| | 

| 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

REPORT OF THE TRUSTEES 

& 

## FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 30 JUNE 2025 

## Company Number: 04516482 

## Registered Charity Number: 1095856 

Website: https://rugbeiancommunity.com/pages/the-arnold-foundation 

## CONTENTS 

||Pages|
|---|---|
|Trustees, members and advisors|3|
|Trustees’ Report and Statement of Trustees’ Responsibilities|4-10|
|Independent Auditor’s Report|11-13|
|Statement of Financial Activities|14|
|Balance Sheet|Le|
|Cash Flow Statement|16|
|NotestotheFinancialStatements|17-24|



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THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## TRUSTEES, MEMBERS AND ADVISORS 

## Trustees 

## Ex Officio Appointments: 

## N Bacon 

H Strain (Co-Chair) (appointed 20 Nov 2024) T Strain (Co-Chair) (appointed 20 Nov 2024) D Ejim-McCubbin (appointed 20 Nov 2024) A Habib (resigned 20 November 2024) J Maddocks (appointed 20 November 2024) G Parker-Jones 

As Chairman of the RS Governing Body . . As= Co-ChGo-GHaIls Gl f ieRS FundPundaising C“onmmituset By RS Governing Body As President of Rugbeian Society As President of Rugbeian Society As Head Master of Rugby School 

## Members of the Rugby School Fundraising Committee from October 2024 

H Strain (Co-Chair) T Strain (Co-Chair) N Bacon D Ejim-McCubbin . A Habib (to 20 Nov 2024) G Jones C Lam J Maddocks (from 20 Nov 2024) D McNeill G Parker-Jones 

## Company Secretary 

Company Secretary P A Nicholls (resigned 31 August 2024) D J White (appointed 20 November 2024) Director of Development L Fairbanks (until 18 July 2025) Director of Alumni & Development T Day (1 September 2025) 

## Advisors: 

## Investment Managers 

Bankers 

Solicitors 

## Auditors 

Registered and Principal Office 

Quilter Cheviot Investment Management Partners Capital WCM Natwest Bank, Rugby Veale Wasbrough Vizard, Bristol Crowe U.K. LLP, Cheltenham The Bursary, 10, Little Church Street, Rugby, Warwickshire, CV21 3AW 

Company Number 

04516482 

Charity Number 

1095856 

} 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Report of the Trustees for the year ended 30 June 2025 

The Trustees of the Arnold Foundation for Rugby School (the ‘Foundation’ or the ‘Arnold Foundation’) present their annual report and the audited financial statements for the year ended 30 June 2025. 

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 charity's trust deed, with current statutory requirements, applicable Accounting Standards in the United Kingdom, and the Charities Statement of Recommended Practice (the Charities SORP (FRS 102)). 

## Objectives and Activities 

The principal aim of the Foundation is to raise funds for Rugby School: 

- e to fund bursary programmes for boarding places, thereby widening access to the School, so that more talented students may benefit from an education at Rugby School, irrespective of their families’ ability to pay the fees; and 

- e to improve the infrastructure of the School. 

The Trustees’ principal objective for the year is to prioritise recruiting the right candidates and engaging the next generation of advocates and donors. 

The Trustees had set the following objectives for 2024/25: 

- e Support progress towards income targets and strategies to secure funding for 40 Arnold Foundation students each year across Rugby School and Bilton Grange; 

- e Secure a new group of advocates and donors to re-ignite fundraising for the Arnold Foundation. 

## 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 benefit guidance on advancing education. Strategies for achieving the Objectives The Trustees’ strategy for achieving these objectives is to increase awareness of the Arnold Foundation for Rugby School, particularly to Rugbeians and Biltonians, and to encourage donations to create funds which may be used to provide the finances to support bursary programmes for boarding places at Rugby School and Bilton Grange. 

4 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

Report of the Trustees for the year ended 30 June 2025 (continued) 

Staff and Supporters 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 grateful to Rugbeians, Biltonians, 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 activities 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 fundraising 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 Achievements and Performance 

There were 27 Arnold Foundation and 4 Earle Fund students in the two schools throughout the year 2024/25 (2023/24: 28 & 3). Financial fee support for the Boarding Bursary Programmes was provided from funds raised by the Foundation which were donated to Rugby School by way of a grant. 

