkgrounds. Progre55 in delivering our aims is summarised in the following strategic report.

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 STRATEGIC REPORT Achievement ind perfomiance The academic year was significantly affected by the CIMd-19 pandemic, with the Closure of school premlses aeross the Unlted Kingdom in January 2021 for almost all of the Lent Term. Nonetheless the School sustained continuity of educational provlsion and extra-curricular actmties throughout the year and achieved excellent results in A level5. 8TECs and GCSES, in the context of previou5 years and given that the School is nor+4elertive. Senlorschool The Senior School began the year with 531 pupils12020= 5541 and finished the year with $47 pupils. The small decline in pupil numbers relative tothe prloryearwas primarily dueto the pandemic. Recruitment activlty continued through the year, wfth record numbers confirmed for MichaelmasTem12021. buoyed bythe School'5 performance during the pandemic. A level and GCSE re5ultswere based on teacher a55essed grades, thatwere produced overthe SummerTemifollowing rlgorous process of assessment. After the grades had been submitted to the examination boards both the grades and assessment evidence were external￿ verified by the boards. Sedbergh's 105 A level and BTEC candidates achieved excellent results overall. with a 100% pass rate across all subjects in year 13. Impressively, 50.0% of pupils achieved A'.A or Di'.Di grades12020: 45.8%). and 90.0% of all results were A C or Di M12020.. 92.6%). On the basis of these results, 90 pupils gained 2021 entry to their firm or insurance choice of university, with a further six entering via clearing. The value-added score per pupil averaged 40.8212020.. +0.721. 115 year 11 pupils sat GCSES and also achieved outstanding results.. 59% of grades were 9-712020: 49%). with 97% of grade 4 or 8bove12020.. 95%1. On average each pupil achieved 9.1 passes at grade 4 or above. and 16 pupils achieved an average of 8.5 or higher per subject. This set of resuks showed an average value-added score of +1.2112020.. 40.781. The School has prioritised the continulty, quallty and breadth of oureducational provislon duringthe pandemlc. When school closures were rnandated by the Government in ear￿ January, we were able to swlt¢h Immediately to a comprehensive programme of remote learnin& building on the success of our remote leaming in the previous summer. A combination of 'Daily Briefin< emails and regular, on-line meetings with tutors and Housemasters and Housemistresses helped to keep the pupils engaged and to ensure the quality of our remote education and pastoral care. We received excellent feedback from both pupils and parents during this thallenging period. The Summer Term Saw a return to comwltive sport Indudlng a number of sports normally undertaken in the Michaelmas and Lent Terms. This included competitNe rugby at all levels, with fixtures against other schools, and the Wilson Run which took place in June. albeit as a closed event with only pupils in attendance. A full Sport5 Day wa5 held in early July with tug o, war and Westmodand & Cumberland wrestlin8 included in the programme. Muslcal activity was very limited during the periods of remote learnin& due to govemment restrittions surrounding choirs and ensemble5- however individual instrumental lesson5 continued on-line. In the second half of the Summer Terrn the Chapel Choir led worship in weekly Chapel services. and the Wilson Run concert was held outside, at the Cloisters, on the day of the race. Preparatory khool The Prep School began the year with a roll of 169 pupils12020: 1781. induding 51 new puplls. Again. these numbers were encouraging during a time of economic drffiCU￿ for many. Llke the Senlor School, continuity of hl8h quality educational provlslon has been a priorlty for the Prep School. Durlng the national lockdown in Lent Term 2021, all pupils received INe on-line lessons. wlth a small cohort of key worker

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 chlldren attending In-person lessons in the School. The weekly programme was amended to devote greater time to numeracy and literacy. and three'drop down daw were provided full of artNities away from the screen. Restrirtions as a result of Covid-19 affected school sport throughout the year, wlth no flxtures taklng place until Summer Term 2021. Meanwhile the School focussed on developing pupils. skills. through games lessons and in- School clubs for runnin& netball, swimmin& cricket and tennis. Riding lesson5 continued to be popular. In the Summer Term. there was a return to training and sporting endea¥ours induding athletics, cricket and rounders. The pandemic meantthat there were no live musical or dramatic pÈrforniances in the Michaelmas or Lent Terms, but innovative alternatives enabled music and drama to continue in the Prep School. Video recordings were made of the pre-prep nativity performance and a production of Jack & The Beon Stolk by years 3-5, and other concerts ma(ie up of recordings of Indlvldual perfomance by pupils were streamed. LAMDA training and examinatlons continued with almost 50 partiopants, and 75 one-tctrone music knns took place each week. The Mulberry Bush The Mulberry Bush Nursery at Casterton continued to provide first class nursery care and educatlon to chlldren aged slx months and above. Numbers varied throu8h the year, averaging SO per week. The Nursery remalned open for the children of key worker5 during the second national lockdown. Inspertlon5 There were no inspections at either School durin8 the year. Mitigating the financial impact of C4>vi&19 The Board approved significant fee reductions for all pupils and in particularfor boarders when the School was dosed and remote learning was necessary, resulting in a signrficant loss of income. In parallel, a programme of cost savings was implemerted, taking into t(Inshderatlon the antlclpated reopenlng of the campuses and the need to ensure operational capability was maintained. Operational budgets were reviewed, reduced or frozen, making considerable savings in the financlal year. The School also beneflted from the Government's Coronavlrus Job Retention Stheme. Non-urgent capital projects were deferred where appropriate. PUBUC BENEFtr AcYivmES AND COMMUNrrY SUPPORT Hardshlp Fund Financial hardship as a result of the pandemic threatened the continuity of education of a number of pupils at the School, with many parents experiencing financial challenges. Throughout the year the School has maintained a programme of communication wtth parents during this drfficult period. and has continued to offer support to a number of familles directly and through The Hardship Fund launched in the previous year. This fund has distributed £90,OOOto a number of families over the last twoyears. Again. we are very grateful to parents. Old Sedberghians ?nd others who gave so generousty to thls fund. Communlty support For several years the School and its staff and pupi15 have 511PPOrted a range of community initiatives in Sedber8h. most recently through the Sedbergh Gives Back programme. These include supporting a local Community 'meals on wheels, service and a shopping and delNery service for mobility impaired and dinically vulnerable people. Allied with the weekly voluntary service programme and the annual house community service day forming the backbone of the outreach programme. The community work of so many pupils was officially recogntsed in 2021, when the School won the Community Involvement Award at the In-cumbria Business Awards.

SEDBERGH SCHOOL TRUSTEES, ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 Au8USt 2021 Publlc benefit The School ha5 an excellent record of facilitating access lor children from a wlde range of social and financial backgrounds, including the most disadvantaged, to provide them wfth the opportunity to benefft from the full breadth of a Sedbergh education with appropriate bursary and Scholarship assistance. provided they meet the School's minimum entry requirements. Parents who meet the relevant crtteria are supported with means tested bursary awar(is within the funds available. Bursary awards are made on the basis of pa￿nts1 means or to relieve hardship where a pupil's education and future prosperts would otherwse be at risk. In assessing means. a number of factors are tsken into conslderation including family income, investments and a55ets, together with family circumstances. as the School seeks to ensure opportunities are given to pupils across the full spertrum of affordability and social background. Means tested SUPPOrt is reviewed on a periodic basis to identify any significant change in financial circumstance. Governors review both School policy and actual avRrds. The policy, which must fit within the framework of what the School can sensibly afford, Is designed to provide the widest possible access including to those who fall withln the definition of low income households. The Michael Robertson Scholarship Fund. a separate tharity which doe5 not form part of the School group. has continued to provide income to support bursary awards, which totalled £0.14m in 2020121. The Governors recognise thi5 significant contribution and express thelr gratwtude to the Robertson famity and appreciation for the work of the Trustees in generating income for the School. In addition. the Roger Lupton Scholarship scheme. funded by the Sedbergh School Foundation. provides fully funded opportunities to children whose families otherwise could not consider a school such as Sedbergh. In 2020121 there were five Roger Lupton Scholars in the School receiving support to the value of £0.12m. Includlng Michael Robert50n and Roger Lupton Scholarships, thls year the School provided bursary support to 148 pupils amountiri8 to £1.02m which equates to 5.3% of gross fee income. The School has established a scholarship scheme to provide free places to two pupils from the local state school. which has no sixth forrn, to attend Sedbergh for years 12 and 13.. the first pupils under this scheme entered the School in MichaelmasTerni 2021. Equal opportunlty The School is committed to the provision of equal opportunitie5 and an environment that is free of any form of discrimination. Reasonable adjustmentsare made to meet the needs of pupils and staff who are, or become, disabled. STrATEGIC PLAN 202fy2025 The khool's Strategic Plan is for the perlod 2020-2025. The key objectives of the Plan are summarlsed below, together with a summary of progress during the year and fvture plans. EMplO￿bIlity and educatlon for the future To deliver • pio8ramme of study whlch wlll e¥wlp puplls to use tethnolo8y safely and creatively. and to solve problems In such a way as to enhance thelr employment prospects. We wlll also dellver new currlculum development In both Schools. In the Prep School further investment in technology has enabled children from year 2 to year 8 to explore Robotics Computer Lan8ua8e Trainlng and Computer Aided Design. with signrficant further investment planned In ICT.

SEDBERGH SCHOOL TRUSTEES, ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 In the Senror khool, new subjects hève been introduced to the curriculum including Computer Science. A longerterm strategic review of the curriculum ha5 proposed developments in Design & Technology, Global Perspectives. Engineering and Infonnatlon Technology and Computer Science, in parallel with planned developments In the School's facilities. In the summer of 2021, 220 pupils were awarded thelr A level. BTEC or GCSE qualifications. Sixth form results were in line with expectations. The Schoofs GC5E results were the best in retent history. There were many outstanding individual achievements within these GCSE. A level and BTEC results. The School has stronE links with Oxbridge Colleges and other universities and has an outstanding programme of preparation for entry to Oxford. Cambridge and other elite universities in Britain. Europe and America. SÈdbergh has also maintsined its international reputation for sporting excellence, developing a broader range of sports available to pupils, combined with the provision of outstanding music and drama. Manage arti¥ely the wellbeing and mentsl heafth of pupils •Thd staff To ensure there is an ethos arKI environment which takes the mental health of pupils and staff seriouslyy and in whlch It Is mana8ed and monltored artlvely wlth stsff and puplls belng de¥eloped and supported, alon8slde developlngthe teachln8 of PSHE and RSE bytutors. Pupll and staff well-beln8 T*4111 contlnueto be actlvely promoted and ill-health rnanaged 5wifU¥ and appropriately to make the SdN￿ an attractive place to live, work and leam. A range of initiatives has been employed to raise awareness and build resilience in our pupils including mental health awareness, mindfulness. y￿lIbeIn& prevention and reporting of bulSwn& online safety and extensive use of confidentlal Surveys wlthin the pupil bo(ty. The School Counsellor continues to be an integral part of the School's pastoral provision. Throughout period5 of lockdown the Senior School engaged with pupils using the Daily Briefing emails, providing variety of extra-curricular offerings, coupled with regular meetings with Tutors and HousemasterslHousemistresses. Lessons were deliVe￿d via Microsoft Teams vmth a shorter School day providing time in the afterncrf)ns for exercise and Daily Challenges away from the computer screen. Regular surveys of pupil well-being were undertaken and artion take a5 appropriate where concerns were raised. Similar surveys were undertaken at the Prep School in addition to twlce-daily tutor meetings. Safeguarding policy and practice remains at the forefront of staff and Governortrainin8, With regular a55essment and review at all levels of daily operations. This training includes all staff. including those working withln the trading subsidiarles. Staff welfare remaSns paramount and work has commenced on a full review of systems and Pfattlce to support wellbeing in the workplace,. the staff intranet includes access to counselline services and a suite of tonfidentlal health and wellbeing support services. Sust•lnablllty To re¥iew e￿ry aspert IA our operations to eThsure that we operate w • sustsin•ble basis including dellverlng tsrzet reductlons In energy consumptlon and cakljon emlsslons. Puplls wlll be Involved In a range of Inltlatlves to deepen thetr understanding of dimate thange arHI other envinxwnental issue5.

