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2022-08-31-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 2022

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Page
Governors, Officers and Advisers 1 - 2
Report of the Governors 3 – 10
Directors’ Report 3
Strategic Report 5
Statement of Governors’ Responsibilities 11
Independent Auditors’ Report 12 – 15
Statement of Financial Activities 16
Balance Sheets 17
Cash Flow Statement 18
Notes to the Financial Statements 19 – 37

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

GOVERNORS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

REGISTERED OFFICE & PRINCIPAL ADDRESS: Holme Park Sonning-on-Thames Reading RG4 6SU DIRECTORS: P Bertram [1] (Chairman) D Few P Gillibrand (Resigned 24 October 2022) C Green[3] L Hague[3 4] C Hubbard[1] Revd J Taylor[2] Ex-officio, Vicar of Sonning S Mount[1] (Resigned 26 May 2022) A Worrall (Resigned 20 September 2021) H Williams[1 3] (Chair of the F&GP) P Etherington[1] N Bruce[3] M Smith (Appointed 1 September 2021) A Colpus[3 4] (Appointed 6 December 2021) M Rumbelow[1 5] (Appointed 21 March 2022)

  1. Member of the Finance and General Purpose Committee 2. Ex officio appointment 3. Member of Safeguarding Committee 4. Member of Education Committee 5. Lead Health and Safety Governor

The Governors are also Directors of the Company and Trustees of the Charity.

OFFICERS Headmaster: P Thomas Bursar and Company Secretary: T Tabrah BANKERS: Lloyds Bank plc Market Place Reading Berkshire RG1 2EQ SOLICITORS: Blandy & Blandy LLP 1 Friar Street Reading RG1 1DA AUDITORS: Crowe UK LLP Aquis House 49 – 51 Blagrave Street Reading RG1 1PL

Page 1

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

GOVERNORS, OFFICERS AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

INSURANCE BROKERS:

Marsh Limited 4 Milton Road Haywards Heath West Sussex RH16 1AH

WEBSITE: www.rbcs.org.uk

KEY MANAGEMENT:

P Thomas Headmaster E Trelinski Second Master K Magill Deputy Head (Staff) G Williams Deputy Head (Pastoral) R Tidbury Deputy Head (Academic) T Tabrah Bursar J Jarrett Director of Admissions & Marketing S Bunnell-Pyper Foundation Director (appointed 1 September 2021) K Richardson Deputy Head (Co-Curricular) (appointed 30 August 2022)

Page 2

READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2022

The Governors of the School present their annual report for the year ended 31 August 2022, 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 Company”, “the School” or “the Charity”), 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.

The Governors, Officer s , Key Addresses and Advisors are set out on Pages 1 and 2.

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

The School is an active member of the Headmasters ' and Headmistresses ' Conference, the Society of Heads, the Association of the Governing Bodies of Independent Schools and the Independent Schools’ Bursars Association.

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 Governors are all Directors of the Company and appoint new Governors either to fill a casual vacancy or by way of additions to the Board. The total number of Governors shall not exceed 12. One of the Governors is an ex-efficio appointment and 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.

Those who held office during the year are listed on Page 1.

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.

Corporate Governance

The Governing Body is mindful of the principles and recommended practice set out in the Charity Governance Code for larger charities, and believes that it applies, much evidenced in this annual report, the specified principles of organisational purpose, leadership, integrity, decision making, risk and control, board effectiveness, diversity, openness and accountability.

Page 3

READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Organisational Management

The members of the Governing Body are legally responsible for the overall management and control of the School. The Governing Body meets a minimum of three times a year. Much of the preparation for these meetings is undertaken by sub-committees ahead of each Governors’ meeting. The principal committees are the Education Committee, chaired by the Headmaster, the Finance and General Purpose Committee, chaired by Mr Williams and the Safeguarding Committee, chaired by Mrs Charlotte Green.

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 Key Management. The Headmaster and Bursar attend meetings of the Governing Body and its Committees along with other members of Key Management where appropriate and invited.

Risk Management

The Governing Body is responsible for ensuring that the risks faced by the Charity are properly assessed. It is aware of the importance of protecting the business as far as possible from operational and reputational damage, as well as from the risks of unpredictable crisis and disaster. Risks are examined each year when updating the Risk Register and in the process of strategic planning. The generic key controls used by the School to manage risk include:

The above structure formalises the risk management processes established for the Charity. Through these processes, the Governors identify the major risks to which the Charity is exposed and review the systems and procedures established to manage them. Nevertheless, it is recognised that such systems can provide only reasonable but not absolute assurance that major risks have been adequately addressed and can be managed.

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.

Page 4

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 UK. LLP as auditors of the company will be put to the Annual General Meeting.

