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2021-08-31-accounts

Registered number: 05900743 Charity number: 1115975

RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

RATCLIFFE COLLEGE (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1 - 2
Trustees' report 3 - 16
Independent auditors' report on the financial statements 17 - 21
Consolidated statement of financial activities 22
Consolidated balance sheet 23 - 24
Company balance sheet 25 - 26
Consolidated statement of cash flows 27
Notes to the financial statements 28 - 67

RATCLIFFE COLLEGE (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees Mr S Burns (appointed 1 September 2020) Rev Fr A Furlong Rev Fr C Fuse, Chairman Rev Fr A Meredith Rev Fr D Myers Rev Fr P Sainter Rev Fr T Thomas Mrs S Bolt Mr R Gamble Mrs M Goldstraw Mr P Rudd Mrs M Smidowicz

Company registered number 05900743

Charity registered number

1115975

Registered office

Fosse Way, Ratcliffe On The Wreake, Leicester, Leicestershire, LE7 4SG

Governors

The school has its own Governing Body. The members who have served during the year and since are as follows:

Foundation Governors Rev Fr P A J Sainter Mr P Rudd Mr S Burns

Ordinary Governors Mrs T Gamble Mr S Bird (resigned 1 August 2021) Mrs K Colville Mr M Cummins Mrs J Linnet Mrs L Marsden (Chairman of Governors) Mr P Mulvihill (resigned 1 September 2020) Mrs M Riley Mr G Sharpe (resigned 10 September 2021) Mrs S Spillane Mrs M Kewell (appointed 1 February 2021)

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RATCLIFFE COLLEGE (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

The Governors operated the following sub-committees during the year:

Pastoral, Boarding and Child Protection Chaired by Mrs L Marsden

Education Chaired by Mr G Sharpe Finance and General Purposes Chaired by Mr S Burns

Co-Curricular Chaired by Mr S Bird

Remuneration Chaired by Mrs L Marsden

Senior Leadership Team Mr J Reddin, Head Mr C Bellamy, Director of Finance & Operations Mr K Ryce Fr C Cann Ms J Davis Mr C Donegan Mrs A Da Costa Mr J Neville (to 31 August 2020) Mr B Harrison (from 1 September 2020) Mr A Yell

Fr President Fr P Sainter Clerk to the governors Mr M G Smith

Independent auditors

Duncan & Toplis Ltd, 3 Princes Court, Royal Way, Loughborough, LE11 5XR

Bankers

National Westminster Bank PLC, Market Place, Loughborough, Leicestershire, LE11 3NZ

Lawyers

Shakespeares LLP, 2 Colton Square, Leicester, LE1 1QH

Veale Wasbrough Vizards LLP, Narrow Quay House, Narrow Quay, Bristol, BS1 4QA

Investment advisors

Brewin Dolphin Ltd, 4th Floor, 9 Colmore Row, Birmingham, B3 2BJ

Heartwood Wealth Management Ltd, No 1 Kingsway, London, WC2B 6AN

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report together with the audited financial statements of the Company for the 1 September 2020 to 31 August 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Objectives and activities

a. The Objects of the Charity

The objects of the Charity are primarily the provision of a Roman Catholic School for boys and girls between the ages of three and nineteen and to carry on such other charitable works as advance the Roman Catholic religion.

b. Aims

Through the work in the School, the Charity seeks to provide an education for the children in the spirit of the Gospel and the traditions of the Catholic Faith. It seeks to develop the natural and spiritual talents of each child to the best of his or her ability. Although it is a Catholic School, Ratcliffe welcomes children from other faiths where it is felt that they can benefit from the ideals and environment provided.

The Trustees, through the Governing Body, seek to employ staff sympathetic to the aims and objects of the School and who could give their fullest support to the work and the objects of the Charity.

c. Main Objectives and Strategies for the Year

Each year the Charity produces a School Development Plan which sets out in detail the main objectives for the year and how these will be achieved through the operational departments of the School. The Senior Leadership Team initially identify a series of Whole School Objectives, which are formally presented to staff annually, together with headline sub-objectives for each target before being broken down into departmental operating plans for Academic departments, Pastoral areas and Support Services departments.

Progress against the targets within these detailed plans is reported by departments, monitored by the Senior Leadership Team and formally reported to Governors on a termly basis. For each item within the detailed plan, there is an outline of the reasons for the target, the steps proposed to achieve it, an estimate of the likely resources needed and an update on progress made including identifiable success criteria.

For the year ended 31 August 2021, the following Key Areas were identified:

Key Area 1

To successfully develop the prayer life of the College.

Key Area 2

To improve academic attainment across the College, securing the quality of teaching & learning.

Key Area 3

To enhance opportunities for students' personal development.

Key Area 4 To ensure a viable, first-class boarding provision at the heart of the College.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

Key Area 5

To prudently manage College resources in order to allow for on-going reinvestment & development.

Key Area 6

To promote all that is good about a Ratcliffe education and to optimise the school roll.

Key Area 7

To increase support for the College from the wider Ratcliffe Community.

d. Volunteers

The School receives assistance from a small number of volunteers who are generally parents of students at the School, who help out with school trips and activities.

e. Public Benefit

The Trustees have considered the guidance contained in the Charity Commission’s general guidance on public benefit and in particular its supplementary public benefit guidance on advancing education and on fee-charging, when exercising their powers and duties and planning the future activities of the Charity.

The Gospel of Matthew recounts Jesus’ words that insofar as we care for our poorest brothers’ and sisters’ needs, we do it for Jesus. Our School Motto echoes this – Love is the fulfilment of the Law. It is in service to others that the great variety of ages, backgrounds, creeds and experiences among our staff and students finds a common purpose.

In addition to raising over £20,000 for both domestic and overseas causes during the year, the School has aided the community in many other ways, including:

Voluntary Service Unit weekly assistance to the Syston Friendship Group St Vincent de Paul Society Mother Teresa Group provision of surplus clothing for donation overseas Hosting the Annual Community Carol Service, with refreshments Nursery & Junior Nativity performance for local senior citizens group Donation of surplus food to local homeless centres Donation of Harvest Festival provisions to the Carpenter's Arms Assistance at the Carpenter's Arms Helping out at the LOROS Charity shop in Syston Free use of School grounds for local charitable fundraising events Free use of School minibus and driver to local village primary school & other charitable groups Financial support and student participation for HCPT in the annual Lourdes Pilgrimage

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Objectives and activities (continued)

f. Bursary Policy

Ratcliffe College wishes to encourage the inclusion of children, from all sections of society, whose parents feel they can share in and benefit from the ideals and environment of the School. In order to facilitate the accessibility of the School to parents who would otherwise be precluded for financial reasons, the School introduced a bursary scheme with effect from September 2008, (Rosminian Bursaries) which aims to offer a number of new bursaries each year.

During the year ended 31 August 2021, there were 31 students in receipt of such bursaries, with a total value in excess of £157,000. 2 of these bursaries were newly awarded at the beginning of the School Year. The School is committed to the widening of the accessibility of its resources to the public through the provision of bursaries and aims to increase the total value of bursaries awarded year on year, but must act within its financial means at all times.

In addition, during the 2012/13 School Year, a further Bursary Scheme was launched which offers bursaries of up to 100% to talented students (judged in relation to academic performance, sport, music, drama or art & design) entering the Sixth Form from the maintained sector who meet the financial criteria. 4 students were in receipt of bursaries to the value of £60,000 under this scheme during the year.

The School has also established an additional bursary scheme for students of all ages, using annual funding provided by a former student. Funds to the value of £38,000 covering 4 students were given out during the year.

In addition the School has for many years offered reductions of lesser but not insignificant amounts against the main school fees, based on financial circumstances, via its relationship with a trust set up through its past pupils' association. During the 2020/21 School Year, there were 20 students in receipt of such bursaries, totalling £50,000. In addition, the fund made special COVID-19 awards to a further 6 students totalling £72,000.

The School encourages applications for its various bursary schemes via the production of a promotional booklet and the inclusion of a distinct page within the School Website.

Strategic report

Achievements and performance

a. Key performance indicators

The Trustees are very keen to see that the ethos of the School is maintained. Antonio Rosmini, the Founder of the Institute of Charity, was an advanced thinker and respected educationalist both in his own age and today. When Ratcliffe College was founded he laid down the basic principles upon which the School should be run, and the Trustees seek to continue these today. The important person is the child. His or her welfare and development to full potential have to be at the forefront in everything that is undertaken in the School. This applies in the spiritual life of the children and in the organisation of the academic, physical and cultural activities of the School. These principles are set out in the Mission Statement of the School.

