WGSTRUST Charity Number: 505207 ANNUAL REPORT YEAR ENDED 31 AUGUST 2020
WGSTRUST CONTENTS Page REFERENCE AND ADMINISTRATIVE INFORMATION TRUSTEES, ANNUAL REPORT 3-11 STATEMENT OF TRUSTEES, RESPONSIBILITIES 12 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES 13-15 STATEMENT OF FINANCIAL ACTIVITIES 16 BALANCE SHEET 17 STATEMENT OF CASH FLOWS 18 NOTES TO THE FINANCIAL STATEMENTS 19-24
WGSTRUST REFERENCE AND ADMINISTRATIVE INFORMATION TRUSTEES Lord Lee of Trafford IChaim)an) DL. FCA Mr R Bailey BA. ACA Mr A Beardsworth MA (Cantab) ACA CTA Mrs SJ Haslam BA Mr DJ Illingworth BA. FCA Mfs SE Marks. MA {Oxon} MA (Nott) FRSA Mrs JD Pickering 8Sc Mr CM Poston BSC. FCA Mr lan Goulty resigned as a Trustee on 3 April 2020. There werg no other movements of Trustees during the year. Clerk to the Trustees Mrs S Senn Bsc (Econ). ACA ADVISERS Auditor8 Crow& U.K. LLP 3 Floor. The Lexicon Mount Street MANCHESTER M2 5NT Stockbrokers Brown Shiplèy 3 Hardman Street Manchester M3 3HF Banker8 Bank of Scolland 224 Ingram Stffjet Glasgow G1 1DR Lloyds Bank 223 Finn8y Lane Heald Green Cheshire SK8 3PY Registered and principal office Wilhington Gids, School Wellington Rt)ad Fallowfield Manchester M14 6BL Charity Number 505207 Constitution The charity is uninwrporated and is govemed by Trust Deed executed in 1976.
WGSTRUST TRUSTEES. ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 The Trustees of the W G S Trust present their Annual Report and audited accounts for the year ended 31 August 2020 and confirm they comply with the requirements of the Charities Act 2011, as amgnded by the trust deed and the Charities SORP 2015. STRUCTURE, GOVERNANCE AND MANAGEMENT The Trustees detemine th8 general policy adopted by the Trust and work with professional advisers to deal with the day lo day management of investments. Administration of the Trust including management of bursaries is undertaken by staff of Withinglon Girls, School (Charity Number 115822611'the School,). Objectlvès and actlvitles for the publlc benefit The objects of the Trust, as set out in the Trusl Deed, are as follows: the advanc8m8nt of the educational Work of the School charitable purposes (whether educational or not} of or associated with the School the advancement of education in any part of the world The Trustees confinn Ihat they have referred to Charity Commission's guidance on public benefit when reviewing the Trust's aims and objectives. Provision of means-tesled bursarlès The principal way in which th8 Trust supports the advancement of the educational work of the School is by providing means-lesled bursaries to girls who have performed well in the entrance examination and rnighl otherwise be unable lo lake up plac8s offered to them by the School. Bursaries are also awarded to pupils whos8 family circumstances change, to enable them to continue to attend the School. Bursaries are made solely on the basis of parental means or to relieve hardship where a pupil's education would otherwise be at risk for example in the case of redundancy. In assessing means a number of factors are taken into consideration including family income, investments, savings, opportunity lo generate additional income and family circumstances. for èxample dependent relatives. The bursary awards range from 10% to 1 OOYO of fees. Infomiation about fee assistance through bursaries is provided lo all parents of gids applying to the Senior School and also to parents of junior girls, as a limited number of bursaries have been available for girls entering Years 5 and 6 in the Junior School from September 2015. The availability of means-tested bursaries is publicised through School advertisements in the press and promotional materials at local librari8s. Details of the bursary policy and how to apply are also on the School website.
