OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-08-31-accounts

The Sedbergh School Foundation

REPORT AND FINANCIAL STATEMENTS For the year ended 31 August 2020

Charity number: 1176189

The Sedbergh School Foundation PROFESSIONAL ADVISORS

Bankers Barclays Bank Plc
1stFloor
3 Hardman Street
Spinningfields
Manchester
M3 3HF
Independent Examiner RSM Tax and Accounting Limited
Chartered Accountants
3 Hardman Street
Manchester
M3 3HF
Property Advisors Hackney & Leigh
3 Market Square,
Kirkby Lonsdale,
Lancashire,
LA6 2AN
Investment Managers Ruffer LLP
31 Charlotte Square
Edinburgh
EH2 4ET

The Sedbergh School Foundation TRUSTEES’ REPORT

The Trustees present their report for the accounting year ending 31 August 2020.

CONSTITUTION

The Sedbergh School Foundation is registered as a Charitable Incorporated Organisation (CIO), Registered Number 1176189. Formerly The Old Sedberghian Trust Fund (1953), it was then constituted by Deed of Trust established on 24 September 1953 as a registered charity, number 529904, until 28 June 2018 when it became the current CIO.

The grant making activities of the Trust are approved by the Trustees at full committee meetings. The principal office of the charity is at Sedbergh School, Sedbergh, LA10 5HG.

TRUSTEES

The Trustees serving during the period ended 31 August 2020 were:

Mr A J N Bedford (Chairman and Governor of Sedbergh School) Mr J C Van der Velde (Chairman of the OS Club) ex officio member Mr A W Smith (member of Audit Committee) Mr M C Baker (member of Audit Committee) Mrs L Bates (Governor of Sedbergh School) Mr M W Stephenson (resigned 13 January 2020) Mr H Bagot Mr A Fleck (Principal of Sedbergh School) ex officio member Mr R Gledhill (Chairman of the Governors Executive Committee of Sedbergh School) ex officio member

Mr I Durrans (Governor of Sedbergh School) was appointed as a Trustee on 09 October 2020.

OBJECTIVE

The purpose of the Foundation CIO is to promote and/or improve the education given at Sedbergh School, or the facilities thereof, or the amenities thereof, or the well-being of the pupils educated there, in relation to their education either at the school or at some other place of education, after leaving the school, and wider educational initiatives which benefit young people.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational Structure

The Board of Trustees usually meets three or four times a year with meetings held in London and virtually via Zoom in the Summer of 2020 because of the COVID-19 pandemic. The Board receive papers a week in advance of each meeting which include a report from the Director which incorporates the Finance Report including the management accounts.

Sub Committees

The Audit Committee considers items including investments, annual accounts and governance issues and makes recommendations to the full board of Trustees.

Recruitment of Trustees

The CIO has three ex-officio posts, these being: the Principal, the Chairman of the Governors Executive Committee and the Chairman of the OS Club. The Chairman of the Foundation must also be a Governor of Sedbergh school and Governors have the authority to appoint one other Trustee.

Trustees are appointed for a three-year term and are expected to stand down after their second term unless there are specific reasons for not doing so. Recruitment of Trustees is carried out by asking for nominations from existing and retiring Trustees, the OS Club, the Principal and the School’s Governors. Potential new Trustees are briefed by the Chairman and the Director; provided with the charity's statutory documents and recent papers, and relevant Charity Commission publications; and advised where to make further enquiries.

Delegated Authority

The Director has certain powers of delegated authority to run the organisation on a day to day basis. These delegated powers are reviewed and set by the Audit Committee under the Scheme of Delegation.

All cheques and internet banking payments require two signatures, the Director and The Foundation Accounts Manager. For amounts over £30,000 the Chairman must give approval.

