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2020-08-31-accounts

COMPANY NO: 04243510 CHARITY NO: 1087839

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page
Governors, Officers and Advisers 1 - 2
Report of the Governors 3 – 12
Directors’ Report 3
Strategic Report 5
Statement of Governors’ Responsibilities 13
Independent Auditors’ Report 14 – 16
Statement of Financial Activities 17
Balance Sheets 18
Cash Flow Statement 19
Notes to the Financial Statements 20 – 38

READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

REGISTERED OFFICE & PRINCIPAL ADDRESS: Holme Park Sonning-on-Thames Reading RG4 6SU DIRECTORS: P Bertram * (Chairman) D Few Partner of Blandy & Blandy LLP P Gillibrand C Green (Appointed 15 June 2020) L Hague C Hubbard * C Litten * P Smith * (Deputy Chairman) Revd J Taylor[+] Ex-officio, Vicar of Sonning S Mount * L Hyde A Worrall H Williams *

The directors are also the Charity Trustees and Governors of Reading Blue Coat School.

OFFICERS Headmaster: P Thomas (Appointed 1 September 2020, formerly Second Master) J Elzinga (Resigned 31 August 2020) Bursar and Company Secretary: S A Jackson BANKERS: Lloyds TSB plc Market Place Reading Berkshire RG1 2EQ SOLICITORS: Blandy & Blandy LLP 1 Friar Street Reading RG1 1DA AUDITORS: Crowe U.K. LLP Aquis House 49 – 51 Blagrave Street Reading RG1 1PL

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

INSURANCE BROKERS:

INSURANCE BROKERS: Zurich Municipal Zurich House 2 Gladiator Way Farnborough Hampshire GU14 6GB WEBSITE: www.rbcs.org.uk

KEY MANAGEMENT: P Thomas Headmaster (Appointed with effect from 1 September 2020, formerly Second Master) J Elzinga Headmaster (Resigned with effect from 31 August 2020) E Trelinski Second Master (Appointed with effect from 1 September 2020) K Magill Deputy Head (Staff) G Williams Deputy Head (Pastoral) R Tidbury Deputy Head (Academic) S Jackson Bursar J Jarrett Director of Admissions & Marketing V Fangen Hall Development Director

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

The Governors present their annual report for the year ended 31 August 2020, in accordance with the Charities Act 2011 and the Companies Act 2006, thus including the Directors’ Report and Strategic Report under the 2006 Act, together with the audited financial statements for the year, and confirm that the latter comply with the requirements of the Companies Act 2006, the Company’s Memorandum & Articles of Association and the Charities SORP 2015.

DIRECTORS’ REPORT

REFERENCE AND ADMINISTRATIVE INFORMATION

Reading Blue Coat School (the Trust) is a charitable company limited by guarantee, company registration number 04243510 and charity registration number 1087839. In the event of the company being wound up, the liability of each member is limited to a maximum of £1.

Reading Blue Coat School was originally founded in 1646 by Richard Aldworth, to provide “education and upbringing” to children. The charitable company was incorporated on 29 June 2001 and registered as a charity on 2 August 2001.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The School is governed by its Memorandum and Articles of Association, last amended on 2 August 2001.

Governing Body

The members of the Governing Body are detailed on page 1. Two of the Governors are ex officio appointments, (one being vacant at this time). Other Governors are appointed initially by the Governing Body. They are then subject to election by members of the Company for a three year period at an Annual General Meeting. Retiring Governors are able to stand for re-election by the members.

Recruitment and Training of Governors

Potential Governors are identified by members of the Governing Body and considered against the Body’s specifications concerning eligibility, competence, specialist skills and local availability. Training is regularly offered to all Governors. Bespoke courses are held in conjunction with Governors’ meetings to address particular areas.

Organisational Management

The members of the Governing Body are legally responsible for the overall management and control of the School. The Governing Body meets three times a year. Much of the preparation for these meetings is undertaken by sub-committees ahead of each Governors’ meeting. Mr Bertram (Chairman) chaired the Executive Committee, dealing with legal, personnel and policy issues. The other principal committees are the Education Committee, chaired by the Headmaster and the Finance and General Purpose Committee, chaired by Mr Smith.

The day to day running of the School is delegated to the Headmaster, who is assisted in this by the Bursar and other members of the Senior Management Team. The Headmaster and Bursar attend meetings of the Governing Body and its Committees.

Group structure

The School has a wholly owned non-charitable subsidiary, Reading Blue Coat School (Trading) Limited.

Local community relationships and other charitable activities

The School is proud of its historic links with the town of Reading and the Ancient Parish of Sonning, as well as its more recent links with the Borough of Wokingham, and strives to build on and strengthen those links, so as to be recognised as an important member of the local community. The Aldworth Partnership is an umbrella term that covers all outreach and charitable work of the School, and it includes:

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)

The School has a partnership with Ankwanda Government School in Ghana. Blue Coat pupils have visited this school to work on a number of educational and development projects. The School also works closely with the charity Brass for Africa, and has organised trip to Uganda with this charity.

The School offers 14 (two per year group) full bursaries called Foundation Scholarships, as well as providing additional funds for other means-tested bursaries. The Reading Blue Coat School Charitable Trust provides additional funds for bursaries at Reading Blue Coat School.

PROVISION OF INFORMATION TO AUDITORS

The Governors are responsible for ensuring that the Governors’ Report and other information included in the annual report is prepared in accordance with company law in the United Kingdom.

So far as each of the Governors is aware at the time the report is approved:

AUDITORS

In accordance with Section 485 of the Companies Act 2006, a resolution proposing the appointment of Crowe U.K. LLP as auditors of the company will be put to the Annual General Meeting.

KEY MANAGEMENT PERSONNEL

The School’s key management personnel are listed on page 2.

The remuneration of key management personnel is set by the Chairman and the Board, with the policy objective of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the School’s success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that Reading Blue Coat School remains sensitive to the broader issues of pay and employment conditions elsewhere.

The School aims to recruit, subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of the School’s charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

STRATEGIC REPORT

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable objects

The main object, as set out in the charitable company’s Memorandum of Association, is the advancement of education by carrying on or managing schools for boys and girls under the age of 19 years, in which religious instruction, in accordance with the doctrines of the Church of England, shall be given.

The School’s policy is to provide an all-round education enabling pupils to achieve high academic standards and, through co-curricular activities, to develop character, the self-confidence and self-discipline to make them valued members of society. It is the long term policy of the School to maintain the number of free means-tested places (Foundation Scholarships) to reflect the original intention of its founders and benefactors.

STRATEGIES TO ACHIEVE THE PRIMARY OBJECTIVES

Objectives for the year

Strategies to achieve the year’s objectives

ACHIEVEMENTS AND PERFORMANCE

Academic Staff

Eight replacement teaching staff have been recruited.