A Level Results

The A Level results in 2021 were generated by Teacher Assessed Grades (TAGs) as no examinations were sat across the country because of the COVID-19 pandemic. Nevertheless, the students and staff worked extremely hard to generate another outstanding set of results. There was a 100% pass rate and 58.1% of all grades were A or better. By value added this put Ratcliffe College in the top 1% of the country.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Strategic report (continued)

Achievements and performance (continued)

GCSE Results

The GCSE results, also generated by TAGs, were likewise impressive. There was a 97.89% pass rate and 47.96% of all grades were 7 or better. The value added for GCSE results put the College within the top 5% of the country.

Financial review

a. Financial Results

The year represented a decline in financial performance following the global outbreak of COVID-19 in March 2020.

Incoming resources were £12,676,658. Resources expended were £12,895,573. The net outgoing resources (before investment gains) for the year ended 31 August 2021 was (£218,915). The overall net movement in funds for the year ended 31 August 2021 was a net increase in funds of £47,953 following a £266,875 gain on the fair value of investments during the year.

Fee income for the year was £12,295,539. This was expended in the pursuit of the objectives outlined within this report.

b. Subsidiaries

The Charity has two wholly-owned subsidiaries, one carries out non-charitable activities for the Charity and the other seeks to raise funds for the Charity.

Ratcliffe Enterprises Limited provides catering and conference facilities for organisations and individuals using the facilities of Ratcliffe College, along with the operation of the College tuck shop, break-time shop and vending machines. Its loss for the year ended 31 August 2021 was £4,140 (2020: Profit of £12). A Gift Aid payment of £nil was made to the Charity during the year (2020: £42,307).

Ratcliffe College Foundation aims to raise funds for the enhancement and further development of Ratcliffe College and otherwise to promote any other charitable purpose connected with or otherwise associated with the College. Its net expenditure for the year ended 31 August 2021 was £22,533 (2020: Net income of £1,607).

More details regarding the subsidiaries are shown in note 34 to the financial statements.

c. Reserves policy

At 31 August 2021, the unrestricted funds of the Group were £26,202,580. £29,006,358 is represented by fixed assets. Therefore, the Group currently has no free reserves and £4,689,581 has been used to finance expenditure on fixed assets through loans and borrowings. Governors ensure that there are adequate resources available to meet the financial requirements of the School and aim to reach a level of free reserves of at least half a term’s expenditure in the near future.

At 31 August 2021, the restricted funds of the Group were £438,426. The purpose of these funds is to contribute towards bursaries and scholarships for students.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

d. Investment Powers, Policy and Performance

The Trustees’ investment powers are governed by the trust deed, which permits the Charity’s funds to be invested in securities listed on the London stock exchange. The Trustees’ policy was to maintain income while preserving the real value of the investments.

Historical investments are restricted funds which were invested by Brewin Dolphin Securities in a portfolio of fixed interest and equity funds. The investment values have increased by £40,304 to £247,899 during the year and investment income in 2021 was £4,786, a return of 2.10% on average investment values. The Trustees are seeking to improve performance both in terms of capital growth and income generation.

During 2013/14 a further sum of £250,000 was invested with Heartwood Investment Management and an additional £250,000 was also invested during 2014/15. As of 31 August 2021, these were valued at £700,122.

Towards the end of 2016/17, a further £500,000 was also invested with Heartwood in a fund aimed at generating income, to replace the diminishing returns from fixed interest deposits. An additional £500,000 was invested during 2017/18 and as of 31 August 2021 this was valued at £1,035,646.

In addition to these investments, the Charity has an investment property, Ratcliffe Farm, which was valued at £820,000 at 31 August 2017. The same valuation has been used as at 31 August 2021 as no material change in valuation was expected over the previous four years. During the 2016/17 year the Charity acquired three cottages from Grace Dieu Manor School at an estimated market value of £870,000. The three cottages were disposed of by the college during the year.

Structure, governance and management

a. Constitution

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

b. Structure and Governance

The Charitable Company “Ratcliffe College” was incorporated on 9 August 2006 and registered under the number 1115975 with the Charity Commission. From 1 September 2006, the Company took over the net assets and operations of the Charity “Trustees of Ratcliffe College” (established by a Trust Deed executed in 1923) which related to Ratcliffe College, a school at Fosse Way, Ratcliffe on the Wreake, Leicestershire, founded in 1847.

At the same time, the remaining net assets and operations of the Charity “Trustees of Ratcliffe College” were transferred to a second Charitable Company “Grace Dieu Manor School” (charity number 1115976) which operates a school of the same name in Thringstone, Leicestershire, founded as the Preparatory School for Ratcliffe College in 1933.

“Trustees of Ratcliffe College” no longer has any assets or operations and has been deregistered as a charity.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

c. Governance

The foundation of Ratcliffe College was made by the Religious Congregation called the Institute of Charity (often called the Rosminians after the Founder, Blessed Antonio Rosmini). The Trustees are members of the Congregation. Members of the Congregation provide Chaplaincy facilities in the school.

New Trustees are appointed by Fr Provincial in consultation with the Board of Trustees. Where additional Trustees are required, they are either appointed from the members of the Rosminians or the Charity encourages existing Trustees and Governors to put forward names or discusses with similar organisations whether they are aware of suitable candidates.

The Governing Body consists of up to twelve members of whom two are Trustees (Foundation Governors); the remaining ten are appointed by the Trustees (Ordinary Governors) after consultation with the Governing Body. The terms of service are detailed in the Memorandum and Articles of Association, Article 55.

Where additional Governors are required, the Charity encourages existing Trustees and Governors to put forward names or discusses with similar organisations whether they are aware of suitable candidates.

New Trustees and Governors are provided with full information on the Charity’s constitution, objects and finances. Training material is made available as necessary and appropriate training seminars are held or made available externally for the benefit of the Trustees and Governors.

d. Management

The Trustees entrust the management of the School to the Board of Governors, whose powers and duties are set out in the Memorandum and Articles of Association, Article 55.

The Trustees are kept fully informed of the management of the School, receiving Minutes of the Governors’ Meetings and their sub committees. These are reviewed regularly in the Trustee meetings. The accounts attached show the financial position of the School, which is commented on in the various notes therein.

The Headmaster and Director of Finance meet formally with the Trustees on a termly basis.

The Remuneration Committee meets at least once per year to set the remuneration of members of the School’s Senior Leadership Team for the following year. Recommendations on salaries are made to the Committee by the Head and Director of Finance, accompanied by sector specific salary survey information as appropriate.

e. Connected Charities

The Institute of Charity (charity number 222508) and Grace Dieu Manor School (charity number 1115976) are considered to be connected to the main charity because they have:

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

f. Trustees

None of the current Trustees are resident in the School. The Trustees receive no remuneration for their services, nor (where applicable) for the work they do in the School. The Trustees are entitled to recoup legitimate expenses incurred in the course of their duties as Trustees.

g. Employment Policies

It is the School’s policy to have effective communication and consultation with its staff. In addition to the formal appraisal system, Teaching staff attend a staff briefing each morning before classes begin, have at least one collective INSET session per term and operate a Common Room Committee to raise matters of interest or concern with the School. Non-teaching staff have access to the notes of the staff briefings and discuss matters of interest or concern at the weekly Diary Meeting. Copies of all employment policies are contained within the relevant Staff Handbooks and are available on the Staff shared area of the School network.

h. Disabled Employees

The School gives proper consideration to all applications for employment of disabled persons. Those who are recruited and those who become disabled in employment receive appropriate training, career development and promotion.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

i. Principal Risks and Uncertainties

Risk Assessment/Risk Register

The Governing Body of the School has carried out an exhaustive risk assessment, which is reviewed and updated regularly. It is subdivided into sections which cover the School’s mission and objects, the regulations of every sort that have an impact on the School’s day to day operations, governance and management, external factors that could affect the School, operational risks, personnel, technological issues, academic and financial issues. Various people who are on the Senior Leadership Team and Heads of Department, are nominated to monitor various sections.

The Health and Safety Committee meets frequently and its minutes are passed to the Governing Body, which carries out its own review regularly. A specific Governor is nominated to have Health and Safety responsibility.

The Trustees are happy that all major risks have been reviewed and the appropriate systems or procedures, as outlined above, have been established in order to manage those risks.

Risk Management

A number of issues have been identified which could have a significant impact on the future funding of the school.

Pupil numbers

The school currently is virtually at capacity across all age ranges, but recruitment in year 5 is expected to remain challenging for the foreseeable future, as this is not a natural year to change schools. The recruitment of overseas boarders has been significantly negatively impacted by the COVID-19 pandemic, and this is expected to remain challenging for at least a further 24 months.