1

The Sedbergh School Foundation TRUSTEES’ REPORT

Statement on Public Benefit

The Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and have complied with the duty in section 17 of the Charities Act 2011. Trustees have studied the guidance issued by the Charity Commission and are satisfied that the charity continues to provide public benefit through its work with Sedbergh School, particularly in fundraising for bursaries and in the provision/refurbishment of key facilities, many of which are important for the local community as well as for the School. The Foundation also helps the pupils of the School to fundraise for other charitable causes as part of their education.

The constitution of the Foundation as a Charitable Incorporated Organisation has broadened the objects to allow the Foundation to support “wider educational initiatives” to encompass schemes such as CECATS (Cumbria Education Centre for Advanced Technology and Science).

REVIEW OF ACTIVITIES AND FUTURE DEVELOPMENTS

The Trustees aim to provide selective, targeted, financial and other support for the work of the School in the communities it serves. In the period under review, the Foundation's principal activities included:

The Roger Lupton Scholarship Appeal

The Foundation continued to raise funds for the Roger Lupton Scholarships providing up to 100% of the fees of pupils who would not otherwise be able to receive an education at Sedbergh. The appeal was launched in June 2012 and has raised over £1m to date. There were seven young people who were beneficiaries of Roger Lupton Scholarships present in the School during the period.

The Big Give Christmas Challenge again provided the opportunity to generate significant funds towards the scholarship programme in December, thanks to the support of donors pledging the initial matching funds in collaboration with the Reed Educational Trust. In total, with additional donations made towards the appeal after it had finished, over £40,000 was raised.

Owing to the Covid-19 pandemic, we were unable to run a Challenge Week initiative (which in the previous financial year raised £41,000 in cash and pledges). We hope to run this initiative again in future years.

The Chapel Appeal

The Foundation continued to collect pledged funds towards this appeal during the year, which has raised over £53,000 in total. Works on this project were delayed owing to the pandemic, but have since taken place in 2020.

Other Major Activities

In advance of the School’s 500[th] Anniversary in 2025, the Foundation is planning a £5m quincentenary campaign which will encompass 3 major projects: A Design & Technology Centre, a Green Fund to focus on reducing carbon emissions across the School site and Roger Lupton Scholarships.

An emergency response appeal was launched in April 2020, to raise funds for Sedbergh School families and members of the local community who had found themselves in financial difficulty because of the pandemic. Over £90,000 was raised inclusive of Gift Aid. Funds raised have provided emergency bursary support to families and £5,000 was donated towards the community for hardship alleviation activities coordinated by the town.

At the start of the year, a small fundraising appeal for Rugby was launched with a target of £40,000 to be split between a chosen educational rugby charity in South Africa with whom the School has valued links and Rugby at Sedbergh School. £63,000 was raised during the year.

Casterton Sedbergh Prep School

The Friends of Casterton Prep School continue to raise funds for projects at Casterton Sedbergh Prep School, though few events were held during the year and no significant grants were disbursed.

The Foundation received donations towards technology outreach projects being run at Casterton during the year.

The 1525 Legacy Society

The 1525 Society had to cancel its planned annual lunches this year owing to the pandemic. Towards the end of the year, 2 members passed away who have pledged significant legacies to the Foundation.

2

The Sedbergh School Foundation TRUSTEES’ REPORT

Investments

The Foundation continues to use the services of Ruffer Investment Co. to maintain a mixed portfolio to ensure the returns and security of the investments are maximised. There are two funds held by Ruffer. One is specifically an endowed fund for scholarships and bursaries where income generated is used for supporting pupils who would not otherwise be able to afford the fees and a percentage is retained to maintain the level of the endowment compared to fees. The second one is a general investment fund.

There was one additional share transfer received into the investment accounts during the year of £10,950 of Scottish Mortgage Investment Trust shares. No withdrawals were made during the year.

Future Developments

The Foundation has received detailed plans from the School relating to identified projects for the 500[th] Anniversary campaign and it is anticipated this major campaign will begin in 20/21.