Development of the Facilities

The School has undertaken the following during the reporting period:

Grant-making

This year, the value of academic scholarships made, based on individuals’ academic ability, was £57,000 ( 2019: £57,000 ). The value of means-tested bursaries made to the School’s pupils amounted to £778,497 ( 2019: £688,089). A maximum of 14 full Foundation Scholarships are available at the School. The Governors’ policy is to make these awards on the basis of the individual’s educational ability, subject to means testing.

Fundraising performance

During the year the Development Office, now re-named the Foundation Office has continued to make progress in establishing the office and its associated activities at Reading Blue Coat. The aim of the Foundation Office has not changed, and the office continues to focus on developing a voluntary fundraising programme for the School in line with its charitable aims of managing a School for boys and girls under the age of 19.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

For the year, donations totalled £461,736 (2019: £253,299) ; including unrestricted funds of £13k and restricted funds for the provision of bursaries of £212k. Of this, £138,000 (2019: £125,000) was received from Reading Blue Coat School Charitable Trust to fund means-tested bursaries to pupils.

There is no change to how fundraising activities for the School are conducted. All are carried out by School staff and volunteers from the parent body, pupils and alumni are not currently assisting with fundraising events. The School does not use professional fundraisers or have any commercial participators. All fundraising activities are managed by the Foundation Director with overall management by the Headmaster and oversight by the Governing Body.

No complaints relating to fundraising activities have been received by the School during this reporting period. The School has in place a complaints procedure that would be followed in the event of one being received. Depending on the nature of the complaint, the initial response is the responsibility of the Headmaster or the Bursar. The complaints procedure is available on the School website.

During the past year, the School enrolled in the Fundraising Preference Service and is now registered with the Fundraising Regulator. The School was due to launch a fundraising campaign in May 2020, but due to the COVID-19 pandemic this has been delayed until 2021. The School continues to comply with the Code of Fundraising Practice published by the Fundraising Regulator and its own Fundraising Policy, ensuring best practice is upheld. The School continues to be a member of the Institute of Development Professionals in Education (IDPE) which keeps the Foundation Office up to date with changes to industry standards.

The School has set up appropriate standards for the operation and management of its fundraising activities. In particular, the School considers its processes and controls will ensure vulnerable people and other member of the School’s community are protected from any unreasonable intrusion and that no fundraising activity will be excessively persistent or place undue pressure on a person to give money or property.

OPERATIONAL PERFORMANCE OF THE SCHOOL

On taking over from Jesse Elzinga as Reading Blue Coat’s 25[th] Headmaster,, Pete Thomas noted a review of the year seems not only appropriate, but necessary. Covid’s fingers of influence have been pretty searching and have necessitated a pausing of some projects and an enormous amount of work from staff to ensure the School is ready for academic year 2020-21 and all it will bring! The overriding aim has always been, and will remain, to provide a first class, great value education for the young people entrusted to our care. ‘Enquiring minds, adventurous spirits’ is a strapline for some of the material we are producing in the Marketing office, and it certainly captures the essence of what I want Blue Coat pupils to develop. This goes alongside kindness, a quality expected of every member of our community.

Along with all other schools, RBC closed its doors to the pupils and staff on March 20[th] as lockdown commenced. Apart from a few days with Year 10 and 12 pupils before the end of the summer term, or a handful of key worker children who we supervised throughout lockdown, it was 171 days before we returned as a whole school community on September 7[th] ! In the intervening months, learning went online. The staff and students responded so positively to this need, moving from the traditional ‘up at the front of the classroom’ style to ‘in front of the screen’ over the course of a weekend. Alongside the virtual academic lessons, PE and Games, a TEDx style event, staff interviews, parents’ evenings, music and drama, an art exhibition, tutorials and assemblies, even Speech Day, all became streamed events. Recognising the opportunities that virtual events bring we have invested in camera and sound equipment that has already reaped benefits in the professionalisation of the School’s events that are now routinely broadcast.

With lockdown came many questions, perhaps the most pressing of which was how exams and assessing pupils would occur. The assessment method decided upon by Ofqual is well documented in the Media. For Reading Blue Coat, as anticipated, it led to historically superb results at A Level and GCSE, but with individual pupils who did not fare so well it left the School in the firing line in a way not seen before.

At A Level, results almost touched the 80% A-B heights seen a few years ago and this is a figure that is our target, although not one I view as a ceiling. At GCSE, the percentage of pupils receiving A-B was 93.6, our highest ever, with a number of pupils achieving a clean sweep of top grades.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

As Covid struck in March, the pause button was pressed on some building projects. The old coach house, which had lain dormant for several years, was almost a completed ‘Innovation Centre’; three smaller classrooms that will be invaluable for our growing Sixth Form teaching and which we hope, with Governors’ approval, might be completed for the New Year. The Grounds, Maintenance and Activity Centre (GMAC) was ready ahead of schedule and is already proving to be a tremendous asset in the bid to ensure our 45 acre site remains a jewel in the Berkshire countryside.

The Performing Arts Centre (PAC) planning was reaching a fairly advanced stage but, again, rightly paused with lockdown. When we begin to move forward again on this project is a significant decision and is being discussed regularly by the Senior Leadership Team (SLT) and the Governors..

The Foundation Office, led by Victoria Fangen-Hall, has continued to work hard to engage the Old Blues’ community. The launch of our fundraising campaign, scheduled for May this year, was postponed and is now anticipated to be March 2021. Exactly how that launch will work might depend on the state of the pandemic, but its focus is fixed: to raise funds for the PAC (10% of the total cost is the target) and to increase the Foundation’s financial pot so that the amount available for bursarial support is doubled over the next ten years.

Positively, despite the greatest restrictions ever faced, school numbers are their highest ever. 786 pupils started the year, 31 up on the 755 we had as the summer term closed. We also welcomed 17 new staff to the School who bring great energy, ideas, experience and enthusiasm that we hope will be passed on to the pupils each day. Life and community in Covid has complications and inconveniences, but the pupils are adapting well and spirits are buoyant. We are conscious of the significant strain that the extra logistics place on our staff, and we are working hard to understand where pinch points exist and how we can alleviate them. It is more important for the school than ever to acknowledge the tremendous job the teaching and non-teaching staff are doing and we will do our utmost to encourage and enable them to keep doing so. We are in this for a long haul.