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

Headmaster’s Statement

2021-2022 saw Reading Blue Coat emerging from the most obvious impacts of Covid and, in many respects, enjoying a ‘normal’ year! Numbers remained strong at 817 pupils (2021: average 783), year groups were full and there was a broad return to a school running at full pace; within and away from the classroom we were cogitating, discussing, singing, playing and laughing as a school community; it was good!

We enter the new academic year with Covid seemingly in our rear-view mirror, but we are driving through a new landscape of rising interest rates and spiralling costs that need to be carefully considered, budgeted for and monitored. Anticipating what is over the current horizon is not easy, but we recognise the global economic picture is very unsettled, that we must steward our resources wisely and that we need to move forward cautiously with any major development plans.

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

We are, however, on track to welcome girls into Year 7 from September 2023 and continue to prepare ourselves logistically with the reconfiguration of some classroom spaces and facilities, as well as with our holistic education and pastoral care. We are aiming for excellence in everything, for everyone, and to this end continue to build on our work throughout the School, underpinned by the values of aspiration, compassion, courage, integrity and service that we expect to see in all our direction, decisions and dealings with one another.

It is an exciting time for Reading Blue Coat School!

Development of Facilities

The School has undertaken the following development projects during the reporting period:

Grant-making

This year, the value of academic scholarships made, based on individuals’ academic ability, was £52,313 ( 2021: £65,000 ). The value of means-tested bursaries made to the School’s pupils amounted to £787,705 ( 2021: £763,612). 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 this year the Foundation Office has continued to make progress in establishing the office in preparation for a more concerted effort with regards to fundraising. A new Foundation Manager started in January 2022 and we launched our fundraising campaign, ‘Defined by Vision, United by Ambition’, in March 2022. We are seeking to raise £4million by 2032 thus doubling the School’s endowment and the amount of Foundation Scholars at the School from 14 to 28. We have received some larger donations for the campaign and have a handful a direct debits coming in each month. Our legacy giving society, the Richard Aldworth Society, now includes 9 members and continues to grow. The Foundation Office seeks to increase fundraising activity through a Giving Day which will involve the whole School community. We also hope to carry out wealth screening by way of identifying high net worth individuals in the hope that they will be able to help us reach our goal for the campaign.

For the year, donations totalled £481,380 (2021: £247,810); including unrestricted funds of £254,636 and restricted funds for the provision of bursaries of £220k. Of this, £139,000 (2021: £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. These are currently only carried out by School staff and all fundraising activities are managed by the Foundation Director with overall management by the Headmaster and oversight by the Governing Body. The Foundation 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.

Page 6

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

No complaints relating to fundraising activities have been received by the School during this reporting period. The School has a complaints procedure in place should any complaints arise from our fundraising activity.

The School is registered with the Fundraising Regulator. This will be renewed in December 2022 and the logo will be added to our website and fundraising collateral in due to course to indicate we are compliant. The School continues to comply with the Code of Fundraising Practice published by the Fundraising Regulator and its own Fundraising Policy which was reviewed in September 2022. The School continues to be a member of the Institute of Development Professionals in Education (IDPE).

The School upholds appropriate standards for the operation and management of its fundraising activities. We continue to ensure vulnerable people and other member of the School’s community are protected and that no fundraising activity results in a member of the community being coerced into giving a gift against their will.

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

Financial Results

The financial results for the year are shown in the statement of financial activities on page 16 which shows net income before transfers of £1,627,207 (2021: £817,155). Included within the result is a gain of £138,491 (2021: £7,449) attributable to the School’s wholly owned trading subsidiary, Reading Blue Coat School (Trading) Limited. 2021/22 was an academic year with fewer Covid-related restrictions in operations than the prior year; year on year variation in ancillary trading income and related expenses was noted as a result.

The level of surplus for the year generated in the unrestricted funds was £1,562,623 (2021: £668,792). Some of the surplus generated is required to fund repayments of outstanding bank loans and some will be used to finance future capital expenditure projects with the aim of continually improving the School’s facilities. In the opinion of the Governors the market value of the land and buildings of the School is not less than the book value in the accounts.

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 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 (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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: A total of £787,705 ( 2021 : £763,612 ) was spent on means-tested support which was 5.3% of the School’s gross fee income. Assistance was provided in the form of 44 bursaries and 13 Foundation Scholarships, i.e. a total of 57 or 7% of the pupils received some support. Foundation Scholarships cover 100% of 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 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 the umbrella term for student led outreach work by RBC in the local area and 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 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.

