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2021-06-30-accounts

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL REPORT OF THE TRUSTEES FINANaAL STATEMENtS FOR THE YEAR ENDED 30 JUNE 2021 Company Number: 4516482 Reglstered Charlty Number: 1095856 Webslte: www.ruEbysthool.to.uklamold-foundatlon

cO￿rENTs Pages Trustees. members and advisors Trustees, Report and Statement of Trustees, Responsibilities 4-10 Independent Auditorfs Report 11-12 Statement of Financial Activities 13 Balance Sheet 14 Cash Flow Statement 15 Notes to the Financial Statements 16-23

THE ARNOLD FOUNDATION FOR RUGBY 5CHOOI TRUSTEES, MEMBERS AND ADVISORS Trustees Appointed by: Ex Officio. as Chairman of the Governing Body of Rugby School (from 4 July 20201 B J O'Brien LJ Holmes Ex Officio, as Chairman of the Governing B(￿Y of Rugby Sch(￿1 (until 4 July 20201 C Wills (Chairl Ex Officio as Chair of the Arnold Foundation Board (appointed 18 Nov 20201 R C Fletcher Ex Officio, as President of the Rugbeian Society PRAGreen Ex Officio, as Executive Head Master of Rugby School Other Members of the Foundatlon Board Dr C H Barnes D Batstone C T Lindsay M D L Ponsonby M Turner Governing Body of Rugby School Governing Body of Rugby School Governing Body of Rugby School Governing Body of Rugby School Governing Body of Rugby School Company Secretary P A Nicholls Dlrertor of Development KA Wilson Advisors: Investment Managers Qvilter Cheviot Investment Management Ltd, London Bankers Natwest Bank, Rugby Soliritors Veale Wasbrough Wizard, Bristol Audltor Crowe U.K. LLP, Cheftenham Re8lstered and Prfncipal Office The Bursary, 10, Little Church Street, Rugby, Warwick5hire, CV213AW Company Number Charity Number Webslte 4516482 1095856 V4tyrn.rugbyschool.co.uk/arnold-foundation

THE ARNOLD FOUNOATION FOR ftl￿BY SCHO( Report of the Trustees for the year ended 30 June 2021 The Tmstees of the Arnold Foundation for Rugby School (the 'Foundat+on'l present their annual report and the audited financial statements for the year ended 30 June 2021. The information with respect to Trustees, officers and advisors. as shown on page 3, forms part of the Annual Report and is current at the date of this report. The financial statements comply with the charivs trust deed, with current statutory requirements. applicable Accounting Standards in the United Kingdom, and the Charities Statement of Recommended Practice {the Charities SORP IFRS 10211. Objectlves and Actlvltles Choritoble Objertives The principal aim of the Foundation is to raise funds for Ru8by Sthool: to provide more bursary awards for boarding places, subject to parental means testin& thereby widening access to the School. so that more talented student5 may benefit from an education at Rugby School. irrespective of their families, ability to pay the fees: and to improve the infrastructure of the School. The Trustees principal objective for the year 15 to continue to prioritlse recruiting the right candidates and en8a8ing the next generation of advocates and donors. In addition. the Trustees had set the followin8 objectives for 2020121: Use the 18th birthday celebrations for the Arnold Foundation to recruit new donors and celebrate the commitment of generous involvement since 2003; Develop income targets and strategies to secure a further £25 million and fundlng for 40 Arnold Foundation students each year by 2030 at Rugby School and Bitton Gran8e; Build the endowment for the lon8 tern) through a commitment to the campaign for e8acies. Public Benefit Objectives In setting the Foundation's objectives the Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefft 8uidance on advancing education. Strategie5for ochieving the Objectives The Trustees, strategy for achieving these objectives is to increase awareness of the Amold Foundation for Rugby School. particularly to Rugbeians. and to encourage donations so as to create funds which may be used to provide the finances to support both current and future students through Rugby School.

