The Royal Grammar School, Gulldford Foundation Dlrectors, Report & Financial Statement5 Forthe Year Ended 31 July 2021 Reglstered Number 4232306 Charlty Number 1089955
The Royal Grammar School, Gulldford Foundatlon Content Paze Alms. Oblectlves and Actlvltles Revlew of Actlvltles and Achlevements 2020.2021 Future Plans Status. Governancè and Managemènt 34 Prlntlple Rlsks and Uncèrtalntlés Flnanclal Revlew Reference and Adminislratlve Details Statement of Dlrertors, Responslbllltles Report ot the Independent Audltors 9-11 Statement of Flnanclal Artlvllles 12 Balance Sheet 13 Cashflow Statement 14 Ac¢ountln8 Poll¢les 15-16 Notes to the Flnanclal Statèmènts 17-19
The Royal Grammar School, Gtslldford Foundatlon kevlew of Activlties and AchieMentS A5ms and Ob ertlves The Dlrectors, who Bre also the Trustees, of the Royal Grammar School, Guildford Foundation I'The Foundation'l present their annLJal report and audited financial statements for the year ended 31 July 2021 and confirm they comply with the requlrèments of the Companies Act 2006, Charities Att 2011. the trust deed and the FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland. OurAlms 2. The Foundation is established to promote, provide for and raise fund5 for the ch3rStable purpose5 of RGS and Lanesborough (the School) and otherwise to promote any other charitable purpose connected with or othenvise associated with the School. 3. The Trustees have considered the stated object in the light of the Charlty Commission's general guidance on public benefit and the consultation draft on supplementary guidance on 'Publlc Benefit and the Advancement of Educat5on" They are sat15fied that the object is for the advancement of education and that there is an identifiable public benelit that Ss available to a section of the public being the pupilslrecipients of education at the School. Our Ob ectlves The Foundatlon has two key obSectives.' raising funds, especially for bur5arles, and secondly to build ? supportive community of parents, alumni and others who can offer financial and nDn-financial support to the School. Both are achieved by developing relatlonships with individuals within the wider School community. The Trustee5 are aw3re that the generation of funds for the beneflt of the School will asslst It in its endeèvour to ensure that all boys who meet the entrance criteria may have the opportunity to attend the School, regardless of the financial means of thelr parents. These oblectives and the activities undertaken to achieve them exlst to reflect the aim5 Qf the Foundation and meet the Charlty Commission's requirements for publSc benefit. Our Actlvltles The appointment of a Development Director in January 2014 led to the creation of a new five-year strategy, based on developing a philanthropic culture and building a long-term fundraising plan for bursaries. The key priorities identified in it are to build a culture of giving through the school community. to steward existing donors so that their support would extend Into the future and to glve tlme and resource to a major donor programme. Following the set-backs of the coronavirus pandemic in 2020-21, the first phase of thè campalgn for bursaries resultlng from that strategy concluded in the Autumn of 2021. The Foundation's fundraislna activities are based, wherever possible, on recruiting regulargifts to ensure predictable, tax effScient income streams. Initiatives Include the operatSon of a Friends scheme and, under the aegis of a campaign for bursaries, a variety of higher-level regul3r-glvlng opportunitles. Income 15 3150 sought from Trusts & Foundations in support of bursaries and from corporate sources for sponsorship activities such a5 events, technology or staff investmerit. Legacies are also sought, and merchandise is sold to promote awarene55 of the School. Stewardship programmes are in place for the various fundraisin8 initiatives. All activltle5 promote ongoing engagement through sharln8 the irnpacl of phllènthropic Support. When finlshing school, all pupils betome Old Guildfordlans and are aulomatlcally included in the alumnl programrlle. This programme of communications and events is managed and run by the Development & Alumni Relations office IDAROI, OARO has taken over the alumnl programme which previously ran under the auspices of the Old GulldfordSans' Assoclatlon IOGAI whlch was disbanded In 2015116.