Comment from the new Headmaster

We moved as a family in early August and are very thankful for being able to live in a wonderful house in an extraordinary site. I am very grateful too for having been given the privilege of leading Reading Blue Coat; thank you for your confidence in me and for all that you do collectively in helping to guide the School. I look forward to working with you in the years ahead.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The COVID-19 pandemic had a considerable effect on the School. As a result the total net incoming resources were £559,493 (2019:£928,955) for the year. In order to provide the School with sufficient headroom to manage risks a Corona Virus Business Interruption Loan (CBIL) of £1,500,000.00 was taken out in July. So at the end of the year the School’s surplus was £543,429 ( 2019: £859,181) in respect of unrestricted funds for the year. This surplus is required to provide both headroom in the current academic year as well as in academic year 2020/21. Some surplus is required to finance future capital expenditure to achieve our objective of continually improving the School's facilities.

Investment policy and objectives

The Board aims to maximise the total investment return within the objectives of maintaining income, while continuing to preserve the real value of endowed investments and to maximise income on temporarily invested restricted funds. The Board also aims to match the return on invested Advanced Fee Scheme monies in line with the maturation profile of the related liability to provide schooling in future years.

The Investment Sub-committee continues to manage investments within its medium to long term investment strategy as defined in the School’s investment policy.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

RESERVES LEVEL AND POLICY

The School’s funds are held to maintain the leasehold property and to cover normal fluctuations in working capital. The School’s assets including the CBIL are sufficient to meet its known and ongoing obligations. The School aims to maintain the following:

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

PUBLIC BENEFIT

In furtherance of these objectives Reading Blue Coat School Governors, as charity trustees, have complied with their duty in s.17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s published general guidance concerning the operation of the public benefit requirement under that Act. A summary of the public benefit offered is as follows:

Means Tested Assistance: Around £778,497 ( 2019: £688,089 ) was spent on means-tested support which was 6.1% of the School’s gross fee income. Assistance was provided in the form of 43 bursaries and 13 Foundation Scholarships, i.e. a total of 56 or 7% of the pupil’s received some support. Foundation Bursaries cover 100% of the school fees and also provide some additional assistance with costs.

Funding Arrangements : RBCS has a funding arrangement in place with Reading Blue Coat School Charitable Trust.

Aldworth Partnership : The Aldworth Partnership is the umbrella term for student led outreach work by RBC in the local area & local community. Pupils participate in local service by teaching in local primary schools and running on site visits to benefit from our facilities at Blue Coat. Pupils are also active in the international community through the RBC partnership school in Ghana, links with the charity Brass for Africa, and also through Wilderness Expertise trips. Currently pupil participation is strong (c.30%) and the aim is for all pupils to be involved in some sort of service or outreach work during their time at Blue Coat. All pupils fundraise through their houses and all proceeds go into the Aldworth Partnership fund, which provides equipment to be used in the partnership schools. A student-led committee, led by Aldworth Partnership prefects, help oversee fundraising activities. According to the ‘Justgiving’ website, we are in the top 1% of all fundraising organisations in the country based on how much we donate to charity every year.

Regular aspects of the Aldworth Partnership in the past year included the following in terms of local service:

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READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

Use of the Facilities by State Schools :

FUTURE PLANS

The Board’s current five year strategic plan, reviewed on an annual basis, has the following key objectives:

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020

RISK MANAGEMENT

The Governing Body continue to keep the School’s activities under review, particularly with regard to any major risks that may arise from time to time. Apart from the risks associated with COVID-19 which are dealt with below, the risks that the Governors identify are reviewed, and systems or procedures are put in place to manage those risks. The principal threats that the Governors have considered and met are as follows:

The School has managed to finance the required increase in contributions to the Teacher’s Pension during the academic year having made provision for it last year. The Finance & General Purpose Committee continues to monitor the situation and affordability of the Teacher’s Pension scheme.

COVID-19

The School continues to react to the COVID-19 pandemic in accordance with the Government’s advice. Including, but not limited to, taking the following actions;

The Governors have also carried out and have maintained a robust assessment of the risks facing the school in light of the COVID-19 pandemic. Additional meetings of the Finance & General Purpose Committee were convened in the summer term. Detailed Cash flow forecasts were produced and reviewed and a number of downside sensitivities have been considered to understand the impact on liquidity. The School identified that it could end the year in deficit and in order to manage this the following activity took place:

The CBIL was taken out as conditions over the coming months might deteriorate once again and could lead to lower than the expected cash flows as considered in the various scenarios.

Overall and despite the current circumstances the Governors believe that the School's financial resources and contingency planning is sufficient to ensure the ability of the school to continue as a going concern for the foreseeable future

Principal risks and uncertainties

The School has worked hard to maintain the academic provision and a safe and healthy workplace in the face of the corona virus pandemic.

The SLT and Governing Body is working (largely through the Education Sub-committee) to ensure that academic results are not only maintained but improved, especially at A Level.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2020 The School is working hard to control increases in costs in order to maintain its financial flexibility. In addition new ways lo maintain the surplus will be developed. such as additional ancillary educational activit￿s. lettings and fund ralslng. The Goveming Body is satisfied that for all major risks identified for the group appropriate controls have been put in p18¢e and maintained lo miligale those risks adequalely.11 is recognised that systems can provide only reasonable but not absolute assurance that major risks have been managed. This Annual Report. prepared vnder the Charities Act 2011 and the Companies Act 2006, was approved by the Goveming Body of the Reading Blue Coat Sch¢)ol on .1 DeccThiLo er 20 10 including in their capacity as company directors approving the Strategic Report contained therein, and Is signed as aulhorised on ils behalf by.. On behalf of the Governors I would like to thank both the Teaching and Support staff for their hard work and incredible results which were achieved during the real difficulties and hardships imposed by the Covid-19 pandemic. P Bertram Chalrman of Govemors Page 12

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2020

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

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Governors are required to:

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Crowe U.K. LLP

Chartered Accountants Member of Crowe Global Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL, UK Tel +44 (0)118 959 7222 Fax +44 (0)118 958 4640 www.crowe.co.uk

INDEPENDENT REPORT OF THE AUDITORS’ TO THE MEMBERS OF READING BLUE COAT SCHOOL

Opinion

We have audited the financial statements of Reading Blue Coat School for the year ended 31 August 2020 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Crowe U.K. LLP is a limited liability partnership registered in England and Wales with registered number OC307043. The registered office is at 55 Ludgate Hill, London EC4M 7JW. A list of the LLP’s members is available at the registered office. Authorised and regulated by the Financial Conduct Authority. All insolvency practitioners in the firm are licensed in the UK by the Insolvency Practitioners Association. Crowe U.K. LLP is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and independent legal entity. Crowe U.K. LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other member of Crowe Global.

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INDEPENDENT REPORT OF THE AUDITORS’ TO THE MEMBERS OF READING BLUE COAT SCHOOL

Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the governors’ report.

