Reed's School Annual Report and Accounts For the year ended 31 August 2021 Reed's School Annual report of the Trustees for the year ended 31 August 2021 Patron Her Majesty The Queen The Governors of Reed's School, who are also the Trustees of the Charity. present their annual report forthe year ended 31 August 2021 underthe Charities Act 2011, togetherwith the audited accounts for the year, and confirm that the latter comply with the requirements of the Act, its Constitution and the Charities Statement of Recommended Practice on Accounting and Reporting IFRS1021. Principal activity The Charity is based in Surrey and provides education through two schools: Reed's School in Cobham, an independent day and boarding school for boys which is co- educational in Sixth Form. with just under 800 pupils aged between 11 and 18. Ripley Court School in Ripley, an independent co-educational day school for up to 200 children aged between 3 and 11. which was acquired by the Charity on 31 October 2019. In addition, the Charity has an active trading subsidiary, Reed's School Enterprises Lld, that provides certain services to pupils of the Charity's schools. namely school uniform, sportswear and tuck shops. The company also lets out sport and social facilities when not in use by the schools and operates sports clubs. The Charrty has one dormant subsidiary, Reed's School Intemational Ltd. The Charity and its schools are committed to being truly representative of all sections of society and the school communities, and for each pupil and employee to feel respected and able to give their best. It aims to create a supportive and inclusive environment where all can reach their full potential, without prejudice and discrimination. It is the positive responsibility of all members of the community to encourage, cultivate and nurture an atmosphere and ethos free from discrimination in a culture where respect and understanding is fostered, and the diversity of people's backgrounds and circumstances is positively valued. All Trustees give their time voluntarily and receive no benefit from the Charity. Any expenses reclaimed from the charf(y are set out in note 3{cl to the financial statements. Charitab18 purpos8 The purpose of the Charity is to advance the education of boys and girls with preference for the education and maintenance of boys and girls who come within one or more of the following categories and in particular boys and girls who, in the opinion of the Governors, are in need of financial assistance: Boys or girls who have lost one or both parents; Boys or girls who have been abandoned by their parents or guardians- or Boys or girls whose parents are divorced or separated and whose home life is, for any reason, unsatisfactory. unhappy or abnormal. The Charity's founder, Andrew Reed, believed that simply because a child had lost a parent they should not be condemned to a life of deprivation and that with an education in a safe and caring environment these children could flourish. Continuing to build on the legacy of Andrew Reed is at the core of the Charity: a Foundation place is not merely a financial bursary but incorporates the specialist pastoral support that these children need to thrive. The Foundation team. teachers, housemasters and support staff are all specially trained to assist these children and provide them with stability and love. Aims, values and impact Andrew Reed founded the London Orphan Asylum, now known as Re￿j,S School, over two hundred years ago and his legacy of the transformative potential of education permeates the fabric of its two schools on a daily basis. Their ethos allows children to develop the self-esteem and self-confidence that underpin happy pupils. The outstanding pastoral care provided nurtures physical health. emotional maturity and spiritual richness, which in turn foster enthusiasm. perseverance, tolerance, compassion and kindness. The Charity has ambition for every child to succeed and wants all to realise their full potential through its schools. The schools seek to inspire within their pupils a lifelong love of learning by creating a culture of excellent, innovative, dynamic and progressive teaching. This ensures that as pupils learn, they are exGited, curious and. like their teachers, passionate about their interests. All pupil successes are celebrated, no matter how big or small, so that they grow in confidence and start to unlock their true potential. The schools see their dLrty as to prepare pupils for the demands of the modern world and give them desire to shape it for the better. Pupils are prepared for their next step. whether that is secondary education or university. and also for the careers that they will ultimately pursue. Pupils are educated to understand the responsibilities they have to society on both a local and global sGale and encouraged to develop the mind-set to grow and evolve. Reed's School wants its pupils to leave as rounded individuals with a strong moral compass who exhibit the core values of integrity, compassion, curiosity, resilience, responsibility and independence. Ripley Court School supports its pupils to become confident, inquisitive and compassionate learners who embody values of perseverance, aspiration. curiosity and kindness. The uniqueness of every individual child is celebrated. Public b8n8fit The Governors have had regard to the Charity Commission guidance on public benefit. The Charity provides a number of means-tested bursary awards to Ghildren who have lost the support of one or both parents and who are in need of pastoral care and financial assistance to enable them to attend Reed's School. The target is for 10% of the pupil population to be Foundation-pupils and in this financial year there were 68, 9.OYo12020.' 71, 9.7Yol. During the year a total of 29512020.. 3271 pupils benefited from scholarships, bursaries. other awards and discounts. In 2012, the Reed's Primary and Secondary Forum was established as a means to extend the reach of the Charity and raise the aspirations and attainment of children in the state sector. The Forum offers a programme of activities and events throughout the year that are aimed at enriching the children's curriculum and raising aspirations. A full range of exciting activities from sport to the arts to STEM across a variety of formats. including half day, full day and regular weekly activities are planned with the Charity's operational partners, such as Chelsea FC Foundation, assisting with the delivery of some programmes. In a typical year 3,500 state school children benefit from these partnerships however due to covid restrictions in the year, activities were limited to online robotics masterclasses. but will recommence hosted at Reed's School using its facilities and involving its staff and pupils. Pupils from outreach partner schools are also invited to attend School-run Futurecareers seminars which are held threetimes ayear and continued online during the reporting period. The Charity's facilities at its schools are also offered to local schools for no charge or at significantly reduced rates. All partner schools are encouraged to recommend children for means-tested Foundation bursaries. In July 2021 the Association for Admissions, Marketing and Communications in Independent Schools awarded the Charity the Partnership / Outreach Impact Award for its work in bringing together key operational charities, funding from trusts and individuals, and state schools. Grant-making policy Scholarships, bursaries and other awards are granted on the basis of a child's educational potential or in accordance with the Charity's purpose. In the year ended 31 August 2021 these totalled £3.1 m million12020: £3.0 million}. This included direct funding for Foundation pupils of £1,030k and a further £481 k of funding from external supporters of the Foundation. The availability of bursaries for fee assistance is advertised on the school websites - Reed's School- www.reeds.surrey.sch.uk' Ripley Court School- www.ripleycourt.co.uk. The terms and conditions for each type of award are available on request. For Foundation pupils the Selection Committee looks to secure a package of funding for each child which could include the parent/guardian making some financial contribution, funding from the Charity and sponsorship from outside trusts and charities. The decision of the Foundation Selection Committee is final and not subject to review unless there is a significant change of circumstances. STRATEGIC REPORT Achievements With the cancellation of the summer's public examinations for a second year running, Reed's School pupils were awarded grades based on Teacher Assessed Grade submissions. These were determined by teachers using evidence gathered largely through in-school assessment in the 2021 Summer Term and with reference to significant evidence gathered earlier in the course. 