ThÈ Royal Grammar5thool. Gulldford Foundation Revlew of Artlvltles and Achievements 10. The Development & Alumni Relations Office also manages a professic)nal and soclal networking platform RGS Connect. Launched in May 2017, it offer5 mernbers of the RGS community the opportunity to '8ive back, throu6h the sharlng of skills, knowledge and experience. The platform and other connections are 3150 used to organise a series of sector-specific cèreer seminars. in conjunction wlth the Higher Educatlon & Careers team, for the benefit of boys at the School and pupils from the local sewndary schools. 11. The Directors have considered 311 the activities of the Charity against the Commission's Public Beneflt Guld8nce and are of the opinion that the mix of practical Support for education ?nd fundraising for a registered edLJCational establishment and the provlsSon of educational events to which other schools are nvited delivers public benefit consistent with the ChaTity's aims and thereby meets the public benefit prln¢iples. In partlcular, fundraislng for bursaries generates funds Intended to ensure that access to the School is as open as possible to families of all means. Review of Artivltles and Achlevements 2020.21 Fundralsln 12. The Foundation exceeded its budgeted income this year, Income sources included.. al Major Donor regular giving bl 'C13S5 of... fellowship Eiving from the parent5 of U6 Leavers cl Friends of the RGS dl Fundraising Events, Sncluding a second digital Giving Dav el Gift from 1509 group International companles fl Merchat)dlse gl Corporate 5ponsorshlp h) Unsolicited gifts 13. The malorlty of the funds ralsed by the Foundation are made tax efficiently through the government's Gift Aid scheme. Donations are allocated in line with donors, wishes where specified. Unre5trlcted fLJnds are currently applied to the School's funding priorityi which is bursaries. The day to day running costs of the Foundatlon and the Development & Alumn5 RelatSons Offlce are met by the School, not from voluntary income. The 2020-21 year activities included a second digital givin8 dayi following from the first ever successful giving day in 2019 whSch raised £132.000 from 434 donors. The 2020-21 giving day raise £114,000 from 1.362 donors including 911 staff and pupil5. 14. Donor stewardshlp remains a key element of all fundralsing activity. Each year the Foundation produces a Supporters Review, updating on progress and celebrating imp8Ct. Supporters are also invited to an annual Supporters Reception which aims to bring together all our donors to celebrate success, offer our thanks and Share the impact of their philanthropic support. DLJe to the coronavlrus pandemic. this event was held online in 2020 and 2021 but there are plans to resume in-person celebration5 later in 2021.
The Royal Gramm3r5chool, Gulldford Foundatlon Revlew of Actlvltles and Achlevements Alumnl Relatlons IS. There were no In-person alumnl events during 2020-2021. The Development and Alumni RelatSons Office continued contact with the alumni community through onllne communlcations and held online virtual events which Included.. al An alumni IOGI quiz bl A networking and career '8reakfa5t Club talk, for the whole RGS communltv cl A le8acy 'lunch' rneetSng for the Beckingham Soclety, the alumni legacy members dl Concerts, carol services and Kings lectures onllne el ContinLJed phone contact with older OGS and stewardship by phone Production of OG magazine DialOGue Careers Pu Ilsu ort 16. There were no in-person career seminars held but alumnl were encouraged to Ljse RGS Connect for careers networklng, mentoring and support. An Economics talk by an ?lumnu5 wa5 delivered to current A- level students. Future Plarts 17. The Headmaster's long-term vision that RGS Gulldford will achieve full merit-based open access within a generation will continue to influence all fLJture strate8ic development plans so that every boy who earns his p13ce by merit is able to take it up, irrespective of financial circumstances Wlthin his family. 18. FLJndraising will continue to focus on fundraising for bursaries from the alumni and friends base and w511 focus on encouraging regular multi-year donatlons. Key to this strategy 15 to contlnue to embed this ethos of 'widening access, at all leve15 of the RGS community and build a shèred philanthropic culture from Governors and current staff member5. The Status of the Foundation 20. The Found3tign is a Company Ilmlted by guarantee and has no sharè capital. The Foundation has one voting member, 1509 Group. whlch undertakes to contribute an amount not eXCeedn8 £10 to the assets of the FoundatlDn In the event of it being wound up whilst it is a member, or wlthin one year of its ceasing to be a member. If, on the winding up or di5501ution of the Foundation, there remains any property this shall be dSstributed to 1509 Group or to some other charitable Institute or institutions havlng objects similar to the objects of the Foundation. The 1509 Group is the parent undertakin8 of the Foundation. The 1509 Group is the holding company of both Foundatlon and RGS & Lanesborough. The 0Srectors Offlcers and Advisors 21. There are currently four Directors. 1509 Group appointed one Director. The remaining Directors were appointed by the member, on the recommendatSon of the School. We were pleased to welcome Chri5 Alder to the Board in July 2021. The names of all the Directors of The Royal Grammar School, Guildford Foundation and of the Officers and Advisors to the Foundation are set out on page 7. 22. Directors, who are also charity trustees, are selected for their commitment to our philanthropic ambStions, thelr networks and connectlons to help raise funds and their knowledge and experience of the School.
The Royal Grammar School, Gulldfoid Foundatlon Rtvlew of Actlvltles and Achlevements 23. All Directors glve their time freely and no remuneration or expenses were paid in the year. No Director or person connected with a DirectOT received any benefit from either means tested bursarles or scholarships awarded to the School'5 pupil5. Récrultment and Tralnln of Trustees 24. The Headmaster, Chair of Governors and existing trustees work with the Development Dirertor to identify prospective Trustees and asslst in their Induction. Prospectlve Trustees are invited to a number of School events in order to meet mernbers of the school leadership team and Bre given tonsiderable background material regarding the School, its philanthropic history and current fundraising strategy. The legal and fiduclary responslbilitles as a charity trustee are made clear as well as the primary role of Foundation trustees as fundraisers and networkers. Every prospective trustee will meet at least one other existing Trustee independently before taking up the position. Induction includes a visit to the School, the opportunity to meet key staff member5 and sessions with the Development Oirector and Burs3r regardlng fLJndralslng and the Foundation strategy, School and Foundation finances and School governance respectively. Most Trustees wlll have been recrulted through an exlsting Trustee who wlll provide mentoring support as needed. Where Trustee has been recruited by a staff member or School leadership, a Trustee will be appolnted to offer thls support. 25. Trustee Terms of Reference and a Memorandum of Understanding between the School and FoundatSon are both in place. Admin15tratlon 26. The Dlrectors are responsible for the strateglc mènagement of the Foundation. By aEreement between the School and the Foundation, the School provides administrative resources for the Foundation free of charge, thus allowing the Directors and officers to concentrate their efforts on the tasks of supporting the School and of fundraising. Day to day operational man38ement 15 delegated to the Development Director, who is not a director of the Company, Financial matters are overseen by the Treasurer.
