2024-07-31-accounts - The Royal Grammar School, Guildford Foundation

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The Royal Grammar School, Guildford Foundation

Directors’ Report & Financial Statements

For the Year Ended

31 July 2024

Company Number 04232306

Charity Number 1089955

The Royal Grammar School, Guildford Foundation

Contents
	Page
Reference and Administrative Details	1
Directors’ Report	2-4
Statement of Directors’ Responsibilities	5
Strategic Report	6-8
Report of the Independent Auditors	9-11
Statement of Financial Activities	12
Balance Sheet	13
Cashflow Statement	14
Notes to the Financial Statements	15-20

The Royal Grammar School, Guildford Foundation

REFERENCE AND ADMINISTRATIVE DETAILS

Directors

The Royal Grammar School Guildford Appointed by RGS H Styche-Patel Appointed by the member H Pearson G Williams

Honorary Officers

The Headmaster J M Cox Secretary & Treasurer C M Perceval

Registered Office

The Royal Grammar School High Street Guildford Surrey GU1 3BB

Advisors

Principal Bankers National Westminster Bank Plc Guildford Commercial Office PO Box 1, 2[nd] Floor G3 Guildford Surrey GU1 3ZR Auditors & Tax Advisors HaysMac LLP 10 Queen Street Place London EC4R 1AG Solicitors Barlow Robbins LLP The Oriel Sydenham Road Guildford Surrey GU1 3SR Company Number 04232306 Charity Number 1089955

The Royal Grammar School, Guildford Foundation

DIRECTORS’ REPORT

AIMS, OBJECTIVES AND ACTIVITIES

The Directors, who are also the Trustees, of the Royal Grammar School, Guildford Foundation (‘The Foundation’) present their annual report and audited financial statements for the year ended 31 July 2024 and confirm they comply with the requirements of the Companies Act 2006, Charities Act 2011, the trust deed, the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2015) Second Edition, effective 1 January 2019 and the FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland.

On 17 July 2024 the Foundation merged with, and became a cost centre of, Royal Grammar School Guildford (‘the School’). In these financial statements, references to The Foundation’s aims, objectives, functions, operations and activities refer to the period up to 17 July 2024, when The Foundation’s operations, assets and liabilities transferred to the School. From 17 July 2024, the Development & Alumni Relations Office (‘DARO’) assumed and continued to carry out the functions of The Foundation as a cost centre of the School.

Our Aims

The Foundation is established to promote, provide and raise funds for the charitable purposes of Royal Grammar School Guildford (the School) and otherwise to promote any other charitable purpose connected or otherwise associated with the School.

The Trustees have considered the stated object in the light of the Charity Commission’s general guidance on public benefit and the consultation draft on supplementary guidance on “Public Benefit and the Advancement of Education”. They are satisfied that the object is for the advancement of education and that there is an identifiable public benefit that is available to a section of the public, being the pupils/recipients of education at the School.

Our Objectives

The Foundation has two key objectives: to raise funds, especially for bursaries, and to build a supportive community of parents, alumni and others who can offer financial and non-financial support to the School. Both are achieved by developing relationships with individuals within the wider School community.

The Trustees are aware that the generation of funds for the benefit of the School will assist it in its endeavour to ensure that all boys who meet the entrance criteria may have the opportunity to attend the School, regardless of the financial means of their parents.

Our Activities

The Foundation has a strategy based on developing a philanthropic culture and building a long-term fundraising plan for bursaries. The key priorities identified 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 give time and resource to a major donor programme

The Foundation’s fundraising activities to date have been based on recruiting regular gifts to ensure predictable, tax efficient income streams. Initiatives include the operation of a Friends scheme and a variety of higher-level regular-giving opportunities. Legacy gifts are a less regular but highly valued contribution. Income is also sought from Trusts & Foundations in support of bursaries and from corporate sources for sponsorship activities such as events, technology or staff investment. Merchandise is sold to promote awareness of the School. Stewardship programmes are in place for the various fundraising initiatives. All activities promote ongoing engagement through sharing the impact of philanthropic support.