SEDBERGH SCHOOL TRUSTEES, ANNUAL REPORT {GOVERNORS' REPORT) for the year ended 31 August 2021 Investment in energy redurtlon measure5 as part of the planned refurblshment work of the campus has commenced and we continue to closely monitor our carbon footprlnt. Pupils have also been engaged in a range of Initiatives to raise awarenes5 and invofvement in all aspetts of sustainability and the environff*nt. The School recognises our corporate and social obligations to set clear targets to reduce 8reenhou5e ga5 emissions with a range of extensive measure5 and investment planned overthe nextfive years. They include plansfor extenslve boarding house modernisation. Development of land and assets To progress plans for a new teaching facllltyto supwt furtlw ¢urni¢ulum development In deslgn and Information technolo8yi lo modernlse elements of the boardlng house acwnmodatlon and to develop addltlonal sports facllttles. Plans are well advanced for a new Technology Centre aligned to the new curriculum development programme. with a full planning submission expected in the Summer of 2022. A planning application ha5 been submitted to provide additional all weather sports P￿cheS In recognition of the importance of hockey as a major sport and to provide a(hJitional capacity for a range of general sports. Work to refurbish boarding houses and 5th￿1 buildings on the Sedbergh campu5 is being planned. which will Incorporate energy saving measures. Improvements to the sports hall and music facilities on the Prep khool campus are also under conslderation. Overseas schools expanslon To support the development and academlc success of Ror¢ Qlao Sedber8h School. Futhou and •)pen additional overseas schools under licensln8 and service agreements Rong Qiao Sedbergh S¢hool. in Fujian Province. China opened in September 2018 with 116 pupils. world-cla55 facilities and a strong and experienced leadership team offering a blended British curriculum and compulsory Chinese curriculum in a bilingual school. The pupil roll is now 567 and is projected to exceed 700 pupils by September 2022. Seilbergh School Intemational Limited continues to benefit from an outstanding investor partner In the Rong Qiao Group based in Fujian province. The Rong Qiao Group plans to seek further opportunities for expansion of their educational division within mainland China in future years. Sedbergh School International Limlted continues to explore opportunities for further schools abroad as it seeks additional investor partners and local operators to provide a unique SedberBh education around the world. NoTrfee based revenue generatlon To dellver our targets for non-fee based revenue streams through a range of commeKlal ventures undertaken bv our commerdal subsldlarles. Sedbe1￿ School Internatlonal Umlted and 5edber8h School Developments Limited. Whilst the pandemic prohibited some of the planned fee generation activityfor 2021. Sedbergh School Developments Llmited wa5 able to successfully deliver a full programme of res+dential courses ¢)ver the summer, as well as webinars and outreach actlvity with schools and clubs.

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS. REPORT} for the year ended 31 August 2021 Flnandal securlty, hKludln8 fundralsln£ To deliver lon8 temi finandal sewrlty through effeclive Commercial risk management, dellvery of our medlum twm financlal goals and support of our afflllated or8an15atlon% Indudlngfundralsln8 and alumnl developrneTht. The charity monitors financlal progress aeross both Sch¢Jols and its commercial subsidiaries a8alnst a detailed five year rolling financial plan to deliver our lon8-term financial goals which inclLSde- generating additional liquid reserves funding future capital expenditure strengthening our competitNe position in our UK and global markets. Financial performance against defined milestones IS subject to termly review by the Executive Committee and Board of Governors. Dynamic risk assessment measures are in place for each operational unf( induding the commercial subsldiarles. and strategic risks are Considered and reviewed by the Senior Leadership Team on a monthly basis and by the Board of Governors on a termly basis. Our fundraising activities are carried out through the Foundation. which has continued to provide support via the pandemic Hardship Fund, the Roger Lupton Scholarship scheme and ad hoc house-based project5 throughout the School. The Foundation has an ambitious fundraising plan to SUPPOrt the development of both Schools a5 part of the quincentenary celebrations in 2025. The School also continues to be well supported by its alumni via the Old Sedberghlan Club. FINANCIAL REVIEW The financial year ended 31August 2021 was.forthe secondyear. dominated bythe impartof the pandemic, resulting in the closure of the Senior School for a period of two weeks in the Michaelmas Term and both the Senior School and Prep khool for seven weeks of the LentTerm.The physical closure of the School necessitated the provision of remote learning and the associated redurtion in fees resulted in a second year of105ses to charitable activity income. The increase in school fee income of £0.25m reflerted a reduced level of concessions. The loss of fee income was offset in part by a grant Under the Coronavirus Job Retention Scheme amounting to £0.50m {2020: £1.03ml, Sl8nlflcantly lower than in the previous year due to the reduced period of furlough and number of staff involved. Operating costs were redU￿d where possible, although the long-temi prosperity of the School was balanced against the need for short term cuts. In particular, the School needed to prepare for a significant increase In projected pupll numbers in the Michaelmas Term. These fartors. together wfch Inflationary pressures, resulted in increases in operating costs totalling £0.43m. Trading intome improved on the prior year by £0.27m p￿dOminatelY due to the increased number of short courses running,. however the Tens tournament and the International Summer Schoo15 programme were cancelled for the second year due to the pandemic.

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT {GOVERNORS' REPORT) for the year ended 31 August 2021 Major movement to income and costs compared with prior year £'o Increase • t)ecrease • Total 200 250 iioi 12001 14001 16001 13981 15261 IL.0001 14301 18471 School ￿eS Othpr irK C05t inrrea5es Net exp￿dI1¥￿_ Ti•JbTiDCLwne CJR58rtnt Net empenditure... I￿¢)Me Total income remained in line with the prior year at £17.9m. reflectlng sSmllar levels of fee reductions as result of the School dosure and the shift to remote learning. INCOME S¢hool fees 85% , Tradlng turnrJ¥er 5% . Investmentso.2% Pupil numbers lon a full time equivalent ba5151 across both Schools fell by 2% primarily due to the pandemic; however Nursery pupils increased. Successful retention of pupils during the pandemlcls attributed to thesupport of both parent bodies, the quality ol our remote learning provision and the dedication of our teaching Staff. Donatlons & le8acle$ 6.3% Other IrKome 3.6% Concessions as a percentage of gross fee income have reduced by 1.2% to 23.3% 12020- 24.5%) overall. notwithstanding the increased level of means tested support. Short course income recovered in part due tothe provision of more courses, but the International Summer School did not take place. The Coronavirus Job Retention Scheme provided £0.5m of Income compared with £1.03m in the prlor year. Expenditure Total expendlture increased by 2.3% to £18.7m12020: £18.3ml. StronB Cost control measures were in place during the year. and the School was able to respond swiftly when the Government mandated school closures. with operational budgets frozen or retluced. EXPENDITURE Trading •Ad fiAan¢e Costs 6% , Teachingc05ts 36% Boardir4 htyjse. staff and medical ¢¢>st$ 20% Premises costs 2396 Boarding house costs increased to 21Nof the totalcost b85e12020- 18%) due to additional Cowd-19 measures. Includlng the provision of quarantine houses to enable overseas pupils to return to School arbd comply with the Government rules. and also due to increased food costs. •Management and admlnistratlon 11% fjrants. awards and prtsES 1% •PubliLlty 3% Staff costs remained in line with the prior year at £11.5m12020..£11.5ml. Sawngs from the prior year redundancy programme were offset by the annual pay award. io

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 Key flnanclal performance Indlcators Key finan¢lal performance Indicators used by the Sch¢)ol include the followin8: 2020 2019 21 ￿20 710 723 41.0% 41.2% 52.9% 46.7% Pupil numbers (adjusted on a full time equr¥7lent basis) Teachlng staff costs as % of net fees Premises and boarding costs as % of net fees Non-financial performance indicators include exam results as set out under the Achlevement and Performance section of this rewt. Flnancl•l posltlon Operating activities generated £0.09m of cash. refie¢tingt￿ signlficant loss of Income due to the pandemic together with increased costs. Nevertheless the School continued to Invest. Capital expendTture was £1.04m including the conversion of an existing building to provide a new slxth form centre. the ereètion of additional boarding capacity and significant upgrades to the lighting in the School Chapel, part￿ funded by generou5 donations from the Foundation. In addltion £lm of cash was invested in short temi deposits which can be easlly con¥erte(I back to cash. The School benefited from a capital repayment holiday on its loan amounting to £0.3m. The ¢)verall cash P￿lt10n therefore reduced by £2.CfJm. Net assets decreased by £0.62m to £17.Ilm12020: £17.73ml. Going conceTTh The Governors do not consider there to be any material uncertalnty about the School's ability to continue as a going concern, as set out in the accountine pollcies. Having reviewed the funding facilities available to the School together with the expected future cash flows. the Govemors have a reasonable expectation that the School has adequate reSoUr￿S to continue its artivitie5 for the foreseeable futu￿ and consider that there are no material uncertainties over the School's financial viability. Accordingly, the School has continued to adopt the going concern basi5 in preparing the financial statements. Net current liabilities increased to £3.35m12020: £0.89ml primarily a5 a result of increased fees received In advance relating to future years. the conversion of £lm of cash tofi¥ed asset investments and the impatt of the pandemic on operating cash flow. POLICIES Prfn¢lpal sour￿$ of fvndln8 The principal sources of fvndin8 for the School are fees. commercial intome generated by the subsidiaries. and bank finance Including medium term bank borrowings and a bank overdraft facility. In addition, the School receives sUPPQrt tor bursaries and capital programmes from the Foundation and other chartties and donors. Reserves The School policy is to invest retained surpluses to wpport the development of the khool. while ensuring that sufficient reserves are held to meet any contingencies as they arise. According to the Charities SORP definition, free reser¥es should exclude endowment and restrlcted funds and funds whlch can only be realised by disposing of fixed assets held for School use. On this narrow basis. the School has no free reserves but the Governors are satisfied with the School's position given the unrestrirted cash and unrestricted li

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS, REPORn for the year ended 31 August 2021 investments available, which at the end of the financial period amounted to £4.19m12020: £5.16ml alongside the overdraft facility of £2m. In addr(ion, the khool benefits from a portfolio of residential property totalling £5.6m. The Goverftors continue to monitor cash, investments and reserves closety to ensure that sufficient reserves are available to meet potential threats to future income. in particular from a deterioration in the economlc climate. Subject to this. it isthe intention of the Board to reinvest operational surpluses generated into khool improvements. Total funds of the School are £17.Im 12020- £17.7ml. whlch comprise: endovnnent funds £1.8m12020-. £1.8ml. restricted funds £0.8m12020.. £1.Iml and general funds of £14.4m12020.. £14.9ml. Investments The School's funds under management were valued at £4.6m as at 31 August 202112020- £3.4ml. The School has an underlyinE investment strategy of long term capfcal preservation with the objective of deliverin8 Posltive absolute returns with low volatility in capttal values. The funds are split between the CF Ruffer Total Return Fund and short term cash deposits. The School investment policy is approved by the Govemors and monitored by the Investments Sub-committee. The funds, performance was consistent Wtth this policy. Publi¢ benefft In setting objectives for means tested bUr￿ries. community engagement and s¢xh31 indushM. the Governors have had regard to the Charity Commission's guidan￿ on public benefiL Dlsabled persons The School is committed to providing an environmentwhich values and Includes all puplls. staff and parents regardle55 of their educational, physical. sensory. social. spiritual, emotlonal and cultural needs. It seeks to challenge attitudes about disability and accessibility, and to develop a culture of awareness. toleran￿ and inclusion. The School complles with all relevant legSslation relatin8 to disabled person The khool's policy requlres that disabled lob applicants would not be rejetted for a reason which relates to their disability,. job specifications are always used and selection criteria monitored to ensure that discrimination does not occur- and recruitment and selection procedures are adapted where possible to erisure that they do not dlsadvantage disabled job applicants. The School takes Steps to tryto enable an employee who becomes disabled to remain in employment. In consultation with the employee, adjustments to facilitste their retention will be considered. Employees with disabilitles are provided with opportunltles to develop full and rewarding careers on an equNalent basls to other employees with similar skllls and abilities. The Accessibility Plans for both campuses illustrate how the School plans over time to further increase accessibility for pupils. staff and visitors who have disabilities. The School aims to make reasonable adjustments to allow disabled pupils to accessthe education available, bearing in mindthe historit nature of its buildings and WId￿pread campuses. These Plans are reviewed every twelve months. Rlsk management The School maintain5 an UFFtO-date Strategic Risk Register whkh Identifies the n￿St slgnificant risks to ongolng operations of the School and to the delNery of Its strate8i¢ objertives. The register details the appropriate risk mitigation measures and Is reviewed on a regular basis by the senior management team and on a termly basls by the Governors. Underneath this sits an Operational Risk Register. which is also reviewed regularly by the senior management team. Governors have also reviewed the School's insurance cover to ensure that it is adequate. The princlpal rlsks to the School and the School's approath to mitigate the risk are as follows.. 12