For FY 20/21, the following targets have been set:

To raise a minimum of £150,000 towards Scholarships and Bursaries, namely the Roger Lupton Scholarship Appeal. To raise a minimum of £100,000 towards the 500[th] campaign, with pledges of a value close to £1m.

FINANCE AND ADMINISTRATION

The Foundation employs an external Accountant to administer financial activities on a day to day basis, with additional resources administered by the Bursary team at Sedbergh School, particularly with regards to security of delegated powers for online banking.

Financial

The income for the period totalled £438,164 (2019: £528,202), which was lower than the previous year. This reduction was due to a sudden reduction in event income and lower donation values because of the financial impact of the pandemic on our donors.

Grants Payable

The Foundation Trustees raise money to support the School by giving grants. These grants are made from unrestricted funds, except where donations have been made for a specified purpose. Grant requests are made by the Principal of the School to the Foundation. Where grants are to be made solely out of restricted funds, the Chairman of the Trustees has delegated authority to approve these. If the grant is to be made out of restricted and unrestricted or entirely unrestricted funds, the request is put to the Trustees at their next meeting or by email if the commitment is required in between meetings.

The following grants totalling £174,950 were made to the School and other charitable organisations during the period (2019: £236,313).

Scholarship & Bursary Funds
Sports Funds
Hardship 2020
Library
House Funds		 School
Other
£
£
149,407
-
3,197
522
-
5,000
10,667
-
6,157
-
169,428
5,522

Of total grant payments of £174,950 (2019: £236,313), £nil (2019: £8,750) is unrestricted and £174,950 (2019: £227,563) is restricted expenditure.

A number of restricted funds continue to be held by the Foundation for projects which had not been completed at the end of the financial period. These included the House Funds, Capital Projects, the emergency Hardship Appeal, the Rugby fundraising project and funds for Scholarships and Bursaries.

Endowments

The Foundation holds one endowment of £7,500 from which grants are made for the support of environmental and conservation projects, particularly for the Sedgwick Society.

A separate investment account for endowments is now held by Ruffer which was established with £150,000 made up of the previous endowment of £25,000 and a donation of £125,000.

The value of the endowed funds at the end of August 2020 was £169,532.

3

The Sedbergh School Foundation TRUSTEES’ REPORT

Staff Changes

A Development Intern was recruited in August 2018 for an initial period of 6 months to work with the Foundation and the OS Club on data quality and communications. His contract was made permanent after the 6 month period. He resigned this post in April 2020, and owing to budget cuts related to revised forecasted income for the final quarter of the year, he was not replaced.

RISK MANAGEMENT POLICY

The Trustees regularly examine the major risks that the Foundation faces and seek to ensure that adequate systems are in place to minimise such risks. The Main risk identified would be a fall in donation income. This would be managed by a reduction in the number (or value) of grants paid out. The Audit committee have reviewed the previous policy and have updated this. The trustees have considered the effect of the COVID-19 pandemic on income and are satisfied that current risk management policies and procedures in place will suffice .

INVESTMENT AND RESERVES POLICY

The Investment Committee appointed Ruffer to manage the Foundation’s investments. There were two funds established one restricted for endowments and a general fund.

The Trustees’ policy remains, however, to ensure that they can maintain a balanced budget to cover annual expenditure requirements and funding of specific projects, which are the subject of special appeals.

The Foundation carries out a periodic review of anticipated income from general or specific appeals and outgoings from planned donations. In the light of this review allocation of resources is made to:

Total current assets were £257,668 as at 31 August 2020 (2019: £161,370) mainly held in short term liquid investments, namely bank deposits.

The investment strategy for the Foundation funds under management is one of long term capital preservation. The role of the Audit Sub-Committee is to monitor performance and make recommendations to the Trustees. The Foundation funds under management were valued at £795,751. Overall, managed funds gained £42,000 in value over the period.

