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2020-08-31-accounts

Registered in England and Wales Charity Number: 1120654 Company Number: 5977683

The Perse School

A Charitable Company Limited by Guarantee

Annual Report

and

Consolidated Financial Statements

For the year ended 31 August 2020

THE PERSE SCHOOL Annual Report and Consolidated Financial Statements For the year ended 31 August 2020

Index

Page Contents
iS} General Information
5 Trustees’ Report incorporating the Strategic Report
27 Independent Auditor's Report
30 Consolidated Statement of Financial Activities
31 Balance Sheets
32 Consolidated Cash Flow Statement and notes
33 Accounting Policies
37 NotestotheConsolidatedFinancialStatements

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THE PERSE SCHOOL General Information For the year ended 31 August 2020

A Charitable Company limited by Guarantee

Company number 5977683

Registered Charity Number 1120654

Principal address & registered office

The Perse School, Hills Road, Cambridge, CB2 8QF

Trustees and Governors

Nominated by Trinity College Cambridge:

LA Merrett MA PhD

Nominated by Gonville & Caius College Cambridge:

K-C Lin BA MA PhD (from 1 September 2019)

AD Oliver MA MPhil PhD LittD (from 1 September 2019)

Co-opted:

H Bettinson MA PhD

K Davies MA FCA

WMR Dawkins BA

S Freestone DL MEd GRSM LRAM ARCM (from 1 September 2019)

SW Graves BSc MBA (OP)

CP Hancock MA LLM QC (OP)

SD Lebus MA

RC StH Mason BSc MBBS MRCP MBA

GJ Proudfoot MA

SC Roberts MA

JW Scott MA - Chair from 1 September 2019

S A Shakir-Khalil MA (from 7 September 2020)

DM Shave MA MBACP

BP Smith MA CPFA FCIHT (until 31 August 2020)

SL Steele CTA

CJ Stenner LLB - Vice Chair

D Williams MB Bch FRCP FRPCH

(OP) = Old Persean

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THE PERSE SCHOOL General Information For the year ended 31 August 2020

Personnel and Professional Advisors

Clerk to the Governors and Company Secretary

GA Ellison MA

Heads and Bursar

EC Elliott MA Head

JWS Piper BA

Head ofthe[Perse][Preparatory] School

SC Waddington BSc MA Head of the Perse Pelican Nursery and Pre-preparatory School

A Shakespeare MA FCA Bursar

RSM UK Audit LLP

Registered Auditor

Abbotsgate House Hollow Road

Bury St Edmunds Suffolk, IP32 7FA

Lloyds Bank plc Barclays Bank plc HSBC Bank plc Coutts & Co

Bankers

Santander UK plc

Farrer & Co, London

Solicitors

Ashtons Legal, Cambridge Veale Wasborough Vizards, Bristol

Cazenove Capital Management

Investment Managers

12 Moorgate

London EC2R 6DA

The Perse School’s subsidiary companies are as follows:

Company reg.no

The Perse School Trading Company Limited (dormant)

09636505

The Perse School Cambridge International Limited

11149877

Website address:

www.perse.co.uk

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THE PERSE SCHOOL Trustees’ Report For the year ended 31 August 2020

The trustees present their report, including their Strategic Report, and the consolidated financial statements for the year ended 31 August 2020. The financial statements have been prepared on the basis of the accounting policies set out on pages 33 to 36 of the financial statements and comply with the charity’s scheme and applicable law.

OBJECTS AND POLICIES

The Perse School is a charitable company limited by guarantee and not having a share capital that is governed by Memorandum and Articles of Association dated 23 October 2006 as amended by special resolutions dated 13 March 2008, 10 December 2009, 26 June 2014 and 6 August 2014.

The School was founded as a charity by the will of Dr Stephen Perse in 1615.

The object of the charity, as set out in its Memorandum of Association, is the advancement of education by the provision and conduct of the School known as the Perse School Cambridge together with any of its affiliated or subsidiary Schools (howsoever the same shall from time to time be known) and by ancillary or incidental educational activities and any other associated activities for the benefit of the community as a whole.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Group Structure

On 1 September 2007 the School, having until then been an unincorporated charity, became a charitable company limited by guarantee. The endowment assets at this date remained within the unincorporated charity, renamed The Perse School Endowment (registration number 1120654-1), with the charitable company acting as its trustee.

The Group during the year comprised The Perse School and two wholly owned subsidiaries:

Governing Board

The Perse Upper School (the Upper), the Perse Prep Schoo! (the Prep) and the Perse Pelican Nursery and PrePreparatory School (the Pelican) (the three of which are known collectively as The Perse School) have a single Governing Board composed of the trustees, who are also the directors of the charitable company. A list of trustees is set out on page 3 of this Report.

The School's Articles of Association empower it to have twenty trustees (who are the directors and governors of the Charity and also its members). Three of the trustees are nominated - two are nominated by the Council of Gonville and Caius College and one by the Council of Trinity College. The seventeen other trustees are co-opted by the Board.

All trustees are appointed for a term of three years and may thereafter be reappointed for two further terms each of three years. In exceptional circumstances, a trustee who has served three consecutive terms in office may be reappointed for further periods.

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THE PERSE SCHOOL Trustees’ Report For the year ended 31 August 2020

During the year there were five Governing Board committees that dealt with matters concerning all three schools:

Meeting termly:

Meeting annually:

Other committees, groups and panels are formed for specific purposes and meet as the need arises, currently:

All committees report to the Governing Board in line with their terms of reference.

In addition, some governors are also board directors of The Perse School Cambridge International.

Recruitment and appointment of new trustees

The School’s Nominations and Governance Committee is appointed by the Governing Board and its terms of reference require it to:

All new trustees receive a comprehensive information pack giving them information about the School, its governance, management, and policies. A trustees’ handbook is issued to all trustees annually with updates being available throughout the year on the trustees’ portal.

All new trustees meet the Chairman or Vice-chairman of the Governing Board as part of the appointment process. They also meet the Head and the Bursar and the Clerk, and have a tour of the School (wherever possible) before attending their first meeting of the Governing Board.

The School has hosted, and encourages trustees to attend, seminars organised by the Association of Governing Bodies of Independent Schools (AGBIS).

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THE PERSE SCHOOL Trustees’ Report For the year ended 31 August 2020

The School circulates trustees with the details of other courses and seminars run by AGBIS and by professional firms providing services to charities and education. The School also runs its own updates for governors and holds annual strategy seminars with governors, senior Perse staff and external speakers as well as seminars, again using external speakers, looking at topics such as future challenges to the charitable status and wider legal position of independent schools, digital technology and its effect on teaching and learning and public benefit and community links. Briefings by senior management to committees and the Board ensure relevant governors are kept abreast of new legislation and the external auditor annually updates the Audit & Risk Committee and, through that Committee, the Finance and General Purposes Committee with accounting matters which may affect the Group.

Regular surveys are undertaken in order to identify the training needs of individual trustees.

Governor involvement in School life

The governors help guide, shape and support specific aspects of the School’s life through the various committees and the training and strategy sessions detailed above. Key School policies are approved on an annual cycle by the Full Board and all governors are regularly updated on safeguarding and have access to the School’s Designated Safeguarding Lead. The Governor with Special Interest in Safeguarding with emphasis on Safer Recruitment and Child Protection meets termly with the safeguarding teams and carries out an annual review of the Single Central Register. The Staff Liaison Governor meets all new staff and carries out termly meetings with departments on a rolling basis.

Governors attend School sporting events and productions, and sample lessons via learning walks.

Organisational management

The day to day running of the School is delegated to the Head (and through him to the Head of the Perse Prep School and the Head of the Perse Pelican Nursery and Pre-Preparatory School), each with their team of teaching staff and the Bursar and her team of administrative and support staff. The Head and/or Bursar attend all committee and Board meetings. The running of the subsidiary companies is through their boards which report to the Full board via the Finance and General Purposes Committee.

Financial probity is ensured by having suitably qualified individuals on the Finance and General Purposes Committee, the Audit and Risk Committee and the Investment Management Working Group. The Audit & Risk Committee and the Finance and General Purposes Committee receive an annual report from the external auditor and the Finance and General Purposes Committee receives termly reports from the Bursar on the financial position of the School. The Finance and General Purposes Committee reviews and recommends the annual budget to the Full Board and considers the latest management accounts (produced monthly) with any significant variances against budget and an agreed set of Key Performance Indicators. The Bursar considers management accounts produced monthly with variances analysed and explained by the Chief Financial Officer.

The Schools are staffed with paid employees, both full-time and part-time. Parents assist voluntarily with fundraising and some school activities.

Engagement with suppliers, customers and others in a business relationship with the School The School’s supplier and customer engagement, including all policies and contracts are designed to ensurea fair and transparent approach to all business transactions.

The School has in place clear and transparent tariffs for all facilities available for external use and these charges are annually benchmarked against other comparable facilities to ensure they represent fair value.

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THE PERSE SCHOOL Trustees’ Report For the year ended 31 August 2020

The School actively encourages local community and customer engagement in regard to the use, development and expansion of these facilities and services.

During the COVID-19 pandemic frequent dialogue has been maintained with all parties to ensure the reestablishment and safe operation, where possible under current legislation, of these facilities.

The School operates a transparent procurement process through a value based approval structure, therefore ensuring all services and products are assessed under the same best value and risk mitigation criteria.

The School completes regular relationship management meetings with all strategic services suppliers to ensure effective contract management and engagement.

Engagement with employees

The School encourages staff contribution at all levels. The Heads, Bursar and members of the Executive Leadership Team meet regularly with regional forums to share best practice.

The School encourages the involvement of its employees through regular staff meetings that disseminate information of particular concern to employees and through regular staff surveys and staff committees for receiving their views. Termly meetings are held of the Staff Salaries Committee at which any staff concerns can be raised through their elected representatives.

The School intranet also provides information and access to professional development and support, including wellbeing, as well as a weekly staff bulletin.