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Report of the Trustees for the year ended 30 June 2021 Icontinued) Stoff and Supporter5 The Trustees greatly appreciate the important and valuable support and hard work given by the entire School staff but above all the Trustees are deeply 8rateful to Rugbeians, parents and many other friends of the School whose generosity has enabled the Trustees to achieve their objectives in the current year. Fundraising Members of Rugby School's Development Office organise fundraising artivities and events and co-ordinate philanthropic support and involvement both for the Arnold Foundation and Rugby School. Neither Rugby School nor the Arnold Foundation use fundraisin8 consultants or involve commercial participators. Rugby School and the Arnold Foundation are members of the Fundraising Regulator and are committed to the Code of Fundraising Practice for fundraising and the marketing of both charities. All direct fundraising marketing is undertaken by the Development Office to ensure that it is not unreasonably intrusive or persistent. All promotional material contains clear instructions on how an individual can change their preferences for communication or be removed from mailing lists. There have been no complaints about fundraising activities during the year. Review of Achlevements and Performance There were 27 Arnold Foundation students in the School throughout the year 2020121 12019120: 28}. Financial fee support for all 27 of these students was provided from funds raised by the Foundation. In September 2021 the number of Arnold Foundation students in the school was 28, with students having fees funded by the Foundation. As of September 2021, a total of 156 students and fornier students are benefitting or have benefitted from support provided by the Foundation since 2004. The Arnold Foundation Board is focussed on building a strong programme of funded bursaries at Rugby School and Bilton Grange. Duetothe on80ingCovid-19 pandemic. fund raising and friend raisin8eventswere postponed with activlties moving online, such as: a virtual online celebration to mark the 18th birthday of the Arnold Foundation includlng a broadcast Thanksgiving service from the Rugby School Chapel and the production of a new film; the annual appeal for parents of leavers to leave their deposits with the Arnold Foundation for Rugby School: the annual Amold Foundation Reviewwa5 circulated tothe whole community marking 18 years and outlining plans for the future;

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Report of the Trustees for the year ended 30 June 2021 fcontinued) successful Wine Auction held on line and in collaboration with Sothebvs the continued development of the 'lf you will. they can. legacy programme with more future legators joining the Charles Shorto Legacy Society," Delivered a successful telethon resulting in funds raised and the recruitment of many new regular donors; supporting the American Friends of Ru8by School including the dissolution of their 501 c 3 and a new campaign for fundraising from Rugbelans in the USA- and furtherdeveloped theonlinecommunity for Ru8beiansthrough Rugbeians Connect which is offered through the GTaduway programme. Whilst the lockdown and subsequent restrictions have curtailed the opportunities for Rugbeians to meet in person. regular news bulletins from the Executive Head Master to donors, and social media platfonns including Rugbeians Connect. Facebook, Twitter and Linkedln have continued to be utilised to communicate with the wider Rugbeian Community. Generous donations and gifts have continued even through this difficult period. Plans for Future Perlods The Trustees. principal objective for the coming year is to continue to prioritise recruiting the right candidates and engagin8 the next generation of advocates and donors. In addition, the Trustees have set the following objectives for the coming year: Build on the momentum of the 18 birthday celebrations; Launch the Earle Fund for boarding bursaries at Bilton Grange; Launch the Parent Amba55ador initiative to promote greater engagement among parents and support for our fundraising initiatives: Further develop and implement strategies to secure funding for 40 Arnold Foundation students each year. Refresh the donor base and engage new major donors: Organise and deliver a successful Givin8 Day to engage new donors and promote the Arnold Foundation across Rugby School and Bilton Grange- Reintroduce a comprehensive programme of engagement for Rugbeians. Biltonians, parents and Arnold Foundation Ambassadors with events and activities in Rugby, London and elsewhere; and Build the endowment forthe longtern) through our continued commitment to an ongoing campaign for legacies. Flnandal Review The Statement of Financial Activities for the year is set out on page 13 of the financial statements. Donations and gifts continue to be the Foundation's main source of income with a total of £509,30112019-20: £2,798.966) received durin8 the year. Investment income of £210,922 {2019-20- £215.339), legacies of £153,615 (2019-20: £73.0571 and a gift in kind of £372,606 1201￿20.. £302,341), brought the total incoming resources to £1,246.434 {201￿20. £3,389,703).