In September 2025 the number of students on the Arnold Foundation or Earle Fund Programmes in the schools stood at 27 at Rugby School and 3 at Bilton Grange. 

As of September 2025, a total of 193 students and former students are benefitting or have benefitted from support provided by the Foundation since its foundation in 2004. 

The Arnold Foundation is focussed on building a strong programme of support for funded bursaries at Rugby School and Bilton Grange. Laura Fairbanks resigned as Director of Development on 18 July 2025, Tim Day has been appointed from 1 September 2025 as Director of Development and Alumni, and Natalie Pretsell was appointed as Deputy Director of Development and Alumni, together running the fundraising activities on behalf of the Arnold Foundation and encouraging the raising of new supporters. Fundraising activities across 2024/25 included: 

| | | | | | | | | | | | | | | 

- e Acontinuation of a legacy fundraising programme was promoted during the year. e A virtual fundraising event for our supporters in the USA during the Thanksgiving celebrations. 

} 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Report of the Trustees for the year ended 30 June 2025 (continued) 

- e The annual appeal for parents of leavers to leave their deposits with the Arnold Foundation for Rugby School and for Bilton Grange leavers focussing on the Earle Fund. 

- e The annual mailing (physical and digital) of the Arnold Foundation Review to over 14,000 supporters. 

- e There were also various fund raising events with society members, ranging from tea events early in the School year to the annual ‘Boomer’ lunch which took place in June 2025, led by the Head Master. 

- e In July 2025, a telethon was run by Rugby School and Bilton Grange to raise funds for the Charity. 

## Plans for the Future 

The School remains responsible for recruiting the right students as Arnold Foundationers. The School also is responsible for engaging the next generation of advocates and donors. The Arnold Foundation grants donations to the School in order to assist with the provision of Arnold Foundation and Earle Fund awards. 

In addition, the Trustees have set the following objectives for the coming year: 

- e Re-ignite how advocates are used to support the fundraising objectives of the Foundation. Further develop and implement major gift strategies to secure funding for 40 students each year. Organise and deliver the engagement of new donors and promote the Foundation across Rugby School and Bilton Grange. 

- e Maximise the opportunity of the growing Rugby School Group by raising support for the Foundation’s work from the new Rugby Schools in Thailand, Japan and Nigeria, seeking to secure further donors from across the world. 

- e Continue to promote the ‘If you can, they will’ legacy campaign. 

## Financial Review 

The Statement of Financial Activities for the year is set out on page 14 of the financial statements. 

Donations and gifts continue to be the Foundation’s main source of income with a total of £864,812 (2023-24: £836,783) received during the year, including legacies. Investment income of £226,373 (2023-24: £229,817) was also received. Legacies of £404,330 (2023-24: £nil) were included in the donations figure. In addition a gift in kind donation of £476,029 (2023-24: £441,000), brought the total income to £1,567,214 (2023-24: £1,507,600). 

The Trustees, the Rugby School Fundraising Committee and the Governing Body of Rugby School wish to record their heartfelt thanks to the many donors who have contributed to the Foundation. 

During the year £1,454,590 (2023-24: £,1,462,505) was used to provide financial assistance for school fees and necessary extras including uniform, laptop, books and trips for Arnold Foundation students at Rugby School and Earle Fund students at Bilton Grange. 

6 

| 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

| | | | | || | | 

## Report of the Trustees for the year ended 30 June 2025 (continued) 

## Fundraising Costs 

The Trustees and the Governing Body of Rugby School have jointly agreed that all fundraising costs for 2024/25 shall be borne by the School. In order that both the benefits and the costs of fundraising may be transparent, all such fundraising costs are charged to the Foundation but then covered bya gift in kind transfer from Rugby School, as shown on the Statement of Financial Activities. 

This generated net expenditure for the year, before the revaluation of investments, of £433,109 (2023-24: net expenditure of £443,235). The net expenditure is supported by funding from investments which are considered on a total return basis. The revaluation of investments saw a gain of £1.93 million (2023-24: £3.66 million). Following the revaluation of investments at the year-end the Foundation has total funds of £24.85 million (2024: £23.36 million). 

The underlying assets and liabilities are set out in the Balance Sheet on page 14 and further analysed in the notes accompanying the financial statements. 

