**The Royal Masonic School for Girls (A Company Limited by Guarantee)**
**Incorporated in England and Wales No. 01339867 Registered Charity No. 276784**
## **GOVERNORS' REPORT AND FINANCIAL STATEMENTS**
**For the year ended**
**30 August 2021**
## **The Royal Masonic School for Girls**
**CONTENTS** for the year ended 30 August 2021
||**Page**|
|---|---|
|Governors' Report|1|
|Auditors' Report|15|
|Statement of Financial Activities|19|
|Balance Sheet|20|
|Cash Flow Statement|21|
|Notes to the Financial Statements|22|
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
The governors, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period 31 August 2020 to 30 August 2021. The governors have adopted the provisions of the 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 (The FRS 102 Charities SORP). All matters included in a Strategic report have been included in the Report of the Governors.
## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number**
01339867 (England and Wales)
## **Registered Charity number**
276784
## **Registered office**
Rickmansworth Park Rickmansworth Hertfordshire WD3 4HF
## **Governors**
**Appointed Resigned** Prof J Brewer (Chair) 11 March 2022 Mr S Brew Ms S Brophy 25 Mar 2021 Mrs P Dyke (Acting Chair) Mr J Knopp 7 Dec 2021(d) Mrs T Lemon Mrs J Pardon Mr B Saini Mrs S Shackell Mr S Staite Mr A Wauchope Mr I Williams Mrs H Wilson
The Board are saddened to report Mr Jonathan Knopp passed away in December 2021.
## **Company Secretary**
Mrs D E D Robinson BSc ACA
## **Auditors**
Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD
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**THE ROYAL MASONIC SCHOOL FOR GIRLS**
## **REPORT OF THE GOVERNORS**
**for the year ended 30 August 2021**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Bankers**
Lloyds Bank Plc Black Horse House Wallbrook Court North Hinksey Lane Botley Oxford OX2 0QS
## **Investment Managers**
Investec Wealth & Investment Limited 2 Gresham Street London EC2V 7QN
## **AIMS**
The objects of the School are the education and care of girls between the ages of 2 and 19 years and of boys between the ages of 2 and 3 years.
Although the School is independent, it is required, and is very pleased, to accept as pupils all girls presented by the Royal Masonic Trust for Girls and Boys (RMTGB), being daughters of English Freemasons considered to be in need, where, in consultation with the Head, RMS is considered an appropriate environment to meet each girl’s needs. This is in accordance with the objects of the School.
The School seeks to provide a structured educational environment that develops its pupils' capabilities, competencies and skills. The School promotes the academic, moral and physical development of its pupils through its academic curriculum, pastoral care, sporting and other activities. The School provides an educational environment where each student can develop and fulfil his or her potential, building self-confidence and creating a desire to contribute to the wider community. In so doing, the School prepares its girls and pre-school boys for the opportunities, responsibilities and experience of life.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Royal Masonic School for Girls is a company limited by guarantee, as defined by the Companies Act 2006, and governed by its Articles of Association. It is registered as a charity with the Charity Commission.
## **Governors**
The Royal Masonic School for Girls is organised in the manner common to the Independent Schools of this country, having an elected Board of Governors who are the only Directors of the company. A periodic review is undertaken of the skills, experience and backgrounds of Governors with a view to assessing any skills gap. Following this process, potential Governors are identified through open recruitment or arising from the personal knowledge of existing Governors and from external sources such as the Association of Governing Bodies of Independent schools (AGBIS). Potential governors are selected via a rigorous recruitment process. Once their appointment is proposed and approved, election occurs at the next meeting of the Governors.
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On appointment, Governors are given a verbal briefing on their duties and responsibilities by the Chairman of the Governing Body. They are provided with an induction pack of information including that relating to guidance on good governance, the constitution of the school and its governing body, the regulatory framework within which the school operates, the school’s policies, past Board minutes etc. An induction day is organised whereby Governors spend time in all sections of the School and meet key staff and observe teaching. All Governors receive external professional safeguarding training. Thereafter, details of courses and seminars provided by the organisations such as the Association of Governing Bodies of Independent Schools (AGBIS), the Independent Schools’ Bursars Association (ISBA) and the Boarding Schools' Association (BSA) are passed to the Governors to help them gain a better understanding of the nature of their role and of independent education.
The Governors meet as a Board at least four times a year to determine the general policy of the Company and the Charity and to review its overall management and control, for which they are legally responsible. The Board of Governors' Finance and General Purposes (F&GP) Committee has the responsibility for the detailed consideration of all matters relating to the financial and operational management of the School Company. Further committees covering Academic, Pastoral, Human Resources (HR) and Estate have been set up. Subject to the considerations of these Committees the day-to-day running of the work of the School is delegated to the Head, Mr K Carson and the Senior Leadership Team (SLT).
The employed staff consists of the Head and 157 Full Time Equivalent (FTE) members of the teaching and teaching support staff, and 114 FTE members of the bursarial support staff.
The school is established in buildings and grounds owned by the RMIG Endowment Trust, a charitable body, which has responsibility for the major preventative maintenance programme and the development of the property for the benefit of the School and its pupils. The School Company is the tenant of the RMIG Endowment Trust with the employed staff required to operate an educational establishment within that property.
## **Related parties**
-
- The RMIG Endowment Trust is landlord to The Royal Masonic School for Girls.
- RMS Management Limited is the School's wholly-owned dormant subsidiary.
- All investments owned by the School including those applicable to the Benjamin Iggulden Scholarship fund are held in the name of RMIG Nominees Limited.
- The Royal Masonic School for Girls Bursary Fund exists to provide bursary assistance to pupils
## **RISK MANAGEMENT**
The Governors have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The Governors of the School have implemented risk management as a matter of on-going policy and continue to keep the School's activities under review. In particular, systems and procedures have been established to manage problems following a major risk.
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## **COVID-19 risk management**
The Governors have kept in close and frequent contact with the Head and the Director of Finance and Operation (DFO) regarding the management of the additional risks arising from the COVID-19 pandemic including its variants as they arise. These include the increased risk to the health and safety of pupils, staff, parents and visitors to the school; the short-term financial risks arising from enforced closures of the school site leading to fee discounts and a higher than usual number of parents experiencing financial difficulties and requiring bursary assistance; the potential reputational risk of the perception of a lower standard of education provision arising from the change to remote learning and/or lack of teaching staff due to illness or self-isolation and a longer-term financial risk arising from a drop in future pupil numbers as families can no longer afford independent education.
The Head, DFO and Senior Leadership Team have developed a detailed COVID overarching risk assessment which is regularly reviewed and revised as circumstances evolve including close reference to changing government regulations and guidance. As appropriate under Government guidance, during lockdown periods, physical restrictions were in place on the school site with teaching and virtually all management and Governor Meetings being held remotely. A comprehensive and very well received remote learning programme was put in place from the day after the school closed ; whilst it is not currently needed, it is still constantly being reviewed to ensure it is fit for purpose should it be needed again in the future. It al. Management and Governor meetings are informed by as up to date information as possible, with risks and outcomes of various scenarios identified and evaluated prior to decisions being taken.
## **Risk Management Committee**
The Risk Management Committee reviews/prioritises a risk register which then aligns/allocates these risks to the most appropriate governor subcommittee. These subcommittees will then have the detail, working with SLT and the relevant departments, to ensure the risks are explored, prioritised and mitigated against as far as is reasonably possible.
## **Areas of risk**
The main areas of risk kept under review are
- Children's welfare: safeguarding
- External Factors: economic, political
- Business interruption arising from critical incidents
- Financial: managing cost pressures, external and internal
- Regulatory Compliance
- Staffing: recruitment and retention; compliance with employment law
There are specific risks which relate to the Bursary Fund. The key one are the external forces which could have an impact on the ability of the investment funds to generate revenue to fund future bursaries. The Fund mitigates this risk by diversifying the investment as much as possible in order to spread the risk.