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Report of the Trustees for the year ended 30 June 2021 (continuedj The Trustees, the Development Board and the Governin8 Body of Rugby school wish to record their thanks to all of the donors who have contributed to the Foundation. During the year £1.017,689 was used to provide financial assistance for school fees and necessary extras including unrform, laptop, books and trips for Arnold Foundation students at Rugby School. Fundraising Costs The Trustees and the Governing Body of Rugby School have jointly agreed that all fundraising costs for 2020121 shall be bome by the khool. In order that both the benefits and the costs of fundraising rnay be transparent, such costs are, for the time bein& charged to the Foundation but then covered by a 8ift in kind transfer from Rugby School. as 5howTr on the Statement of Financial Activities. This generated net income for the year, before the revaluation of investments, of -£199,833 {2020: net expenditure of £1.973,357). Following the revaluation of investments at the year- end the Foundation has total funds of £18.9 million. The underlying assets and liabilities are set out in the Balance Sheet on page 14 and further analysed in the notes accompanyingthe financial statements. Reserves Pollcy The Foundation aims to achieve sufficient restricted and endowed fund investments to generate sufficient investment income to support 40 Arnold Foundation students in Rugby School on a continuing annual basis. Whilst these funds are being established, the policy is to hold sufficlent restricted and unrestricted funds to be able to provide two years of financial assistance for both the current Arnold Foundation students and those to be recruited within the next year. Investment Poll¢y. Objectlves and Performance It is the policy of the Trustees that any shares or other securities that are gifted to the Foundation be realised for cash as soon as possible. The proceeds, together with all cash donations to the Foundation, are placed with the Investment Manager for deposit. The investment performance is monitored regularly against objectives set by the School's Investment Committee. In the year ended 30 June 2021 the performance matched the benchmark. The Trustees anticipate that funds required by the Foundation to be expended within the short term (e.g. on bursary awards for students at Ru8by School), should be placed on bank deposit.

THE ARNOLD FOUNDATION FOR RUGBY 5CHOOi Report of the Trustees for the year ended 30 June 2021 Icontinuedj Structure. Governance and Management The Arnold Foundation for Rugby School (the "Foundation-l is a company limited bv guarantee and does not have a share capital. The sole member of the company is Rugby School, registered charity number 528752. The Govemin8 Body of Rugby School, a statutory corporation created under the Public Schools Act 1868 and the Rugby School Act 1922, is the trustee of Ru8by School. The Foundation is also registered with the Charity Commission under charity number 1095856. The Trustees are appointed to have the general control and management of the company and are its Companies Acts directors. The ex-officio Trustees are the Chairman of the Governing Body of Ru8by School. the Executive Head Master of Rugby School, the President of the Rugbeian Society, all for the time being and by virtue of their respective offices. Ms Claire Wllls was also appointed to be a Trustee and to the role of Chair of the company. Further Trustees may be elerted by the member from time to time. Trustees are selected for their skills and experience across an appropriate spectrum. Before taking up appointment. new Trustees visit the school for the purpose of induction. receive key information relating to the charity and si8n an appointment letter. All Trustees are encouraged to attend the termly Trustees. meetin85 which incorporate trustee-tralning issues. The Goveming Body of Ru8by School has also appointed a committee called the Arnold Foundation Board which includes all of the Trustees. Whilethe Board has no statutory powers or responsibilities. its purpose is to advise and support the Trustees and the Governing Body of Rugby School in raising funds for the School and the Foundation. Key Manogement Personnel The Foundation delegates the daily management to the Executive Head Master of Rugby School. The Executive Head Master is aided by other Key Management Personnel of the School comprising the Chief Operatin8 Officer and the Director of Development. The Foundation's Key Management Personnel do not receive any remuneration from the Foundation. Remuneration of the School's Key Management Personnel is set by the School's Nomination Committee with the policy objective of providing appropriate incentives to encourage performance and of rewardin8 fairly any individual contribution to the School's success.