The Royal Grammot School, Gulldtord Foundatlon Flnanclal Revlew Flnanclal Revlew 27. The Foundation recelved £839,03912019-20'. £617,520) through donations, with restrlcted donations totalling £837,97912019-20.. £616,898). Sale of merchandise generated a further £2,34712019. 20.. £3,443) during the ye?r. Corresponding cost of sales came to £72912019-20.' £1,795). The Foundation gave £339,50012019-20.. £306,000) to the School during the year. 28. The School has agreed to provide, free of charge, the admlnlstratlve resoijrces for the Foundation's fundraising, alurllni relations and development work in the expectation that significant donations and other benefits will be generated for the School. Since March 2020 our operations have been impacted by the coronavirus pandemlc. Staff are able to work remotely with fundraising and alumnl relations activlties being conducted on-line. RGS & Lanesborough bears the costs of the Foundation's core fundraising, alurllnl relations and development work. Special meétings of the Foundation Board convene regularly to addre55 the emerging issues and develop action plans to support contlnLJed operations. Budgets and cashflow forecast5 have been prepared whlch covÈr the p¢riod to JanLJary 2023. These include consideration of the key risks arising from the current crisi5 alongside the company's planned response and sensitivity analysis around significant assumptions. Accordlngly, the trustees believe the School'5 financial resource5 alongside the plans they have in place are sufficientto ensure the Foundation 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 80ing concern bas15. Prlncl al Rlsks and Un¢ertalntles 29. The Oirectors will review the Foundation's risk a5sessment5 at le35t annually) and more frequently Sf ppropriate to take into account ¢h8ngin8 circumstances. The main risks are identified zs.. al Failure of the School to adopt a fully Integrated approach to fundraising, from strategy to communications, leading to an inability to realise the philanthropic fund5 needed to achieve the School's stated alm of full merit-b3sed open access withSn 3 generation. The Governors have convened a working party of Governor5, Trustees and staff to address this Issue and make recommendations to the School. bl Cyber-attack, causing rnar theft, loss or corruption of data or systems, which ¢ould damage the Foundation's operations or reputation. The safety of system5 15 re8ularly revlewed along with the development ol disaster recovery systems, the review of policies and passwords, with updates and training for staff on these. cl Fallure to recruit a suitable new Development Dlrector In a tlmely fashlon to replace the exSstln8 Development Director who left at the end of 2020121. The HÈadma5ter lèad a transillon plan and the recruitment process began in early 2020121, with zn appointment made in mid-2021. dl Incidence of a pandemlc adversely affecting fundraislng actlvities and donor flnances. Regular meetings of the Foundation Board have been convened to address the emerging issues and needs and a revlsed fundralsing plan has been prepared in light of the sltuation. Performante a8aSnst revised plans and forecast is regularly reviewed to monitor cash and operational resources. Fundraising campaign5 and initiative5 are beSn8 conducted on-line and actlve 5tewardshSp of the exlsting donor baso continues. el Data protection change5 which could lead to a significant drop in the number of those from the RGS community with whom the Foundation can communlcate. Work Is ongoing with the Bursar to ensure that data capture and collection activlty continues to be legal and effective for fLJndraising and marketing purposes.