New staff are fully inducted and both teachers and support staff take part in training both before the start of and during the school year.

The School is committed to ensuring equality of opportunity for all who learn and work here, with one of its key values being ‘valuing one another.’ We respect and value positively difference, including in race, gender, sexual Orientation, ability and age. We strive vigorously to remove conditions which place people at a disadvantage and combat bigotry. During 2019/2020 an Inclusion, Equality and Diversity working group was formed, with representation from students, teachers, parents, support staff, alumni and governors, to consider equality and inclusion and make recommendations to the Executive Leadership Team and the Board of Governors.

The School considers all applications from disabled persons, bearing in mind the aptitudes of the individuals concerned. Where an existing employee becomes disabled, every effort is made to ensure that employment within the School continues. The School’s policy is to provide training, career development and opportunities for promotion, which are, as far as possible, identical to those for other employees.

Statement of trustees’ responsibilities

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

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THE PERSE SCHOOL Trustees’ Report For the year ended 31 August 2020

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to Disclosure on Information to Auditors

The trustees also confirm that, so far as each of the trustees is aware, at the time the report is approved:

CHARITABLE OBJECTS

The object of the charity, as set out in its Memorandum of Association, is the advancement of education by the provision and conduct of the School known as the Perse School Cambridge together with any of its affiliated or subsidiary Schools (howsoever the same shall from time to time be known) and by ancillary or incidental educational activities and any other associated activities for the benefit of the community as a whole.

The object of the School is a purpose falling within section 3(1)(b) of the Charities Act 2006, i.e.: the advancement of education. It is a purpose for the public benefit and is therefore a charitable purpose as defined in section 2(1) of the Act.

The Perse School educates boys and girls from age 3 — 18 on three sites; the Pelican (ages 3 — 7), the Prep (ages 7 — 11) and the Upper (ages 11 — 18). Children thus progress through three different schools but have the benefits of being part of one larger institution with an integrated curriculum and pastoral care system.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Vision and values

The Perse School’s vision for the pupils and staff is to love learning and strive for the greater good. To realise this vision, The Perse:

The School endeavours to provide a broad and balanced education appropriate to the needs of each pupil in order to cater for the full development of their varied talents and to achieve high academic standards leading, from the Upper School, to university entry, as well as to achievements throughout the schools in cultural, sporting and other fields. The School aims to ensure an academically selective entry from the widest possible social spectrum, thereby preserving its tradition of breadth of access and continuing to meet public benefit requirements.

A common set of values has been agreed which define the behaviour expected of[all][Perse][students][and][staff.][These] values are shown on the following page:

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

PUBLIC BENEFIT

The trustees confirm that they have given regard to the Charity Commission’s guidance on public benefit. The objects of the School are for the ‘public benefit’ as that term is used in the Charities Act 2011 for the following reasons:

Provision of benefit to public in general

Children eligible for admission as pupils of the School form a public rather than a private group for the following reasons:

  1. The group of potential beneficiaries described in the objects of the School represent a sizable number of individuals. The School’s catchment area has a school age population of some 230,000. This group constitutes a broad and significant section of the public.

  2. There is no personal or contractual link or characteristic which potential beneficiaries must share in order to be eligible for admission as a pupil of the School.

  3. The objects of the School are open and inclusionary. No person in poverty is excluded by the objects from eligibility for admission as a pupil of the School. The School carries out its objects in this regard through the breadth of its access and its bursary provision.

Selection policy and bursary awards

The School aims to ensure an academically selective entry from the widest possible social spectrum. To further that aim, the School offers means-tested bursaries from its own resources and through the generosity of gifts from a number of benefactors. The School is actively seeking further benefactions and support for its bursary scheme so that it may continue to meet bursary demand.

Some 115 children within the School benefited from some kind of means-tested bursary award in the 2019/20 academic year, receiving awards which equate to 76.95 full fee paying places. The total value of these awards in the 2019/20 academic year was £1,292k (2018/19: £1,312k).

Increases in bursary provision since 2010/11 as the School headed through a period of expansion towards steady state and which demonstrate the benefits and effectiveness of the School’s bursary development plan, can be seen in the graph below. Bursaries have more than doubled in value over this period but it should be noted that this period does not fully reflect the effect of COVID-19 on hardship bursaries awarded from 2020/21.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Bursaries are funded by a mixture of restricted and unrestricted funds. All bursaries are re-assessed annually by means of a detailed means-testing system. Awards made range from 5% of fees up to full fee bursaries. Bursaries are also made available to cover costs of extras such as key school trips and lunches.

Carbon and Energy Reporting

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, The Perse School has been engaged in a process aimed at reducing its energy and greenhouse gas emissions.

The Perse School currently maintains both scope 1 and 2 emissions, which are generated from the school premises and transport, respectively. The School maintains emissions from a range of transport including minibuses and “grey fleet” (personal cars used for business purposes).

The Perse School is currently devising a strategy to reduce its carbon footprint significantly including:

The Perse School has a longstanding commitment to tackling climate change. Its calculated carbon footprint for the current financial year is 725.62 tCO2e, whilst energy consumption was 3,341,751.53 kWh (3,341 MWh).

Methodology:

The School has reported all of its emission sources under the Companies Act 2006 (Strategic Report and Director’s Reports) Regulations 2013 as required. The School has calculated and reported its emissions in line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2020 (reference “Introduction guidance”).

The reporting period is the financial year 2019/2020, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary.

2019/2020 Emissions

Scope 1 (natural gas/transport) Tonnes CO2 equivalent (tCO2e)
403.98
Scope2 (electricity) TonnesCO2 equivalent (tCO2e)
319.96
Scope3 (“grey fleet” transport) TonnesCO2 equivalent (tCO2e)
1.68
Total 725.62tCO2e

Scope one (1), two (2) and here (3) carbon intensity metric = 0.441 tCO2e per pupil taught (1,645) during the financial year.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Total Emissions

Efficiency Measures Taken:

Objectives for 2020/2021:

The Perse School will report on progress within the next set of financial accounts.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

STRATEGIC REPORT

ACHIEVEMENT AND PERFORMANCE

PROVISION OF BENEFICIAL PURPOSE

The School provides the following demonstrable benefits, all of which flow, directly or indirectly, from the School’s charitable purpose to advance education:

The School provides a high quality education to 1,645 pupils (2018/19: 1,624)

The School educates 1,645 pupils thereby relieving pressure on local schools which would otherwise need to find additional places for these pupils and provides a financial benefit to the State at no cost to the taxpayer (other than the value of the fiscal benefits of charitable status). Using estimates of the average annual cost to the taxpayer of a place at a state school, the School saves the State over £10m each year.

The last Independent Schools Inspectorate (ISI) inspection took place in 2019. This was a compliance only inspection for which the School met all of the required standards.

The last educational quality and compliance inspection took place in 2016. The inspectors concluded that the School offers an outstanding education and for every key inspection criteria the School received the highest possible grading of excellent or exceptional. This followed on from a clean sweep of top grades in the 2010 inspection.

The full reports are available on the School’s website: www.perse.co.uk

Academic results

Examination results continue to be among the most successful in the country. For the twelfth year in succession, more than three-quarters of A Level entries were graded at either A* or A.

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% Cumulative % | Cumulative% | Cumulative %
A A-A A-B A-C
[Perse | S| CT
This table also includes Pre-U equivalent grades using the standard D1/D2=A, D3/M1=A, M2=B, M3=C
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The Times placed the School top of the league table of independent co-educational schools’ A-level results in 2019.

At GCSE/IGCSE, 87% of entries were graded 9 or 8 (broadly equivalent to the old A grade) and 97% of entries were graded 9 — 7 (equivalent to A - A).

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Cumulative % | Cumulative % | Cumulative % | Cumulative %
A A B C
[Perse(% cumulative) | |||0
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Nearly all Perse students choose to proceed to university. Details of the university destinations for 2019/20 can be found in on page 122 of The Perse School Annual Review available on the School website.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Students also took Trinity, Rockschool and ABRSM exams.

The School’s core values are embedded in its curricular and extra-curricular provision.

Many Perse students pursued opportunities to broaden their knowledge and test their skills against peers elsewhere, including:

Students’ work has also been published in the New England Journal of Medicine and the 2020 edition of Contemporary Aesthetics and a student’s short film clip was shown at the Duemila30 festival in Milan.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Perse students have had another successful year in sport with the Perse sport department listed in the top 20 in School Sport magazine’s leading independent sports schools list in 2019. Perse teams were amongst County Champions, East champions and National Cup quarter-finalists in hockey and also finalists at the National Super 6s in indoor hockey; National School Cup finalists in rugby; regional finalists in the National Schools Netball Competition; runners-up in the regional finals of the LTA Schools Team Tennis Championship; County finalists of the Lady Taverners indoor competition in Girls’ cricket; County Champions and East Central finalists, winners in the Cambridge and District Championships, Bedfordia Championships, Cambridgeshire Schools Championships and the South-East England Independent Schools Championships in cross country; Gold winner in the National Junior Indoor Rowing Championships and bronze in the Mizuno British Rowing Indoor Championships; winners in the British Schools Small-bore Rifle Association; and finalists in the Independent Schools Golf Association.

In addition to academic achievements, Perse pupils participate in many extra-curricular areas which help develop a broad range of skills and qualities, including a comprehensive drama provision with performances of The Addams Family (musical), Plays You Won’t Have Heard Of, Saved By The Bell, Chaos and Education, Education, Education, and Outdoor Pursuits activities.

The outbreak of COVID-19 in the early part of 2020 and the closure of the School site to all years with the exception of keyworker and vulnerable children in the summer term saw teaching and learning, pastoral care and extracurricular activities moving online in a switch to digital education. The School remained open (including throughout the Easter holiday) to vulnerable and keyworker children.

The School adapted to the challenges and opportunities of home learning with a variety of online tools — in addition to the core curriculum, assemblies, music performances (including the Big Three Project) and drama productions (including The Tempest) moved online. Home study provided new opportunities for independent learning and creativity, particularly inhouse events, and a full review of all the School’s activities is included in the School’s Annual Review available on the School website.

