Registerèd number.. 6610261 Charlty number.. 1125268 WOLVERHAMPTON GRAMMAR SCHOOL LIMITED DIRECTORS. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 WR Partners Protecting your future.
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee} CONTENTS Page Referonce and admlnlstrative detalls of the Companyi its Directors and advisers Dlrectors. report Independent auditors. rèport on tha financlal statements Consolidated statement of financial activities Consolidated balance sheet 3-13 14-16 17-18 19-20 Company balance sheet Consolidated statement of cash flows Notès to the financlal statements 21-22 23 24-50
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Dlrectors Mr N C Berriman2.3 Mr C l Bill, Chairman of Finance and General Purposes Commillee2,4 Mrs E Bloch lappoinled 9 April 202011 Mrs S H L Cawdell, Chairman ol Education Committeei Ms E Forde lappoinled 28 September 2020) Dr M Gowan Gopa11 Mr R Grainger Iresigned 18 October 2019)1 MT J H8rper2 Mr P A Hawthornel,4 Professor K B Madelin. Chairman of Eslales Commillee (resigned 30 December 201912,3 Mr Y J Malik1,3 Mr J Pale12 Ar J Sage, Chairman Members of The Education Committee Members of The Finance and General Purposes Committee Members of The Eslales Committee Members of The Remuneration Committee Company register&d number 6610261 Charlty registered number 1125268 Registered office Compton Road Wolverhampton WV3 9RB Page 1
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limlted by guarantee REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS DIRECTORS AND ADVISERS ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Company secretary Mrs P C Rudge (resigned 31 August 2020) Mrs S Hemmings (appointed 1 September 202QI Mis K Crewe- Read (resigned 31 August 20201 Mr A Frazer {appoinled I September 20201 WR Partners Chartered Accountants Belmonl House Shrewsbury Business Parf( Shrewsbury Shropshire SY2 6LG The Head Indepandent audltors Bankers Allied Irish Bank IGB} 61 Temple Row Bim)ingham B2 5LT Sollcitors FBC M2nby Bowdler LLP 6 - 10 George Street Snow Hill Wolverhampton WV2 4DN Investment Managers M & G Securities Limited Laurence Pounlney Hill London EC4R OHH Smi(h & Williamson 3rd Flc>or, 9 Colmore Row Birmingham, B3 28J CCLA Investment Management Limited 80 Cheapside, London EC2 SDZ Page 2
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED {A company limited by guarantee) DIRECTORS, REPORT FOR THE YEAR ENDED 31 AUGUST 2020 The Directors, who are also Trustees, present their annual report together with the audited financial slalements of the Company for the 1 September 2019 10 31 August 2020. The Annual report stttves the purposes of both a Directors, report and a directors. report under corNpany18w. The Diieclors confirm that the Annual report and financial slalements ol the charitable company Comply with Ihe CLJrrenl statutory requirements, the requirements of the charitable company's governing document and the provisions of the Slalement of Recommended Practice ISORPI applicable lo charities preparing their accoLJnts in accordan with the Fin8ncial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021 leffe¢twe 1 January 20191. Objectives and activities Policies and objectives The objects of the Charity are'the provision and conduct in or near Wolverhampton of a day school for boys and girls" thereby Providing the advancement of education within the meaning of English law. The Wolverhampton Grammar School's Ilhe 'S¢hool'l mission is lo deliver education th81 transforms lives as well as minds. We do this by providing an education as individu81 as every child within an environment like no other. Our staff help us fulfil our mission as a School by working with students lo ensure their curriculum is Tight for them. We ¢an do this because of small class sizes, flexibility within our academic slrucluies and an all embracing range of exlra curricular activities. We all play a part in equipping students lo develop a love of learning. Our School community inspires opennoss, trust and mutual respe¢t. We know that a challenging education reqLJires a supportive, caring environment as well as a blend of skills and a mind sel that embraces diversity and drfference. For us. education is not just about academic achievement, il's about helping our students lo know they can make difference during their lime al Sch(x)l and after they leave us. All our students are Irealed wamly as individuals and their opinions are valued this is because we know that our S¢hool thrives on the relationship between our students. their parents and our staff and the active role that we all play. Objectives for the Year The School's objectives for the year were to delbver against the third year of Ihe new School's 201712022 Strategic Plan, whilst remaining true lo the School's mission as slated above. Primarily the objectives included-. ImpToving the quality oftoaching and learning., Embedding a new digital strategy to supwrt 8nd enhance each student's educational experience as well as preparing them for the future., Making improvements lo the pastoral system lo further develop the community of the School., Encouraging a clubs for all culture., Continuing with the planning application process lo create Infant facility on the school sile Embarking on a science laboratory refurbishment scheme., Finalising restructure plans for the governance of the organisalion,. and Raising further funds lo enable a greater number of bursaries lo be granted. Page 3
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company IlmSted by yuaranteel DIRECTORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Oblectives and activities Icontinuedl b. Strategle5 lor achieving objectivès The School is now part way through ils second fi've year Strategic Plan which is split down into eight key areas.. Inlelleclual Challenge.. Pastor81 Care and Spiritual Growth., Co Curricular Breadth". Purposeful Staff Developmenl,. Effective Marketing and Communication8,' Secure School Finances,. Well Maintained Eslales, Facilities and Infr8sltuclure,' and Effective Govemance. The Strategic Plan is reviewed and updated annually leading lo the production of annual whole School Development Plans detailing the annLJal School objeclives lor the year cOnmed. Departmental and individual objectives are linked through lo the whole School Development Plan allowing a co-ordinated and well communicated approach lo achieving obje¢tives. All Development Plans are reviewed al the end of each year before the Strategic Plan is reviewed and updsled. This review and objective selling process involves slafl, the senior management team and the Directors. c. Activities undertaken to achieve objectives Wolverhampton Grammar School IWGSI provides education lo boys and girls fTom the ages of 7 to 18 in the Junior School and the Senior School. Whilst maintaining high academi¢ standards, the School also provides specialist support for students wlh special edu¢alional needs through ils Opportunities for Assisted Learning Scheme {OpALI. 578 students aged 11 18 were on roll as of September 2019 in the Senior School (September 2018.. 5701 and 175 students aged 7 - 11 in the Junior School (September 2018.. 1721. The School continues lo altracl strong interest from the Wolverhampton area as well as from Slaffordshire. Shropshire, Walsall and Birmingham. Public examinations were replad by Centre Assessment Grades, as required by OFQUAL in the context of the COVID-19 pandemic. A rigorous and fair process was conducted by the School lo determine the Centre Assessmenl Grades for each student in each subject, and there was an extremoly high degree of confidence expressed by students and parents when the results were published In August. Al GCSE the 2019120 cohort achieved a 93. pass rale al gr2das 9 10 4 with 64Qh passes al grades 9 10 7. The students averaged over 9 passes each. At A Level there was a 1000A pass rate, an 84°/0 pass rale al A'IB 1650/0 in 20171181 and 550/0 al grade A'IA, reflecting the particularly high average ability of a cohort which contained an unusually large number of full-fees bursary recipients. the Directors having made additional awards to celebrate the School's quincenlenary in 2012. 790A of our students achieved a place al a university of their choice. The School continues lo offer Ihe EPQ qualification which is popular with students and is regarded highty by universities. In the Spring term, the School (Senior and Junior) underwent a routine ISI inspedion of Regulatory Compliance. The School received a flawless report with all regulatory requiTemenls mel in full. The Junior School, opened in 2011, continues lo flourish and was al ils largest in terms of pupil numbers during the year. Links with the Senior School are enhanced by sharing facilities and in some cases, teachers Isciences for example. are laught in purpose built labs by the Senior S¢hool slafn and there is strong support in place for both students and their parents in terms of transition lo Senior School including immersion days and parent infomation evenings. Achievement and well rounded education al WGS is evident both inside and outside the classroom. The School provides high quality leaching and an excellent programme of co-curricular and extra curricular activities and opportunities lover 100 clubs. societies and activities 8re available lo students across the School). Both are supported by the implemenlalion of the School's digital strategy, whi¢h has modernised adminislralion and has provided up lo dale methodology for both leaching and learning. The prominence of Sludenl Parliament in the Senior School and School Council in the Junior School and seriousness with which sludenl voice is taken Page 4