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS. REPORn for the year ended 31 Au8USt 2021 Category Rlsk Prfndpal m1t18all￿ acllons Pandemlc Impact of Infectlon In the School and threat to the kal community. Pandemic working Eroup Review of policies ènd procedure5 Remote learning plans and staff training Cost contingency plan5 Bio security measures Inabilttyto provide all aspects of the Sedbergh education. including an enforced lockdown resulting in temporary closure of the School and resulting in loss of revenue. Additional costs arising from the pandemic. A failure to generate SLffticient cash flow to meet strategic objectives and minSmum cash generation requirements. Hnanclal and Economic Pupil fee forecasts Cashflows and reserves polScy Marketing strategy Monthly review of financial forecasts Loan facility review Capex programme review Contingenry plannlng Staff Inability to recruit and retain high calibre teaching and operational staff. resulting in staff shortages. Rewew of remuneration packages Succession planning Health insurance and health checks for key staff Loss of key staff or senior management team. due to illness or accident. Reputational damage as a result of an adverse incident at the School or in a subsidiary. Aeputatlon Appropriate policies4 procedures and staff training Communlcatlons plan In place Polhlcal Posslble politlcal, tsxation and regulatory changes (such as loss of charitable status, imposition of VAT on school fee5. loss of business rate relief. levy changes. increases in Teachers. Pensions contributiLN)s. ¢hanges in overseas pupil vi5a51. Regular revlew of forecasts wlth sensitivity analy515 Legallfinancial advice Advice from sertor bodie5 eg 15C and ISBA Contingency plans The School subsidiaries hold their own registers of stratwc and operational risks whid) are in a conslstent format to that of the School and are reviewed by their respectr¥e boards on a regular basis. ENVIRONMENTAL AND susfAINABILfTY The School recognises the importance of its enwronmental ￿SpOnsibl11t1e5, monitors tts impact on the environment and deslgns and Implements policies to redu￿ any damage that might be Caused. The School has followed the 2019 HM Government Environmental Reporting Guidelines. In addition, the School used the GHG Reporting Protocol- Corporate Standard and the 2020 UK Government's Converslon Factors for Companv Reporting. 13

SEDBERGH SCHOOL TRUSTEES, ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 2021 kwh Metric tonnes CO2e 2020 reststed* kwh Metric tonnes CO2e 5¢0 Ga5 Consum Transport Scope 2 Electricity Consumption TOTAL ti¢)n 8.558.419 256,240 1,564.650 63A07 ,108,280 196,985 1,490.869 36.798 1,817.333 10.631.992 385,874 2.014.331 1,716,512 10.021.778 400,188 1,927A56 Inten51ty ratlo Coze per pupl 2.837 2020 figure5 have been recalculated following a review of available records. 2.666 Whllst the khool has progressive ￿anS for redurtion in consumption and emissions. gas consumptlon In partlcular intrea5ed due to factors associated with the pandemic. Intenslty measurement All figures have been quoted in terms of carbon dioxide equivalent which signifies the amount of CO2 whlch would have the equivalent global warming impact. CO2e per pupil is the recommended metric for the sertor. Improvements In eneryy efflclency During the year improvements included= the full rePla￿rnent of the windows of one building to UPVC double-glazed with signlficant reduced heat loss- and renewal of the ￿ntral heating and hot water boilersystem in a boarding house. We continue to work on improvements in energy efficiency, In line with the School's Strateglc Plan. including.. increased education and action on recycling and energy use in our phTrrrital and remote offlce envlronments: insulation upgrade to properties as ne¢e55ary including exiensive investment in double glazlng In older bulldings; appraisal of renewable energy options and our future purchasing strategy: reduced energy usage by using more efficient products and materia15 when under80ing major repairs & renewals and capital projects including: lighting upgrades to LED equivalents upgrade to heatin8 Systems STATEMENT OF COMPUANCE The Governors have complied wlth their duty in regard to the matters in sertion 172111 lal-lfj of the Companies Art 20061.the ACYI. The Governors confirm that they have arted in the waythey Consider, In good faith, would be most likety to promote the success of the School and for the benefrt of its members as a whole. and in doing so have had ￿gard lamong5t other matters) to: the likely consequences of any decision in the long terni; the Interests of the School's employee5; the need to foster the School's busines5 relationships- the impact of the School's operations on the community and the enwronment; the desirability of the School maintaining a reputation for high standards of business conduct: and the need to act faidy as between members of the School. 14

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 Relatll￿ShIps The School is influenced ￿ our stakeholde￿. Induding our pupils and their families, employees, supplier5. the Government and our strategic partners. Our approach to all these parties is founded on the prlnclple of open and honest dialogue based on a mutual understsnding of needs and objectives. Relètlonshlps with parents are managed on an indNidual basi5. through those in close contart with them through the education journey. as well as key communication forums and interartion with staff on the School site and at events. During the pandemic. the School has implemented a range of additional and innovative virtual communications. to compensate for reduced in-person contact. The Schod. the Governors and senior employees participate In various education sector associatlons and groups. whSch give access to supplier groups and decision-makers, Government and other regulatory bodies. The School is a member of the Headmasters. & Headmistresses, Conference, the Independent Association of Prep Schools, the Independent khoo15' 8ursars' A550ciation and the Association of Goveming Bodies of Independent khools. Employee engagement The School continues to place a high emphasis on mutualty beneficial relationships with its employees, whom It regards as essential to the Sth¢)01's future success. There is a well-established system for re8ular ¢offlmunication wrth staff at all levels in both Schools. includin8 weekly departmental meetings, regular email updates, and fomial and informal staff presentations, as well as a full in-service training programme and an extensive social diary. Employees are encouraged to raise any issues or Ideas for improvement they may have with their Ilne manager or throu8h the whistleblowing arrangements. Staff at all levels are kept advised of the progress of the Sthool in comparison with our strategic objectives and development plans, including mattersthat may be pertinent totheir immediate interests. The Chalmian of Governors and a staff liaison Governor both attend Occasi￿al staff meetings. During the pandemic staff engagement and communicatlon has been enhanced. although much of thls has been done remotely. The School put5 great emphasis on providingequality of opw)rtunityfor all employeesand ensuringthat falr selertion and development procedures apply. The aim of policies in this area is to ensu￿ that no job applicant or employee receives less favourable treatment on the grounds of age. se& disability, marital status. colour. religion, race or ethnic origin, or is disadvantaged by conditions or requirements which cannot be shown to bejustifiable. In the event of an employee becoming disabled whilst In the Schwls employmenL measures will be taken to ensure that they Can contlnue In thelr empl¢)yment as far as is practical. POST BALANCE SHEEf EVENTS There have been no material post balance sheet events. sTrvcruRE, GOVERNANCE ANO MANAGEMEKr Govemlng document and consfftutlon Sedbergh School was endowed as a Chantry School In 1525 by Roger Lupton. Provost of Eton. and incorporated by Aoyal Charter of King Edward Vl as a Free Grammar School in 1551. It was reconstituted under the Endowed Schools Art of Ortober 1874. The Scheme. Provisions and subsequent amendments were repealed and reconstituted byTru5t Deed in July 1956. This Trust Deed was amended during subsequent years, the last amendment being in 1980. 15

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS. REPORT) for the year ended 31 Au8USt 2021 In 2000, the Sch¢)ol betème an incorporated charity (charity number 1080672, CoM￿nY number 39462801, entalllng the preparation of new governing instruments and the transfer of the tharivs assets, wtth the exception of the Scholarship & Prize Funds which are classified as permanent endowment. These Scholarship & Priie Furbds became linked charities with Sedbergh School, and are incorporated within the School accounts. The Governln8 Body The Trustees and Directors of Sedbergh School 1.the Companfl are the Governor5 of the School. Under the Memorandum and Articles of Association, all Members of the Company are Directors of the Company and Governors of the School. The membership of the Board of Governors consists of two Ex-officlo Govemors, one Representative Govemor and up to fifteen Ctroptlve G¢)vemors. The Representative Governor is appointed bythe Council of Stjohn'scollege, Cambridge. The two ex-officio members of the Board are the Lord ArchbSshop of York. represented by the former Archdeacon of Auckland, and Her Majest*s Lord.Lieutenant of Cumbria. The Co-OPtNe Governors are appointed by the Board of Governors for a specrfic period not exceeding three years initially. One third of the Cwptive G¢)vernors retire fr(ym office at each Annual General Meeting. A Governor 15 eligible for re-elertion for up to th￿e further terms of three years. up to the age of 70. The Charity has one gi>veming body for both the Senior School and the Prep 5¢hool. with separate registrations with the Department for Education for each site. Details of the G￿￿rnIng Body are provided on pa8e 18. Management arrangements During the year, the day-to-day running of both Schools was delegated to: the Principal. the Chief Operating OffKer, the Senior School Headmaster, the Prep School Headmaster and the senior management teams at the Senior and Prep Schools. The Principal and the Chief Operating Officer were responsible to the Board for the delivery of the strategic objectives set out in the strategic plan and attend the Governors, Board and relevant Committee and Sub- Commlttee meetings as appropriate. The Board delegates authority through formal temis of ￿ference to a range of committees and sub-¢ommittees including the Executive, Education and Nominations & Remuneration Committees and Audit & Compliance and Investments Sub-committees. The commercial subsidiaries ère separate limited companies who report to their own independent boards. The Principal retired on the 31 August 2021. With effect from I September 2021, the day404ay running of both Schools Is delegated to- the Headmaster. the Chiel Operating Offi￿r. the Prep School Headmaster and the senlor management teams at the Senior and Prep School Arran8ements lor Settl￿ pay and remuneratlon of key management per54>nnel Remuneration for senior management P05ftions 15 determined by the Nominations & Remuneration Committee. The Committee reviews the terms and conditions of the senior Offi￿ holders on an annual basis. Due consideration is given to national benchmarking reports. including periodic sur¥eys by independent authorities such as AGBIS and Balnes Cutler lan Sndependent schools Consultancy business}. to ensure that their remuneration is commensurate with similar r(Aes within the sector. Indemnity insurance Thlrd party Indemnlty insurance was in place for the benefit of Governors during the period. Appolntment of new Go¥ern¢xs Members of the Governing Body a￿ recruf(ed by invitation to ensure that the right mix of skllls, talent. expertlse and experlence is achleved to delr¥er efferttve governano and achievement of the strategic goals of the School. The diversity of age. gender and ethnicity is also considered. The Nominations & Remuneratlon Committee meet5 regularly to consider new Governor appointments. 16

SEDBERGH SCHOOL TRU5TEES' ANNUAL REPORT (GOVERNORS, REPORT) for the year ended 31 August 2021 On appointment, new Govemors receive induction training whKh takes into account their existing professional qualifications or area of expertise. An ongoing programme of Governor tralning Is In place. GROUP STRUCTURE AND RELATIONSHIPS The Charity has two wholly owned subsidiaries and an associated company. in addition it has close relationshlps wlth the Old Sedberghian Club and with two other unconnected separate charities. as follows- Sub$ldlarles Sedbergh School Developments Limited Sedbereh School Developments Limited was incorporated on 11 April 1996. Its principal activities continue to be the provision of courses and other commercial trading ventures. Sedbergh School International Limited 5edbergh School Internatlonal Limited was incorporated on 7 October 2015 in order to facllltate the provlslon of educational artivities outside of the United Kingdom. Assoclate Se(Jber8h Hotel Enterprises Limited Sedbergh Hotel Enterprises Limited is an assoaated company, set up to procure. refurbish and run The Black Bull in Sedbergh. Sedbergh School Developments Limited holds36% of the issued share capital of Sedbergh Hotel Enterprises Llmlted Other The Sedbergh School Foundation (the Foundation) The Foundation is a separate charity. whose purpose is to raise funds and support current and future Investment in facllltles. amenlties and actlvitles undertaken bythe School. There is a close relatlonship between the Foundation and the School. wlth a number of Governors sitting on the Board of the Foundation. The Old Sedberghian Club I'OS. Clubl The OS Club is a separate society which provldes the khool alumni with an extensNe proBramme of events. activlties and support. The School benefits from the generoslty of è thrMn8 network of Old Sedberghians whose close support is greatly appreciated and gladly acknowledged. The Michael Robertson Scholarship Fund The Michael Robertson Scholarship Fund Is an independent restricted fund, not part of the group, which kindly provides income on an annual basis to support bursary awards at the School. Fundralslnl and the Foundatlon The Foundation is an independent charity that provides financial sUPPQrt to the School. The Foundation made restricted grants to the Sch(x)I during the year totalling £0.4m providing additional scholarshlps and bursary support alongside several house based fvndraising initiatives and two significant capital projects. The School did not carry out any direct fundraislng activlty on its own behaw and did not engage third party fundraisers. As the School looks fonvard to the next five years, the Foundation Twstees and the Governors have developed an ambitious plan to celebrate the bicentenary of the foundation of Casterton School in 2023 which marks 200 years of the education of girls at Casterton; and the quincentenary of the foundation of Sedbergh School In 2025. Both annIVe￿rieS will be cdebrated by drawing on the h15tories of the Schools and ￿lebrating with alLfmnl, pupils and parents. 17