Government policy

An increase in employer contributions to the Teachers' Pension Scheme (TPS) was implemented on 1 September 2019, the School Governors have budgeted for the School to remain in the TPS for the 2021-2022 year. The potential abolition of the 80% discretionary relief on business rates has been talked about for a little while and is already going through in other parts of the UK. The School will be making provision in the 2023-2024 budget for the potential loss of rate relief.

Affordability of a Ratcliffe education

The school operates in a very competitive local market, with the continuing trend of school fees rising faster than earnings across the Independent Sector. The governors are mindful of the number of families being placed under greater pressure by rising fees, as well as those being potentially priced out of the market place in the first place.

Safeguarding of pupils, staff and premises

The safety of every child is of paramount importance at Ratcliffe College. Safeguarding and child protection are seen as everyone's responsibility. Ratcliffe College is a place where we help young people to achieve their greatest potential. The warmth of the Ratcliffe community allows children to thrive in all aspects of school life. It is therefore essential that the foundation for our community is built upon a secure and safe environment where our students can be free to develop without abuse, with the space to grow and be children.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Plans for future periods

The School has drawn up a 5 year School Development Plan based around its Vision – Strength of Mind, Strength of Values and Strength of Purpose. This is broken down into Whole School 5 Year Objectives as shown in the table below:

Division

5 Year Objectives

Spiritual

To successfully develop the prayer life of the College

Academic

Improve academic attainment across the College, securing the quality of Teaching and Learning

Pastoral and Extra-curricular

To enhance opportunities for students' personal development To create further provision for student and staff welfare

To develop an extra-curricular programme that enhances and compliments the curriculum

Boarding To ensure a viable, first-class boarding provision at the heart of the College

Finance To prudently manage College resources in order to allow for ongoing reinvestment and development

Marketing and Recruitment To promote all that is good about a Ratcliffe education and to optimise the school roll

Fundraising and Alumni

To increase support for the College from the wider Ratcliffe Community

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Coronavirus Pandemic

Ratcliffe College, similar to most businesses and charities, have been significantly impacted by the COVID-19 pandemic. The UK Government issued advice to all schools to close in January 2021, resulting in the immediate requirement for Ratcliffe College to transition to a remote learning educational provision. The Government also announced that external exams would be assessed via TAGS.

The Government also announced a number of support measures for businesses, including the Coronavirus Job Retention Scheme (CJRS). The School acted swiftly and identified a number of employees, mainly support staff, that were able to be furloughed under the CJRS. All teaching staff were retained, at all times to enable the schools’ robust and interactive online learning provision. The School, following Government advice, was also required to offer onsite provision for the children of key workers, which was achieved by a minimal level of teaching and operational staff.

A number of key workers were also retained in specific departments, namely finance, housekeeping, grounds, maintenance and security. This is to ensure that the campus and facilities are appropriately maintained and the School’s financial obligations continue to be met.

The financial impact of the COVID-19 pandemic on the School, was largely due to the following:

In January 2021, the School undertook a major review of all operational expenditure, to identify what measures were available at the time, within the context of the uncertainty of the pandemic, to minimise the financial impact of the pandemic on the School. In addition the School continued to refresh regular cash flow forecasts and remained committed to exploring all other available mitigations. Despite the fact we are predominately a fixed cost business, the School has reviewed all its operational and purchase costs for the Summer term. All these reductions were passed on to parents in full.

As a result the following mitigation actions were taken:

The School did and continues to have Business Interruption Insurance, underwritten by Ecclesiastical Insurance. However, despite significant pressure from the Independent schools’ sector, including a legal challenge in the courts, the insurer was not required to pay out on the impact of COVID-19 to policyholders such as the School.

There remains significant uncertainties and variables, particularly regarding how Ratcliffe College will exit from COVID-19 and the potential for further closures. To assist the school move out of the pandemic, and give some certainty to the school finances, the School has taken advantage of the Governments’ Coronavirus Business Interruption Loan scheme (CBILS). The School has available to it, a significant and flexible facility to enable strategic financial planning support over the next five-year period.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Section 172

The Governors and Trustees consider both individually and collectively, that they have acted in a way that they consider, in good faith, would be most likely to promote the success of the charitable company, and group in order, to achieve its charitable purposes and in doing so has given regard to the stakeholders and matters set out in s172 of the Companies Act.

The success of Ratcliffe College is reliant on the support of all of our stakeholders, and it is important to the longterm success of the college, to continue to build and maintain positive relationships with all stakeholders.

Relationships with our employees

The college recognises the key to our success are our people, and we want them to be successful both as individuals and as a team. The college is committed to providing a working environment and culture that promotes equal opportunities and is free from discrimination. Our behaviour is consistent with the expectations of our community, and we recognise the benefit of effective communication with employees. The college ensures that information is readily available to employees through regular meetings, an intranet site, college app, daily and weekly briefings.

Relationships with our students

The students are key to everything that we do. The Governors and Trustees and charity are committed to promoting excellence and the individual needs of each student is central to the success of the college. Further detail included on Pages 5 and 6.

Relationships with our wider community

The college welcomes several of the wider community-based organisations onto the campus daily. This includes local primary schools and voluntary groups making use of the schools' wide range of facilities. Students at the college extend their reach outwards into the wider community through extensive fundraising activities and events. These events very successfully raise significant funds and at the same time promote awareness in the student body to wider community and global challenges. Further details of specific examples of community projects in the year on Pages 3 and 4.

Fundraising

Ratcliffe College is registered with the Fundraising Regulator, which is responsible for the UK code of fundraising practice. Our approach is to ensure that we comply with the standards as set out in the Code across all of our fundraising activity. We comply with the behaviours required by the code and we will not exploit the trust or lack of knowledge or awareness of any donor in vulnerable circumstances.

All of our fundraising is managed by our own staff. We do not employ any third-party professional fundraising organisations to carry out our activities, other than using a third-party payment platform to receive and manage online donations.

The platform used provides the security processes to protect donors and the charity, and their funds, and reduces our administrative burden and costs.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Greenhouse gas emissions, energy consumption and energy efficiency action

The School's greenhouse gas emissions and energy consumption are as follows:

Scope 1 emissions (in tonnes of CO2 equivalent):
Gas consumption
Heating oil and vehicle fleet
Total scope 1
Scope 2 emissions (in tonnes of CO2 equivalent):
Electricity
Total gross emissions (in tonnes of C02 equivalent)		 2021
247.07
563.93
811.00
225.60
1,036.60		 2020
-
-
-
-
-

The Streamlined Energy and Carbon Reporting (SECR) figures will present a benchmark for future activity. We have a policy of recording and reviewing all energy use and investigating unexplained anomalies. The main School electricity is half hourly and consumption use is studied to check that it follows expected patterns of use. Both staff and pupils are well aware of and wish to contribute to reducing energy consumption and follow best practice to achieve this.

Quantification and reporting methodology

The methodology we have used is The GHG Protocol Corporate Accounting and Reporting Standard. We have followed the 2013 UK Government Environmental Reporting Guidelines (updated March 2019). We have used the 2019 UK Government’s Conversion Factors for Company Reporting. The energy efficiency narrative methodology has been created based on energy management best practice.

Organisational boundary

We have used the financial control approach.

Intensity ratio

2021 2020
£ £
Metric used:
£m turnover 12 -
Intensity ratio:
Tonnes of CO2 equivalent per £m turnover 86.84 -

It was decided to use total £m turnover as our metric. The resulting intensity ratio of tCO2e per total £m turnover will best reflect changes in operation and energy consumption over time.

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RATCLIFFE COLLEGE (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Streamlined Energy and Carbon Report for 2020

The College first published a Streamlined Energy and Carbon Report (SECR) for the year ending 2019, the purpose of which was to provide a benchmark for future years.

In the 2020 financial year the UK Government issued advice to all schools to close in March 2020, and not reopen until September 2020. As a result, most school buildings were mothballed, heating turned off, school vehicles parked up, and unused for the full closure period of six months. The College believes that an SECR report for 2020 will not provide accurate or useful data for purposes of comparison, for the management of energy use and consumption for future years. The College has therefore taken the decision to publish an SECR report for 2021, which is believed to be of greater use for future benchmarking, and not publish an SECR for 2020, as any data would be misleading due to the long school closure required by the Government COVID-19 Guidance at the time.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' report including the Strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . 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 Group and the Company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

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RATCLIFFE COLLEGE IA company Ilml¢ed by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Apwoved by order of the members of the board of Trustees WKI swed on their behaN by. Mrs Burns Date= 3010512022 Pag• 16

RATCLIFFE COLLEGE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RATCLIFFE COLLEGE

Opinion

We have audited the financial statements of Ratcliffe College (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.