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarallteel DIRECTORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Objectives and activities Icontinuedl throughout the School enables our young people lo learn lo articulate their thoughts and speak up for what is right. The sludenl run Peer Support group is popular, and very active in the Senior School. Peer supporters are allocated lo each form, so ensuring their approachability, and their work is coordinated by a slrono team lead. The inlroduclion ol Inlerform activities has increased 8 sense of collegiality between students throughout the School and will be expanded into a full house system over the next three years. Over the Course of the year they ¢onlribuled lo various pastoral initiatives in School by bringing 8 student perspective. Such aclivities help us to meet our objective of raising students who are Gonfidenl that they can make a difference within their communily or sphere. The School continues lo provide quality sporting opportunity for students and participation levels are high. Some 260 Senior School fixlures were played during the year in netball, football, rounders, hockey and rugby. Other minority sports thrive and ¢omplete an exciting and varied offering.. Elon fives, squash, basketball, CTOSS ¢OLJntry, gymnastlos, fencing, swimming, and badminton. In girls, 5POrt the U14 Netb811 team won the district lournsment. The U12 Hockey team qualrfied for the Midlands Hockey Tournament bul this was never played due to Covid-19. Unfortunately, the curtailment of the Spring and Summer Terms due lo Covid-19 meant that there was no opportunity for students lo participate in summer sports such as Tennis and Rounders. The School also supports students who compete at City, regional and Intern81ional level with supported learning lo ensure they do not fall behind and in some cases. a tailored fitness programme to support their sporting discipline. The music and drama departments continue to provide exciting opportunities for our students. The Hullon Theatre hosted a performance of Our Town. Unlortunately, the planned Lower School production of Rumpleslillskin and the annual Dan Show were cancelled due to lockdown. Students from local secondary and primary schools are invited lo performances free of ¢harge for both academic Teasons and entertainment. In November 2019, 16 pupils and 3 staff joined the Wombourne Choral Society in a performance Df The Messiah. 24 pupils from Years 5-7 sang in Young Voices al the NEC in January. A virtual cOnrt look place during IoGkdown and Year 10 pupils compiled a virtual recording ol'Bring Me Sunshine" School trips that support and enrich the curriculum have continued lo enhance the educational and spiritual gromrth of students. Most Junior School children were able lo lake part in a residential trip, which gives them an opportunity lo team build and involve themselves in outdoor challenges. Provision was and ha5 been made in the budget over the next few years lo allow for tho ongoing science laboratory refurbishment scheme, with three chemislry laboratories being refurbished in the summer of 2018 and a biology laboratory being refurbished in the summer of 2019. The remaining biology and general laboratories will be refurbished over the next few years as part of the phased plan. The School is very grateful for the generosrty of the M8rchanl Taylors, Livery Cornpany for their donation for this ongoing Wotk. Page 5
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA Gompany limited by guaranteel DIRECTORS, REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Objectives and a¢tlvitles Icontinuedl d. Main actlvities und8rtaken to further the Company's purposes for thè public beneflt The Directors have given due regard lo the Charity Commission guidance on public benefrt and have continued lo demonstrate the School's comrllilmenl lo delivering public benefit lo both its own students and the wider communily of Wolverhamplon. Means lesled bursaries amounted lo over h21f of all ComSSIOnS awarded, with Ihe lolal number of students in September 2019 receiving means tested bursaries amounting lo 65 (September 2018". 641. The total number of students receiving means lesled support and the proportion receiving support with 900A or more of lees and additional extras 1450/DI is in line with last year. These students come from households where the gross annual income is less than £60.000. One student on such an award is a Looked After Child. The school has also accepted a second Looked After Child, placed by the Local Authority,. this has been deemed a ¢omplele success by authority and parent, and the arrangement is sel lo continue next academic year. Means lesled bursaries are primarily offered al entrance in Year 7 and in Year 12 and in addition a bursary hardship fLJnd is used lo support students thr()ugh critical exam years where their parents have experienced significant financial difficulty. Further don8tions of funds for bursary support have been re1Ved during the year and have augmented the number of 1 OOOA means tested awards that have been made lo new entrants al Year 7 in September 2019. During the year, an Emergency Appeals Fund was launched in order lo support families in short term financial difficullies as a result of Covid-19. The fund supported 25 students, who would otherwise have had to leave WGS and will continue lo be used to support students during the 2020121 academic year. The School sees itself very much as part of 8 wider community, and where we call assist the community wilhoul detriment lo advancing the education of our students, we are delighted to do so. We provide public benefit lo the Community through a number of lellings al subsidised rates lo local children's sports and holiday clubs. including junior cricket. hockey and rugby clubs and Soccer 2000. The lelling of musi¢ and exam hall facilities lo wider educational music organisalions has also been developed as has the use of the Viner Gallery, which as a serwces space, has been made available lo local artists as an exhibition venue on several occasions, The local nursery is able lo use the School grounds free of charge for ils sports day and the local Tabernacle church is able lo us$ the School car p8rk free of charge on a Sunday. As part of the School's public benefit provision, the WGS Library continues to inspire reading and is working lo raise levels of reading attainment across the Wesl Midlands. As the author events expanded in 2019120,1804 young people from a lolal of 23 local slate schools mel award-winning and besiselling children's authors. poets and storytellers. Based on this slalistic, we are delighted to report that the level of engagement from schools is increasing exponentially each year, wlh many schools now Iravelling a considerable distance lo atlend our events. Our first large-scale lebritY author wsil also look place, where we welcomed over 1,200 children lo Wolverhampton's Grand Theatre lo meet David Baddiel for Ihe launch of his lalesl children's book, 'The Taylor Turbochaser,. As part ol our work lo make reading accessible for all children, funding from Meichanl Taots, Company was sourced and enabled us lo gift 1,200 signed copies of David's book lo every child in attendance. In addition lo the author events. the School's Librarian led a Read Well training session. This was planned in collaboration with Custom Training and offered 6 local state schools the opportunity to enhance their mental health first aid training. In addition, schools who attended this free workshop received infomialion and resources lo Create wellbeing book displays In their own libraries. The School Libraiian Network Group. run from WGS, continues lo offer training and support for librarians from local and iegional slal8 schools. We now welcome represenlalives from 18 schools lo these lermly meetings where good pra¢li¢e is shared and resources linked lo the Wolverhampton Children's Book Award are dislribuled. These schools all participated in the 2019 Wolverhampton Children's Book Award, where 600 young people aged 9-13 voted for the award with Humza Arshad emerging as their winning author. Throughout the pandemic. we irlcreasecl our offering lo the School Librarian Network Group by sharing digilal resources and risk assessments via virtual meetings. As a result of this work, schools were able lo continue Page 6
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA Gompany limited by guaranteel DIRECTORS. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Objectives and activities IcontinLtedl operating a library service whilst promoting reading remotely. Other outreach opportunities have ¢onlinued lo be organised by the s¢hc)ol, although major events such as the Year 5 Discovery Day were unable lo lake place due lo lockdown. Similarly, we were due again to host a National staff training event. bul this had to be cancelled. Students in the Junior School support workshops al Severndale Specialist Academy. The Junior School 8lso run a rugby festival, two Cross country festivals 2nd a Festival of Sport, where local stale schools are encouraged to make the most of the School's grounds, f8cililies and leaching expertise. Both Senior and Junior Schools raise funds which are divided amongst local and national charities.. in this respect, in 2019-20 the Schoo1 raised funds for Compton Hospice, WalerAid, Buddy Bear Foundation and Birmingham Children's Hospilal. The total raised was £2352 which was significantly less than in recent years; owing lo the pandemic, the School was not able lo hold a number of the usual fundraising events in the second half of the academic year. Among these. the annual Coast 2 Coast run. normally run in May, was delayed this year bul run in a different format in October 2020. The School actively supports the attainment of the highest standards in the Independent Schools sector through networking with other schools and membership of Ihe appropriate bodies concerned with such standards. The Head is an elected member of The Headmasters. and Headmistresses, Conference IHMCI. The Warwick Group of HMC schools provides a forLJm for the Head, the Deputy Heads and Heads of all academic departments to meet and consider mallers of mutual interest and importan. The School is a member of the Independent Schools, Bursars Asso¢iation which provides relevant advi¢0 for the effective adminislralion of the School. The outgoing Bursar was elected as Chair of the ISBA Executive Committee. The S¢hool was also shortlisled and won the TES Senior Leadership Team of the Year 2018. Three of the School's leaders and management setve the wider educational community by acting as School governors in regional slate primary schools. In the furtherance of the aims of the School, the Trustees have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's published and r¢1evant sub sector guidance conrning the operation of the Public Benef1t requirernent under that Act. Fundraising and Volunteer Aclivilies The School continues lo promote the Independenca Appeals Fund for the ¢ollection of donations and legacies for augmenting bursary funds. During the year. Bn Emergency Appeals Fund was launched in order lo support families in short term financial difficulties as a result of Covid-19. The fund raised £116.965, £50k in malcheLI funding was provided by the Independen Appeals fund and £50k was transferred from the Sports Scho13rship Fund at the expiess wish of the donor. The EAF supported 25 students, who would olhetwise have had to leave WGS, with fees conliibulions of £71.920 in the Summer lemi. The remainder of the fund is expe¢led lo be used for support during 2020121. In the furtherance of these aims, the Trustees have Complied with the duly in section 4 of the Charities Act 2011 lo have due regard lo the Charity Commission's published and relevant sub sector guidance conMing the operation of the Public Benefit requirement under that Act. Many parents. friends of the school and Old Wulfrunians help with fundraising, cultur81 and sporting activities and care&rs events providing many hours of voluntary service during the year. The Directors very much appreciate their continLJing and valuable support. Page 7
