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: 

- the information given in the financial statements is inconsistent in any material respect with the Trustees' report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; 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 regime and take advantage of the small companies exemption in preparing the directors report and from the requirement to prepare a strategic report. 

## **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 fin*Kial 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 Found*ion 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