SEDBERGH SCHOOL TRUSTEES. ANNUAL REPORT (GOVERNORS. REPORTI for the year ended 31 August 2021 REFERENCE AND ADMINMAAnvE DETAILS Governln8 body Chairman.. R J Gledhill. MA (Cantabl, ACA'# Ex-officio.. The Lord Archbishop of Yorl represented by the Venerable N J W 8arker MA (Oxonl # Ito 31 August 20211 The Lord Archtrmshop of YorL represented by Revd M D Ineson MA. BA (Bristol), BEng (Birml lfrom I September 20211 Her MajestWs Lord-Lieutenant of Cumbria. Mrs C T Hensman BA ILSEI Dr E J Lwaring PhD, MA {Cantab), LLM (Harvard). St John's College, Cambridge The Venerable N J W Barker MA Ioxonl [from l September 20211 Mrs L Bates BA (Liverpool John Moores}' A J N Bedford BA {North Carolina) R Blggs MA (Oxonl, Bsc (Cape Town) [from I September 20211 J D Campbell OBE FRSA. T J Da￿e5 BSC (Newcastle) Ifrom I September 20211 I W Durrans BA (Oxonl. ACA'# Lt Gen Sir Andrew Gregory KBE, CB. DL ￿ Icantsbl R N Papworth BAIOxonl'# M R Piercy MA (Le1￿$ter) J H B Warburton-Lee Representatlve- Co-optive: Members of the ExecLrtive Commtttee at 31 August 2021

Members of the Audtt and Compliance Committee as at 31 August 2021

Slr Roger Gifford was a Governor until his death on 25 May 2021. Prlndpal A A P Fleck Bsc (Nottlnghaml. MA (Sussexl retired 31 August 2021 Headmasteis Senior School: Prep School: D J Harrison MA (Cantabl W R Newman BEd {Exeterl. MA (Wictorial With effect from 15eptember 2021. DJ Harrison became Headmaster of the school as a whole. Chlef Operatlnz Olll¢er, C¢)rnpany 5e¢vetary and aerkto the Govemors P S Marshall TO Registered address Sedbergh Scho Malim Lodge Sedbergh LAIO 5RY www.sedber hschool.or 18

SEDBERGH SCHOOL TRUSTEES, ANNUAL REPORT (GOVERNORS, REPORT} for the year ended 31 August 2021 Bankers Barclays Bank PIC 1st Floor, 3 Hardman Street SpinninEfields Manthe5ter M3 3HF Investment manate Ruffer LLP 31 Charlotte Square Edinburgh EH2 4ET Audltor Haysmacintyre LLP 10 Queen Street Place London EC4R IAG Insurance brokers Marsh Brokers Ltd Caprtal House 1- S Perrymount Road Haywards Heath RH16 3SY Solicitors Veale Wasbrough Wizards Narrow Quay House Narrow Quay Brlstol BS140A Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NEI 48F Farrer & Co 66 Lincoln's Inn Fields London WC2A 3LH STATEMENT OF DISCLOSURE OF INFORMATION TO AUDITOR The Governors who were in office on the date of approval of these financlal statements have confirmed, as far as they are aware. that there is no relevant audit information of which the auditor is unaware. Each of the Govemors has confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselve5 aware of any relevant audit information and to establish that it has been communicated to the auditor. AUDITOR The audltor, Haysmaclntyre LLP has Indlcated a wllllngness to contlnue In office. A resolution to reappolnt Haysmacintyre LLP as auditor will be put to the member5 at the AGM. 19

SED8ERGH SCHOOL TRUSTEES, ANNUAL REPORT (GOVERNORS, REPORn for the year ended 31 August 2021 STATEMENT OF GOVERNORS. RESPONSIBIUTIES The Governors (who are a150 directors of Sedbergh School for the purposes of company law and the Trustees for the purposes of Charity Lawl are responsiblefor preparing the Trustees, and Strategic Report and the financial statements in ac¢ordan¢e with applicable law and United Kingdom Accounting Standards (United Kingdom Gener?Ily Accepted Accounting Practice). Company law requ1￿ the Sedbergh Schi)ol Governors to prepare financial Statements for each financial year which give a true and fair view of the state of affair5 of the charitable company and the group and of incoming resources and appllcatlon of ￿$OurCes, including the Income and expenditure. of the group for that period. In preparing these financial statements. the trustees are required to: select suitable accounting policies and then apply them consistently: observe the methods and princlples in the Charities SORP IFRS1021: make judgements and accounting estimates that are rea%Jnable and pwdent- state whether the applicable UK Accounting Standards have been followed. wwect 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 charitable company will continue in business. The Sedbergh School Governors are responsible for keeping adequate accounting records which dlsclose wlth sufficient accuraty at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2CL)6. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the preventlon and detertion of fraud and other irregularities. In so far as the Governors are aware: there is no relevant audr( information of whlch the charitable coMpan￿S auditor is unaware; and the Governors have taken all Steps that they oughtto have taken to make themselve5 aware of any ￿levant audlt information and to establish that the auditor is aware of that infomiation. This report, which incorporntes the Strategic Report. was approved by the Governors on Ilmarch 2022 and signed on their behaif bv- R J Gledhill Chairman 20

SEDBERGH SCHOOL INDEPENDENT AUDrrors REPORT TO THE MEMBERS OF SEDBERGH SCHOOL Oplnloo We have audited the financial statements of Sedberyh School for the year ended 31 August 2021 which comprise thè Consolidated Statement of Financial ArtNities- the Consolidated and School Balance Sheets, the Consolidated Statement of Cash Flows and note5 to the financial statements, including a summary of significant accounting polleies. The financlal feportln8 frameworkthat has been applied in theirpreparation Isapplicable law and United Kingdom Ac¢ountln8Stsndards, including Financial Reporting Stsndafd 102 The Finonciol Reptirtinq Stqndard opplicgble in the UK t7nd Republic o[Irelond Iunited Kingdom Generally Accepted Acwuntin8 Prarticel. In our opinion. the finandal statements.. give a true and falr view of the state of the group'5 and of the parent charitable companvs affairs as at 31 August 2021 and of the group's and parent charitable compans net movement in funds. Induding the In¢ome and expenditure, for the year then ended,. have been properly prepared rn aecordante wtth United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2CM)6. 8as1s for oplnlon We conducted our audit in accordance Intemational Standards on Auditing IVKI IISAS IUKII and applicable law. Our responsibllltles undèr those 5t3ndzrd5 are fvrther described in the Auditor's responsibilities for the audit of the financial statements se¢tion of our ￿port. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRCS Ethital standard. and we have fulfilled our other ethical responsibilities in accordance with thesè requirtment5. We believe that the audTt evidence we have obtained is sufficient and appropriate to pr￿de a bas￿ for our opin￿n. Concluslons relatln¢ to lo1￿ ￿￿ern In auditin8 the financial statements, we have concluded that the trustees use of the goln8 toncem basis of accountin8 in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identlfied any material uncertaintse5 relatin8 to events or conditions that, individuallyor colleurvely. may cast $18rtlficantdoubton the group's ability to continue as a going con￿rn for a period of at least twelve months frtsm whèn the financial statements are authorised for ￿Ue. Our responsibilities and the responsilxlitie5 of the trustees with respect to golng concern are described in the relevant 5ertions of this report. Other Inforniallon The trustees are ￿ sponsible ftr the other inforniaiion. The other infomiation comprises the infomiation induded in the Trustees. Annual Report and the Chairman'5 Statement. Our opinion on the financial statements does not cover the other Information and, except to the extent otheThwse explicitly ststed in our reporL we do not express any form of assurancè conclusion thereon. In connectlon with our audit of the fin3n¢ial ststement5. OUT responsibility is to read the other informatlon and, In doing so, ¢onsider whether the other information is materialty inconsistent with the financial statements or tsur knowledg* obtained in the audit or otherwise appears to be materially misstated. If we identify Such material inconsi5tencie5 or apparent rnaterial misstatements. we are required to detern)ine whether there is a material misstatement in the finan¢ial Statements or a material misstatement of the other Information. If. based on the work we have performed. we conclude that there is a material MI￿tateMeNt of this other information. we are reqvired to report that fart. We have nothing to report in this regard. Oplnlons on other matters prescrlbed bythe Companles Act 2006 In our opinion, based on the work undertaken in the coursè of the audit: the Information given in the Tru5tee5' Annual Report Iwhich includes the strategic report and the dSrectors' report prepared for the purpose5 Of company lawl for the financial year for which the financial statements are prepared Is consistent with the financial 5tstements: and the strategic report and the directors. report included within the Tntstees. Annual Report have been prepared in accordance with applicable legal requlrements. 21

SEDBERGH SCHOOL INDEPENDENT AUDITO￿5 REPORT TO THE MEMBERS OF SEDBERGH SCHOOL Matters on whlch we are requlred to report b¥ exoptlon In the light of the knowledge and understanding of the group and the parent ¢haritable company and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees. Annual Report (which Intorporates the 5trate8ic report and the directors, report). We have nothlng to report in respect of the followlng matters in ￿latiOn to whKh the Companies Art 2LM)6 requires us to report to you rf. in our opinion= adequate accounting records have not been kept by the parent charitable tompany- or the parentcharitable company fina￿la1 statements are not in agreementwth the a¢¢ountin8 records and returns; or certaln dlsclosures of trustees. remuneration 5peafied by law are not made- or we havè not recewed all the information and explanations we require for our audit. Responslbllltles of trustees for the finandal statements As explained mre fvlly in the trustees, re5ponsibiiriies ststement set out on page 20. the trustees (who are also the dlre¢tors of the tharitable company for the purposes of company lawl are responsiblè for thè preparation of the financial statements and for being Satisfied that they8ivea tnje and fairview, and forsuch internal control as the trustees determlne 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 trustees are re5pon5ible for assessing the group's and the parent charhable companvs ability to continue as a Boin8 con￿rn, disd05in& as applicable, matters related to going concern and using the golng concern basls of ac¢ounting unlessthe trustees either intend to15quidate the grouporthe parent Charitable ¢ompany or to cease operations, or have no realistic a￿emative but to do so. Aud5torfs responslbllltles lor the audll of thè finantial #atements Our objectives are to obtaln reasonableassuranee about whetherthefinanoal statements as a whole are free from material misstatement. whether due to fraud or èrror, and to issue an auditorfs report that includes our oplnlon. Reasonable assurance Is a high level of a55urance. but 15 not a guarantee that an audit conducted in accordance wlth ISAS IUKI wlll athys detect a material misstatement when it exists. Misstatements can arfse from fraud or error and are considered material rf, individually or in the a88re8ate, they could reasonabW be expected to influence the economic decisions of users taken on the basis of these financlal statements. IrregularftSes. Includlngfraud, are Instsncesof non<ompliancewith laws and regulations. We design procedures in line with our responslbllities, outlined above, to detert material misstatements in respect of irregularities. includin8fraud. The extent to which our procedures are capable of detecting irregularities. includlng fraud is detsiled below: Based on our understanding of the group and ihe environment tn which it operate5, we identified that the principal risks of non-compliance with laws and rÈ8ulation5 related to independent school regulations. safeguarding regulations, health and safety reguirements, GDPR. employment law, company law and charity law, and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial 5tstements such as Companies Act 2006, Charities Act 2011 and consider other fattors such as payroll tax. We evaluated managemenvs in￿ntiVeS and opportunitses for fraudulent maniwlatit)n of the financial ststements lincluding the risk of override of controls). and detem)ined that the principal risks were related to income recognition and management override of controls. Audtt procedu￿ performed bythe engagement team included: Inspe¢tin8 correspondence with re8ulator5 and tax authorities- Discussions with management indudin8 consxleratlon of known or susperted instances of nonvcompliance with laws and regulation and fraud.. Evaluating managemenys Contwls desi8ned to prevent and detert irreguLirities,' Identlfying and tèstingjourna15, in particularjournal entries posted at the year ènd.. and Challengin8 assumptions and judgements made by management in their critical accountin8 estimates. 22

SEDBERGH SCHOOL INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF SEDBERGH SCHOOL A further description of our responsibilities for the audit of the financial statements ts located on the Financial Reportlng Coun¢il's website at.. audi or This description forms part of our auditorfs repon. Use of our report Thls report is made solely to the charitable compan￿5 members. as a body, in accordance v￿h Chapter 3 of Part 16 of the Companies Art 2006. Our audit work has been undtrtaken so that we might state to the charitable wmpany'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 charitable company's membeis. as a body. for our audlt wth, for thi5 reporL or for the opinions we have formed. Tracey Young (Senlor Statutory Auditor) For and on behawof Haysmaontyre LLP. Statutory Auditor Date: 5.5.22 10 Queen Street Place London EC4R IAG 23