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Report of the Trustees for the year ended 30 June 2021 (¢ontinuedJ Prlndpal Risks and Uncertaintles The Arnold Foundation Board undertakes an annual review of the major risks of the Foundation and the system for their mitigation. The Board consider that the main risk is the inability to raise sufficient funds to support future Arnold Foundation students through their education at Rugby School, however effective financial forecasts and realistic plannlng ensures that student recruitment does not exceed the planned expenditure. In addition. the Governing Body of Ru8by School conducts annually a fevlew of risk assessments undertaken by the School's Management Team to identify the major risks to which the School and its associated companies are exposed, and the system for their mitigation. In the opinion of the Governing Body, the School and its associated companies have established resources and review systems, which. under normal conditions, should allow those risks to be mitigated to an acceptable level in its day-to-day operations. Statement of Trustee￿ responsibilities The Trustees (who are also direttors of The Amold Foundation for Rugby School for the purposes of company law) are responsible for preparingthe Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice {United Kingdom Accountin8 Standards). Company law requlres the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP: make judgments and estimates that are reasonable and prudent: state whether applicable UK accounting standards have been followed. subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Twstees are responsible for keeping adequate accounting records that are suffitient to show and explain the charitable compan(s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensurethat the financial Statements comply with the Companies Act 2006 and the provisions of the charit¢s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE ARNOU) FOUNDATIOII FOR RUGBY SCHOOL Report of the Trustees for the year ended 30 June 20211¢ontinued) The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitvs website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Dlsclosure of Inforniation to the audftors The Trustees confim) that at the time when this report was approved. the following applies: so far as each Trustee is aware, there is no relevant audit information (that is, information needed by the CoMpan￿S auditors in connection with preparin8 their report} of which the companvs auditors are unaware; and the Trustees have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit inforniation and to establish that the companws auditors are aware of the information. Crowe U.K LLP has indicated it5 willingness to be reappointed as Statutory auditors. This report has been prepared taklng advantage of the exemptions available to small companies under the Companies Act 21kn. Approved by the Trustees at their meeting on 2 March 2022 and signed by order of the Trustees: Claire Wills Chair of the Arnold Foundation for Rugby School io

THE ARNOLD FOUNDATh?M FOR RUGBY SCHOOL Independent Audltorfs Report to the Trustees of The Arnold Foundatlon for Rugby School Opinlon We have audlted the financial statements of TheArr￿ld Foundation for Rugby Sd￿1 fortheyear ended 30June 2021 which comprise Statement of Financial Actlvities. the Balan￿ sheet. the Cash Flow Statement and notes to the finanaal statements, including a summary of significant ac£ounting poli¢ies. The financial reporting framewoTk that has been applied in their preparation is applicab￿ law and Unitetl Klngdom Accounting Standards, including Financial Reporting Standard 102The Financial Reportin8Standard opplicable in the UK and Republlc of Ireland Iunited Kingdom Generalty Accepted Accounilng Practice). In our opinion the finin¢ial statements: 8lve a true and fair wew of the state of the tharitable compan￿5 affairs as at 30 June 2021 and of its incomlng resour￿ and application of resources, including its income and eyndttLbre for the year then ended: have been properly preparÈd in accordance Y￿th United Kingdom Generally Accepted A¢¢ounting Practice. and have been prepared in aCcOrdar￿ wfith the requirements of the Charlties Act 2011. Ba515 for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and appli¢ab law. Our responsibilities under those standard5 are further de%ribed in the Auditorfs responsibllities for the audit of the finanaal slatements section of our report. We are independent of the charitable company in accordance wlth the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Stsndard. and we have fulfilled our other ethical responsibilTties in accordance with these ￿UIreMents. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our op1n1c￿. CondU￿On$ rdatlngto goiTha concorn We have nothin8 to report in respert of the following matters in relatlon to whith the ISAS (UK} requlre us to report to you where: the Trustee5' use of the going ¢oncem basis of accounting in the preparation of the finarKial Statements is not appropriate,. or the Trusiees have not dlsclosed in the financial statements any identified material uncertaintie5 that may cast significant doubt about the charitable compan￿5 ability to continue to adopt the 80ing concern basis of accounting for a period of at least twelve months from the date when the financial siatements are authorlsed for issue. Other Inforn)atlon The Trustees are responsible for the other information. The other informatKyn comprises the nformati Included in the annual report. otherthan the finanu31 statements and our auditor's report thereon. Our opinion on the finan¢lal statements does not cover the other inforMat￿n and, except to the extent otherwise expllcitly stated in our report, we do noi express any fomi of assurarI￿ condusion thereon. In connection with our audit ofthe financial ststements. our reS￿nSibl11ty Is to read the other information and, in dolng 50, considef whether the other information is materially inconsistent with the finandal statements or our knowledgeobtained in theaudit orotherwise appears to bematerially mi5Stated. If we identifysuch material Inconsisten¢ies 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 informatlon. If. based on the work we have perfomied, we conclude that there is a material misststement of thts other informatlon, we are required to report that fact. We have nothlng to report in this regard. li