## _**Children's welfare: safeguarding**_
The school operates within the government’s and Independent Schools Inspectorate (ISI)’s Safer Recruitment requirements and guidelines, carrying out all pre-recruitment checks including the enhanced level of Disclosure and Barring Service (DBS) checks prior to the appointment of all staff and Governors. The School has a robust and thorough set of safeguarding and related policies, and a regular training regime for all staff. The School prepares an annual Report to the Governing Body on Safeguarding Children in order that they may monitor compliance with the relevant Education Acts. This Report is also submitted to the
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**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
Hertfordshire Safeguarding Children Board. The school employs nurses and a doctor and dentist visit the school on a regular basis for the boarders, and counsellors are available for all students.
## _**External Factors**_
The economic and political climate changes affecting the independent school sector in general and the market positioning of the School in particular are monitored on an ongoing basis by the School’s senior leadership and governors. This includes the affordability and market competitiveness of the fees, the attractiveness of the curriculum options and facilities to prospective pupils and the salary and other employment benefits offered to the staff.
## _**Business interruption**_
Incidents which have potential to adversely affect the School’s ability to continue business at normal levels include acts outside of the school’s control, such as pandemics, fire or weather-related catastrophes. The School has a comprehensive Critical Incident Plan to try to minimise the ongoing impact of such events, as well as adequate business interruption insurance. Minimisation of the impact of those issues that the School is able to control to some extent – such as fire or buildings/utilities failure - is achieved by the identification of potential issues by, for example, regular fire and other risk assessments and the regular review of the ongoing maintenance programme, from which preventative measures can be implemented as a matter of priority.
## _**Financial**_
The school exercises careful control of internal accounting records to ensure the timely collection of fee income and management of debtors to minimise the losses from bad debts. Cost pressures arising from both external changes – such as changes in employment, regulatory and curriculum costs – and internal requirements are identified at an early stage and managed as far as possible by the preparation and control of school budgets involving budget holders across the school.
## _**Regulatory Compliance**_
The Head, Director of Finance and Operations (DFO) and their senior leadership teams constantly monitor the compliance of the school with the requirements of all external statutory authorities, ensuring that all receive relevant training and updating from the various external organisations such as the ISC, HMC, ISBA and AGBIS. The Independent Schools Inspectorate (ISI) operate a regular inspection regime to check this compliance; the last one was held in September 2017 where all regulations were found to be met.
## _**Staffing**_
The School engages the services of a highly experienced HR consultant leading a team of two HR officers, which ensures that the Head and DFO are fully aware of all legal, regulatory and best practice requirements relating to the recruitment and employment of staff including proper observation of equality for age, sex, race and religion. Staffing structures are regularly reviewed to ensure best outcomes for pupils alongside optimum cost effectiveness. The recruitment and retention of high-quality staff, particularly teachers, is an ongoing challenge for the school. Salary scales and other benefits are kept under review and necessary decisions to implement pay freezes, whilst understood by staff, have further negatively impacted the widening gap between the salaries offered at RMS and those by other schools and external organisations. An open dialogue is encouraged with staff across the school in order that potential employment issues can be identified and addressed at an early stage.
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**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
## _**Fundraising**_
Whilst the school has not engaged in active fundraising for its own benefit during the year, the student body fundraised for their chosen charity. The school does receive donations throughout the year and is mindful of the voluntary code of conduct should it choose to fundraise in the future.
## **OBJECTIVES**
## **Public Benefit**
The Charity's object is the education and care of girls between the ages of 2 and 19 years and of boys aged between 2 and 3 years. The Governors' current aims are to maintain an independent school providing a high quality education for children for the public benefit. In accordance with their objectives for this year, and having given due consideration to the published Charity Commission guidance on the operation of the Public Benefit requirement of the Charities Act 2011, including the guidance _‘Public benefit: running a charity (PB2),_ the Governors have undertaken appropriate activities in furtherance of those aims for the Public Benefit.
The School is committed to the concepts of Access and Opportunity for Public Benefit and as a larger charity an explanation of the significant activities undertaken in order to carry out the charity's aims for the public benefit is required in the annual accounts document as well as its aims and strategies. Please see section “Community Use of Facilities” below for more information.
## **The year's objectives**
The Royal Masonic School for Girls provides a supportive structure, which enables staff and girls to discover and develop their talents to the full. This is achieved by:
- Monitoring and assessing the work of each pupil to enable each child to develop to the full their academic potential and encouraging all pupils to explore a wide range of social and extra-curricular opportunities so that each may discover an area in which they can experience success, personal satisfaction and recognition within the school community.
- Recruiting and retaining high quality staff who are expected to review their work and to develop and extend their expertise in order to provide the finest learning experience for the pupils.
- Making the facilities and resources of the School available to all its members and developing good relationships between the School, the local community and the world beyond our immediate environment.
- Work with all stakeholders to draft and finalise Strategic Objectives for 2022-7 that demonstrate an increased commitment to DEI, partnerships, and sustainability.
## **Diversity, Equity and Inclusivity (DEI)**
RMS intends to demonstrate its ongoing commitment to Diversity, Equity and Inclusion by ensuring that
- DEI is at the heart of our new Strategic Objectives;
- DEI is central to ongoing Inset;
- there are DEI staff surveys; and
- two staff are appointed as DEI Leads at RMS.
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## **ACTIVITIES AND PERFORMANCE**
## **Senior School and Sixth Form**
## _**Academic Performance**_
In the academic year 2020/21 the pandemic resulted in public examinations being cancelled and Teacher Assessed Grades were instead used. Pupils did perform well on these measures. At GCSE level, 89% of girls achieved grades 9-6 or their equivalent. Performance at the top end was excellent with 54% of pupils achieving an 8 or 9 grade.
At Advanced level 85% of girls achieved grades A*-B. In a considerably uncertain and difficult university admissions period pupils went on to their university of choice with 5 gaining places at Oxford and Cambridge.
## _**Teaching and learning review**_
The academic year began with students returning to the classroom with many restrictions in place. The return to in-person learning was challenging. At Key stage 4 and 5 we found skill areas in which students needed a degree of support in order to be ready to face the challenge of external exams. At Key Stage 3, many students needed support in getting used to group work, the classroom environment and the rigour of the school day. A number of initiatives and supports were utilised that ensured that toward the end of the Michaelmas Term, students were learning at a good pace and on track to meet the challenges of the Hillary Term.
The return to national lockdown in January required that we shift our mock examinations online and we began contingency planning for a cancellation of public examinations, drawing heavily on the lessons learned from the Centre Assessed Grade process in 2020. The switch to online learning and mock exams was smooth, with a broader range of activities and learning experiences offered as teaching staff were able to draw upon the skills learnt in the first lockdown of 2020. We were able to offer online PE lessons and a range of 56 online extracurricular activities in the 2021 Hillary Term. Throughout this lockdown we were provided excellent pastoral and academic support, with fewer students presenting concerns though the second session of online learning. Once again, RMS was able to far exceed the online learning experience had by the majority of students across the country.
In preparation for the return to in-person learning in March of 2021, RMS put into place a pastoral and academic support plan in order to help students reintegrate into the classroom. This was built upon the experiences of the beginning of the Michaelmas Term and focused on the social, group working and softer learning skills that are not replicable in online learning. We also began the Teacher Assessed Grades process, which saw students sit a series of shorter assessments with rigorous internal marking and moderation. The teaching staff at RMS delivered a rigorous, fair and supportive approach to awarding GCSE and A-Level grades, as proven by the incredibly small number of appeals that were raised, none of which were upheld.
The curriculum continued to evolve in the 2020/21 academic year. In particular we responded to global developments by reviewing the extent to which our curriculum is diverse and reflects the multicultural society that we so highly value at RMS. This is an ongoing initiative which is being supported by staff inset training and CPLD sessions. We also continued to embed the Year 9 creative subject options process that began in the 2019/20 academic year, whilst managing through the curriculum adjustments to many subjects that have been required of us in the wake of the pandemic.