Page 17

RATCLIFFE COLLEGE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RATCLIFFE COLLEGE (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. 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 course of 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report including the Strategic report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 18

RATCLIFFE COLLEGE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RATCLIFFE COLLEGE (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 19

RATCLIFFE COLLEGE (A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RATCLIFFE COLLEGE (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Trustees and other key management obtained as part of the work required by auditing standards. We have also discussed with the Trustees and other key management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the college is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of property, plant and equipment, the valuation of investment property , the level of provision for bad and doubtful debts, as well as the risk of inappropriate journal entries to manipulate reported surplus/deficit. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on material accounting estimates, including reviewing the methods and data used by management to make those estimates, re performing the calculation, reviewing the outcome of prior year estimates and also reviewing the outcome of current year estimates since the financial reporting date. We also reviewed financial statement disclosures and tested these to supporting documentation to assess compliance with laws and regulations, and we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Secondly, the college is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Child Welfare and Health and Safety Legislation, inspections by the Independent Schools Inspectorate, compliance with the charitable objectives, public benefit, fundraising regulations, data protection, employment law and safeguarding. The college is subject to regular internal and external audits to ensure compliance with these areas.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other key management and inspection. This inspection included a review of the latest available external audits for any evidence of non-compliance, reading minutes of meetings of those charged with governance, and discussions with key management. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Page 20

RATCUFFE COLLEGE {A Gompany Ilmlted by gu•tantsel INOEPENDENT AUDITORS. REPORT TO THE MEMBERS OF RATCUFFE COLLEGE ICONTINUEOI Owing lo the inher8nl Iwnitations of an audit, there is an unavoidable risk that we may not have detecled somè material misslatemenls in the finanual slalements. even though ￿ have prwerty planned and performed our audit in •¢¢ordan¢• with •uditing standwds. The lurthof romoved non-compliance with laws and r89ulations is from the gvonls and Iran$adion$ rellecled in Ihe financial stalements. th8 loss likely the inherenlty limil8d procedures required by audrting standards would Ident￿ it. As ￿th any audit, there is a grèater risk of non detection of irregularitbes as these may involve ccllusion. intentional omissions of the ov8ffide of inl8rnal controls. We are not responsible l¢y prevonting non-compliance and cannot be expected lo deltcl non4omplianco wlth laws and regulation•. A further dgscription ol ¢wr responsibilith￿ for the audil of the financid Btat•mgnls kKaled on the Financial Reporting Councif8 web8rte at: vM. This descriptK)n fom8 part of our Auditors. report. U•• of our r•port This report is madè 8018ty lo the charitable companys members. a8 a bth, in •ccordanrA wlh Chapter 3 01 Part 16 01 the Conyanles Act 2006. Our audit work has bogn undertaken so that V•P might state lo the charilablè ¢ompanY$ members thos• matt•r3 we are required lo slate lo thèm in on Auditors. report and for no other putpo$•. To the fulle81 •xtenl pemitted by I￿. do rK>t accopt ￿ assum? responsibility lo anyon8 other than the chaiilable ¢ompany and its momb•rs. •• • bc. fty ow audit work, for thi8 rnP¢Jt. or for thts Opin￿nts h8v• formgd. Nl411 Klngsl•y ACA IS•nlor ¥tslutory audttor) foi and on behaw of Dunc¥n & Toplls Ltd 3 Princes Court Royal Way Loughborough LE115XR Datg. 30/05/2022 Page 21

RATCLIFFE COLLEGE (A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Other income
8
Total income
Expenditure on:
Raising funds
Charitable activities
10
Total expenditure
Net expenditure before net
gains/(losses) on investments
Net gains/(losses) on investments
Net income/(expenditure) before
taxation
Taxation
15
Net income/(expenditure) after
taxation
Transfers between funds
24
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
-
12,295,539
46,028
39,632
167,718
12,548,917
38,307
12,727,063
12,765,370
(216,453)
224,405
7,952
(7)
7,945
3,697
11,642
26,190,938
11,642
26,202,580		 Restricted
funds
2021
£
79,896
39,660
-
8,185
-
127,741
-
130,203
130,203
(2,462)
42,470
40,008
-
40,008
(3,697)
36,311
402,115
36,311
438,426		 Total
funds
2021
£
79,896
12,335,199
46,028
47,817
167,718
12,676,658
38,307
12,857,266
12,895,573
(218,915)
266,875
47,960
(7)
47,953
-
47,953
26,593,053
47,953
26,641,006		 Total
funds
2020
£
63,336
11,962,338
90,091
59,398
416,398
12,591,561
66,083
12,530,070
12,596,153
(4,592)
(30,124)
(34,716)
-
(34,716)
-
(34,716)
26,627,769
(34,716)
26,593,053

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 28 to 67 form part of these financial statements.

Page 22

RATCLIFFE COLLEGE

(A company limited by guarantee) REGISTERED NUMBER: 05900743

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
16
Investments
18
Investment property
17
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets / liabilites
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
22
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
24
Total funds		 90,864
645,915
4,916,187
5,652,966
(3,780,939)		 2021
£
26,202,691
1,983,667
820,000
29,006,358
1,872,027
30,878,385
(4,237,379)
26,641,006
438,426
26,202,580
26,641,006		 79,326
564,988
2,315,418
2,959,732
(3,824,871)		 2020
£
26,270,213
1,718,971
1,690,000
29,679,184
(865,139)
28,814,045
(2,220,992)
26,593,053
402,115
26,190,938
26,593,053

Page 23

RATCLIFFE COLLEGE (Acompany Ilmlted by gu8r•rt•• REGISTERED NUPABER: 05900743 CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2021 The Trustee5 acknoW￿ge their TeS￿￿61b1￿.tles for with the ieqi¥rements of the Act res￿ct to accounting re¢x)r(18 and prewalion of financ¥al stalements. The flnanclal ststemenls were approved and authrxised issue bythe Trustees signed on thelr behalf by.. Mrs Burn• Date.. 3010512022 The notes on pages 28 to 67 form part of these ffinand81 ststements. Page 24

RATCLIFFE COLLEGE (A company limited by guarantee) REGISTERED NUMBER: 05900743

COMPANY BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Tangible assets
16
Investments
18
Investment property
17
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors: amounts falling due within one
year
21
Net current assets / liabilites
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
22
Total net assets
Charity funds
Restricted funds
24
Unrestricted funds
24
Total funds		 90,864
656,094
4,902,219
5,649,177
(3,773,023)		 2021
£
26,270,242
1,983,670
820,000
29,073,912
1,876,154
30,950,066
(4,237,379)
26,712,687
438,426
26,274,261
26,712,687		 79,326
647,687
2,288,796
3,015,809
(3,904,417)		 2020
£
26,337,764
1,718,974
1,690,000
29,746,738
(888,608)
28,858,130
(2,220,992)
26,637,138
379,581
26,257,557
26,637,138

Page 25

RATCLFFE COLLEGE IA rompany Imlled by guarantee) REGISTERED NUMBER: 059D0743 COMPANY BALIXCE SHEET (CONnNUED) AS AT 31 AUGUST 2021 The Truslees acknowledge th￿r reswJnstJiliti8s for CA￿￿￿1n9 Mih the requirements of the Act re8ped to accL4Jnling re￿d$ and preparation of financial statements. The fin￿cial slaiements were approved and authorised for issue by the Trustees and signed their bahaff by.. Mr S Bums Dalt: 3010512022 Tha notes an pages 2810 67 fom part of Ihese financial statwngnts. Page 26

RATCLIFFE COLLEGE (A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Interest paid
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 28 to 67 form part of these financial statements		 2021
£
363,736
60,593
13,215
(900,251)
35,431
(30,426)
905,887
84,449
2,500,000
(259,569)
(85,020)
2,155,411
2,603,596
2,321,419
4,925,015		 2020
£
565,279
82,474
10,257
(1,149,709)
24,888
(21,926)
-
(1,054,016)
-
(112,394)
(76,667)
(189,061)
(677,798)
2,999,217
2,321,419

Page 27

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

Ratcliffe College is a Charitable Company, limited by guarantee, registered in England and Wales. The Company's registered number is 05900743 and registered office address is Ratcliffe College, Fosse Way, Ratcliffe on the Wreake, Leicestershire, LE7 4SG.

The financial statements are presented in sterling which is the functional currency of the Charitable Company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Ratcliffe College meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Company and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.

2.2 Going concern

The financial statements have been prepared on the going concern basis, which assumes the college and group will continue in operational existence for the foreseeable future.

The global outbreak of COVID-19 caused widespread disruption to all aspects of economic, social, educational and charitable activity across the world, including the UK. In common with many other organisations, the college's operations have been impacted adversely by the coronavirus outbreak. The continuing impact of COVID-19 remains uncertain and continues to develop on a daily basis.