The School provides broader benefits to children, the local community and society

Valuing and supporting one another is one of the cornerstones of a Perse education and, with the School’s commitment to its charitable purposes, the belief in community extends well beyond the school gates.

Primary Partnership is a scheme started in 2008/09 to develop relationships with local primary schools and to provide access for them to the School’s specialist facilities and teaching. The scheme has steadily expanded, and in 2019/20, teachers and more than 200 students worked with over 20 primary schools, delivering a wide range of enrichment programmes. Each primary school specifies the support they would like — from one-to-one maths sessions and coding workshops, to helping children for whom English is a second language and teaching Spanish, French and Latin.

The School also supports a local sixth form college in their UCAS process, specifically with preparation interviews led by subject specialists from the School. These interviews were hosted on-line in 2019/20 which reflected the setting for university admissions interviews. This partnership will be extended in future years to develop alumni as mentors. The Economics department has also assisted another sixth form college with the setting up of their own sixth form department, sharing experience and best practice.

Sixth form students help pensioners with the skills needed to use the latest technology as part of the Digistart programme, assisting with mobile phones, Skype and online shopping.

In 2017, the Perse School launched an annual coding competition, open nationwide to pupils in Years 7 to 11. Pupils compete to win the Braben Cup, sponsored by Dr David Braben OBE. The challenge is free to enter with prizes for

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

the top three teams. In 2019/20 around 3,000 pupils from schools at home and abroad took part. Local schools also competed in the annual Perse Science Quiz.

Community lectures are held each term and in 2019/20 Bridget Kendall OBE spoke on The Roller Coaster Ride of Anglo-Russian Relations, and Professor Beverley Glover spoke on The Cambridge University Botanic Garden: A Unique Role in Addressing Global Challenges. The Annual Josef Behrmann Lecture was delivered by Dr Andrew Sawczenko and Rev Patrick Moriarity on ‘Standing Together’.

Community use of the School — particularly the Sports Centre and the Music School — has continued to be promoted and to be successful. The Sports Centre, which is heavily used by the School itself, hosts many hours a week use by the local community and is the home to a number of local clubs, groups and societies which have a concentration on youth training and development.

The School also hosts events for local organisations such as The Sick Children’s Trust and the Addenbrooke’s Neonatal Intensive Care Unit.

In 2011 The Perse School formed a partnership with Christel House Schools, a charity that transforms children’s lives by building and running learning centres in some of the world’s most deprived communities. The charity was set up in 1998 by Christel De Haan with support from the late Ron Haylock (former Perse pupil), and today has seven learning centres in four countries helping over 4,500 children. The Perse School supports Christel House by sending its teachers and students to Christel House to share expertise and experiences; raising funds; participating in joint educational projects; and by one of its teachers being a trustee of Christel House Europe.

The Perse has been further expanding its work with Blutick, an online maths programme that uses artificial intelligence to give feedback to students as they work through the maths curriculum for 11 — 16 year olds. When the COVID-19 lockdown was announced, Blutick was made available free of charge to the world in response to school closures and has 80,000 users answering 2.5 million questions. Blutick have linked with Cambridge Assessment International Education to run professional development sessions for their China region and for their south Asia region. Blutick have presented to the Singapore Ministry of Education and to Save The Children in Indonesia. Blutick is also used in Christel House Bangalore and Raipur.

In 2018 The Perse became the first school to launch an initiative to assist Missing Maps — a scheme which helps non-government organisations such as Medecins Sans Frontieres and the Red Cross deliver aid more effectively by mapping previously unmapped communities.

Students, staff and parents worked together to support a number of charities, both local and international through a series of activities including non-uniform days and sponsored events. Each year the School supports Link to Hope, a charity that sends shoeboxes filled with Christmas gifts to families and elderly people in Eastern Europe. During Random Acts of Kindness week the Student Council arranged a variety of activities designed to help pupils show kindness within the School, the local community and internationally as well as being kind to themselves. Food and clothing were donated by students, parents and staff throughout the week to support Cambridge Food Bank and Romsey Mill, a local charity helping children, young people and families.

During the lockdown period individual pupils raised money on their own initiatives, helped within the community and Perse DT staff produced more than 1,000 face shields to protect healthcare workers. The annual Sleep out event, which raises funds for Emmaus, usually takes place at the Upper School but this year pupils slept outside in their gardens in makeshift shelters.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

The Perse Summer School is open to young people aged 7 — 15 from the local area with a range of academic, creative and performing arts, sport and outdoor pursuits, and technology and computing options. A reduced offering was made in summer 2020 to ensure compliance with the government COVID-19 guidelines.

The Music department hosts a range of community rehearsals and events.

Perse staff hold leadership or advisory roles in an array of aspects of education, from curriculum reform to student skills for university, and support young people from all walks of life in many different ways, including:

Investment in staff and staff welfare

The trustees are aware that the quality and range of the education that the School offers can only be maintained at a high level of excellence by continual investment in staff, equipment and buildings. The trustees pay tribute to the dedication and commitment of all the staff — teaching and support staff — who together contribute to this community of learning.

The School encourages the involvement of its employees through regular staff meetings that disseminate information of particular concern to employees, and through staff surveys and staff committees for receiving their views. Termly meetings are held of the Staff Salaries Committee at which any staff concerns can be raised through their elected representatives.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

The School recognises its responsibilities under the Equality Act 2010 and supports the principle of equal opportunities and opposes discrimination based on any protected characteristic. Being a committed equl opportunities employer, the School will take every possible step to ensure that employees and prospective employees are treated equally and fairly.

The valuable contribution of supporters

The trustees continue to recognise with gratitude the support received by the School — at all educational stages — from the Parents’ Associations and from individual contributions of finance, time and expertise.

Continued investment in infrastructure

Significant building works, both to accommodate increased pupil numbers and to improve facilities, have been a feature of the School over the past ten years. All building works have been consistent with pupil numbers and the School’s Development Plan.

In 2019/20 the School completed a significant extension to its Music block, providing further practice and storage space and investing in additional pianos and other instruments. Work commenced ona new mezzanine floor within the main school building, to provide additional dining and meeting spaces.

The School remains committed to providing appropriate facilities for current and future pupils and staff, and regularly reviews the masterplans for its sites alongside investing in existing buildings.

Expansion outside the UK

The School recognises the importance of developing sources of revenue other than tuition fees to help fund the capital programme, its bursary scheme and its outreach work.

The Perse School Singapore opened in January 2020 for pupils aged 6 —- 11. The campus is at Upper Bukit Timah, a residential area in Singapore, and close to Bukit Timah nature reserve. Pupils engage in a broad and innovative curriculum that closely follows the Cambridge Primary Programme, incorporating Singapore Maths and Mandarin as a second language. Blending innovation and tradition, the school will use the most up-to-date educational technologies in the classroom to prepare pupils for a global future. The four core values of the Perse — intellectual curiosity and scholarship, endeavour, breadth and balance and respect for one another and our environment — form the heart of the school’s ethos.

The Perse School Suzhou is scheduled to open in August 2021 — delayed from August 2020 due to the restrictions of the Coronavirus outbreak. The Founding Principal has taken up post in Suzhou — an historic city of canals and waterways 100km from Shanghai. The Perse School Suzhou will be situated in the core of the city in Gusu District and will be co-educational. It will focus on the Cambridge IGCSE and IA level and other international qualifications plus additions from the Perse’s own curriculum. It will prepare Chinese students for international universities.

The partnerships between these two schools and The Perse Schoo! Cambridge International Limited will give Perse Cambridge students greater international exposure and will provide opportunities for exchange programmes and visits. They will also provide an income stream to The Perse School Cambridge International Limited.

Section 172 Statement

In accordance with Section 172 of the Companies Act 2006, the Directors (who form the Board of Trustees) complied with their duty to promote the success of the Schoo] through their approval of the School’s Development Plan and on-going review of performance against this. All decisions are made in line with the School’s Development

20

THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Plan, capital Master Plan and cash flow forecasts, with the long-term interests of the charity and its stakeholders in mind.

Culture, and employee welfare and engagement are important to Trustees. As detailed above, the School has a structure of regular staff meetings, staff committees and working groups and a variety of tools to promote wellbeing available to all staff. As a School, it already supports flexible working practices.

Trustees understand the importance of maintaining productive relationships within stakeholders, underlined by a strong sense of purpose. Members ofthe Trustees’ sub committees and member of the Executive Leadership Team proactively collaborate with a variety of stakeholders within the education sector to share knowledge and learnings as appropriate.

Trustees are mindful of the School’s impact on the community and environment. The School’s communities, social action and enrichment sit at the heart of everything it does, and this is reflected in its curriculum and in the School’s four core values (see page 11).

As a registered charity, the School is committed to making the biggest difference to its pupils, inside and outside the classroom, regardless of their background. The School’s reputation and business conduct are paramount to its future success and ability to deliver value to its various stakeholders. The School has an experienced Trustee Board who are responsible for ensuring corporate governance best practice is followed, supported by the Audit & Risk Committee, Finance & General Purposes Committee, Education Committee, Nominations & Governance Committee and Strategy Committee.

Promoting the success of the charitable company

The Trustees have established a Code of Conduct within the General Statement of the Responsibilities of Members of the Governing Board which provides a structure for the responsibilities and expectations associated with the role. This key document, aligned to the School’s values, provides trustees with an understanding of what is required and enables them to be transparent, open and accountable in what they do. The Code of Conduct recognises that decisions should be taken in the interests of all stakeholders with the aim of maintaining a reputation for high standards of business conduct. In accordance with section 172 of the Companies Act 2006, each of the Trustees acts in the way he or she considers to be in good faith and which would most likely promote the success of the School and to achieve its charitable purpose. Other areas of the Trustee’s Report also cover how the School fosters relationships with key stakeholders. Please see pages 7 and 8.

RISK MANAGEMENT

The Perse School’s Board of Governors is responsible for the consideration and management of the risks faced by the School and the wider Group.