The Royal Grammar School, Guildford Foundation

On finishing school, all pupils become Old Guildfordians and are automatically included in the alumni programme. This programme of communications and events is managed and run by DARO.

DARO also manages a professional and social networking platform – RGS Connect. Launched in May 2017, it offers members of the RGS community the opportunity to ‘give back’ through the sharing of skills, knowledge and experience. The platform and other connections are also used to organise a series of sector-specific career seminars, in conjunction with the Higher Education & Careers team, for the benefit of boys at the School and pupils from the local secondary schools.

The Directors have considered all the activities of the Charity against the Commission’s Public Benefit Guidance and are of the opinion that the mix of practical support for education and fundraising for a registered educational establishment and the provision of educational events to which other schools are invited delivers public benefit consistent with the Charity’s aims and thereby meets the public benefit principles. In particular, fundraising for bursaries generates funds intended to ensure that access to the School is as open as possible to families of all means.

STATUS, GOVERNANCE AND MANAGEMENT

The Status of the Foundation

The Foundation is a Company limited by guarantee and has no share capital. The Foundation has one voting member, 1509 Group, which undertakes to contribute an amount not exceeding £10 to the assets of the Foundation in the event of it being wound up whilst it is a member, or within one year of its ceasing to be a member. If, on the winding up or dissolution of the Foundation, there remains any property this shall be distributed to 1509 Group or to some other charitable institute or institutions having objects similar to the objects of the Foundation. The 1509 Group is the parent undertaking of the Foundation. The 1509 Group is the holding company of both Foundation and Royal Grammar School Guildford.

Merger of The Foundation with Royal Grammar School Guildford

On 17 July 2024 the Foundation merged with, and became a cost centre of, Royal Grammar School Guildford (‘the School’). In these financial statements, references to The Foundation’s aims, objectives, functions, operations and activities apply to the period up to 17 July 2024, when The Foundation’s operations, assets and liabilities transferred to the School, with the DARO assuming and continuing to carry out the functions of The Foundation as a cost centre of the School.

The Directors, Officers and Advisors

There are currently four Directors. 1509 Group appointed one Director. The remaining Directors were appointed by the member, on the recommendation of the School. 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 1.

Directors, who are also charity trustees, are selected for their commitment to our philanthropic ambitions, their networks and connections to help raise funds and their knowledge and experience of the School.

All Directors give their time freely and no remuneration or expenses were paid in the year. No Director or person connected with a Director received any benefit from either means tested bursaries or scholarships awarded to the School’s pupils.

Recruitment and Training of Trustees

The Headmaster, Chair of Governors and existing trustees work with the Development Director to identify prospective Trustees and assist in their induction. Prospective trustees are invited to a number of School events in order to meet members of the school leadership team and are given considerable background

The Royal Grammar School, Guildford Foundation

material regarding the School, its philanthropic history and current fundraising strategy. The legal and fiduciary responsibilities 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 members and sessions with the Development Director and Bursar regarding fundraising and the Foundation strategy, School and Foundation finances and School governance respectively. Most trustees will have been recruited through an existing trustee who will provide mentoring support as needed. Where a trustee has been recruited by a staff member or School leadership, a trustee will be appointed to offer this support.

Trustee Terms of Reference and a Memorandum of Understanding between the School and Foundation are both in place.

Administration

The Directors are responsible for the strategic management of the Foundation. By agreement 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 management is delegated to the Development Director, who is not a director of the Company. Financial matters are overseen by the Treasurer.

The Royal Grammar School, Guildford Foundation

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The purpose of this statement is to distinguish the Directors’ responsibilities for the Financial Statements from those of the auditors as stated in their report.

Company and Charity law require the Directors to prepare Financial Statements for each financial year that give a true and fair view of the state of affairs of the Company and of the surplus or deficit of the Company for that year.

Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing those Financial Statements the Directors are required to:

select suitable Accounting Policies and then apply them consistently;
observe the methods and principles of the Charities’ SORP;
make judgments and estimates that are reasonable and prudent;
state where applicable United Kingdom Accounting Standards have been followed, subject to any material departures in the financial statements disclosed and explained;
prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Royal Grammar School, Guildford Foundation

STRATEGIC REPORT

REVIEW OF ACTIVITIES AND ACHIEVEMENTS 2023-24

Fundraising

The Foundation generated incoming resources of £371k for the period up to the merger on 17 July 2024. This included £320k of donations and £51k income from investments and trading.

Principal Income sources included:

a) Major Donor regular giving
b) ‘Class of…’ fellowship giving from the parents of U6 Leavers
c) Friends of the RGS
d) Sales of merchandise
e) Unsolicited gifts

Some of the funds raised by the Foundation are made tax efficiently through the government’s Gift Aid scheme. Donations are allocated in line with donors’ wishes where specified. Unrestricted funds are currently applied to the School’s funding priority, which is bursaries. The day to day running costs of the Foundation and DARO are met by the School, not from donated income.

Donor stewardship remains central to the Foundation’s Fundraising activity. DARO continued to produce the annual Supporters Review publication, which celebrates the impact of giving to the Bursary Campaign. Supporters were also invited to the annual Supporters Reception to celebrate, alongside members of the community which includes OGs, parents and former parents, governors and staff as well as former bursary holders the Foundation’s philanthropic successes.

Alumni Relations & Communications

DARO maintained contact with the alumni and former, as well as current, parent community through a full series of printed and online communications as well as in person and online events. The various activities included:

a) One online alumni (OG) quiz organised by a current staff member and OG
b) A legacy ‘lunch’ meeting for the Beckingham Society, for members who have made provisions for the School in their wills
c) A King’s Lecture with an OG TV Sporting Personality
d) Regular concert services at Holy Trinity Church
e) Continued stewardship of older OGs through personalised birthday cards for all OGs over 75 years of age sent each year
f) Production of the OG magazine DialOGue sent to all OGs by post and digitally to all the other members of the community: retired staff, governors, current and former parents
g) Weekly email newsletters to the RGS Community informing them of notable events in the alumni and School community
h) Anniversary reunions celebrating the OG graduation years: 30[th] Reunion, 50[th] Reunions and other ad-hoc events
i) Invitations to special OG organised reunions overseas: Singapore & New York

Careers & Pupil support

In 2023-24, DARO continued to provide help and assistance as well as organisation and logistics to the Careers programme held in School and aimed at a wider audience of current students, including state school pupils from the wider Surrey area. Support was provided in the organisation of the Career programme aimed at future Lawyers and Medics. Eight young Old Guildfordians practising Medicine and Law came back to share

The Royal Grammar School, Guildford Foundation

valuable insights from their practices with hundreds of current students. The audiences were current RGS students as well as students from local state schools.

FUTURE PLANS

“Road to 2035” Campaign

The Headmaster’s long-term widening access vision, that the School will be able to achieve full merit-based open access within a generation, continued to influence and shape future strategic development plans. Our aim is for every boy who earns his place at the School by merit is able to take it up, irrespective of financial circumstances. The vision led to the creation of the “Road to 2035” Campaign which aims to build a longterm investment fund (circa £13.5 million at the time of writing) to support bursaries long into the future for the School. This would mark the special celebration of the School’s 525[th] Anniversary in 2035.

The “Road to 2035” Campaign aims to encourage major donations from existing constituents: OGs, parents, former parents giving alongside regular cycle of donations. Key to this strategy is to continue to seek major giving prospects from the current database of School contacts as well as embed the ethos of ‘widening access’ at all levels of the RGS community to build a shared philanthropic culture so that by 2035, the School will be in a position to provide bursary support to every boy who applies and successfully qualifies for a bursary place. In practical terms, and with projected student bursary demands, this means the School would be able to double its provision for transformative bursary support.

FINANCIAL REVIEW

The Foundation received £320,494 (2022-23: £690,593) through donations, with restricted donations totalling £320,171 (2022-23: £690,002). Sale of merchandise generated a further £3,952 (2022-23: £4,733) during the year. Corresponding cost of sales came to £3,620 (2022-23: £2,342). The Foundation donated £366,015 (2022-23: £345,881) to the School during the year.