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The assessment and tracking of pupils continued to develop in 2020-21. Pupil’s performance is benchmarked against baseline data (Midyis, Yellis and Alis CEM Centre data) and progress is assessed. Each term the Deputy Head Academic, Director of Learning Support, Director of Assessment and relevant Head of Year meet to discuss each pupil in turn. Pupils requiring intervention are identified and actions recorded and then reviewed against the following term’s data. This has been particularly important as students have had to move between online and in-person learning, with continued disruption due to the necessity for isolation and its associated absence from school. Identifying and monitoring those students most affected by this disruption has been an essential component of our ability to successfully maintain pace and progress over the course of the academic year.
Our priority, which is pupil progress and attainment, continues to inform all aspects of teaching and learning in and out of lessons. The pedagogy leader team provided a CPLD programme throughout the year focussing on strands of pedagogy (Using Google for learning, marking and feedback and effective use of group work in the classroom) in which teaching staff focussed upon this element of their teaching and on how to further improve their practice.
## **Cadogan House (Prep and pre-Prep)**
It was an interesting year at Cadogan House. We had a settled staff team with only a little transition. Our development plan focused on critical areas like Staff development, assessment for learning and pastoral developments. Good progress was made in key areas such as writing and phonics and we are continuing to work with advisors to enhance mathematics provision. Digital Learning continued to be of significance and the provision of Chrome books for years 4-6 meant that the move back to remote teaching for most pupils in January 2021 was navigated well.
## **Ruspini House (Pre-School)**
This academic year the highlight has been our return to a more normal operation in Trinity Term. We were able to resume our enrichment activities with colleagues across the school such as swimming, Spanish, music and library sessions, as well as some fantastic science sessions including pond dipping and a visit to Draco the snake. These opportunities have been all the more valuable to our children that just have not had the opportunities to access these experiences outside of school over the last year. Assessments highlight the impact of COVID on children’s personal social and emotional development which has therefore become the priority. Interestingly the impact has been less noticeable on the specific areas of learning such as mathematics and literacy.
In the next academic year we will be introducing operational changes in our Nursery year (3/4 year olds) which we will be evaluating carefully. We will be moving to termly billing in line with the rest of the school and have increased our minimum sessions to 5 mornings. The class will be girls only (with the exception of staff children) and marketing will focus nursery as the beginning of the RMS journey providing a robust transition into Reception.
## **WIDER SCHOOL ACTIVITIES REVIEW**
## **Integrating technology**
Our work on digital transformation and our “bring your own device” policy proved key in allowing us to move quickly to effective remote learning during periods of lockdown during the year. Despite the difficulties
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**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
teachers and support staff worked tirelessly to provide the very best for all pupils, including the RMS boarders who are far from home, and for the children of key workers or vulnerable pupils. Our remote learning offer provided an excellent education and was genuinely the envy of many schools; many other independent schools asked for our advice, learning from us.
Face-to-face teaching and pastoral work using Google Meets during these periods were also greatly valued by the girls and their parents.
## **Co-Curricular activities**
RMS is proud to offer a wide range of co-curricular activities which cater for all interest and ages; this program has continued to grow facilitated by the ‘late’ buses services. With greater numbers of students able to attend after school training we added cricket, football and rugby to our sporting offer. Drama and music have continued to flourish in the excellent facilities offered by Alexandra House. Students are encouraged, through an online booking system, to make their own independent decisions and keep the co-curricular activities in balance with their academic work. Form tutors and Heads of Year advise and support girls on activities by checking the online data and in discussions with the girls. House events are considered essential for vertical mixing within the school. Our collective determination to continue the co-curricular online during lockdown periods included fantastic and very moving choral pieces through zoom. On returning, the co-curricular continued in bubbles and small groups until restrictions were lifted when record numbers of students were able to compete their Bronze and Silver D of E expeditions.
## **Pastoral Care**
Pupils in Y7-9 are embracing the Girls on Board initiative and training which seeks to empower girls to endeavour to sort their friendship issues out for themselves rather than involving parents and other adults. Pupils in Y10 and Y11 have had a Too Shy seminar to encourage self-confidence and self-esteem. Future plans include Y10 and Y11 having a workshop and individual tutor support on healthy eating and eating disorders. A strategy to build self-esteem across the year groups is also in planning stages.
A “chill-out” zone in the Resource Centre has been created for those pupils who need a moment of quietness and reflection. This is monitored by Heads of Year, the Deputy Head Pastoral as well as a rota of 6th form wellbeing champions.
Safeguarding remains at the forefront of pastoral care with regular compulsory training for all staff in addition to the training given to meet statutory requirements. There is also now a requirement for all staff to undertake an online KCSIE module to ensure that they have read Part 1 and Annex A. New staff have individual meetings with the Designated Safeguarding Lead (DSL). The statutory 3 year safeguarding update has been completed in January 2022.
## **Pupil Voice**
RMS is committed to being responsive to parents and pupils. Departments are encouraged to elicit regular feedback from pupils in relation to subject delivery. In boarding there are termly opportunities for confidential feedback, which is returned directly to the Director of Boarding. An online Worry Form has also been created for pupils to complete if they wish to feedback their concerns discretely which then can be followed up if enough details e.g. names are supplied. The School Council, with a representative from each form group, deals with issues relating to student learning, environment, food, boarding, welfare and charity. The Council as a whole meets regularly to collate ideas. It is particularly successful and beneficial to the RMS community
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**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
as it enables pupils from all years to have their say on school life from the amount of homework they receive, recycling and helping to reduce waste alongside improvements to the carpark and meetings and chosen outcomes are raised by the Deputy Head Girl School Council with Departmental Heads and the Senior Leadership Team (SLT) ; progress is fed back to the School through form times and assemblies. At the same time, it is important for pupils to understand the reasons why some things cannot be changed and are in place for a good reason.
## **Staff Development and Welfare**
As the school has returned to site and to a more familiar operating pattern, COVID, and the ongoing associated issues around infection, isolation, quarantine and testing, is proving a continuing operational challenge for staff across the whole school community, impacting on the resource available for cover and duties. Throughout the pandemic HR have supported staff signposting them to help such as the Employee Assistance Plan (EAP), and organising other wellbeing initiatives e.g. arranging on site flu jabs.
A key focus has been to support SLT to restructure as well as to manage the selection and appointment of key roles including a new DFO, Head of Cadogan House and Deputy Head Pastoral. Recruitment at all levels is challenging with poor fields of candidates and many teaching and support roles seeing few if any applicants. Key teaching roles are being advertised multiple times e.g. Teacher of IT. All staff involved in interviewing attend onsite training before being involved in the selection process and in person training for new and emerging leaders has been set up and led by HR with 14 staff taking part. The programme has 8 sessions and runs throughout the course of the academic year.
The staff survey ran during October 2021 and 71%of staff took up the opportunity to participate. Feedback was summarised both qualitatively and quantitatively, shared with staff and groups are now working on many of the topics raised. With over 860 individual comments and a split of 54% teaching staff and 46% support staff the feedback very much reflects the thoughts of the whole school community and will feed into the strategy work being undertaken.
## **COMMUNITY USE OF FACILITIES**
Activities undertaken during the year which constitute public benefit include the following:
- Free use of swimming pool offered to two neighbouring schools on a weekly basis.
- Free stalls made available to local charities at the School's Summer and Christmas fairs. Due to the pandemic, neither of these events were held in 2020/21 but are expected to recommence in 2021/22.
- Free visits for local youth groups to the school’s Observatory and Planetarium
- Free use of school facilities by the Rickmansworth Detachment of the Bedfordshire & Hertfordshire Army Cadet Force
- Weekly use of school facilities by local Rickmansworth Brownies & Guides
- Free use of facilities for South West Herts Astronomer meetings.
- Preferential hire rates for local charities using school meeting facilities e.g. Peace Hospice
## **Sports and fitness facilities**
Under the management of Nuffield Health, our Sports and Fitness Centre is hired out to around 40 local clubs and organisations, some at discounted rates. These cover a wide range of sports including swimming, football, netball, hockey, cross country, martial arts, fencing, lacrosse, gymnastics and softball.