## Reserves Policy 

The Foundation aims to secure sufficient restricted and endowed fund investments to generate the required 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 such restricted and unrestricted funds as 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 Policy, Objectives 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 2025 the performance performed well against the benchmark objective of CPI+3%. 

The Trustees planned that funds due to Rugby School from the Foundation (representing a combination of purchases of new investments and the net distribution of grants towards bursary programmes) would be released by the disposal of some investments. This was completed in October 2025, after the end ofthis financial year. 

| | | | | 

| 

, 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Report of the Trustees for the year ended 30 June 2025 (continued) 

## Structure, Governance and Management 

The Arnold Foundation for Rugby School (the “Foundation”) is a company limited by guarantee and does not have a share capital. The sole member of the company is Rugby School, registered charity number 528752 (the “Member”). The Governing Body of Rugby School, a statutory corporation created under the Public Schools Act 1868 and the Rugby School Act 1922, is the trustee of Rugby 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 Rugby School, the Chair of the Fundraising Committee, the Head Master of Rugby School, the President of the Rugbeian Society, all for the time being and by virtue of their respective offices. Trevor Strain and Helen Strain were elected at the meeting on 20 November 2024, Adam Habib, the former President of the Rugbeian Society, was replaced by Jeremy Maddocks, the new President of the Rugbeian Society, at the same meeting on 20 November 2024. David Ejim-McCubbin, a former Arnold Foundation beneficiary, was also elected as a Trustee on 20 November 2024. 

Trustees are selected for their skills and experience across an appropriate spectrum. New Trustees visit the school for the purpose of induction, receive key information relating to the charity and sign an appointment letter. All Trustees are encouraged to attend Trustees’ meetings which incorporate trustee-training issues. 

The Trustees were, until the end of June 2024, supported by the Foundation Board in their endeavours to promote the Arnold Foundation and raise donations in support of its objectives. The role of the Foundation Board was replaced by the Rugby School Fundraising Committee from Autumn 2024. 

## Key Management Personnel 

The Foundation delegates the daily management to the Head Master of Rugby School. They are aided by other Key Management Personnel of the School including the Chief Operating Officer and the Director of Alumni and 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 rewarding fairly any individual contribution to the School’s SUCCESS. 

8 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Report of the Trustees for the year ended 30 June 2025 (continued) 

## Principal Risks and Uncertainties 

The Trustees consider that the main risk is (1) the inability to raise sufficient funds to support the Arnold Foundation and Earle Fund bursary programmes in the future, however effective financial forecasts and realistic planning ensures that student recruitment does not exceed the available resources and (2) the collapse in the value of the investments which underpin the Charity’s future plans. 

The Governing Body of Rugby School, by way of the Fundraising Committee, conducts annually a review of risks 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 Trustees’ responsibilities 

The Trustees (who are also directors of The Arnold Foundation for Rugby School for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). 

Company law requires the 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: 

- e select suitable accounting policies and then apply them consistently; e observe the methods and principles in the Charities SORP; 

- e make judgments and estimates that are reasonable and prudent; 

- e state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

9 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Report of the Trustees for the year ended 30 June 2025 (continued) 

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination offinancial statements may differ from legislation in other jurisdictions. 

## Disclosure of information to the auditors 

- The Trustees confirm that at the time when this report was approved, the following applies: 

- e so far as each Trustee is aware, there is no relevant audit information (that is, information needed by the company’s auditors in connection with preparing their report) of which the company’s auditors are unaware; and 

- e 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 information and to establish that the company’s auditors are aware of the information. 

Crowe U.K LLP has indicated its willingness to be reappointed as statutory auditors. 

This report has been prepared taking advantage of the exemptions available to small companies under the Companies Act 2006. 

Approved by the Trustees at their meeting on 19 November 2025 and signed by order of the Trustees: 

Nick Bacon 

Trustee of the Arnold Foundation for Rugby School 

10 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

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

## Opinion 

We have audited the financial statements of The Arnold Foundation for Rugby School for the year ended 30 June 2025 which comprise Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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: 

- e give a true and fair viewofthe state of the charitable company's affairs as at 30 June 2025 and of its income and expenditure, for the year then ended; 

- e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- e 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## Conclusions relating to going concern 

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

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

## Other information 

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

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

We have nothing to report in this regard. 