Until the merger on 17 July 2024 the School provided, free of charge, the administrative resources for the Foundation’s fundraising, alumni relations and development work in the expectation that significant donations and other benefits will be generated for the School.

On 17 July 2024 the Foundation merged with, and became a cost centre of, the School with the operations, assets and liabilities of The Foundation transferred to the School. Total net assets of £2,433k were donated to the School. The trustees therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern. The trustees have considered the non-applicability of the going concern assumption to the carrying value of the Foundation’s asset and liabilities, comprising gift aid receivable and a corresponding amount due to the School. The trustees consider that the merger did not affect the valuation of the Foundation’s remaining net assets in these financial statements and that therefore no re-valuation is required.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors review the Foundation’s risk assessments at least annually, and more frequently if appropriate to take into account changing circumstances.

The main risks are identified as:

a) Failure of the School to adopt a fully integrated approach to fundraising, from strategy to communications, leading to an inability to realise the philanthropic funds needed to achieve the School’s stated aim of full merit-based open access within a generation. The Governors have convened a working party of Governors, Trustees and staff to address this issue and make recommendations to the School.

The Royal Grammar School, Guildford Foundation

b) Cyber-attack, causing major theft, loss or corruption of data or systems, which could damage the Foundation’s operations or reputation. The safety of systems is regularly reviewed along with the development of disaster recovery systems, the review of policies and passwords, with updates and training for staff on these.
c) Data protection changes which could lead to a significant drop in the number of those from the RGS community with whom the Foundation can communicate. Work is ongoing with the Bursar to ensure that data capture and collection activity continues to be legal and effective for fundraising and marketing purposes.
d) Cost of living pressures on the donor community.

Sources of Funding

Almost all of The Foundation’s funding comes from alumni of the School (called Old Guildfordians) and parents and staff, past and present. In recent years profits from the overseas ventures of the 1509 Group have also been gifted to the Foundation to support bursaries. Additionally, in years where there is a surplus of bursary budget over bursary need in the School, the balance is gifted to Foundation to support future bursaries. A small number of Trusts & Foundations also offer their support.

The Foundation’s fundraising activities are carried 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 Foundation adheres to the Code of Fundraising Practice when undertaking fundraising activity. Fundraising activity is limited to those with an existing connection to the School and includes a limited amount of funding 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 fundraising activity.

Investment and Reserves Policy

The Foundation’s investments and reserves transferred to the School as part of the merger on 17 July 2024 and are therefore now covered by the School’s investments and reserve policies set out in the School’s 202324 financial statements.

Disclosure of Information to Auditors

The Directors who held office at the date of approval of this Directors’ Report confirm that, so far as 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 auditors are aware of that information.

The Directors’ Report and Strategic Report were approved by the Directors and signed on their behalf by:

Garth Williams

Henry Pearson Garth Williams Director Director Date: 25/03/25 Date: 25/03/25

The Royal Grammar School, Guildford Foundation

INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF THE ROYAL GRAMMAR SCHOOL, GUILDFORD FOUNDATION

Opinion

We have audited the financial statements of The Royal Grammar School, Guildford Foundation for the year ended 31 July 2024 which comprise the Statement of Financial Activities, Balance Sheet, 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:

give a true and fair view of the state of the charitable company’s affairs as at 31 July 2024 and of the charitable company’s net movement in funds, including the income 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 with the requirements of the Companies Act 2006.

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 charity 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.

Emphasis of matter – non-going concern basis of accounting

We draw attention to note 1 Accounting policies: Basis of accounting on page 15 of the financial statements which states that the financial statements have not been prepared on the going concern basis. Our opinion is not modified in this regard.