WGSTRUST TRUSTEES, ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 Support for Capital Projects at the School The other major way in which the Trust supports the educational advancement of the School is by providing financial assistance, in the fom of grants and repayable loans, to enable a programme of capital development lo lake place. Trustees agreed at their meeting in February 2021 to provide a capital grant of £1 m for a tWOvStorey extension to the Dining Room of the School. Work commenced on this project in April 2021 and it is expected to be completed in January 2022. Th8 capital support is expected to be rèquired in two inslalments (September 2021 and Dember 2021). Trustees confirmed at their meeting in May 2021 that the capital grant will be financed from the partial disposal of investments. The start date for this project was delayed as a result of thè pandemic. While planning pemission for this project was obtain8d in April 2020, Governors of the the School put major capital expenditure on hold until they felt that the time was right for this major project to commence. That decision was taken in F8bruary 2021. The previous major capital project undertaken by the School was the Sports Development Project which was completed during the 2017118 academic year. Work started in August 2017 and was ¢ompl8t8d at Easter 2018. The Development Office launched a Capital App8al for thls proj8cI with a targèt of £SOO.000 and cumulative donations as at 31 August 2020 wgre £350.90412019.' £350,754). Recrultment and Tralnlng of Trustees Th8 statutory power of appointing new Trustees is vesled in the Govemors of Withington Girls, School. This power is to be exercised so that immediately after any appointment, at least on8 of the Trustees is not a Governor, and the power shall cease to havè effect upon b8ing r818asèd in writing by the Governors or if the School shall be discontinued or shall become a maintained school or if the power of appointing all or a majority of the Govemors shall be vested in a local or other public authority andlor any officer or department of the govemment. However, rf the power of appointing new Trustees as indicated above shall cease to have effect, the statutory power of appointing Trustees shall be vested in the surviving or continuing Trustee or Trustees for the time being, or the personal representative of the last surviving or continuing Trustee. New Trustees are selected to provide the Trust with an appropriate breadth of abilities and experience. New Trustees are inducle(l into the workings of the Charity by the Chairman of the Trust, the Headmistress of the School and the Clerk to th6 Trust. Risk Management The Trustees ar6 responsible for the management of the risks faced by the Trust. The principal risk faced by the Trust is the perfomiance of the investment porfolio.
WGSTRUST TRUSTEES, ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 Trustees of the Charity manage the portfolio under the guidance of the Chair of the Trust. The Trustees bring a diverse range of skills and experiences to the Charity- The fund is administered by external slockbrokers. Trustees actively monitor the perfomance of the investment portfolio, mainly through quarterly reports from the stockbrokers. The investment policy of Ihe Trustees is to aim to achieve an above average dividend yield lo provide the income for means-tested bursaries, with a view lo long-temi capital appreciation of the holdings. wnsislent with an acceptable level of risk. Trustees have taken the decision lo invest primarily in smaller UK quoted companies and no one holding should normally represent appreciably more than 7.5% of the overall portfolio in order to ensure a suitabl8 spread of risk. The key controls used by the Charity include= Formal agendas and supporting papers for all Trust meetings Considèration of r8gulatory compliance at all Twst meetings Comprehensive bLAdgeting, management accounting. and reports on investrnent performance Clear authorisation and approval levels Use of a Risk Register to assèss th8 likelihood and impact of 8ach risk tog8ther with the steps taken in mitigation Regular meetings of Trustees, a standing item of which is Conflicts of Interest andlor Confli¢ls of Loyalty Active monitoring of the investment portfolio and mechanisms to effect transactions at short notice The Trustees are satisfied that the major risks identified have been adequately managed wh8r8 necessary. It is recognised that systems can only prowde reasonable but not absolute assurance.