Long Term investments include the ownership of Guldrey Lodge which was valued by Hackney & Leigh at £400,000 on 17 January 2020 (2019: £400,000). The Trustees intend to hold this investment for the future benefit of the School and the current lease runs for 99 years. The Trustees estimate the market value at the year-end to be in line with the valuation, and therefore have recognised this valuation as market value within these financial statements. The trustees have agreed that they will get new valuations every 5 years as the figure does not materially affect the accounts or the running of the organisation. The next valuation will take place in 2024/5.

The total funds held by the Foundation at the year end were £1,439,223 (2019: £1,300,426), including restricted and endowed funds of £940,136 (2019: £785,309). These included cash balances of £222,670 (2019: £117,225) and investments, including property, of £1,202,457 (2019: £1,149,118).

The Trustees continue to monitor reserves closely should there be a reduction in the level of general fund donations to ensure that sufficient reserves are available to cover direct charitable expenditure, administration costs, fundraising costs, and support costs, without which the Foundation could not function. The reserves target is set at six months’ day to day operating expenditure, which is assessed every quarter. The current level of unrestricted reserves at the year end amounted to £499,087 which is over 6 times the amount required.

Approved by the Board of Trustees on 27 January 2021 and signed on its behalf by:

AJN Bedford Chairman

4

The Sedbergh School Foundation STATEMENT OF THE TRUSTEES’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

5

The Sedbergh School Foundation

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE SEDBERGH SCHOOL FOUNDATION CHARITY

I report to the Trustees on my examination of the accounts of The Sedbergh School Foundation (‘the charity’) for the year ended 31 August 2020, which are set out on pages 7 to 17.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).

I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed

Name: John Guest

Name of applicable listed body: The Institute of Chartered Accountants in England and Wales Relevant professional qualification or membership of professional body: Chartered Accountant

ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED

Chartered Accountants 3 Hardman Street Manchester M3 3HF

Date:

6

The Sedbergh School Foundation STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2020

Unrestricted Restricted Endowed
Notes Funds
2020		 Funds
2020		 Funds
2020		 Total Funds
2020		 Total Funds
2019
£ £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies 1a 81,749 304,077 - 385,826 463,063
Investments 1b 52,338 - - 52,338 65,139
——— ——— ——— ——— ———
TOTAL 134,087 304,077 - 438,164 528,202
——— ——— ——— ——— ———
EXPENDITURE ON:
Raising funds 2 143,317 16,689 - 160,006 205,928
Charitable activities 3 - 174,950 - 174,950 236,313
Governance costs 6,800 - - 6,800 5,120
——— ——— ——— ——— ———
TOTAL 150,117 191,639 - 341,756 447,361
——— ——— ——— ——— ———
Net gains / (losses) on investments 4 - 33,119 9,270 42,389 11,433
Revaluation of investment property 5 - - - - 4,665
——— ——— ——— ——— ———
NET (EXPENDITURE) / INCOME (16,030) 145,557 9,270 138,797 96,939
Funds transfer 10 - - - - -
——— ——— ——— ——— ———
NET MOVEMENT IN FUNDS (16,030) 145,557 9,270 138,797 96,939
——— ——— ——— ——— ———
RECONCILIATION OF FUNDS:
Total funds brought forward 515,117 625,047 160,262 1,300,426 1,203,487
———— ———— ———— ———— ————
Total funds carried forward 499,087 770,604 169,532 1,439,223 1,300,426
———— ———— ———— ———— ————

The accounting policies and notes on pages 9 to 17 form part of these Financial Statements. The activities of the Foundation are classed as continuing.