The Royal Grammar School, Gulldford Foundatlon Flnanclal Revlew Sources af Fundln 30. Almost all of our funding comes from alumnl of the School (called Old Guildfordiansl and parents and staff, past and present, In recent year5 profits from the overseès ventures of the 1509 Group have 8150 been gifted to the Foundation to support bursaries. Additionally, in yoars where there is a surplus of bursary budget Over bursary need in the School, the balance Is gifted to Foundation te support future bursarles. A small number of Trusts & Foundations also offer their support. 31. The Foundation's fundraising actlvitSes are carrled out by an in-house staff team, funded by the School. No professional fundraising organisations or commercial participators are currently used by the Foundation. The Foundatlon adheres to the Code of Fundraising Practice when undertakln8 fundralsing activity. Fundraising actlvity is limited to those with an existing connection to the School and includes a limited amount of fundlng from Trusts. Major donor and one-to-one fundraising is the Foundation's key mode of fundraising which helps to ensure that philanthropic relationships are not developed with anyone who might be vulnerable or be in vulnerable circumstances. There were no complaints received by the Foundation in respect of fundraislng actlvitv, Investment and Reserves Poll 32. In 2016117, the Foundation launched an EndurinE Bursary Fund, In line with ils long term strategy. The fund is grown using 5peciflc legacy and restricted gifts, any surplus in unrestricted 8ifts to the Foundation and any unspent funds from the Sthool's annual bursary allocatlon. Funds are currently being held on deposit. The FLJnd may be used If there is a shortfall In phllanthroplc fundlng in a given yezr, to meet bursary commltments. 33. The Foundation's total reserves of £1,004k at the year.end12019-20: £575kl included £875k of unspent restricted income12019-20'. £410kl, and £129k of unrestricted income12019-20.' £165kl. The Foundation dDes not seek to carry slgnlflcant levels of free reserves for contingency purposes. 34. Funds and other donations received for the School have been passed on in a timely manner, to be used for the purposes lor which they were nominated. The Directors have reviewed the financial performance of the charity and believe there are sufficient funds lo continue operating for the foreseeable future and there are no material uncertainties surrounding the FDuNdation's ability to tontlnue as a 8olns concern. The accounts of the charity have therefore been prepared on a 6oit)g concern basis. sclos Inform tlon to Au 35. The Directors who held office at the date of approval of this DSrectors' Report conflrm that, so far 85 they are individually aware, there is no relevant audit information of which the Company's auditors are unaware, and each Director has taken all reasonable steps that they ought to have taken as a Director to make themselves aware of any relevant audit information and to establish that the Company's audltor$ are aware of that Information.
The Royal Grammar School, Gulldford Foundatlon Reference and Admlnlstratlve Detalls Directors 1509 Group M Norburv I Pearce A Bakrania H Styche-Patel l Eves C Alder AppolntÈd by RGS & Lanesborough Retired 5 July 2021 Retlred 25 February 2021 Retired 25 February 2021 Appointed 6 February 2020 Appointed 6 February 2020 Appointed 5 july 2021 Honorar Offlcèrs The Headmaster Imcox Secretary & Treasurer C M Perceval Re ered Office The Royal Grarnmar School High Street Gulldford SurreyGUI 38B Advlsors Prlnclpal Bankers National Westminster Bank PIC Guildford Commerclal Offlce PO Box 1. 2, Floor G3 Guildford Surrey GUI 3ZR Auditors Crowe U.K. LLP 55 Ludgate Hill London EC4M 71W Sollcltors Barlow Robbins LLP The Oriel Sydenham Road Guildford Surrey GUI 3SR Company Number 4232306 Charlty Number 1089955
The Royal Grammar School. Gulldford Foundatlon Statement of Dlrectors, Re5ponsiblllti*s Statement of Dlrectors, Res onslbllltles The purpose of this statement is to distinguish the Directors, responsibilities for the Financlal Statements from those of the auditors as stated in their report. Company and Charity law require the Directors to prepare Financial Statements for each financS3l year that give 8 true and fair vlew of the state of affaSrs of the Company and of the surplus or deficit of the Companv for that year. Under company law the directors must not approve the flnancial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those Financi81 Statements the Directors are required to.. select suitable Accountin8 Policles and then apply them consistently,, observe the method5 ènd principles of the Charities, SORP,. make judgment5 and estimates that are reasonable and prudent., State where appllcable UnSted Klngdom Accounting Standards have been followed, Subject to any material departures in the financial statements disc105ed and explained: prepare the Flnancial Statements on the going concern basis unless It is inappropriate to presume that the Company will contlnue in busine5S. The Directors are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial ptssStion of the Company and to enable them to ensLJre that the Financial statements cornply with the Companies Act 2006. They are also responsible for safeguardin8 the assets of the Company and hence for taklng reasonable step5 for the prevention and detection of fraud and other irregularities. Audltors 37. Crowe U.K. LLP has indicated willingness to continue In office and a resolutSon concernlng thelr reappointment will be proposed at the Annual General Meeting. Approved by the Dlr&ctors and si8ned on thelr behalf bv.. Dlrertor Dlrector Prlnt name Julie Eves Print name Date 0111212021 Date Ir
The Royal Grammarsthool, Gulldford Foundatloh Report of the Independent Audltors Independent Auditor's Report to the Members of The Royal Grammar School, Gulldford Foundatlon Oplnlon We have audited the financial statements of The Royal Grammar School. GuiSdford Foundation I'the charit3ble company'l for the year ended 31 july 2021 which comprise the Statement of Financial Activities, Charlty Balance Sheet, Statement of Cash Flows and notes to the financial statements, Including signiflcant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UniteLI Klngdom Accountlng Standards, Including Financial Reportlng Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice), In our opinion the financial statements.. give a tr¢Je and fair view of the state of the charitable company's affairs as at 31 july 2021 and of the charltable company's Income and receipts of endowment5 and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance wlth the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for th@ audit of the flnanclal statements 5ectlon of our report. We are independent of the charitable corllpany 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 responslbillties In accordance with these requirement5. We believe that the audit evidence we have obtained 15 sufficient and appropriate to provide a basis for our opinion. Conclusions relating to 8olng concern In auditing the financial statements, we have concluded that the trustee's use of the going concern basi5 of accounting in the preparatlon of the financial statements is appropriate. Based on the work we have performed, we have not IdentifSed any materlal uncertalntles relating to events or condition5 that, individually or collectively, may cast Sl8nificant doubt on the chèritable cornpany's or the charitable company's ability to continue as a going concern for a period of at least twelve months from when the flnanclal statements are authorised for issue. Our resp¢nsibilitie5 and the responsibilitie5 of the trustees with respect to going concern are described in the relevant sections of thls report. Other information The trustees are responslble for the other informatSon contained within the annual report. The other information comprises the information included in the annual report, other than the financial Statements and our audltor's report thereon. Our opinion on the financlal statements does not cover the other information and, except to the extent otherwSse 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 incon55stent 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 maler121 mlsstatements, we are required to determine whether this gives rise to a materlal misstatement In the fin3ncial 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 thls regard.
