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2021-07-31-accounts

Page Page
Trustees and Advisors 1
Trustees’ Report 2 — 7
Independent Auditor’s Report 8 — 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Financial Statements 15 — 23

THE RADLEY FOUNDATION TRUSTEES' REPORT (CONTINUED) FOR THE VEAR ENDED 31 JUL V 2021

(b) Unrestricted funds

The Trustees continue to maintain an Unrestricted Designated Fund (generally known and hereafter referred to as the Endowment Fund) in respect of monies which donors have given for the long-term endowment of the College. The Trustees' aim is to build up this fund over the longer term with the intention that the income from this, as well as the capital, will be available for the support of Radley College as and when the Trustees consider appropriate. In view of the College's prioritised requirement to grow the number and value of funded places, income from this fund is currently applied towards the cost of bursaries, with the intention that the capital value is grown to facilitate a recurring revenue stream.

Achievements and performance

Fundraising resulted in £1,368k of donations received during the year (2020: £1,2271<), together with a number of pledges.

The Trustees decided in February 2018 to invest all long term capital (comprising all the Endowment Fund and the majority of the Scholarships and Bursaries Capital Fund) with Oxford University Endowment Management (OUem). The investment objective for OUem is to produce an annualised real return of 5% in excess of the Consumer Price Index (CPI) over the long term. The real return achieved in the year was 20.9%. The specific distribution policy is to distribute 4.25% of the average past 20 quarters' net asset value. This formula has the benefit of providing a more predictable stream of income, while also protecting and growing asset value. As a long term investment manager, the Trustees are satisfied that OUem is well placed to ride uncertain market conditions following the Covid-19 pandemic, and that its distribution policy will allow sustained and growing levels of income to be drawn annually to fund bursaries.

Residual monies held in the Scholarships and Bursaries Capital Fund are earmarked for use over the next five to seven years, and are managed under a discretionary management agreement with Investec Wealth & Investment Limited. The Trustees have an investment objective for these monies to deliver a balanced return with a low-medium capacity for risk to reflect their shorter-term investment horizon. The portfolio delivered a return of 11.2% over the year, compared to benchmark 10.2%.

The Trustees are grateful to the General Purposes Committee of the Radley College Council for its investment oversight role, including around the performance of the Foundation's funds. While the Trustees of the Foundation are accountable for Foundation investment performance, there is a strong alignment of interests with the College. In addition, one Foundation Trustee, Mr R N L Huntingford, also served during the year as a member of the General Purposes Committee.

During the year the Trustees made transfers, totalling £1,243k, to the College, as shown in Note 11 (2020: £1, 169k).

In addition to these gifts, Scholarships, totalling £136k were also paid (2020: £113k). These were in relation to awards from the Armed Forces Fund and the Bastyan Fund.

£12.32m was retained within the Foundation for future application (2020: £10.31m), of which the greater part is invested within the Scholarships and Bursaries Capital Fund, where funds for the long term are managed by OUem, and those for use within the next five to seven years are managed by Investec Wealth & Investment Limited.

Financial review

The accounts for the year show net incoming resources before investment gains of £303k (2020: £2441<). Total incoming resources were £2,207k (2020: £1,933k) and resulted in £1,243k (2020: £1, 169k) being gifted to Radley College. Management and administration services incurred by the Foundation, but donated by Radley College, amounted to £466k (2020: £353k). Gains on investment assets were £1,702k (2020: loss £373k).

At the year-end the Trustees retained £4,800k (2020: £3,9591<) of unrestricted funds and £7,516k (2020: £6,352k) of restricted funds.

Page 4

THE RADLEY FOUNDATION TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

The unrestricted funds represent uncommitted reserves and monies held for the long-term support of Radley College, including the Endowment Fund of £4,604k (2020: £3,6811<). This means that there are at present free reserves of £196k (2020: £278k). In view of the fact the Foundation's overheads are funded by Radley College, there is no reserve requirement, and so this is sufficient for its immediate needs.

The Foundation has cash resources and has no requirement for bank funding. Given the support of Radley College, which has continued to grow in size in accordance with its plans, despite the challenges of the Covid-19 pandemic, the Trustees have a high expectation that the Foundation has sufficient resources to continue in operational existence for the foreseeable future. Accordingly, they continue to believe the going concern basis of accounting is appropriate in preparing the annual financial statements.