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

The Royal Grammar School, Guildford Foundation

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors’ Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ 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:

adequate accounting records have not been kept by the charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees for the financial statements

As explained more fully in the Directors’ responsibilities statement the trustees (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 trustees 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 trustees are responsible for assessing 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 trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Royal Grammar School, Guildford Foundation

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to GDPR and charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to regulations related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:

Inspecting correspondence with regulators and tax authorities;
Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
Evaluating management’s controls designed to prevent and detect irregularities;
Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
Challenging assumptions and judgements made by management in their accounting estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company's member, 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 member 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 member, as a body, for our audit work, for this report, or for the opinions we have formed.

Tracey Young (Senior Statutory Auditor) For and on behalf of HaysMac LLP, Statutory Auditor

Date: 6 June 2025

10 Queen Street Place London EC4R 1AG

Royal Grammar School, Guildford Foundation

Statement of Financial Activities (incorporating income and expenditure account) for the year ended 31 July 2024

Company Number 04232306

Notes Income From: Donations and legacies 2 (a) Income from trading activities 2 (b) Investment Income 2 (c) Total income Expenditure on: Cost of generating funds Charitable activities 3 (a) Raising funds 3 (b) Donation of Net Assets to RGSG 10 Total expenditure NET MOVEMENT IN FUNDS Fund balances brought forward at 1 August Fund balances carried forward at 31 July	Unrestricted Funds £ 323 3,952 46,985 51,260 323 3,684 183,097 187,104 (135,844) 135,844 0	Restricted Funds £ 320,171 0 0 320,171 366,015 4,831 2,250,116 2,620,962 (2,300,791) 2,300,791 0	2023-2024 2022-2023 Total Total £ £ 320,494 690,593 3,952 4,733 46,985 14,145 371,431 709,471 366,338 345,881 8,515 18,056 2,433,213 0 2,808,066 363,937 (2,436,635) 345,534 2,436,635 2,091,101 0 2,436,635

The Company has no gains or losses that are not shown above.

The accounting policies and notes on pages 15 to 20 form part of these Financial Statements.

Royal Grammar School, Guildford Foundation

Balance Sheet as at 31 July 2024

Company Number 04232306

Notes CURRENT ASSETS Stock 5 (a) RGS Debtor Gift Aid receivable Cash CREDITORS: due within one year 5 (b) TOTAL NET ASSETS 6 Represented by: RESTRICTED FUNDS 6 UNRESTRICTED FUNDS General funds 6 Total funds	31 July 2024 £ 0 0 28,761 0 28,761 (28,761) 0 0 0 0	31 July 2023 £ 19,301 111,000 58,981 2,593,090 2,782,372 (345,737) 2,436,635 2,300,791 135,844 2,436,635

Approved by the Board of The Royal Grammar School, Guildford Foundation and signed on behalf of the Company by

Garth Williams

Henry Pearson Garth Williams Director Director Date: 25/03/25 Date: 25/03/25

The accounting policies and notes on pages 15 to 20 form part of these Financial Statements.

Royal Grammar School, Guildford Foundation

Cash Flow Statement for the year ended 31 July 2024

Company Number 04232306

Notes
£
£
Cashflows from operating activities
Net cash provided by operations
(i)
(2,640,075)
Cash flows from investing activities
Investment income receipts
46,985
46,985
Changes in cash and cash equivalents in
the reporting period
(2,593,090)
Cash and cash equivalents at 1 August
2,593,090
Cash and cash equivalents at 31 July
(ii)
0
2023-2024
(i)
£
Net Movement in funds
(2,436,635)
Decrease in debtors and prepayments
141,220
(Decrease) / Increase in Creditors
(316,976)
Decrease in Stock
19,301
Investment income
(46,985)
(2,640,075)
(ii)
As at
31 July 2024
000s
Net cash balances
0
2023-2024
Analysis of changes in Cash and Cash Equivalents
Analysis of Net Funds
Reconciliation of net income to net Cash
Inflow/(Outflow) from Operating Activities

£
£
365,860
14,145
14,145
380,005
2,213,085
2,593,090
2022-2023
£
345,534
28,072
5,269
1,130
(14,145)
365,860
Cash Flow
As at
31 July 2023
000s
000s
(2,593,090)
2,593,090
2022-2023

The accounting policies and notes on pages 15 to 20 form part of these Financial Statements.

The Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

NOTES TO THE FINANCIAL STATAMENTS

1. Accounting Policies

Basis of accounting

The Financial Statements are prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006, and the 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) – Second Edition, effective 1 January 2019.

The accounts are drawn up on the historical cost accounting basis.

As detailed in the financial review, Royal Grammar School Guildford bears the costs of the Foundation’s fundraising, alumni relations and development work.

On 17 July 2024 the Foundation merged with Royal Grammar School Guildford (‘the School’) and became a department/cost centre of the School with the operations, assets and liabilities transferred to School. The trustees therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than group concern. The trustees have considered the non-applicability of the going concern assumption to the carrying value of the Foundation’s remaining asset and liability, being a gift aid receivable and a corresponding amount due to the School. The trustees consider that the merger did not affect the valuation of the Foundation’s remaining net assets in these financial statements and that therefore no re-valuation is required.

The Foundation is a Public Benefit Entity registered as a charity in England and Wales and a company limited by guarantee. It was incorporated on 11th June 2001 (company number 42323060) and registered as a charity on 3rd January 2002 (charity number 1089955). The Foundation’s registered office is The Royal Grammar School Guildford, High Street, Guildford, Surrey GU1 3BB.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies the directors are required to make judgement, estimates, and assumptions about the carrying value 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 ongoing 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 affected current and future periods.

In the view of the directors no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

Statement of Financial Activities (SOFA)

Until the merger on 17 July 2024 The Foundation had two types of fund:

Restricted – where the purposes for which the funds could be used have been restricted by donors; and
Unrestricted – where the fund was not restricted as to use other than in furthering the objects of the Foundation.

Stock

Stock was valued at the lower of cost and net realisable value until the merger on 17 July 2024.

Income and expenditure

With the exception of voluntary income, income and expenditure were accounted for on an accruals basis. Voluntary incoming resources were accounted for as and when entitlement arose, the amount could be reliably quantified, and the economic benefit to the company was considered probable.

Legacies subject to a life interest by another party were not recognised. Pecuniary legacies were recognised when the legacy was received or where there was sufficient evidence that receipt was probable. Residuary legacies were recognised at the earlier of cash received or notification of an interim distribution or estate accounts having been approved by the executors.

Expenditure

Expenditure was allocated to expense headings either on a direct cost basis or apportioned according to time spent. Expenditure was accrued as soon as a liability was considered probable, discounted to present value for longer term liabilities.

Taxation

As a registered charity the Foundation is generally exempt from Corporation Tax but not from Value Added Tax (VAT). Irrecoverable VAT is included in the cost of those items to which it relates.

Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

2. Income

(a) Donations are received from Friends, other forms of regular donation, one-off gifts and legacies.
(b) Foundation continued to sell merchandise until the merger. The trading turnover relating to those sales, which are included in the income from trading activities, can be found below.

Sales Turnover Cost of Sales Net Turnover	2023-24 £ 3,952 (3,620) 332	2022-23 £ 4,733 (2,342) 2,391

(c) Investment income comprises interest on Gift Aid, bank interest and treasury deposit interest.

3. Charitable activities

(a) Donations received by the Foundation are passed on to the School following reclaim of tax under the Gift Aid scheme.
(b) Costs in support of charitable activities include bank charges and the rental of equipment to allow acceptance of donations by debit and credit card, and totalled £4,896 (2023 - £4,482) in the year.
(c) Until the merger the School made available to the Foundation staff and logistical resources,without charge, in exchange for the Foundation's work programme in support of the School.

4. Governance costs

Insurance premiums, audit fees and other statutory costs were paid for by the School on behalf of the Foundation.

The Directors were not in receipt of any remuneration or expenses during the year.

5. Current assets

(a) Stock consisted of various merchandise unsold which was transferred to the School as part of the merger on 17th July 2024.