2020 grades were based on centre-assessment using evidence gathered during the course. 67 % of GCSE grades were awarded at grade g or 8 {2020= 57Yol and 1000A at grades 9 to 512020.. 99 % I, meaning that the vasl majority of pupils were able to access the A Level courses of their choice in the new academic year. At A-Level, 78¥0 of grades were awarded at A" or A {2020.' 63¥01, the increase largely in line with the increase seen in independent school grades nationwide. A total of 146 students took up university places through the 2021 application cycle including two Oxbridge acceptances. Other popular institLrtions continue to be the Universities of Durham, Bristol, Leeds. Nottingham, Birmingham and Exeter - all Russell Group Universities. Given the nature of education provision in 2020121, individual pupil achievemant far outweighs these results in importance to the Charity. Reed's School is proud ofthe way in which the whole community adapted to the demands of continuing education during significant periods of lockdown in the 2020121 academic year. Through embracing the opportunities provided by digital technology. Reed's School not only delivered live lessons remotely as its default methodology, but also provided a wide range of extra-curricular activities such as sporting challenges, musical ensembles and artistic exhibitions, as well as key pasloral touchpoints such as year-group assemblies and chapel services. At Ripley Court School the 11 + cohort comprised 29 pupils who applied to a total of 28 different schools. Sixty offers were received including eleven scholarships. The team were incredibly proud of their pupils, results particularly given the challenges posed by the implementation by many schools of on-line application proGesses in response to the pandemio. This resulted in intense competition for places, particularly for boys, as pupils applied to many more schools than in a usual year. In May 2021 Ripley Court School assessed its pupils to measure Ihe effect of the pandemic and remote learning. Over 709A of pupils had made progress in English and Maths with the greatest progress demonstrated in Reading. GL Assessment's Report on reading resilience during the pandemic identified that reading scores for primary school age pupils nationally had declined by the equivalent of two months lost learning with "standard age scores" falling by 1.9 points. However, the scores for Ripley Court School pupils have increased generally demonstrating the value of the online learning programmes and tools put in place during the pandemic and the positive partnership between parents and the School. Fundraising The Charity's Development Office. through its fundraising activities, continues to provide an important contribution to Reed's School and its Foundation pupils. The Charity is registered with the Fundraising Regulator and follows its fundraising standards. No complaints have been received about the Charity's fundraising activities. During the year ended 31 August 2021, the Development Office generated £883k and a further £908k in committed longer-term giving. The Friends of Reed's School IFORSI donated £16k. Thè breakdown of donations is as follows- Foundation funding Fundraising specifically to sponsor Foundation pupils and to run outreach programmes with primary and secondary schools totalled £801 k {2020: £739kl, some of which was restricted giving and is part carried fonmard to future periods. A further £908k was pledged for committed future funding for Foundation pupils. Included in this year's fundraising is £411 k12020.' £314kl raised via the Reed's School Annual Foundation Appeal. The Charity's Annual Foundation Appeal has been held since 1815 and is one of the oldest continuous charitable appeals in the country. Mr D Riches led the Appeal for the year ended 31 August 2021, strongly supported by individuals, trusts and foundations, City livery companies, other companies, and the wider Reed's School community. Endowm8nt and R8Strict8d Funds Through the Growth Fund and the Cazenove Andrew Reed Bursary Fund, the Charity has been focussing on building the School's funds to ensure the long-term sustainability of the Foundation. The total amount raised in the year for these funds was £31 k12020.' £156kl. Capital fvndraising Fundraising for capital projects totalled £51k 12020.. £25k). This was comprised mainly of committed regular giving towards school facilities. Investmentperforman¢e Under the Act and Constitution, the èndowmènt and othèr funds are permitted to bè invasted in securities and propety. This is represented in the accounts by freehold land, buildings and other School amenities, securities quoted on the Stock Exchange and other approved investment vehicles. In June 2021 a decision was made to transfer investments in securities quoted on the Stock Exchange to holdings in the Schroder Charity Multi-Asset Fund. As at 31 August 2021 the Charity's investments totalled £5.8m and had generated a total return of 140 for the year ended on the same date. During 2020 the Charity used £1.5m to part finance major works to enhance classroom infrastructure including laboratories at Reed's School. The Governors believe that the investments are appropriately managed to provide current income for the support of Foundation pupils while maintaining capital values for the long term. FINANCIAL REVIEW Results for the year Net income amounted to £1,645k {2020= £5,236kl for the financial year ending 31 August 2021. Net income for 2020 included the merged assets of Ripley Court School. All surpluses generated are used to benefit the pupils through funding better facilities and through further raising the quality of education provided. One-off significant cost savings were achieved during Government-imposed closures for covid in the area of catering and budgeted but unrealised school activity provision, which has led to an increase in surplus for the year despite some reductions in termly fees being offered to fee-payers. The wholly owned subsidiary, Reed's School Enterprises Limited, was unable lo let facilities for much of the year due to covid restrictions imposed by the Government, which also impacted the operation of the School uniform and tuck shops. The Company did not therefore contribute significantly to the School Fund. Ripley Court School generated a loss for the financial year of 173k (2020: {£143kll. The consolidated net assets of the Charity at 31 August 2021, principally land and buildings, were £33.3m {2020'. £31.7ml. This does not take account of the market value of the land and buildings at Reed's School which are included on the Balance Sheet at cost. Reserves The Charity's policy remains to build its reserves to fulfil its charitable purpose, to fund continuing investment and improved infrastructure and facilities and to maintain adequate free reserves to enable any unforeseen emergency to be met from its own resources. The Charity aims to achieve these reserves by means of annual operating surpluses and judicious management of its investment assets, supplemented by periodic appeals for both specific and general purposes. At 31 August 2021, the free reserves (excluding designated and restricted funds and tangible fixed assets, less loans to fund their purchase) were £4.9m12020'. £6.2m). This represents 13 12020: 181 weeks, expenditure. Going Concern As part of the effective stewardship of the Charity the Governors regularly review the financas and budgets together with a cash flow analysis. The Charity has a continuing programme of refurbishment, development and investment to maintain excellent teaching facilities for pupils. The policy of the Governors is to build reserves, which are sufficient to maintain and develop the quality of the schools, educational offer and infrastructure as well as to provide resilience against the impact of uncontrollable and unforeseeable events which might jeopardise