The year's activities and plans for future periods

The Foundation's approach to fundraising has continued to focus on (i) building long-term relationships with Old Radleians and parents and making approaches to prospective donors; (ii) promoting tailored appeals to particular groups of the Radley community of ORs and parents; and (iii) raising awareness among the Radley community about the importance of fundraising.

In addition to maintaining and growing strong relationships with its existing donors through a stewardship programme, the main theme for the year remained fundraising for the Chapel and for the Silk Fund. A number of activities and communications were accordingly based specifically around these campaigns. While Covid-19 continued to place constraints on Foundation activities (including a further period of furlough for some during the Lent 2021 lockdown) it has also created an environment for innovation in use of video and on-line meetings. Consequently, there was a full programme of virtual events globally and this has enabled a wider reach than may otherwise have been possible. Key highlights included a virtual Chapel preview event held in the summer term, university catch up Zooms, a number of international "meet the Warden" events, and a series of interviews that illustrated the impact of funded places in transforming lives.

The Foundation is signed up to the Code of Fundraising Practice operated by the Fundraising Regulator. The Foundation takes its fundraising responsibilities seriously and believes its approach to fundraising protects vulnerable people and members of the public from unreasonable approaches or undue pressure to give. The Foundation seeks feedback from its donor community as a matter of course. There were no regulatory failures or complaints raised in the year with respect to fundraising practice.

The principal highlights during the year included:

Endowment Fund and Scholarships and Bursaries Fund

The Foundation has continued successfully to encourage donations to its Endowment Fund and its range of Scholarship and Bursary funds to maintain the momentum built up in recent years, primarily to enable more boys to come to Radley, for whom a Radley education would not otherwise be feasible.

Projects

The Chapel campaign realised gifts of £373k during the course of the year.

Page 5

Crowe A_

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RADLEY FOUNDATION FOR THE YEAR ENDED 31 JULY 2021 (CONTINUED)

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

CROWE U.K. LLP

Statutory Auditor

Aquis House 49-51 Blagrave Street Reading RG1 1 PL

9 December 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 11

Note Unrestricted Restricted Total funds Totalfunds
2021 2020
£ £ £ £
INCOME AND ENDOWMENTS
FROM:
Donations and legacies 1 164,453 1,203,062 1,367,515 1,226,861
Other trading activities
Management and administration
services donated by Radley
College 465,537 - 465,537 352,883
Income from investments
Investment income 4 152,391 221,464 373,855 353,557
Total 782,381 1,424,526 2,206,907 1,933,301
EXPENDITURE ON:
Raising funds
Services provided by Radley
College 3 465,537 - 465,537 352,883
Investment charges 3 24,800 37,161 61,961 54,673
Administration charges 3 (2,854) - (2,854) 289
Charitable activities
Amounts gifted to Radley College 11 152,280 1,091,157 1,243,437 1,168,749
Scholarships paid - 135527 135,527 112,862
Total 639,763 1,263,845 1,903,608 1,689,456
Net income before gains 142,618 160681 303,299 243,845
Net gains/(losses) on investments 698,140 1,003,771 1,701,911 (372,711)
Net movement in funds 840,758 1,164,452 2,005,210 (128,866)
Fund balance brought forward 3,958,997 6351.683 10,310,680 10,439,546
Fund balance carried forward 4.799.755 7,516,135 12,315.890 10.310.680

Notes 2021 2020
£ £
FIXED ASSETS
Investments 5 11,637,982 9,603,497
CURRENT ASSETS
Sundry debtors
—		 taxation recoverable 7,113 28,818
Sundry debtors
—		 dividends receivable 12,088 12,499
Cash at bank and in hand 659,728 669,921
678,929 711,238
CURRENT LIABILITIES
Accruals and deferred income (1,021) (4,055)
NET CURRENT ASSETS 677,908 707,183
NET ASSETS 12,315,890 10,310,680
ACCUMULATED FUNDS
Restricted fund 7 7,516,135 6,351,683
Unrestricted fund — general 8 195,584 278,229
Unrestrictedfund—designated 8 4,604,171 3,680,768
12.315.890 10.310,680