The Trustees are monitoring the exposure to the college and the group's activities, including its employees, and are referring to government and professional advice being published so that action can be considered which may help to minimise the impact of this risk. The Trustees are confident that the college and group are in a position to manage the situation and possible outcomes, while working to mitigate the risk where possible. For these reasons, the Trustees believe that the going concern basis is appropriate.

Page 28

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.3 Financial reporting standard 102 - reduced disclosures exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”:

The disclosure above is incorporated within these consolidated financial statements.

2.4 Income

Incoming resources comprise tuition and boarding fees, grants and donations, investment income, interest receivable and other miscellaneous income and are accounted for on a receivable basis with the exception of donations which are accounted for when the Charity becomes legally entitled to them and they can reasonably be measured in financial terms.

2.5 Expenditure

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category. Irrecoverable VAT is included with the category of expenses to which it relates.

Trading expenses comprise those costs associated with trading carried on through the subsidiary trading Company.

Fundraising expenses are those incurred in seeking voluntary contributions.

Costs of charitable activities consists of all expenditure directly relating to the objects of the Charity.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

2.6 Government grants

Government grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 29

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.7 Taxation

The Charitable Company is exempt from corporation tax on its charitable activities.

Trading activities within the subsidiary, Ratcliffe Enterprises Limited, are subject to corporation tax to the extent that profits are not gift relieved to the parent, Ratcliffe College.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. The freehold land and buildings were valued using professional valuers as at 1 September 2006, the date the assets were transferred from the old Charity. This valuation will not be updated as it has been adopted as the historical cost. The land and buildings were valued on the following basis:

  1. Main college/school and buildings on site - depreciated replacement cost value 2. Other buildings - open market value

The Trustees consider that the expected useful life of the buildings taking into account the nature and status of the buildings, with the result that for the main School buildings, which are primarily a listed property, it is anticipated that they will have a future life of not less than 50 years. This is in excess of the life used in the valuation mentioned above and resulted in an increase in both depreciation and valuation.

Assets in the course of construction are included at costs incurred to date. Depreciation on these assets is not charged until they are brought into use.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property - 2% - 10% on cost Motor vehicles - 25% on cost Fixtures and fittings - 10% on cost Computer equipment - 20% on cost

Page 30

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.9 Investments

Investments held for the long-term to generate income or capital growth are carried at market value as fixed assets. The investment property is valued using professional valuers with sufficient regularity.

Realised gains are the difference between sales proceeds and opening market value where the investment was held at the beginning of the year, or sales proceeds less cost of purchase where the investment was acquired in the year.

Unrealised gains are the change in value of investments after taking into account any movements in investment holdings such as purchases and disposals of investments. Realised and unrealised gains are accounted for within the Statement of Financial Activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

School fees and other debtors are recognised at the settlement amount after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

Page 31

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.14 Financial instruments

The Charitable Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the Statement of Financial Activities.

Basic financial liabilities, including trade and other creditors, bank loans and loans from connected entities, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the Charitable Company's activities. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

2.15 Leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.16 Pensions

Contributions are made for teaching staff to the Department for Education Superannuation Scheme ("TPS"). For the purposes of complying with relevant accounting standards the TPS is accounted for as a defined contribution scheme as the Charity is not responsible for or entitled to receive benefit for any surplus nor is responsible for any deficit of the scheme.

The majority of non teaching staff are members of a defined contribution occupational pension scheme. The Charity is not entitled to receive benefit for any surplus or deficit on the scheme

Page 32

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

The bursary fund comprises transfers from the general fund to provide bursaries for pupils

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods

Critical accounting estimates and assumptions:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and the residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Valuation of investment properties

The investment properties are stated at fair value based on the valuations performed by Mather Jamie and updated by the Trustees at the year end. The valuers used observable market prices adjusted as necessary for any differences in the future, location or condition of the specific asset. The Trustees are of the opinion that, based on available market evidence, there were no material changes to the property valuations.

Page 33

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. Income from donations and legacies

Donations
Donations
Income from charitable activities
Unrestricted
funds
2021
£
Fees receivable
11,892,842
Other fee income
402,697
Grants received
-
12,295,539
Unrestricted
funds
2020
£
Fees receivable
11,597,738
Other fee income
344,389
Grants received
-
11,942,127		 Restricted
funds
2021
£
79,896
Restricted
funds
2020
£
63,336
Restricted
funds
2021
£
-
-
39,660
39,660
Restricted
funds
2020
£
-
-
20,211
20,211		 Total
funds
2021
£
79,896
Total
funds
2020
£
63,336
Total
funds
2021
£
11,892,842
402,697
39,660
12,335,199
Total
funds
2020
£
11,597,738
344,389
20,211
11,962,338

5. Income from charitable activities

Page 34

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Fees receivable consist of:

Gross fees
Less bursaries, grants and allowances
Add bursaries paid by restricted funds
Total
Other fee income consists of:
Casual board and lodging
Music tuition
Learning support
Other
Total
6.
Income from other trading activities
Income from non charitable trading activities		 2021
£
13,135,095
(1,268,161)
25,908
11,892,842
2021
£
47,951
174,466
41,456
138,824
402,697		 2020
£
12,646,135
(1,060,489)
12,092
11,597,738
2020
£
17,759
131,772
29,617
165,241
344,389
Unrestricted
funds
2021
£
Trading income
46,028
Unrestricted
funds
2020
£
Trading income
90,091		 Total
funds
2021
£
46,028
Total
funds
2020
£
90,091

Page 35

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. Investment income

Unrestricted
funds
2021
Restricted
funds
2021
£
£
Investment income
39,632
8,185
Unrestricted
funds
2020
Restricted
funds
2020
£
£
Investment income
54,504
4,894
Investment income consists of:
2021
£
Listed stock and equities
47,458
Bank interest receivable
359
Other interest receivable
-
47,817
8.
Other incoming resources
Unrestricted
funds
2021
£
Government grants
167,718		 Total
funds
2021
£
47,817
Total
funds
2020
£
59,398
2020
£
47,903
9,355
2,140
59,398
Total
funds
2021
£
167,718

Page 36

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Other incoming resources (continued)

Government grants
9.
Analysis of grants
Grants payable
Grants payable		 Unrestricted
funds
2020
£
416,398
Grants to
Individuals
2021
£
56,671
Grants to
Individuals
2020
£
12,092		 Total
funds
2020
£
416,398
Total
funds
2021
£
56,671
Total
funds
2020
£
12,092

Page 37

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£
Teaching costs
7,274,576
Welfare
1,409,163
Premises
1,803,828
Support costs
2,239,496
Foundation costs
-
Grants payable
-
12,727,063
Unrestricted
funds
2020
£
Teaching costs
7,303,555
Welfare
1,325,437
Premises
1,673,880
Support costs
2,125,752
Foundation costs
-
Grants payable
-
12,428,624		 Restricted
funds
2021
£
-
-
-
2,165
71,367
56,671
130,203
Restricted
funds
2020
£
-
-
-
1,961
87,393
12,092
101,446		 Total
funds
2021
£
7,274,576
1,409,163
1,803,828
2,241,661
71,367
56,671
12,857,266
Total
funds
2020
£
7,303,555
1,325,437
1,673,880
2,127,713
87,393
12,092
12,530,070

Page 38

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

Teaching costs
Welfare
Premises
Support costs
Foundation costs
Grants Payable
Teaching costs
Welfare
Premises
Support costs
Foundation costs
Grants payable		 Staff costs
2021
Depreciation
2021
£
£
6,535,251
347,247
926,216
-
330,426
620,517
1,144,876
-
49,953
-
-
-
8,986,722
967,764
Staff costs
2020
Depreciation
2020
£
£
6,349,770
358,441
876,817
-
293,471
593,514
1,110,245
-
65,869
-
-
-
8,696,172
951,955		 Other costs
2021
£
392,078
482,947
852,885
1,096,785
21,414
56,671
2,902,780
Other costs
2020
£
595,344
448,620
786,895
1,017,468
21,524
12,092
2,881,943		 Total
funds
2021
£
7,274,576
1,409,163
1,803,828
2,241,661
71,367
56,671
12,857,266
Total
funds
2020
£
7,303,555
1,325,437
1,673,880
2,127,713
87,393
12,092
12,530,070

Page 39

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11. Analysis of expenditure by activities