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**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
The school hosts a number of district and national competitions, and in holiday periods, Supercamps run activity weeks for local children using the school facilities.
## **FINANCIAL REVIEW**
## **Pupil numbers**
The principal funding source of the Charity is that derived from its fee income. The charitable activity of the company is the education of pupils and during the period to 30 August 2021 the following numbers of pupils attended:
|attended:|||
|---|---|---|
|Total Senior School|701 pupils|(2020: 740 pupils)|
|Total Pre-Preparatory and Preparatory 224 pupils||(2020: 204 pupils)|
|Total Pre-school|69 pupils|(2020: 54 pupils)|
## **Bursary Fund - consolidation**
The RMS Bursary Fund is a separately constituted charity, with the objective to provide fees assistance to pupils whose parents/carers are in temporary financial difficulty (Hardship Bursaries), or to those for whom attendance at RMS would be of mutual benefit but whose financial situation would otherwise preclude them from this opportunity (Entrance Bursaries) .
The Trustees of the Bursary Fund are all Governors of RMS and as such the two charities are under common management. For this reason, the results of the Bursary Fund have been consolidated within these financial statements.
## **Financial performance**
The Consolidated Statement of Financial Activities (SOFA) shows a surplus for the year of £97,993, (2020 showed a deficit of £101,713). The principal contributory factors are as follows:
- Lower pupil numbers in Senior, Prep and Pre-Prep (994) than previous year (998) – leading to an increase in fee income, teaching and welfare costs.
- An extraordinary receipt of £128,460 in COVID furlough payment from the Government (2020: £416,863).
## **Grant-Making Activities**
The Royal Masonic School for Girls is committed to demonstrating that we provide public benefit and regards it as educationally beneficial to widen access to the education it offers; this has always been a distinctive feature of RMS whose foundation was essentially charitable.
Scholarships and exhibitions are offered to encourage and reward excellence; they are awarded in recognition of outstanding achievement or promise in a particular sphere and involve financial support normally up to a maximum of 25% of the annual fee. Bursaries enable suitable girls whose parents could not otherwise afford the fees to benefit from an education at The Royal Masonic School for Girls. These means tested awards may be awarded to girls who reach the School's required standards but who require financial assistance to take up a place, or to help parents of an existing girl keep her at the School in times of unexpected financial difficulty.
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**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
In the Financial Year 2020/21, a total of £861,854 (2020: £621,812) was awarded in scholarships and bursaries by the School to 138 girls (2020: 160). A further 13 pupils benefitted from bursary assistance of £30,680 via the RMS Bursary Fund (2020: £54,408 to 25 pupils). The RMIG Endowment Trust did not make any Foundation Scholarships in 2021 (2020: £6000 to 1 girl) and a further 4 (2020: 4) girls were supported by the Royal Masonic Trust for Girls and Boys amounting to £100,583 (2020: £89,472). RMS also currently educates 2 child who is fully funded by a local authority.
## **Remuneration Policy**
The School does not remunerate its Governors. The Governors are responsible for determining the remuneration of the Head and the Director of Finance and Operations, and for setting the policy and framework for the remuneration of the rest of the School staff. Remuneration is set in the context of the School’s purposes, aims and values and to reflect the skills, experience and competences required for particular roles. In setting remuneration, the Governors also consider a number of additional factors including an individual’s contribution, affordability and remuneration offered by schools of a similar size, pupil age range and locality.
## **Reserves policy**
The total funds for the year ended 30 August 2021 were £4,534k, of which £1,450k were restricted funds, £55k were endowment funds, leaving £3,028k as unrestricted funds. Within the unrestricted funds were £1,407k of fixed assets leaving £1,621k as free reserves.
The reserves policy will be reviewed on an annual basis.
The School aims to maintain adequate free, unrestricted reserves to respond to unforeseen events and to meet up to 3 months’ non-discretionary expenditure (approximately £3.4m). This provides sufficient time to form an emergency planning team, develop response plans and take the necessary measures to ensure that the School can continue to operate successfully during any emerging crisis.
On 31 August 2021 free unrestricted reserves were £1,621k (2020: £1,758k). These are defined as unrestricted funds, less both fixed assets and permanent endowment. The reserves policy and its calculation are reviewed by the Finance Committee and updated annually. Future development plans will be funded by a combination of cash flow, borrowing and fundraising.
Governors recognise that free reserves may fall below the School’s target for significant periods of the year. This is due in part to the School’s cash flow cycle with fee income received at the beginning of each term. This year the School has absorbed the loss of lettings income due to COVID-19 and a reduction in fee income following a strategic decisions to reduce the financial pressure on parents. The additional cost of the Teachers’ Pension Scheme will continue to be absorbed until August 2022.
However, the balance sheet remains strong and the School benefits from a secure lease on its land and buildings.
Governors are aware that the low level of free reserves, combined with the uncertain economic impact of COVID-19 and BREXIT, will present a challenging environment next year. However, the School has plans in place to control expenditure and restore free reserves to target levels by September 2022.
12
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
## **CURRENT AND FUTURE DEVELOPMENTS**
The coronavirus crisis impacted significantly on the planned developments on the site for 19/20 and this has continued to some extent into 20/21. However, the in house Premises team have carried out a number of smaller projects, including refurbishment of bathrooms and kitchens and new flooring in the boarding houses, enhancing school security systems, creating a Cadogan House Music Room from what was previously the Governors Board Room and modernising and centralising swimming pool plant controls.
As landlord of the land and buildings The RMIG Endowment Trust continues its programme of work to update and modernise the fabric and infrastructure of the school. This work will continue over a number of years and in 2020/21 included replacing the heating systems across the school, repairing roof structures, removing asbestos and improving fire safety systems. The Governors are currently concluding negotiations of a new long term lease agreement with the RMIG Endowment Trust
Future planned capital developments include the start of the transformation of “The Space” into a modern multi-use facility for theatrical productions, visiting speakers and meetings/conferences; refurbishment and upgrading of swimming pool changing facilities and in the longer term the development of the Science Block into a modern, high-spec STEM teaching and learning facility.
## **TEACHERS PENSIONS**
The employer contribution rate for the Teachers Pensions (TP) scheme was increased from 16.4% to 23.6% from 1 September 2019. This has a significant impact on the costs of the school, in the order of an additional £378k in the 2020/21 school year.
A Teachers Pension Steering Group was set up to consider the implications of this change for the ongoing development of the school and the possible options available to mitigate the impact. Following the submission of a Business Case in June 2020, the Governors concluded that RMS should engage in a process of consultation with all affected staff about a possible withdrawal from the scheme. The School undertook a collective consultation process where a number of meetings were held with elected staff representatives. Following comments raised as well as some alternative suggestions, the Governors carefully considered all the options and decided to withdraw from the TPS from September 2022 and provide a defined contribution scheme in its place. All affected employees have now signed contracts agreeing to the new terms and conditions.
## **PENSION BUYOUT LOAN**
As noted in last year’s report, the School signed an agreement on 31 March 2016 entering into an unsecured loan agreement with RMTGB to allow the school to buy out its liability relating to the RMTGB Staff Pension scheme. The loan is currently being repaid in monthly instalments with the current rate of interest charged at the Bank of England rate.
13
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**REPORT OF THE GOVERNORS for the year ended 30 August 2021**
## **STATEMENT OF GOVERNORS RESPONSIBILITIES**
The governors (who are also the directors of The Royal Masonic School for Girls for the purposes of company law) are responsible for preparing the Report of the Governors and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the governors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The governors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the governors are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Approved by order of the board of governors on ............................................. and signed on its behalf by: 30 March 2022
.............................................