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

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INDEPENDENT REPORT OF THE AUDITORS’ TO THE MEMBERS OF READING BLUE COAT SCHOOL

Responsibilities of governors

As explained more fully in the governors’ responsibilities statement on page 13, the governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the governors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Use of report

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

Janette Joyce Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

Aquis House 49-51 Blagrave Street Reading RG1 1PL

Date: 16 December 2020

Page 16

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
INCOME AND ENDOWMENTS
FROM:
Income from charitable activities
School fees receivable
4
Ancillary trading income
5
Other trading activities:
Bank interest
Non-ancillary trading income
6
Trading income
7
Donations
8
Total
EXPENDITURE ON:
Charitable activities
School operating costs
Raising funds
Trading expenditure
7
Financing and other costs
9
Total
10
Net income
Transfer between funds
Net income after transfer
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
11,363,667
692,377
6,547
41,127
88,742
249,012
12,441,472
11,779,776
6,952
115,475
11,902,203
539,269
4,160
543,429
13,565,001
£ 14,108,430		 Restricted
funds
£
-
-
-
-
-
212,724
212,724
192,500
-
-
192,500
20,224
(4,160)
16,064
2,938,092
£ 2,954,156		 Total funds
2020
£
11,363,667
692,377
6,547
41,127
88,742
461,736
12,654,196
11,972,276
6,952
115,475
12,094,703
559,493
-
559,493
16,503,093
£ 17,062,586		 Total funds
2019
£
11,814,756
874,332
11,439
16,080
149,305
253,299
13,119,211
12,031,725
43,272
115,259
12,190,256
928,955
-
928,955
15,574,138
£ 16,503,093

The notes on pages 20 to 38 form part of these financial statements

Page 17

READING BLUE COAT SCHOOL IA COAIPANY LIMITED BY GUARANTEEI CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 AUGUST 2020 COMPANY REGISTERED NUMBER: 04243510 Group Charfty Nolts 2020 2019 2020 2019 FIXED ASSETS Tangible assets Investments 14 15 20,23S,183 19,397.953 20,235,183 19,397,953 CURRENT ASSETS Deblors Cash In haThJ 16 353,691 2 507 784 432,262 423,294 2353 122 495,78Y 1344 013 2.861,475 I,9￿,?49 2,776,416 1,839.800 CURRENT LIABILITIES CREDITORS.. Amounts falling due within one year 17 3 834 223 599 778 NET CURRENT LIABIUTIES 07 1 759 978 TOTAL ASSETS L&8S CURRENT LIABILITIES 19,25fj,768 17,741,610 19,177.378 1T,637,977 CREDITORS.. Amounts fallin9 due after more than one year 18 IB2 1 238 517 TOTAL NET ASSETS UNRESTRICTED FUNDS General Funds 22a 14,067,284 13,530,650 13,987,894 13,427.017 DESIGNATEO FUNDS 22b 41,146 34,351 41.146 34,351 RESTRICTED FUNDS (includes a revalualion reserve of £2,798,400) 22c TOTAL FUNDS The profil for the financial year deart within the financial statements of the parent company was £583.736 (2019.. £937.048). th Approved by the Board of Governors on.. I tK3cffibK 20 20 and signed on its behalf by.. P A Smith Governor The notes on pages 20 to 38 form part of these financial statements Page 18

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Cash flows from operating activities
Net income for the year (as per Statement of Financial
Activities)
Interest receivable
Depreciation
Loss on disposal of fixed assets
Impairment of fixed assets
Decrease/ (increase) in debtors
Deferred purchase release
(Decrease)/increase in creditors
Interest paid
Cash generated by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Cash flows used in investing activities
Cash flows from financing activities
Hire Purchase capital repayments
Interest paid
Net movement of advance fee contracts
New bank loans in the year
Bank loan payments in the year
Cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2020
£
559,493
(6,547)
948,838
-
23,016
78,571
(67,120)
(95,362)
72,048
1,512,937
(1,740,514)
6,547
(1,733,967)
(27,793)
(72,048)
211,270
1,500,000
(400,502)
1,210,927
989,897
1,517,887
£ 2,507,784		 2019
£
928,955
(11,439)
883,859
50,529
-
(41,322)
(67,120)
470,129
95,895
2,309,486
(1,107,350)
11,439
(1,095,911)
(4,158)
(95,895)
66,673
-
(376,655)

(410,035)
803,540
714,347
£ 1,517,887

The notes on pages 20 to 38 form part of these financial statements

Page 19

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. COMPANY INFORMATION

The School’s principal activity in the year under review was the advancement of education by carrying on or managing schools for boys and girls under the age of 19 years. The incorporated charity (registered number 04243510 and charity number 1087839), is incorporated and domiciled in the UK. The address of the registered office is: Holme Park, Sonning-on-Thames, Reading, RG4 6SU

2. ACCOUNTING POLICIES

a) Accounting convention

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

Reading Blue Coat School meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b)

Going concern

Cash flow projections have been prepared for both the School and the Trading Company up to December 2021. These projections and the assumptions on which they are based were presented to the Finance Committee at their meeting on 23[rd] November 2020. After careful review and discussion, the Governors agreed that, based on the financial models presented, both the School and the Trading Company have sufficient financial resources, and contingency planning is adequate to ensure the ability of both entities to continue as a going concern for the foreseeable future.

COVID-19

At the time of approval of the Annual Report, the COVID-19 pandemic continues to evolve and the long term impact on the School, in common with other businesses, is unknown. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as employment of staff. Cash flow modelling together with sensitivity scenario’s indicate that the cash reserves of the School are adequate to meet its obligations as they fall due. Accordingly, the Governors believe the School’s financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

c) Group financial statements

These financial statements consolidate the results of the charity and its subsidiary Reading Blue Coat School (Trading) Limited on a line by line basis.

No separate Statement of Financial Activities has been presented for the charity as permitted by Section 408 of the Companies Act 2006. The surplus of income and expenditure for the charity (excluding Trading) for the year was £583,736 (2019: £937,048) .

d) Income

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Page 20

(A COMPANY LIMITED BY GUARANTEE)

READING BLUE COAT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

e) Fees and similar income

Fees receivable and similar income are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships, bursaries and other remissions granted by the School.

f) Donations policy

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the School is considered probable.

Voluntary income for the School’s general purposes is accounted for as unrestricted and is credited to the General Fund. Where the donor or an appeal has imposed trust law regulations, voluntary income is credited to the relevant restricted fund. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the School in the case of donated services or facilities

Grants ( and in particular the CJRS grant) are accounted for under the performance model as permitted by the Charity SORP. CJRS grant income is therefore recognised on a straight line basis over the furlough period for each relevant employee.

g) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer term liabilities.