The activities of the Aldworth Partnership have been adversely impacted by restrictions due to the spread of Coronavirus, however local service in the last year has included:

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READING BLUE COAT SCHOOL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Use of the Facilities by the local community

The School supports the local community in the following ways:

Equal Opportunities

The School welcomes pupils from all backgrounds. To admit a prospective pupil, the School needs to be satisfied that it will be able to educate and develop a prospective pupil to the best of their potential. An individual’s economic status, gender, race, sexuality, religion or disability do not form part of our assessment process.

The School is an equal opportunities employer, and this is laid out in the Employee Handbook. Full and fair consideration is given to job applications from candidates of all backgrounds whatever their economic status, gender, race, sexuality, religion or disability. Due consideration is given to the training and employment needs of all staff who work at the School. The School will make reasonable adjustments to meet the needs of pupils or staff who are or who become disabled.

Employee Engagement

The Governing Body is kept fully informed of any employee concerns through regular formal and informal briefings from the Headmaster and Bursar. The Governors are committed to promoting a positive and healthy environment for all staff at the School for both their physical and mental wellbeing. The Governors promote inclusion in the workplace and provide resources for training and development opportunities for all staff. The Governors encourage recruitment and development strategies which seek to attract and retain talented staff.

At intervals through the year, usually immediately prior to the start of a term, Professional Development Days are held during which briefings and staff training takes place. Elements of these days will apply to the whole school staff, both academic and operational, with other periods being applicable to specific roles, functions or training requirements. Training on these days will often include training on safeguarding, data protection, and health and safety, as well as briefings on the School’s development and strategy.

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 (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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. The risks that the Governors identify are reviewed, and systems or procedures are put in place to manage those risks. The Governors’ risk management policy is focussed on the following areas:

The School has managed to finance the required increase in contributions to the Teacher’s Pension Scheme during the previous academic year. The Finance and General Purpose Committee continues to monitor the situation and affordability of the Teacher’s Pension Scheme.

Principal risks and uncertainties

The Senior Leadership Team 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.

The School is working hard to control increases in costs in order to maintain its financial flexibility. In addition, new ways to maintain the surplus will be developed, such as additional ancillary educational activities, lettings and fund raising.

The decision to extend co-education across all year groups was supported by a detailed long term financial model that considered various scenarios and sensitivities in relation to both pupil numbers and the extra costs that are likely to be incurred.

The Governing Body is satisfied that for all major risks identified for the Group appropriate controls have been put in place and maintained to mitigate those risks adequately. It is recognised that systems can provide only reasonable but not absolute assurance that major risks have been managed.

This Annual Report, prepared under the Charities Act 2011 and the Companies Act 2006, was approved by the Governing Body of the Reading Blue Coat School on Monday 28 November 2022 including in their capacity as company directors approving the Strategic Report contained therein, and is signed as authorised on its behalf by:

……………………………………..

P Bertram Chairman of Governors

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READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF GOVERNORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

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 2022 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

In auditing the financial statements, we have concluded that the Governor's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Governors with respect to going concern are described in the relevant sections of this report.

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. 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 (CONTINUED)

Other information

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

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

We have nothing to report in this regard.

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:

Responsibilities of governors

As explained more fully in the governors’ responsibilities statement on page 11, 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.

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

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the Group and charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, together with the Charities SORP (FRS 102) and the Charities Act. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group and charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Group and charitable company for fraud. The laws and regulations we considered in this context for the School were The Education (Independent School Standards) Regulations 2014, Safeguarding regulations, Health & Safety legislation, General Data Protection Regulations and Food Hygiene Standards. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Governors and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of certain non fee income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and General Purposes Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and certain non-fee income streams, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Independent Schools Inspectorate and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF READING BLUE COAT SCHOOL (CONTINUED)

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: 29 November 2022

Page 15

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 2022

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
Grants and donations
8
Total income
EXPENDITURE ON:
Charitable activities
School operating costs
Raising funds
Trading expenditure
7
Financing and other costs
9
Total expenditure
10
NET INCOME/(EXPENDITURE)
Transfer
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
13,823,919
1,164,502
667
57,564
161,313
247,187
15,455,152
(13,810,770)
(7,822)
(73,937)
(13,892,529)
1,562,623
139,956
1,702,579
14,961,615
£ 16,664,194		 Restricted
funds
£
-
-
-
234,193
234,193
(169,609)
(169,609)
64,584
(139,956)
(75,372)
2,918,126
£2,842,754		 Total funds
2022
£
13,823,919
1,164,502
667
57,564
161,313
481,380
15,689,345
(13,980,379)
(7,822)
(73,937)
(14,062,138)
1,627,207
-
1,627,207
17,879,741
£ 19,506,948		 Total funds
2021
£
12,788,306
728,453
487
40,716
20,464
247,810
13,826,236
(12,920,198)
(10,515)
(78,368)
(13,009,081)
817,155
-
817,155
17,062,586
£ 17,879,741