Notes 2021 2020
£ £ £
Cash flows from operating activities:
Net movement in funds 2,005,210 (128,866)
Net gains on investments (1,701,911) 372,711
Investment income (373,855) (353,557)
Decrease/Oncrease) in debtors 22,116 (35,041)
(Decrease)/increase in creditors (3,034) 71
Net cash used in operating activities (51,474) (144,682)
Cash flows from investing activities
Purchase of investments 5 (757,341) (468,927)
Investment income 373,855 353,557
Proceeds from sale of investments 523,458 364,099
Net cash provided by investing activities 139,972 248,729
Change in cash and cash equivalents in 88,498 104,047
the year
Cash and cash equivalents at the beginning
of the year 702.114 598,067
Total cash and cash equivalents at the
end ofthe year 790.612 702,114
Analysis of total cash balances:
2021 2020
£ £
Cash awaiting investment 130,884 32,193
Cash at bank and in hand 659,728 669,921
790,612 702.114
Analysis of changes in net debt: At 1 August Cash At 31 July
2020 Flow 2021
£000 £000 £‘OOO
Cash 669,921 (10,193) 659,728
Cash awaiting investment 32,193 98,691 130,884
702,114 88,498 790,612

£465,537 (2020: £352,883) were b
party.		 orne by Radle y College, wh ich the Trustees regard as a rel
Total costs Borne by Radley College
2021 2020 2021 2020
£ £ £ £
Wages and salaries 392,745 253,141 392,745 253,141
Cost of generating funds 17,197 45,504 17,197 45,504
Contribution to Radleian Society 29,950 29,950 29,950 29,950
Other professional fees 25,645 24,288 25,645 24,288
465,537 352,883 465,537 352,883
Borne directly by Foundation
Investment manager fees 61,961 54,673
Other administration charges (2,854) 289
524.644 407.845
4. INVESTMENT INCOME 2021 2020
£ £
Listed investments 373,744 352,765
Bank interest 111 792
373,855 353.557
5. INVESTMENTS 2021 2020
£ £
Balance brought forward 9,571,304 9,839, 187
Additions 757,341 468,927
Disposals (523,458) (364,099)
Revaluations 1,701,911 (372,711)
11,507,098 9,571,304
Cash with investment managers 130,884 32,193
Net book value at 31 July 2021 11.637.982 9.603,497

7.
RESTRICTED FUN		 DS - 2021
Investment
gains!
(losses)
Value at Gifted to less fees Value at
1 August Radley Scholar- and 31 July
2020 Income Donations College ships transfers 2021
£ £ £ £ £ £ £
Bursaryfunds
Armed Forces 2,489,124 99,117 5,172 - (108,844) 440,812 2,925,381
Greater China 392,372 7,877 91,951 (44,611) - 31,762 479,351
JamesWesson Fund 131,625 2,302 1,981 (36,113) - 9,292 109,087
Hamish Aird Fund 25754I 8,308 10,000 (12,048) - 36,018 299,819
Anthony Hudson Fund 254,431 5,152 6,286 (30,317) - 20,815 256,367
Alan Rae Smith Fund 1,369 151,350 2,526 155,245
Other Foundation Awards 1,192,919 33,731 139,761 (184,977) 144,765 1,326,199
Hugo Rutland Memorial 51 3,747 (3,598) - 200
Richard Morgan Award 10,297 41,019 (51,167) - 149
Silk 65,795 101,678 (151,042) - (324) 16,107
Shale University Prize 3,221 3,221
Scholarship funds
Bastyan 1,525,485 62,549 787 - (26,683) 277,166 1,839,304
Malcolm Robinson 25 - 725 (690) - 60
Zimbabwe Cricket Scholarship - 23,045 (23,045) -
Project funds
Chapel 2,933 202 373,233 (334,964) - 266 41,670
Warden’s Discretion - - 157,482 (157,482) - -
Science Building 5,000 - 14,495 (19,495) - -
Chemistry and Al funds 20,716 857 18,784 (429) - 3,512 43,440
L Social - - 3,000 (3,000) - -
Music Recitals & masterclasses - - 30,000 (30,000) - -
Music Partnerships - - 15,000 - - - 15,000
Gehandu 148 - 2,118 (2,266) - -
Poetry - - 6,250 (5,000) - - 1,250
Real Tennis Club - - 2,169 - - - 2,169
Beagles - - 1,566 - - - 1,566
Other - - 1,463 (913) - - 550