Expenditure is allocated to expense headings either on a direct cost basis, or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expenses to which it relates.

h) Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost less accumulated depreciation.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:-

Leasehold land and buildings - 125 years
New Buildings (including
mechanical and electrical fittings) - 40 years
Improvement to existing buildings - 20 years
Furniture and equipment - 5 years
Plant, machinery and equipment - 5 years
Motor vehicles - 5 years
Computer equipment - 3 years

Assets under £1,000 are expensed to the Statement of Financial Activities.

i)

Lease commitments

Operating leases are charged to the Statement of Financial Activities in the year in which they are incurred.

,

Page 21

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2. ACCOUNTING POLICIES (continued)

Assets obtained under finance leases are capitalised within the balance sheet and are depreciated over their useful economic lives. The interest element of the lease is normally charged to the statement of financial activities account over the lease period. The capital element of the future payments is treated as a liability.

j) Pension

The School contributes to the Teachers’ Pension Defined Benefits Scheme at rates set out by the Scheme Actuary and advised to the Board by the Scheme Administrator. The scheme is a multiemployer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the School. In accordance with FRS102 therefore, the scheme is accounted for as a defined contribution scheme.

The School also operates defined contribution group personal pension scheme for non-teaching staff. This includes an auto enrolment arrangement. Contributions to the schemes are charged in the SOFA as they become payable, in accordance with the rules of the schemes.

k) Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

l)

Unrestricted General Funds

These are funds which can be used in accordance with the charitable objects at the discretion of the Directors.

m) Designated Funds

These are funds that have been set aside by the directors for particular purposes. The aim of the designated funds is set out in the notes to the financial statements.

n) Restricted Funds

These are funds that can only be used for specific restricted purposes within the objects of the charity as laid down by the donor. Expenditure which meets this criteria is charged to the fund. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

o)

Financial instruments

Basic financial instruments include cash, debtors and creditors. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost. Note 26 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all creditor balances excluding deferred income

p)

Advance Fee Scheme creditors

Amounts received under the School’s Advance Fee Scheme contracts for education not yet utilised to settle school fees are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years.

Page 22

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

READING BLUE COAT SCHOOL

q) Pupil deposits

The Governors have reviewed the contract terms under which Pupil fee deposits are held by the School. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the School, pupils can leave at earlier dates. The School does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet date and, in line with the requirements in FRS 102, the balance of the deposits held at 31 August have been included within current liabilities.

3. SIGNIFICANT JUDGEMENTS AND ESTIMATES

In the application of the charity’s accounting policies, which are described in note 2, trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The Trustees consider that there are no material judgements in applying accounting policies or key sources of estimation uncertainty.

4.

5.

6.

SCHOOL FEES

The School’s fee income comprised:
Gross fees
Less: Discounts
Scholarships and bursaries
ANCILLIARY TRADING INCOME
School trips
School lunches
Registration fees
Exam fees
Miscellaneous
NON-ANCILLIARY TRADING INCOME
Rents and lettings
Insurance claims
OFGEM payment
Miscellaneous		 2020
£
12,320,114
(154,067)
(802,380)
£11,363,667
119,643
381,448
42,700
91,892
56,694
£
692,377
2020
£
5,363
18,098
11,720
5,946
£
41,127		 2019
£
12,660,375
(141,461)
(704,158)
£11,814,756
144,591
486,180
51,100
99,200
93,261
£
874,332
2019
£
12,630
-
-
3,450
£
16,080

Page 23

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

7. TRADING INCOME AND EXPENDITURE

The School owns 100% of Reading Blue Coat School (Trading) Limited (company number 4242660). It’s registered office is as per Note 1. This company manages the external lettings of the School’s facilities. A summary of the results of the subsidiary is shown below:

Turnover
Cost of sales
Gross Profit
Administration Expenses
Tax Payable
Surplus pre gift aid paid
Retained earnings at the beginning of the year
Profit for the year
Gift aid donation
Retained earnings at the end of the year		 2020
£
88,742
(118)
88,624
(9,234)
-
79,390
103,633
79,390
(103,633)
£
79,390		 2019
£
149,305
(38,482)
110,823
(7,190)
-
103,633
111,726
103,633
(111,726)
£ 103,633

Administration costs include a management charge from the School of £2,400 ( 2019: £2,400 ) which is eliminated on consolidation.

The aggregate amount of share capital and reserves of Reading Blue Coat School (Trading) Limited as at 31 August 2020 was £79,392 (2019: £103,635).

8. DONATIONS

A total of £461,736 ( 2019: £253,299) was included in donations, including a total of £212,474 restricted for bursaries ( 2019: £185,968) . £237,861 (2019: Nil) was received as part of the Coronavirus Job Retention Scheme government grant.

9. FINANCING AND OTHER COSTS

Bank and loan interest
Other finance costs		 2020
£
72,048
43,427
£ 115,475		 2019
£
95,895
19,364
£ 115,259

Page 24

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

10. TOTAL RESOURCES EXPENDED-GROUP 2020

Staff costs
Depreciation
Other
Total
2020
Charitable
activities
£
£
£
£
School operating
costs:
Teaching costs
6,242,148
-
533,615
6,775,763
Welfare costs
177,365
180,241
669,976
1,027,582
Premises costs
432,290
768,597
1,043,082
2,243,969
Support costs of
schooling
1,341,341
-
583,621
1,924,962
8,193,144
948,838
2,830,294
11,972,276
Expenditure on
raising funds
Trading expenditure
-
-
6,952
6,952
Financing and other
costs (Note 9)
-
-
115,475
115,475
-
-
122,427
122,427
Total resources
expended
£ 8,193,144
£
948,838
£2,952,721
£12,094,703
2019 COMPARATIVE
Staff costs
Depreciation
Other
Total
2019
£
£
£
£
School operating
costs:
Teaching costs
5,949,596
570,319
6,519,915
Welfare costs
166,250
164,982
856,709
1,187,941
Premises costs
411,713
718,877
1,103,308
2,233,898
Support costs of
schooling
1,298,752
-
791,219
2,089,971
7,826,311
883,859
3,321,555
12,031,725
Expenditure on
raising funds
Trading expenditure
-
-
43,272
43,272
Financing and other
costs (Note 9)
-
-
115,259
115,259
-
-
158,531
158,531
Total resources
expended
£ 7,826,311
£
883,859
£3,480,086
£12,190,256
11.
NET INCOME/(EXPENDITURE) – GROUP
2020
Net income is stated after charging:
£
Depreciation
- Owned assets
923,715
- Assets on HP
25,123
Auditors’ remuneration
- Audit and accountancy services
16,600
- Other services
2,080
Operating leases
133,090
Included in support costs aregovernance costs of £18,948_(2019: £19,160)._		 Total
2020
£
6,775,763
1,027,582
2,243,969
1,924,962