WGSTRUST TRUSTEES. ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 OBJECTIVES AND ACTIVITIES Charitable Objects The objecls of thè Charity, which are sel out in the Trust Deed, are the advancement of Ihe educational work of Withinglon Girls, School. charitable purposes of. of associated with, the School and the advancement of education in any part of the wortd. The S¢h¢)ol is a separate charity which provides a day school for girls from the ages of seven to eighteen. In setting and planning our objectives Trustees have given careful consideration to the Charity Commission's general guidance on public benefit. A specific aim of the Charity is to maintain and enhance the level of means-lesled bLJrsary support lo safeguard the diversity of the school community. The School has never offered financial support on a non-means-tesled basis, such as academic scholarships. The School is committed to providing public benefit as is evidenced in its published Annual Report. ACHIEVEMENTS AND PERFORMANCE REVIEW OF THE YEAR The Trust has generated incoming resources of £876,074 {2019: £787,993) for the year. Governors of the Schix)l approved a new Development & Alumna8 Strategy12019 10 2024} at their meeting in September 2019. The key focus of this Strategy, which dovetails with the School's Development Plan. is lo continue to raise funds for School priorities. A significant focus is lo increase funding for means-tesled bursaries as one of the aims of the School is lo maintain and increase the level of Governors, means-lested bursary support to secure the diversity of the School community, with the eventual aim of n8eds-blind admission. Donations received by the WGS Trust for the bursary fund amount to £125,662 (2019: £71,075}. This amount excludes £75,000 received from the Zochonis Charitable Trust (2019.. £70.000} Ihe temis of which are that this money must be spent on bursaries in the 2020121 year. As a result, this donation has been included within WAthington Girls, School's accounts as a payment on account for Ihe year lo 31 August 2020. The Development Office of the Sch¢)ol launched a bursarylhardship appeal in July 2020 supported by an alumna land her husband} who pledged to match the first £12,633 donated. The response from this direct mail appeal. the first carried ovl by the school, has been exceptional. The amount raised in total (including pledges), when this appeal closed in October 2020. was £114.339. The alumna increased her pledge to ensure that more than £100.000 was raised.
WGSTRUST TRUSTEES, ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 This direct mail appeal was part of Ihe neY approved stralegy to diversrfy our methods of making fundraising ask. Half ol all donors who gave to the appeal were either new donors or long lapsed donors who had not given for more than ten years. The annual Emily Simon Society Lunch was held on 11 th March 2020. This provided an opportunity for members of the Society to visit the School. meet some current bursary recipients, and to learn about the School's partnership, WithGambia, that has been running for many years. The Annual Fund was renamed and relaunched as the 'Ad Lucem Fund, and applications were invited from staff members to bid for funding to support projects which enhance and enrich the girls, learning but that normally fall outside the reach of the annual school budget. This year we particularly encouraged projects that provide opportunities to compensate for experiences lost during the COVID- 19 oulbr8ak. The running costs for the Development Office have been bom8 equally by the WGS Trust and the School. In the year ended 31 sl August 2020, the direct costs for eaGh were £78,581 {2019: £72,653). The School paid £397,852 {2019.. £382.258) into the Trust. This equates to 4% of fee income plus an additional sum of £50.000 for the year to 3181 August 2020 (the same calculation as the previous nine years). Bursaries were awarded lo 108 girfs {2019-. 104 girls)- 100 in the Sènior School and 8 from the Junior School. This equates lo over 17% of girls in the Senior School and almost 9Yo of girls in Year 5 and 6 of the Junior School receiving bursary support, of whom 17 benefited from full r8mission of fees. Thirty-three girls in the Senior School obtained a bursary worth 80¥g of more of fees. The total cost of thes8 bursaries was £710,609 (2019.. £672.434). The bursaries enabled gids who have met the entrance criteria, whose families would not otheprtise have been able to afford th8 fè8S, to attend the School. The pupils in receipt of bursaries may also recetve support with the purchase of school unifom), individual musicldrama lessons, curriculum-related school trips and similar expenses. The overall result for the investment portfolio for the year was a loss of £138,164 (2019.. loss of £340,544) of which the realised position for 2020 was a gain of £439.427 (2019= gain of £1,803,481). As described in Note 12, Truslees underlook an exercise in May 2021 to re-evaluate the18vel of Restricted Reserves for bursaries. Trustees felt that. in the conlext of their agreement lo provide a capital grant of £1m to the School for the 0-stOreY Dining Room extension, it was appropriale lo consider if additional funds should be classified as restricled for bursaries. The decision to transfer £2,171,055 from Unrestricted Funds to Restricted Funds was made following careful and considered analysis.