(b) Creditors:amounts falling due within one year RGSG creditor	As at 31 July 2024 £ 28,761 28,761	As at 31 July 2023 £ 345,737 345,737

Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

6. Allocation of the Charity net assets

Restricted Funds

Restricted Funds within the Foundation were made up of funds held which have been restricted by the donor. When donations are passed to the school the restrictions remain with them. Restricted funds were mainly made up of the Bursary Fund which receives restricted bursary donations. The Foundation funds were transferred to the School as part of the merger on 17 July 2024.

(a) The net assets at the prior year balance sheet date were held for the various funds as follows :

			Net current		Net current
			Assets/		Assets/
			(Liabilities)		(Liabilities)
			2024		2023
			£		£
	Restricted		0		2,300,791
	Unrestricted - general		0		135,844
	Total Funds		0		2,436,635
(b)	Funds: movements in the year:	Balance at 31 Net Income /	Donations	Grants and	Balance at 31
	Restricted	July 2023 (expense) £ £ 2,300,791 (4,831)	£ 320,171	Allocations £ (2,616,131)	July 2024 £ 0
	Unrestricted - General	135,844 47,253	323	(183,420)	0
		2,436,635 42,422	320,494	(2,799,551)	0
	Comparative Allocation of the	Charity net assets
	Funds: movements in the year:	Balance at 31 Net Income /	Donations	Grants and	Balance at 31
	Restricted	July 2022 (expense) £ £ 1,960,527 (4,448)	£ 690,002	Allocations £ (345,290)	July 2023 £ 2,300,791
	Unrestricted - General	130,574 5,270	591	(591)	135,844
		2,091,101 822	690,593	(345,881)	2,436,635

Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

7. Employee Information

There were no employees of the company during the year.

8. Related party transactions

1509 Group is the sole voting Member of the Foundation, thus making it the Ultimate Parent Undertaking of both the Foundation and the School. Until the merger the School made available to the Foundation staff and logistical resources,without charge, in exchange for the Foundation's work programme in support of the School. At the date of the merger the Foundation owed the school £349,915 (2023: £345,737) and the School owed the Foundation's Enduring Bursary Fund £55,000 (2022: £111,000). At 31 July 2024 the Foundation owed the School £28,761.

1509 Group is the holding company of both Foundation and Royal Grammar School Guildford. Copies of the consolidated accounts for the 1509 Group are available from the registered office at The Royal Grammar School, High Street, Guildford, Surrey GU1 3BB.

In 2023/24, £366,338 (2022/23, £345,881) of donations was passed from Foundation to the School, to be used for the purposes for which the donations were nominated.

In 2023/24, the School made a no charge for financial administration costs (a £9,000 charge was made for 2022/23).

Neither the trustees nor persons connected with them received any remuneration or other benefits from the Foundation or any connected organisations. Travel expenses are only reimbursed exceptionally, and with the prior approval of the Chairman. No expenses were reimbursed during the period.

The Trustees donated £2,000 (excluding Gift Aid) to the Foundation in the year (2022/23 £676).

9. Prior Year Statement of Financial Activities Income and Expenditure Account Income From Donations and legacies Income from trading activities Investment Income Income Expenditure Total expenditure Net Movement in Funds Fund balances brought forward at 1 August 2022 Charitable activities Raising funds Fund balances carried forward at 31 July 2023	Unrestricted Restricted 2022-23 Funds Funds Total £ £ £ 591 690,002 690,593 4,733 0 4,733 14,145 0 14,145 19,469 690,002 709,471 591 345,290 345,881 13,608 4,448 18,056 14,199 349,738 363,937 5,270 340,264 345,534 130,574 1,960,527 2,091,101 135,844 2,300,791 2,436,635

Royal Grammar School, Guildford Foundation

Notes to the Financial Statements

Company Number 04232306

10. Transfer of assets and liabilities to Royal Grammar School, Guildford.

On 17 July 2024 the operations, assets and liabilities of the Foundation were transferred to the School. The following table shows the net assets transferred to the School.

Cash Other net liabilities	£'000 2,695 (262) 2,433