The notes on pages 19 to 37 form part of these financial statements

Page 16

READING BLUE COAT SCHOOL IA COMPANY UMITED BY GUARA14TEEI CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 AUGUST 2022 COMPANY REGISTERED NUMBER: 04243510 Group Charlty Note 2022 2021 2022 2021 FIXED ASSETS Tangible assets Inve8lrnents 14 15 20,OY3,550 19,649,8Q4 20,073,550 19,649.804 CURRENT ASSETS Debtors Cash in h8nd 16 425,$29 3 994 837 222,937 3 888 232 495,816 3779110 302,846 3 795 032 4,420,366 4,111,169 4,274,926 4,097,878 CURRENT LIABILITIES CREDITORS: Amounts falling du8 Within on8 year 17 4 059 274 4 377 833 4 052 327) 4 371993 NET CURRENT ASSETSI ILIABILITIESI 361 092 266 664 222 599 2T4 115 TOTAL ASSETS LESS CURRENT ASSETSI ILIABILITIESI 20,434,642 19,383, 140 20,296,151 19,375,691 CREDITORS= Amounts falling due after m(￿e than one year 18 927 6941 399 927 6941 1503 399 TOTAL NET ASSETS UNRESTRICTED FUNDS G8neral Funds 22a 16.627,957 14.921,957 16,489,466 14,914,508 DESIGNATED FUNDS 22b 36,237 39,658 36.237 39,658 RESTRICTED FUNDS 22c 2 842 754 2 918 126 2 842 Y54 (includes 8 r8valuation reserv8 01 £2,745,600> TOTAL FUNDS 21 The profil for the linan¢ial year dealt within the financial slalemenls of the parent charity was £1,496.165 (2021.. £889.096). Approved by the Board of ())vemors on: and signed on ils behalf by.. ZÉ TrJJKfjÉr-r4w- H William Governor The notes on pages 19 to 37 fomi part of these financial slalements Page 17

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from operating activities
Net income for the year (as per SoFA)
Interest receivable
Depreciation
Impairment of fixed assets
(Increase)/decrease in debtors
Deferred purchase release
Increase/(decrease) 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
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		 2022
£
1,627,207
(667)
1,095,793
-
(202,592)
-
124,957
39,197
2,683,895
(1,519,539)
667
(1,518,872)
(21,126)
(39,197)
(242,516)
(755,579)
(1,058,418)
106,605
3,888,232
£ 3,994,837		 2021
£
817,155
(487)
989,963
283,712
130,754
(67,120)
193,189
48,560
2,395,726
(540,767)
487
(540,280)
(21,126)
(48,560)
46,863
(452,175)
(474,998)
1,380,448
2,507,784
£ 3,888,232

The notes on pages 19 to 37 form part of these financial statements

Page 18

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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

A budget for the year ending 31 August 2023, including cash flow projections, has been prepared on a consolidated basis for the School and the Trading Company. This budget, and the assumptions on which it is based, were agreed by the Finance Committee at their meeting on 26 September 2022 together with financial projections for the School for the next 5 years. After careful review of the forecasts, and their underlying assumptions, the Governors agree that 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. The Governors acknowledge that the current operating environment is highly uncertain and are therefore regularly reviewing the impact on strategy as well as, in particular, the longer-term financial stability of the School.

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 £1,496,165 (2021: £889,096) .

Page 19

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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.

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:-

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 20

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 21

(A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

READING BLUE COAT SCHOOL

q) Pupil deposits

Under normal circumstances pupil deposits 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 and activities
School lunches
Registration fees
Exam fees
Pupil recharges
Miscellaneous
NON-ANCILLIARY TRADING INCOME
Rents and lettings
OFGEM payment
GMAC substation refund
Miscellaneous		 2022
£
14,773,565
(193,810)
(755,836)
£13,823,919
211,477
622,399
50,340
105,734
96,689
77,863
£ 1,164,502
2022
£
12,140
-
-
45,424
£
57,564		 2021
£
13,751,315
(169,435)
(793,574)
£12,788,306
219,355
340,496
45,200
104,451
12,785
6,166
£
728,453
2021
£
10,605
2,094
15,623
12,394
£
40,716

Page 22

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

7. TRADING INCOME AND EXPENDITURE

The School owns 100% of Reading Blue Coat School (Trading) Limited (company number 4242660). Its 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
Gross Profit
Administration Expenses
Tax Payable
Surplus pre gift aid paid
Retained earnings for the beginning of the period
Profit for the year
Gift aid donation
Retained earnings at the end of the year		 2022
£
161,313
161,313
(22,822)
-
138,491
7,449
138,491
(7,449)
£ 138,491		 2021
£
20,464
20,464
(13,015)
-
7,449
79,390
7,449
(79,390)
£
7,449

Administration costs include a management charge from the School of £15,000 ( 2021: £2,500 ) which is eliminated on consolidation.