SEDBERGH SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES For the year ended 31 August 2021 Tot•1 Tot 2920 cha￿table artwilies.. - Srhod fee income other educatlonal Ir￿Qme Other ancilLiry inco 15.178 443 175 15A78 14,928 612 Othertrading4etiwbes.' Trin8intome fjjo Investment￿COme 17 53 D¢￿￿￿$. l¥ades&evants 616 &120 502 rln¢¢me.' Profitlllossl on olffftd asset5 Sundry Income 17246 633 17179 17098 txp•ndlwrg on.. charitab￿ activi(￿$ 17281 17318 RalsM8funds'. Tradini tosts Flfi¥ntinÈ costs 141 171 182 T•t•lWendittwe 18.329 ie,726 A8296 14ei IExpehdiuweWn¢•me 245 18471 Transfer bEt￿n funds 559 15591 Other Reco￿1$ed GaknsllknJS￿) Gain5 on invE5tment5 Atturial10$5è5 on dtfined ￿nefft pen5wJnscherne 91 49 2a4 158 pi Net In F¥r4s 14351 12651 16151 Totsl Funds Bro¥Ahi F¢rw• 14 1.761 17,728 17,982 Totsl Funds Canled Fwwwd 14J47 17.11) 17.728 All artivilies a￿ Classed as ¢ontinuin8. The notes on pages 27 to 52 form part of these accounts. 24

SEDBERGH SCHOOL BALANCE SHEETS At 31 August 2021 Company number: 03946280 2021 2020 2021 20211 £'ooo Note Flxed Assets Tangible fixed assets Investments io li 22,359 4.633 22.359 3,967 22,304 2,794 3.421 26,992 25,725 26.326 25.098 Cuwent Ass•ts siocks Debtors Cash at bank and In hand 12 13 141 1.218 233 1.237 3.891 134 226 1,458 3,648 1.618 3.163 5361 3.236 5.332 Cr￿￿$. amounts frdllln¢ due7lthln Or￿ year 14 16.2521 16.4511 16,1371 Netcurrent L&bl￿[•S 13.3451 IB911 13,2151 18051 Totsl Ayets Less ￿rr¢Trt U•bllStles 23,647 24,834 23,111 24.293 Credltors: amounts f•lllng due aftermoreth•n or)e Is 165341 (7.iC61 16.5341 17.ICI Total Net Assets EMdUdl￿ Dellned Benefft Penslon 5¢hemeAsset Defined Benefit Penslon Stheme Lfjabllitv 17,113 17.728 16.577 17.187 Tot•1 N•t ￿$t$ 17,113 17.728 16.S77 17.187 Fwnds Unre5trKted fund5 General reserve Revaluath?n reseThe Penslon ￿SerVe 10.581 11.016 10,711 11.102 3,866 18c 1&447 L846 820 14.882 1,761 1.085 14,577 14,968 1,761 458 Er¥lowment funds Restrlcted funds 18b 154 Total Funds 17.113 17.728 16.577 17,187 The School's net expenditure for the year was £0.799m12020.. net expenditure £0.023ml and the net movement in fund5 was I£0.610ml12020'. £0.092ml. The financial statements were approved. authorised f￿ ￿su and signtd on behalf of the Board of Governors on March 2022. R J Gledhill ChaSrman 25

SEDBERGH SCHOOL CONSOUDATED CASH FLOW sfATEMENT for the year ended 31 August 2021 2021 2020 £'oDo Operating Acti¥5ties Net costs Depretiation charge Investment in¢ome Interest paid Investment management fee IProfitl/L055 on sale of fixed a55ets Defined benefit pension stheme Decrease in stocks Decrease in debtors IDecreaselfin¢rast in ryeditor5 18471 924 1331 171 22 13981 873 1531 182 18 1141 71 492 16761 92 78 13081 Met cash provlded by Operallng Acll¥ltSes InT￿ling Artlvltles Investment income Purchase of tsngible fixed assets Procèeds from sale of Investments Purchase of investments 33 11,0351 917 11,9171 53 17171 18871 Net ￿$h used In InTR￿1￿ Actmtlqs 12.0021 16651 Flnandng Actlvltles Interest paid Aeceipts from loans Payments on loans Finance lease renta15 1171) 11821 13441 1171 181 Net cash {used In) J provlded by Flnanclng Actl¥ltles {1791 457 Change in ¢ash and ¢ash equw•lnts kn the perknd 12.0871 290 Cash and cash equlvalents •t the be￿nn1￿£ of the rlod 3.891 3,601 Cash and cash equl¥alents at ihe end of the perlod 3,891 Represented by: Cash at bank and In hand 3.891 26

SEDBERGH SCHOOL NOTES TO THE Accoumrs 31 August 2021 Acwunting policies l￿al status Sedber8h School Is an incorporated (private company limlted byguarantÈel chartty Icharlty fio. 1080672, company no. 039462801. reglstered in E￿land. The Schoofs add￿$ is Sedbergh School. Malim Lodge, Sedbergh, LAIO 5RY. Sedbergh School was founded in 1525 and received a Royal Charter from King Edward Vl in ISSI. The oblect of Sedbergh School is to advance education by carrylng on in Great Britain a school or schools 4t which infants, children and pupils may obtain education and instruction in academic, sportin& musical. ¢ultur41, suentific, technical. vocational, soual and commercial Subjects. aCtI￿tieS and crafts of every description. Sedbergh School meets the definition ol a public benefit entity under FRS 102. Basls of a¢¢ountlng The accovnts are prepared under the Companie5 Act 2(KJ6, CharTtie5 Act 2011 and under the hlstorical cost convention as modified by the adoption of fair value accounting for investments and the revaluation of private dwellin8s. These financial statements have been prepared in aecordance with UK Generally Accepted Attountlng Prartite (UK GAAPI in¢luding FR$ 102 The Financial ReFK>rting Stsndard applicable in the VK and Republic of Ireland. I"FRS 102.1 and the ChaTitie5 Statement of Recommended Practice I'charities SORP IFRS 102llsecond edition, effective January 20191,1. Monetsry amounts in these finan¢i31 statements are rounded tothe nearestwhole £1.[￿ exceptwhere otherwise indicated. The financial statements are pTe5ented in 5tedin8 which 15 a150 the functlonal currency of the School. Basls of con501ithtioTh The School's individual accounts include the linked charities Sedber8h School Prize Fund Icharity no. 1080672-11, Sedbergh School Scholarshlp Fund (charity no. 1080672-21. Rosalie Mary Forster Bursary Fund Icharity no. 1080672-31 and Casterton School Scholarship Fund (charity no. 108067241. The Consolidated accounts include the School, the Appeal Fund, the Education Fund, the Schoofs tradin8 subsidiary, Sedbergh School Developments Limited Icompany no. 031845831 and Sedbergh School Internatlonal Limited (company no 98140211 together with the share of the results of its associate Sedbergh Hotel Enterprlses Limited Icompany no 105986311, in which Sedbergh School Developments Limited has a 36% shareholding. AEI linancial statements are made up to 31 August 2021 extept for Sedbergh Hotel Enterpri5e5 knmited which has a finart¢ial ye•r ertd of 30 June 2021. The followbnÉ accountin8 policies have been applied con515tently in dealing with items that are considered material to the School's financial statements. The charity has taken the exemption from presentinB its unconsolldated Income and èxpeftditure a¢count under section 408 of the Companie5 Act 2006. Reduced di5cIosures In accordance with FRS 102. the School has taken advantsge of the exemptions from the followin8 dlsclosure requirement in the individual ffinanual st3tements of Sedbergh 5thool.. Se¢tTron 7 '5tatement of Cash FIow5'_ PreSentat￿Tr of a Statement of Cash Flows and related notes and di5c105ure5. Sertion Il'Basic Financial In5truments'_Carrying amounts, interest incomelexpense and net8ainsllosses for each category of finanaal instrument,. basis of determining fair values- detslls of collateral. loan defaults or breaches. 27

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 Golng concern The Governors consider that there are no material ufi¢ertaintie5 that coukl cast significant doubt on the School's bility to continue as a going concem. The COVID-19 pandemo¢ has Imparted significantty for a second ￿ar running. Whilst the future resutts may be affÈ£t￿ by this pandemic, at the time of approving the accounts the School has strong pupil numbers and pipelines. The Governors have Considered the current cash position and hjture forecasts Inrluding Sensitivity analysis. Therefore. the Governors remain confident in its cash flow forecast and its abilTty to meet its ongoing obligatlons as they arise for the next twefve months from the date of approval of the financial statements. As a result. the financial statements are wepared on a 8oin8 Concem basis. Income Incomefrom S¢hoolfees represents fees earned in respertoftuftion given during the year. Fees received in respect of tuition to be 6￿Ven after the year end are induded in creditors as fees received In advance. Fee5 rereivable are ststed after deducting allowances for scholarships and bursaries granted by the School. but include Contributions received from restricted fvnds for scholarships. bursaries and other grants. Income from trading activities represents thè Invoi¢ed value. net of Value Added Ta& of goods sold and services prowded to customers durin8 the period. Turnover 15 recognised when substantially all the risks and reward5 of owneishSp have been transferred. Donation5 received are recognised where thère is entitlement, the re￿Ipt is probable, and the amount can be measured with suffi'cient reliability. Donation9 5ubjert to specific wshes of the donors are carried to relevant restricted funds, or to end0¥￿ent fvnds where the amount is required to be held as permanent capltal. Other income. Including Investment income. is accounted for on an accruals basis. Grant Incom•, In¢ludin8 income from the Coronavlrus Job Retenth?n Scheme. is reco8nised and accrued. Sn the period to which the relevant costs relate. Expenditure Expenditure is reeognlsèd once there is a le8al or constructive obllgation to transfer economic benefit to a thlrd party, k is probable that a transfer of economic benefit will be required in settlement and the amount of the obligation can be measured reliably. Amounts are dlscounted tLI present value for longer-term Ilabllltles. Expenditure 15 summarised under tur￿tional headirw on a dirert costs basis. Expenditure on raising lunds art th05e costs incurred in attracting voluntsry income and those incurred in tradin8 actlvities that raise funds. Charitable actiwties include expènditure a550Clated with the objects of the School and both the direct costs and support costs relating to thls a¢tivity- Grants awarded are expensed as soon as they become le8al or operational commltments. Management and administration costs indude govemance Costs incurred in the governance ofthe School and Its a$5ets and are primarity associated wtth ¢onstltuti¢)nal and ststutory requirements. Tax¥tlon The School is a re8lStered charity and therefore it is exempt from income and corporation tsx on income and 8ains falling within chapter 3 Part 11 Corporation Tax Act 2010 or S256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charf(able objerts. The subsidiary undertakings. s￿berSh Sthool Developments Limited and Sedbergh Sthool Intemational Limited are liable to income and ¢orptsration tax on their Income and galns. Glft aid payment5 paid to the Charity will reduce the tsxable income and 8ains. The subsidiaries are eligible to make gift aid payments to their holding company. the Sthool. Details ofsedbergh School Developments ￿rnited and Sedbergh School International Llmited policies on 8ift aid can be found wlthin their financial statements. 28

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 Flxed assets The School buildings, boarding houses and land ownèd by the khool at SedberBh are included on the balan sheet at the historical eost. Prrvate dwellln851"re5idential properties") and property held forsale art hÈld atvaluatton. All movements in value arising from a change in value of private dwellings, in exce55 of their original cost, are shown in the Statement of Financial Actlvities as revaluation gains or 195ses. with movements being creditedlcharged to the revaluation reserve. Any dimlnutlon in ￿lue below ori8inal cost is charged to the Statement of Flnanclal A¢tivOties a5 an impairnient. All other fixed a55ets are measured at their cost or values at the tome of acqulsltlon, net of depreclation and any Impalrment losses. Capital item5 Costing less than £1,0￿ are written off as an expense a5 acqulred. Depreclatlon Depreciation is prO￿ded on tangible fixed a55ets at rates and bases calculated to write off the cost less estimated resldual value, based on current market price5. of each asset over its expetted useful life a5 follows: School buildings 50 years Fixtures and fittir 5- 20 years Computer equipment 3 year5 All weather pitch 20 years Motor vehicles 4 years Leasehdd impro¥tmènts over the life of the lease Land Is not depreciated and assets under construction are onty depreciated once they come into use. Impalrnnt offlxed assets An assessment is made at each reporting date of whether there are indati¢Jn5 that a fixed a55et may be impaired orthat an impairmeni loss previousty recognised has fully or parbally reversed. If suth indications exist. the School estimates the recoverable amount of the asseL In¥estm¢nts Irbvtstments are sted in the balance sheet at their market valve as at the balance Sheet date. All rnovement5 in value arisin8 from investrnent changes or revaluatK)n are shown in the Ststement of Financlal Actlvities and are allocated to the appropriate fund according to the allocatlon of the underlyin8 asseL Investments in assouaies are reco8rhised initialty in the consolidated balaTr￿ sheet at the tran5artion price •nd subsequently adjusted to reflertthe group's share of total It)comeand equity of the associate, less any impairment. L0$5es in excess of the carrying amount of an investment in an a￿0¢1¥te are recorded a5 a provision only when the School has a legal obligation to make good the1055es. Investments in associates are accounted for at cost less impairment In the Individual financlal statements. Stock Stock is valued at the lower of r05t (based on purthase pricel and fair value. Penslon xhemes Retirement benefits for the Schoofs teaching staff a￿ provided by the Tathers' Pension Scheme I"TPS"l. Thi5 is defined benefit scheme which is ÈxtÈrnalty funded and contracted out of the State Earnings Related Pension Scheme. Thls scheme Is a multi*mployer pension scheme. It is not possible to identify the School's share of the underlying assets and liabilities of the Teachers, Pension Scheme on a conslstent and reasonable basis and therefore, as required by FRS 102, the School accounts forthe sthemt as rf it wÈre a defined contribution scheme. The School's contributions, which are in accordance ￿th the recommendation5 Of the Govemment Actuary, are charged in the period in which the salaries to whith they relate are payable. 29