Ms P Dyke – Acting Chair of Governing Body
14
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**INDEPENDENT AUDITOR’S REPORT for the year ended 30 August 2021**
## **INDEPENDENT AUDITOR’S REPORT TO THE GOVERNORS OF THE ROYAL MASONIC SCHOOL FOR GIRLS**
## **Opinion**
We have audited the financial statements of The Royal Masonic School For Girls for the year ended 30 August 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 30 August 2021 and of the group’s incoming resources and application of resources, including its 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 opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to
15
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
## **INDEPENDENT AUDITOR’S REPORT**
**for the year ended 30 August 2021**
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page [x], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
16
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**INDEPENDENT AUDITOR’S REPORT for the year ended 30 August 2021**
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
17
**THE ROYAL MASONIC SCHOOL FOR GIRLS**
**INDEPENDENT AUDITOR’S REPORT for the year ended 30 August 2021**
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
## 1 April 2022
Devonshire House 60 Goswell Road London EC1M 7AD
18
## **The Royal Masonic School for Girls**
**CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement)** for the year ended 30 August 2021
|Notes
**INCOME FROM:**
**Charitable Activities**
School fees
4
Other educational income
5
**Other income**
Other trading income
6
Other activities
6
**Investments**
Investment
7
**Voluntary sources**
Donations and gifts
8
**Total income and endowments**
**EXPENDITURE ON:**
**Costs of raising funds**
9
**Charitable activities**
Education
10
**Total expenditure**
10
**Net operating income/(expenditure)**
Pension scheme buyout
Other Profit or Loss on sale of assets/property
Net gains on investments
**Net income/(expenditure)**
Transfer between funds
**Net movement in funds**
Fund balances brought forward
Fund balances carried forward
23|Unrestricted
funds
- general
£
15,991,884
268,074
204,328
157,219
9,268
150,374|Restricted
funds
£
-
-
-
-
16,806
236,303|Endowment
fund
£
-
-
-
-
-
-|**Total**
**2021**
**£**
**15,991,884**
**268,074**
**204,328**
**157,219**
**26,074**
**386,677**|Total
2020
£
15,367,685
355,833
177,074
181,052
59,238
706,001|
|---|---|---|---|---|---|
||16,781,147|253,109|-|**17,034,256**|16,846,883|
||6,669
17,068,113|-
38,183|-
-|**6,669**
**17,106,296**|13,090
16,969,876|
||17,074,782|38,183|-|**17,112,965**|16,982,966|
||(293,635)
-
-|214,926
-
-
176,702|-
-
-
-|**(78,709)**
**-**
**-**
**176,702**|(136,083)
-
-
34,370|
||(293,635)
111,808|391,628
(111,808)|-
-|**97,993**
**-**|(101,713)
-|
||(181,827)
3,210,235|279,820
1,170,043|-
55,240|**97,993**
**4,435,518**|(101,713)
4,537,231|
||3,028,408|1,449,863|55,240|**4,533,511**|4,435,518|
The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.
All of the above amounts relate to continuing activities.
The accompanying notes form part of these financial statements.
Page 19
## **The Royal Masonic School for Girls**
## **CONSOLIDATED BALANCE SHEET**
as at 30 August 2021
|Notes
**FIXED ASSETS**
Tangible assets
16
Investments
17
**CURRENT ASSETS**
Stocks
18
Debtors
19
Cash at bank and in hand
20
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
21
**NET ASSETS**
**FUNDS**
Restricted funds
23
Unrestricted funds – general
23
Endowment fund
23
**CREDITORS**: Amounts falling due within
one year
**CREDITORS:**Amounts falling due after
more than one year|**Group**
**2021**
**£**
**1,407,171**
**1,100,168**|Group
2020
**£**
1,641,025
928,088|**School**
**2021**
**£**
**1,407,171**
**171,535**|School
2020
£
1,641,025
151,324|
|---|---|---|---|---|
||**2,507,339**
**16,740**
**572,041**
**7,207,660**|2,569,113
22,458
587,999
6,650,920|**1,578,706**
**16,740**
**572,041**
**7,038,376**|1,792,349
22,458
602,888
6,512,078|
||**7,796,441**
**(3,872,662)**|7,261,377
(3,196,326)|**7,627,157**
**(3,885,726)**|7,137,424
(3,193,410)|
||**3,923,779**|4,065,051|**3,741,431**|3,944,014|
||**6,431,118**
**(1,897,607)**|6,634,164
(2,198,646)|**5,320,137**
**(1,897,607)**|5,736,363
(2,198,646)|
||**4,533,511**|4,435,518|**3,422,530**|3,537,717|
||**1,449,863**
**3,028,408**
**55,240**|1,170,043
3,210,235
55,240|**338,882**
**3,028,408**
**55,240**|272,242
3,210,235
55,240|
||**4,533,511**|4,435,518|**3,422,530**|3,537,717|
As permitted by the s408 Companies Act 2006, the School has not presented its own income statement and related notes. The School's deficit for the year was £115,187 (30 August 2020: deficit £193,108).
30 March 2022
Approved and authorised for issue by the Board of Governors on ........................................... and signed on their behalf by:
Ms P Dyke Acting Chair of the Governing Body
The accompanying notes form part of these financial statements. Company Number: 01339867
Page 20
## **The Royal Masonic School for Girls**
## **CONSOLIDATED CASHFLOW STATEMENT**
## for the year ended 30 August 2021
|**e Royal Masonic School for Girls**
**SOLIDATED CASHFLOW STATEMENT**
e year ended 30 August 2021|||
|---|---|---|
|**CASH FLOW STATEMENT**
Notes
Net cash inflow from operating activities
29
Cash flows from investing activities:
Bank interest received
Dividends received
Interest element of finance lease rental payments
Proceeds from sale of investments
Payments to acquire fixed assets
Payments to acquire investments
Movement in investment cash
Net cash outflow from investing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
Cash and cash equivalents at the
Cash and cash equivalents at the|**2021**
**£**
**811,681**
**9,268**
**16,806**
**(802)**
**160,231**
**(284,476)**
**(161,749)**
**5,781**|2020
£
1,669,316
38,212
21,026
(4,414)
258,633
(269,983)
(238,364)
(33,910)|
||**(254,941)**|(228,800)|
||**556,740**
**6,650,920**|1,440,516
5,210,404|
||**7,207,660**|6,650,920|
Page 21
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
## for the year ended 30 August 2021
- **1** ACCOUNTING POLICIES
The Royal Masonic School for Girls is a company limited by guarantee with registered number 01339867, incorporated and domiciled in England and Wales. Its registered office is Rickmansworth Park, Rickmansworth, Hertfordshire, WD3 4HF.
## **1.1** BASIS OF PREPARATION
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.
These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.
## **1.2** GOING CONCERN
The governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable group to continue as a going concern. The governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the governors have considered the ongoing effects of the COVID-19 pandemic on pupil numbers, the ability of parents to meet increases in fees, inflationary pressures and known increases in costs such as utilities.
The governors have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future.
The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## **1.3** PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
These group financial statements consolidate on a line by line basis the financial statements of the charity and its connected charity undertakings made up to 30 August 2021. These financial statements consolidate The Royal Masonic School for Girls Bursary Fund, a registered charity with charity number 1106076.
## **1.4** INCOMING RESOURCES
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the School, but include contributions received from restricted funds for scholarships, bursaries and other grants.
**1.5** RESOURCES EXPENDED Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
## **1.6** ALLOCATION AND APPORTIONMENT OF COSTS
Costs have been allocated first between charitable activities and governance. Salaries and other costs are allocated according to the charitable activity to which they relate.
## **1.7** TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computer equipment 33% straight line Fixtures & fittings 20-25% straight line Leasehold improvements 10% straight line Long leasehold property Not depreciated Motor vehicles 25% straight line
Assets with a value of £500 or more are capitalised. Assets purchased as part of an ongoing project are capitalised as part of the total cost of the project.
## **1.8** INVESTMENTS
Investments, except investments in subsidiaries, are stated at market value at the balance sheet date. The Statement of Financial Activities includes the realised gains and losses on acquisitions and disposals as well as the unrealised gains and losses throughout the year. The unrealised gains or losses represent the difference between the market value and the book value on the annual accounting date, namely 30 August. Unrealised gains or losses are transferred to the accumulated fund. The actual gain or loss will depend upon the prices ruling at the time of sale. The figure for unrealised gains is therefore only an indication of the position.