their future. This policy does not operate in isolation but is complemented by strict management of cash flow and banking facilities which provide the liquidity necessary to pay debt as it arises as well as a necessary margin to protect against uncontrollable and unforeseeable events. The Governors consider that, given the strength of the Charity's balance sheet, the stable cash flow from fee payers, the ongoing popularity and reputation of the schools, and the available banking facility that can be called upon if need arises, the Charity remains a going concern. As part of their assessment the Governors have taken into account the impact of the Covid-19 pandemic and with the experience gained from closures in 2020121, together with cautious measures such as the retention of a £3m Coronavirus Business Interruption Loan Scheme ICBILSI loan. the Govemors are confident that the Charity can operate through any future challenges arising from the pandemic. The Governors have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. They continue to adopt the going concern basis of accounting in preparing the annual financial statements. PRINCIPAL RISKS AND UNCERTAINTIES Political and economic risks Senior leadership continues to monitor the prospects for the UK economy given the substantial dislocation caused by the Covid-19 pandemic and the knock-on effect this is having on supply chains. Both these matters may have adverse effects on the Charity's schools, its staff and fee payers. In addition, a change in Government may result in the removal of charitable status for tax purposes and the imposition of VAT on school fees, both of which would significantly impact fee affordability- Financial risks Reed's School is over-subscribed with a strong pipeline of future entrants. Pupil numbers at Ripley Court School are below the level required for it to achieve a standalone breakeven financial position. Marketing efforts have been increased including a relaunch of the website and prospectus and this has resulted in significant uplifts in both enquiries and registrations. It is expected that pupil numbers will rise for a positive financial position for Ripley Court School from 2022123. Senior leadership have conducted a cost review and are satisfied that no further efficiencies can be made without negatively impacting the seNices provided. The Governor committee for Ripley Court School has met on a more regular basis during the transition period to review the academic progress of pupils and the pastoral care arrangements in place, to monitor the financial position of the School and to support its Headmistress and Admissions team in their efforts. This level of scrutiny and support will continue into the 2021122 academic year and during the Headmistress, maternity leave commencing in January 2022. The cost of membership of the Teacher's Pension Scheme increased significantly in 2019 and the Governors were conGerned that the higher cost was unsustainable and that further increases may be seen. To this end li proposed that a defined contribution pension arrangement be adopted to protect the Charity from further unaffordable increases in employment costs and the Governors are in consultation with teachers on this proposal. No change to the pension arrangements is expected before April 2022, when it is proposed to introduce a hybrid arrangement allowing those that wish to remain in TPS to do so but offering a defined contribution arrangement for those that prefer a more flexible scheme and for new teachers to the School. The cost of pension provision and associated benefits for the Charity will then be Gapped at 200/0 of teachers, salaries from September 2024. Health and safety risks Health and safety remains a significant area for risk management which involves regular and detailed risk assessments, planning and training for awareness of hazards. Health and Safety committees led by senior leadership, attended by staff and with Governor oversight are held termly at each school to monitor accidents, near-misses, changes in policy and training. During the year the Reed's School committee updated its policies for head injuries and overplaying in rugby in line with new national guidance and the Finance and Investment Committee approved capital expenditure for the replacement of one ofthe Reed's School astroturf pitches which was reaching the end of its useful life. An increase in mental health challenges has been noted, particularly amongst teenage pupils, both during covid-related lockdowns and on the subsequent return to school. Both schools use tools to track and monitor the wellbeing of pupils and the Reed's School Pastoral Care and Ripley Court School Governor committees have monitored and overseen the policies in place to support the wellbeing of both pupils and staff. Additional training on mental health in children has also been undertaken by relevant staff members. The Governors are confident that the mental health of pupils is adequately regarded and safeguarded in both schools. - - - - - - - - - - - - - - - - 8 Prepare pupils for the future through an innovative and dynamic curriculum that develops a wide skill set to prepare them for the ever-changing world and provide personalised careers and higher education advice. A full review of both the Reed's and Ripley Court school campuses is planned for 2021122 with a view to creating five year Master Plans that link back to the overarching strategy. It is recognised that Ripley Court School requires investment to make better use of and improve existing buildings and facilities. At Reed's School the new astroturf pitch was operational from November 2021 and certain improvements have been made to the Barnett Suite including a reconfiguration of classrooms to laboratories. computer-aided facilities management system is being installed for the more effective management of the two campuses and to aid financial planning for maintenance costs and health and safety compliance. The installation of a borehole is being investigated to protect the grounds at Reed's School from periods of drought and provide cost efficiencies. The Charity's trading subsidiary is looking at letting arrangements for the facilities and grounds at Ripley Court School OLrtside of school time as a source of revenue, in the same way as performed for Reed's School. REFERENCE AND ADMINISTFIATIVE INFORMATION Governing documents The London Orphan Asylum, known as Reed's School, was founded in 1813 and is registered with the Charity Commission under charity number 312008. The Patron. Members, School Officers and professional advisers are listed on pages 10 and 11. Further information on the schools, including the latest ISI Inspection Reports, is available on the sGhools' websites Iwww.reeds.surrey.sch.uk and www.ripleycourt.co.uk}. Structure, governance and management The Charity was incorporated by an Act of Parliament in 1845. The Act has since been supplemented by a scheme written by the Minister of Education under the Endowed Schools Act 1869-1948 and approved by Her Majesty in Council on 24 January 1957. This was further varied by a scheme of the Charity Commissioners for England and Wales dated 7 May 1997 and a Constitution of 21 May 1997. Under thè Constitution, the Members of the Charity are the Presidents, Vice-Presidents, Treasurer and Governors and any others who are offered membership of it by the Governors from time to time. Mr M Wheeler was appointed as Joint President for his services to the School with effect from 1 September 2021. Governors Mr M Wheeler and Mrs K McElhatton retired as Governors in August 2021. The appointments of Messrs M Soeting and C Taylor as Governors in January 2021 were ratified at Annual Court in June 2021. Mr M Baker was nominated as Chair of the Governors from 1 September 2021. R8cruitm8nt and training Governors are appointed on the basis of eligibility, personal competence. skills and availability. The Governors are a self-appointing body and new Governors are inducted into the workings of the Charity and its schools through meetings with the Chairman, Headmaster, Bursar and an induction programme. Training is arranged for all Governors as required on a regular basis with online, virtual and in-person modules. Organisational management The Governors have overall responsibility for the Charity and for its schools. The Governors meet four times