7

The Sedbergh School Foundation BALANCE SHEET As at 31 August 2020

Notes
FIXED ASSETS
Investment Property - Guldrey Lodge
5
Investments
4
CURRENT ASSETS
Cash and bank
6
Debtors
7
CREDITORS: amounts falling due within one year
8
NET CURRENT ASSETS / (LIABILITIES)
TOTAL NET ASSETS
9
FUNDS
Unrestricted funds
Restricted funds
Endowed Funds
10		 2020
£
400,000
802,457
———————
1,202,457
———————
222,670
34,998
——————
257,668
——————
(20,902)
——————
236,766
——————
———————
1,439,223
———————
499,087
770,604
169,532
———————
1,439,223
———————		 2019
£
400,000
749,118
———————
1,149,118
———————
117,225
44,145
——————
161,370
——————
(10,062)
——————
151,308
——————
———————
1,300,426
———————
515,117
625,047
160,262
———————
1,300,426
———————

These financial statements were approved by the Trustees on 27 January 2021 and signed on their behalf:

A J N Bedford Trustee

AW Smith Trustee

8

The Sedbergh School Foundation STATEMENT OF CASH FLOWS For the year ended 31 August 2020

2020 2019
£ £
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 138,797 92,274
(Gains) on investments (42,389) (11,433)
Investment income received (52,338) (65,139)
Decrease / (Increase) in debtors 9,147 (19,618)
Increase in creditors 10,840 3,438
——— ———
NET CASH (USED IN) OPERATING ACTIVITIES 64,057 (478)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 52,338 65,139
Proceeds from sale of investments - 70,000
Purchases of investments (10,950) (38,118)
——— ———
NET CASH FROM INVESTING ACTIVITIES 41,388 97,021
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR / PERIOD 105,445 96,543
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR / PERIOD 117,225 20,682
——— ———
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR / PERIOD 222,670 117,225
——— ———
REPRESENTED BY:
Cash at bank and in hand 222,670 117,225
——— ———

9

The Sedbergh School Foundation ACCOUNTING POLICIES for the year ended 31 August 2020

BASIS OF PREPARATION

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

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

The accounts have been prepared to give a “true and fair” view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a “true and fair” view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting Charities Statement of Recommended Practice effective from 1 April 2005 which has been withdrawn.

GOING CONCERN

The Trustees have considered the likely level of income and expenditure for the foreseeable future, and the immediate impact of the COVID-19 pandemic. As grants are only awarded to Sedbergh School when sufficient funds are available, this enables the Foundation to continue to be a going concern despite any potential impact of the COVID-19 pandemic. The Trustees are satisfied that the charity can meet its obligations as and when they fall due. Accordingly, the going concern basis of preparation is appropriate for these financial statements.

INVESTMENT PROPERTY

Investment properties are included in the balance sheet at market value or the trustees’ best estimate of market value.

Long Term investments include the ownership of Guldrey Lodge. The Trustees intend to hold this investment for the future benefit of the School and the current lease runs for 99 years. The trustees have agreed that they will get new valuations every 5 years as the figure does not materially affect the accounts or the running of the organisation.

VALUATION OF INVESTMENTS

a) Paintings & books

Paintings & books are included in investments at cost.

b) UK Listed Investments

All investments are valued at market value as follows:

iii) All realised and unrealised gains and losses at the period end are recognised within the statement of financial activities.

10

The Sedbergh School Foundation ACCOUNTING POLICIES for the year ended 31 August 2020

STATEMENT OF FINANCIAL ACTIVITIES

Incoming resources and application of resources are included as follows:

FUND ACCOUNTING

The Fund has various types of funds for which it is responsible and which require separate disclosure. These are as follows:

Unrestricted funds Funds which may be used for the general purposes of the charity. Restricted funds Donations or legacies received which are earmarked by the donor for specific purposes. Such purposes are within the overall aims of the charity.

Endowed funds Funds given to the Charity where the income may be used for general purpose but the capital must be retained.

LIABILITIES

Liabilities are recognised when the Foundation has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

FINANCIAL INSTRUMENTS

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

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the charity’s accounting policies, the trustee’s are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

KEY SOURCES OF ESTIMATION UNCERTAINTY

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

INVESTMENT PROPERTIES

The trustees have valued the investment property based on the latest valuation performed in January 2020 and have determined that this remains the most accurate valuation of the property at the year end.