The aggregate amount of share capital and reserves of Reading Blue Coat School (Trading) Limited as at 31 August 2022 was £138,493 (2021: £7,451).

8. GRANTS AND DONATIONS

A total of £481,380 ( 2021: £247,810) was included in donations, including a total of £219,563 restricted for bursaries ( 2021: £194,285) . £Nil (2021: £45,641) was received as part of the Coronavirus Job Retention Scheme Government Grant.

9. FINANCING AND OTHER COSTS

Bank and loan interest
Other finance costs		 2022
£
39,197
34,740
£
73,937		 2021
£
48,560
29,808
£
78,368

Page 23

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

10. TOTAL RESOURCES EXPENDED-GROUP 2022

Staff costs
Depreciation
Other
Total
2022
Charitable
activities
£
£
£
£
School operating
costs:
Teaching costs
6,988,743
-
745,128
7,733,871
Welfare costs
226,529
235,089
1,040,028
1,501,646
Premises costs
488,733
860,704
1,174,316
2,523,753
Support costs of
schooling
1,377,494
-
843,615
2,221,109
9,081,499
1,095,793
3,803,087
13,980,379
Expenditure on
raising funds
Trading expenditure
-
-
7,822
7,822
Financing and other
costs (Note 9)
-
-
73,937
73,937
-
-
81,759
81,759
Total resources
expended
£ 9,081,499
£ 1,095,793
£3,884,846
£14,062,138
2021 COMPARATIVE
School operating
costs
Teaching costs
6,495,147
-
436,513
6,931,660
Welfare costs
241,331
189,231
684,038
1,114,600
Premises costs
447,629
800,732
1,459,046
2,707,407
Support costs of
schooling
1,292,240
-
874,291
2,166,531
8,476,347
989,963
3,453,888
12,920,198
EXPENDITURE ON
RAISING FUNDS
Trading expenditure
-
-
10,515
10,515
Financing and other
costs (Note 9)
-
-
78,368
78,368
-
-
88,883
88,883
Total resources
expended
£ 8,476,347
£
989,963
£3,542,771
£13,009,081
11.
NET INCOME/(EXPENDITURE) – GROUP
2022
Net income is stated after charging:
£
Depreciation - Owned assets
1,070,670
- Assets on HP
25,123
Auditors’ remuneration
- Audit and accountancy services
18,650
- Other services
4,270
Operating leases
141,297
Included in support costs are governance costs of £21,663_(2021 £19,171)._		 Total
2022
£
7,733,871
1,501,646
2,523,753
2,221,109		 Total
2021
£
6,931,660
1,114,600
2,707,407
2,166,531
13,980,379 12,920,198
7,822
73,937		 10,515
78,368
81,759 88,883
£14,062,138 £13,009,081
6,931,660
1,114,600
2,707,407
2,166,531		 6,775,763
1,027,582
2,243,969
1,924,962
12,920,198 11,972,276
10,515
78,368		 6,952
115,475
88,883 122,427
£13,009,081 £12,094,703
2021
£
964,840
25,123
16,950
2,825
130,109

Page 24

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

12. STAFF COSTS

2022
£
Wages and salaries
6,999,428
Social security costs
736,749
Other pension costs
1,345,322
£9,081,499
ncluded in wages and salaries are no settlement costs_(2021: £23,981)._
No.
The average number of employees in the year was:
Teaching
95
Welfare
14
Premises
18
Support
74
201
2022
The following number of employees exceeded £60,000 emoluments
(including gross pay and taxable benefits):
£60,000 - £70,000
3
£70,000 - £80,000
3
£80,000 - £90,000
3
£130,000 - £140,000
-
£170,000 - £180,000
1
The number of higher paid employees in the Teachers’
Pension scheme
7
The number of higher paid employees in a Defined
Contribution scheme
3
Total cost of Employer’s contributions in relation to the above
200,159		 2021
£
6,574,047
660,352
1,241,948
£8,476,347
No.
91
16
13
71
191
2021
3
3
1
1
-
6
2
156,018

Included in wages and salaries are no settlement costs (2021: £23,981).

None of the Governors received remuneration, reimbursement of expenses or other benefits in the year ( 2021: Nil).

Key management personnel comprise the Governors (Directors) and the key management personnel listed on page 2. They received aggregate remuneration (including employer’s pension and employer’s national insurance) of £974,385 (2021: £842,415).