Teaching costs
Welfare
Premises
Support costs
Foundation costs
Grants payable
Teaching costs
Welfare
Premises
Support costs
Foundation costs
Grants payable		 Activities
undertaken
directly
2021
£
7,227,363
1,409,163
1,803,828
-
71,367
-
10,511,721
Activities
undertaken
directly
2020
£
7,269,012
1,325,437
1,673,880
-
87,393
-
10,355,722		 Grant
funding of
activities
2021
£
-
-
-
-
-
56,671
56,671
Grant
funding of
activities
2020
£
-
-
-
-
-
12,092
12,092		 Support
costs
2021
£
47,213
-
-
2,241,661
-
-
2,288,874
Support
costs
2020
£
34,543
-
-
2,127,713
-
-
2,162,256		 Total
funds
2021
£
7,274,576
1,409,163
1,803,828
2,241,661
71,367
56,671
12,857,266
Total
funds
2020
£
7,303,555
1,325,437
1,673,880
2,127,713
87,393
12,092
12,530,070

Page 40

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Professional fees
Postage, stationery and telephone expenses
Transport costs
Publicity
Donations and community
Subscriptions
Finance costs
Other costs
Governance costs
Staff costs
Professional fees
Postage, stationery and telephone expenses
Transport costs
Publicity
Donations and community
Subscriptions
Finance costs
Other costs
Governance costs		 Governance
2021
£
-
-
-
-
-
-
-
-
-
47,213
47,213
Governance
2020
£
-
-
-
-
-
-
-
-
-
34,543
34,543		 Support
costs
2021
£
1,144,876
68,523
69,730
96,749
118,931
142,480
71,728
117,210
411,434
-
2,241,661
Support
costs
2020
£
1,110,245
39,852
68,291
93,156
98,783
127,837
67,446
76,667
445,436
-
2,127,713		 Total
funds
2021
£
1,144,876
68,523
69,730
96,749
118,931
142,480
71,728
117,210
411,434
47,213
2,288,874
Total
funds
2020
£
1,110,245
39,852
68,291
93,156
98,783
127,837
67,446
76,667
445,436
34,543
2,162,256

Page 41

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Auditors' remuneration

2021 2020
£ £
Fees payable to the Company's auditor and its associates for the audit of
the Company's annual accounts 17,949 20,438
Fees payable to the Company's auditor and its associates in respect of:
Audit of the Company's subsidiaries 7,901 7,587

13. Parent charity's (school) activities

Incoming resources
Charitable expenditure
Net incoming resources
Investment gains/(losses)
Funds brought forward
Funds carried forward		 2021
2020
£
£
12,618,891
12,566,853
(12,810,217)
(12,531,677)
(191,326)
35,176
266,875
(30,124)
26,637,138
26,632,086
26,712,687
26,637,138

14. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2021
£
7,149,001
658,156
1,193,061
9,000,218		 Group
2020
£
6,931,937
623,330
1,157,019
8,712,286		 Company
2021
£
7,107,070
653,740
1,189,455
8,950,265		 Company
2020
£
6,876,626
617,485
1,152,306
8,646,417

Page 42

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Staff costs (continued)

The average number of persons employed by the Company during the year was as follows:

Teaching staff
Support staff		 Group
2021
No.
136
149
285		 Group
2020
No.
132
156
288		 Company
2021
No.
136
147
283		 Company
2020
No.
132
154
286

The average headcount expressed as full-time equivalents was:

Teaching staff
Support staff		 Group
2021
No.
116
102
218		 Group
2020
No.
112
108
220		 Company
2021
No.
116
101
217		 Company
2020
No.
112
107
219

Page 43

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 4 2
In the band £70,001 - £80,000 1 1
In the band £80,001 - £90,000 2 1
In the band £110,001 - £120,000 - 1
In the band £120,001 - £130,000 1 -

Page 44

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. Staff costs (continued)

Contributions were made to the Teacher's Superannuation Scheme for three of the above employees and to the personal pension scheme for two of the other employees.

Pension schemes

The teaching staff are members of the Teachers' Pension Scheme ('the TPS') which is a defined benefits scheme. The Scheme permits staff to make additional voluntary contributions. The TPS instructs the school as to the level of contribution, 23.68% for the School and between 7.4% and 11.7% for the employees. The School does not have any commitment to make good any actuarial deficit.

The most recent actuarial valuation of the Teachers' Pension Scheme was prepared as at 31 March 2016. The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019.

However, the assumptions were considered and set by the Department for Education prior to the ruling in the McCloud/Sargeant case'. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers' Pensions.

On 27 June 2019, the Supreme Court denied the government permission to appeal the Court of Appeal's judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate, In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until a remedy to the discrimination conclusion has been determined by the Employment Tribunal it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.

There is a pension scheme for non-teaching staff:

The Ratcliffe College GPP Scheme

This is a defined contribution occupational pension scheme, under which all the benefits provided are secured by policies of insurance with Scottish Widows. It is administered in accordance with the rules of the Trustees. Contribution rates are 5% for members, and 8.6% by the Charity.

The total employer contributions under the two schemes in 2021 was £1,193,061 (2020: £1,157,019).

Contributions totalling £132,927 (2020: £136,580) were payable to the schemes at the year end.

Page 45

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Taxation

Corporation tax
Current tax on net income/(expenditure) for the year
Taxation on net income/(expenditure)		 2021
£
7
7		 2020
£
-
-

The tax assessed for the year is higher than ( 2020 - higher than ) the standard rate of corporation tax in the UK of 19% ( 2020 - 19% ). The differences are explained below:

Net income/(expenditure) before tax
Net income/(expenditure) multiplied by the standard rate of corporation tax
in the UK of 19_(2020 - 19%)._
Effects of:
Exemption on net income/(expenditure) due to charitable activities
Adjustments to tax charge in respect of prior periods
Total tax charge for the year		 2021
£
47,960
9,112
(9,112)
7
7		 2020
£
(34,716)
(6,596)
6,596
-
-

Page 46

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Tangible fixed assets

Group

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
29,889,384
507,630
-
30,397,014
5,793,843
574,522
-
6,368,365
24,028,649
24,095,541		 All weather
pitch
£
960,160
-
-
960,160
421,949
45,995
-
467,944
492,216
538,211		 Motor
vehicles
£
135,692
-
(12,737)
122,955
107,662
13,997
(12,737)
108,922
14,033
28,030		 Fixtures
and fittings
£
2,671,550
317,854
-
2,989,404
1,264,123
236,793
-
1,500,916
1,488,488
1,407,427		 Computer
equipment
£
819,568
74,767
-
894,335
618,564
96,466
-
715,030
179,305
201,004		 Total
£
34,476,354
900,251
(12,737)
35,363,868
8,206,141
967,773
(12,737)
9,161,177
26,202,691
26,270,213

Page 47

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Tangible fixed assets (continued)

Company

Cost or valuation
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
On disposals
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
29,889,384
507,630
-
30,397,014
5,793,843
574,522
-
6,368,365
24,028,649
24,095,541		 All weather
pitch
£
1,027,711
-
-
1,027,711
421,949
45,995
-
467,944
559,767
605,762		 Motor
vehicles
£
135,692
-
(12,737)
122,955
107,662
13,997
(12,737)
108,922
14,033
28,030		 Fixtures
and fittings
£
2,665,081
317,854
-
2,982,935
1,257,654
236,793
-
1,494,447
1,488,488
1,407,427		 Computer
equipment
£
819,568
74,767
-
894,335
618,564
96,466
-
715,030
179,305
201,004		 Total
£
34,537,436
900,251
(12,737)
35,424,950
8,199,672
967,773
(12,737)
9,154,708
26,270,242
26,337,764

The land and buildings were transferred from the old Charity and valued on 1 September 2006 by Mather Jamie, Chartered Surveyors, Loughborough, Leicestershire. This valuation will not be updated as it has been adopted as the historical cost.

Ratcliffe Enterprises Limited, a subsidiary of the Charity, sold the all weather pitch to Ratcliffe College at a historical profit of £67,552. This extra cost is reflected in the Charity fixed asset figures but is eliminated in the Group figures.

Page 48

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Investment property

Group

Valuation
At 1 September 2020
Disposals
At 31 August 2021
Company		 Freehold
investment
property
£
1,690,000
(870,000)
820,000
Valuation
At 1 September 2020
Disposals
At 31 August 2021		 Freehold
investment
property
£
1,690,000
(870,000)
820,000

Included in the net book value of property displayed above are the following amounts ascribable to land:

Cost
Revaluation gains/(losses)		 Group
2021
£
627,000
193,000
820,000		 Group
2020
£
1,497,000
193,000
1,690,000		 Company
2021
£
627,000
193,000
820,000		 Company
2020
£
1,497,000
193,000
1,690,000

Ratcliffe Farm was subject to valuation at 12 October 2017. (The valuation was undertaken by Mather Jamie, Chartered Surveyors on a market value basis).

The Trustees have reviewed investment property values as at 31 August 2021 and are satisfied that they have not changed materially.

Page 49

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Fixed asset investments

Group
Cost or valuation
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Listed
investments
£
1,718,970
33,253
(35,431)
266,875
1,983,667
1,983,667
1,718,970

All the fixed asset investments are held in the UK.