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (cont5nued) 31 August 2021 Penslon s¢hemes fcontinuedj The School contributes to a separate defined benfft stheme for non-teaching staff. This 15 an occupational defined benefit scheme. The defined benefit pension stheme current service costs are charged to the Statement of Flnancial Activities within staff costs. Net interest on the net defined benefit asset is ￿COgnISed In the Staternent of Financlal Artivities. The scheme actuarial gains and losses are reeognised immediatety as Other recognised gains and losses. The defined benefft scheme assèts are measured at fair value at the balance sheet date. Schemè liabllities are measured on an actuarial ba515 at the balance sheet date using the projectèd unit method and discounted at a rate equivalent to the current rate of retum on a high quality corporate bond of equlvalent term to the stheme liabilities. The School only recognises an asset in respect ol • Su￿1￿5 on the scheme valuation to the extent that the asset is recovèrablè through reduced future contributions or through a reimbursement from the Scheme. The School also contributes to a group money purchase s¢heme for non-teathing 5tsff. Contributions are charged to the Statement of Financial Activities in the period in whith the salaries towhich they relate ère payable. Défined contrlbution pension tosts are allocated to unrestrirted funds. Employee beneffts The costs of short-temi ernpl¢)yee benefrts are reco8nt5ed as a liabilty and an expense. The best estimate of the expenditure required to settlè an obligation for termination benefrts is recognised immediately as an èxpense when the School is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Fund accountlng The School has variou5 types offunds for which it is responsib￿ and whlch require separate disdosure. These are 35 follow5: Unrestrkted funds Funds which are expendable at the disuetion of the Govemors in furtherance of the obje¢ts of the School. In addition to expenditLtre on the School's operatlons, such fund5 may be held in order to finance capital investment and workin8 Capltal. Donations or legacies re￿iVed whTrch are èarmarked by the donor for specifi purposes. Such purposes are within the overall aim5 of the School. Funds given to the S¢hool where the income may be used In furtherance of the objects. butthe capital myst be retained. The kho01 may at its discretion set aside funds for speciffic purposes whith would otherwise form part of the general reserves of the School. Aestrirted fund5 Endowment funds Deslgnated funds Flnart¢lal InMfuments The School has elected to appty the Provisions of Section 11 'Basic Financial Instrument5. and section 12 '0thr Financial Instrumentslssues. of FRS 102 in full to all its financial in5trument5. Trade and other debtors and cretlltors are inrtially re¢o8nised at transaction value and subsequently measured at thelr settlement value. Bank loans and other loans are initialty recognised at their trartsa¢tlon value and sub5equendy measured at amortised cost using the effectNe interest rate method. Interest expense is rt¢O8nisèd on the ba515 of the effertive interest method and is induded in interest payable and other 5imil?r char8e5. Investments are initially measured at transaction price and subsequentty measured at falr value through net income or expenditure. Leases An a55et and corresponding lia￿lityare recogntsed for leasing agreements thattran5fer to the Sthool substantially all of the risks and rewards incidentsl to ownership I"finan¢e leases"l. The amount capitalised is the fair value of the leased asset or. rf lower. the prèsent value of the minimum lease payments payable during the lease term, both determlned at inception of the lease. Lease payments are treated as consisting of ¢apital and interest elements. The interest is charged to the Ststement of Financial Activitles $0 as to produce a constsnt periodlc rate of interest on the remainlng balance of the liablllty. 30

SEDBERGH SCHOOL NOTE5 TO THE ACCOUNTS (continued) 31 August 2021 Leases fcontinuedj All othèr leases are operating leases and the annual rentals are charged to the Statement of Flnan¢lal Activitles on straight line basis over the lease term. Crlllcal ac¢ounlln8 estlmates and areas of lud8ement Estimate5 and judgements are continually evaluated and a￿ based on historical experlèntè and other faetors, including expectstlons of future events that are belIe￿d to be reasonable under the circumstances. The School make5 estimates and assumptions concerning the future. The resulting accountlng estimates and assumptions will, by definition, seldom equal the related artual resvlts. The estimates and assumptions that have a significant rlsk of ¢au5ing a material adjustment to the ca￿￿ng amounts of assets and liabilities wlthin the next financial year are diKus5ed below. Pension scheme walt￿tIon assumptions The presentvalLte ofthe defined benefft pension asset depends on a number of fartor5 that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determtnin8 the net cost Iln¢omel for penslons include the discount rate. Any chan8es in these assumptions, which are disclosed In note 20, will impact the carrwn8 amount of the pension asset. Furthermore a roll forward approach whith projects results from the latest full actuarlal valuation performed at 31 August 2018 has been used by tht artuary in valuing the pen5i0ns asset at 31 August 2021. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impaet on the carrying amount of the pension asset. The surplus on the penslon stheme valuation as at 31 Au8USt 2021 has not been reco8nised as an asset because the Governors do not consider that it is recoverable. Fee debtorpmvision A provision for irnpairrnent of fee debtors Is estsblished vthen there is oblectlve evidence that the amounts due wlll Aot be collected in line with thè usual fee collections due to financial difFiculty of the debtor5. Useful lift ollixedosstts In makin8 declsions re8ardin8 the depreciation of tangible flxed assets. managernent must estimate the useful Ilfe of said assets to the bu5ine5s. A change in estimate would result in a than8e in the depreciation charged to the Statement of Financial Activities it) each year. Residentiolproperty voluotlons Residential properties are held at valuation. The Govemors rnake informed declsfjons on an annual basis about property values in conjunrtion with the Schoofs property advisers. lrt the opinion of the Governors there are no critlcal judgements involved In the p￿paratIOn of the finandal informatlon. 31

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 School fee Income 2021 2021 2020 2020 £'<M)O Restated Gross fees 19.393 19.234 Bursaries Scholarships Other concessions 1.022 1.574 1,922 956 1.610 2,154 4,518 4,720 Less contrtburlons from Testritted funds Education Fund Appeal Fund Mi¢hael Robertson Scholarship Fund Scholarship and Prize Funds Sedbergh School Foundatron Casterton School Scholarship Fund Rosalie Mary Foister Bursary Fund 141 121 {1411 191 (1441 121 iii 12181 Iiii 11771 121 13031 14141 4.215 4,306 Net fees 15,178 14,928 The 2020 comparative figures have been restated to reclassify other fees into other educational income. Other Income fmm tharftsble •¢ilvliles 2021 2020 Other educat5onal Income Other fees Bookrwm Sundry Re8iStation fees Fees in liev of notice Surcharge Interest on late fees Restatèd 401 33 333 25 45 37 33 127 17 443 612 Other educational Income 1$ generated by the Schod Oft￿ and 15 credited to unrestricted fund& 32

SEDBERGH SCHOOL NOTES TO THE ACCou￿r5 (contlnued) 31 August 2021 Other income from charltable actl¥ftles (continued) 2021 2020 Other ancillary income Rent Commi55i0n5 Insuran Sundry 114 136 54 175 142 Other ancillary income 1$ generated by the Sthool only and Is credited to unrestritted funds. Tradlng Income 2021 2020 £'ooo Short cour5e5 School uniform Facilltles and lettings Royalty and Servi￿ fee income 385 234 32 232 19 347 277 897 630 Investment Income 2021 2020 £'ooo Bank interest received Dividend5 received from fixed a55et investments 20 33 33 33 53 2021 £17.COJ12020.' £19.0001 of Investment income was credited dlrertly to restrkted funds. 33

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 Inwme from donatlons. le8a¢les and 8rants 2021 £'ooo 2020 L)onation5 {unre5trirtedl t)onations Irestrirtedl Income from Sedbergh School Foundation Irestrirted} Income from Michael Robertson Scholarship Fund Irestrictedl Government fundin8 Irestrittedl Coronavirus Job Retention Scheme grant {unrestrittedl 74 177 218 144 141 31 504 1.031 1.120 1,502 Expendlture 2021 2020 £'ooo Charftable expendlture Includes: Depre¢iatlon- owned assets Depreciation- assets under flnance leases Operating lease cost 922 867 106 89 Other expendlture (exd VAn th(￿des. Auditorfs rtmunèration.. Statutory audit of parent company and group attounts Audit of subsidiaries where such ser¥ices are provided by the 8roup auditor 27 26 Totsl audit Other services 34 33 15 41 48 HnanCI￿ costs 2021 2020 rooo Interest on bank loans and overdrafts 171 182 171 182

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 Expendlture (continued) Staff costs 2021 2020 £'ooo Wages and salaries So¢ial security costs Pension costs Redundancy costs 9,376 867 1,254 18 9,297 794 1,219 152 11.515 11,462 The a¥era8e number of staff employed by the SCI￿01 durfngthe year. Z021 No. Full tlme 2020 No. Full tlme Part tlme Part tlme TeachlnB staff Premi5e5 and grounds staff Administration and clerical staff Caterin& boardlng house and medlcal staff ioi 24 30 81 107 24 30 68 61 26 122 26 134 236 216 229 225 Neither the Governors nor persons connected with them re¢elved any remuneratlon or other benefrts from the School or any connected organisation. Details of expenses paid to Governors are provided in note 19. The number of ernployee5 whose ernoluments. includinB benefits in kind, exceeded £60,000 was.. 2021 No. 20ZO No. £60,001- £70.C £70,001- £80,CKKI £80.001- £90,tJXI £90.000- £iCa),COJ £120,OQ)- £130,OCK) £190.OC(1- £200.(MXI £200.LI)1- £210PJO Induded in the above higher paid employee5 were 812020: 41 accruing benefits under defined beneflt schemes. Contribution5 in respect of these indiwduals totalled £0.127m12020.. £0.068ml. Key manaieThent personnel The School considered its key management personnel during the year to comprise the Principal, Chief Operatin8 Officer and two headmasters, at the Senior school and the Prep Sthool. The total employment benefits including elnployer pen5i9n contributiQn5 of the key mana8ement personnel were £0.66m12020'. £0.65ml. 35

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (contlnued) 31 August 2021 An•lysls of expendlture Depre¢latlon £'ooo Total 2021 CharFtsble aumtles Teaching costs Boarding houses, staff and medltal provi5i0n Premises costs Management and administration Grants, awards and prizes Publicity 6.237 2,229 1.512 3.741 1.133 1.169 2.230 924 4.287 2,035 308 598 339 259 11.107 5,618 924 17.649 Ralslr48 lunds Trading Interest on bank loans and overdrafts 498 171 906 171 669 1,077 11.515 6,287 924 18,726 Governance costs (included wlthln manogement ond odmffnistrottion ¢orts) 13 13 41 41 Governorf meeting costs Audit and accountanty {èxc VAn 36

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (contlnued) 31 August 2021 Analysi5 of expenditure (continuedj Staff costs Othw Depreuation Total 2020 Charftable actlvltles Teachlng costs Boarding houses. Staff and medical prowsion Premlses costs Mana8ernent and èdmlnistration Grants, awards and prizes Publicity 6.323 2,079 372 1.137 6,695 3.216 1.027 1.207 1.850 1.164 474 337 873 3,750 2.371 474 712 375 ii.oii 5.334 873 17,218 Ralslng funds Tradin8 Interest on bank loans and overdrafts 451 445 182 896 182 451 627 1,078 11.462 5,961 873 18.296 Governance costs (included within monogement ond odminlstrotion rost5} 18 18 Governors, meetin8 CQSts Audit and aCCo￿￿ncY All expenditure 15 charged tothe unrestrirted fund. with the exception of£O.30m12020.. £0.44ml of grants. award5 and prizes, £30.CK)o finance costs, £2.￿oteachIng costs. £4.Cirf) Boardin8 house costs and £49,(M)012020.. £37.OIKJI of management costs that are Charged to the restrirted fund and £9.1IxI12020.. £6,000) of management costs that are charged to endow￿ funds. Falr value gains and losses 2021 £'o(x) 2020 £'ooo Fair value gains and losses on finanaal assets= Gain on fixed asset investments 234 158 37