11

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

1 INCOMING RESOURCES

1 a) Voluntary income and donations: 2020 2019
Unrestricted Restricted Total Total
£ £ £ £
General Fund 56,522 - 56,522 61,950
Events & Merchandice 5,574 - 5,574 14,193
Legacies 19,653 - 19,653 31,206
Bursaries & Scholarships - 104,059 104,059 153,055
Carus House - - - 1,620
Hart House - 381 381 2,498
Powell House - 11,185 11,185 1,266
School House - 2,708 2,708 1,454
Robertson House - 1,382 1,382 1,921
Sedgwick House - 3,344 3,344 2,565
Evans House - 2,245 2,245 8,287
Winder House - - - 1,342
Lupton House - 336 336 2,008
Casterton SPS House - - - 4,093
Casteton SPS School - - - 2,958
Rugby - - - 6,480
Cricket - - - 7
Netball / Hockey - - - 1,089
Chapel - 7,008 7,008 36,751
General Capital - 780 780 801
CECATS Centre - 4,125 4,125 28,100
Archive - 20 20 (820)
Friends of Casterton SPS - 3,670 3,670 14,399
Charity - - - 60
Library - - - 16,000
Equestrian - 522 522 -
Shooting - 945 945 1,260
Sailing - 15 15 -
Sports Centre - 2,270 2,270 68,520
Rugby 2020 - 63,183 63,183 -
Hardship 2020 - 95,899 95,899 -
——— ——— ——— ———
81,749 304,077 385,826 463,063
——— ——— ——— ———
1 b) Investment income is analysed as 2020 2019
follows: Unrestricted Restricted Total Total
£ £ £ £
Bank and building society interest 338 - 338 139
Rental income 52,000 - 52,000 65,000
——— ——— ——— ———
52,338 - 52,338 65,139
——— ——— ——— ———

Of the donation income received in the prior year of £463,063, £107,349 was unrestricted income and £355,714 was restricted income.

All investment income received in the prior year was included within unrestricted income.

12

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

2 TOTAL RESOURCES EXPENDED

TOTAL RESOURCES EXPENDED
2020 2019
Costs of generating voluntary income: £ £
Staff costs 86,972 106,234
Fundraising costs (restricted and unrestricted) 19,726 36,746
Other 53,308 62,948
——— ———
160,006 205,928
——— ———

Of expenditure on raising funds of £160,006 (2019: £205,928) £143,317 (2019: £193,379) was unrestricted and £16,689 (2019: £12,549) was restricted.

No Trustees or any persons connected with them have received any remuneration during the period. Total expenses of £148 (2019: £nil) were paid to 1 (2019: 0) Trustee. No depreciation provisions were charged during either period. Staff costs relate to 3 (2019: 3) staff members. Also included within staff costs above are employer’s national insurance contributions of £4,487 (2019: £5,732) and employer’s pension contributions of £7,279 (2019: £6,338). Governance costs include independent examiners remuneration totalling £6,800 (2019: £5,000) and all are unrestricted expenditure.

Staff Costs

No employees received emoluments, including benefits in kind, which exceeded £60,000.

Key Management Personnel

The foundation considered its key management personnel during the period to be the Foundation Director. The total employment benefits including employer NIC and pension contributions of the key management personnel were £64,835 (2019: £69,515).

3 GRANTS

Details of grants payable are disclosed within the Trustees’ report on page 3.