Also included in the closing balance of group investments is £8,828 cash held for investment (2020: £6,001).

The historical cost of group investments is £1,698,969.

Group material investments

The following are greater than 5% of the market value of the listed investments: -

2021 2020 £ £ Heartwood Multi Asset Fund 700,122 598,46 1 Heartwood Income Plus Fund 1,034,387 912,91 5

Page 50

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. Fixed asset investments (continued)

Company
Cost or valuation
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
The historical cost of company investments is £1,698,972.
Stocks
Group
2021
£
Stocks
90,864		 Investments
in
subsidiary
companies
£
3
-
-
-
3
3
3
Group
2020
£
79,326		 Listed
investments
£
1,718,970
33,253
(35,431)
266,875
1,983,667
1,983,667
1,718,970
Company
2021
£
90,864		 Total
£
1,718,973
33,253
(35,431)
266,875
1,983,670
1,983,670
1,718,973
Company
2020
£
79,326

19. Stocks

Page 51

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. Debtors

Due within one year
School fees
Amounts owed by group undertakings
Amounts owed by connected charity
Other debtors
Prepayments and accrued income		 Group
2021
£
259,226
-
274,160
31,869
80,660
645,915		 Group
2020
£
183,147
-
250,000
41,736
90,105
564,988		 Company
2021
£
259,226
17,330
274,160
24,718
80,660
656,094		 Company
2020
£
183,147
2,511
250,000
40,646
171,383
647,687

21. Creditors: Amounts falling due within one year

Bank loans
Pupil deposits
Trade creditors
Other taxation and social security
Fees paid in advance
Other creditors
Accruals and deferred income		 Group
2021
£
452,202
578,248
475,894
166,248
1,539,428
356,095
212,824
3,780,939		 Group
2020
£
217,663
553,635
168,064
604,059
1,563,839
488,133
229,478
3,824,871		 Company
2021
£
452,202
578,248
475,894
166,248
1,539,428
353,595
207,408
3,773,023		 Company
2020
£
217,663
553,635
168,064
604,059
1,563,839
488,133
309,024
3,904,417

Deferred income has arisen due to fees paid in advance for school fees relating to the next accounting year.

Page 52

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22. Creditors: Amounts falling due after more than one year

Group
2021
£
Bank loans
4,237,379
Included within the above are amounts falling due as follows:
Group
2021
£
Between one and two years
Bank loans
742,610
Between two and five years
Bank loans
2,260,545
Over five years
Bank loans
1,234,224		 Group
2020
£
2,220,992
Group
2020
£
223,837
710,327
1,286,828		 Company
2021
£
4,237,379
Company
2021
£
742,610
2,260,545
1,234,224		 Company
2020
£
2,220,992
Company
2020
£
223,837
710,327
1,286,828

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments Group
2021
£
1,234,224
1,234,224		 Group
2020
£
1,286,828
1,286,828		 Company
2021
£
1,234,224
1,234,224		 Company
2020
£
1,286,828
1,286,828

The School and Group had three bank loans outstanding at the year-end.

One bank loan expires in 2030 and the interest rate is set at 2.05% above the bank base rate.

The other two bank loans relate to the Coronavirus Business Interruption Loan Scheme (CBILS). Both of these loans expire in 2027 and the interest rate is set at 2.09% above the bank base rate.

All of the above bank loans are secured by charges over the freehold properties known as: (i) Ratcliffe College Farm and (ii) Land and Buildings at Ratcliffe College.

Page 53

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

23. Financial instruments

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 1,974,839 1,712,969 1,974,839 1,712,969

Financial assets measured at fair value through income and expenditure comprise of fixed asset listed investments (note 18).

The income, expenses, net gains and net losses attributable to the group's financial instruments are summarised as follows:

2021 2020 £ £ Financial assets measured at fair value through income and expenditure 266,875 (30,124)

The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through income and expenditure was £nil (2020: £2,140) and £49,896 (2020: £61,959) respectively.

Page 54

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24.
Group statement of funds
Group statement of funds - current year
Unrestricted funds
Designated funds
Designated Funds - all funds
General funds
General Funds - all funds
Total Unrestricted funds		 Balance at 1
September
2020
£
-
26,190,938
26,190,938		 Income
£
(230,748)
12,779,665
12,548,917		 Expenditure
£
-
(12,765,370)
(12,765,370)		 Taxation
£
-
(7)
(7)		 Transfers
in/out
£
230,748
(227,051)
3,697		 Gains/
(Losses)
£
-
224,405
224,405		 Balance at
31 August
2021
£
-
26,202,580
26,202,580

Page 55

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24. Statement of funds (continued)

Restricted funds
Peter Daley Fund
Birch Legacy for Scholarships
Black Legacy for Scholarships
Foundation
Other Funds
Total of funds		 Balance at 1
September
2020
£
36,774
268,853
3,825
22,532
70,131
402,115
26,593,053		 Income
£
-
3,753
53
122,956
979
127,741
12,676,658		 Expenditure
£
(25,908)
(1,698)
(24)
(102,131)
(442)
(130,203)
(12,895,573)		 Taxation
£
-
-
-
-
-
-
(7)		 Transfers
in/out
£
39,660
-
-
(43,357)
-
(3,697)
-		 Gains/
(Losses)
£
-
33,307
474
-
8,689
42,470
266,875		 Balance at
31 August
2021
£
50,526
304,215
4,328
-
79,357
438,426
26,641,006

Page 56

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24. Statement of funds (continued) Group statement of funds - prior year

Unrestricted funds
Designated funds
Designated Funds - all funds
General funds
General Funds - all funds
Total Unrestricted funds		 Balance at
1 September
2019
£
-
26,232,496
26,232,496		 Income
£
(227,551)
12,730,671
12,503,120		 Expenditure
£
-
(12,494,707)
(12,494,707)		 Transfers
in/out
£
227,551
(253,215)
(25,664)		 Gains/
(Losses)
£
-
(24,307)
(24,307)		 Balance at
31 August
2020
£
-
26,190,938
26,190,938

Page 57

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24. Statement of funds (continued)

Restricted funds
Peter Daley Fund
Birch Legacy for Scholarships
Black Legacy for Scholarships
Foundation
Other Funds
Total of funds		 Balance at
1 September
2019
£
28,655
271,115
3,857
20,925
70,721
395,273
26,627,769		 Income
£
-
3,838
55
83,547
1,001
88,441
12,591,561		 Expenditure
£
(12,092)
(1,538)
(22)
(87,393)
(401)
(101,446)
(12,596,153)		 Transfers
in/out
£
20,211
-
-
5,453
-
25,664
-		 Gains/
(Losses)
£
-
(4,562)
(65)
-
(1,190)
(5,817)
(30,124)		 Balance at
31 August
2020
£
36,774
268,853
3,825
22,532
70,131
402,115
26,593,053

Page 58

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

25. Group summary of funds Group summary of funds - current year

Designated funds
General funds
Restricted funds
Group summary of funds - prior year
Designated funds
General funds
Restricted funds		 Balance at 1
September
2020
£
-
26,190,938
402,115
26,593,053		 Income
£
(230,748)
12,779,665
127,741
12,676,658
Balance at
1 September
2019
£
-
26,232,496
395,273
26,627,769		 Expenditure
£
-
(12,765,370)
(130,203)
(12,895,573)
Income
£
(227,551)
12,730,671
88,441
12,591,561		 Taxation
£
-
(7)
-
(7)
Expenditure
£
-
(12,494,707)
(101,446)
(12,596,153)		 Transfers
in/out
£
230,748
(227,051)
(3,697)
-
Transfers
in/out
£
227,551
(253,215)
25,664
-		 Gains/
(Losses)
£
-
224,405
42,470
266,875
Gains/
(Losses)
£
-
(24,307)
(5,817)
(30,124)		 Balance at
31 August
2021
£
-
26,202,580
438,426
26,641,006
Balance at
31 August
2020
£
-
26,190,938
402,115
26,593,053

Page 59

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Parent statement of funds

Parent statement of funds – current year

Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year Parent statement of funds – current year
Balance at 1
September
2020		 Income Expenditure Transfers
in/out		 Gains/
(Losses)		 Balance at
31 August
2021
£ £ £ £ £ £
Designated funds
Designated Funds - (230,748) - 230,748 - -
General funds
General Funds 26,257,557 12,760,530 (12,737,483) (230,748) 224,405 26,274,261
26,257,557 12,529,782 (12,737,483) - 224,405 26,274,261
Restricted funds
Peter DaleyFund 36,774 39,660 (25,908) - - 50,526
Birch
Legacy
for
Scholarships		 268,853 3,754 (1,698) - 33,307 304,216
Black
Legacy
for
Scholarships		 3,825 54 (24) - 474 4,329
Other Funds 70,129 45,641 (45,104) - 8,689 79,355
379,581 89,109 (72,734) - 42,470 438,426
Total of funds 26,637,138 12,618,891 (12,810,217) - 266,875 26,712,687