The principal risks that the Group and the School faces are:

21

THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

The trustees have given consideration to the major risks to which the School is exposed and are content with the management of those risks. In the majority of areas, systems designed to mitigate those risks have been in place for some time. In further reviewing the situation, the trustees continue to extend the systems, and their range, to provide comprehensive cover of the risks as they are identified. The School’s risk management schedule, which includes all of the above risks, is reviewed by the Governing Board and by its Finance & General Purposes Committee and its Audit and Risk Committee. The Governing Board’s committees’ terms of reference reflect the risk management monitoring roles of each committee.

The trustees also look annually at the School’s performance by comparison to benchmarking reports on the independent school sector produced by independent professional firms.

Each of the three schools has a Crisis Preparation and Response Manual which includes a Disaster Recovery/Business Continuity Plan which are reviewed annually and supported by external consultants.

The School regularly uses external consultants to review the effectiveness of different areas of the School’s operations and to advise on external factors that might affect the School.

During the year, the School again used external consultants to review its management of Health & Safety, and to carry out reviews of ICT and data protection. The trustees’ Audit & Risk Committee meets termly and acts as a further check and balance on both the management and the governance of the School.

22

THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

The Group’s accounts include the results of the year’s financial activities for The Perse School and its two wholly owned subsidiaries.

Fundraising activities

The School raises funds for its projects through the Alumni and Development Office (ADO). The ADO fundraises from former pupils, parents and friends; it does not seek to raise funds from the general public as it focuses on developing lasting relationships with those who have an existing connection with the School. The ADO team organise alumni activities, run fundraising events and raise funds through the annual Sixth Form leavers’ gift, Enduring Gift and legacy appeals. The details of the fundraising approach are set out in the School’s Fundraising and Donation Acceptance Code which is reviewed annually by the Trustees and is available on the School’s website.

The Perse is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice, which is the document underlying the School’s own Fundraising and Donation Acceptance Code. By adhering to the School’s Fundraising and Donation Acceptance Code any volunteer acting on the School’s behalf commits to adhering to the Code of Fundraising Practice. During 2019/20 the School complied with fundraising standards. Complaints relating to fundraising activities are raised with the Business Development Director or the Bursar. The School aims to resolve any informal complaint within 15 working days of receipt. There were no complaints during 2019/20.

An Enduring Gift campaign was the focus of the ADO’s work in 2019/20 and is the campaign which marked the School’s 400" anniversary in 2015/16. £337k was given to the campaign during 2019/20.

The School also continued to benefit from contributions into the Annual Fund in the form of regular donations from current and past parents, Old Perseans and friends of the School.

Investment in staff

The trustees are keen to attract and retain the best teaching and key support staff and set salaries and other terms of remuneration in order to try to achieve this. The remuneration of key management personnel is set by the Governors’ Senior Staff Salaries Committee which comprises the Chair, the Vice-chair, the Chair of the Finance & General Purposes Committee and the Staff Liaison Governor.

Investment in facilities

The trustees are aware that the quality and range of the education that the School offers can only be maintained at a high level of excellence by continual investment not only in staff but also in equipment and buildings. In 2019/20 the School completed its £1.3million extension to the Music block and started work on the new mezzanine floor in the Old Gym, aimed at improving the catering and dining facilities and providing additional meeting and learning spaces.

The School has also continued its investment in the ICT infrastructure to support and enhance digital learning both on site and for remote learning.

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THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

Financial outcome

Income

Tuition fee income continues to be the principal funding source for the group. During the 2019/20 academic year the number of pupils in the School was 1,645, with 1,204 pupils in the Upper School (2018/19: 1,181); in the Prep 284 (2018/19: 284) and the Pelican 157 (2018/19: 159). Tuition fee increases were 3.95% for all three schools (2018/19 3.95% for all three schools).

The outbreak of COVID-19 in the early part of 2020 and the closure of the School site to all years with the exception of keyworker and vulnerable children in the summer term has had an impact on the income for the year. Where the School was able to achieve savings in areas such as catering, transport, sport and extra-curricular activities, these savings were passed on in the form of a reduction applied to the Summer term fee. No charge was made for activities (such as outdoor pursuits) or lunches not provided on site.

In response to the pandemic the Perse also increased its hardship bursary funding by making available money raised from donors as part of the Enduring Gift fundraising campaign. Families with children at the Pelican, Prep and Upper were eligible to apply for means tested assistance if they were suffering from financial distress and experiencing difficulties paying the termly fees as a result of the COVID-19 pandemic.

Other areas of income were also affected, such as lettings, after school clubs and late stay charges but the School was able to run a reduced Summer School and Club Pelican during the summer break in accordance with government COVID-19 guidance.

Legacies and donations continue to be a most welcome and significant part of the School’s income and totalled £413k during the year (2018/19: £560k). During the year the School received £479k from the Coronavirus Job Retention Scheme.

Expenditure

Staff costs continue to be the largest area of the School’s expenditure, reflecting the continuing investment required to support the School.

Teaching staff continued to work through the period of partial site closure by providing digital education and remote pastoral care, and by looking after key worker and vulnerable children on site. The School benefited from the Coronavirus Job Retention Scheme in furloughing those support staff who were unable to work remotely and this also contributed to the reduction in costs passed on to parents.

The School delivered its planned ICT programme in full, spending £693k (excluding staff costs) but postponed some non-essential estates works until 2020/21.

Surplus

The overall surplus for the group for the year was £3,796k (2018/19: £3,978k). This figure, which is inclusive of fundraising, is consistent with the School’s strategic and development plans. With capital expenditure of £48m over the past 12 years, the surplus is required to meet the costs of the School’s investment in its plant and buildings and to pay back bank borrowings taken out to fund that investment.

Reserves

The general reserves held by the School principally represent the tangible fixed assets, largely comprising by value the land, buildings and equipment of the three schools — each on its own site. Unrestricted funds total £52,087k (2019: £48,533k) and the other unrestricted reserves consist of three designated funds to provide bursaries and

24

THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

scholarships totalling £3,169k (2019: £3,091k) and one designated fund for those donations into An Enduring Gift campaign which have not been given for a specific purpose totalling £605k (2019: £528k).

In the current economic climate, the trustees expect only modest levels of income receivable from the underlying investments in the medium-term; consequently the trustees will continue to give consideration to an increase in the level of these funds, and also seek alternative ways of obtaining future funding of bursaries and scholarships. One ofthe main focuses[of] An Enduring[Gift] Campaign[is][ the][ joint] establishment[of][ a] permanent[bursaries] fund and the funding of current bursaries (depending on donor wishes), alongside donations towards the School’s outreach programme.

The unrestricted funds, being largely represented by the School’s land, buildings and equipment, are not liquid assets.

The restricted and endowed funds held by the School principally represent the 1910 endowment and later additions, investments for bursaries and scholarships, and the development appeal to fund new building and bursaries. Where income arises it is spent as soon as is practicable on the specified purpose. For details of restricted funds see note 15 to the accounts.

Policy on reserves

The trustees recognise the need for prudent financial management of the School’s borrowings, and to build reserves over time. The current policy, successfully implemented, is to manage the net negative free reserves position out of free cash flow generated by operations. The School’s policy generally is to build reserves to a level consistent with prudent financial management, taking into account the need to maintain the School sites and fund future capital expenditure. The trustees review this policy annually.

The trustees view the development plan for the School as the most effective and prudent way to ensure the longterm future of the School. The Pelican, Prep and the Upper schools all have their own development plans with site and age range specific focuses. The individual school plans are co-ordinated by the Heads and Bursar to deliver a coherent whole, and each plan contains a number of common 3 - 18 elements. School development planning is both a bottom up (staff contributions) and top down (management guided) process. The Governing Board formally reviews development plans on an annual basis at the autumn meeting of the Education Committee which reports to the December meeting of the Full Board. The implementation of individual plans is also subject to review by appropriate board committees.

In agreeing the school development plan and annual focuses, careful thought is given to the pace and extent of change which needs to be managed to ensure the resources and capacity exist for changes to be successfully implemented. An evaluation of the progress in implementing the development plan and the success of individual focuses takes place on a termly basis at Executive Leadership Team level.

On the basis of the definition of free reserves set out by the Charities SORP (FRS102), the School has net negative free reserves. At 31 August 2020 the value of total reserves was £58.7m (£54.9m 2018/19) and net negative free reserves stood at £708k (£5.4m 2018/19), being the value of unrestricted funds after deducting operational fixed assets and committed expenditure. This arises because ofthe significant expansion and development of the School and associated building works including the construction of the performing arts centre at the Upper and the Science extension at the Prep School.

Investments

Investment powers and authority

The School Scheme permits the trustees to consolidate the investments and the money belonging to the School

25

THE PERSE SCHOOL Trustees Report For the year ended 31 August 2020

into one combined pool constituted as a common investment fund. The School’s Memorandum of Association allows it to appoint an investment manager and delegate to that person discretionary powers in relation to the management of the School’s investments within the limits of the School’s investment policy. During the year, the School’s short term liquid assets were managed by Cazenove Capital Management.

Investment policy

The trustees determined in July 2006 that a good investment return and a reasonable level of security, combined with a strategic site advantage for the School would be provided by investing long term investment funds in Cambridge property which lies adjacent to the Hills Road site. Four residential properties were let to third parties for the 2019/20 financial year.

The School also has short term investment funds held for identified expenditure e.g. capital expenditure and short term bursary expenditure, and to meet general cash flow needs. For short term funds, capital preservation is of paramount importance with income generation a secondary objective. Short term assets should be held in cash or near cash investments denominated in sterling:

The performance of the investments

The School’s investment properties were valued at 31 August 2018 by Carter Jonas LLP and as at 31 August 2020 the value of the investment is shown at this market valuation of £4,526k (2019: £4,526k). The valuation, of necessity, reflects the current uncertainty in the market.. These properties represent long-term investments. Rental income of £145k was received in the year. It is anticipated that the properties will continue to be available for commercial rent during the forthcoming financial year.