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (contlnued) 31 August Z021 10 Tanglble flxed assets Resident•al prop•rty Asset5 under construct•on Leasehold Improvements Flxtures & rrttin Other assets khool land & All weather buildin surfa¢es Consolid*ed •nd School Total rooo Cost or Valuatlon A5 at I Sept 2020 Addltion5 Transfers Dlsposals 5,596 143 12 iiooi 1551 1.052 10.030 555 832 43 14,233 425 Ico 604 32,490 1.035 Iso) 11051 As at 31 Auiust 2021 S,596 1.052 10.535 875 14.758 604 33,420 DeprKl4tlon At as I Sept 2020 Charge for the perlod Dlsposals 98 li 6.555 507 1491 734 54 2,278 323 521 29 10,186 924 1491 As at 31 Auiust 2021 109 7,013 788 2,601 550 11,061 P4et book v•lu• As at 31 August 2021 5,596 3.522 87 12,157 54 22,3S9 As at 31 August 2020 5,596 143 954 3.475 98 11,955 83 22,304 The net book value of a55ets held under finance leases is £61,C(K)12020.. £82,OWI in¢luded wlthin S¢hool laftd & buildings. The depreciation chaT8e in respect of these assets was £I,5￿12020.. £6,000). School land and buildinB5 have been valued for insuran¢e purposes in October 2021 at £157m12020: £150ml. In addition, the Schoofs contents are Insured at a value of £8.3m12020: £8.2ml. PrNate dwellings are revalued on a regular basis, and a full Red Book RICS valuation wa5 performed by Daw5 BowTin8 in July 2018. at open market value. The valuation of these properties was £5.6m. The Governors have considered the current market and, having consulted with externzl advisors, are of the opinion that there is no indication of materlal change in the market Value as at 31 August 2021. 38

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 li Investments 2021 2020 £'ooo Consolldated At market value: Balance at I Sept 2020 Additions Disposal pro¢eeds Increase in market value Management fee 3,421 1,917 19171 234 1221 3,280 887 18861 158 1181 Balan￿ at 31 August 2021 4,633 3.421 2021 £'ooo 2020 £'fy)o School At market value: Balance at I Sept 2020 Addit40ns Disposals proceeds Increase in market value Management fee 2.794 1.742 {742} 191 {18) 2.679 718 17171 129 1151 Balance at 31 August 2021 3,967 2,794 Subsldlary yndertaklngs The School Controls IC*)% of Sedber¥h Sthool Developments Limited (company no. 03184583; with the Same Te8iStered address as the School, detailed on page 181, which runs sporting and educational courses making use of the School's facllities. Its trading results and summary balance sheet. extrarted from it5 audited accounts for the year ended 31 Au8USt 2021 were= 2021 2020 £'ooo Turnover Cost of sales 386 12051 51 11401 Gross profitlllossl Administration costs Interest 181 12421 151 1891 12341 Net loss 1661 13231 Tradin8 income 15 credrted to unre5trirted funds. 2021 vooo 1020 Total assets Totsl Ilabllltles 146 14581 78 13241 Total reserves 13121 12461 39

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 li Investments (continued) The School also controls I(￿ of Sedbergh School International Limited (company no. 9814021- w￿h the same registered address as the School. detslled on page 181 which wa5 formed to facilitate openlng of an overseas School. Its tradin8 results and summary balance sheeL extracted from its audited accounts for the year tfided 31 Au8ltrSt 2021 wtf*'. 2021 £'OOD 2020 eooo Turnover Cost of sales 276 347 {421 GroM profit Adminlstration costs 276 11681 305 12071 Net profit 98 Trading Income Is credf(ed to unrestricted fvnds. 2021 zozo £'ooo Totsl assets Total liabilitie5 223 1411 201 1411 Totsl reserves 182 160 A550clated Undertaklngs Sedber8h S¢hoo1 Oevelopments Limited hold5 36% of the issued share capital of Sedbergh Hotel Enterprlses Limited Icompany no. 105986311. set up to procu￿. refvrbish and run The 8la¢k Bull in Sedbergh. 2020 £'ooo At I Sept 2020 and 31 August 2021 Type of share5 held Proportlon Country ot held (%) Inwrporatlon Reglstered Offke Sedber8h Hotel Enterprise5 mited 44 Main Street, UX Sedber8h, LAIO 5BL A ordinary shares 36% The audited results of Sedber8h Hotel Enterprises Limited for their year ended 30June 2021 are as foll¢>ws,' 2021 2020 £'ooo 11.1321 A88regate amount of capltal and reserves 11.161) Loss for the perlod 1291 12141

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (contlnued) 31 August 2021 12 Stocks Consolldated 2021 School 2021 2020 2020 Consumables Bookroom stationery 116 218 15 109 25 211 15 141 233 134 226 13 Debtors Consolldated 2021 School 2021 2020 2020 Debtors for school fees and extras Trade debtors Prepayments and accrued income Other debtors Amounts due from related undertakings 675 123 319 560 675 282 79 448 475 117 306 117 71 22 1,218 1.237 1,484 1,458 14 C￿dItOrs. amounts falllng due wltNn one year Con5011dated 2021 Scho 2021 rooo 2020 2020 £'ooo Trade creditors Actruals and dèferrtd income Parental deposits Fees received in advance Taxation and social security Finance lease creditor Other creditors Bank loans 631 381 617 1,027 700 3,053 199 1.028 757 3,395 223 7fy) 3.053 243 757 3.395 223 143 533 143 564 533 6.508 6,252 6.451 6.137 P•rentsl deposlts All new pupils joining the School must pay a deposit. This is refunded when the pupil leaves the School. Fees re¢elved In advance Parents may pay to the School up to the equivalent of seven years. fees in )dvan¢e. Fees are apportioned over the pupil's time at the Scho￿. The money may be returned subjett to specific condit￿nS on the receipt of one term's notice. 41

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS {contlnued} 31 August 2021 14 Creditors: amounts falllng due wlthln one year (continued) Assumlng puplls remaln ln the Sthool. advance fees wlll be applied as follows= Consolldated and School 2021 2020 ¢000 Within I year Within I to 2 years Within 2 to 3 yèars Greater than 3 years 2,687 475 2.189 449 281 134 6S 3.395 3.053 The movements durin8 the year were as follows: CoTrsolldated and School 2021 2020 rooo As at I Sept 2020 New contracts Refunded Arnounts utili5ed in payment of fee5 to the Sthool 3,053 2,721 1781 12.3011 3,907 2,161 13,0151 As at 31 August 2021 3,395 3,053 15 Creditors: amounts falli￿ due after one year Consolldaied •nd School 2021 2020 rooo £'ooo Bank loans Finance lease creditor 6.534 7,098 6.534 7,106 8ank loans During 2020 a £lm loan facility vn5 arranged under the Coronawrus Busine55 Interruption Loan Stheme I-CBILS-I at an interest rate of 2.44% above base. The loan is repayable by way of 20 quarterly instalments of £0.05m from Sept 2021. Durlng 2018 3 £6.5m loan facility was arranged at an interest rate of 2.25% plus ￿bOr. which will be repald by way of 15 quarterly instalments of £86.000 with a final repayment after 5 years. A opital repayment holiday was negotiated for the twelve months from September 2021 following which the instslments were rescheduled to £91,rKxJ per quarter. Following the withdrawal of the Libor rate, wth effect from 31January 2022. the applicable interest rate will be 2.25% above base. plus a 3 month ¢redit adjustment of 0.0793%. 42

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 15 Creditors: amount5 falllng due after one year (continued) The bank loans fall due a5 follow5= Consolidated and School Bank Loans zozi 2020 Amounts falling due within l year (note 14) Amounts falling due within I to 2 years Amounts fallin8 due wtthln 2 to 5 years 564 $64 5.970 344 6,754 7,098 7,098 The bank loans. wrth an ¢)utstandin8 balance at 31 August 2021 of £7.IOm12020: £7.IOml, are secured by way of le8al char8es over certain properties and a fixed and floating debenture over the School's assets. The finance lease creditors of £8.00012020= £16,LXKII are secured against the assets to which they relate. 16 Anatysi5 of ¢han8es In net debt At I September Non C•sh 2020 Movements Cash fiows At 31 Auiust 2021 Cash at bank and in hand 3,891 12.0871 Sub-total 3,891 12,0871 1.804 Loans falling due wlthin one year Loans falling due after more than one year Finance lease obligations 15641 564 15641 16.5341 {7.0981 116} Net fvndslldebtl 13,223) 12.0791 15.3021 17 Allocation of the tharlty net assets The net assets are held fc* the varlous hjnds as follows: As at 31 August 2021 Net <urr•nt •ssetsllllabllltiesl £'ooo Long term Ilabllltles £'ooo Total Consolldated Endowment Restricted Unrestricted funds 118al 118bl 118cl 1.461 767 24.764 385 53 13,7831 1,846 820 14.447 16.5341 26,992 13.34SI 16,5341 17,113 43

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (contlnued) 31 August 2021 17 Allocation of the tharity net assets {continuedJ As at 31 August 2021 Flxed assets Net current •ssets/lllabillliesl Long term Total School Endowment Restrlctèd Unrestricted fvnds 11831 118bl 118cl 1.461 ioi 24.764 385 53 13.6531 1,846 154 14.577 16.5341 26,326 13.2151 16.5341 16,577 As at 31 August 2020 C¢>nsolld•ted eooo £'ooo Endowment Restricted Unrestrirted fvnds 118al 118bl 118cl 1,376 1,032 23,317 385 53 {1,3291 1,761 1,085 14,882 17.1061 25,725 18911 17,1061 17,728 School Endowment Restr4¢red Unrestricted fvnds 118al 118bl IIBC) L376 405 23.317 385 53 11,2431 1,761 458 14,968 17,1061 25.098 18051 17,1061 17,187 18a Endowment funds B•l•n¢e at I Sept 2020 Revaluailon IA¢ome Expenditure yin511l0ss￿I Balance at 31Aug2021 Consolld*ed and Sthwl Collingwood and Baynes Foundation Scholarship and Prize Fund Casterton School Scholarship Fund 455 iii 459 1.1 171 7S 1,183 191 14 204 1,761 191 1.846 44

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS Icontlnued) 31 August 2021 Endowment funds (continued) Revaluation Income Expendlture ￿In$l(lo$Se$) Balance at 31 Aug 2020 I Sep 2019 Consolldated and School Collin8wood and Bayne5 Foundation Scholarshlp and Pr12e Fund Casterton School Scholarshlp Fund 452 455 L(69 {si si 1.115 183 {1) 191 1,704 {61 63 1,761 The Collingwothj & Baynes Foundation and the Schdarship and Prize Fund5 form part of the School's permanent er￿owrnent ard were set up to prowde stholarships and prizes to pupils attending the Sthool. Casterton School Scholarship Fund relates to funds transferred on the merger of Casterton and Sedbergh School. Charity Commi55ion approval wa5 obtained forthes* to be transferred from Casterton School to Sedbergh School. 18b Restrlrted funds B•lan¢e I Sept 2020 R•¥aktatlo galnsl 1kn5e51 8•l•n¢e at 31Au 2021 Tran%1 I￿oMe Expenditure General Funds Rosalie Mary Forster 8ur5ary Fund Ca5terton School khol•r5hip FUMI Ca5terton Old Girls Association Sc￿)larShIP and Prize Fund Casterron School 5cholarthp Fund 615 13651 15591 91 96 53 53 hool Funds Educalion Fund Appeal Fund 458 382 24S 627 13781 161 1559) 154 406 260 26 17 Consolldated Funds 1,085 633 13881 IS59} 49 820 45