a year. The committees of the Governors are listed on page 12. The day-to- day running of the School is delegated to the Headmaster, the Bursar and a Senior Leadership Team. The Headmaster andlor the Bursar attend all the committees with relevant members of senior leadership. The Reed's School Designated Safeguarding Lead reports at all Governors, and Risk Management Committee meetings and the Ripley Court School Designating Safeguarding Lead reports to RCS Governors Committee. Staff remuneration is considered each summer. The Nominations and Remuneration Committee considers and sets the remuneration for the Headmaster, Bursar and Senior Deputy after consideration of benchmarking surveys such as those provided by the Association of Governing Bodies of Independent Schools IAGBIS) and Baines Cutler Solutions. Group structure The School has a wholly owned trading subsidiary, Reed's School Enterprises Limited (Registered Company Number 25030131. The principal activities of the Company are the provision of community swimming. tennis and cricket lessons, letting of sports, general and social facilities including the sale of clothing and sportswear, and the provision of a tuck shop. The School has a further wholly owned dormant subsidiary, Reed's School International Ltd (Registered Company Number 98745541. In 2019 Ripley Court School merged into the Reed's School's charitable framework. The two schools separately maintain their names, identity, location, structure and admissions process. The Headmaster of Reed's School is the Executive Head of the merged entity. Support functions including finance {bursaryl, human resources, IT and estates are merged and managed centrally. The Ripley Court School Governors, including the Chair, are Trustee Governors of the Charity or members ofthe senior leadership of Reed's School. Employmènt objectives The School is an equal opportunities employer. All applications are anonymised at the initial stage for long listing and full and fair consideration is given to short-listed job applications from disabled persons with due consideration to their training and employment needs. Consultation with employees, or their representatives, has continued at all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interest. Inv8Stm8nt policy The Governors aim to invest for growth of the investment funds in real terms into perpetuity within acceptable levels of risk and delegate the management of the investment funds to investment managers, Cazenove Capital, on a discretionary basis. In June 2021 a decision was made to transfer all investments to holdings in the Schroder Charity Multi-Asset Fund. The Finance and Investment Committee meets four times a year and at least twice a year with the appointed Investment Managers to monitor their management of the portfolio and to review 10 performance. For this purpose, formal reports and valuations incorporating comparative measurement are presented. A total return distribution of 3.5¥0 per annum is provided and this can be drawn from both income and capital. This total return distribution is reviewed on an annual basis. ACCOUNTING AND REPORTING RESPONSIBILITIES The Charities Act 2011 requires the Governors, as the Trustees of the Charity, to prepare accounts for each financial year which give a true and fair view of the Charity's financial activities during the year and of its financial position at the end of the year. During 2021 Crowe U.K. LLP were appointed as the Charity's auditors after a thorough competr(ive tender process conducted by the Finance and Investment Committee. In preparing the accounts. the Governors should follow best practice and.. Select suitable accounting policies and then apply them consistently. Make judgements and estimates that are reasonable and prudent. Follow applicable accounting standards and the Charities SORP IFRS102}, disclosing and explaining any departures in the accounts. Prepare the accounts on the going concern basis unless it is inappropriate to assume that the School will continue in operation. The Governors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the Charity at any time, and enable them, as Trustees, to ensure that the accounts comply with charity law. The Governors are also responsible for safeguarding the assets of the Charity and ensuring their proper application, in accordance with charity law, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities. The Governors confirm that.. So far as they are aware, there is no relevant audit information of which the Charity's auditor is unaware., and As the Trustees of the Charity, they have taken the steps that thay ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that information. This report was approved by the Governors on 8 December 2021. M BAKER CHAIRMAN OFFICERS AND ADVISERS OF REED'S SCHOOL Governors land Committee member8hipl who served throughout the year ended 31 August 2021 and later appolntments Mr M Wheeler CBE - Chair11, 4, 6, 9, 101 retired 31 August 2021 Mr M Baker11, 9 - Chair, 101 appointed Chair with effect from 1 September 2021 Mrs M Donald - Hon Treasurer11. 4 - Chair. 6. 9, 101 Mrs C Davies-Shatz181 Mrs J Denham17, 81 Mr J A G Fulton121 Mrs K Lane181 The Right Hon. D Laws111 Mr P Madden141 Mts K McElhalton131 resigned 31 August 2021 Dr A M McLean16, 7 - Chair, g and designated Health & Safety Governor for Reed's School) Mr R Mohindra18 and designated Health & Safety Governor for Ripley Court School) Mrs L F Napier141 Mts D M Peacock11, 2, 5 - Chair, 7, 81 Mr S T Poole12 - Chair. 6, 8 - Chair, 9, 101 Miss K Richardson12, 6, 71 Mr M Robinson13 Chair, 6, 91 Mr J Simpson12, 5, 81 Mr M Soeting141 apFX)inted 1 January 2021 Mr N D W Taunt14, 10 - Chair and Chair / director of Reed's School Enterprises Ltd) Mr C Taylor141 appointed 1 January 2021 Mrs N Krekis appointed on 16 September 2021 Committees." 111 Andrew Reed Foundation Board 121 Education Committee for Reed's School 131 Estates Committee 141 Finance & Investment Committee 151 Foundation Selection Committ 161 Nominations & Remuneration Committee 171 Pastoral Care Committee for Reed's School 181 Ripley Court School Governor Committee 191 Risk Management Committee 1101 TPS Working Party Vi&tor The Lord Bishop of GLJildford School Officers Ikey18ad8rship personnel} Headmaster Mr M W Hoskins BA (Honsl MA Msc Bursar & Secretary to the Govemors Mrs L K Hurford Bsc (Honsl ACMA School Advisers Auditor Crowe UK LLP 55 Ludgate Hill London EC4M 7JW 12 Bankers Lloyds Bank 25 Gresham Street London EC2V 7HN Insurance Brokers Marsh Limited (appointed 1 September 20211 4 Milton Road Haywards Heath West Sussex RH16 1AH Investment Managers Cazenove Capital 12 Moorgate London EC2R 6DA Medical Officer Dr R J Draper MB ChB DA DCH DRCOG MRCGP Oxshott Medical Practice Holtwood Road Oxshott Surrey KT22 OQL Solicitors Penningtons Manches Cooper LLP 125 Wood Street London EC2V 7AW Registration information Charity registration number 312008 Flegistered Office Reed's School Sandy Lane Cobham Surrey Kf11 2ES 13 Reed's School Independent Auditor's Report to the Members of Reed's School Opinion We have audited the financial statements of Reed's School 'the Charity, and its subsidiary 'the group, for the year ended 31 August 2021 which comprise the Consolidated Statement ol Financial Activities, Consolidated and Charity Balance Sheets, Consolidated Statement of Cash Flows and notes to the financial statements, including 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 Iunited 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 Charity's affairs as at 31 August 2021 and of the group's 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 Charities Act 2011. Basis for opinion We conducted our audtt in accordance with International Standards on Auditing IUK) IISAS IUK)) and applicable law. Our responsibilities under those standards are further described in the ALJditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant lo 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. Gonclusions relating to going ¢on¢ern In auditing the financial statements. we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perforrned, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's or the group's ability to Continue as a going concern for a period of at least twelve months trom 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. Oth8r infonnation