The School’s short term investments have been placed in accordance with the policy outlined above and have achieved a return commensurate with the School’s risk management and liquidity requirements and market conditions.

Performance compared with policy

Both long term and short term investments have met the overall policy of the trustees to protect the value of the capital, prior to its possible disbursement, while achieving a reasonable Jevel of current income.

Auditors

RSM UK Audit LLP have indicated their willingness to continue in office.

The Trustees’ Report and Strategic Report on pages 5 to 26 were approved by the trustees on 23 March 2021 and signed on their behalf by:

J Scott

Governor & Chair of Board of Trustees

G Proudfoot

Governor & Chair of Finance & General Purposes Committee

26

THE PERSE SCHOOL Independent Auditor’s Report to the Members of the Perse School

Opinion

We have audited the financial statements of The Perse School (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2020 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

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

27

THE PERSE SCHOOL

Independent Auditor’s Report to the Members of the Perse School

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

in the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within the Trustees’ Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities, 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 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other

28

THE PERSE SCHOOL

Independent Auditor’s Report to the Members of the Perse School

purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Bsr7 Ul Avot Lit

LARAGH JEANROY (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Abbotsgate House Hollow Road Bury St Edmunds Suffolk IP32 7FA

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29

THE PERSE SCHOOL Consolidated Statement of Financial Activities For the year ended 31 August 2020

Total Total
Note Unrestricted Designated Restricted Endowed Funds Funds
Funds Funds Funds Funds 2020 2019
£’000 £’000 £’000 £’000_ =£’000 £’000
INCOME FROM:
Donations and legacies - 74 339 - 413 560
Charitable Activities-
Tuition fees 2 24,865 - - - 24,865 24,883
Other educational income 780 - - - 780 790
Other ancillary activities 3 1,312 - - - 1,312 1,537
OtherTrading Activities
Lettings 53 - - - 53 72
Subsidiary trading activities 252 - - - 252 394
Investments 5 179 20 13 - 212 206
CJRS income 479 - - - 479 -
TOTAL INCOME 27,920 94 352 - 28,366 28,442
EXPENDITURE ON:
Raisingfunds
Fundraising (166) - - - (166) (231)
Investment property costs (13) - - - (13) (38)
Charitable activities
Operating costs (23,885) - (5) - (23,890) (23,476)
Bank interest (244) - - - (244) (298)
Grants, awards and prizes - - (182) - (182) (116)
Other activities (75) - - - (75) (305)
TOTAL EXPENDITURE 6 (24,383) - (187) - (24,570) (24,464)
NET INCOME 3,537 94 165 - 3,796 3,978
Transfers between funds 17 53 (85) 15 - -
Other recognised losses - - - - - -
NETMOVEMENT IN FUNDS 16 3,554 147 80 15 3,796 3,978
Balances b/fwd 1September 48,533 3,627 2,273 488 54,921 50,943
Balancesc/fwd31August 52,087 3,774 2,353 503 58,717 54,921

30

THE PERSE SCHOOL Balance Sheets

As at 31 August 2020

Charity number: 1120654 Company registration number: 5977683

Note Group Group School School
2020 2019 2020 2019
£’000 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 8 52,287 52,043 52,287 52,043
Investments 9 5,905 5,795 5,855 5,795
58,192 57,838 58,142 57,838
CURRENT ASSETS
Stock 35 38 29 27
Debtors 10 631 916 905 1,053
Cash at bank and in hand 11 13,405 10,828 13,070 10,417
14,071 11,782 14,004 11,497
CURRENT LIABILITIES
Creditors 12 (3,157) (3,681) (3,102) (3,449)
NETCURRENT ASSETS 10,914 8,101 10,902 8,048
TOTALASSETS PLUSCURRENT ASSETS 69,106 65,939 69,044 65,886
CREDITORS: amounts falling due after more than one
year 13 (10,389) (11,018) (10,389) (11,018)
TOTAL NET ASSETS 58,717 54,921 58,655 54,868
CAPITALAND RESERVES
Endowed Funds 16 503 488 503 488
Restricted Funds 16 2,353 2,273 2,353 2,273
Designated Funds 16 3,774 3,627 3,774 3,627
Unrestricted Funds 16 52,087 48,533 52,025 48,480
TOTALFUNDS 58,717 54,921 58,655 54,868

As permitted by Section 408 of the Companies Act 2006, the Statement of Financial Activities of the parent Charity is not presented as part of these financial statements. The Charity’s surplus for the year was £3,787k (2019: £3,923k).

The notes on pages 37 to 52 form part of these financial statements.

The financial statements were approved and authorised for issue by the trustees at their meeting on 23 March 2021 and signed by

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J Scott
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G Proudfoot
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Governor & Chairman of the Finance & General Purposes Committee

31

THE PERSE SCHOOL Consolidated Cash Flow Statement and Notes For the year ended 31 August 2020

Note 2020 2019
£’000 £’000
Net cash provided by operating activities A 4,788 4,134
Cash flows from investing activities
Investment income received 2311, 206
Purchase of tangible fixed assets (1,458) (411)
Purchase of investments (110) -
3,451 3,929
Cash flows from financing activities
Advance fee payments received 538 742
Advance fee payments utilised in payment offees to the
School (501) (505)
Repayment of project borrowing (667) (667)
Bank interest paid (244) (298)
Change in cash and cash equivalents in the year 2,577 3,201
Cash and cash equivalents at the beginning ofthe year 10,828 7,627
Cash and cash equivalents at the end ofthe year 11 13,405 10,828
A.
RECONCILIATION OF NET MOVEMENT IN FUNDSTO CASH		 USED IN OPERATING ACTIVITIES
2020 2019
£’000 £’000
Net income for the year 3,796 3,978
Interest and rent from investments (212) (206)
Interest paid 244 298
Depreciation 1,401 1,386
Decrease/(Increase) in stock 3 (2)
Decrease/(increase) in debtors 284 11
(Decrease)/increase in creditors (728) (1,331)
Netcashprovidedbyoperatingactivities 4,788 4,134

A. RECONCILIATION OF NET MOVEMENT IN FUNDS TO CASH USED IN OPERATING ACTIVITIES

32

THE PERSE SCHOOL Accounting Policies For the year ended 31 August 2020

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with 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 (FRS102) (Charities SORP(FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, and under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value.

The Perse School is an incorporated charity domiciled and registered in England, which constitutes a Public Benefit entity as defined by FRS 102. The address of its registered office is set out on page 3. Assets and liabilities are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The charitable company was dormant up to 31 August 2007. Effective from 1 September 2007, the assets and undertaking relating to the Perse School, which had previously been held by the unincorporated charity registered in England and Wales numbered 311434, were transferred to the charitable company. The endowment assets remained within the unincorporated charity, renamed The Perse School Endowment, with the charitable company acting as its trustee and which, for accounting purposes, is amalgamated into the accounts of the charitable company under a Uniting Order issued by the Charity Commission. (The Perse School Endowment now carries as registration number 1120654-1).

The financial statements have been prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £’000.

Going Concern

The group has net current assets of £10.9million at 31 August 2020. The trustees have considered the financial position of the group, the level of free reserves, liquidity, the 2020/21 budget and accompanying cash flow forecast, together with the long term strategic plan and the level of admissions for 2021/22. As a consequence, the trustees believe the group is well placed to manage its business risks successfully and that there are no material uncertainties in applying the going concern basis of preparation.

Impact of COVID-19

The outbreak of COVID-19 in the early part of 2020 has caused severe disruption to the global economy, and will continue to do so. The Perse School has been committed to ensuring continuity of education and the safety of its pupils and staff through the use of digital learning and remote working, as a result of which the operation of The Perse School has been maintained well.

The Perse School has performed financial modelling to consider the impact of the COVID-19 outbreak on the reported results and forecast position, and no issues were identified that would give rise to a going concern risk. Given the measures taken by the School, its positive cash flow and its level of reserves, COVID-19 should not cast any doubt on the ability of the group to continue as a going concern.

Reduced disclosures for subsidiaries

As a qualifying entity within the meaning of FRS 102, the charitable company has chosen to take advantage in its individual financial statements of the following disclosure exemptions:

33

THE PERSE SCHOOL Accounting Policies For the year ended 31 August 2020

Group accounts

These financial statements consolidate the results of the charitable company and its wholly owned subsidiaries on a line by line basis. A separate Statement of Financial Activities has not been presented for the parent charitable company on the basis of the exemption provided under section 408 of the Companies Act 2006.

Income

Income from donations and legacies

Income received from donations, legacies and other voluntary sources where there is no stipulated use is recognised in the General Fund when received. Individual reserve funds are maintained for donations, legacies and other income received where the donor stipulates a specific use.

Income is included in the accounts at the point when the Charity is entitled to the income, there is probability of receipt and the monetary value can be measured with sufficient reliability.

Income from charitable activities

Fees and other educational income receivable are accounted for in the period in which the service is provided. Fees receivable are stated after deduction of bursaries and other allowances.

Income from other trading activities

Turnover within the group’s subsidiary companies is measured at the fair value of the consideration received or receivable and represents the amounts for services or goods provided in the normal course of the business, net of discounts. Turnover is recognised upon provision of services or delivery of goods.

Lettings income is accounted for in the period to which the letting relates.

Income from investments

Rental income from the investment properties is accounted for in the period to which the rental relates. Bank interest is accounted for in the period during which the interest earning balances are held.

Expenditure

All expenditure, including irrecoverable VAT, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category.

Termination payments

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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THE PERSE SCHOOL Accounting Policies For the year ended 31 August 2020

Employee benefits — Pensions

Retirement benefits to employees of the charitable company and its group are provided by the Teachers’ Pension Scheme (TPS) in respect of teaching staff and the National Employment Savings Trust (NEST) and Aviva Group Personal Pension Scheme (Aviva) for all other staff.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charitable company and its group in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a projected unit credit method.