Page 60

RATCLIFFE COLLEGE

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Parent statement of funds – prior year

Balance at Income Expenditure Transfers Gains/ Balance at
1 in/out (Losses) 31 August
September 2020
2019
£ £ £ £ £ £
Designated funds
Designated Funds - (227,551) - 227,551 - -
General funds
General Funds 26,257,739 12,705,964 (12,454,288) (227,551) (24,307) 26,257,557
26,257,739 12,478,413 (12,454,288) - (24,307) 26,257,557
Restricted funds
Peter Daley Fund 28,655 20,211 (12,092) - - 36,774
Birch Legacy for 271,115 3,838 (1,538) - (4,562) 268,853
Scholarships
Black Legacy for 3,857 55 (22) - (65) 3,825
Scholarships
Other Funds 70,720 64,336 (63,737) - (1,190) 70,129
374,347 88,440 (77,389) - (5,817) 379,581
Total of funds 26,632,086 12,566,853 (12,531,677) - (30,124) 26,637,138

Page 61

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

27. Analysis of group net assets between funds

Analysis of group net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
26,202,691
Fixed asset investments
1,735,768
Investment property
820,000
Current assets
5,462,439
Creditors due within one year
(3,780,939)
Creditors due in more than one year
(4,237,379)
Total
26,202,580
Analysis of group net assets between funds - prior year
Unrestricted
funds
2020
£
Tangible fixed assets
26,270,213
Fixed asset investments
1,511,376
Investment property
1,690,000
Current assets
2,765,212
Creditors due within one year
(3,824,871)
Creditors due in more than one year
(2,220,992)
Total
26,190,938		 Restricted
funds
2021
£
-
247,899
-
190,527
-
-
438,426
Restricted
funds
2020
£
-
207,595
-
194,520
-
-
402,115		 Total
funds
2021
£
26,202,691
1,983,667
820,000
5,652,966
(3,780,939)
(4,237,379)
26,641,006
Total
funds
2020
£
26,270,213
1,718,971
1,690,000
2,959,732
(3,824,871)
(2,220,992)
26,593,053

Revaluation Reserve

Included within the general fund is £193,000 (2020: £193,000) made up of the aggregate surplus on remeasurement of investment properties.

Page 62

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

28. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Gains)/Losses on the sale of investment property
(Gains)/Losses on investments
Dividends, interests and rents from investments
Finance costs
Decrease in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Net cash provided by operating activities		 Group
2021
£
47,953
967,773
(35,887)
(266,875)
(60,593)
85,020
(11,539)
(80,927)
(281,189)
363,736		 Group
2020
£
(34,716)
951,955
-
30,124
(82,474)
76,667
23,710
386,742
(786,729)
565,279

29. Analysis of cash and cash equivalents

Cash in hand
Cash held for investment
Total cash and cash equivalents		 Group
2021
£
4,916,187
8,828
4,925,015		 Group
2020
£
2,315,418
6,001
2,321,419

Page 63

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

30. Analysis of changes in net debt

At 1
September At 31
2020 Cash flows August 2021
£ £ £
Cash at bank and in hand 2,315,418 2,600,769 4,916,187
Debt due within 1 year (217,663) (234,539) (452,202)
Debt due after 1 year (2,220,992) (2,016,387) (4,237,379)
(123,237) 349,843 226,606
31. Capital commitments
Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Contracted for but not provided in these
financial statements
Acquisition of tangible fixed assets - 96,185 - 96,185
32. Operating lease commitments
At 31 August 2021 the Group and the Company had commitments to make future minimum lease
payments under non-cancellable operating leases as follows:
Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
9,989
410,260
420,249		 Group
2020
£
816
245,385
246,201		 Company
2021
£
9,989
410,260
420,249		 Company
2020
£
816
245,385
246,201

Page 64

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

33. Trustees' benefits: advances, credit and guarantees

No remuneration or benefits were provided by the Charity to any Trustee or Governor during the year, other than the Charity purchasing Trustees indemnity insurance at a premium of £4,615 (2020: £4,469).

Travel expenses to and from meetings of £1,145 (2020: £147) were reimbursed to Trustees during the year.

Nil (2020: Nil) Trustees are accruing pension arrangements.

The total amount of employee benefits received by key management personnel for the School is £903,922 (2020: £726,626) and the Group is £1,000,131 (2020: £820,935). The Charity considers its key management personnel to consist of the Senior Leadership Team.

34. Principal subsidiaries

The following were subsidiary undertakings of the Company:

Names Company Charity Principal activity Holding
number registration
number
Ratcliffe Enterprises Limited 02707219 Provision of summer 100%
school and
conference facilities
for organisations and
individuals using the
facilities of Ratcliffe
College, along with
the college tuck shop
and school shops
Ratcliffe College Foundation 07709065 1144450 To raise funds for the 100%
College
The financial results of the subsidiaries for the year were:
Names Income Expenditure
Profit/(Loss)		 Net assets
£ £
/ Surplus/		 £
(Deficit) for
the year
£
Ratcliffe Enterprises Limited 33,252 37,392
(4,140)		 (4,125)
Ratcliffe College Foundation 178,039 200,572
(22,533)		 -

Page 65

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

34. Principal subsidiaries (continued)

At 31 August 2021, Ratcliffe College Foundation ceased operations and the remaining assets and liabilities of this entity were transferred to Ratcliffe College.

As a result of this, the accruals in the parent only balance sheet have been increased by £7,746 and the other debtors in the parent only balance sheet have been increased by £501 in the year ended 31 August 2021.

35. Related party transactions

The Institute of Charity (Charity number: 222508) and Grace Dieu Manor School (Charity Number: 1115976) are considered to be connected to the main Charity because they have:

1) Common, parallel or related objects and activities; and 2) common control.

During the year a donation of £142,840 (2020: £127,837) was paid to The Institute of Charity.

Also paid to The Institute of Charity during the year was a contribution towards costs in relation to Father President, this totalled £21,489 (2020: £24,642).

During the year end 2010 the Ratcliffe College Pension and Life Assurance Scheme was closed at a total cost of £713,950. Of this £428,517 was paid using the assets of the Scheme and the remaining £285,433 was due from Ratcliffe College (56%) and Grace Dieu Manor School (44%). The Charity made a loan to Grace Dieu Manor School to enable their contribution to be paid. This loan carries a rate of interest 3% above the base rate and is repayable over 10 years. Interest receivable in the year was £nil (2020: £nil) and the balance at 31 August 2021 is £nil (2020: £nil). The balance of the loan still outstanding was £22,985 at the year-end but the Trustees did not consider the loan to be recoverable and have therefore included the £22,985 loan in the bad debt provision, writing off the debt to the SOFA during the prior year.

During the year donations of £55,083 (2020: £89,000) were paid to Ratcliffe College Foundation to fund general charitable expenditure. Also during the year £98,441 (2020: £83,547) was received from Ratcliffe College Foundation for enhancement and further development of the school.

A donation under Gift Aid of £nil was made to Ratcliffe College by Ratcliffe Enterprises Limited (2020: £42,307) and income of £15,605 (2020: £27,357) was received in respect of various expense recharges. £17,210 (2020: £35,724) was paid to Ratcliffe Enterprises Limited for shop items.

Purchases of £nil (2020: £1,889) were made in the year from Grace Dieu Manor School. There is a £nil amount (2020: £nil) included within creditors at the year end.

During the 2018 year, Ratcliffe College made a significant transfer of £250,000 to The Institute of Charity. Further amounts of £124,160 were loaned to The Institute of Charity during the year, taking the outstanding balance owed to the college to £374,160 at the year-end. A provision of £100,000 has been recognised against the outstanding balance at the year-end as there is uncertainty regarding whether the full outstanding debtor balance is recoverable.

Ratcliffe College also made purchases during the year of £117 (2020: £517) from The Institute of Charity. In addition, Ratcliffe College covered the costs of the Rosmini Centre and church of £41,288 for The Institute of Charity during the year (2020: £44,934).

Page 66

RATCLIFFE COLLEGE (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

36. Events after the reporting date

Two significant events occurred after the year-end.

Since the financial reporting date, construction work started for a new £2.35m English Language Centre. Ratcliffe College obtained an additional bank loan of up to £2m to finance the construction work.

The other significant event after the reporting date relates to the early repayment of the School's £1.5m loan under the Coronavirus Business Interruption Loan Scheme (CBILS). This was repaid in December 2021.

Page 67