The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report. other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially rnisstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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. Matters on which w8 are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion= the information given in the financial statements is inconsistent in any material respect with the trustees, report- or 14 Reed's School Independent Auditor's Report to the Members of Reed's School sufficient and proper accounting records have not been kept by the parent Charity. or the financial statements are not in agreement with the accounting records and returns., 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 9, the trustees 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 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 Charity 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, bLrt is not a guarantee that an audit conducted in accordance with ISAS IUK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities. including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to Iraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, taxation legislation. together with the Charities SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education Ilndependent School Standards) Regulations 2014, Data Protection Regulation IGDPRI, Health and safety legislation and employment legislation. Auditing standards limit the required aLJdit procedures to identify non-compliance with these laws and regulations to enquiry of the Truslees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of donations income and other ancillary income, and the override of controls by management. Our audit procedures to respond to these risks included 15 Reed's School Independent Auditor's Report to the Members of Reed's School enquiries of management and the Finance and Investments Committee about their own identification and assessment of the risks of irregularities. sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing any regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example. the further removed non- compliance with laws and regulations [Irregularitiesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery. intentional omissions, misrepresentations. or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Us8 of our r8POrt This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audtt work has been undertaken so that we might stale to the charitable company's members those rnatters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. Tina Allison Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London 20 January 2022 16 Reed's School Consolidated statement of financial activities for the year ended 31 August 2021 2021 Total funds 2020 Total lunds Notes Unrestricted funds Restricted funds General £'ooo Designated £'ooo £'ooo E'ooo E'ooo Income 8ndendowments from." Donations andlegacies Gift ofn8t assets from Ripley Court School Charitable activities Schoolf8es receivable Ancillary trading income Other trading 8Ctiviti8s Non-anc//lary trading income Otheractivities Otheroper8tlng Income Govemmentgrants receivable Investments Income from investments 439 459 898 1,020 4,632 18,646 170 74 18,720 170 16,912 113 471 128 471 128 548 85 175 175 430 93 110 203 208 TotalinGome 20,122 74 569 20,765 23,948 Expenditure on.. Ralslng funds Non-ancillary trading Fundraising and development costs Financing costs Chan"table actiwti8s Education andgrant making 15001 15001 15681 12451 13051 12451 13051 12531 11831 118,2091 1711 14861 118,7661 117,4901 Tot818xpenditur8 119,2591 [711 14861 119,8161 118,4941 Netgains/(losses} on investments 214 482 696 12181 NetinGome 1,077 565 1,645 5,236 Transfers behveen fvnds 10-11 107 11071 Netmovement in funds 1,184 458 1,645 5,236 Reconclllatlon of funds.. Total funds brought fonyard 27,082 95 4,521 31,698 26,462 Total funds c8rrledfonvard 28,266 98 4.979 33,343 31,698 The notes on pages 20 to 38 form part of these financial statements. Reed's School Consolidated and Charity Balance sheets as at 31 August 2021 Notes Consolidated Charity 2021 2020 Irestatedl £'ooo 2020 Irestatedl £'ooo 2021 £'ooo £'ooo Fixed assets: Tangible assets Investments 31,053 5,819 29,981 5,081 31,043 6,069 29,971 5,331 Total fixed a88ets 36,872 35,062 37,112 35,302 Current assets.. Stocks Debtors Cash at bank and in hand 169 331 10,304 154 212 10,417 416 10,011 185 10,200 Total current assets 10,804 10,783 10,436 10,393 Liabilities.. Creditors.. Amounts falling due within one year 16,5631 15,0231 16,5321 14,9901 4,242 5,760 3,904 5,403 Total assets less current liabilities 41,113 40,822 41,016 40,705 Creditors.. Amounts falling due after more than one year (1,7701 19.1241 (7.7701 19.1241 Total net assets 33,343 31,698 33,246 31,584 The fund8 of the Charity: Restricted income funds 10 4,979 4,521 4,979 4,521 General funds Designated funds Total unrestricted funds 28,266 98 28,364 27,082 95 27,177 28,169 98 28,267 26,968 95 27,063 Total Charity funds 33,343 31,698 33,246 31,584 The surplus for the financial year dealt with in the financial statements of the parent Charity was £1,66312020'. £5,312). The notes on pages 20 to 38 form part of these financial statements. The financial statements were approved by the Governors and authorised for issue on 8 December 2021 and signed on its behalf by.. UcTrLtsL M BAKER CHAIRMAN 18 Reed's School Consolidated statement of cash flows for the year ended 31 August 2021 2021 £'ooo 2020 £'ooo Cash flow8 from Operating activities Net income Adjustments for.. Depreciation of tangible assets Ilncreasel in stocks Ilncreasel/decrease in debtors Increase/ldecreasel in creditors IGainllLoss on investments Increase in fees in advance Gift of Ripley Court School assets Net cash flows from operating activities 1,645 5,236 1,293 1151 11191 313 16961 349 1281 252 14451 218 383 4,632 1,927 2,770 Cash flows from investing activities Payments to acquire tangible fixed assets Payments to acquire investments Receipts from sale of investments Cash acquired from Ripley Court School Net cash flows used in investing activities 12.3661 11.5631 1,522 12.3841 13,2891 3,096 259 12.3191 12.4071 Cash flows from flnanclng actlvltles Cash inflows/loutflowsl from borrowing/repayment of long-term creditors 14761 5,236 Net Idecreasellincrease in cash and cash equivalent8 11131 4,844 Cash and cash equivalents at the beginning of the year 10,417 5,573 Cash and cash equivalents at end of year 10,304 10,417 Analysis of change in net debt Cash and Cash equlvalent 10,304 10,417 Net debt Net increase in Fees in Advance 350 47 383 5,236 5,619 D8crease/llncreasel in loan finance Movement in Net Debt 11271 Net debt at 1 September 2020 {20191 11,850 6,231 Net debt at 31 August 2021 {2020) 11,723 11,850 The notes on pages 20 to 38 form part ot these financial statements. 19 Reed's School Notes to the financial statements for the year ended 31 August 2021 1. Accounting policies 1. l Accountlng conventlon 58sis ofprep8r8tion These financial statements are prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable by charities preparing their accounts in accordance with applicable charity law in the UK and Financial Reporting Standards applicable in the UK and Republic ol Ireland IFRS1021 leffeclive 1 January 20151- (Charities SORP IFRS 10211, the Financial Reporting Standards applicable in the UK and RepLJblic of Ireland IFRS1021 and the Companies Act 2006. The financial statements consolidate those of the School with its wholly owned subsidiary trading company.. Reed's School Enterprises Limited. Reed's School Intemational is not consolidated on the basis that there were no significant transactions in the year. The Charity has taken the advantage of the exemption available to a qualifying entity in FRS 102 from the requirement to present a Charity only Cashflow Statement with the consolidated financial statements. Going concem Income expected to be available depends most importantly upon the estimate of pupil numbers as well as investment income, donations and trading income. Expenditure is primarily dependent upon salary costs, pension contributions and the planned maintenance of the infrastructure. The Trustees have reviewed budgets and projeded cash flows and are confident that with continued support of existing bank funding levels the Charity will have adequate resources to continue in operational existence for the foreseeable future. As part of their assessment the Governors have taken into account the impact of the Covid-19 pandemic and with the experience gained frorn the March to July closure, together with cautious measures such as the taking of an additional £3m CBILS loan, the Governors are confident that the School can operate through any future challenges arising from the pandemic. Consequently, the Trustees consider it appropriate to prepare the financial statements on the going concern basis. 