## Opinions on other matters prescribed by the Companies Act 2006 

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

- e the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

11 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

- e the strategic report and the directors' report included within the trustees' report have been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

In light of the knowledge and understanding of the charitable company and their environment obtained in the course ofthe audit, we have not identified material misstatements in the strategic report or the directors' report included within the trustees’ 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: 

- e adequate and proper accounting records have not been kept; or 

- e the financial statements are not in agreement with the accounting records and returns; or e certain disclosures of trustees' remuneration specified by law are not made; or 

- e we have not received all the information and explanations we require for our audit; or e the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' 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 under the Companies Act 2006 and report in accordance with the Acts 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. 

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. 

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

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

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

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. 

12 

## **THE ARNOLD FOUNDATION FOR RUGBY SCHOOL** 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General data Protection Regulation {GDPR), Health and Safety Legislation, Employment Law, and Anti­ Fraud, Bribery and Corruption Legislation. 

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. 

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. 

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

## **Use of our report** 

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body and the charitable company'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 

4th Floor, 

St James' House St James' Square Cheltenham Gloucestershire GLS0 3PR 

## Date: 23December 2025 

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. 

13 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

Statement of Financial Activities for the year ended 30 June 2025 (including the Income & Expenditure Account) for the Arnold Foundation 

|||Unrestricte|Endowed|Restricted||Unrestricte|Endowed|Endowed|Restricted||
|---|---|---|---|---|---|---|---|---|---|---|
||Note|d Funds|Funds|Funds|Year 2025|d Funds||Funds|Funds|Year 2024|
||s|£|£|£|£|£||£|£|£|
|INCOMEAND|||||||||||
|ENDOWMENTS|||||||||||
|FROM:|||||||||||
|Income from|||||||||||
|Generated Funds|||||||||||
|Donations and<br>atts||-|15,436|445,046|460,482|-||82,583|754,200|836,783|
|Legacies||-|394,330|10,000|404,330|-||-|-|-|
|Gift in kind|)|476,029|-|-|476,029|441,000||-|-|441,000|
|Dovesttrtank<br>Income|e|:|;|226,373|226,373|:||:|229,817|229,817|
|Total Income||476,029|409,766|681,419|1,567,214|441,000||82,583|984,017|1,507,600|
|EXPENDITURE|||||||||||
|Costs of Raising|||||||||||
|Funds|||||||||||
|Fund-raising costs|||||||||||
|fordonations and||(476,029)|-|(69,703)|(545,732)|(441,000)||-|(47,330)|(488,330)|
|legacies|3||||||||||
|costs ofREISINg||(476,029)|z|(69,703)|(545,732)|(441,000)||-|(47,330)|(488,330)|
|Expenditure on|||||||||||
|charitable|||||||||||
|activities|||||||||||
|Grants||.|-|(1,454,590)|(1,454,590)|-||7|(a62508|ACO"|
|Total Expenditure|;|(476,029)|-|(1,524,293)|(2,000,322)|(441,000)||'|ane|ees|
|NSCINRENE/<br>(expenditure)||3|409,766|(842,875)|(433,109)|-||82,583|(525,818)|(443,235)|
|Net (losses)/<br>gains investments|v|-|1,294,806|632,490|1,927,296|-|2,399,751||1,259,283|3,659,034|
|NET MOVEMENT<br>IN FUNDS||-|1,704,572|(210,385)|1,494,187|-|2,482,334||733,465|3,215,799|
|Reconciliation of|||||||||||
|Funds:|||||||||||
|Balance brought<br>forward at 1July<br>24/23||185,981|15,691,032|7,478,816|23,355,829|185,981|13,208,69<br>’<br>’ 8||6,745,351|20,140,030|
|FUND BALANCES|||||||||ee||
|ee|||||||||||
|FORWARD<br>AT30<br>JUNE 25/24|10|185,981|17,395,604|7,268,431|24,850,016|185,981|15,691,03<br>’<br>’ 2||7,478,816|23,355,829|



The notes on pages 17 to 24 form part of these financial statements. 