The Royal Grammar khool, Gulldford Foundatlon Report of the Independent Auditors Oplnlons on other matters pres¢rlbed by the Companles Act 2006 In our opinion based on the work undertaken In the course of our audit the information given in the trustees, report, whlch Includes the directors, report and the strategic report prepared for the purposes of company law, for the financial year for which the financlal statements arè prepared is con515tent with the flnancial statements,. and the strategic report and the directors, report included within the trustees, report have been prepared Sn accordance wlth applScable legal requlrements. Matters on whlch we are requlred to report by emceptlon In light of the knowled8e and understanding ol 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 withln the trustees, report. We have noth5ng to report In respect of the following matters in relation to which the Companie5 Act 2006 requlres us to report to VOLJ if, In our opinion-. adequate and proper accounting records have not been kept,. or the financial statements are not in agreement with the accounting records and returns,. or tertain dlsclosures of trustees, remuneration specified by law are not made,. or we have not re¢@Ived all the informatlon and explanations we requlre for our audit. Responsibilities of trustees As explained more fully in the trustees, responslbilities statement, the trustees (who are also the directors of the charitable cernpany for the purposes of company lawl are responsible for the pieparatlon of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from materlal misstatement, whether due to fraud or error. In preparing the financial statements, the trustee5 are responsible for assesslng the charitable compansrts ability to continue 35 3 80in6 concern, discloslng, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to Ilquldate the charltable company or to cease operations, or have no realistic alternative but to do so. Audltorfs responslbllltles for the audlt of the flnancial statements Our objectives are to obtain reasonable assurance about whether the financial statements a5 a whole are free from material mi55tatement, whether due to fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable assurance 15 a high18vel of assurance, but is not a guaranteè that an audit conducted in accordance with1SAs IUKI will always detect a material mlsstatement when it exists. Misstatements can arlse from fraud or error and are considered materlal If. indlvidu3lly or in the a8gregate, they could reasonably be expetted to influence the economic decision5 of users taken on the basls of these fln8ncial statements. Details of the extent to which the audlt was consldered capable of detecting irregularities, Including fraud and non-compllance with laws and regulations are set out below, A further description of our responsibilitie5 for the audit of the financlal statements is located en the Flnanclal Reportin8 Countll's webslte at.. www.frc.or .uk auditorsres onsibililies. This destription forms part of our auditor's report. Extent to whlch the audit was consldered capable of detectln8 IrYe8ularltSes, IncludlnB fraud rregularitie5, includin8 fraud, are instances of non-compllance with laws and regulations, We identified and assessed the risks of material misstatement of the financial statements Irom irregularities, whether due to fraud or error, 8nd dlscussed these between our audit team n)embers. We then designed performed audit procedures responsive to those risks, includin8 obtaining audlt evidence sufficient and appropriate to provide a ba515 for our opinion. 10
Thè Royal Grammar School, Gulldford Foundatlon fieport of the Independent Auditors We obtaSned an understanding of the legal and regulatory frameworks within which the charltable company operates, focusing on those laws and regulations that have a direct effect on the determinatlon of material amounts and disclosures in the financial staternents. The laws and regulations we considered iii this context were the Cornpanies Act 2006, taxation legislation, employment legislatlon and general data protection legislation, together with the Charities SORP IFRS 1021. We assessed the required compliance with these law5 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 dlrect effect on the flnanci31 statements but cornpliante wlth which might be fundamental to the charitable company's abilitv to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist wlthin the charitable cornpany for fraud. The laws and regulations we considered in this context for the UK operations wa5 the Companies Att 2006. Audltin8 Standards Ilmit the requlred audlt procedures to identify non-compliBnce with these laws and regulations to enqulry of the Trustee5 and other mariagement and inspection of re8ulatory and legal correspondence, If anv. We identified the greatest risk of material impact on the finaricial statements from irregularities, includlng fraud, to be within the timlng and recognition