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guaranteel DIRECTORS. REPORT ICONTINUED} FOR THE YEAR ENDED 31 AUGUST 2020 Objectives and activities (continued) Strategic report Achievements and perfomiance a. Key performance Indicators The Directors consider that the key financial performance indicators are pupil numbers,. full fee equivalent pupil numbers., leaching staff.. pupil ratios., investment surplus {profil before depreciation as a percentage of net fee income),. salary costs as a percentage of nel fee income," bursary and scholarship concessions as a percentage of gross fee income,. perntage fee rises., level of 8nnual capital expenditure and reserves levels. The key performance indicators are sel during the budget process and reviewed al least On a term by the Finance and General Purposes Committee through the production of Month management accounts and th6 annual SORP accounts. b. Review of activities The surplu5 for the year Ibefore transfers between funds and movements on investment assets) amounted to £173k 12019.. £993kl. The deficit for the year after Iransfers between funds and gains on investment assets amounted lo £103k 12019.. £868k surplus) and has been transferred to reserves. Total funds amounted to £17,911 k12019.. £18,015k}. The overall cash surplus for the year amounted lo £223k (2019". £1,297kl. During the year, fee income after bursaries and diseounls decreased by £508k,' equivalent lo a 5.80A decrease (2019.. £416k equivalent lo a 5.OOA increase). due lo significant discounts lo Summer Temi fees as a response lo the pandemic and the financial impact on parents. This was partially offset by Government Grants of £258k received lo support operations during lockdown. In addition, whilst Ihe School continues lo maintain a good level ol means lesled bursary assistance, the level of non means lesled Scholarship concessions have been reduced. The donations and legacies received during the year were £250k for bursary support. The School has continued lo work to increase awareness of the benefits th21 a child obtains through the award of a buTsary and is very grateful lo ils alumni body both in the UK and abroad for their continued bursary donations lo the Independence Appeal Fund. Total resources expended have IncaSed lo £9,048k 12019.. £9,141kl w((h greater funds being spent on leaching Tesources for the benefit of pupils in the School whilst operating costs have continued lo be kept lirmly under control. The value of the investments held have decreased, wth realised and unrealised losses amounting lo £102k {2019'. £103k gain). Whilst the latter is largely beyond the control of Directors, there is a strong expectation that operating costs will continue lo be diiven down in order lo oplimise the incoming reSoUrS for th& main aim of the charity, the eduealion of ils students. The ongoing aim of the School is lo increase cash surpluses lo enable the School to invest in an ongoing capital expenditure plan to allow buildings lo be updated and lo increase the level of reserves lo provide security for the School in the current Unrtain political and economic climate. Whilst a small cash surplus was generated during the year, the program of capital expenditure was pul on hold during the Summer Term due lo the economic uncertainly introduced by lockdown. Page 8
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) DIRECTORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Strategic report Icontinuedl Achievèments and performance Icontlnuedl Res8Nes Policy The School aims to build up and maintain ils unrestricted free reserves in order lo accomrnodate lorsger term plans for capital investment and other strategic objeclives as well as provide an emergency fund lo manage the risks and uncertainly for an edu¢alionaS charity in the current political and economi¢ ¢limale. In addition the Directors recognise the need lo increase the reslricled and endowment reserves held, in particul8r the Independence Appeals Fund. to help fund futur¢ Iransformalional bursaries. Consolidated reserves at 31 August 2020 amounted to £17,911k 12019.. £18,015kl. Al 31 August 2020 the consolidated free reseTves were £2,540k 12019.. £2,338kl. Details of the specific reserves held are provided in note 22 to the 8¢counls. Total unreslricled funds as shown in the financial slalements include a notional funding deficit of £1,194k {2019', £821kl cal¢u5aled under the FRS102 Charity SORP in respect of the School's defined ben&fil scheme for support staff. The Directors believe that this notion81 funding calculation, which can vary Considerably between surplus and deficit a¢¢ording to the assumptions made at each year end, has no material effect on the School's short term ¢ashllow and that in the longer lerm, ils effects are s(Jslainable oul of future income. For this Teason il is considered that it should be disregarded for reserves policy purposes. The Directors are satisfied that they have sufficient reSoUrS available lo meet liabilities and any unscheduled future costs and review their policy on an annual basis. c. Investment policy and performance The Trustees of the Appeals Funds have appointed Investment Managers to manage the investment portfolio on a discrelionary basis in accordance with the agreed strategy. The Trustees monitor the returns on a regular basis. The m8in investment objectives are." The creation of a sufficient financial return lo enable the Charity to Carry out ils purposes effectively and without interruption., The maintenance and enhancernenl of the investment funds over the long lemi., . To obtain a reasonable balance betwe&n capital growth and income so that the Charity can meet future as well as current needs., To avoid investments that are unduly risky. The investment performance foT the majority of the School's accounts is measured against the MSCI WMAIPIMFA Balanced Index, which rosfj by 2.260/0 during the year lo 31st August 2D20. By ¢ontrasl, the 1958 investments achieved a gain of 9.gOA., the Independence Appeal Fund returned 2.25°/o and the Reslricled Fund rose by 2.440A. The Ivy Jones Endowed Fund, which has an income orienlaled benchmark, rose by 2.890A while the MSCI WMAIPIMFA IncDme Index gained 2.31tlA. The general policy is lo maintain and gTQW investment capital levels, generating returns to provide the hardship bursary support lo sludenls who would otherwisè be unable lo attend the School. In addition, the relurns are used to fund specific means lesled awards through donations received for these purposes such as the Sports Scholarship and Ivy Jones Award, and the Foundation Bursaries. Page 9
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA Company limited by guarantee) DIRECTORS, REPORT ICONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 Strategic report {contlnuedl Financlal review a. Going concern After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources lo continue in operational existence for the foreseeable fLJture. The Company therefore continues lo adopt the going Concern basis in preparing ils financial slalemenls. The Directors have also assessed the polenlial impact on the future operations of the Company with regard lo the Covid-19 outbreak. The Company is considered to be well positioned gThien the current environment with no impact on the going concern basis of the financial slalements. b. Principal risks and uncertainties The Directors believe that the principal risks and uncertainties to the business are.. Oper81ional- atlmcling and maintaining pupil numbers in today's difficutt economic environment,. Environmental- ability to expand and build an Infant School on the current Schwl sile due lo planning considerations., Technological- keeping up lo dale in a worfd of fast moving dKJilal technology advan8 and in particular the impact of social media.. + Political- the threat lo charitable slalus and charitable lax reliefs. Economic- Ihe increase land possible further future increases) in employer contribution lo the Teachers, Pension Scheme. Whilst these risks and uncertainties are considered and regularfy reviewed, the Directors manage these 81 an acceptable level through their robust risk management policy and associated reserves position. Structure, governance and management a. Constitution The School is a charity and company limited by guarantee, and is governed by ils memorandum and articles of association by ils Board ol Directors. The associated Trusts, The Independence Appeals Fund and The 1958 Appeal Fund are administered in conformity with their Trust Deeds by their Boards of Trustees. Wolverhampton Grammar School Foundalion is adminisleTed in conformity with ils revised Scheme of Government dated 16 February 2018 by Wolverhampton Grammar School Limited, who has been appointed the Corporate Trustee of the FoLJndation. The consolidated accounts comprise Wolverhampton Grammar School Ltd Iregislered charity number 1125268), Wolverhampton Grammar School Foundation (regisleied charity number 5290061, Wolverhampton Grammar School Independence Appeal Fund Iregislered Charity number 5074871 and Wolverhampton Grammar School 1958 Appeal Fund (registered eharily number 10908851. The School was set LJP lo run the operational and trading activities, the Ftsundalion was sel up lo manage the specie endowed land and buildings and the two Appeal Funds were sel up lo support the School in its aims and lo provide finanoial help wherever possible to students who would not otherwise hav& been able to atl6nd Wolverhampton Grammar School. Page10
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) DIRECTORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Structurei governance and management Icontinuedl b. Methods of appointment or election of Directors The Board of Dire¢lors is appointed at the AGM under the terms of the memorandum and articles. A srnall working group made up of a commitlee of Directors appointed by the Chairman, carries out reviews of possible new members, in readiness for vacancies arising through reliremenls of Directors. They also carefully consider the range of skills which are needed on the Board, and names of potential Directors are recommended lo the Board when appropriate. The Trustees of the Trust Funds are appointed by Deed of Appointment by the currenvoutgoing Trustees, who carefully consid&r the range of skills required on the boards. . Organisational structure and decision-makSng policies The Directors are responsible for the overall management of the School and meet as a board al least three limes a year. The Finance General Purposes, Education and Eslales Commillee5 meet on a termly basis as a minimum and these commillees are empowered on behalf of the Board lo ensure that the policies as agreed by them are carried out. A copy of the minutes of these meetings and accounts are s¢nl lo all Dire¢tors. The day lo day management of the School is delegated lo the Head supported by the Senior Management Team. The Head and Bursar allend all meetings of the Trustees. and the full Board, Education and Finance and General Purposes Commillees, in addition the Fill8n Director attends the Eslales Committee meetings. The Senior School Deputy Heads and Head of the Junior School attend meetings of the full Board and the Education Committee, with the Assistant Heads allending the Education Committee only. The Annual General Meeting of the S¢hoDI (held in October) is 811ended by all members of the School Ilhe Council of Members) and includes staff. parents and other stakeholder representatives. d. Policies adopted for the induction and training of Directors New Directors are provided with an induction pack, which contains details of the memorandum and articles of association of the School and other relevant documents, together with the Association of Governing Bodies induction reSoUrs. Before taking up post, they meet wilh the Chairman of the Board and the Head. Once 8ppointed, a meeting with the Company Secretary is arranged, to PTovide more detailed information and to idenlify appropriate training courses for individuals lo allend. All Directors lake part in annual training which provides relevant and up lo date information on goveinan¢e and school inspections with outside speakers being brought in as and when appropriate. Directors are also encouraged to attend training events run for the not for profrt and school sector by external bodies. e. Pay poll¢y for key management personnel The Directors, Remuneralion Committee meets annually lo review the pay and remuneration of the Head and the Bursar, with the Head also reviewing the pay of other members Df the senior management team on an annual basis. Any proposed adjuslmenls to the pay of the senior management team are confirmed by the Remuneration Commiltee. The reviaw of all senior staff pay is with refernCe lo their agreed annual objectives and performance. Page11