14 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Balance Sheet as at 30 June 2025 

|||2025|2024|
|---|---|---|---|
||Notes|£|£|
|Investments|a|28,661,573|25,794,764|
|Current assets||||
|Debtors|8|65,333|741,670|
|Investments - deposits||24,314|21,248|
|Cash at bank and in hand||337,026|716|
|||426,673|763,634|
|Creditors: amounts due within one year|9|(4,238,230)|(3,202,569)|
|NETCURRENTASSETS||(3,811,557)|(2,438,935)|
|TOTAL NET ASSETS|10|24,850,016|23,355,829|
|Capital and reserves:||||
|Endowment funds|11|17,395,604|15,691,032|
|Restricted funds|12|7,268,431|7,478,816|
|Unrestricted funds|13|185,981|185,981|
|TOTALFUNDS||24,850,016|23,355,829|



The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. 

The financial statements were approved by the Trustees on 19 November 2025 and are signed on their behalf by: 

a) N Bacon G Parker-Jones Director . Director 

The Arnold Foundation for Rugby School Registered company number: 04516482 

The notes on pages 17 to 24 form part of these financial statements. 

15 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## CASH FLOW STATEMENT 

FOR THE YEAR ENDED 30 June 2025 

|||||||2025|2024|
|---|---|---|---|---|---|---|---|
|||||||£|£|
|Reconciliation of net income to net cash|||flowfrom operating|||||
|activities:||||||||
|Net Income for the reporting<br>period<br>‘et<br>Income<br>for<br>the<br>reporting period<br>(as<br>Financial Activities)|(as|p|per the Statement|=|of|(433,109)|(443,235)|
|Elimination of non-operating cash flows:||||||||
|Investment income and bank interest|receivable|||||(226,373)|(229,817)|
|Endowment donations||||||(404,330)|“|
|(Increase)/Decrease in debtors||||||676,337|125,631|
|(Increase)/Decrease in investment deposits||||||(3,066)|8,849|
|Increase/(Decrease) in creditors||||||1,035,661|2,743,884|
|Net cash used in operating activities||||||645,120|2,205,312|
|Cash flows from investing activities:||||||||
|Purchase ofinvestments||||||(2,928,958)|(9,249,345)|
|Sale of investments||||||1,989,445|6,810,135|
|Investment income and bank interest|receivable|||||226,373|229,817|
|Netcash used in investing activities||||||(713,140)|(2,209,393)|
|Cash flows from financing activities:||||||||
|New endowments||||||404,330|-|
|Net cash provided byfinancing activities||||||404,330|=|
|Change in cash and cash equivalents in the reporting period||||||336,310|(4,081)|
|Cash and cash equivalents at the beginning ofthe reporting<br>,<br>period||||||716|4,797|
||||||||ee|
|Cash and cash equivalents at the end|ofthe reporting period|||||337,026|716|
|Analysis of cash and cash equivalents:||||||||
|Cashatbank||||||337,026|716|



16 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

| 

## Notes to the Financial Statements for the year ended 30 June 2025 

## 1. Principal Accounting Policies 

## Legal Status 

The Foundation is a Public Benefit Entity registered as a company limited by guarantee (company number 04516482), and as a charity in England and Wales (charity number 1095856), operating from premises at Rugby School, Rugby, Warwickshire. 

## 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 (FRS 102)), the Charities Act 2011 and the Companies Act 2006. 

Having reviewed the funding facilities available to the Foundation together with 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 maximise 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 Trustees’ Responsibilities on page 9. 

The financial statements are prepared on a going concern 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 British Pound. 

## Donations, legacies and gifts in kind 

Donations are credited to revenue when receivable. Legacies are recognised as receivable once probate has been granted 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. Gift aid is allocated to the fund which matches the original donation. 

## Expenditure 

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 costs 

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. 

17 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## Governance costs 

Governance costs relate to the general 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. 

## Foreign 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 ruling at the balance sheet date. All differences are taken to the Statement of Financial Activities. 

## Recognition of liabilities 

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. 

## Taxation 

As a registered charity, the Arnold Foundation for Rugby School is entitled to certain tax exemptions on income and surpluses carried out in furtherance of the charity’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 restrictions imposed by donors. Income will accrue to the appropriate restricted fund. 

- Endowed funds may be further classified as: fe) permanent endowment funds arise where a donor intends the gift to be retained in perpetuity; or 

   - fe) 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 generally allocated to Restricted Funds. 