of donation Ii)come and the override of controls bv rnanagement. Our audit protedures lo respond to these risks included enquirie5 of management and the Finance and General Purposes Comrnlttee about their own identification and assessment of the risks of irregularities, sarnple testing on the posting of journals. reviewlng accountlng estlmates for biases, reviewing regulatory coriespondence with the Charity Commission and reading minutes of meetings of those charged with governance. Owing to the Inherent limitations of an audit, there Is an unavoldable risk that we may not have detected some material misstatemenls in the financial statements, even though we have properly planned and performed our audlt in accordance wlth auditing standards. For example, the further removed non. compliance with13ws and regulations Ilrre8ularitiesl Ss from the events and transactions reflected In the flnancial staternents, the less likely the inherently limited procedures required by auditing Standards would identify it. In additlon, as with any audit, there remained a hlgher risk of non-deteclion of irregLJlarities, as these may involve collusion, forgery, Sntentional omissions, mlsrepresentatlons. or the override of Internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance wlth èll laws and regulatlons. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit worl( has been Ljndertaken so that we misht 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 fvllest extent permitted by law, we do not accept or assume responsibility to 3n¥one other than the charitable company and the charitable company's members as a body, for our audit worl(, for this report, or for the opSnlons we have formed. TSna Alllson Senior Statutory Auditor For and on behalf of CrowÈ U.K. LLP Statutory Auditor London 17 DeceMr 2021
Royal Grammar School, Gulldford Fourbdatlon Statement ot Flnanclal Activities 31$tJuly 2021 Reglstered Number 4232306 INCOME ANO EXPENDITURE ACCOUNT Unrestrlcted Funds Restrlcted Funds 2020.2021 Total 2019.2020 Total Notes Income From: Donation5 and legacies Income from trading activlties Investment Income Ila) Ilbl 1.060 2,347 129 837,979 839,039 2,347 129 617,520 6,268 428 Total Incomln8 resOue$ 3,535 837.979 841,514 624,216 Expendlture on: Charlt3ble actlvltles 2111 367,580 367.580 312,841 Ralsln8 funds 21bl 39.491 5,441 44,932 33,761 Total expendlture 39,491 373,021 412,511 346,602 NETMOVEMENT IN FUNDS 135.9561 464,9S9 429,003 277,614 Fund balances brought forward at l August 2020 165,127 409,661 574,788 297,174 Fund balances cafrled forward at 31 July 2021 129.171 874.620 1,003,791 574,788 The Company has no gains or losses that are not shown above. The accounting policies and note5 On pages 15 to 19 form part of these Financial statements. 12
Royal Grammar School, Gulldford Foundation Balance Sheet 31st July 2021 Re815tered Number 4232306 Notes 31 July 2021 31 July 2020 CURRENT ASSETS Stock RGS Debtor Gift Aid receivable Prepayments Cash 4131 19,968 91,000 11,956 541 904,261 1,027,726 19,082 55.000 8,898 18,783 521,474 623,237 CREDITORS.. due wlthln one year 41bl 123,9361 148,4491 TOTAL NET ASSETS 1,003.791 574,788 Represented by: RESTRICTED FUNDS 874,620 409,661 UNRESTRICTED FUNDS Designated and general fund5 129,171 165,127 Total funds 1,003,791 574,788 Approved by the Board of The Royal GrammHr School , Guildford Foundation and slgned on behalf of the Company by Director.. Dlrector... Prlnt name....J.ulio.EvRs. Print name.. 0111212021 Date......... The accounting policles and notes on pa8es 15 to 19 form pèrt of these Financial Statements, 13
Royal Grammar School, Gulldford Foundatlon Cashflow 31st Ivly 2021 Reglstered Number 4232306 2020-2021 2019.2020 Cashflows from operatlng actlvltles Net cash provided by operations 382,658 242.813 Cash flows from Investln8 actlvltlos nweslment income receipts 129 428 129 428 Chan8es In cash and cash equlvalents In the reportin8 perlod 382,787 243,241 Cash and cash equlvalents at l August 521,474 278.233 $h Jnd cash equlvalents at 31 July 904.261 521,474 Net Cash Inflowlloutfjowl from Operatlng Attivities 2020-2021 2019-2020 Net Movement In funds Iincreasel in debtors and prepayments ID&crea5elllncrease In Credltors Investment income Ilncreasel In Stock 429,003 120,8161 124,5141 11291 18861 277,614 174,5061 42,538 14281 12,4051 382 658 242 $13 Changes In Cash and Cash Equlvalents Asat 31 July 2021 ocNJs Asat 31 july 2020 Analysis of Net Funds Cash Flow 0005 Net cash balances 904,261 382,787 521.474 The accounting policies and notes on pages 15 to 19 form part of these Financlal Statement5. 14