WGSTRUST TRUSTEES. ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 Trustees ensure that the Portfolio is invested in a diverse range of sectors while at the same time ensuring that no single holding is appreciably more than 7.5% of the investment portfolio. Particular focus is given to any holdings whiGh are approaching or in excess of this threshold to detemiine whether th8 lev81 of risk is acceptable or whether it is appropriale lo sell a proportion or all of th8 holding. Trustees compare the perfOnanCe of the portfolio with the FTSE 250 {ex-Investment Trust) Index and one or more appropriate charity indices at eath of Iheir meetings. The overall result for the year was a nel reduction in funds of £67.308 (2019-. rèduction in funds of £316,852). The effecl of the pandemic continues to have an impact on the retum of th8 investment portfolio and the movement of investments. This is being monitored by Trustees at their meetings. For the year ended 3151 August 2020 the capital retum of the portfolio posted a positive retum of 2.47 /0 compar6d with a drop in the FTSE 250 ex Investment Trust index of 12.60/0 and a drop in th8 FrsE All Share index of 12.6Oh. For thè same peri¢)d last year, the capital retum for the portfolio was a neg81ive retum 2.49% whilst the SE 250 ex Investment Trust index dropped by 7.9% on total return basis. The long-term effects of the pandemic are still unknown and, as for many entities at this time, there is potential for increased demand for bursary funding from Withington Girls, School (Charity 1158226) and continued volatility of the investment portfolio. The fiindraislng appmach The School employs an in-house Development Team to cary out fundraising on its behalf. This is led by a Director of Development who has experience in fundraising and follows besi practice. The Development Director reports directly to the Headmistrass of tha School who is also a Trustee of the Trust. A professTronal fund-raiser is engaged specifically to assist with the biennial telephone campaign. As menlioned earlier. all running costs of the Development Offic8 are shared equally between the Trust and the Sch¢)ol. The Trust registered as a member of the Fundraising Regulator in October 2017. Registration is optional for charilies which spend less than £100,000 on fundraising each year and. as a result, there was no requirement for the Trust to register. The Trust's voluntary registration is evidence of its desire to follow best practice.
WGSTRUST TRUSTEES. ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 The Director of Development is a member of the InstitLrte of Fundraising which also has a code of practice.The Development Team are pleased lo confimi that all fundraising activities for the School or the Trust have complied with the requirements of the Fundraising Regulator and the Instilute of Fundraising's Code of Practice. The School and Trust have also adopted a WGS Fundraising Code of Practice that sets out the principles by which we will pursue and accept donations and also lo demonslrale a commitment to ethical practices in relation to donors, so as to ensure openness, transparency and respect. Careful monitoring of the activities of the Development Office is carried out by Govemors of lh8 School and Trustees of the WGS Trust. The Development Director submits a report on fundraising activities for each Govemors, meeting and each Trustees, meeting and attends the meetings to answer any questions raised. Th8r8 hav8 been no Complaints about fundraising activities in the year lo 31 August 2020 (2019= NIL). General Data Protection Rogulatlons (GDPR) Updato The School and the Trust a fully aware of their responsibilities under the General Data Protection R8gulations (GDPR} which came into effect from May 2018. Over recent years, the Development Team has requested and recorded communication preferences for contacts and conducts Data Protection Impact Assessments as appropriate lo carefully consider who is being approached for support, how Ihe approach is made and how often this is done. to ensure that our fundraising is not unrèasonably intrusive or persistent. All consent and communication preferences are retained on a specialist database. In July 2020. the Development Ciffice became aware that the School's database Soare provider. Blackbaud, had suffered 8 ransomware attack and that there had been a data breach. The company provided the School with a data file which enabled analysis to be carried out to detemiine which individuals were affected and which data had been breached. Data subjects known lo have personal data included in the breach were infomied by email al the beginning of August. The breach was reported lo the ICO, the Charity Commission and Action Fraud in respect of the Trust and the School. The Charity Commission acknowledged Ihe Serious Incident Report noting that Trustees were dealing with the matter appropriately and responsibly.