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL

Independent Auditor's Report to the Trustees of The Arnold Foundation for Rugby School

continued .....

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees' responsibilities statement set out on page 9, 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

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Guy Biggin Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor, Cheltenham

Date: 25 March 2022

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

12

THE ARNOLD FOUNDATION FOR RLIGBY SCHOOL Statement of Financial Activlties for the year ended 30 June 2021 (including the Income & Expenditure Account) for the Arnold Foundation Funds Y•arZ021 Funds Funds Fund5 Year 2020 INCOMEANO ENDOWMErirs Ihtomefrom GenerJted Furd$ Donatiwsand8fft5 19,6 33.755 455 509JOi 4.446 27.825 1764725 2,798. Le8￿leS 153.61$ 73P57 73.f67 GMt in 371f 1341 210.922 210J22 215,339 215.339 Totsl Ih¢rJmo 192.29) 187.370 666.784 1216J14 X6.78Y t￿.882 2.982,064 3,389,703 EXPENoifuRE Costs •lRa151 Fund-ralsln8COStsf•i donation5 and leBaties 71,E￿I 155.9811 23411 146.W) 1349.2211 Cogts of Ra151 Funds I37?.f￿ 155.9811 58 I>￿341) I46.￿) 1349.2211 ¢h¥ltsbl¢acd¥ides Bursar￿$ 11017.6891 14017ml IL067.1551 IL067,1551 Total ExpErnlfftwe 137Lf4)61 I￿73.670) IIJ46J74 13023411 IL114.0351 IL1116,3761 Net lewpendlbmll kn¢ome 19.684 187370 14CQ8861 4.416 ICQAB2 L868.029 1.9n.357 Net83kn5on in¥estm•)is 2.195.939 1SSl¥a 3.744242 497.810 250.327 748.137 IIEf MOVEMENT114 FiIND5 19.604 13833(8 L145.417 3yVIO 5x692 li￿￿56 Z,72L494 Re¢On￿l￿on￿l Futhd& Balance brO￿knE forn4id at ljuly 20119 155350 I￿108 4.171429 12,637.887 FVNDeALANC(S cARft￿D FC*WARD A7 30JIJNE 2V20 159.M 8.￿)4,￿ &2Y.785 15359381 io Thè notes on pa8e5 16to 23forni part of these fimnctsl statements. 13

ThE ARNOLD FOUNDATION FOR RUGBY SCHO(X Balance Sheet as at 30 June 2021 2021 2020 Notes Investments 19A91.231 15,795,961 cul￿nt assets Debtors 27380 21,963 Cash at bank and In hand 13.97S 2.142 41A55 24,105 CredStots: amounts due TAlthln one yeav NET CURRENT ASSETS 1624.795) {$83WOI 1460,6851 1436,5801 TOTAL ASSETS io I8.￿.791 15,359,381 Capltsl and reser¥es: Endovmient funds li 11.288,109 8.904,801 Restri￿ed funds 12 7A40202 6,294,784 Unrestricted funds 13 179,480 159,796 TOTAI IUNDS 18,907.791 15,359,381 The finandal Statements have been prepared in accordano with the provislons applicable to companies subject to the small companies. regime. The finKial State￿nts on pa8es 13 to 23 were aFvtyed ty the T behalf by: ee5 on 2 March 2022 and are signed on their ?¢ C w￿15 Chair tor The Arnold Foundion for Ruthsolcd Registered company number: 4516482 The note5 on pages 16 to 23 fonn part of these finanrial statements. 14