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) DIRECTORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Structure, govèrnance and management (continued} f. Financial risk management During the year the Dire¢tors have examined the principal areas of the School's operations and Considered the major risks in each ol these areas. In the opinion of the Directors, the School has established systems which, under normal circumstances. should allow these risks lo bè managed al an acceptable level in ils day lo day operations. 11 is recognised that systems can only pmwde reasonable bul not absolute assurance that major risks have been adequately managed. A risk register is held and updated on a iegular basis. Much ol the operational work in this area is managed by the Risk Management Group, which comprises the Head and his Senior Management Team. The Directors continue lo keep the School's activities under review, particularly with regard lo any major risks that may arise from lime lo lirne. They monitor the effectiveness of the system of intern81 controls and other viable means, including insljran cover where appropriate, by which those risks already identified by the Directors can best be managed. The key controls used by the School include.. Formal agendas for 811 Committee and Board activity. • Detailed terms of reference for all Committees, Comprehensive slralegi¢ planning, budgeting and management accounting, Established organisalional structure and lines of reporting, FoFmal wrillen policies, Clear authorisalion and approval levels, and . Velling procedures as required by law for the protection of the students. Plans for future perlods The School continues lo regard leaching and leaming lo be of the highest importance and intends to make further progress and improvements in this area. Plans for the coming year include progressing the new digital strategy to sUPPOrt and enhan each student's educational experience as well as preparing them for the future", improving the pastoral system to furtheT develop the community of the School., improving Sixth Form leaching lo ensure students, aspirations are slrelched., and reviewing the specialist support offered by our OpportunitS for Assisted Leaming Department. The School will continue wlh a knng tem programme of work lo refurbish and Maintain ils School buildings. in particular a ScnCe laboratory refijrbishmenl sch6me. The School will continue lo build on the Fundraising Strategy that has been launched focusing on bursary funding as well as new capital projects, supporting both the long term aim of being able lo offer a greater number of bursaTies as wèll as provide the infrasliuclure needed in a forward thinking modern School. Page 12
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company Ilmited by guarantee) DIRECTORS, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Statemènt of Directors. responsibi1Stles The Directors (who are also tho directors of the Company for the purposes of Company lawl are responsible for preparing the Directors, report including the Slialegic report and the financial slalements in accordance wth applicable law and United KingdoTn Ac¢oiJnling Standards (United Kingdom Generally Ac¢epled A¢¢ounling Practi1. Company law requires the Directors to prepare financial slalements for each financial year. Under ¢ompany law. the Directors musl not approve the financial slalemenls unless they are satisfied that they give a true and fair view of the stale of affairs of the Group and the Company and of their incoming resources and application of resources, including their income and expendrturo, for that period. In preparing these financial slaloments, the Directors are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Gharilies SORP {FRS 1021., make judgments and accounting eslimales that are reasonable and prudent.. slate whether applicable UK Accounting Standards IFRS 1021 hgve been followed, subject lo any material departures disclosed and explained in the financial slalementS', prepare the fin8n¢i81 statements on the going concern basis unless il is inappropriate lo presume that the Group will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient lo show and explain the Group and the Companys transactions and disclose with reasonable accuracy at any lime the linancial position of the Group and Ihe Company and enable them to ensure that the financial slalemenls Comply with the Companies Acl 2006. They are also responsible for safeguarding the assets of the Group and the Company and hen¢e for taking reasonable steps lor the prevention and detection of fraud and other irregularities. Disclosure of informatlon to audltors Each of the persons who are DirlorS al the lime when this Directors. report is approved has confirmed Ihal.. so far as that Director is awara. there is no relevant audit information of which the charitable group's auditors are unaware, and Ihal Director has taken all the steps that ought lo have been taken as 8 DirecloT in order lo be awa of any relevant audit infomalion and lo establish that the charrtable group's auditors are aware of that information. Audltors The auditors, WR Partners, have indicated their willingness lo continue in office. The designated Directors will propose a motion reappointing the auditors al a meeting of the Diredors. Approved by order of the members of the board of Directors on 9 December 2020 and signed on their behalf by. rJESag hairman Page 13
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guaranleel INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF WOLVERHAMPTON GRAMMAR SCHOOL LIMITED Opinion We have audited the financial slalemenls of Wolverhampton Grammar School Limited Ilhe 'parenl charitable ¢ompany'l and ils subsidiaries Ilhe 'group'l for the year ended 31 August 2020 which comprise the Consolidated slalemenl of financial activities. the Consolidated balance sheet, the Company balance sheet. the Consolidated slalement of cash flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Raporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Pra¢lice). In our opinion the financial statements.. give a true and fair view of the slate of the Group's and of the parent charitable companls affairs as al 31 August 2020 and of the Group's incoming resources and application of reSoUrs, including ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion We conducted our audit in accordance wrth International Standards on Auditing IUKI IISAS IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to OLJr audit of the financial slalemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these reqLJirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern We have nothing lo report in respect of the following matters in relation to which the ISAS IUKI require us to report to you where.. the DireGlors' use of the going concern basis of accounting in the preparation of the financial slalem6nls is not appropriate., or the Directors have not disclosed in the financial slalemenls any identified material uncertainties that may cast significant doubt about the Group's or the parent ¢harilable company's ability lo continue lo adopt the going ¢oncern basis of accounting for a period ol al least twelve months from the date when the financial statements are authorised for issue. Page 14
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF WOLVERHAMPTON GRAMMAR SCHOOL LIMITED ICONTINUEDI Other information The Directors are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial slalemenls and our Auditors, report Ihereon. Our opinion on the financial statements does not cover the other information and, except to the exienl olheTwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. In conneclion with our audit of the financial slalemenls, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislenl wilh the financial slalemenls or OUT knowledge obtained in the audit or otherwise appears to be malerially misslaled. If we identify such material inconsistenryes or apparent material misstatements, we are required to determine whether there is a material misslalemant in the financial slalemenls or a material misslalemenl ol the other information. If, based on the work we have performed, we conclude that there is a material misslatemenl of this other information, we are required ID report that fact. We have nothing lo report in this regard. Opinion on other mattgrs prescribed by tha Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Directors, report including the Slralegic report for the financial year for which the financial stslements are prepared is consislenl with the financial statements. the Directors, report and the Strategic report have been prepared in accordance with applicable legal requirements. Matters on which wè are required to report by exceptlon In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not idenlrfied material misslalemenls in the Directors. report including the Strategic report. We have nothing lo report in respect of the following matter8 in relation lo which Companies Act 2006 Tequires us lo report to you if, in our opinion.. the parent charitable company has not kept adequate and sufficient accounling records, or relums adequate for our audil have not been reiVed from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns., or rtain disdosures of Directors, remuneration specified by law are not made.. or we have not received all the information and explanalK)ns we require for our audit. Page15