WGSTRUST TRUSTEES, ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 INVESTMENT POWERS These are governed by the Trust Deed which permits the Trustees lo invest in a manner that they see fil. The Trustees have a policy designed to achieve an above average dividend yield, with a vièw to long term capital appreciation. consistent with acceptable risk. In order lo achieve this high yield combined with longer temi capital growth the Trustees have decided to invest predominantly in a broad range of smaller UK quoted companies. Th8 Trustees are minded to avoid exposure lo investments which are deemed to be unsuitabl8 in the ¢ontexl of the objectives and interests of the WGS Trust and Wrthington Girls. School, when considering the portfolio as a whole. This includes preference to avoid sectors or companies involved in the following activities.. tobacco and payday lending. The Truslees seek lo maintain a conservative approach lo funds and al their meeting on 24 April 2015 it was agreed that no single holding should normally represent appreciably more than 7.50h of the investment portfolio. Particular focus is given lo any holdings which are approaching or in excess of this threshold to detemiine whether the level of risk is acceptable or whether it is appropriate to sell a proportion or all of the holding. The level of liquidity depends on anticipated financial support for future School projects. The Trustèes monitor the investment perfomance against the FTSE Small Cap (ex Investment Trust) Index and one or more appropriate charity indices. RESERVES In fomiulating their reserves policy the Trustees are conc8med that the Trust has a sufficient level of reserves to enable it to meet its objects and policies. which have been described earfier in this report, In particular the Trustees consider that the Trust should have adequate capilal to provide inwme up lo the level required lo support Junior and Senior pupils throughout their school career, and the provision of financial assistance for the building programme of the Sch¢x)l. Trustees have reviewed the allocalion of reserves between Unrestricted and Restricted during the year and further details of transfers carried out are shown in Note 12. 10-
WGSTRUST TRUSTEES, ANNUAL REPORT YEAR ENDED 31 AUGUST 2020 Mindful of the increased demand for tSary funding 109ether wrth fin8ncial 8UPPOrt for Ihe School, buildlno ond ma1ntenan progrnmme. the Trustees and Ihe professional advisers con6thr that g¢n8r8tlon ol reserves of a minimum 01£10 millionls required lo meet these demands. This will enable l)olh an 8¢tive bursary outrea¢h programme to ty)nlinue to be doveloped and future buildinMaIntenance prol8cas lo b¢ finarKed khievem¢nl of this aim onty happen ovor poriod ol lime arKJ Tru$lees ar• encouraged by Ihe resilience of the inveslmenl portfoli) in the current year whlGh has generated a los$ 01 £138,16412019.. loss of £340.6541 and a small decrease In Ih Ovorall level of reserves 88 813111 Augusl 2020 to £8.579.23912019.' £8.646,547). Following the Iran81ers from Unre8lrictfjd ReseN$$ to Reslrlcted Reserves, as ¢J¢$cribed in Nol• 12, free ro8eTh•8 os al 31W August 2020 are £5,107,103 (2019.. £7.330,051) ed by the Tr1001 onj and on Ils bow by.. Lonl Le• of Trafford
WGS TRUST STATEMENT OF TRUSTEES, RESPONSIBILITIES STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law}. Under charity law the Trustees musl not approve the financial statements unless Ihey are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and applicalion of resources, including the income and expenditure. of the charity for that period. In preparing those financial slalements the Trustees are required to: selecl suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent: state wh8ther applicable UK Accounting Standards have been followed. subject lo any material d8parture disclosed and explained in the financial statements., prepare the financial slalemenls on the going concem basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial slalements comply with the Charities Act 2011. as amended by the trusl deed and the Charities SORP 2015. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 12-
WGS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES YEAR ENDED 31ST AUGUST 2020 Opinion We have audited the financial statements of WGS Trust for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet. the 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 {Uniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charity's affairs as al 31 August 2020 and of its incoming resources and application of resources. for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice: and have be8n prepared in accordance with the requirements of the Chariti85 Act 2011. Ba81s for opinion We conducted our audit in accordancè with International Standards on Auditing IUKI {ISAs (UKI) and applicable law. Our responsibilrties under those standards are further described in the Auditor's responsibilities for the audit of the financial statements seclion of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of Ihe 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. Concluslon8 relating to going concern We havé nothing to report in respect of the following matt8rs in relation to which the ISAS (UK) require us to report lo you where.. the trustees, use of the going ¢on¢em basis of accounting in the preparation of the financial statements is not appropriate.. or the trustees havè not disclosed in the financi81 statements any identified material uncertainties that may cast signifi&?nt doubt about the chanty's ability to continue to adopt the going concern basis of accounting for a period of at least hvelve months from the date when the financial statements are authorised for issue. 13