THE ARNOLD FOUNDAnoN FOR RUGBY SCHOOL CASH FLOW sfATEMENT FOR THE YEAR ENDED 30 JUNE 2011 2021 2020 Retonclliatlon of net Incometo net cash Ilow from operdtinÉ actfvities: Net Income for the reportlng period las per the Statement of Financial A¢iiwtiesl Elimination of non-operatin8 cash flows-. -Investment income and bank interest recelvable -Endowment donations Ilncreasel/Decrease in debtOfS Increaselloecreasel in ueditors 1199*321 1,973,357 (2JO,9221 (187,370) 1SA17) 164,109 1215,3391 I1￿.882) 16.749 217.471 Net Cash provided byoperatk¥a¢tMtles 1439.432 1.891.356 Cash flows from In1K￿lft£ artlvltl Purchase of investments Sale of investments Investment Income and bank interest re￿vable 16A39,047} 6A92,020 210.922 14,597,405) 2.384,392 215,339 Net ¢ath used ID Investlry actlvlties 263A95 11,997,674) Cash flows from flnanclng acthltles: New endowments 187370 IIXl,882 Net Qsh provlded by finandng actl¥ltles 187.370 l(X),882 Chan¥e In cash and ¢ash equivalents In the reportkng perknl I1￿3 15.436} Cash and cash equivaknits atthe beonnlng of the reportl perlod 2,142 7.578 Cash and ¢ash equivalents at the end ofthe rwtlng perknd 13.975 2.142 Anafy515 of cash and equlvalentk" Cash at bank 13,975 2.142 15

THE ARNOLD FOUNDATh)N FOR RUGBY SCHOOL Notes to the Financial Statements for the year ended 30 June 2021 l. Prln¢ipal Accountlng Polldes Legal Status The Foundation is a Public Benefit Entity registered as a company limited by guarantee (company number 4516482} and also as a charrty in England and Wales (charity number 1095856), operating from premises at Rugby School, Rugby, Warwickshlre. Basis of Accounting The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom and the Charities Statement of Recommended Practice (the Charities SORP IFRS 102)), the Charities Act 2011 and the Companies Act 2006. Having reviewed the fundin8 facilities available to the Foundation together wtth future projected cash-flows. the Trustees have a reasonable expectation that the charitable company has adequate resources to continue its activities for the foreseeable future. The company participates in a cash pooling facility in order to maximi5e the assets of the group. Accordingly, the Foundation will continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trusteeg Responsibilities on page 9. The financial statements are prepared on a going concem basis in accordance with the historical cost accounting basis except that investments held as fixed assets are carried at market value at the balance sheet date. The functional currency of the Foundation is considered to be the Brrtish Pound. Donatlons. le8acies and glfts In kind Donations are credited to revenue when receivable. Legacies are recognlsed as receivable once probate has been 8ranted and notification has been received if sufficient information regarding the value is provided. Entitlement to legacies may be included in the year of notification subject to the funds being received during that financial year or within 2 months after the year-end. It Is the policy of the Trustees that any shares or other securities. that are donated, be converted to cash as soon as possible. Gifts in kind are valued at a reasonable estimate of their value to the charity. No amounts are included in the financial statements for Services donated by volunteers. Expendlture All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Any irrecoverable VAT is charged to the Statement of Financial Activities (SOFA). support cost5 Support costs include expenses which enable charitable activities and fund generating to be undertaken. These costs include management and administration and are allocated on a basis consistent with the use of the resource. 16