Investments in subsidiaries are recognised at cost less impairment. An annual review for impairment is undertaken by the Trustees.
## **1.9** STOCKS
Stocks are stated at the lower of cost or net realisable value.
Page 22
## **The Royal Masonic School for Girls**
## **NOTES TO THE FINANCIAL STATEMENTS** for the year ended 30 August 2021
|**1.10**|LEASES|
|---|---|
||Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.|
|**1.11**|CASH AND CASH EQUIVALENTS|
||Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or|
||less.|
|**1.12**|FINANCIAL ASSETS|
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through profit or loss are measured at fair value.
## _Loans and receivables_
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
## _Impairment of financial assets_
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
**1.13** FINANCIAL LIABILITIES
Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value.
**1.14** TAXATION The company has no liability to corporation tax because it is a registered charity. **1.15** FUND ACCOUNTING Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Governors.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **1.16** EMPLOYEE BENEFITS
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.17** RETIREMENT BENEFITS
The company contributes to two pension schemes. Contributions are charged to the Statement of Financial Activities as they become payable.
Page 23
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS** for the year ended 30 August 2021
- **2** KEY ESTIMATES & JUDGEMENTS
In the application of the company's accounting policies, the Board is 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 on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
## _Useful economic lives_
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
## _Provisions_
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. See note 19 for the net carrying amount of the debtors.
## **3 HELD OVER LEASE WITH RMIG ENDOWMENT TRUST**
The Trust has been adopting the terms of the expired lease and are currently in negotiation for a new 6 year landlord repairing lease commencing from 1 September 2020 with a further 99 year tenant repairing lease due to commence from 1 September 2026. The heads of terms have not formally been agreed and so the financial statements for the year ended 30 August 2021 have not been prepared on this basis.
## **4 FEE INCOME**
|**FEE INCOME**|||
|---|---|---|
|The School’s activities are carried out within the UK.
The school's fee income comprised:
Gross fees
Less: Discounts
Less: COVID 19 discount
Less: Scholarships and bursaries|**2021**
**£**
**17,418,786**
**(565,048)**
**-**
**(861,854)**|2020
£
17,860,322
(524,555)
(1,346,270)
(621,812)|
||**15,991,884**|15,367,685|
Included within the above is £161,224 related to restricted bursaries for the year ended 30 August 2021 and £101,666 for the year ended 30 August 2020.
## **5 OTHER EDUCATIONAL INCOME**
|Extras and disbursements
Registration fees
Other income|**2021**
**£**
**147,904**
**38,330**
**81,840**|2020
£
155,991
46,977
152,865|
|---|---|---|
||**268,074**|355,833|
Included within the above is £nil related to restricted income for the year ended 30 August 2021 and £nil for the year ended 30 August 2020.
## **6 OTHER INCOME**
|**OTHER INCOME**|||
|---|---|---|
|Other trading income - Rent and lettings
Other income - Enterprise|**2021**
**£**
**204,328**
**157,219**|2020
£
177,074
181,052|
||**361,547**|358,126|
Included within other incoming resources is £nil of restricted income for the year ended 30 August 2021 and £nil for the year ended 30 August 2020.
Page 24
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
for the year ended 30 August 2021
|**7 INVESTMENT INCOME**
Interest received
Dividend income
**8 DONATIONS AND GRANTS**
Donations and gifts
Furlough grant
Included within the above is £236,303 of restricted donations for the year ended 30
**9 COSTS OF RAISING FUNDS**
Other expenditure - Enterprise
Trading costs
**0 CHARITABLE ACTIVITIES COSTS**
Teaching
Welfare
Housekeeping and catering
Premises and Estates
Finance and Administration (note 11)
Governance
Teaching
Welfare
Housekeeping and catering
Premises and Estates
Finance and Administration (note 11)
Governance
Included within the above is £16,806 of restricted dividend income for the year end|August 2021 and £174,425 for the yea
Staff costs
(note 12)
Other
£
£
8,298,031
484,492
352,070
51,740
-
695,399
1,818,349
2,644,852
1,181,326
1,026,780
-
34,927
11,649,776
4,938,190
ed 2021 and £21,026 for the year ende|August 2021 and £174,425 for the yea
Staff costs
(note 12)
Other
£
£
8,298,031
484,492
352,070
51,740
-
695,399
1,818,349
2,644,852
1,181,326
1,026,780
-
34,927
11,649,776
4,938,190
ed 2021 and £21,026 for the year ende|**2021**
**£**
**9,268**
**16,806**|2020
£
38,212
21,026|
|---|---|---|---|---|
||||**26,074**|59,238|
||||**2021**
**£**
**258,217**
**128,460**
d 2020|2020
£
289,138
416,863|
||||**386,677**|706,001|
||||r ended 30 August
**2021**
**£**
5,903
766|2020.
2020
£
12,056
1,034|
||||6,669|13,090|
||||Depreciation
£
-
-
-
518,330
-
-|**Total**
**2021**
**£**
**8,782,523**
**403,810**
**695,399**
**4,981,531**
**2,208,106**
**34,927**|
||11,649,776|4,938,190|518,330|**17,106,296**|
||Staff costs
(note 12)
£
8,589,545
381,399
961,178
774,742
1,228,317
-|Other
£
584,483
44,679
665,361
2,187,879
929,918
42,974|Depreciation
£
-
-
-
579,401
-
-|Total
2020
£
9,174,028
426,078
1,626,539
3,542,022
2,158,235
42,974|
||11,935,181|4,455,294|579,401|16,969,876|
## **10 CHARITABLE ACTIVITIES COSTS**
Included within Education is £38,183 of restricted grant expenditure for the year ended 30 August 2021 and £57,382 for the year ended 30 August 2020. Included within Finance and Administration is restricted expenditure of £nil relating to the Campaign for Excellence for the year ended 30 August 2021 and £nil for the year ended 30 August 2020.
|Other Governance Costs include:
Auditors' remuneration
- Audit Fees
- under provision from previous year
- Accountancy Fees
- Other
Governance costs|**2021**
**£**
**20,546**
**7,550**
**3,168**
**-**
**3,663**|2020
£
22,970
9,490
5,064
-
5,450|
|---|---|---|
Page 25
## **The Royal Masonic School for Girls**
## **NOTES TO THE FINANCIAL STATEMENTS**
## for the year ended 30 August 2021
|**11 FINANCE AND ADMINISTRATION**
Finance and Administration Other includes:
IT and telecommunications costs
HR consultancy and payroll fees
Legal and professional fees
Marketing & advertising
Postage & stationery
Other costs
**12 STAFF COSTS**
Wages and salaries
Redundancy and settlement costs
Social security costs
Other pension costs
Other staff costs
During the year, settlement payments were made for two individuals for a total of £63,564 (2020: £89,318)
The average monthly number of employees during the year was as follows:
Teaching
Teaching Support
School Support
£60,000 in the year was as follows:
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£131,001 - £140,000
£140,001 - £150,000
The number of employees whose emoluments amounted to|**2021**
**£**
**215,896**
**143,262**
**156,650**
**114,668**
**150,802**
**245,502**|2020
£
143,675
167,489
154,913
176,031
108,063
179,747|
|---|---|---|
||**1,026,780**|**929,918**|
||**2021**
**£**
**9,228,428**
**63,564**
**890,558**
**1,467,070**
**156**|2020
£
9,378,778
89,318
932,320
1,519,278
15,487|
||**11,649,776**|11,935,181|
||**2021**
**No.**
**135**
**55**
**158**|2020
No.
143
54
168|
||**348**|365|
||**2021**
**No.**
**4**
**2**
**1**
**-**
**2**
**-**
**2**|2020
No.
6
1
3
1
-
1
1|
||**11**|13|
Pension contributions for the year amounted to £99,767 (2020: £107,845) for the above employees.
## **13 GOVERNORS REMUNERATION AND BENEFITS**
There were no Governors' remuneration or other benefits for the year ended 30 August 2021 nor for the year ended 30 August 2020 .