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA Gompany limitèd by guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF WOLVERHAMPTON GRAMMAR SCHOOL LIMITED ICONTINUEDI ResponslbS1ities of trustèes As explained more fully in the Dire¢lors' responsibilities slalemenl, the Dire¢tors (who are also Ihe directors of the charitable company for the purposes of company lawl 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 Dire¢lors determine is necessary lo enable the preparation of financial statements that are free from material misslalemenl, whether due lo fraLJd or error. In preparing the financial slalemenls, the Directors are responsible for assessing the Group's and the parent charitable companls ability lo continue as a going canrn, disclosing, as applicable, mallers related lo going ¢oncern and using the going concern basis of accounting unless the Directors either intend lo liquidate the Group or the parent charitable cornpany or lo cease operations, or have no realistic allernalive bul lo do so. Audltors. responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial slalemenls as a whole are free from material misslalement, whether due lo fraud or error. and lo issue an Auditors. report that includes our opinion. Roasonable assurance is a high level of assurance, but is not a guarantee that an audit condu¢ted in accordan wlh ISAS IUKI will always deled a material misslalemenl when il exists. Misslalemenls can arise from fraud or error and are considered material If, individually or in the aggregate, they could reasonably be expected lo influence the economi¢ decisions of users taken on the basis of these financial slalemenls. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al.. www.frc.or -uklaudilorsres Auditors. report. onsibililies. This description forms part of our Use ofour report This report is made solely lo the charitable Company's members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2008. Our audit work has been undertaken so that we might slate lo the charitable company's members those mallers we are required lo slate lo them in an Auditors. report and for no other purpose. To the fullest extent permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and ils members. as 8 body, for our audit work, for this report, or for the opinions we have formed. Andrew alpass BA FCA Isenior slalulory audilorl for and on behalf of WR Partners Chartered Accountants Slalulory Auditors Belmont House Shrewsbury Business Park Shrewsbury Shropshire SY2 6LG Dale.. 11 December 2020 Page 18
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 AUGUST 2020 Unrestrlcted funds 2020 £000 Restricted Endowment funds funds 2020 2020 £000 £000 Total funds 2020 £000 Tolal rui?ds 2019 Note Income and endowments from: Donations and legacies Charitable activities Other trading activities Investments 342 8,595 40 167 509 351 8,595 40 134 48 9.552 67 77 57 123 64 Other in¢ome 48 Total Income and endOÈnts Expendilure on- Raising funds Charitable a¢livilies 9,102 224 9,326 10. 157 10 11 12 22 23 9, f 41 8,811 237 9,048 Total expendlture 8,823 246 9,070 9. 164 Nel Ilossesllgains on investments 1591 1201 Net movement in funds bèfore olher recognlsed gainsl(lossesl Other recognised gainsllloss8sl'. Actuarial losses on defined benefit pension schemes Other gainslllossesl on Investments 220 1421 {51 173 998 25 {2571 12571 (228) 17 15 1241 1101 1181 98 Net movement in funds {221 1661 1151 11031 868 Page 17
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNTI ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Unrestricted funds 2020 £000 Restricted Endowment funds funds 2020 2020 £000 £000 Total funds 2020 £000 Total funds 2019 Note Reconciliation of funds: Total funds brought forward Nel movement in funds q 5.206 1221 2.307 1661 501 18,015 11031 17.147 868 1151 Total funds carrled forward 15,184 2,241 486 17.911 18,015 The Consolidated slalemenl of financial activities includes all gains and losses recognised in the year. The notes on pages 24 10 50 form part of these financial statements. Page 18
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guaranloel CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020 2020 £000 2019 Note Fixed as58ts Tangible assets Investments Investment property 12,016 4,183 620 12.248 4.280 520 16 16,819 17,148 Currant assets stocks Debtors Cash al bank and in hand 18 10 235 3,371 401 3, 148 3,616 3,557 Creditors.. amounts falling dLJe within one year 20 11,2981 (f,838) Net current assets 2,318 1,719 Total assets less current liabllltles 19.137 18,867 Creditors.. amounts falling due after more than one year 21 {321 132) Net assets excluding penslon Ilabilily Defined benefit pension scheme liability 19,lOS 18,835 25 11,1941 (821) Total net assets 17,911 18,074 Page 19
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED (A company limited by guarantee) CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 AUGUST 2020 2020 £000 2019 £(0 Note CharSty fun(fs Endowrnenl fijnds Reslricled funds Unreslricled funds Unreslricled funds excluding pension asset Pension reserve 22 486 501 2,307 22 2,242 22 16,377 11,1941 16,027 {821) 22 Total unrestricted funds 22 15,183 15,206 Total funds 17,911 18,014 The Directors acknowledge their responsibilities for complying with the requirements of the Act wilh respect lo accounting records and preparation of financial statements_ The financial slalemenls were approved and aulhorised for issue by the Directors on 09 December 2020 and signed on their beha by. MrJE Chaima Chair of Finance Commtttee The notes on pages 24 10 50 fomi part of Iheye financial statements. Page 20
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED A company limited by guarantee) COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2020 2020 £000 2019 £000 Note Fixed assets Tangible assets Investments 11,919 293 12,151 320 17 12,212 12.471 Current assets stocks Debtors 18 19 10 247 374 2, 636 Cash al bank and in hand 2,790 3,047 3.018 Creditors.. amounts falling due wlhin one year 20 11,293) (7,833) Net current assets 1.754 1, 185 Total assets less cuttent Ilal)illties 13.966 13,656 Creditors.. amounts falling due after more than one year 21 1321 {32) Net assets excluding penslon liability Defined benefit pension scheme li8bilily 13,934 11,194) 13,624 25 {821) Total nel assets 12,740 12,803 Pag821
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) COMPANY STATEMENT OF FINANCIAL POSITION ICONTINUEDI AS AT 31 AUGUST 2020 2020 £000 2019 £000 Note Charity funds Endowment funds Restricted funds Unreslricled lunds Unrestricted funds excluding pension liability Pension reserve 22 22 212 212 561 591 22 12,674 11,1941 12,821 (821) 22 Total un¥eslricted funds 22 11,967 12,000 Total funds 12,740 12,803 The Directors acknowledge their SpOnsIbl1111es for complying with the requ1MentS of the Act with respect lo accounting records and preparation of financial stalemenls. The financial slalemenls were approved and aulhorised for issue by the Directors on 09 December 2020 and signed on their behalf by.. The notes on pages 24 10 50 form part of these financial slalements. Page 22
WOLVERHAMPTON GRAMMAR SCHOOL LSMITED IA company Ilmited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020 2020 £000 2019 £000 Note Cash flows from operating activities Net cash used in operating activities 256 1,815 Cash flows from investing actlvllies Dividends, interests and rents from investments Purchase of tangible fixed assets Proceed$ from sale ol investments Purchase of investments 123 122 12211 946 18791 (736) 490 (394) Net cash used in investing actlvlties 1311 5181 Cash and cash equivalents al the beginning of the year Change in cash and cash equivalents in the year 3,148 223 1,851 1,297 Cash and cash equivalents at the end of the year 3,371 3, 148 The notes on pages 24 to 50 fom part of these financial slalemenls Page 23
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 General information Wolverhampton Grammar School Limited is a charity and company limited by guarantee and registered in England. The members of the company are the Directors named on page 1. In the event of the Company being wound up. the liability in respect of the guarenlee is limited to £10 per member ol the company. The address of the registered office is given in the charily infoimalion on page 1 of Ihese financial slatemenls. The nature of the School's operations and principal activities are that of an educational eslablishmenl. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the second edition of the Charities SORP {FRS 1021- Accounting and Reporting by Charities.. Stalemenl of Recommended Practi¢e applicable lo charities preparing their 8¢counls in accordance with the Financial Reporting St8ndard applicable in the UK and Republic of Ireland IFRS 1021 lissued in October 20191, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Wolverhampton Gr8mmaT School Limited meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised al historical ¢osl or transaction value unless otheis6 slated in the relevant accounting policy. Under a uniting direction issued by the Charities Comission Wolverhampton Grammar School Foundation is Irealed as forming part of Wolverhampton Grammar School Limited which is lo be the reporting charity for the purposes of part 4 Iregislralionl and part 8 laccounlingl of the Gharilies Act 2011. The Consolidated Slalemenl of Financial Activities ISOFAI and Consolidated balance sheet consolidate the financial slalemenls of the School and ils subsidiary undertakings. The results of the subsidiary are consolidated on a line by line basis. The School has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented r(s own Statement ol Financial A¢livilies in these financial slalemenls. 2.2 Basis of consolldation The financial stalemenis Consolidate the accounts of w0rhaMpIOn Grammar School and all of its subsidiary undertakings {'subsidiaries'). The School has taken advantage of the exemption contained within section 408 of the Companies Act 2006 nol lo present ils own Income and Expenditure account. The income and expenditure account for the year dealt with in the accounts of the School was £63k delicil (2019 £782k surplus). Page 24