THE ARNOLD FOUNDATIOII FOR RUGBY SCIIOOi Notes to the Financial Statements for the year ended 30 June 20211continued) Governance costs Governance costs relate to the Beneral running of the charity. These costs include audit, legal advice for the Trustees and costs associated with meeting the constitutional and Statutory requirements such as the cost of Committee meetings. the preparation of statutory financial statements and satisfying public accountability. These costs are borne by the School. Forelgn Currency Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange rulin8 at the balance sheet date. All differences are taken to the Statement of Financial Activities. Recognition of Ilabllitles Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. Taxation As a re8iStered charity, the Arnold Foundation for Rugby School is entitled to certain tax exemptlons on income and surpluses carried out in furtherance of the charit¢s primary objectives. Fund Accounting Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised for particular purposes. Endowed funds are funds for which the capital must be retained in accordance with specific restrittions imposed by donors. Income will accrue to the appropriate restricted fund. Endowed funds may be further classified as: permanent endowment funds arise where a donor intends the gift to be retained in perpetuity: or expendable endowment funds are accounted for similarly, except that the capital may be converted into income for spending at the discretion of the Trustees or in circumstances stipulated by the donor. Investment income and gains are allocated to the appropriate fund. 17

ThE ARNOID FOUNDATION FOR RUG8Y SCHOOL Notes to the Flnancial Statements for the year ended 30 June 2021 {¢ontinuedJ Investments and Investrnent Income Investments are included at closing mid-market value at the balance sheet date. Any realised and unrealised gains and losses on revaluation or disposals are reported in the Statement of Financial Activities. Income from investments is induded, togetherwith the related tax credit, in the period in whlch it is received. Finandal instruments The chartty only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instnjments are initially recognised at transaction value and Subsequently measured at their Settlement value, with the exception of investments which are held at fair value. Key Judgements and Assumptl¢)ns Estimates. judgements and assumptions are made based on a combination of past experience, professional expert advice and other reasonable factors relevant to the circumstances. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year. 2. Investment Income 2021 2020 Income oft UK quoted investments Interest receivable 210,922 214,777 562 215,339 210.922 3. Fundralsing costs for donatlons and legades Unrestricted Restricted funds funds 2021 2020 Staff costs Marketing and publicity Office costs Legal and professional Investment management 203.196 83.993 47,754 37.663 55.981 428.587 203.196 165 89.786 79.459 55.981 428,587 240,760 16,394 41,117 4.070 46,880 349.221

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Notes to the Financial Statements for the year ended 30 June 2021 Icontinuedl 4. Analysls of totsl expendlture Staff costs Other Costs 2021 2020 Costs of Generating Funds Fund-raising costs Total 203.196 203,196 225,391 225,391 428.587 428.587 349,221 349.221 Charltsble Actlvitles Bursaries 1,017.690 1,017,690 1.017.690 1.017.690 1,067,155 1,067,155 Total Audit fees are met by the Governing Body of Rugby School. 5. Contrlbutlon from Rugby School The Trustees and the Governing Body of Rugby School have jointly agreed that for the current period all the costs of generatin8 funds shall be bome by the School but in order that both the benefits and the costs of fundraising may be transparent. such costs are. for the time bein& charged to the Foundation but then covered by a funds transfer from Rugby School. 6. Employee. Trustee and Key Management Personnel InfOrn￿tIOn The average monthly number of people. including Trustees, working for the Foundation was 312020: 41. No Trustees, Key Management Personnel or employees received any remuneration Dr reimbursement of expenses from the Foundation during the period {2020: none). 7. Investments Total Balance at l July 2020 Additions Disp05als lat net proceeds) Revaluation Bains Balance at 30June 2021 15.795.961 6.439,165 (6,492.0201 3,748,125 19,491,231 Represented by: Investments listed on the UK Stock Exchange Cash deposits 19.135,168 356,063 19,491.231 Historic cost 13,805.3(KJ 19

ThE ARNOLD FoiniDATION FOR RUGBY SCTrK)OL Notes to the Flnancial Statements for the year ended 30 June 2021 (continued) Debtors 2021 2020 Tax recoverable Other debtors 7,991 19.389 27,380 7,157 14,806 21.963 9. Credltors 2021 2020 Other accruals Due to the Governing Body of Rugby School 14.1 610.795 624.795 ii,c 449.685 460,685 10. Analysis of Net Asset5 The net assets are held for the various funds as follow5: loa. Current year anatysls of net assets between funds: Endowed Funds Restricted Funds Unrestricted Funds 2021 Total Funds Investments 11.871.548 7.440202 179.480 19.491,229 Net Current A$5ets (583.4381 1583.4381 Total Net Assets 11288.110 7.440,202 179A80 18,907.791 lob. Prlor year anatysls of net assets between funds: Endowed Funds Restricted Funds Unrestricted Funds 2020Total Funds Investments 8.904.801 6,294.784 596,376 15,795.961 Net Current Assets {436,5801 {436,580} Total Net Assets 8.904￿1 6,294.784 159,796 15,359,381 20