18 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## Investments and Investment 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 included, together with the related tax credit, in the period in which it is received. 

## Financial instruments 

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments 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 Assumptions 

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. The figure for Gift in Kind of £441,000 is a management estimate of the value of fundraising which should be attributed to the Arnold Foundation from Rugby School. 

2. Investment income 

|Investment income|||||
|---|---|---|---|---|
||||2025|2024|
||||£|£|
|Income on UK quoted investments|||226,373|229,817|
|Interest receivable|||-|-|
||||226,373|229,817|
|Fundraising costs for donations and legacies|||||
||Unrestricted|Restricted|||
||funds|funds|2025|2024|
||£|£|£|£|
|Staff costs|299,895||299,895|269,843|
|Marketing and publicity|27,815|-|27,815|26,475|
|Office costs|76,610||76,610|100,118|
|Legal and professional|71,709||71,709|44,564|
|Investment management|69,703||69,703|47,330|
||545,732|-|545,732|488,330|



3. Fundraising costs for donations and legacies 


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19 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## 4. Analysis of total expenditure 

||Staff costs|Other|||
|---|---|---|---|---|
|||costs|2025|2024|
||£|£|£|Z|
|Costs of Generating Funds|||||
|Fund-raising costs|299,895|245,837|545,732|488,330|
|Total|299,895|245,837|545,732|488,330|
|Charitable Activities|||||
|Grants|-|1,454,590|1,454,590|1,462,505|
|Total|-|1,454,590|1,454,590|1,462,505|



Audit fees are met by the Governing Body of Rugby School. 

## 5. Contribution from Rugby School 

The Trustees and the Governing Body of Rugby School have jointly agreed that for the current period all the costs of generating funds shall be borne by the School but in order that both the benefits and the costs of fundraising may be transparent, such costs are, for the time being, charged to the Foundation but then covered by a funds transfer from Rugby School. 

## 6. Employee, Trustee and Key Management Personnel Information 

The average monthly number of people, including Trustees, working for the Foundation was 6 (2024:4). 

No Trustees, Key Management Personnel or employees received any remuneration or reimbursement of expenses from the Foundation during the period (2024: none). 

## 7. Investments 

||Total|
|---|---|
||£|
|Balance at 1 July2024|25,794,764|
|Additions|2,928,953|
|Disposals (at net proceeds)|(1,989,430)|
|Revaluation gains|1,927,296|
|Balance at 30June 2025|28,661,573|
|Represented by:||
|Investments listed on a Stock Exchange|28,098,309|
|Cash deposits|563,264|
||28,661,573|



20 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

|8.|Debtors|||
|---|---|---|---|
|||2025|2024|
|||£|E|
||Tax recoverable|51,372|15,315|
||Duefrom Bilton Grange|-|724,563|
||Due from RugbySchool General Charitable Trust|2,444|984|
||Duefrom Rugby School Enterprises|11,517|808|
|||65,333|741,670|
|9.|Creditors|||
|||2025|2024|
|||£|£|
||Other accruals|11,961|12,000|
||Due to RugbySchool|4,226,269|3,190,569|
|||4,238,230|3,202,569|



## 10. Analysis of Net Assets 

10a. Current year analysis of net assets between funds: 

||Endowed|Restricted|Unrestricted|2025 Total|
|---|---|---|---|---|
||Funds|Funds|Funds|Funds|
||£|£|£|£|
|Investments|21,207,160|7,268,431|185,981|28,661,572|
|Net Current Assets|(3,811,556)|-|-|(3,811,556)|
|Total Net Assets|17,395,604|7,268,431|185,981|24,850,016|
|10b. Prioryear analysis of net assets between||funds:|||
||Endowed|Restricted|Unrestricted|2024Total|
||Funds|Funds|Funds|Funds|
||£|£|£|£|
|Investments|18,129,967|7,478,816|185,981|25,794,764|
|Net Current Assets|(2,438,935)|0|0|(2,438,935)|
|TotalNetAssets|15,691,032|7,478,816|185,981|23,355,829|



10b. Prior year analysis of net assets between funds: 