Investment
gains!
Value at Gifted to (losses) less
1 August Radley Scholar- fees and Value at 31
2019 Income Donations College ships transfers July 2020
£ £ £ £ £ £ £
Bursary funds
Armed Forces 2,548,774 92,849 31,219 (62,466) (121,252) 2,489,124
GreaterChina 392,874 8,309 39,124 (44,123) (2,052) (1,760) 392,372
James Wesson Fund 160,744 3,049 9,025 (40,125) (1,068) 131,625
Hamish AirdFund 285,968 8,298 3,750 (32,100) (8,375) 254541
AnthonyHudson Fund 240,872 5,780 31,250 (22,069) (1,402) 254,431
Other FoundationAwards 1,263,680 34,127 104,959 (174470) (32,377) 1,192,919
Hugo RutlandMemorial 61 737 (747) 51
Richard Morgan Award 2,592 38,196 (30,491) 10,297
Silk 450 245 244,361 (179,660) 399 65,795
2019 lea vers 5,000 (5,000)
Shale UniversityPrize 5,721 (2,500) 3,221
Scholarship funds
Bastyan 1,563,419 57,019 - - (19,862) (75,091) 1,525,485
Malcolm Robinson 55 340 (370) - - 25
Zimbabwe Cricket Scholarship 25,982 - (25,982)
Project funds
Chapel 6 245 380,129 (377,846) - 399 2,933
Rowing Centre 38 - 344 (382) - - -
Strength & Cond Centre 75,000 - - (75,000) - - -
Science Building - 14,965 (9,965) - - 5,000
Chemistry andAlfunds - 21,133 - - (417) 20,716
Rackets - 625 (625) - - -
Flypast - 1,920 (1,920) - -
Gehandu - 5,623 (5,475) - - 148
Boats - 6,800 (6,800) - - -
Peter & Kewpie Stuart 12,924 - 2,088 (15,012) - - -
Declamations 720 - - (720) - - -
Other - 5 (5) - - -
Totalrestrictedfunds 6,553,898 209,921 967,575 (1,025,905) (112,862) (240,944) 6,351,683

UNRESTRICTED FUNDS
- 2021
General Designated Total
£ £ £
At 1 August 2020 278,229 3,680,768 3,958,997
Donations 164,390 63 164,453
Investment income 111 152,280 152,391
Gifts to Radley College (152,280) (152,280)
Donated by Radley College 465,537 465,537
Costs of generating funds (465,537) (465,537)
investment charges (24,800) (24,800)
Transfer (250,000) 250,000
Administration charges 2,854 2,854
Gains on investment assets 698.140 698,140
At 31 July 2021 195.584 4.604.171 4,799,755

8. UNRESTRICTED FUNDS (continued)
- 202		 0
General Designated Total
£ £ £
At I August2019 81,003 3,804,645 3,885,648
Donations 196,723 62,563 259,286
Investmentincome 792 142,844 143,636
Gifts to Radley College - (142,844) (142844)
Donatedby Radley College 352,883 352,883
Costs ofgenerating funds (352,883) - (352,883)
Investment charges - (21,803) (21,803)
Administration charges (289) - (289)
Losses on investmentassets - (164,637) (164637)
At31 July2020 278229 3,680,768 3,958,997
9. ALLOCATION OF NET ASSETS - 2021
Net current
Investments assets Total
£ £ £
Unrestricted funds
General - 195,584 195,584
Designated 4,604,246 (75 4,604,171
4,604,246 195,509 4,799,755
Restricted funds
Bursary funds
Armed Forces 2,836,585 88,796 2,925,381
Greater China 378,738 100,613 479,351
James Wesson Fund 107,034 2,053 109,087
Hamish Aird Fund 281,511 18,308 299,819
Anthony Hudson Fund 244,929 11,438 256,367
Alan Rae Smith Fund 117,526 37,719 155,245
Other Foundation Awards 1,185,985 140,214 1,326,199
Hugo Rutland Memorial - 200 200
Richard Morgan Award - 149 149
Silk 16,107 16,107
Shale University Prize - 3,221 3,221
Scholarship Funds
Bastyan 1,812,201 27,103 1,839,304
Malcolm Robinson Memorial - 60 60
Projectfunds
Chemistry and Al funds 43,440 - 43,440
Chapel 25,787 15,883 41,670
Music Partnerships - 15,000 15,000
Poetry - 1,250 1,250
Real Tennis Club - 2,169 2,169
Beagles - 1,566 1,566
Other - 550 550
7,033,736 482,399 7,516,135
11.637.982 677,908 12,315,890
Page 20