The Royal Grammar School, Guildford Foundatlon Attountln8 Pollcles B3s1s of accountln The Financlal Statements are prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Charities Act 2011, the CompBnies Act 2006, and the Statement ol Recommended Prattice applitable to charities preparing their account5 in accordance with the Financial Reportln8 Standard applicable in the UK and Republic of Ireland IFRS 1021- The accounts are drawn up on the historical cost accounting basis. The directors have a reasonable expectation that the company has adequate resources to cL)ntinue Sts actlvities for the foreseeable future and conslder that there were no material uncertainties over the company'5 financial viability. Accordinglv, they also continue to adopt the goln8 concern basis in preparing the flnancial statements as outlined in the Statement of Dlrectors, Responsibilities on pa6e 8. At the time of approval of the Annual Report, the COVID-19 pandemic continues to evolve and the long term Impact on the Foundation, in common wlth other entlties, Is unknown. As detailed in the flnancial revlew. RGS & Lanesborou8h bears the costs of the Foundation's fundraising, alumni relatlons and development work. The Trustees believe the Schoo15' financial resources are sufficient to ensure the Foundation will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the finaftclal statement and have therefore prepared the financial statements on a going concern basis. The Foundation Is a Publlc Beneflt Entity re8lStered as a charlty In England and Wales and a company limlted by guarantee. It was incorporated on Il, June 2001 Icompany number 423230601 and registered as a charity on 3, january 2002 Ich3rlty number 10899551. The Foundation's reglstered office Is The Ruyal Grammar School Guildford, High Street, Gulldford, Surrey GUI 3BB. CrltScal accountlrt ud ements and ke sources of estimatlon uncertaint In the appllcation of the accounting policies the directors are required to make judgement, estlmates, and 35sumptlons about the carrylng value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experiemte and other factors that are considered to be relevant. Actual results may differ from these estlmates. The estimate5 and underlying assumptlons are revlewed on an ongolng 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 revislon and future periods if the revision affected current and future period5. In the view of the directors no assumptions concernlng the future or estimation uncertainty affectlng assets or liabilities at the balance sheet date are likely tl) result in a material adjustment to their carrying amounts in the next financial year. 15
The Royal Grammar School, Gulldford Foundaiion Accountlng Pollcles Statement of Flnancial Activities SOFA Transactions are analysed on the SOFA as follows.. Unrestrlcted funds 'Foundation' Expenses in f¢Jrtherance of the charitable objective to support RGS and Lanesborough and the Company administration. 'Designated' Any funds deslgnated for the Seneral use of the Company or designated for use by the School. Restrlcted fund Any fund5 held on behalf of RGS and Lanesborough or for other restricted purposes. Stock Stock is valued at the lower of cost and net reallsable value. Income and ex enditure With the exception of voluntary Income, income and expenditure is accounted for on an ?ccruals basis. Voluntary Incoming resources are accounted for as and when entitlement arlses, the amount can be reliabl¥ quantifSed, and the economic benefit to the company is considered probable. 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 vèlue to the company in the case of donated services OT facilitSes. Donatlons and Le acies Income from donations, grants and other sources Is recogni5ed on an accruals basis and included in the Statement ol Financi31 Actlvities ISOFAI when the Foundation is entitled to the income, when receipt Is probable and when it can be measured reliably. Legacies subject to a life interest by another party wlll not be recognised. Pecuniary legacies will be recognised when the legacy is recelved or where there is sufficient evldence that recelpt Ss probable. Residuary legacies are recognised at the earlier of cash received or notification of an interim dlstribution or estate accounts having been approved by the executors. Ex endlture Expenditure is allocated to expense headings either on a direct cost basi5 or apportloned accordSng to time spent. Expenditure 15 accrued as soon as a li3bi1Sty Is considered probable, discounted to present value for longer term liabilities. Flnan¢lal Instruments Basic financial instruments are initially recognised at transaction value, and subsequently measured at amortised with the exception of investments which are held at fair value. Fir)anclal assets that are amortised cost comprise cash at bank and in hand, together with trade and other debtor5. Cash at bank and in hand is defined as all cash held in Instant access bank accounts and used as workSn6 capltal. Financ¥1 liab51Itles held at amDrtised cost comprise all creditors. Taxatlon As a reglstered charity the Foundation is generally exempt from Corporatlon Tax but not from Value Added Tax IVAT). Irrecoverable VAT is Included In the cost of those items to which it relates. 16