THE ARNOLD FOUNDATION FOR RUGBY SCHOIX Notes to the Financial Statements for the year ended 30 June 20211continuedJ 11. Endowed Funds Ila. Current year movement In endowed funds: Balance at Incoming l July 2020 Funds Amounts Investment Balance at 30 Expended Net Gains June 2021 Arnold Fouftdat￿n- permanent endowment Arnold Foundation award5-expendable endowment 50 8.904.751 187,370 2.195,938 11.288.059 ,904,801 187.370 2.195.938 11,288,109 Ilb. Prlor year movement In endowed funds: Balance at Incoming l Juby 2019 Funds Amounts Investment Expended Net Gains Balance at 30 June 2020 Arnold Foundation - permanent endowment Amold Foundation awards-expendable endowment 50 8,306.058 l(XJ.882 497.811 8.904,751 8306,108 1(KI.882 497,811 Arnold Foundation Permanent Endowment Under the terms of the companvs Memorandum of Association, the original endowment of £SQ is permanent and may not be expended. Amold Foundation Awards The expendable capital funds provide future income for the financing of bursary awards to Rugby School. The income from the fund is utilised for this purpose {see restricted funds). 21

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL Notes to the Financial Statements for the year ended 30 June 2021 icontinued) IZ. Restrlcted Funds 12a. Current year movement in restrlcted funds= Balano at Incoming l Juty 2020 funds Amounts Investment expended Net Gains Balance at 30 June 2021 Arnold Foundation awards Performing Arts Total 6,292.884 666.784 (1.073.670) 1,552.304 7,438,302 1,9C 6,294.784 1,900 7042,202 666.784 11,073.6701 1.552.304 12b. Prlor year movement in restricted funds: Balance at Incoming l July 2019 funds Amounts Investment Balance at 30 expended Net Gains June 2020 Arnold Foundation awards Performing Arts Totsl 4.174.529 2.982.064 11,114.0351 250,326 6.292.884 4,176.429 2,982.064 11.114,035) 250.326 6.294,784 Arnold Foundation awards The fund's principal aim is to raise monies for the financin8 of bursary awards to Rugby School, widening access to Rugby School, so that more talented people may benefit from an education at Rugby. irrespective of their parents, ability to pay the fees. Funds have also been donated to the Arnold Foundation for Rugby School to improve the School's facilities. 13. Unrestricted Funds 13a. Current year movement In unre5trirted funds: Balance at Incoming l Jufy 2020 Funds Amounts Investment Balance at expended Net Gain 30 June 2021 Unrestricted funds 159.796 392.290 1372,606) 179.480 13b. Prlor year movefflent In unrestrfrted funds: Balance at IncominB l July 2019 Funds Amounts Investment Balance at 30 expended Net Gain June 2020 Unrestricted funds 155.350 306.787 1302.341} 159,796 22

THE ARN(XD FOUNDATION FOR RUGBY SCHCKIi Notes to the Financial Statements for the year ended 30 June 2021 fcontinuedl 14. Financlal Instruments 2021 2020 Financial Assets measured at fair value through profrt or loss {0119,491.231 15,795,961 Financial Assets measured at amortised cost Ibj 33.364 16.946 Financial Liabilities measured at amortised cost (cl 1,481.833 460,685 (oj Includes investment ossets fb) Includes cosh, trt7de debtors ondotherdebtors Ic? Includes trode ond othercreditors IS. Related Party Transactions There are no other related party transactions. 16. Ult5mate Controlling Party The ultimate controllin8 party is the Goveming Body of Rugby School. a charity registered in the England & Wales (registered number 528752). A copy of the consolidated accounts may be obtained from Rugby School clo The Bursary, 10. Little ChL•rch Street, Rugby, CV213AW. 23