Total
2019
£
6,519,915
1,187,941
2,233,898
2,089,971
12,031,725
43,272
115,259
158,531
£12,190,256
Total
2018
£
6,216,493
1,194,778
2,037,281
1,925,691
11,374,243
43,582
151,325
194,907
£11,569,150
2019
£
881,364
2,495
16,600
1,050
132,687

11,972,276

6,952
115,475

122,427

£12,094,703

Total
2019
£
6,519,915
1,187,941
2,233,898
2,089,971
12,031,725
43,272
115,259
158,531
£12,190,256

Page 25

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

12. STAFF COSTS

2020
£
Wages and salaries
6,322,152
Social security costs
646,261
Other pension costs
1,224,731
£ 8,193,144
ncluded in wages and salaries is £11,720 of settlement costs_(2019: £11,430)._
No.
The average number of employees in the year was:
Teaching
84
Welfare
15
Premises
12
Support
69
180
2020
The following number of employees exceeded £60,000 emoluments:
£60,000 - £70,000
2
£70,000 - £80,000
2
£80,000 - £90,000
1
£90,000 - £100,000
1
£100,000 - £110,000
1
£160,000 - £170,000
1
The number of higher paid employees in the Teachers’
Superannuation scheme
6
The number of higher paid employees in a Defined
Contribution scheme
2
Total cost of Employer’s contributions in relation to the above
151,284		 2019
£
6,260,785
644,017
921,509
£ 7,826,311
No.
89
15
12
67
183
2019
3
2
-
1
1
1
6
2
120,666

Included in wages and salaries is £11,720 of settlement costs (2019: £11,430).

None of the Governors received remuneration, reimbursement of expenses or other benefits in the year ( 2019: Nil).

Key management personnel comprise the Governors and the key management personnel listed on page 2. They received aggregate remuneration (including employer’s pension and employers national insurance) of £965,910 (2019: £891,433).

13. TAXATION

Reading Blue Coat School is a charity and entitled for the current year to the exemptions provided by Section 505 Income and Corporation Tax Act 1988.

Page 26

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

14a. TANGIBLE FIXED ASSETS – GROUP

COST:
At 1 September 2019
Additions
Impairment
Transfers
At 31 August 2020
DEPRECIATION:
At 1 September 2019
Charge for the year
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Leasehold
land and
buildings
£
3,300,000
-
-
-
3,300,000
475,200
26,400
501,600
£ 2,798,400
£ 2,824,800		 RBCS’
buildings
£
15,345,162
-
(18,216)
1,943,723
17,270,669
3,523,107
481,832
4,004,939
£ 13,265,730
£11,822,055		 Assets
under
construction
£
1,166,099
1,494,766
(4,800)
(1,943,723)
712,342
-
-
-
£
712,342
£ 1,166,099		 Improvements
to
buildings
£
4,983,411
86,857
-
-
5,070,268
1,683,643
260,365
1,944,008
£ 3,126,260
£ 3,299,768		 Furniture,
Fixtures &
Fittings
£
397,145
31,730
-
-
428,875
323,559
32,959
356,518
£
72,357
£
73,586		 Plant,
Machinery &
Equipment
£
2,607,147
195,731
-
-
2,802,878
2,403,552
142,839
2,546,391
£
256,487
£
203,595		 Motor
vehicles
£
39,283
-
-
-
39,283
31,233
4,443
35,676
£
3,607
£
8,050		 Total
£
27,838,247
1,809,084
(23,016)
-
29,624,315

8,440,294
948,838

9,389,132

£ 20,235,183

£ 19,397,953

All assets are stated at cost except the leasehold land and buildings.

The above valuation of £3,300,000 for the School’s 125 year lease of its land and buildings was carried out by Dunster and Morton in March 2000. The historic cost is £1.98m.

The net book value of assets held under finance leases or hire purchase contracts included above in 2020 total £53,426 (2019: £9,979) .

Page 27

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

14b. TANGIBLE FIXED ASSETS – CHARITY

COST:
At 1 September 2019
Additions
Impairment
Disposals
Transfers
At 31 August 2020
DEPRECIATION:
At 1 September 2019
Charge for the year
Depreciation on disposal
At 31 August 2020
NET BOOK VALUE
At 31 August 2020
At 31 August 2019		 Leasehold
land and
buildings
£
3,300,000
-
-
-
-
3,300,000
475,200
26,400
-
501,600
£ 2,798,400
£ 2,824,800		 RBCS’
buildings
£
15,345,162
-
(18,216)
-
1,943,723
17,270,669
3,523,107
481,832
-
4,004,939
£ 13,265,730
£ 11,822,055		 Assets
under
construction
£
1,166,099
1,494,766
(4,800)
-
(1,943,723)
712,342
-
-
-
-
£
712,342
£1,166,099		 Improvements
to buildings
£
4,983,411
86,857
-
-
-
5,070,268
1,683,643
260,365
-
1,944,008
£ 3,126,260
£ 3,299,768		 Furniture,
Fixtures &
Fittings
£
397,145
31,730
-
-
-
428,875
323,559
32,959
-
356,518
£
72,357
£
73,586		 Plant,
Machinery &
Equipment
£
2,588,915
195,731
-
-
-
2,784,646
2,385,320
142,839
-
2,528,159
£
256,487
£
203,595		 Motor
vehicles
£
39,283
-
-
-
-
39,283
31,233
4,443
-
35,676
£
3,607
£
8,050		 Total
£
27,820,015
1,809,084
(23,016)
-
-
29,606,083

8,422,062
948,838
-
9,370,900

£ 20,235,183

£ 19,397,953

All assets are stated at cost except the leasehold land and buildings.

The above valuation of £3,300,000 for the School’s 125 year lease of its land and buildings was carried out by Dunster and Morton in March 2000. The historic cost is £1.98m.