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting policies Icontinuedl 2.3 Going concern After making enquiries, the Dire¢lors have a reasonable expectation that the Company has adequale resources lo ¢onlinue in operation81 existence for the foSeeable future. The Company therefore ¢ontinues lo adopt the going concern basis in preparing ils financial slatemenls. The Directors have also assessed the potential impact on the future operations of the Company with regard lo the Covid- 19 outb8k. The Company is considered to be well positioned given the current environment with no impact on the going concern basis of the financial slalemenls. 2.4 Income All income is recognised once the Company has enlillement lo the income, it is probable that the ncome will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the abi5ily lo estimate with sufficient accuracy the amount receivable. Evidence of enlillemenl lo a legacy exists when the Company has sufficient evidence that a gift has been left lo them Ilhrough knowledge of the exislence of a valid will and the death ol the benefa¢lor) and the executor is satisfied that the property in question will not be required lo satisfy claims in Ihe estate. Receipt of a legacy musl be recognised when il is probable that il wqll be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed lo the Company, c8n be reliably measured. Grants are included in the Consolidated slalemenl of financial activities on a receivable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance ol enlillement of reIpl, ils recognition is deferred and included in Creditors as deferred income. Where enlillement occurs before incorne is reived, the income is accrued. In¢ome lax recoverable in relation lo investment income is COgnised al the lime the investment income is recewable. Other income is recognised in the period in which il is receivable and to the exienl the goods have been Provided or on ccmplelion of the Se1. 2.5 Expendllure Expenditure is re¢ognised On there is a legal or conslruclive obligation lo transfer economic benefit to a third party, il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by aclivily. The costs of each aclivity are made up of the lolal ol direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs allributable to a single activity 8re allocated directly lo that aclivily. Shared costs which contribute lo more than one activity and support costs which are not attribLJlable to a single activity are apportioned between those activities on a basis consislenl with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and inGludes costs of all fundraising activities events and non-charilable trading. Page 25
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting policies (continuèd 2.5 ExndIture Icontinuedl Expenditure on charitable actThiilies 18 incurred on directly undertaking the aclivili&s which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.6 Intorest receivable Interest on funds held on deposit is included when receivable and the amount c2n be measured reliably by the Group,. this is normally upon nolificalion of the interest paid or payable by the inslilulion with whom the funds are deposited. 2.7 Tangible fixed assets and depreciation Tangible fixed assets are initially recognised al cost. After recognition, under the cost model, tangible fixed assets are measured al cost less aocumulaled depreaalion and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended working ¢ondilion should be included in the measurement of c05t. Depreciation is charged so as lo allocate the cost of tangible fixed assets lèss their residual value over their eslimaled useful lives. Depreciation is provided on the following bases.. Freehold property Plant and machinery olor vehicles 0-10Yo slr8ighl line 10.250A slraighl line 200h slraighl line A review for impairment of a fixed asset is carried out if events or changes in circijmslances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impsirmenls. Impairment losses are recognised in the Statement of Financial Activities 2.8 Revaluation of Investment Properties The School has adopted the revaluation model lo revalue Inveslmenl Property whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity lo ensure that the carrying amount does not differ materially from that which would be determined using fair value al the end of the reporting period. The fair value of land and buildings is usually dalermined from market-based evidence by appraisal that is nonnally undertaken by professionally qualified valuers. RevalLJalion gains and losses are recognised in the Statement of Financial Activities and accumulated in equity. The 2020 valuations were made hy the Directors, on an open market value for existing use basis. Page 26
WOLVERHANPTON GRAMMAR SCHOOL LIMITED IA company limited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting policies Icontinuedl 2.9 Investments Fixed asset investments are a form of financial inslTument and a ini11215y recognised al their transaction ¢osl and subsequently measured al fair value al the Balance sheet dale, unless the value ¢annol be measured reliably in which case il is measured al cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossesl on inveslmenls, in the Consolidated slalemenl of financial aclivilies. Investments in subsidiaries are valued al cost less provision for impairment. 2.10 stocks Wolverhampton Grammar School holds stocks of cleaning products, food and clothing lo which are all valued al the lower of cost and nel realisable value after making due allowan for obsolete and slow-moving stock 2.11 Debtors Trade and other debtors are recognised al the selllement amount after any trade discount offered. Prepayments are valued at the amount prepaid nel of any trade discounts due. 2.12 Cash at bank and In hand Cash al bank and in hand includes cash and short-lerm highly liquid investments with a short maturity of three m()nlhs or less from the date of acquisition OT opening of the deposit or similar aount. 2.13 Liabilities Liabililies and provisions are re¢ognised when there is an obligation al the Balance sheet dale as a result of a past evenl, il is probable that a transfer of economic beTrefil will be required in selllemenl, and the amount of the selllement can be estimated reliably. Liabilities are re¢ognised al the amount that the Company anticipates it will pay lo sellle the debt or the amount il has reiVed as advanced payments for the gwds or services il musl prowde. Provisions are measured at the best estimate of the amounts required lo sellle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rate that reflects the risks specific lo the liability. The unwinding of the discount is recognised in the Conso5idated slalemenl of financial activities as a finance Cost. 2.14 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial inslwmenls are initially recognised al transaction value and subsequently measured al their selllemenl value with the exception of bank loans which are subsequontly measured al amortised cost using the effective inlerosl method. Page 27
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limÈted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting policies Icontinuedl 2.15 Operating leases Rentals paid under operating leases are charged to the Consolidated slalemenl of financial activities on a slraighl line basis over the lease term. 2.16 Pensions The School operates three pension schemes for ts support staff.. a defined contribution pension scheme, provided by Peoples, Pension and the pension charge represents the amounts payable by the School lo the fund in respect of the year., a defined benefits pension schème provided by the Local Government Pension Scheme {LGPSI and the pension charge is based on a full actuarial valuation dated 31 August 2020.. and a pension scheme provided by The Independent Schools, Pension Scheme IISPSI which is treated as a defined contribution scheme and the pension charge is based on the lalesl actuarial valuation. The School also conlribules to a defined benefit pension scheme Ifinal salary scheme) for the academi¢ staff, which is a national scheme operated for the Department for Children, Schools and Families. The pension charge represents amounts payable by the School to the fund in respe¢l of the year. Retirement ben6fils lo employees of the School are provided by the Teachers, Pension Scheme I'TPS") and the Local Government Pension Scheme l LGPS"). These are defined benefit schfjmes and the assets are held separately from those of the School. The TPS is an unfunded scheme and contributions are calculated so as lo spread the cost of pensions over employees, working lives with the School in such a way that the pension cost is a subslalllially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unil credil method. As staled in note 24, the TPS is a mulli-employer scheme and there is insufficient information available lo use defined benefit accounting. The TPS is therefore Irealed as a defined nlribulion schemo for accounting purposes and the contributions re¢ognised in the period lo which they relate. Tha LGPS is a funded scheme and the assets are held separately from those of the School in separate Iruslee administered funds. Pension scheme assets a measured al fair value anof liabilities are measured on an actuarial basis using the projected unil credit method and discounted al rale equivalent lo the current rate of return on a high quality corporate bond of equivalent term and curren¢y lo the liabilities. The acluaTial valuations are obtained al least triennial alld are updated al each Balance Sheet dale. The amounts charged lo operating surplus are the current service costs and the costs of scheme inlroduclions, benefit changes, selllemen15 and curtailments. They are included as part of staff costs as incurred. Nel interest on the nel defined benefi'l liabililylassel is also recognised in the Slalement of Financial Activities Incorporating Income and Expenditure Account and comprises the inleresl Cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets 8t the beginning of the period by the rale used to discount the benefit obligations. The difference bolw6en the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losyes. Psge 28
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Accounting pollcles Icontlnuedl 2.17 Fund accounting General funds are unreslricled funds which are available for use at the discretion of the Directors in furtherance of the general objectives of the Group and which have not been designated for other purposes. Endowmenl funds comprise of investments established by a foundation that makes consistent withdrawals from invested capital. Restricted funds are funds which are lo be used in ac¢ord8n¢e with specific reslriclions imposed by donors OT which have been raised by the Group for particular purposes. The costs of raising and administering such fvnds are charged against the specific fund. The aim and use of each restricted fund is sel out in the notes lo the financial slalements. Investment income, gains and losses are allttated lo the appropriate fund. Critical accounting estimates and areas of judgment Estimates and judgments are Continual ev8lualod and are based on historical experience and other faclors, including expectations of future events that are believed to be reasonable under the CITcumslances. Critical accounting eslimales and assumptions.. The Company makes estimates and assumptions conceTning the lulure. The resulting accounting estimates and assumptions will, by definition, seldorn equal the related aolual results. Income from donations and lega¢ie$ Unrestricted RestrScted funds funds 2020 2020 £000 £000 Total funds 2020 £000 Total fui)ds 2019 £000 Donations 29 29 222 100 251 Legacies Government grants 55 167 258 258 342 167 509 351 Tolal 2019 18 333 351 Page 29
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarante&l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Income from charitable activities Unrestricted funds 2020 £000 Total funds 2020 £000 Total fu17ds 2019 £000 School fees - see note 6 below Catering ,Music & travel Income Other Educational Income 7,995 426 7,995 426 174 8, 729 573 174 250 Total 2020 8.595 8,59S 9,552 Tot812019 9,552 9,552 Charltable Activities School Fees 2020 £000 2019 £000 Gross Fees Bursaries, scholarships & other awards 8,705 17101 9.587 1858) 7,995 8, 729 Income from other trading activities Income from fundraising events Unrestricted funds 2020 £000 Total funds 2020 £000 Total funds 2019 Lellings 40 40 67 Total 2019 67 67 Page 30