1.2 Income Fees andother incom Fees receivable and charges for services and for use of premises are accounted for in the period in which the seNice is provided. Fees received in advance of education to be provided in future under an advance fee payments scheme contract are held as liabilities until either taken to income in the term when used or else refunded. Donat￿nS and/egaci8S Donations and legacies consist of all donations land related tax recoverablel received during the year, including those resulting from legacies (including cases whereby the School is notified of a legacy in the year and the amount receivable can be reliably estimated at the year-endl, the Annual Foundation Appeal and fundraising events. Investmentincome Investment income, dividends and interest, including the associated tax credits, have been recorded on a receipts basis. Interest on term deposit has been recorded on an accruals basis. 1.3 Expenditure Expenditure is accounted for on an accruals basis. Overhead and other expenditure nol directly attributable to a particular cost centre is apportioned over the relevant categories on the basis of management estimates. The irrecoverable element of VAT is included with the item of expense to which it relates. Governance costs comprise the costs of running the Charity, including strategic planning for its future development. also external audit. any legal advice for the Govemors, and all the costs of complying 20 Reed's School Notes to the financial statements for the year ended 31 August 2021 with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory financial statements and satisfying public accountability. 1.4 Funds Restricted funds In compliance with SORP IFRS1021, any income which has restrictions attached to the use of such funds by the Charity, is separately identified within the Charity's accounts as restricted funds. Where these funds are utilised by the Charity for the purposes for which they are specified, they are released to match the corresponding expenditure in the appropriate accounting periods. Further information is set out in Note 10. Designated fvnds Designated funds are those which the Trustees have set aside for future specified purposes. These funds form part of the unrestricted funds and can be used at the discretion of the Trustees. 1.5 Tanglble fixedassets and deprec18tlon Tangible fixed assets are stated at cost less depreciation. Assets under construction are stated at cost. Cost comprises directly attributable costs and professional costs. Such assets are not depreciated until they are reclassified after completion. There is a de minimis capitalisation limit of £500. Depreciation is provided at rates calculated to write off the excess of cost over the estimated residual value over the estimated useful economic life of each class of asset, subject to annual review. These rates are currently as follows.. Land and buildings Fixtures, fittings and equipment Computer equipment Motor vehicles 2%- 10% p.a. straight line 10% p.a. straight line 1000h in year of purchase 20Vo p.a. straight line 1.6 Investments Investments are valued in the balance sheet at their bid price at the balance sheet date. The investment manager, Cazenove Capital Limited, is remunerated by way of management fees paid within those pooled funds which it manages. 1. 7 Impairmentreview An impairment review of fixed assets is Carried out by the Governors on an annual basis to ensure that the carrying value of fixed assets is not higher than the recoverable amount. 1.8 Stock Stock is valued at the lower of cost and net realisable value. 1.9 Financialinstruments Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost wtth the exception of investments which are held at fair value. Financial assets held comprise cash at bank and in hand, together with accrued income, trade and other debtors. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise bank loans, those held at cost comprise trade 21 Reed's School Notes to the financial statements for the year ended 31 August 2021 creditors, other creditors and accruals. At the balance sheet date, the group held investments at fair value through income and expendtture of £5.8m12020 E5.1 ml. I. 10 Deposits The Governors have reviewed the contract terms under which Pupil fee deposits are held by the school. Although under normal circumstances these will be repaid over future years when the pupils complete their education at the school, pupils can leave at earlier dates. The school does not therefore have an unconditional right to retain the individual deposits for at least 12 months after the balance sheet dat8 and, in line with the requirements in FRS 102. the balance of the depostts held at 31 July 2021 have been included within current liabilities. A prior year restatement has been made to match the treatment in relation to the prior year Pupil fee deposits balance. 1. 11 Op8rating 188ses Rentals payable under operating leases are charged on a straight-line basis over the lease temi. 1. 11 Pension sch8m8s The School contributes to the Teachers, Pension Defined Benefits Scheme at rates set by the Scheme Actuary and advised to the Board by the Scheme Administrator. The Scheme is an unfunded multi- employer pension scheme. In accordance with FRS 102 the scheme is accounted for as a defined contribution scheme. The School also contributes to a defined contribution group personal pension or the People's Pension for support staff. Contributions to all schemes are charged as they become payable in accordance with the rules of the schemes. 2a. Charitable activities - fees receivable 2021 2020 £'ooo £'ooo Fees receivabl8 consist of: School fees Less: total scholarships. bursaries and other awards 21.825 13,5521 19,574 13,0421 Net fees receivable 18,273 16,532 Add back.. bursaries and other awards paid for by restricted funds 447 381 Total school fee8 receivable 18.720 16,912 Scholarships, bursaries, other awards and discounts were given to 295 pupils12020= 3271- Within this, means-t8Sted bursaries totalling £1,1 Ook were awarded to 70 pupils12020'. £1,050k to 70 pupils). 2b. Oth$r op$rating income 2021 2020 £'ooo £'ooo Government grants re￿1vable 175 430 22 Reed's School Notes to the financial statements for the year ended 31 August 2021 Government grants receivable related to the Coronavirus Job Retention Scheme and are recognised in the Consolidated Statement ol Financial Activities in the same period as the related expenditure 3. Analysis of expenditure Total expenditure 2021 Total 2020 Total Staff costs Depreciation Other costs £'ooo £'ooo £'ooo £'ooo £'ooo Costs of raising funds Trading costs Development costs Financing costs 214 183 282 62 305 500 245 305 568 253 183 Total costs of ralslng funds 397 649 1,050 1,004 Charitabla expenditure Education andgr8nt making Teaching Welfare Premises Support costs and governance Grants, awards and prizes13bl 9,362 291 820 1,136 1,141 1,932 10,498 1,432 4,040 10,327 1.259 3.446 1.288 1,428 2,309 2,021 487 437 Total expenditure 11,901 1,288 5,577 18,766 17,490 Total expended 12,298 1,292 6,226 19,816 18,494 Grants, 8W8rds andpnzes awardedtopupils 2021 E'ooo 2020 £'ooo From restricted funds= Bursaries and other grants From unrestricted funds: Awards and other grants 447 381 40 56 Total grants, awards and prizes 487 437 23 Reed's School Notes to the financial statements for the year ended 31 August 2021 bj Gov8manc8 includedin support costs 2021 E'OOO 2020 E'OOO Staff costs Governor training Governor expenses Auditor's remuneration for audit services - Charity GovernanGe Gosts - Charity 58 40 27 86 25 66 Auditor's remuneration for aLJdit services - subsidiary company Governance cost8 - group 92 71 Neither the Governors nor ￿rSOnS connected with them received any remuneration or other benefits from the School or any connected organisation in either year. In 2021 one Governor12020'. one Governor) was reimbursed expenses during the year. c) Staff costs 2021 £'ooo 2020 £'ooo Total staff ¢o$t$ comprised.. Wages and salaries Taxes and social security costs Pension contributions Medical insurance premium 9,554 984 1,662 98 12,298 8,891 956 1.638 106 11,591 Aggregate employee beneftts of key management personnel 344 329 The average number of employees during the year was 25712020.. 