The net book value of assets held under finance leases or hire purchase contracts included above in 2020 total £53,426 (2019: £9,979)

Page 28

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

15.
INVESTMENTS
Group
2020
£
Reading Blue Coat School
(Trading) Limited
-
£
-
16.
DEBTORS
Group
2020
£
Fees receivable
75,574
Other debtors
168,226
Prepayments and accrued income
109,891
Amounts due from subsidiary
undertakings
-
£ 353,691
17.
CREDITORS:Amounts falling due within one year
Group
2020
£
Bank loan (note 18)
477,175
Trade creditors
143,143
Fees in advance
1,319,117
Deposits repayable
503,350
Deferred income - Advanced
fees (note 19)
562,731
Hire Purchase Leases
21,126
Other creditors
211,199
Social security & other taxes
168,835
Accruals & deferred income
366,094
Deferred purchase creditor
67,120
£ 3,839,890		 Group
2019
£
-
£
-
Group
2019
£
70,809
34,153
327,300
-
£ 432,262
Group
2019
£
400,502
178,529
1,268,703
452,650
329,691
2,079
159,682
169,185
578,351
67,120
£ 3,606,492		 Charity
2020
£
2
£
2
Charity
2020
£
75,574
154,148
109,891
83,681
£ 423,294
Charity
2020
£
477,175
143,143
1,319,117
503,350
562,731
21,126
211,199
168,835
360,427
67,120
£ 3,834,223		 Charity
2019
£
2
£
2
Charity
2019
£
70,809
16,530
327,300
81,148
£ 495,787
Charity
2019
£
400,502
178,529
1,268,703
452,650
329,691
2,079
159,682
166,971
573,851
67,120
£ 3,599,778

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READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18. CREDITORS: Amounts falling due after more than one year

Bank loan (see below)
Advanced fees (see Note 19)
Hire Purchase Lease
Deferred purchase creditor		 Group
2020
£
1,941,204
157,888
27,967
67,123
£ 2,194,182		 Group
2019
£
918,379
179,658
6,237
134,243
£ 1,238,517		 Charity
2020
£
1,941,204
157,888
27,967
67,123
£ 2,194,182		 Charity
2019
£
918,379
179,658
6,237
134,243
£ 1,238,517

The School has two bank loans with Lloyds TSB. Both loans are secured by a legal charge over the leasehold properties.

The balance of the first loan at the 31[st] August 2020 is £918,379 (2019: £1,316,881). This loan has interest charged at a fixed rate of 6.3%., and it is due for repayment in September 2022.

In July 2020, a CIBLS loan of £1.5million was drawn down. No capital repayments or interest are due on the loan until July 2021. The loan will then have interest charged at a rate of base plus 1.06%. The loan is due for final repayment in July 2026.

The maturity of the bank loans are analysed as follows:

Within one year
Between one and two years
Between two and five years		 2020
£
477,175
791,204
1,150,000
2,418,379		 2019
£
400,502
427,175
491,203
1,318,881

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READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19. DEFERRED INCOME - ADVANCED FEES

Parents may pay lump sums to the School as advance payment of future fees. Assuming pupils remain in the School, advance fees received will be applied as follows:

Within one year
Within 2 to 5 years
The balance represents the accrued liability.
The movements in the period were:
Balance at 1 September 2019
Receipts from contracts
Discounts allocated
Advance fees utilised
Balance at 31 August 2020		 2020
£
562,731
157,888
£ 720,619		 2019
£
329,691
179,658
£ 509,349
£
509,349
547,491
6,423
(342,644)
£ 720,619

20. PENSION COSTS

There are two pension schemes available to certain employees of the School, the Teachers’ Pension Scheme, and a group personal pension scheme.

Teaching Staff – Defined Benefit Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £971,319 ( 2019: £687,131) and at the year-end £115,099 ( 2019: £91,770 ) was accrued in respect of contributions to this scheme.

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

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

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

Page 31

(A COMPANY LIMITED BY GUARANTEE)

READING BLUE COAT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closes to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

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

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

Non-Teaching Staff

The Company contributes on a money purchase basis to a group personal pension scheme. Contributions totalling £253,412 (2019: £234,378) were payable to this scheme for the year. Contributions totalling £27,071 (2019: £25,714) were unpaid at the year end.

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds		 Fixed
Assets
£
2,798,400
17,436,783
20,235,183		 Net Current
Liabilities
£
155,756
(1,134,171)
(978,415)		 Long Term
Liabilities
£
-
(2,194,182)
(2,194,182)		 Total
2020
£
2,954,156
14,108,430

17,062,586

2019 COMPARATIVE- ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds		 Fixed
Assets
£
2,824,800
16,573,153
19,397,953		 Net Current
Liabilities
£
113,292
(1,769,635)
(1,656,343)		 Long Term
Liabilities
£
-
(1,238,517)
(1,238,517)		 Total
2019
£
2,938,092
13,565,001
16,503,093

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READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

22a. UNRESTRICTED FUNDS – MOVEMENT IN THE YEAR

General Funds – School
Trading Company		 Balance at
1 September
2019
£
13,427,017
103,633
£13,530,650		 Incoming
Resources
£
12,339,913
88,742
£12,428,655		 Resources
Expended
£
(11,781,796)
(112,985)
£(11,894,781)		 Transfer
£
2,760
-
£
2,760		 Balance at
31 August
2020
£
13,987,894
79,390
£14,067,284

The School funds are held to maintain the leasehold properties and to cover normal fluctuations in working capital, future development costs and general reserves.

2019 COMPARATIVE- UNRESTRICTED FUNDS – MOVEMENT IN THE YEAR

General Funds – School
Trading Company		 Balance at
1 September
2018
£
12,553,556
111,726
£12,665,282		 Incoming
Resources
£
12,841,723
149,305
£12,991,028		 Resources
Expended
£
(11,981,712)
(157,398)
£(12,139,110)		 Transfer
£
13,450
-
£ 13,450		 Balance at
31 August
2019
£
13,427,017
103,633
£13,530,650

22b. DESIGNATED FUNDS – MOVEMENT IN THE YEAR

Charities Fund
Muir Prize Fund
Old Blues Fund
Roger Johnson Fund
Dr Fopp Public Speaking Fund
Staff Fund
Headmaster’s Scholarship Fund
Aldworth Partnership Fund		 Balance at
1 September
2019
£
14,846
200
10,238
2,954
-
598
870
4,645
£
34,351		 Incoming
Resources
£
7,755
-
1,376
250
1,700
644
-
1,092
£
12,817		 Resources
Expended
£
(4,148)
-
(421)
(1,976)
(320)
(364)
-
(193)
£
(7,422)		 Transfer
£
-
-
-
1,400
-
-
-
£
1,400		 Balance at
31 August
2020
£
18,453
200
11,193
1,228
2,780
878
870
5,544
£
41,146

Designated funds are in respect of donations received, which are set aside, at the discretion of the Governors for particular purposes.