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 25

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

14a. TANGIBLE FIXED ASSETS – GROUP

COST:
At 1 September 2021
Additions
At 31 August 2022
DEPRECIATION:
At 1 September 2021
Charge for the year
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Leasehold
land and
buildings
£
3,300,000
-
3,300,000
528,000
26,400
554,400
£ 2,745,600
£ 2,772,000		 RBC
buildings
£
17,937,225
187
17,937,412

4,505,500
500,566
5,006,066
£ 12,931,346
£ 13,431,725		 Assets
under
construction
£
-
69,930
69,930
-
-
-
£
69,930
£
-		 Improvements
to
buildings
£
5,338,390
1,198,613
6,537,003
2,217,779
333,010
2,550,789
£
3,986,214
£
3,120,611		 Furniture,
Fixtures &
Fittings
£
440,727
39,322
480,049
391,846
31,564
423,410
£
56,639
£
48,881		 Plant,
Machinery &
Equipment
£
2,973,274
211,487
3,184,761
2,698,525
202,482
2,901,007
£
283,754
£
274,749		 Motor
vehicles
£
39,283
-
39,283
37,445
1,771
39,216
£
67
£
1,838		 Total
£
30,028,899
1,519,539
31,548,438
10,379,095
1,095,793
11,474,888
£ 20,073,550
£ 19,649,804

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 2022 total £3,181 (2021: £28,303) .

Page 26

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

14b. TANGIBLE FIXED ASSETS – CHARITY

COST:
At 1 September 2021
Additions
At 31 August 2022
DEPRECIATION:
At 1 September 2021
Charge for the year
At 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Leasehold
land and
buildings
£
3,300,000
-
3,300,000
528,000
26,400
554,400
£
2,745,600
£
2,772,000		 RBC
buildings
£
17,937,225
187
17,937,412
4,505,500
500,566
5,006,066
£ 12,931,346
£ 13,431,725		 Assets
under
construction
£
-
69,930
69,930
-
-
-
£
69,930
£
-		 Improvements
to buildings
£
5,338,390
1,198,613
6,537,003
2,217,779
333,010
2,550,789
£
3,986,214
£
3,120,611		 Furniture,
Fixtures &
Fittings
£
440,727
39,322
480,049
391,846
31,564
423,410
£
56,639
£
48,881		 Plant,
Machinery &
Equipment
£
2,955,042
211,487
3,166,529
2,680,293
202,482
2,882,775
£
283,754
£
274,749		 Motor
vehicles
£
39,283
-
39,283
37,445
1,771
39,216
£
67
£
1,838		 Total
£
30,010,667
1,519,539
31,530,206
10,360,863
1,095,793
11,456,656
£ 20,073,550
£ 19,649,804

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 2022 total £3,181 (2021: £28,303)

Page 27

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

15.
INVESTMENTS
Group
2022
£
Reading Blue Coat School
(Trading) Limited
-
£
-
16.
DEBTORS
Group
2022
£
Fees receivable
78,988
Other debtors
120,977
Prepayments and accrued income
225,564
Amounts due from subsidiary
undertakings
-
£425,529
17.
CREDITORS:Amounts falling due within one year.
Group
2022
£
Bank loan (note 18)
335,625
Trade creditors
187,392
Fees in advance
1,528,785
Deposits repayable
531,150
Deferred income - Advanced
fees (note 19)
472,272
Hire Purchase Leases
6,841
Other creditors
305,323
Social security & other taxes
188,031
Accruals and deferred income
503,855
Deferred purchase creditor
-
£4,059,274		 Group
2021
£
-
£
-
Group
2021
£
8,733
10,025
204,179
-
£
222,937
Group
2021
£
754,669
235,659
1,569,751
537,350
629,991
21,126
216,957
164,906
180,304
67,120
£4,377,833		 Charity
2022
£
2
£
2
Charity
2022
£
78,988
82,940
225,564
108,324
£
495,816
Charity
2022
£
335,625
187,367
1,528,785
531,150
472,272
6,841
304,423
187,932
497,932
-
£4,052,327		 Charity
2021
£
2
£
2
Charity
2021
£
8,733
3,740
204,179
86,194
£
302,846
Charity
2021
£
754,669
235,659
1,569,751
537,350
629,991
21,126
216,957
164,906
174,464
67,120
£4,371,993

Page 28

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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
2022
£
875,000
52,694
-
-
£
927,694		 Group
2021
£
1,211,535
137,491
6,841
147,532
£ 1,503,399		 Charity
2022
£
875,000
52,694
-
-
£
927,694		 Charity
2021
£
1,211,535
137,491
6,841
147,532
£ 1,503,399