2591. Employees calculated on a full-time equivalent basis was 20212020: 2041 of which 131 12020.. 1241 were teaching staff. Number of higher paid employees in bands of.. 2021 2020 £60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £100,000 £100,001 to £110,000 £150,001 to £160,000 19 26 24 Reed's School Notes to the financial statements for the year ended 31 August 2021 4. Tangible fixed assets Charity School office and computer equipment Subsidiary Motor vehicles Land and buildings freehold Assets in the course of construction Motor vehicles Charity total Furniture and equipment Group consolidated total £'ooo £'ooo £'ooo £'ooo £'ooo E'OOO £'ooo £'ooo At cost 1 September 2020 Additions Completed in the year 31 August 2021 36.390 136 95 36.621 1.844 1,880 95 3.629 2,399 303 304 42 40,937 2,361 17 40.961 2,365 2,702 346 43,298 21 43.326 Depreciation 1 September 2020 Charge for the year 31 August 2021 8,629 922 9.551 2,082 336 2,418 255 31 286 10,966 1,289 12,255 10,980 1,293 12.273 Net book valu88 31 August 2021 27,070 3,629 284 60 31,043 10 31,053 31 August 2020 27.761 1.844 317 49 29,971 10 29.982 Assets in the course of construction related to the Bridgeman classroom extension. 25 Reed's School Notes to the financial statements for the year ended 31 August 2021 5. Investments Consolidated Charity 2021 E'OOO 2020 £'ooo 2021 £'ooo 2020 £'ooo Investments - listed Investments - subsidiaries 5,819 5,081 5,819 5,081 250 250 5,819 5,081 6,069 5,331 8) Investment in subsidiaryund8rtakings The School owns 100% of the issued share Capital of Reed's School Enterprises Limited, incorporated in England and Wales under company number 2503013. The principal activities of the Company are the letting of sports, general and social facilities, the operation of a swimming club, the provision of community swimming, tennis and cricket coaching, the sale of clothing and sportswear. and the provision of a tuck shop. The School also owns 1 OOYO of the issued share capital1£11 of Reeds School International Ltd IRSI Ltd) incorporated in England and Wales under company number 9874554. There have been no significant transactions in RSI Ltd and RSI Ltd has not been consolidated. Subsidiary Investment 2021 £'ooo Cost At 31 August 2021 250 Net Book Value At August 2021 250 The results for the year ended 31 August 2021 are as follows.. 2021 £'ooo 2020 E'OOO Subsidiary company Turnover Cost of sales 240 11751 238 11401 Gross profit Other income Administration charges 98 353 14331 266 13291 Net profit for the year before taxation Taxation Net profit) for th8 year Net assets 18 349 366 During the year Fleed's School Enterprises Ltd made a Gift Aid payment of £18k to the School. 26 Reed's School Notes to the financial statements for the year ended 31 August 2021 b) Investments in list8ds8cunti8s At mid-market value 2021 £'ooo 2020 E'ooo Opening valuation Additions Disposals Net gains/llossesl 5.081 1.563 11,5221 696 5,106 3,289 13,0961 12181 Closing valuation 5.819 5,081 Other investments represent equities, fixed interest securities, hedge funds and property including investments made through Common Investment Funds. These funds are pooled investment vehicles specifically set up for charities and established under the Charities Act 2011. The historical cost of these investments is £4.8m12020.. £4.6ml. The Governors have delegated day to day management of these investments to Cazenove Capital Limited in accordance with the School's investment policy. The following investments each represent more than 5% of the portfolio value at 31 August 2021.. £'ooo Vanguard S&P 500 UCITS EFF Charities Property Fund 475 377 Including unrealised gains of £696k12020 losses of £218kl and realised income from disposals and dividends of £203k12020:208KI the total return on the investment portfolio amounts to 180A12020'. 0.8%) 27 Reed's School Notes to the financial statements for the year ended 31 August 2021 6. Debtors Consolidated Charity 2021 E'OOO 2020 £'ooo 2021 E'ooo 2020 E'ooo Trade debtors School fees and disbursements recoverable Prepayments and accrued income Amounts owed by Group undertakings 27 19 166 66 253 66 252 98 19 166 331 212 416 186 7. Credttors= amounts falling due within one year Consolidated Charity 2020 Irestatedl £'ooo 2020 Irestatedl £'ooo 2021 £'ooo 2021 £'ooo Bank loans and overdrafts Taxes and social security costs Advance fees INote 91 Amounts owed to group undertakings Other creditors Deposits Accruals 1,262 273 2,690 426 277 1,262 273 2.690 426 277 2.299 2,299 57 679 888 364 911 905 522 769 888 364 878 905 522 6,563 5,023 6,532 4,990 8. Credltors: amounts falllng due after one year Bank loans Advance fees Total Charity £'ooo £'ooo £'ooo Amounts repayable by instalments.. In 1 to 2 years In 2 to 5 years After 5 years 1,377 4,230 2,125 38 1,415 4,230 2,125 At 31 August 2021 7,732 38 7,770 At 31 August 2020 9,044 80 9,124 28 Reed's School Notes to the financial statements for the year ended 31 August 2021 In March 2020 a capital repayment holiday of 6 months was agreed for the 2017 loan agreement with Lloyds Bank. In December 2020 Reed's School entered into a new £2.5 million loan agreement with Lloyds Bank to fund the development of the Bridgeman Building to provide additional classroom space. The loan is secured against three properties the School owns on Sandy Lane and carries a fixed rate of interest for the first 5 years. In June 2020 the School took out a £3.Om CBILS loan with Lloyds Banks to cover any potential liquidity issues as a result of the Covid-19 pandemic. For the first 12 months the interest payments were funded by the Government and there was a capital repayment holiday. 9. Advance fee payments Advance fees include the early payment of the Autumn term 2021 fees. Parents may also pay futLJre tuition fees in advance. The money may be returned on the receipt of one term's notice. The movements during the year were.. 2021 £'ooo 2020 £'ooo At 1 September 2020 {2019) Amounts falling due within one year Amounts falling due after one year 2,299 80 1,877 119 2,379 1,996 New contracts 78 39 Early payment of Autumn term 2021120201 fees Amounts utilised in payment of fees Early payment of Autumn term 2020120191 fees 2,560 1531 12.2361 2,235 11471 11.7441 At 1 September 2021 {2020) 2,728 2,379 Amounts falling due within one year Amounts falling due after one year 2,690 38 2,728 2,299 80 2,379 29 Reed's School Notes to the financial statements for the year ended 31 August 2021 10. Restricted funds 2020 total Income Expenditure Investment income Net gainslllossesl on investments Transfer between funds £'ooo 2021 total £'ooo £'ooo £'ooo E'ooo £'ooo £'ooo Consolidated small funds Growth fund Cazenove Andrew Reed bursary fund Gifted shares in support ol the Foundation OR'S syndicated fund Capttal fund Forum fund Other funds 980 2,071 581 27 128 277 75 1271 1461 1141 1,108 2,378 657 30 101 46 14 23 1231 48 265 65 22 1221 121 1161 14461 265 68 93 420 79 376 402 Total restricted funds 4,521 459 14861 110 482 11071 4,979 30 Reed's School Notes to the financial statements for the year ended 31 August 2021 Transfer behveen funds The income distributed by Cazenove on the portfolio in the year is released to general reserves to offset foundation costs. Consolidat8d small fvnds.. The consolidated small funds consist of funds held for specific purposes, and are represented mainly by investments. These funds were consolidated by a deed of administration approved and sealed by the Charity Gommissioners on 18" April 1991. The income from the funds is used to offset foundation costs. The small funds consolidated in 1991 comprised Clifl Ford Thomerson Fund, Mullens Funds, Dove Fund, Gilliat Fund, The Barnett Prize Fund, Kirby's Fund, J Walter Smith Scholarship Fund, Cuthbertson Scholarship Fund, Borthwick Fund, The Reed Lecture Fund, The WH Rohrs Fund, the Verstage Donation and the Michel/Syms Fund. The Nissen/Bridgeman Prize Fund was added to these funds in 2006107. Growth fund.. This is a fund that is being built