Royal GrammaT Sthotsl, Gulldford Foundtytlon Notes to the accounts 315t July 2021 ReglstQd Numbei 4232306 l. Income lal Donations are received from Friends, other forms of regular donatlon, one-off glfts and lega¢ies. Ibl Foundation continues to sell morchandise. The tradln8 turnover rolatlng to those 5I1e5, whlch zre In¢luded In the Income Irorn tradlng a¢iiviiies, can be found below. 2020-21 2019.20 Sèles Turnover 2,347 3,443 11,7951 1,648 Cost of Sales Net Turnover 1,618 Icl Investrnent income comprises interest on Glft Aid and bank interest. 2. Charltable artlvltie$ lal DonatlDns recelved by the Foundatlon are passed on to the School following reclaim of tax under the GIftAld scheme. Ibl Cost5 In sUPPOrt of charltable actlvltles Include bank ch4rges and the rental of equlpment to all¢w bc¢eprance of donations by deblt and credit card, and totalled £5,46311020- £5,595) at the year end. 3. Governance cost5 Insur3ncÉ premiums. audit fee$ 8nd other statutory Costs were p3ld for bythe School. the Imm¢dlate parent undert3kin8 on beh811 of the Foundation. The Dlrector5 were not In recelpt ol any remuneratlon or expenses during the year, Current a55et$ lal Stock cons15ts of vorlous merchandlse Unsold 05 of the Veèr end. Ibl Credliors.. zmounts falllng due withln one year At 31 July 2021 At 31 July 2020 Accruals RGS creditor Other ¢redltor$ 33 21.904 1,999 23,936 33 48,363 54 48,449 5. Allo110# of the Charity net assets Restrl¢ted Funds Restrtlcted Funds within the Foundaii¢n 2r¢ made up of funds held which have been restricted by the donor. Wh@n donatlon5 are passed to the school the rostriclion5 remaln wirh them. RÈstrlcted fund5 are mainly made up of the Bursary Fund whl¢h receives restricted bursary donations. lal The net Jssets ai the balance sheet date are held for the various funds a5 follows= Net current A55etsl Net Clbrrent Assetsl 2021 2020 R8Strfct¢d 874,620 409,661 Unrestrlrted- general 129,171 165,127 Total Funds 1,003,791 574,788 17
Royal Gr?mmar School, Gulldford Foundatloh Notes to the i£¢ounts 31stJuly 2021 Re8lstered Number 4232306 B•lan¢e at 31st Julv Net 2020 Incomelllossl Donatlons 8alwnre at 31st July 2021 Grants and Allocation5 Ibl Funds.. movements In the year Restrlcted 409,661 15,4411 837,979 1367,5801 874.619 Vnrestrlcted. General 165,127 137,0161 1,060 129,172 574,788 142,4561 839,039 1367,5801 1,003,791 Comparallve Allocatlon of the Charlty net asseis lal The net assets atthe ba13nce sheet date are held lorthe v4rlous funds a5 follows Net current Assetsl Nettufrent Assetsl 2020 2019 Restrlcted 409,661 108,113 Untestrl¢ted- ienernl 165,127 189,061 Total Funds S74,788 297,174 Dalan¢e at 31st July Net 2019 Incomell10551 Donatl¢ns Grants and Allocatlons 31stJuty 2020 Ibl Funds.. movements In the year RÈstrlcted 108,113 15,S331 616,898 1309.8171 409,661 UnrÈstrlcted General 189,061 121,S321 623 13,0251 165,127 297,174 127,0661 617,521 1312,8421 574,788 6. Related party traTh5acllons The School Is the sole votlng Mernber of thp Foundatlon, thus making It the Iniermodlate Parent UndertakSn8. The Sch¢ol makes available to the Foundation staff and loglstlcal re50urce5,wiihovt charge, In exchange for the Foundatlon's work pro8ramme support of tht School. At the year end Foundatlon owed the school £21,904120?.O - Foundatlon owed School £48,363). 1509 Group Is the htsldlng company of both Foundation and RGS & L3neborou8h. Cople5 01 the consolidated accounts for the 1509 Group arÈ av31Iable from Iho re815tered office at rhe Royal Grammar School, High Strtet, Gulldford, Surrey GUI 38B. In 2020121. É339,50012Q19120 £306,000) of donations was passed from Foundation to the School, to be used for the purposes for which the don3tions wÈrÈ nomlnèted. In 2020121 the School 8lfied £91,OW to thc Found4tlon from unspont funds frorr thè School's annual bursary allocation this was rellccted In the cla51ng balance 12019120 155,0001. 18
Royal Grammar S¢hool, Gulldford Fouhdatlon Notes to the g¢counr$ 3istJuly2021 Re8lst¢r¢d Number4232306 Neither the Trustee5 nor person5 connected with them received any remuneration or other benÈfit5 from the Foundation or any connected organisations, Travel expense5 are only relmbtsrsed exceptlonally. 2nd with the prlor approval of the Chiirman. No expenses were reimbursed durln8 the period. In 2020121 the Foundètlon recelved a glft of £257k from 1509 group International Companies 12019120 £114kl, The TrustÈes danated £10,584 (Èxcludlng Glft Aldl to the Ftsundatlon In the year12019120 £11.2201. 7 Stai¢rn¢nt of Flnon¢141 Actlvltl¢s Unre5trlcted Funds R&stTlrt¢d Fund5 21J19-20 Total Income and Expendlture A¢¢ount In¢ome From Donatlons and legacles Income from Iradlng actlvltles InvestmÈnt Income 523 616,898 617,520 6,268 428 6.268 428 Income 616 898 624 216 EXPENDITURE Expendlture on Charltsble actlvltles.. C05t5 in support of 3,025 309,817 312,841 Cosis Inctsrred from ralsln8funds 28,228 5,533 33,761 Totsi ex9endlture 315 350 346 602 NET MOVEMENT IN FUNDS 123,9341 301,548 277,614 Fund balance5 brought forward at l AuBUSt 2019 189,061 108,113 297,174 Fund balances carrled forward at 31 July 2020 165,127 409,661 574,788