21 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## 11. Endowed Funds 

## 11a. Current year movement in endowed funds: 

||Balance at|Incoming|Amounts|Investment|Balance at 30|
|---|---|---|---|---|---|
||1 July 2024|Funds|Expended|Net Gains|June 2025|
||£|£|£|£|£|
|Foundation -||||||
|permanent|50|-|-||50|
|endowment||||||
|Foundation awards-||||||
|expendable|15,690,982|409,766|-|1,294,806|17,395,554|
|endowment|||_|||
||15,691,032|409,766|-|1,294,806|17,395,604|
|11b. Prior year movement|in endowed|funds:||||
||Balance at|Incoming|Amounts|Investment|Balance at 30|
||1 July 2023|Funds|Expended|Net Gains|June 2024|
||£|fe|£|£|if|
|Foundation -||||||
|permanent|50|0|0|0|50|
|endowment||||||
|Foundation awards-||||||
|expendable|13,208,648|82,583|0|2,399,/51|15,690,982|
|endowment||||||
||13,208,698|82,583|i)|2,399,/51|15,691,032|



## 11b. Prior year movement in endowed funds: 

## Foundation Permanent Endowment 

Under the terms of the company’s Memorandum of Association, the original endowment of £50 is permanent and may not be expended. 

## Arnold Foundation Awards 

The expendable capital funds provide future income for the financing of bursary awards to Rugby School and Bilton Grange from Year 7. The income from the fund is utilised for this purpose (see restricted funds). 

## Earle Fund Awards 

The expendable capital funds provide future income for the financing of bursary awards to Bilton Grange in Years 7 and 8. The income from the fund is utilised for this purpose. 

22 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## 12. Restricted Funds 

## 12a. Current year movement in restricted funds: 

||Balance at||Incoming|Amounts|Investment|Balance at 30|
|---|---|---|---|---|---|---|
||1 July2024||funds|expended|Net Gains|June 2025|
||£||£|£|£|£|
|Foundation awards|7,476,816||681,419|(1,524,294)|632,490|7,266,531|
|Performing Arts|1,900||-|-|-|1,900|
|Total|7,478,716||681,419|(1,524,294)|632,490|7,268,431|
|12b. Prioryear movement|in restricted||funds:||||
||Balance at|=|Incoming|Amounts|Investment|Balance at 30|
||1 July 2023||funds|expended|Net Gains|June 2024|
||£||iE|£|£|£|
|Foundation awards|6,743,451||984,017|(1,509,835)|1,259,283|7,476,816|
|Performing Arts|1,900||0|0|0|1,900|
|Total|6,745,351||984,017|(1,509,835)|1,259,283|7,478,716|



## 12b. Prior year movement in restricted funds: 

The fund’s principal aim is to raise monies for the financing of bursary awards to Rugby School and Bilton Grange, widening access to the schools, 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. 

23 

THE ARNOLD FOUNDATION FOR RUGBY SCHOOL 

## Notes to the Financial Statements for the year ended 30 June 2025 (continued) 

## 13. Unrestricted Funds 

## 13a. Current year movement in unrestricted funds: 

|||||Balance at|Incoming|Amounts|Investment|Balance at|
|---|---|---|---|---|---|---|---|---|
|||||1 July 2024|Funds|expended|Net Gain|30June 2025|
|Total||||£<br>185,981|£<br>476,029|£<br>(476,029)|£<br>2|£<br>185,981|
|Prior|year|movement|in|unrestricted|funds:||||
|||||Balance at|Incoming|Amounts’|Investment|Balance at 30|
|||||1 July 2023|Funds|expended|Net Gain|June 2024|
|||||£|2|£|£|£|
|Total||||185,981|441,000|(441,000)|-|185,981|



## 13b. Prior year movement in unrestricted funds: 

## 14. Financial Instruments 

||2025|2024|
|---|---|---|
||£|£|
|Financial Assets measured at fair value through profit or|28,661,573|25,794,764|
|loss—includesinvestmentassets|||



## 15. Related Party Transactions 

The audit fees are paid by Rugby School. Donations received in Rugby School related to legacies and some non-property related long-term endowments are generally passed to support the Arnold Foundation. There are no other related party transactions. 

## 16. Ultimate Controlling Party 

The ultimate controlling party is the Governing 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 c/o The Bursary, 10, Little Church Street, Rugby, CV21 3AW. 

24