Travel and training expenses of £495 (2020: £3,030 for 6 governors) for 3 governors were paid by the charity during the year.
Key management personnel include the Governors and the senior executives which are made up of the heads, bursars and Heads of Departments. The total cost to the school of employing key management personnel was £1,935,407 (2020: £1,556,128).
Two members of the key management personnel are also provided with free accommodation in order to enable them to undertake specific duties for the school.
Page 26
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
for the year ended 30 August 2021
## **14 PENSIONS**
The School contributes to a group personal money purchase scheme with a public quoted company, for non-academic staff. Total Contributions of £257,435 (2020: £340,106) were made by the School in 2021. At the year end £nil (2020: £28,265) was accrued in respect of contributions to the scheme. From June 2021 all non academic staff were moved to the APTIS defined contribution scheme.
The School also participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. From September 2021 any new teachers were enrolled into the APTIS, a defined contribution Scheme and from 1 September 2022 all remaining teachers will be transferred to the same scheme. The School would have formally left the Teachers Pension Scheme effective from 1 September 2022. The pension charge for the year includes contributions payable to the TPS of £1,285,222 (2020: £1,816,048) and at the year-end £140,391 (2020: £152,383) was accrued in respect of contributions to this scheme. Total Contributions payable to the APTIS Scheme were £87,969 of which £28,265 was still outstanding at the year end.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.
On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. The consultation closed to response on 19 August 2021 and the Government is currently analysing the responses.
In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.
Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.
## **15 NET INCOME FOR THE YEAR**
|**NET INCOME FOR THE YEAR**|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Net income is stated after charging:|||
|Depreciation of tangible fixed assets|**518,330**|579,401|
|Loan Interest|**802**|4,414|
|Operating lease rentals – other|**91,008**|91,008|
|Auditor's remuneration|||
|Audit services for the school - current year|**20,546**|**28,390**|
|Audit services for the school - prior year (over)/under provision|**7,550**|**(5,420)**|
|Audit services - other|**-**|**-**|
|Non-audit services|**5,064**|14,968|
Page 27
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
for the year ended 30 August 2021
## **16 TANGIBLE FIXED ASSETS GROUP AND SCHOOL**
|**NGIBLE FIXED ASSETS**
**OUP AND SCHOOL**||||||
|---|---|---|---|---|---|
|Cost:
At 31 August 2020
Additions
Disposals
Transfer
At 30 August 2021
Depreciation:
At 31 August 2020
Charge for year
Disposals
Transfer
At 30 August 2021
Net book value:
At 30 August 2021
At 31 August 2020|Freehold
Property
£
2,006,578
91,640
-
-|Leasehold
Property
£
1
-
-
-|Motor
Vehicles
£
24,474
9,804
(14,900)
-|Plant
&
Equipment
£
2,671,271
183,032
(103,565)
-|**Total**
**£**
**4,702,324**
**284,476**
**(118,465)**
**-**|
||2,098,218|1|19,378|2,750,738|**4,868,335**|
||758,903
213,608
-
-|-
-
-
-|11,607
8,569
(14,900)
-|2,290,789
296,153
(103,565)
-|**3,061,299**
**518,330**
**(118,465)**
**-**|
||972,511|-|5,276|2,483,377|**3,461,164**|
||**1,125,707**|**1**|14,102|**267,361**|**1,407,171**|
||1,247,675|1|12,867|380,482|1,641,025|
The leasehold property relates to the school buildings that are leased from the RMIG Endowment Trust. See note 3 for further details.
## **17 INVESTMENTS**
|**GROUP**
Cost/valuation At 31 August 2020
Additions
Disposals
Gains/(Losses) arising from movements in valuations
Cost/valuation At 30 August 2021
Cash
Historical cost
**SCHOOL**
Cost/valuation At 31 August 2020
Additions
Disposals
Gains/(Losses) arising from movements in valuations
Cost/valuation At 30 August 2021
Cash
Historical cost|Shares in group
undertakings
£
999
-
-
-|Listed
investments
£
885,525
161,749
(160,231)
176,343|**2021**
**£**
**886,524**
**161,749**
**(160,231)**
**176,343**|2020
£
872,423
238,364
(258,633)
34,370|
|---|---|---|---|---|
||999|1,063,386|**1,064,385**|886,524|
||-|35,783|**35,783**|41,564|
||999|1,099,169|**1,100,168**|928,088|
||999|796,333|797,332|763,798|
||Shares in group
undertakings
£
999
-
-
-|Listed
investments
£
140,564
17,928
(12,388)
20,809|**2021**
**£**
**141,563**
**17,928**
**(12,388)**
**20,809**|2020
£
143,240
151,570
(160,021)
6,774|
||999|166,913|**167,912**|141,563|
||-|3,623|**3,623**|9,761|
||999|170,536|**171,535**|151,324|
||999|158,850|159,849|162,359|
The company holds 100% of the voting equity of RMS Management Limited, a company incorporated in England & Wales. The company was dormant throughout the year to 30 August 2021 and 30 August 2020.
At 30 August 2021, RMS Management Limited had an aggregate capital and reserves balance of £1,000 (2020: £1,000).
The consolidated figures include the investments held in the RMS Bursary Fund.
Page 28
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
## for the year ended 30 August 2021
## **17 INVESTMENTS (continued)**
The following investment was noted as representing greater than 5% of the portfolio value:
## **Market value**
|CG Portfolio Fd Real Return A GBP
8,386
Vanguard Funds Plc FTSE 100 Ucits Etf GBP Dis
7,894
Artemis Df Mngrs Income E GBP Dis
12,106
Threadneedle Inves UK Equity Income L GBP Dis
12,145
Aviva Investors UK US Equity Income Ii 5 Dis
9,563
Vanguard Funds Plc S&P 500 Ucits Etf USD Dis
10,630
**18 STOCK**
General Stock
**19** DEBTORS
Fees and extras
Less provision for doubtful debts
Other debtors
Prepayments and accrued income
Amount due from RMIG Endowment Trust
Amount due from RMS Bursary Fund
**20** CREDITORS
Amounts falling due within one year:
Trade creditors
Taxation and social security costs
Fee Deposits
Fees in advance
Other creditors
Accruals and deferred income
RMTGB Loan
Amount due to RMIG Endowment Trust
Amount due to group undertaking
Deferred income:
Brought forwards
Released in year
Received in year
Carried forwards|**Group**
**2021**
**£**
**16,740**|Group
2020
£
22,458|**School**
**2021**
**£**
**16,740**|School
2020
£
22,458|
|---|---|---|---|---|
||**16,740**|22,458|**16,740**|22,458|
||**Group**
**2021**
**£**
**237,874**
**(126,121)**
**8,482**
**451,806**
**-**|Group
2020
£
325,506
(74,722)
28,744
252,896
55,575
-|**School**
**2021**
**£**
**237,874**
**(126,121)**
**8,482**
**451,806**
**-**
**-**|School
2020
£
325,506
(74,722)
28,744
252,896
55,575
14,889|
||**572,041**|587,999|**572,041**|602,888|
||**Group**
**2021**
**£**
**482,860**
**235,537**
**-**
**1,635,928**
**208,395**
**124,328**
**144,000**
**1,040,614**
**1,000**|Group
2020
£
633,349
236,326
-
1,716,240
255,014
210,397
144,000
-
1,000|**School**
**2021**
**£**
**482,860**
**235,537**
**-**
**1,635,928**
**205,900**
**124,328**
**144,000**
**1,040,614**
**16,559**|School
2020
£
633,349
236,326
-
1,716,240
252,098
210,397
144,000
-
1,000|
||**3,872,662**|3,196,326|**3,885,726**|3,193,410|
||**Group**
**2021**
**£**
**1,952,543**
**(1,716,240)**
**1,635,928**|Group
2020
£
2,092,184
(1,991,287)
1,851,646|**School**
**2021**
**£**
**1,952,543**
**(1,716,240)**
**1,635,928**|School
2020
£
2,092,184
(1,991,287)
1,851,646|
||**1,872,231**|1,952,543|**1,872,231**|1,952,543|
Deferred income relates to schools fees and coach income received in advance for the following and future terms.