The TPS is an unfunded multi-employer scheme with contributions calculated on a pay-as-you-go basis and no obligation to fund a past deficit with no underlying assets to assign between employers. Consequently there is insufficient information to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

The NEST and Aviva Schemes are defined contribution schemes, the assets of the schemes being held separately from those of the School in independently administered funds.

Contributions are made for teaching staff to the Teachers’ Pension Scheme. Contributions are also made for support staff to group personal pension schemes which are of a defined contribution nature. The costs of the School’s contributions to all schemes are charged to the Statement of Financial Activities as they fall due.

Employee benefits - Other

Short term employee benefits including holiday pay are recognised as an expense in the period in which the services are received from the employee involved.

Tangible Assets

Tangible fixed assets of a long-term nature with a cost exceeding £5,000 are capitalised on the balance sheet as fixed assets and depreciated as detailed below. Land and buildings acquired prior to 1995 are shown at their historic valuation less depreciation of the buildings.

Depreciation is provided at the following annual rates in order to write off each asset over its useful economic life: Freehold buildings 50 years straight line; new artificial surfaces 20 years straight line; Plant, equipment, furniture and fittings 6 years straight line; pianos 10 years straight line; ICT equipment 3 years straight line.

Freehold land

Freehold land is not depreciated.

Operating leases

Payments made under operating leases are written off to the Statement of Financial Activities on a straight line basis over the lease term.

Investments

Investment properties are carried in the balance sheet at market value. The properties are valued in accordance with section 10 of Charities SORP FRS 102, i.e. at open market value, with the intention of obtaining a revaluation by an external valuer at least once every five years or at any stage if the trustees have reason to believe that values have changed materially. Investment properties are not depreciated. Investment property income is included in the Statement of Financial Activities on a receivable basis.

Investments in the subsidiary companies are accounted for in the balance sheet at cost less impairment.

35

THE PERSE SCHOOL Accounting Policies For the year ended 31 August 2020

Stocks

Stocks are included in the balance sheet at the lower of cost and net realisable value.

Debtors

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

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.

Creditors or provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third part and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised as their settlement amount after allowing for any trade discounts due. Provisions are measured at the best estimate of the amounts required to settle the obligation.

Fees received in advance of education to be provided in future years are accounted for as a liability until either taken to income in the term when used or else refunded.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Funds

Unrestricted funds comprise the accumulated funds which are neither restricted nor designated funds. They are available for use at the discretion of the Trustees in furtherance of the general objects of the charitable company.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purpose and use of the designated funds are set out in the notes to the accounts.

Restricted funds comprise the unexpended balance of donations and grants held in trust to be applied for specific purposes.

Endowed funds comprise trust funds which are subject to specific trusts declared by the donors or with their authority. The condition of the trust is that the capital element is not expendable. The income arising from the investments is applied only in accordance with the conditions imposed by the donors (where specified) or for the general purposes of the School.

Tax accounting policy

The School is a registered charity and it is not liable to United Kingdom income tax or corporation tax on charitable activities.

The School is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in the furtherance of the School’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

36

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

1. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

In the application of the Charitable Group’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount 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 areas ofjudgement

in addition to the trustees’ assessment of the going concern status of the group, the following other specific judgements, estimates ad assumptions were critical to the preparation of these financial statements:

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 residual values of the assets. Useful economic lives and residual values are reviewed annually and reassessed where necessary to better reflect the actual usage of the assets involved.

Provision offee debtors

The trustees consider whether fee debtors are recoverable. Where there is an indication that recoverability is unlikely, the amounts involved are recognised as a provision for bad debts. This assessment requires an estimation of future likely cash flows in order to calculate the appropriate amount of any provision.

----- Start of picture text -----
||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2020|2019| |£’000|£’000| |2.|TUITION|FEES| |Gross|fees|26,603|26,636| |Less:|total|bursaries,|scholarships|and|allowances|(1,920)|(1,869)| |24,683|24,767| |Add|back:|bursaries|and|allowances|paid|for|by|restricted|funds|182|116| |24,865|24,883| |3.|OTHER|ANCILLARY|ACTIVITIES| |School|lunches|909|1,183| |Tuck|shop|and|vending|machines|60|70| |Sundry|income|344|284| |1,312|1,537| |4.|SUBSIDIARY TRADING|ACTIVITIES|

----- End of picture text -----

The charitable company controls all of the issued share capital of two trading subsidiary companies (see note 9), each of which is incorporated in England and Wales — please refer to page 4 for a list of these companies. The registered office for both subsidiaries is The Perse School, Hills Road, Cambridge, CB2 8QF. The subsidiaries are engaged in commercial trading activities relating to and in support of the charitable company, and they donate all of their taxable profits to their parent entity under Gift Aid each year. The results and financial position of these trading subsidiaries is summarised in aggregate below using information extracted from their audited financial statements.

37

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

4. SUBSIDIARY TRADING ACTIVITIES

SUBSIDIARY TRADING ACTIVITIES
2020 2019
£’000 £’000
Turnover 252 316
Operating costs (191) (257)
Profit for the year 61 59
Total assets 390 480
Total liabilities (329) (421)
Totalfunds 61 59

Transactions during the year between the charitable company and its subsidiaries are detailed below:

2020 2020 2019
£000 £000
Owed by subsidiary companies to the School at 1 September 147 153
Recharges for services in the year 144 154
Gift Aid receipts 52 90
Cash receipts from the subsidiary companies (68) (250)
Owed by subsidiary companies to the School at 31 August 275 147
5. INVESTMENTINCOME Unrestricted Designated Restricted Total Total
Funds Funds Funds 2020 2019
£’000 £’000 £’000 £’000 £000
Lettings income 125 17 3 145 119
Bank and other interest 54 3 10 67 87
179 20 13 212 206
6. TOTAL EXPENDITURE
Staff costs Depreciation Other costs 2020 2019
£’000 £’000 £’000 ~=£’000_~—s £0000
Cost of raisingfunds
Fundraising 135 - 31 166 231
Investment property costs - - 13 13 38
Charitable activities
Educational 14,040 - 1,880 15,920 15,124
Premises 1,574 1,401 1,451 4,426 4,632
Welfare 113 - 1,142 1,255 1,589
Support 1,190 - 1,094 2,284 2,131
Total school operating costs 16,917 1,401 5,567 23,885 23,476
Bank interest - - 244 244 298
Grants, awards and prizes - - 182 182 116
Other activities - - 75 75 305
Total 17,052 1,401 6,112 24565 24,464

6. TOTAL EXPENDITURE

38

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

Support costs relates to School operating costs consisting principally of administration and bursary department expenditure

department expenditure
2020 2019
£’000 £’000
Other costs for School running 550 439
Marketing and communications 147 232
Insurance and professional fees 369 322
Governance 28 36
1,094 1,029

Operating Leases

The amount paid under operating leases during the year was £152k (2019: £72k).

Auditor’s Remuneration

Fees payable to the auditor for statutory audit during the year were £17k (2019: £16k) for the School, £nil (2019:£1k) for The Perse School Trading Company Limited and £1k (2019: £1k) for The Perse School Cambridge International Limited. Fees payable for tax compliance were £1k (2019: £1k) for the Perse School Trading Company Limited and £2k (2019: £2k) for The Perse School Cambridge International Limited.

7. STAFF COSTS

2020 2019
Group £’000 £’000
Gross salaries 13,198 12,769
National insurance costs 1,420 1,389
Pension costs 2,356 1,739
Other costs 78 113
17,052 16,010

Included in the above figures are termination payments of £63k (2019: £6k) for the School. No funding was received in relation to this payment.

The average number of employees of the School and the Group during the year is shown below:

2020 2019
No. No.
Teaching 196 193
Support 176 169
Fundraising 3 4
375 366

39

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

The number of employees receiving gross pay net of salary sacrifice and inclusive of the value of benefitsin-kind were:

2020 2019
No. No.
£60,000 - £70,000 17 20
£70,001 - £80,000 6 5
£80,001 - £90,000 p 3
£90,001 - £100,000 1 3
£100,001 - £110,000 2 1
£130,001 - £140,000 1 -
£140,001 - £150,000 1 -
£210,001 - £220,000 - 1
£230,001-£240,000 1 -

The gross pay included in the salary band £230,001 - £240,000 includes additional salary in lieu of employer pension contributions. The number of higher paid staff with benefits accruing under defined benefit schemes was 26 (2019:28).

The key management personnel of the Group and the School comprise the trustees, the Bursar, the Heads and Deputy Heads of the Upper School, the Perse Preparatory School and the Perse Pelican Nursery and Prepreparatory School, the Director of Communications, the Development Director, the Director of HR, the Director of ICT and the Deputy Bursar. The total employee benefits of the key management personnel of the Group and the School were £1,932k (2019: £1,908k) and comprise gross pay net of salary sacrifice, benefitsin-kind and employers’ national insurance and pension contributions.

Trustees

The trustees received no remuneration during the year (2019:£nil}. One trustee was reimbursed £48 for travel expenses in connection with meetings of the trustees (2019: 4 - £1,315); £824 was spent on training costs for trustees in the year (2019: £5,521). Indemnity insurance for trustees is included in the School’s professional indemnity insurance premium of £8k (2019: £8k). Donations made by trustees totalled £600 (2019: £5,996).