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 2022 is £35,625 (2021: £491,203). 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 CBILS loan of £1.5 million was drawn down. The balance of the loan at the 31 August 2022 is £1,175,000 ( 2021: £1,475,000). This loan has interest charged at a rate of base plus 1.06% and 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		 2022
£
335,625
300,000
575,000
1,210,625		 2021
£
754,669
336,535
875,000
1,966,204

Page 29

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 2021
Receipts from contracts
Discounts allocated
Advance fees utilised
Balance at 31 August 2022

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 £1,084,992 ( 2021: £1,002,055) and at the year-end £124,665 ( 2021: £119,191 ) 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 30

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is 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 £ 260,330 (2021: £239,893) were payable to this scheme for the year. Contributions totalling £29,803 (2021: £24,603) were unpaid at the year end.

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fixed
Net Current
Long Term
Assets
Assets
Liabilities
£
£
£
Restricted Funds
2,745,600
97,154
-
Unrestricted Funds
17,327,950
263,938
(927,694)
20,073,550
361,092
(927,694)
21 COMPARATIVE- ANALYSIS OF NET ASSETS BETWEEN FUNDS
Fixed
Net Current
Long Term
Assets
Liabilities
Liabilities
£
£
£
Restricted Funds
2,772,000
146,126
-
Unrestricted Funds
16,877,804
(412,790)
(1,503,399)
19,649,804
(266,664)
(1,503,399)		 Total
2022
£
2,842,754
16,664,194
19,506,948
Total
2021
£
2,918,126
14,961,615
17,879,741

2021 COMPARATIVE- ANALYSIS OF NET ASSETS BETWEEN FUNDS

Page 31

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

22a. UNRESTRICTED FUNDS – MOVEMENT IN THE YEAR

General Funds – School
Trading Company		 Balance at
1 September
2021
£
14,914,508
7,449
£14,921,957		 Incoming
Resources
£
15,276,297
161,313
£15,437,610		 Resources
Expended
£
(13,841,295)
(30,271)
£(13,871,566)		 Transfer
£
139,956
-
£ 139,956		 Balance at
31 August
2022
£
16,489,466
138,491
£16,627,957

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

2021 COMPARATIVE- UNRESTRICTED FUNDS – MOVEMENT IN THE YEAR

General Funds – School
Trading Company		 Balance at
1 September
2020
£
13,987,894
79,390
£14,067,284		 Incoming
Resources
£
13,602,552
20,464
£13,623,016		 Resources
Expended
£
(12,860,331)
(92,405)
£(12,952,736)		 Transfer
£
184,393
-
£ 184,393		 Balance at
31 August
2021
£
14,914,508
7,449
£14,921,957

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
Allotment Fund
Aldworth Partnership Fund
Other designated funds		 Balance at
1 September
2021
£
18,573
200
11,228
504
4,330
641
870
113
3,199
-
£
39,658		 Incoming
Resources
£
9,799
-
223
-
1,700
532
-
-
4,622
666
£
17,542		 Resources
Expended
£
(16,607)
-
(1,078)
-
(250)
(595)
(70)
-
(2,363)
-
£
(20,963)		 Transfer
£
-
-
-
-
-
-
-
-
-
-
£
-		 Balance at
31 August
2022
£
11,765
200
10,373
504
5,780
578
800
113
5,458
666
£
36,237

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

Page 32

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

2021 COMPARATIVE- 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
Allotment Fund
Aldworth Partnership Fund		 Balance at
1 September
2020
£
18,453
200
11,193
1,228
2,780
878
870
-
5,544
£
41,146		 Incoming
Resources
£
2,462
-
408
972
1,700
728
-
892
1,773
£
8,935		 Resources
Expended
£
(2,342)
-
(373)
(1,696)
(150)
(965)
-
(779)
(4,118)
£
(10,423)		 Transfer
£
-
-
-
-
-
-
-
-
-
£
-		 Balance at
31 August
2021
£
18,573
200
11,228
504
4,330
641
870
113
3,199
£
39,658

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
Helen Wells Donation
Hambling Donation
Wilkinson Donation
El Downey Donation to Chess Club
Performing Arts Centre
Rowing Fund
Bursary Fund
Property Revaluation Surplus Fund		 Balance at
1 Sept
2021
£
100
100
4,000
2,000
200
-
400
-
-
20
15,250
5,271
27,341
118,785
2,772,000
£2,918,126		 Incoming
Resources
£
-
-
-
-
-
3,414
-
4,167
1,000
-
-
6,050
14,631
219,562
-
£ 234,193		 Resources
Expended
£
-
-
-
-
-
(3,040)
(389)
-
-
-
-
(780)
(4,209)
(139,000)
(26,400)
£ (169,609)		 Transfer
£
-
-
-
-
-
-
-
-
-
-
-
-
-
(139,956)
-
£ (139,956)		 Balance at
31 Aug 2022
£
100
100
4,000
2,000
200
374
11
4,167
1,000
20
15,250
10,541
37,763
59,391
2,745,600
£2,842,754