The RMTGB loan is repayable in equal monthly instalments until July 2027. Interest accrues at the Bank of England base rate.
Page 29
## **The Royal Masonic School for Girls**
## **NOTES TO THE FINANCIAL STATEMENTS**
## for the year ended 30 August 2021
|**21 CREDITORS DUE AFTER ONE YEAR**
Amounts falling due after more than one year:
RMTGB Loan
School fee deposits
Fees in advance
**22 FINANCIAL INSTRUMENTS**
**Carrying amount of financial assets**
Financial assets that are equity instruments measured at cost less impairment
Financial assets measured at fair value through profit and loss
Debt instruments at amortised cost
**Carrying amount of financial liabilities**
Measured at amortised cost
**Income and gains from:**
Financial assets measured at fair value through profit and loss|**Group**
**2021**
**£**
**592,389**
**1,178,834**
**126,384**|Group
2020
£
736,389
1,262,242
200,015|**School**
**2021**
**£**
**592,389**
**1,178,834**
**126,384**|School
2020
£
736,389
1,262,242
200,015|
|---|---|---|---|---|
||**1,897,607**|2,198,646|**1,897,607**|2,198,646|
||||**2021**
**£**
**1,000**
**1,100,168**
**563,559**
**973,647**
**176,702**|2020
£
1,000
928,088
559,255
1,240,844
34,370|
|**23 STATEMENT OF FUNDS**
**SCHOOL**
Unrestricted funds:
General reserve
Restricted funds:
Campaign for excellence
Cadogan Scholarship Fund
Other
Total restricted
Endowment funds:
Total endowment
Total school funds
Restricted fund
Bursary Fund
**Total Group Funds**
Benjamin Thomas Iggulden Income
Scholarship Fund
Benjamin Thomas Iggulden Income
Scholarship Fund|£
3,210,235
130,425
133,793
5,549
2,475
At 31 August
2020|Income
£
16,781,147
47,533
4,106
106,000|Expenditure
£
(17,074,782)
-|Transfer
Between
Funds
£
111,808
-
(110,808)
(1,000)|Gains/
(losses)
£
-
20,809|**£**
**3,028,408**
**177,958**
**158,708**
**741**
**1,475**
**At 30 August**
**2021**|
|---|---|---|---|---|---|---|
||272,242|157,639|-|(111,808)|20,809|**338,882**|
||55,240|-|-|-|-|**55,240**|
||55,240|-|-|-|-|**55,240**|
||3,537,717|16,938,786|(17,074,782)|-|20,809|**3,422,530**|
||897,801|95,470|(38,183)||155,893|**1,110,981**|
||4,435,518|17,034,256|(17,112,965)|-|176,702|**4,533,511**|
## _Permanent endowment_
The permanent endowment fund relates to the Benjamin Thomas Iggulden Scholarship Fund, which was set up in 1994 to provide scholarships for students at the school. The fund is invested currently in cash deposits and listed investments.
Unrealised and realised gains and losses are taken to the Endowment Fund. The balance of the fund is held in the general bank account and is separately stated in the balance sheet.
Restricted funds includes funds of £130,425 (2019: £158,285) relating to the net balance held of donations made to the ‘Campaign for Excellence’ fund. The Cadogan Fund is a hardship fund granted during the year. The other restricted funds represent donations made for specific purposes by individuals or organisations.
Page 30
## **The Royal Masonic School for Girls**
## **NOTES TO THE FINANCIAL STATEMENTS**
for the year ended 30 August 2021
|**24 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
**GROUP**
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
**SCHOOL**
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
**GROUP**
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
**SCHOOL**
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets|Unrestricted
funds
£
1,407,171
-
7,391,506
(3,872,662)
(1,897,607)|Restricted
funds
£
-
1,044,928
404,935
-
-|Endowment
fund
£
-
55,240
-
-
-|**2021**
**Total**
**£**
**1,407,171**
**1,100,168**
**7,796,441**
**(3,872,662)**
**(1,897,607)**|
|---|---|---|---|---|
||**3,028,408**|**1,449,863**|**55,240**|**4,533,511**|
||Unrestricted
funds
£
1,407,171
-
7,404,570
(3,885,726)
(1,897,607)|Restricted
funds
£
-
116,295
222,587
-
-|Endowment
fund
£
-
55,240
-
-
-|**2021**
**Total**
**£**
**1,407,171**
**171,535**
**7,627,157**
**(3,885,726)**
**(1,897,607)**|
||**3,028,408**|**338,882**|**55,240**|**3,422,530**|
||Unrestricted
funds
Restated
£
1,641,025
6,088
7,142,119
(3,191,068)
(2,198,646)|Restricted
funds
£
-
866,760
119,258
(5,258)
-|Endowment
fund
£
-
55,240
-
-
-|2020
Total
Restated
£
1,641,025
928,088
7,261,377
(3,196,326)
(2,198,646)|
||3,399,518|980,760|55,240|4,435,518|
||Unrestricted
funds
Restated
£
1,641,025
6,088
7,094,989
(3,193,410)
(2,198,646)|Restricted
funds
£
-
89,996
42,435
-
-|Endowment
fund
£
-
55,240
-
-
-|2020
Total
Restated
£
1,641,025
151,324
7,137,424
(3,193,410)
(2,198,646)|
||3,350,046|132,431|55,240|3,537,717|
## **25 COMMITMENTS UNDER OPERATING LEASES**
At 30 August 2021, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|Due within one year
Due between two and five years
Due after more than five years|**2021**
**Land &**
**Buildings**
**1,082,800**
**-**
**-**|**2021**
**Office**
**equipment**
**91,464**
**92,832**
**-**|2020
Land &
Buildings
1,082,800
-
-|2020
Office
equipment
91,008
160,644
-|
|---|---|---|---|---|
||**1,082,800**|**184,296**|1,082,800|251,652|
Page 31
## **The Royal Masonic School for Girls NOTES TO THE FINANCIAL STATEMENTS**
## for the year ended 30 August 2021
## **26 RELATED PARTY DISCLOSURES**
At the balance sheet date, a total amount of £1,040,614 (2020: £55,575 owed from) was due to the School from the RMIG Endowment Trust as a settlement figure in relation to the transactions between the School and the Trust whilst the lease negotiations were on going. In addition, the school may be entitled to a rebate on the rent charge applied in 2019/20, contingent on the signing of the lease. At the date of these accounts the revised lease agreements had not yet been signed although the settlement agreement had been agreed in principle.
At the balance sheet date, a total amount of £16,559 (2020: £1,000 owed from) was due to the School from the connected charity, the RMS Bursary Fund.
## **27 CONTROL**
The company is limited by guarantee and all present members are Governors. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up while he is a member, or within one year after he ceases to be a member, for the payment of the debts and liabilities of the company contracted before he ceases to be a member, such amount as may be required not exceeding £1.
## **28 LONG TERM AGREEMENT**
The school signed an agreement on 31 March 2016 entering into an unsecured loan agreement with RMTGB. The Loan has been undertaken to allow the school to buy out its liability relating to the RMTGB Staff Pension scheme. The loan shall be repaid in monthly instalments with the current rate of interest charged at the Bank of England rate. As at the 30 August 2018 the loan had been triggered and as a result the monthly pension payments since 31st March 2016 have been set off against the full loan liability.
## **29 NOTES TO THE CASHFLOW STATEMENT**
|**NOTES TO THE CASHFLOW STATEMENT**|||
|---|---|---|
|Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Gains on investments
Depreciation
Bank interest received
Dividends received
Interest payable
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
(Increase)/Decrease in stocks|**2021**
**£**
**97,993**
**(176,343)**
**518,330**
**(9,268)**
**(16,806)**
**802**
**375,297**
**15,958**
**5,718**|2020
£
(101,713)
(34,370)
579,400
(38,212)
(21,026)
4,414
(312,614)
1,604,830
(11,393)|
||**811,681**|1,669,316|
Page 32