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 18b Restrlcted funds (continued) B•l•n￿ •t I Sept2019 Re¥•l¥•tk+n Intome ExP￿dI￿re plnvllossesl £'ooo B•lance at 31 * 2020 General Funds Rosalie Mary Forster 8ursary Fund Castertofi Sthod kholarship Fund Ca5terton Old GirbAssociafjon Scholarship and PriEe Fund C45terton knlarshlp 291 14501 309 91 53 53 li Iiii 121 School Funds Education Fund Appeal F￿d 435 366 235 482 14641 161 131 458 382 245 18 li Consoldated Funds 1,036 14731 34 The Edvcation Fund was set up to provide funds to a55iSt the son5 of Old Sedber8hian51"OSs"I killed in the wars. It has slnce been widened to support primarity children of OSS without the means to attend Sedbergh. or indeed other pupils who are in need of financial support to attènd th• Sthool. The Appeal Fund was set up by the Governors In 1996 to fvnd various projects. induding the rai5in8 of fund5 for Scholarshlps and Bursaries to pupils attending the School. Ca5terton School restri¢t¢d fvnds. in¢luding the Rosalie Mary Forster Bursèry Fund. Casterton School Scholarship Fund and Casterton Old Gids A550Ciation. relate to funds transferred on the mer8er of Casterton and Sedbergh School. Charity Commission approval was obtained for these to be transferred from Casterton School to Sedber8h S¢hoctl. The Rosalie Mary Forster Bursary Fund remains a linked charity. 18c Unrestrlrted fvnds at ExpeNlltsm TNNsf•rs Re¥aluatlon Balance •t I Sept 2020 Insll10$5e51 31 Au8 2021 Re¥aluatlon Reser¥p Pensh)n Reserve 3.866 fjeneral Funds 10,6 16,574 117,6141 54 10,177 Bursary Fund- designated Local YOU￿ Peop￿.$ Fund Collingwgod and 8ayne5 Foundatlon 498 131 141 33 528 24 26 1201 1201 S¢lwol Funds Tradlng Company 14368 16.583 663 117.6221 17071 559 89 14,577 Iix)) Consolldated Funds 14.882 17,246 118,3291 559 14,447 46

SEDBERGH SCHOOL NOTE5 TO THE ACCOUNTS (contlnued) 31 August 2021 18 Unrestricled funds (continued) BalaTKe at IrKorne Ewpendltur¢ Tr•Trsfws Re¥aluatlon Other l Sept 2019 alnslllosses} B•In￿(lo$st$l YI Ayg 2020 eooo ReValuat￿fi Reserve Penskjn Reserve 3.866 3.866 12 1141 General Funds 10,608 17,(4)3 117,0411 161 10.600 Jrsary Fund- de518nated Local YouTr8 People's Fund ollin8wood and Baynes Found•t 477 Isi 24 498 25 24 1201 1201 S¢hogl Fundi Trading Company 14.956 17.012 117.047) 61 1141 14.968 1861 Consoltdated Funds 15.242 17.410 117.8171 61 1141 14.882 The Bursary Fund- designated. represents fijnds for Bursaries to pupils attending the School. not falllng Into the other funds. Local Youn8 People< Fund Is a lund to provide grants to local children pur5urn8 educational 8pal5. 19 Related partles aj Transuctions with Governors The followlng Governors had children attending the School dvring thè year= Numbtr of thlldre at the School Mrj D Campbell Mrj H B Warburton-Lee Total expense5 of £30012020: £4.8001 were paid to I12020= 91 Go¥erb)or. These were In respect of travel and subsistence. bj Transorti(Jns with subsidiories qnd 055WUte Transactions bwth Sedbergh School Developments Limited la ILYYA owned trading subsidiary of Sedber8h School) included expenditure of £0.45m12020- £0.Iml. As at 31 August 2021, Sedber8h School Developments Limited owed Sedbergh School £0.13m12020= £0.08ml. Amounts gift aided to Sedbergh S¢hool amounted to £nll12020.. £nlll. Durin8 2020 Sedbef8h khool Developments Lim￿ed was in feceipt of è loan facilty from the School amounting to £0.3m of which £0.27m was drawn down as at 31 August 202112020 £0.15ml. Interest Is charged on the loan at rate of 3% and th• loan is repayable in full by 2025. Transactions wth Sedber8h School International Lbmited la 100% owned trading subsidiary of Sedbergh School) included expenditure of £0.19m 12020= £0.16ml. As at 31 August 2021. Sedbergh S¢hoo1 International Limlted owed SedbÈr¥h S¢hool £0.003m {2020.' £0.C#J2ml. Amounts 8ift aided to Sedbergh School amounted to £0.087m 12020.. £0.12rn1. 47

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 TransactK)ns with Sedbergh Hotel Enterprise5 Limsted lan a551Xlate undertakingof Sedbergh School Developments Limited) included expenditure of £O.001m12020- £0.(M)4ml. Asat 31August 2021 £nil12020.. £nillwas due between entities. c) Sedbergh School Foundation The purpose of the Foundation is to promote or improve the educatlon gNen at Sedbergh School, or the facilities thereof, or the amenities thereof. or the well-belng of the pupils educated there, In relation to thelr education either at the S¢hool or at some other place of education. after leavin8 the School. The amount owed by Sedbergh khool Foundation as at 31 August 2021 was £O.IX)Im12020: £0.075ml. Grants from the Foundatiw amounted to £0.40rn12020.. £0.20m}. The School has a lease agreement wth the Foundation forthe rentsl of Guldrey Lodge. at a current rate of £52,000 p.a. Thi5 has been char8ed to the Ststement of Financial ArtT¥ities durin8 the year. The Tent 15 reviewed annually In Ilne with the specific terms of the lease a8reemenL dj The MichaelRobertson Seholorship Fund Mr A A P Flecl Principal of Sedber8h Sthool, was a trustee of the Michael Robertson Scholarship Fund l°MRSF"I until 19 July 2021 when he resigned. a registered charity Ino. 10143881. The main objective of the Fund 15 to further the educatTron of children attending Sedbefgh School . MRSF had assets of £6.3m In its latest publlshed accounts a5 at 31 Dtctmber 2020. Thèsè arn not includtd in the School's balante sheet. During the year the MRSF fvnded bursaries totslling £0.141m12020.. £0.22ml which have been included within donatlons (note 61. 20 Pension schemes The School'5 learhin8 5tHff belon8 to one prrrKipal pen51on 5rheme. the Teachers, Pension Scheme En8land and Wales ITrS'I. All full tlme and part time non-teaching staff are now eligible to join the Sedbei8h School Money Purchase Han. Teachers. Ptnslon Sthem• The School participate5 in the Teachers, Pension kheme 1.the TPS") for its teaching staff. The pension charge for the year include5 contributions payable to the TPS of £1.34m12020- £1.25ml and at the year-end £O.IOm12020.. £O.IOml was accrued Én respect of contributions to this stheme. The TPS is an unfunded multiemployer define(I benefits pension scheme governed by The Teachers, Pensions Re8ulations 2010 las amended) and The Tea¢hers' Pension kheme Regulations 2014 las amended). Members contribute on a "pay a5 VOU 80" b351S Wlth contribution5 from member5 and the employer bein8 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 Actuarfs Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuatlon Report whlch was published In Mard) 2019. confirmed that the èmployer contribution rate for the TPS would in¢rea5¢ from 16.4%to 23.6% frtsrn I September 2019. Employers are also required to p8y a scheme administration le￿ of 0.08% 8IVLn8 a totsl employer contribution rate of 23.68%. The 31 March 2016 Valuation Report was prepared in accordance with the benefits Set out in the scheme regulatlons 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 Edu¢ation prior to the ruling In the 'McaoudlSar8eant case,. Thi5 case ha5 required the courts to consider case5 regarding the implementation of the 2015 reforms to Public Service Pensions induding the Teachers, Pensions.

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 20 Pension sthemes (continued) On 27 June 2019 the Supreme Court denied the government permisslon to appeal the Court of Appeavs judgment that transitional provisions introduced to thè rèformed pension schemes in 2015 gave rise to unlawful age distrimlnation. Thè government t5 re5pertin8 the CourV5 decision and has said it will engage fully wlth the Employment Tribunal as well as employer and member representstNes to agree how the dlscrlmlnations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under whith members will be able to choose either legacy or reformed scheme benefts in respect of thwr 5eTvi¢e durin8 the period between l April 2015 and 31 March 2022 at the point they become payable. TheTPS is subjectto a cost cap mechanism which was put in place to proterttsxpayers against unforeseen changes in scheme costs. The Chief Secretary to the T￿asUry. havin8 in 2018 announced that there would be a review of this cost cap methanism. in January 2019 announced a pause to the cost cap mechanisrn following the Court of Appeal'5 rulin8 in the McCloudlSargeant case and until there is ￿rtaInty about the value of pensions to employees from April 2015 onwards. The pause was Itfted in July 2020. and a consultstion was Llurhched on 24 June on proposed changes to the cost control mechanism followin8 a review by the Govemment Actuary. Following public consultation. the Govemment have attepted three key proposals recommended by the Govemment Actuary. and are aimin8 to implement these chan8es in time for the 2020 valuations. In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become Inappropriate. In rhls scenario. a valuation p￿pared in accordance with revised benefits and suitably re￿Sed assumptions would yield different results than those contsined in the Actuarial Valuation. Until the c05t cap mechanisrn revision is completed it is not possible to condude on any financial impact or future ¢han8es to the contribution rates of theTPS. Accordingty no provision forany additional past benefit penslon costs is included In these financial statements. The Group Sell Invested Personal Penslon ISIPP) In May 2CQ9, the School opened 3 new 5elf-invested personal pension scheme for its non-teaching stsff. Employers, contribution5 are currentty paid at a minimum rate of S.OS% of employee's salary. Contributions bythe School to the scheme totalled £0.30m12020.. £0.26ml and the balance outstanding with the scheme was £nll 12020.. £35.(￿J0). Sedberyh School Penslon Fund The School also opèrates a defined bÈnÈfrt stheme in the UK for certain non-teaching staff. The last full actuarial valuation wa5 carried out as at 31 Au8USt 2018. The initial results of that valuation have been projected to 31 August 2021 by a qualified independent actuary. The major assumptions used by the actuary were.. 2021 Rate of increase of pensions in payment Discount rate Inflation assumption RPI Inflation a55UmPtion CPI 1.65 3.05 2.05 3.45 2.45 The mortality assumptlons adopted at 31 August 2020. imply the followin8 lrfe expe¢tan¢ies: 2020 Expected a8e at death of current pensioner at age 65- Male aged 65 at year end Female aged 65 at year end Expected age at death of future pensloner at age 65: Male a8ed 45 at year end Female a8ed 45 at year end 88.1 89.6 89.7 89.9 89.8 90.8 49

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 20 Penslon 5d￿ne$ (continued) Analysis of amount debitedllueditedl to the Statement of Financial Activitie5: 2021 2020 Str¥lce co Net interest Icredltllexpense rooo £'ooo Remeasurements ofthè net assèt Return of fund assets (excludin8 amount included in net interest) Actuarial losses Surplu5 on scheme not recognised Iiii 16 14 Total defined benefit cost 12 Cumulative attuarial10s5e5 amounted to £nll at 31 Au8U5t 2021 {2020.' £nill. Change5 In the fair value of plan assets and changes In present value of defined benefit obligatlon.. 2021 2021 Assets Liabllitie5 £'ooo 2021 Total Fair value of Scheme a55etslpreserbt Value of Iliabifrtiesl at beginning of period Contributions by employer 8enefits paid Interest incomellcostl Return on scheme asset5 lÈxtludin8 amoLFrtt irtdud￿ In Inttrèst expen5el Actuarlal Ilossesllgains 13621 122 {861 86 141 Falr value of Scheme assetslpresent value of Illabilrtiesl at end of period Surplus on scheme not recognised 401 11191 12821 119 11191 282 12821 50

SEDBERGH SCHOOL NOTES TO THE ACCOUNTS (continued) 31 August 2021 20 Pen5i¢)n $d￿Me$ Icontinuedj Change5 in the fair value of plan assets and ¢han8es In present value of defined benefit obligation.. 1020 2020 Assets LlabllttSes 2020 Total FaSr value of scheme assetslpresent value of Iliabilitiesl at ￿InnIng of period Contributions by employer 8eneflts paid Interest ineomelltostl Return on Scheme assèts l*xcludinÉ amount included in net interest expensel Acttsarlal Ilossesllgains 461 12 181 13551 106 12 161 li li 191 191 Fair value of Scheme a55etslprÈstnt value of Iliabilitiesl at end of period Surplus on scheme not reco8nised 13621 122 11221 11221 362 13621 The return on plan assets vias: 2021 Z020 eooo Interest Income Return on plan a55ets lexclyding amount induded in net interest expense) 141 li Total return on plan a55ets 19 The fair values of assets of the scheme were: 2021 2020 Corporates Gllts Current liability Cash 67 334 63 325 iii 97 Total market value of assets 401 The Fund has investments in the School or in property 0¢￿￿ed by the School. Contributions of Enll are expected for the year to 31 August 202212020= £nill- 21 Capital cornmftmefits At 31 August 2021 the School had capital commitments of £0.246m12020: £0.024ml. 51

5EDBERGH SCHOOI NOTES TO THE Accoumfs (continued) 31 August 2021 22 Commltments under operatlng leases The total future minimum lease payments under non-carKellable operating lease5 are a5 follow5: 2021 2020 Amounts due: Wlthin one year 8etween one and five years 89 131 97 183 220 52