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company Simited by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Investment income Unrestrlcted Restricted funds funds 2020 2020 £000 £000 Total funds 2020 £000 Total funds 2019 Rental income from investment properties Income from inveslrllenls listed on a recognised slo¢k exchange Investment income - local cash 15 15 17 52 10 57 109 10 106 77 57 134 123 Total 2019 72 51 123 Other Incomlng resources Unrestricted funds 2020 £000 Total funds 2020 £000 Tol81 funds 2019 £000 MISlIaneOUS income 48 48 64 Total 2019 64 64 Page 31
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 10. Investment management costs Unrestricted funds 2020 £000 Restricted Endowment lunds fLsnds 2020 2020 £000 £000 Total funds 2020 £000 Total fundg 2019 Investment management fees Expenditure on investment managerllent 21 23 12 22 24 Tolol 2019 32 io 24 11. Analysis of expenditure on charitable actlvltles Summary by fund type Unrestricted funds 2020 £000 Restricted funds 2020 £000 Total funds 2020 £000 Total funds 2019 £000 Teaching and scholastic resources Eslales Welfare and Catering Support costs and governance 5,952 1.061 433 1,365 19 178 5.971 1.239 433 5. 738 1.288 578 40 1,405 1,536 8,811 237 9,048 9, 140 Tolal 2019 8,997 143 9. 140 Page 32
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA Company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 12. Net In¢omelexpenditure This is slated after charging.. Group 2020 £000 Gup 2019 £000 Operating lease rentals Depreciation of tangible fixed assets Auditors remuneration Other services 21 453 10 21 401 489 436 13. Staff costs Group 2020 £000 Group 2019 £000 Company 2020 £000 Compgny 2019 £000 Wages and salaries Social security costs Contribution lo defined contribution pension scheme5 4,614 444 4.490 432 4,614 444 4,490 432 1,099 790 1,099 790 6.157 5, T12 6,157 5, 712 The average number of persons employed by the Company during the year was as follows.. Group 2020 No. Gn)up 2019 No. Teaching Estates Administration 121 117 27 21 20 169 164 Page 33
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limSted by guarante61 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 13. Staff costs Icontinuedl The 8veTage headcounl expressed as full-time equivalents was. Group 2020 Group 2019 No. Teaching Eslales Administration 92 90 17 18 19 129 724 The number of employees whose employee benefits lexcluding employer pension ¢ostsl exceeded £60,QOO was.. Group 2020 Group 2019 No. In the band £60.001- £70,000 In the band £70,001- £80,000 In the band £80,001 - £90,000 In the band £90,001- £100,000 In the band £100,001 - £200,000 14. Directors, remunoratlon and expenses During the year, no Directors received any remuneration or other benefits (2019 - £NIL). During the year ended 31 August 2020, no DirectOT expenses have been incurred {2019- £NIL). Page 34
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED {A Company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Tanglble flxed assets Group Freehold property £000 Plant and machinery £000 Motor vehlcles £000 Total £000 Cost or valuation Al 1 September 2019 Additions 15,030 114 1,379 107 33 16,442 221 At 31 August 2020 15.144 1,486 33 16,663 Deprèciation Al 1 September 2019 Charge for the year 3.282 278 879 33 4,194 454 176 Al 31 August 202D 3,560 1,055 33 4,648 Net book value At 31 August 2020 11.584 431 2.015 At 31 August 2019 11,748 500 12.248 Page 35
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limitad by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 15. Taiigiblè fixed assets {continuedl Group Icontinuedl Company Freehold property £000 Plant and machinery £000 Motor vehicles £000 Total £000 Cost or valuation At 1 September 2019 Additions 14,934 114 1.379 107 33 16,346 221 Al 31 August 2020 15,048 1,486 33 16.567 Depreciation At 1 September 2019 Charge for the year 3,282 278 879 176 33 4.194 454 Al 31 August 2020 3,560 1,055 33 4,648 Net book value Al 31 August 2020 11.488 431 11.919 Al 31 August 2019 11,651 500 12, 151 Page 36
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company 1Smited by guaranteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 16. Investment propèrty Group Freehold investment property £000 Valuation Al 1 September 2019 620 Al 31 August 2020 620 The 2020 valuations were made by the Directors, on an open market value for existing use basis. Investment properties in Wolverhampton Grammar School 1958 Appeal Fund have been valued by the Directors al open market value as al 31 August 2020. The historic costs of revalued investment properties are £393k12018.. £393kl. 17. Fixed asset investments other fixed Llsled asset investinents Investments £000 £000 Total £000 Group C05t or valuation Al 1 Seplember 2019 Additions Disposals Revaluations 4,107 879 173 4,280 879 19591 1181 19591 so 1681 At 31 August 2020 4,078 105 4.183 Net book value At 31 August 2020 4,078 105 4,183 Al 31 August 2019 4, 107 173 4,280 Page 37
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 17. Fixed asset investments Icontinuedl Listed investments £000 Company Cost or valuatlon Al 1 September 2019 Disposals Revaluations 320 {131 At 31 August 2020 293 Net book value At 31 August 2020 293 Al 31 August 2019 320 18. Stocks Group 2020 £000 10 Group 2019 £000 Company 2020 £000 10 Company 2019 stocks 19. Debtors Group 2020 £000 Group 2019 £000 Company 2020 £000 Company 2019 Due within one year Tr8de deF)tors Other debtors Prepayments and accrued income 89 174 83 165 51 95 43 50 25 184 184 114 235 401 247 374 Page 38
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company1Smit&d by guaranteol NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 20. Creditors: Amounts falling due within one year Group 2020 £000 Gll)up 2019 Company 2020 £000 Company 2019 £000 Fees in advance Trade creditors Other laxalion and social security Other Creditors Accruals 676 713 458 108 136 676 184 110 713 186 110 145 181 456 108 136 420 147 176 423 1,298 1,838 1.293 1,833 21. Creditors.- Amounts falling due after more than one year Group 2020 £000 Group 2019 £000 Company 2020 £000 Comp&ny 2019 £000 Payments received on aOUnt 32 32 32 32 A fixed charge is in place as security against BACS and Direct Debil F8¢ilily requirements of Wolverhampton Grammar School Limited. Page 39
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22. Statement of funds Statement of funds - cuttent year Balance at 1 Septèmber 2019 £000 Balance at Gainsl 31 August (Losses) 2020 £000 £000 Income Expenditure £000 £000 Unrestricted funds Undesignaled IAF General Revaluation Reserve Wilson Fund Designated- Foundation Bursary Pension reserve 13,353 2,176 324 88 9.048 S1 18,6461 149 14 {491 13,769 2,129 324 81 191 86 18211 1121 74 11,1941 12571 15,206 9,101 18,8231 13011 15,183 Endowment funds Specie Funds IAF Ivy Jones Endowed Fund 212 289 212 114) 274 501 1141 486 Restricted funds General Prize Fund Wolfson Fund Gym Refurb Donation Martin Bequest OW Sports Scholarship IAF Bursary Catering Capital Donation WGS Lab DOnatn Ivy JonÈs Award Fund Foundation Bursary Fund 127 242 132 210 1191 1201 174 882 151 62 16 120 1151 1211 11051 {27} 1131 151 1401 121 1201 219 857 162 so 23 170 19 490 157 22 458 2,307 224 12451 1441 2,242 Total of fLtnds 18,014 9,32S 19,0691 (3591 17,911 Page 40
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limlted by guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22, Statement of funds Icontinuèdl ststement of funds - prior year Balance al I Sepleinber 2018 Balance al 31 August 2019 £000 Gain (Losses) Inconje Expendilure £000 Unrestricted funds Undesignaled IAF General Revaluation Reserve Wilson Fund Designated - Foundation Bursary Pension reserve 12.471 2,114 324 9. 707 63 (8,835) (56) io 13.353 2,776 324 89 (i) (2) 88 900 (490) (14) (103) 86 (821) (228) 14,6Q8 9,772 19,0091 (165) 15,206 Endowment funds Specie Funds IAF Jones Endowed FLJnd 212 287 212 289 (2) 499 121 501 Page41
WOLVERHANPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 22. Statement of funds {continuedl Statement of funds - prior year Icontinuedl Balance al I Seplfymbei 2018 £000 Balance al 31 Augusl 2019 £000 Gains/ (Losses) Income Expendilure £000 Restricted funds General Prize Fund Wolfson Fund Gym Refurt) Donation Martin Bequest OW Sports Scholarship IAF Bursary Catering Capital Donation WGS Lab Donation Ivy Jones Award Fund Foundaliori Bursary Fund 119 254 127 (19) 242 170 875 90 120 86 18 306 (1? (14) (15) (70) 174 882 21 62 14 151 50 170 95 19 207 (23J 490 2.040 384 11531 36 2,307 Total of funds 17,147 10, 156 {9, 164) (125) 18.014 Page 42
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 23. Statèment of funds Icontlnuedl Unrestrlcted Funds Unreslricled Funds are held with the inlenlion that they fund ongoing general purpose expenditure. The Wilson Fund- a designated fund lor the benefit of sludents at the discretion of the Head. Independence Appeals Fund IIAFI.. IGenerall - These monies were Talsed by appeal when the school was given notice by local government of their intention lo cease lo maintain the school. The purposes of the appeal were to raise £180.000 for new buildings and Ihe balan of sums Taised to provide financial assistance for children who olheTwise would be unable lo allend WolveThamplon Grammar School. Endowment Funds IAF Ivy Jones Endowed Fund an endowed fund under the terms of Professor Douglas Jones, (Old Wulfrunianl will. A legacy has been lell lo the Appeals Funds for the express purpose of providing bursary assistance for able pupils whose parents could not otherwise afford lo send their children lo the School. Any bursary awarded is lo be designated as an 'lvy Jones Award. in honour of Prof Jones. late wife. Under the terms of the will. the c8Pltal of the legacy is required lo be maintained unless certain circumstances are reached whereby some or all of the capilal may be spent. The SpecAe Endowment Fund - relates to the historical costs of land and buildinos held by the Foundation as specified in the 1979 Scheme of Government. Restricted Funds General Prize Funds - Thes¢ represent a large number of individual donations gnien for the putpose of awarding prizes for achievement. The Wolfson Fund- This fund is for the purpose of Ihe award of bursaries lo sixth form pupils. Independence Appeals Fund IIAFI.. (Bursary) - Thege monies were raised by appeal when the school was given notice by local government of Iheir intention lo cease lo maintain the school. The purposes of the appeal were lo raise £180,000 for new buildings and the balance of sums raised to provide financial assistan for children who otherwise would be unable to allend Wolverhampton Grammar School. The Sharing The Vision Appeal was launched in 1998 in response to the government's decision to phase out the Assisted Places Scheme. The purpose of this appeal was to provide financial assislance with fees lo those children who would previously have benefited from the Assisted Places Scheme and who wilhoul such help would be unable to attend Wolverhampton Giammar School. This appeal forms part of the Independence Appeals Fund. Independen Appeals Fund.. {The Martin Bequesll The Martin Bequest is a reslricled fund whi¢h has been sel up lo provide a bursary prize or prizes for students studying for or proceeding to AS1ied Medical Sciences or such other subjects as the governing body of the school shall al its discretion think fil. Independence Appeals Fund.. (The Old Wulfrunian Sports Scholarship Fund) The Old WulfrLJnian Sports Scholarship Fund is a reslricled fund which has been donated lo provide a means lesled Sports SGholarship lo a student lor sludenlsl living in the Wolverhampton poslcode area who joins Ihe school into the Sixth Fom and who is able to demonstrate considerable sporting achievement. Page43