Page 33

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2019 COMPARATIVE- DESIGNATED FUNDS – MOVEMENT IN THE YEAR

Charities Fund
Muir Prize Fund
Old Blues Fund
Roger Johnson Fund
Staff Fund
Headmaster’s Scholarship Fund
Aldworth Partnership Fund		 Balance at
1 September
2018
£
15,521
200
7,324
5,387
36
870
-
£
29,338		 Incoming
Resources
£
2,631
-
15,054
250
742
-
5,889
£
24,566		 Resources
Expended
£
(3,306)
-
(9,890)
(2,683)
(180)
-
(1,244)
£ (17,303)		 Transfer
-
-
(2,250)
-
-
-
-
-
(2,250)		 Balance at
31 August
2019
£
14,846
200
10,238
2,954
598
870
4,645
£
34,351

22c. RESTRICTED FUNDS – MOVEMENT IN THE YEAR

Sundry Funds
Arthur Newbury Prize
Embling Memorial Fund
Summer Ball Fund
Edwards Bequest
Melrose Prize
Ali Driver Sonning Grant
Performing Arts Centre
Rowing Fund
Bursary Fund
Property Revaluation Surplus Fund		 Balance at
1 Sept
2019
£
100
100
5,000
2,000
200
6,658
15,000
13,690
42,748
70,544
2,824,800
£ 2,938,092		 Incoming
Resources
£
-
-
-
-
-
-
250
250
212,474
-
£ 212,724		 Resources
Expended
£
-
-
-
-
-
(200)
-
(6,164)
(6,364)
(159,736)
(26,400)
£ (192,500)		 Transfer
£
-
-
-
-
-
-
-
(2,760)
(2,760)
(1,400)
-
£ (4,160)		 Balance at
31 Aug 2020
£
100
100
5,000
2,000
200
6,458
15,250
4,766
33,874
121,882
2,798,400
£ 2,954,156

Sundry Funds

These are various donations given with a specific request that they be used for prizes or other specified purposes.

Bursary Fund

This is a fund for donations given with a specific request that they are awarded as bursaries.

Property Revaluation Surplus Fund

This has been set up to cover the net book value of the leasehold property.

Page 34

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2019 COMPARATIVE- RESTRICTED FUNDS – MOVEMENT IN THE YEAR

Sundry Funds
Arthur Newbury Prize
Embling Memorial Fund
Summer Ball Fund
Edwards Bequest
Melrose Prize
Ali Driver Sonning Grant
Performing Arts Centre
Rowing Fund
Bursary Fund
Property Revaluation Surplus Fund		 Balance at
1 Sept
2018
£
100
100
6,000
2,000
200
-
-
10,042
18,442
9,876
2,851,200
£ 2,879,518		 Incoming
Resources
£
-
-
-
-
-
6,658
15,000
20,991
42,649
185,968
-
£ 228,617		 Resources
Expended
£
-
-
(1,000)
-
-
-
-
(6,143)
(7,143)
(125,300)
(26,400)
£ (158,843)		 Transfer
£
-
-
-
-
-
-
-
(11,200)
(11,200)
-
-
£ (11,200)		 Balance at
31 Aug
2019
£
100
100
5,000
2,000
200
6,658
15,000
13,690
42,748
70,544
2,824,800
£ 2,938,092

23. CAPITAL COMMITMENTS

At 31 August 2020 the School had capital commitments amounting to £Nil ( 2019: £949,743) .

24. RELATED PARTIES

There were the following transactions in the year with Reading Blue Coat School (Trading) Limited:

The year-end balance owed by Reading Blue Coat School (Trading) Limited is £83,681 (2019: £81,148).

Mr D J Few, one of the School Governors, is a partner at Blandy & Blandy LLP, the School’s solicitors. During the year Blandy & Blandy LLP invoiced the School for services amounting to £4,118 (2019: £20,896) and at the year end there was a creditor of £Nil (2019: £Nil) owing to them.

Page 35

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

25. OPERATING LEASE COMMITMENTS

At 31 August 2020 the School had future minimum lease payments under non-cancellable operating leases as follows:

Leases expiring:
In less than one year
Between one and two years
Between two and five years
Greater than five years		 Land and buildings
2020
2019
£
£
63,000
63,000
63,000
63,000
189,000
189,000
5,160,950
5,223,950
£ 5,475,950
£ 5,538,950		 Other
2020
2019
£
£
67,109
70,090
28,928
28,200
23,132
34,995
-
4,876
£ 119,169
£ 138,161

26. FINANCIAL INSTRUMENTS

Financial instruments held at amortised cost are fees receivable, other debtors, prepayments and accrued income, amounts due from subsidiary and cash in hand.

Financial liabilities held at amortised cost are bank loans, trade creditors, deposits repayable, other creditors, accruals and net obligations under finance leases, less deferred income.

2020 2019
£ £
GROUP
Financial assets measured at amortised cost 2,751,584 1,622,849
Financial liabilities measured at amortised cost 3,796,176 2,788,748
The group’s income, expense, gains and losses in respect of financial instruments are summarised
below:
GROUP & COMPANY 2020 2019
£ £
Interest income and expense:
Total interest income for financial assets held at amortised cost 6,547 11,439
Total interest expense for financial liabilities held at amortised cost 72,048 95,895
2020 2019
£ £
CHARITY
Financial assets measured at amortised cost 2,666,535 1,512,500
Financial liabilities measured at amortised cost 3,790,509 2,784,248

Page 36

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

27. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

Increase in cash in the year
Net movement in Advanced Fee Scheme
New loan issued in year
Loan repayments
New HP agreement in year
HP repayments
Change in net debt
Net debt at 1 September
NET DEBT AT 31 AUGUST		 2020
£
989,897
(211,270)
(1,500,000)
400,502
(68,570)
27,793
(361,648)
(318,659)
(680,307)		 2019
£
803,540
(66,673)
-
376,655
-
4,158
1,117,680
(1,436,339)
(318,659)

28. ANALYSIS OF CHANGE IN NET DEBT

Cash at bank and in hand
Advanced Fee Scheme
HP
Loans		 Net debt as at
1 September
2019
£
1,517,887
(509,349)
(8,316)
(1,318,881)
£ (318,659)		 Cash
Change
£
989,897
(211,270)
27,793
(1,099,498)
£ (293,078)		 Non cash
movement
-
-
(68,570)
-
£
(68,570		 Net funds as
at 31 August
2020
£
2,507,784
(720,619)
(49,093)
(2,418,379)
£ (680,307)

Page 37

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

29. COMPARATIVE 2019 STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS
FROM:
Income from charitable activities
School fees receivable
Ancillary trading income
Other trading activities:
Bank interest
Non-ancillary trading income
Trading income
Donations
Total
EXPENDITURE ON:
Charitable activities
School operating costs
Raising funds
Trading expenditure
Financing and other costs
Total
Net income/(expenditure)
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
11,814,756
818,864
11,439
71,548
149,305
24,682
12,890,594
11,872,882
43,272
115,259
12,031,413
859,181
12,694,620
£ 13,565,001		 Restricted
funds
£
-
-
-
-
-
228,617
228,617
158,843
-
-
158,843
69,774
2,879,518
£ 2,938,092		 Total funds
2019
£
11,814,756
818,864
11,439
71,548
149,305
253,299
13,119,211
12,031,725
43,272
115,259
12,190,256
928,955
15,574,138
£ 16,503,093

Page 38