Plant,
Freehold equipment
land and Furniture
8. FIXEDASSETSOFTHEGROUPANDTHESCHOOL Buildings & fittings Total
£’000 £’000 £’000
Cost or valuation
At 1 September 2019 61,189 1,228 62,417
Additions 1,448 197 1,645
At 31 August 2020 62,637 1,425 64,062
Depreciation
At 1 September 2019 9,982 392 10,374
Charge forthe year 1,227 174 1,401
At31August2020 11,209 566 11,775

40

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

Plant,
Freehold equipment
land and Furniture &
FIXEDASSETSOFTHEGROUPANDTHESCHOOL Buildings fittings Total
£’000 £’000 £’000
Net book value
At 31 August 2020 51,428 859 52,287
At 31 August 2019 51,207 836 52,043
Included within tangible fixed assets are the following which are not depreciated:
2020 2019
£’000 £’000
Land 856 824
Assets in the course of construction 2,043 807
Performing Arts Centre Public Art 94 94
9. FIXED ASSET INVESTMENTS
Freehold land Other
GROUP
u		 and buildings
£’000		 Investments
£’000		 Total
£’000
Cost or valuation
At 1 September 5,795 - 5,795
Additions 60 50 110
At 31 August 5,855 50 5,905
Freehold land Group
SCHOOL and buildings
£’000		 Undertakings
£’000
Cost or valuation
At 1 September 5,795 - 5,795
Additions 60 - 60
At31August 5,855 - 5,855

The opening balance of freehold land and buildings comprises four residential properties. All four properties were available for commercial letting throughout the year in 2020; (2019: four properties). Additions are shown at cost {including refurbishment). A professional valuation was undertaken by Carter Jonas LLP, Chartered Surveyors, in October 2018 who confirmed the valuation of the properties as at 31 August 2018.

Other investments are shares in an unlisted company (Blutick Limited) which have been measured at fair value.

The School owns the whole share capital (amounting to £100) of The Perse School Trading Company Limited. The company was dormant from 1 September 2019 (see note 4).

The School owns the whole share capital (amounting to £1) of The Perse School Cambridge International Limited. The principal activities of the company are advising on the setting up of and the provision of services to overseas schools and the licensing of the School’s brand internationally, and the provision of

41

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

educational consultancy services and content for on-line learning platforms. The company was incorporated in England and Wales on 15 January 2018. At 31 August 2020, the company had turnover of £252k (2019: £316k), profit before taxation of £61k (2019: £59k) and net assets of £61k (2019: £59k).

Group Group School Schoo!
2020 2019 2020 2019
£000 £000 £’000 £’000
10. DEBTORS
Trade debtors 358 270 357 270
Other debtors 18 12 18 2
Amounts owed by subsidiary - - 275 147
Prepayments and accrued income 255 634 255 634
631 916 905 1,053
Group Group School School
2020 2019 2020 2019
£’000 £’000 £’000 £’000
11. CASH AT BANK AND IN HAND
Cash at bank and in hand 11,855 10,828 11,520 10,417
Cash held in escrow 1,550 - 1,550 -
13,405 10,828 13,070 10,417
Cash at bank and in hand includes £1.55m held with Ashton KCJ in escrow for a property purchase.
Group Group School School
2020 2019 2020 2019
£’000 £’000 £’000 £’000
12. CREDITORS DUE WITHIN ONE YEAR
PAC loan 666 666 666 666
Trade creditors 409 702 405 699
Tax and social security costs 375 370 375 370
Accruals and deferred income 336 595 285 366
Advance fee payment scheme (note 13) 417 414 417 414
Fees paid in advance 627 487 627 487
Other creditors 327 447 327 447
3,157 3,681 3,102 3,449

42

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

Group Group School School
2020 2019 2020 2019
£’000 £’000 £’000 £’000
13. CREDITORS DUE AFTER MORE THAN ONE YEAR
PAC loan 10,001 10,667 10,001 10,667
Advance fee payment scheme (note 14) 388 351 388 351
10,389 11,018 10,389 11,018
Repayable >1 yr < 2 yrs
PAC loan 666 666 666 666
Advance fee payment scheme 193 175 193 175
Repayable >2 yrs < Syrs
PAC loan 1,998 1,998 1,998 1,998
Advance fee payment scheme 195 176 195 176
Repayable >5 yrs
PAC loan 7,337 8,003 7,337 8,003
10,389 11,018 10,389 11,018

A term loan of up to £12 million was agreed with Lloyds Bank plc on 22™ January 2016. The interest rate on this loan is 1.81% over base rate. The loan is repayable over eighteen years in equal termly instalments, commencing when the loan is fully drawn down and the first repayment was made in September 2018. The purpose of the loan is to finance the construction of the Performing Arts Centre.

The term loan is secured by a charge on the School’s Glebe Road properties, the Preparatory School site and the Upper School site.

14. ADVANCE FEE PAYMENTS OF THE GROUP AND THE SCHOOL

The School accepts payment of fees in advance from parents covering periods of up to 7 academic years. No guarantee is provided by the School regarding the future level of fees.

Parents may enter into a contract to pay to the School up to the equivalent of seven years’ tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one term’s notice. Assuming pupils remain in the School, advance fees will be applied as follows:

2020 2019
£’000 £’000
Within one year 417 414
More than one year
-
Within one to two years		 193 175
-
Within two to five years		 195 176
388 351
Totaladvancefeepayments 805 765

43

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

The balance represents the accrued liability under the contracts. Movements during the year were:

2020 2019
Balance atthe beginningoftheyear
New contracts		 £'000
765		 £'000
525
Amountsaccrued tocontractsasdebt-financing costs
Amounts utilised inpaymentoffeestotheSchool		 8
(501)		 m
(505)
Balance at the end ofthe year 805 765
15. ANALYSIS OF NET ASSETS BETWEEN FUNDS
Net Current
Tangible Assets Long term
2020 fixed assets Investments (Liabilities) Liabilities Total
GROUP £’000 £’000 £’000 £’000 £’000
Endowed Funds 35 468 - - 503
Restricted Funds - 123 2,230 - 2,353
Designated Funds - 840 2,934 - 3,774
Unrestricted Funds 52,252 4,474 5,750 (10,389) 52,087
52,287 5,905 10,914 (10,389) 58,717
SCHOOL
Endowed Funds 35 468 - - 503
Restricted Funds - 123 2,230 - 2,353
Designated Funds - 840 2,934 - 3,774
Unrestricted Funds 52,252 4,424 5,738 (10,389) 52,025
52,287 5,855 10,902 (10,389) 58,655
Net Current
Tangible Assets Long term
2019 fixed assets Investments (Liabilities) Liabilities Total
GROUP £’000 £’000 £’000 £’000 £’000
Endowed Funds 35 453 - - 488
Restricted Funds - 123 2,150 - 2,273
Designated Funds - 840 2,787 - 3,627
Unrestricted Funds 52,008 4,379 3,164 (11,018) 48,533
52,043 5,795 8,101 (11,018) 54,921
SCHOOL
Endowed Funds 35 453 - = 488
Restricted Funds - 123 2,150 - 2,273
Designated Funds - 840 2,787 - 3,627
Unrestricted Funds 52,008 4,379 3,111 (11,018) 48,480
52,043 5,795 8,048 (11,018) 54,868

44

THE PERSE SCHOOL

Notes to the Consolidated Financial Statements

  1. CAPITAL AND RESERVES OF THE GROUP AND THE SCHOOL

For the year ended 31 August 2020

2020 Balance Balance
GROUPANDSCHOOL at 2019 Income Expenditure Transfers at 2020
ENDOWED FUNDS £’000 £’000 £'000 £’000 £’000
Endowment 305 - - 15 320
CCC Bursary 57 - - . 57
Farrell Bursary 17 - - - 17
Pye Foundation 25 - - - 25
Enduring Gift - Bursaries 74 - - - 74
Enduring Gift- Rouse awards 10 - - - 10
Total endowed funds 488 - - 15 503
GROUPAND SCHOOL Balance Balance
RESTRICTED FUNDS at 2019 Income — Expenditure Transfers at 2020
£’000 £’000 £’000 £’000 £’000
Prizes and Travel 75 2 (2) - 75
AC Hawkins Bequest 15 - (1) - 14
Bursaries and Scholarships:
-
CCC Bursary		 - 1 (1) - -
-
Old Perseans		 39 2 (4) - 37.
-
Millennium Bursary Appeal		 78 - (9) - 69
-
Earnshaw-Smith Bursary		 225 1 (9) - 217
-
Neve Bursary		 4 - - - 4
Annual Fund 279 WE (47) (1) 308
Access to Excellence - - - - :
Capital works 242 - - (81) 161
Enduring Gift - Bursaries 1,103 215 (113) - 1,205
Enduring Gift—PAC 194 7 - (4) 197
Enduring Gift—Outreach 19 16 (1) 1 35
EnduringGift
— Outdoor Pursuits		 - 31 - =
31
Total restricted funds 2,273 352 (187) (85) 2,353
Balance Balance
GROUP ANDSCHOOL At 2019 Income Expenditure Transfers At 2020
DESIGNATED FUNDS £’000 £’000 £’000 £’000 £’000
Enduring Gift 528 77 - - 605
Current Bursaries Fund 1,362 - - (240) 1,122
Future Bursaries Fund 1,715 17 - 293 2,025
Travel Bursaries Fund 21) - - = 22
Totaldesignatedfunds 3,627 94 - 53 3,774

45

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

Balance Balance
UNRESTRICTED FUNDS At 2019 Income Expenditure Transfers at 2020
GROUP £’000 £’000 £’000 £’000 £’000
General Reserve 48,533 28,018 (24,481) 17 52,087
Total funds -group 54,921 28,464 (24,668) - 58,717
SCHOOL
General Reserve 48,480 27,967 (24,439) 17 52,025
Total funds - School 54,868 28,413 (24,626) - 58,655
2019 Balance Balance
GROUPANDSCHOOL at 2018 Income Expenditure Transfers at 2019
ENDOWED FUNDS £’000 £’000 £’000 £’000 £’000
Endowment 290 - - 15 305
CCC Bursary SY) - - - 57
Farrell Bursary iy7. - - - 17
Pye Foundation 25 - - - 25
Harper Travel - - - - -
Enduring Gift - Bursaries 74 - - - 74
Enduring Gift— Rouse awards 10 - - - 10
Total endowed funds 473 - - as 488
Balance Balance
GROUPANDSCHOOL at 2018 Income Expenditure Transfers at 2019
RESTRICTED FUNDS £’000 £’000 £’000 £’000 £’000
Prizes and Travel 74 1 - - AS
AC Hawkins Bequest 14 1 - - 15
Bursaries and Scholarships:
-
CCC Bursary		 - - - - -
-
Old Perseans		 42 1 (4) - 39
-
Millennium Bursary Appeal		 87 - (9) - 78
-
Earnshaw-Smith Bursary		 232 2 (9) - 225
-
Neve Bursary		 4 = 5 - 4
Annual Fund 260 78 (59) - 279
Access to Excellence - - - - -
Capital works 298 25 - (81) 242
Enduring Gift - Bursaries 772 366 (35) - 1,103
EnduringGift
— PAC		 193 5 - (4) 194
Enduring Gift - Outreach 18 1 - = 19
Total restricted funds 1,994 480 (116) (85) 2,273
Balance Balance
GROUPANDSCHOOL at 2018 Income Expenditure Transfers at 2019
DESIGNATED FUNDS £’000 £’000 £’000 £’000 £’000
Enduring Gift 444 84 - - 528
Current Bursaries Fund 1,180 - - 182 1,362
Future Bursaries Fund 1,580 - - 135 1,715
Travel Bursaries Fund 20 - - 2 22
Totaldesignatedfunds 3,224 84 - 319 3,627