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Catering Capital Donation Fund.. The School's catering contractors provided a donation towards the refurbishment of the dining areas al the commencement a five year contract with them in September 2015. Depreciation is being charged against the donation fund over the expected life of the refurbishment in accordance with the deprecation policy. WGS Lab Refurbishment Fund.. Donations have been received from the Old Wulfrunians in America specifically for the refurbishment of the Chemistry Laboratories, which were completed Èt the end of August 2018 Depreciation is being charged against the donation fund from over the expected life of the refurbishment in a¢¢ordance with the deprecation policy. Ivy Jones Award Fund.. Income generated from the IAF Ivy Jones Endowed Fund is credited lo tha Ivy Jones Award Fund, a Teslricled fund, which is used for bursary assistance. Foundation Bursary Fund.. These monies were raised as part of the Current fundraising strategy lo provide 1000A bursaries lo students in financial need entering Year 7, making full provision for a full 7 years of edu¢alion al Wolverhampton Grammar School if required. 24. Analysis of net assets between funds Analysis of net assets between funds - current perlod Unrestricted Reslrlcted Endowment funds funds funds 2020 2020 2020 £000 £000 £000 Total funds 2020 £000 Tangible fixed assets Fixed asset inveslmenls Investment property Current assets Creditors due within one year Creditors due in more than olle year Provisions for liabili11&s and charges 11,816 2,091 620 3,180 11.300) {321 {1,1941 200 12,016 4,183 620 3,616 11,3001 1321 {1.1941 1,806 436 Total 15,181 2.242 486 17.909 Page 44
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 24. Analysis of net assets between funds Icontinuedl Analysis of net assets between funds - prior period Unreslricled funds 2019 £000 R&slricled Endowment funds funds 2019 2019 £000 Total funds 2019 £000 Tangible fixed assets Fixed asset investments Investment property Current assets Creditors due within one year Creditors due in more than one year Prtsmsions for liabilities and charges 12,036 1,999 620 212 289 12.248 4,280 620 3.556 {1.837J (S2) (821) 1,992 3,241 {1,8371 1321 {8211 315 601 18,014 Total 15,206 2,307 Page 45
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 25. Pension commitments Certain of the school's employees belong lo the Teacher's Pension Scheme England and Wales ITPSI. the Wesl Midlands Metropolitan Authorities Pension Fund ILGPSI and The Independent Schools. Pension Scheme IISPSI. These schemes are defined benefit schemas. From July 2014. the School introduced a new s¢heme lo the members of the Support Staff not currently in a pension run by the Peoples Pension. This is a defined contribution scheme. Introductlon The Teachers. Pension Scheme (TPSI is a stslulory. conlribulory, defined benefit scheme, governed by the Teachers, Pension Scheme Regulations 2014. Membership is automatic for full-lime teachers in acad&mies. All teachers have the option lo opt-oul of the TPS following enrolment. The TPS is unfunded scheme lo which both the member and employer makes contributions, as a percentage of salary - these contributions are credited lo the Exchequer. Retirement and other pension benefits are paid by public funds provided by Partiamenl. Valuation of the Teache. Pension Scheme The Government A¢tuary, using nomal acluarial principles, conducts a formal actuarial review of the TPS in accordan with the Publi¢ servi Pensions (Valuations and Employer Cost Capl Directions 2014 published by HM Treasury every 4 years. The aim of the review is lo specify the level of future conlribulions. Actuarial scheme valuations aTe dependent on assumptions about the value of future costs design of benefits and many other factors. The lalesl actuarial valuation of the TPS was carried out as ai 31 March 2016. The valuation report was published by the Dep8rtmenl for Edu¢alioll on 5 March 2019. The key elements of the valualion and subsequent consultation 8re'. employer contribution rates sel al 23.680A of pensionable pay (including a 0.08Vo adminislralion levyl. the SCAPE rate. sel by HMT, is used lo delemine the notional investment return. The ¢urrenl SCAPE rat8 is 2.40/0 above the rale of CPI. assumed real rate of return is 2.40h in excess of prices and 21/10 in excess ol earnings. The rale of real earnings growth is assumed lo be 2.2DA. The assumed nominal rale of return including earnings growth is 4.45°kn. The next valuation result is due lo be implemented from 1 April 2023. The employer's pension costs paid to TPS in the year amounted lo £767,94212019- £523.995). A copy of the valuation report and supporting documentation is on the Teachers, Pensions website Ihllps'.Ilww.lea¢herspensions.co.uklnewslemployers12019104Aea¢hers-pensions-valualion-report.aspxl. Under the definitions sel out in FRS 102, the TPS is an unfunded mulli-employer pension scherne. The Academy Trust has accounted for ils wnlributions lo the scheme as if il were a defined contribution scheme. The Academy Trust has sel out above the information available on the schem&. Independent Schools Pension Scheme The School participates in the TPT Retirement Solutions Independent Schools. Pension Scheme, a mulli-employer scheme which provides benefits lo associated employers. The scheme is a defined benefit scheme in the UK. 11 is not possible for the School lo obtain sufficient information lo enable il 10 8ccounl for the s¢heme as a defined benefit scheme. Therefore il accounts for the scheme as a defined contribution scheme, Page 46
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED {A ¢ompany limited by guaranteal NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 25. Pension commitments Icontinuedl The scheme is subject to the funding legislation outlined in the Pension Act 2004 which came into foTce on 30 December 2005. This, together with documents issued by the Pension5 Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework lor funding defined benefit occupatsonal pension schemes in the UK. Participating employers are leg811y required lo meet their share of the scheme deli¢il on an annuity purchase basis on wilhdr2wal from the scheme. During the accounting period, Wolverhampton Grammar School paid a joint contribution rate of 23.141A, comprising employer contributions of 15.7Yo and member contributions range from 3.50fi 10 6.60h. The total contribution made for the year ended 31 August 2020 was £48,00412019'. £44,152), ofwhich the lolal ¢mployer's contributions lotalled £37,450 12019". £33,550), the employees. contributions tolalled £10,55412019.' £10,602) and past SeN1 costs of £53,512 {2019. £54,074). The Group operates a defined benefrt pension scheme. Local Government Pension Scheme ILGPSI Tho LGPS is a funded defined benefit scheme, wilh the assets held in separate Iruslee- administered funds. The lolal contribution made for the year ended 31 August 2019 was £119,00012019.. £101,000), of which employer's contributions lotalled £86,000 12019.. £72,000) and employees. contributions lolalled £33,000 12019.. £29,000). Al the year end £10,781 12019.. £8.8591 was accrued in respect of contributions to this scheme. The pension costs are assessed in accordan with the advi of independent qualified actuaries, The lalesl actuarial valuation of the LGPS was 31 March 2019. Principal actuarial assumptions al the Balan sheet dale lexpressed as weighted averages).. At 31 At 31 August August 2020 2019 Discounl rale Future salary increases Future pension increases 1.60 3.30 1.80 3.80 2.30 2.30 Page 47
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limitad by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 25. Pension Gommitments Icontlnuedl At 31 Al 31 August August 2020 2019 Years Yeafrs Mortality rates lin y8ar81 - for a male aged 65 now al 65 for a male aged 65 now - for a female aged 65 now - al 65 for a female aged 65 now 21.9 23.8 24.1 20.9 22.6 23.2 25.1 26.0 The Group's share of the assets in the scheme was.. At 31 Al 31 August August 2020 2019 £000 £000 Equities Gilts 1.718 332 1,801 284 113 245 108 445 Other bond8 Property Cash and other liquid assets Other 119 231 203 457 Total fair value of assets 3,060 2,996 The actual retum on scheme assets was £290.000 (2019- £182,1). The amounts recognised in the Consolidated statement of financial aclmlies are as follows., 2020 £000 2019 Current service Gosl Interest cost Administrative expenses Total amount rocognised In the Consolldated statement of financial aclivltles 188 763 14 202 175 Page 48
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 25. Pension commitments Icontinuedl Movements in the present value of the defined benefit obligation were as follows.. 2020 £000 Opening defined benefit obligation Interest cost Contributions by scheme participants Benefits paid Current service cost 3,817 69 33 501 186 Past Servi cost Acluarial gains 199 Closing defined benefit ob5igation 4,254 Movements in the fair value of the Group's share of scheme assets were as follows.. 2020 £000 Opening fair value of scheme assets Interest income Contributions by employer Contributions by scheme participants Benefits paid Administration expenses Actuarial losses 2,996 55 86 33 1501 121 1581 Closlng fa5r value of scheme assets 3,060 Page 49
WOLVERHAMPTON GRAMMAR SCHOOL LIMITED {A company Ilmlted by guarant•81 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 26. Operatlng lease commitments Al 31 August 2020 the Company had commitments to make fulure minimum lease payments under non- cancellable operating leases as follows.. Group Group 2019 (As Resl8led) Company Company 2019 (As Reslaled) 2020 £000 2020 £000 Not later than 1 year Later than 1 year and not later than 5 years Later Ihan 5 years 26 21 65 26 21 50 34 65 36 34 36 110 122 110 122 27. Related party transactlons During the year, the School provided luilion lo 7 pupils related lo the Directors and 4 pupils related lo key management personnel {2019'. 6 related lo the Directors, 4 related lo key management personnell. Fees receivable were £79,851 12019.. £100,827). The amount oulslanding to Wolverhampton Grammar School at the year end was £Nil12019'. £Nill. Page 50