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 33

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

2021 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
Helen Wells Donation
El Downey Donation to Chess Club
Performing Arts Centre
Rowing Fund
Bursary Fund
Property Revaluation Surplus Fund		 Balance at
1 Sept
2020
£
100
100
5,000
2,000
200
6,458
-
-
15,250
4,766
33,874
121,882
2,798,400
£2,954,156		 Incoming
Resources
£
-
-
-
-
-
-
500
20
-
12,469
12,989
181,296
-
£
194,285		 Resource
s
Expended
£
-
-
(1,000)
-
-
(6,458)
(100)
-
-
(11,964)
(19,522)
-
(26,400)
£ (45,922)		 Transfer
£
-
-
-
-
-
-
-
-
-
-
-
(184,393)
-
£(184,393)		 Balance at
31 Aug 2021
£
100
100
4,000
2,000
200
-
400
20
15,250
5,271
27,341
118,785
2,772,000
£2,918,126

23. CAPITAL COMMITMENTS

At 31 August 2022 the School had capital commitments amounting to £349,861 ( 2021: £292,843) .

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 £108,324 (2021: £86,194).

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 £4,218 (2021: £5,633) and at the year end there was a creditor of £Nil (2021: £Nil) owing to them.

Page 34

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

25. OPERATING LEASE COMMITMENTS

At 31 August 2022 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
2022
2021
£
£
60,000
64,519
60,000
64,519
180,000
181,715
5,880,000
5,108,400
£ 6,180,000
£ 5,419,153		 Other
2022
2021
£
£
93,233
76,777
85,858
22,148
117,533
52,714
-
2,409
£
296,624
£
154,048

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.

2022 2021
£ £
GROUP
Financial assets measured at amortised cost 4,194,802 3,906,990
Financial liabilities measured at amortised cost (2,451,048) (3,357,803)
The Group’s income, expense, gains and losses in respect of financial instruments are summarise
below:
GROUP & COMPANY 2022 2021
£ £
Interest income and expense:
Total interest income for financial assets held at amortised cost (667) (487)
Total interest expense for financial liabilities held at amortised cost 39,197 46,755
2022 2021
£ £
CHARITY
Financial assets measured at amortised cost 4,049,362 3,893,699
Financial liabilities measured at amortised cost (2,444,022) (3,351,963)

The Group’s income, expense, gains and losses in respect of financial instruments are summarised below:

Page 35

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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

Increase in cash in the year
Net movement in Advanced Fee Scheme
Loan repayments
HP repayments
Change in net funds/(debt)
Net debt at 1 September
NET FUNDS/(DEBT) AT 31 AUGUST
8.
ANALYSIS OF CHANGE IN NET FUNDS
Cash at bank and in hand
Advanced Fee Scheme
HP
Loans		 Net debt as at
1 September
2021
£
3,888,232
(767,482)
(27,967)
(1,966,204)
£ 1,126,579		 2022
£
106,605
242,516
755,579
21,126
1,125,826
1,126,579
2,252,405
Cash
Change
£
106,605
242,516
21,126
755,579
1,125,826		 2021
£
1,380,448
(46,863)
452,175
21,126
1,806,886
(680,307)
1,126,579
Net funds as
at 31 August
2022
£
3,994,837
(524,966)
(6,841)
(1,210,625)
£
£ 2,252,405

28. ANALYSIS OF CHANGE IN NET FUNDS

Page 36

READING BLUE COAT SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

29. COMPARATIVE 2021 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
Grants and donations
Total income
EXPENDITURE ON:
Charitable activities
School operating costs
Raising funds
Trading expenditure
Financing and other costs
Total expenditure
NET INCOME/(EXPENDITURE)
Transfer
NET MOVEMENT IN FUNDS
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£
12,788,306
728,453
487
40,716
20,464
53,525
13,631,951
12,874,276
10,515
78,368
12,963,159
668,792
184,393
853,185
14,108,430
£ 14,961,615		 Restricted
funds
£
-
-
-
-
-
194,285
194,285
45,922
-
-
45,922
148,363
(184,393)
(36,030)
2,954,156
£ 2,918,126		 Total funds
2021
£
12,788,306
728,453
487
40,716
20,464
247,810
13,826,236
12,920,198
10,515
78,368
13,009,081
817,155
-
817,155
17,062,586
£ 17,879,741

Page 37