ALLOCATION OF NET ASSETS (cont inued)
- 2020
Netcurrent
Investments assets Total
£ £ £
Unrestricted funds
General - 278,229 278,229
Designated 3,680,768 - 3,680,768
3,680,768 278,229 3,958,997
Restrictedfunds
Bursary funds
Armed Forces 2,395,774 93,350 2,489,124
Greater China 354,977 37,395 392,372
James Wesson Fund 119,550 12,075 131,625
HamishAirdFund 245,493 12,048 257541
Anthony Hudson Fund 242,401 12,030 254,431
OtherFoundation Awards 1,041,333 151,586 1,192,919
Hugo Rutland Memorial - 51 51
Richard Morgan Award - 10,297 10,297
Silk - 65,795 65,795
Shale University Prize 3,221 3,221
Scholarship Funds
Bastyan 1,502,485 23,000 1,525,485
Malcolm Robinson Memorial - 25 25
Project funds
ChemistryandAl funds 20,716 - 20,716
Chapel 2,933 2,933
Science - 5000 5,000
Gehandu - 148 148
5,922,729 428,954 6,351,683
9.603.497 707.183 10,310,680

Gifts made by The Foundation to Radley College to b e applied as follows:
2021 2020
Fund £ £
Bursary funds
James Wesson Fund 36,113 40,125
Foundation Awards 184,977 177,470
College Scholarship and Bursary Fund 152,280 142,844
Greater China Scholarship 44,611 44, 123
Anthony Hudson 30,317 22,069
Hamish Aird Scholarship 12,048 32,100
Hugo Rutland Memorial 3,598 747
Richard Morgan Award 51,167 30,491
Silk 151,042 179,660
2019 leavers - 5,000
Scholarship funds
Malcolm Robinson Memorial 690 370
Zimbabwe Cricket Scholarship 23,045 -
Project funds
Chapel 334,964 374846
Warden’s Discretion 157,482 -
Music Recital & Masterclasses 30,000 -
Science building 19,495 9,965
Poetry 5,000 -
L Social 3,000 -
Gehandu 2,266 5,475
Chemistry & Al 429 -
Strength & Conditioning Centre - 75,000
Peter & Kewpie Stuart - 15,012
Boats - 6,800
Fly past - 1,920
Rackets - 625
Rowing Centre - 382
Other 913 725
1,243,437 1.168,749
12. FINANCIAL INSTRUMENTS
2021 2020
£ £
Financial assets measured at fair value 11,637,982 9,603,497

13.
COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES		 13.
COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted 2020
£ £ £
INCOMEAND ENDOWMENTS FROM:
Donations and legacies 259,286 967,575 1,226,861
Other trading activities
Managementandadministration services
donatedby Radley College
352,883 - 352,883
Income from investments
Investmentincome 143,636 209,921 353,557
Total 755,805 1,177,496 1,933,301
EXPENDITUREON:
Raising funds
ServicesprovidedbyRadley College
352,883 - 352,883
Investmentcharges 21,803 32,870 54,673
Administration charges 289 289
Charitable activities
Amounts gifted to Radley College 142,844 1,025,905 1,168,749
Scholarships paid - 112,862 112,862
Total 517,819 1,171,637 1,689,456
Netincome/(expenditure) before gains 237,986 5,859 243,845
Netgains on investments (164,637) (208,074) (372,711)
Netmovement in funds 73,349 (202,215) (128,866)
Fundbalance broughtforward 3,885,648 6,553,898 10,439,546
Fundbalance carriedforward 3,958,997 6,351.683 10,310,680