4 INVESTMENTS

INVESTMENTS
UK Listed Paintings & 2020 2019
Investments books Total Total
£ £ £ £
Market Value at 1 August 2019 742,412 6,706 749,118 769,567
Additions in period 10,950 - 10,950 38,118
Disposals at opening market value - - - (70,000)
Unrealised gain / (loss) on investments 42,389 - 42,389 11,433
——— ——— ——— ———
Market Value at 31 August 2019 795,751 6,706 802,457 749,118
––––––– ––––––– ––––––– –––––––
Material investments within the portfolio consist of: 2020 2019
£ £
Multi-Asset OEIC – Ruffer Absolute Return Fund 795,751 742,412
——— ———
795,751 742,412
——— ———

13

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

5 INVESTMENT PROPERTY

Land and Buildings – Guldrey Lodge

INVESTMENT PROPERTY
Land and Buildings – Guldrey Lodge
2020 2019
£ £
Market Value at 1 August 2019 400,000 395,335
Revaluation - 4,665
——— ———
Market Value at 31 August 2020 400,000 400,000
———— ————

A formal valuation was carried out as at 17 January 2020 by Hackney & Leigh, Chartered Surveyors, on the basis of open market value based on the assumed tenancy of Sedbergh School and this value was incorporated into the 2019 accounts. The Trustees have agreed that the valuation of the survey conducted in January 2020 would represent the Market Value rate for the period ending 31 August 2019.

6 AMOUNTS HELD AT BANKS

6 AMOUNTS HELD AT BANKS
2020 2019
£ £
Cash at bank 222,670 117,225
——— ———
222,670 117,225
——— ———
7 DEBTORS
2020 2019
£ £
Gift aid on donations reclaimable 18,641 41,613
Prepayments and accrued income 16,357 2,532
——— ———
34,998 44,145
——— ———
8 CREDITORS: amounts falling due within one year
2020 2019
£ £
Accruals and deferred income 6,587 6,462
Amounts owed to Sedbergh School (note 11) 13,005 2,040
Other tax and social security 1,310 1,560
——— ———
20,902 10,062
——— ———

9 ALLOCATION OF THE CHARITY’S NET ASSETS

Investment Other Net current
At 31 August 2020: Property Investments assets Total
£ £ £ £
Unrestricted funds 400,000 6,706 92,381 499,087
Restricted funds - 626,219 144,385 770,604
Restricted Endowed funds - 169,532 - 169,532
——— ——— ——— ————
400,000 802,457 236,766 1,439,223
——— ——— ——— ————

14

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

9 ALLOCATION OF THE CHARITY’S NET ASSETS (CONTINUED)

Net current
Investment Other (liabilities) /
At 31 August 2019: Property Investments assets Total
£ £ £ £
Unrestricted funds 400,000 55,464 59,653 515,117
Restricted funds - 533,392 91,655 625,047
Restricted Endowed funds - 160,262 - 160,262
——— ——— ——— ————
400,000 749,118 151,308 1,300,426
——— ——— ——— ————
10 FUNDS
Balances at Revaluation/ Balances at
1 September Incoming
Resources
Funds
Investment		 31 August
Current Year Movements 2019 resources
expended
transfer		 Gains 2020
£ £
£
£		 £ £
Unrestricted funds 515,117 134,087
(150,117)
-		 - 499,087
Restricted funds 625,047 304,077
(191,639)
-		 33,119 770,604
Restricted Endowed funds 160,262 - -
-		 9,270 169,532
———— ———
———
———		 ——— ————
1,300,426 438,164
(341,756)
-		 42,389 1,439,223
———— ———
———
———		 ——— ————
Balances at Balances at
1 August Incoming
Resources
Funds
Investment		 31 August
Prior Year Movements 2018 resources
expended
transfer		 (Losses) 2019
£ £
£
£		 £ £
Unrestricted funds 545,228 172,488
(207,249)
-		 4,650 515,117
Restricted funds 500,480 355,714
(240,112)
-		 8,965 625,047
Restricted Endowed funds 157,779 -
-
-		 2,483 160,262
———— ———
———
———		 ——— ————
1,203,487 528,202
(447,361)
-		 16,098 1,300,426
———— ———
———
———		 ——— ————

The Sedbergh School Foundation has various types of restricted funds for which it is responsible and which require separate disclosure. These are as follows:

Current Year Funds 2019 Incoming Resources Funds Investment 2020
Restricted funds resources expended transfer gains
£ £ £ £ £ £
i) Scholarship and Bursary Funds 316,978 104,059 (152,655) - 33,119 301,501
ii) House Funds 117,334 21,581 (6,877) - - 132,038
iii) Cricket Appeal Funds 9,002 - (2,893) - - 6,109
iv) Friends of Casterton SPS 144 3,670 (659) - - 3,155
v) Cyclosportive - - - - - -
vi) Capital Funds 155,142 14,183 (1,562) - - 167,763
vii) Charity Funds 1,380 - - - - 1,380
viii) Lord Mayor’s Year - - - - - -
ix) Rugby 2020 - 63,183 (7,432) 55,751
x) Hardship 2020 - 95,899 (8,372) 87,527
xi) Other Funds 25,067 1,502 (11,189) - - 15,380
——— ——— ——— ——— ——— ———
625,047 304,077 (191,639) - 33,119 770,604
——— ——— ——— ——— ——— ———

15

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

10 FUNDS (CONTINUED)
Current Year Funds 2019 Incoming Resources Funds Investment 2020
Restricted Endowed funds resources expended transfer gains
£ £ £ £ £ £
i) Scholarship and Bursary Funds 152,762 - - - 9,270 162,032
xii) Sedgwick Conservation 7,500 - - - - 7,500
——— ——— ——— ——— ——— ———
160,262 - - - 9,270 169,532
——— ——— ——— ——— ——— ———
Prior Year Funds 2018 Incoming Resources Funds Investment 2019
Restricted funds resources expended transfer gains
£ £ £ £ £ £
i) Scholarship and Bursary Funds 309,331 153,055 (154,373) - 8,965 316,978
ii) House Funds 103,643 30,012 (16,321) - - 117,334
iii) Cricket Appeal Funds 9,114 7 (119) - - 9,002
iv) Friends of Casterton SPS 4,206 14,399 (18,461) - - 144
v) Cyclosportive - - - - - -
vi) Capital Funds 56,081 134,172 (35,111) - - 155,142
vii) Charity Funds 1,520 60 (200) - - 1,380
viii)
Lord Mayor’s Year		 - - - - - -
xi) Other Funds
 16,585 24,009 (15,527) - - 25,067
——— ——— ——— ——— ——— ———
500,480 355,714 (240,112) - 8,965 625,047
——— ——— ——— ——— ——— ———
Prior Year Funds 2018 Incoming Resources Funds Investment 2019
Restricted Endowed funds resources expended transfer gains
£ £ £ £ £ £
i) Scholarship and Bursary Funds 150,279 - - - 2,483 152,762
xii) Sedgwick Conservation 7,500 - - - - 7,500
——— ——— ——— ——— ——— ———
157,779 - - - 2,483 160,262
——— ——— ——— ——— ——— ———

The following make up restricted funds:

viii) Lord Mayor’s Year, these funds were generated from the events which took place during Sir Roger Gifford’s year in office. During the prior period these funds were transferred to the Roger Lupton Scholarship fund.

xii) The Sedgwick Conservation Society Fund is an endowment and is used to fund environmental projects and school trips associated with the study of ecology.

16

The Sedbergh School Foundation NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2020

11 RELATED PARTY TRANSACTIONS

During the year, grants amounting to £169,428 (2019: £234,672) were payable to Sedbergh School (“the School”), an entity which is related by virtue of four common trustees. As at 31 August 2020, £13,005 was owed to the School (2019: £2,040 was owed to the School).

The Foundation has a lease agreement with the School for the rental of Guldrey Lodge, at a current rent of £52,000 p.a. This has been invoiced and paid by the school during the period. The rent is reviewed annually in accordance with the specific terms of the lease agreement.

12 FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
2020 2019
£ £
Financial assets held at amortised cost 34,998 44,415
Financial liabilities held at amortised cost 20,902 10,062
Equity Instruments held at market value 802,457 749,118

17