46

THE PERSE SCHOOL Notes to the Consolidated Financial Statements

For the year ended 31 August 2020

Balance at Balance at
UNRESTRICTED FUNDS 2018 Income Expenditure Transfers 2019
GROUP £’000 £’000 £’000 £’000 £’000
General Reserve 45,252 27,878 (24,348) (249) 48,533
Total funds - group 50,943 28,442 (24,464) - 54,921
SCHOOL
General Reserve 45,254 27,724 (24,249) (249) 48,480
Totalfunds-School 50,945 28,288 (24,365) - 54,868

Enduring Gift

In March 2015 the School launched its ‘Enduring Gift’ campaign — a major fundraising appeal with the following goals: doubling the means-tested support from the Bursary Funds to keep The Perse accessible to families who cannot afford a full fee and providing support in cases of unexpected hardship; expanding the School’s educational reach into the community, locally and beyond; The Performing Arts Centre project — a once ina lifetime opportunity to transform and enhance the heart of the School.

Donations received through the Enduring Gift campaign have therefore been transferred between the following fund categories:

Endowed funds: donations where the donor has stipulated that the income generated should provide bursaries for the future.

Restricted funds: donations received for the provision of bursaries, the Performing Arts Centre and Outreach. Designated funds: donations received which may be used at the discretion of the Trustees in furtherance of the general objects of the charity.

ENDOWED FUNDS

Endowment

In accordance with a Charity Commission Order, £299,418 of the School’s permanent endowment was expended in 2000/01 to build a sports hall and sixth form centre. The order requires that the funds spent on the buildings must be replaced by an annual transfer from the general fund over 20 years in instalments of £14,971 per annum. The endowment fund relates to the amounts transferred over the last 19 years totalling £284,429 and £35,035 being the original capital of the independent educational regional charity scheme of 1910.

Bursaries and scholarships

The Cambridgeshire County Council (CCC) Bursary was established in 1978 from a donation of £16,000. The donation was made to generate income to provide bursaries for the benefit of children who at the time of the award are day pupils from maintained primary schools in Cambridge.

The Farrell Bursary was established in 1978 by a donation of £5,000 in memory of Michael Farrell from his widow. Income is applied in making bursary awards to pupils resident within 25 miles of the city of Cambridge.

The Pye Bursary was established and endowed in 1978 by a donation of £7,000 from the Pye Foundation. Income is applied in making bursary awards to pupils resident within 25 miles of the city of Cambridge.

47

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

In June 2017 a donation was received for £10,000 to fund prizes for the School’s annual Rouse Awards.

RESTRICTED FUNDS

Prizes and Travel

The Prizes and Travel Fund was set up from various donations and bequests to be used for the awarding of prizes to pupils of the School and from donations from Rouse (1965) of £1,600 and Cooper (1971) of £1,000 and Howie and Perrett (1988) of £1,000 to be used for travel bursaries which are awarded annually at the Head’s discretion.

The A C Hawkins Bequest Fund was established in 1973 out of a legacy of £7,132 to be applied towards helping pupils learn to swim.

Bursaries and Scholarships

The Old Persean Society made a donation in 2000 of £69,707. Income and capital generated by the donation is to be used to provide bursaries for sixth form students.

The Millennium Appeal Bursary Fund was set up from donations and bequests to the School from a campaign appeal launched in 1997.

The estate of Georgina Earnshaw-Smith gifted funds for a bursary to be established in the name of her late husband, Eric Earnshaw-Smith, relating to classical, literary, other arts or humanities studies.

A legacy was received in 2011 from the late Maureen Neve with the clear requests that the money be used to provide a bursary or bursaries. The first Neve bursary was awarded in the 2011/12 academic year.

Annual Fund and Access to Excellence Fund

The Annual Fund was established in 2002. This is an annual appeal encouraging regular donations to raise funds for bursaries and specific projects nominated by the School.

The Access to Excellence campaign raised funds inter alia to support the development of the School by building additional facilities at all three sites. The campaign raised significant funds to help achieve the first phase of the development project. A proportion of the funds raised was devoted to means-tested bursary support for pupils.

Three pupils currently benefit from Annual Fund and Access to Excellence Fund bursaries (2019: 3).

Capital works

The Capital Works Funds consists of a donation towards the cost of the kitchen refurbishment (included within fixed assets) in 2018 which is being released to unrestricted reserves over five years.

DESIGNATED FUNDS

The Current Bursaries Fund was set up in order to assist with the financing of means-tested bursary awards. The fund was established from allocations from the income and expenditure account. An amount has been transferred from unrestricted funds to the Current Bursaries Fund so as to maintain the level of the fund at the equivalent of approximately one full academic year’s worth of bursary awards, which is estimated to be £1,121k for the year 2020/21.

48

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

The Future Bursaries Fund, established in 2011/12, is made up of transfers from unrestricted funds of the annual balance between 5% of gross fee income and actual bursary spend in the year funded by the School from that year’s operations.

The Travel Bursaries Fund was established to provide means tested assistance for some school trips

17. PENSION ARRANGEMENTS

Defined Benefit Scheme

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,898k (2019: £1,278k) and at the yearend £227k (2019 - £174k) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pension Scheme Regulations 2014. Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

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 judgement 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 the 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 Actuaria! 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.

49

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.

Group Personal Pension Schemes

The School operates two group personal pension schemes. The Schemes are defined contribution schemes, the assets of the schemes being held separately from those of the School in independently administered funds. The School’s contributions to the schemes were 13.75% (2019: 13.75%) for the Aviva non teaching staff pension scheme with employee contributions of 6.25% (2019: 6.25%). The second scheme is the NEST scheme which the School uses to fulfil its obligations under auto-enrolment legislation. Contribution rates for this scheme were 4% for the employer (2019: 2% rising to 4% from April 2019) and 3% for employees (2019: 2% rising to 3% from April 2019).

Employer contributions paid to the schemes in the year were £461k (2019: £461k) and the amount due to the schemes at 31 August 2020 was £53k (2019: £51k).

18. RELATED PARTY TRANSACTIONS

Five trustees (2019: five) had children attending the School as at 31% August 2020. Fees were paid on the same terms as for all other children attending the School (see note 4).

19. OPERATING LEASES GROUP AND SCHOOL

At 31 August 2020 the Group and the School had annual commitments under operating leases which expire as shown in the banding below:

Office Office
Land & Equipment Total Land & Equipment Total
Buildings & vehicles 2020 Buildings & vehicles 2019
£’000 £’000 £’000 £’000 £’000 £’000
Within 1 year 12 240 252 12 118 130
2-5 years 48 396 444 48 253 301
>5 years 6 36 42 18 51 69
66 672 738 78 422 500

At 31°t August 2020 the Group and the School had contracted with tenants under non-cancellable operating leases for the following future minimum lease payments:

Amount due: 2020 2019
£’000 £’000
Within 1 year 84 93
Between1and5years - 8

50

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

20. CAPITAL COMMITMENTS

At 31 August 2020 the School had capital commitments of £508k contracted but not provided for in the financial statements (2019: £1,855k) relating to the main hall facade.

21. NET DEBT RECONCILIATION

NET DEBT RECONCILIATION
1 September 31 August
2019 Cash flows 2020
£’000 £’000 £’000
Cash at bank and in hand 13,070 335 13,405
Bank loans (11,333) 666 (10,667)
NetDebt 1,737 1,001 2,738

51

THE PERSE SCHOOL Notes to the Consolidated Financial Statements For the year ended 31 August 2020

22. ANALYSIS OF PRIOR YEAR TOTAL

FUNDS

FUNDS
Total
Unrestricted Designated Restricted Endowed Funds
Funds Funds Funds Funds 2019
£’000 £’000 £’000 £’000 =£’000
INCOME FROM:
Donations and legacies 9 80 471 - 560
Charitable Activities
Tuition fees 24,883 - - - 24,883
Other educational income 790 - - - 790
Other ancillary activities 1,537 - . - 1,537
OtherTrading Activities
Lettings 72 - - - 72
Subsidiary trading activities 394 - - - 394
Investments 193 4 9 - 206
TOTAL INCOME 27,878 84 480 - 28,442
EXPENDITURE ON:
Raisingfunds
Fundraising (231) - - - (231)
Investment property costs (38) - - - (38)
Charitable activities
Operating costs (23,476) - - - (23,476)
Bank interest (298) - - - (298)
Grants, awards and prizes - - (116) - (116)
Other activities (305) - - - (305)
TOTAL EXPENDITURE (24,348) - (116) - (24,464)
NET INCOME 3,530 84 364 - 3,978
Transfers between funds (249) 319 (85) 15 -
Other recognised losses - - - - -
NET MOVEMENT IN FUNDS 3,281 403 279 15 3,978
Balances b/fwd 1 September 45,252 3,224 1,994 473 50,943
Balancesc/fwd31August 48,533 3,627 2,273 488 54,921

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