up over time, wtth the intention that future foundation pupils will be supported from investment gains and income generated thereon. Cazenove Andrew Reed bursary lund.. This fund was created in 2013114, the School's Bicentenary Year, by former Cazenove partners. The intention is that a Foundation pupil will be funded into perpetuity using the Fund's investment income. The annual investment income earned on the Consolidated small funds, the Growth fund and the Cazenove Andrew Reed bursary fund was used to provide Foundation bursary awards within the year. Gifted Shares.. These shares were gifted to the Charity with the intention that they would be used to support the Foundation as a whole. ORS. syndicated lund.. Funds raised by Old Reedonians. decade groups to be used to fund future Foundationers. The fund should be spent down within 5-10 years. Capital fund." Funds for the development of future capital projects. This was last used to fund the Cricket Centre Development and will be reviewed when new capital projects are approved. Fomm fund.. This fund has been set up to provide bursaries and a program of enrichment for schools in the Primary Forum Group and to assist with training of teachers from these schools. Other funds.. This is an amalgamation of other small restricted funds (for reporting purposes). They are held in cash and include: The Ogden Trust- Physics, Maths and Science based Scholarships, matched by Reed's LTA Grants- applied in the year according to LTA specified purposes Honeypot fund - children selected by the Honeypot Charity Foundation Bursaries - funds donated for the support of named Foundationers 31 Reed's School Notes to the financial statements for the year ended 31 August 2021 11. Unrestricted funds- movements in tha year 2020 total Income Expenditure Net gains on investments Transfer between funds £'ooo 2021 total Charlty E'OOO £'ooo £'ooo £'ooo £'ooo General Reserves D8signat8d Funds.. Old Reedonians Fund 26,968 19,636 118,7551 214 107 28,170 95 74 1711 98 27,063 19,710 18,826 214 107 28,268 Con801idated General ReseNes DesignatedFunds.' Old Reedonians Fund 27,082 20,122 119,2591 214 107 28,266 95 74 1711 98 27.177 20,196 119,330 214 107 28.364 Designated reserves exist where the Governors have allocated funds for a set purpose. The Old Reedonians, fund is intended to fund the activities or projects supported by the Old Reedonians within the next 5 years. 32 Reed's School Notes to the financial statements for the year ended 31 August 2021 12. Analysis of net assets between funds Consolidated General Funds E'ooo Designated Funds E'OOO Restricted Funds £'ooo 2021 Total £'ooo Tangible fixed assets Investments Cash at bank and in hand Other net current liabilities Creditors= amounts falling due after more than one year 31,053 1,806 9,241 16,0641 17,7701 31,053 5,819 10,305 16.0241 4,013 966 98 (7,7701 Total funds 28,266 98 4,979 33,343 13. Capltal commltments The work on the Bridgeman Building extension continued during the year. At the year end, th8 remaining capital committed amounted to EO.6m. Work has also commenced on the Barnett Suite construction and the replacement of the Croft Astroturf pitch. At the year end, the remaining capital committed amounted to £1.1 m. 14. Lease commitments As at 31 August 2021 Reed's School had total commitments under operating leases as follows= 2021 2020 £'ooo E'OOO Within 1 Year 62 62 Within 2-5 Years 249 272 Within more than 5 Years 47 39 358 373 15. Related party transactions Reed's School has invested in the whole of the issued share capital of Reed's School Enterprises Limited Ilhe Company), a company incorporated in England and Wales. During the year Reed's School Enterprises paid a licence fee of £5k12020.. £5kl to Reeds School. At the balance sheet date Reed's School Enterprises owed Reed's School the sum of £98k 12020- Reed's School owed the company E56kl. The School bore the costs of its wholly owned subsidiary Reed's School International Ltd in relation to bank charges and Companies House confirmation statement submission, these totalled £113 12020.. £5001 in the year. Governors donated £8,65012020.' £15,000) to the Charity during the year. 33 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. 34 Reed's School Notes to the financial statements for the year ended 31 August 2021 17. Consolidated Statement of Financial Activiti8s- Comparative figures for 2020 by fund type 2020 Total tunds Notes Unrestricted funds Restricted funds General £'ooo Designated £'ooo £'ooo £'ooo Income and endowments from.. Donations and legacies Gift of net assets from Ripley Court School Charitable activities School fees receivable Ancillary trading income Other trading activities Non-ancillary trading income Other activities Other operating income Govemment grants receivable Investments Income from investments 362 658 1,020 17 4.632 4,632 16,843 113 69 16,912 113 548 85 548 85 430 430 96 112 208 Total Income 23.109 69 770 23,948 Expenditure on.. Raising funds Non-ancillary trading Fundraising and development costs Financing costs Charitable activities Education and grant making 15681 15681 12531 11831 12531 11831 116,9981 1551 14371 117,4901 Total expenditure 118,0021 1551 14371 118,4941 Net losses on investments 1871 11311 12181 Net income 5.019 15 202 5,236 Transfer8 between fund8 115 11151 Net movement in funds 5.133 87 5,236 Reconciliation of funds= Total funds brought forward 21.947 80 4.435 26,462 Total funds carried forward 27.082 95 4.521 31,698 35 Reed's School Notes to the financial statements for the year ended 31 August 2021 18. Restricted fund8- Comparative figures for 2020 2019 total Income Expenditure Investment income Net gains/llossesl on investments Transfer between funds £'ooo 2020 total £'ooo £'ooo £'ooo £'ooo £'ooo £'ooo Consolidated small funds Growth fund Cazenove Andrew Reed bursary fund Gifted shares in support of the Foundation OR'S syndicated fund Capital fund Forum fund Other funds 1,024 1,904 605 33 60 19 1441 1761 1251 1331 27 1191 980 2,070 581 155 46 263 46 98 462 25 25 1241 141 151 14041 264 64 93 423 131 452 1871 Total restricted funds 4,435 658 14371 112 11321 11151 4,521 36 Reed's School Notes to the financial statements for the year ended 31 August 2021 19. Unre8tricted fund8- Comparative figures for 2020 2019 total Income Expenditure Net gains on investments Transfer between funds £'ooo 2020 total Charity £'ooo £'ooo £'ooo £'ooo £'ooo General Reserves DesignatedFunds.' Old Reedonians Fund 21.777 22,598 117,4351 1871 115 26.968 80 69 1551 21,857 22,667 17,490 87 115 27,062 Consolidated General Reserves Designat8dFunds.' Old Reedonians Fund 21,947 23,108 118,0021 1871 115 27,082 80 69 1551 95 22,027 23,177 18,057 87 115 27,177 Designated reserves exist where the Governors have allocated funds for a set purpose. The Old Reedonians, fund is intended to fund the activities or projects supported by the Old Reedonians within the next 5 years. 37 Reed's School Notes to the financial statements for the year ended 31 August 2021 20. Analysis of net a88ets between funds- Comparative figure8 for 2020 Consolidated General Funds E'ooo Designated Fund8 £'ooo Restricted Fund8 £'ooo 2020 Total £'ooo Tangible fixed assets Investments Cash at bank and in hand Other net current liabilities Creditors= amounts falling due after more than one year 29,981 1,598 9,284 13,7691 110,0121 29,981 5,081 10,416 13.7691 3,483 1,038 95 110,0121 Total funds 27,082 95 4,521 31,697 Joint Presidents and Vice-presidents are retired governors who continue to support the Foundation and attend annual court Joint Presidents Viscount Bridgeman Mr P B Milford-slade OBE Mr G M Nissen CBE Mr I Plenderleith CBE Vice-Pre8ident8 The Earl of Verulam Lord Howard of Penrith Sir David Howard Bt Sir Brian Jenkins GBE Sir John Kemp-welch The Hon Julian F Byng Mr J D Andrewes Mrs l M Barker Mr D Barnett Mr P Barton DL Mr D Blomfield Mr D Brown Mr D Caddy Mr J Davie Mr M Dobson Mr R S Fidgen Mr J W Flecker M M A Grenier Mr T W N Guinness Mr D V Harvey JP Mr C R Hawkins Mr J Herbert Mr C Holdsworth Hunt Mr D W Jarrett Mr M J Kirkwood CMG Ms A Knight CBE Mr M Loveday Mr R L H Lyster Mr G R Martin Mrs V McKenna Mr A Merry MrRMew Mrs A F Noakes Ms B O'Brien-Twohig Mrs A Overstall MrTDPage Mr LA Ponsonby Mr S Popham Mr H Priestley Mr D E Prince MrPDReed MrJ B Rogers Mr R Stewart Mr J G Tregoning Mr P H H Verstage Mr B M Winlerflood MBE Mr A Wotton 38