WGS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES ST YEAR ENDED 31 AUGUST 2020 Other information The trustees are responsible for the other information. The other infomiation comprises th8 information included in the annual report. other than the financial statements and our auditor's report thereon. Our opinion on Ihe financial statements does not cover the other infomiation and we do not express any form of assurance conclusion Ihereon. In wnnection with our audit of the financial statements. our SpOnsIbl11ty is to read the olher information 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 misstated. If we identify such material inconsistencies or apparent material misstaternenls. we are required to determine whether there is a material misstalemenl in the financial statements or a material misstatement of the other infom)ation. If. based on the work we have p8rfomied. we conclude that there is a material misslalement of this other information. we a required lo report that fact. We have nothing to report in this régard. Mattèrs on which we are required to report by excoptlon We have nothing lo report in r8SP8Ct of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 r8quir8 us lo report lo you if. in our opinion: the information givèn in the financial statements is InnsIstenI in any material r8specI with the trustees, report,. or sufficient accounting records have not been kepi., or the financial statements are not in agreement with the aCunting records and retums: or we have not received all the information and explanations we require for our audit Respon8lblllt108 of tru8toe8 As explained more fully in the Irustees. responsibilitiès ststement sel out on page 12. the truslees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees detenIne is necessary to enable the preparation of financial slalements that are free from material misslalemenl, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern. disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the trustees either intend lo liquidate the charity or lo cease operations. or have no realistic altemative bul to do so. Auditor's responsibilities for the audlt of thè financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with Ihe Act and relevant regulations made or having effecl thereunder. Our objectives are to obtsin reasonable assuran about whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an audilor's 14-
WGS TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES sr YEAR ENDED 31 AUGUST 2020 report that includes our opinion. Reasonable assurance is a high level of assuran, but is not a guarantee Ihal an audit conducted in accordance with ISAS {UK} will always delect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they Uld reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial sla16menls is located on the Financial Reporting Council's website at.. www.frc.or -uklauditorsres onsibilities. This description forms part of our auditor's report. U80 of our roport This report is made solely to the charity's trustees, as a b¢Jdy, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's trustees those matters we are required to state to them in an audilor's report and for no other purpose. To the fullest extent permitted by law, we do not a¢p1 or assume responsibility to anyone other than the charity and the charbty's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Vicky Szulist Senior Statutory Auditor For and on behalf of Crowo U.K. LLP The Lexicon Mount Street Manchester M2 5NT 30th lune 2021 15-
WGS TRUST STATEMENT OF FINANCIAL A¢ThryTrES FOR YEAR ENDED 31st AUGUST 2020 Capital Restrkled Fur5 2019 T¢ 2020 Z019 2019 2019 INCOME AND EXPENDITLIRf INCOME DDnaiions Conthbullon5 Irrffl w110n Gh15'$chr Inv•sim¢ni irtco Inromèqenernlry 125.662 397ffj52 2Y&.126 12S.812 397A52 351.95 71.075 382.258 280.776 4.150 75,225 382,258 330.070 440 52M29 49284 Toi•l Incom• $2J29 676.074 734.549 4,1SO 40.294 787.993 EXPENDITURE 76.S81 76.5Ui 72.653 72,653 n.sji 76.511 72.653 Exp•ndtturn on ¢h•rfi•bl•a¢iivtt 8uis•ries pah110 purlls o*Wlthiw S¢ho 657.780 52.82a 710M9 623.140 49.294 672.434 Annu•l Fund 2.032 Othei Chlldt4bk Exwndhw• 16.028 16.0 17.172 Towi Ch•rfWty• AthHi•s Ex1j1• 891838 Toi•l •Ap•ndluv• 752.389 $2.82> OOS.218 114.007 49.2P4 764,291 PJ•i kn¢om• b•for•wln••n Ivv•Jbn•nl 180 11.5$2 23,702 N•1 Ilosslon {117.fA3) 0 121.0ts11 (138.184 1249.7091 0 140.7J61 1310.5541 TrANSFER BETWEEN RÈ8ERVE8 12 12.170.5711 5.516 2.171.1)55 NET MOVÉMENT IN FUNDS 12 12.222.948) 5.ee4 2.1d9.974 107JO8 I2.216} 4,1XI 140,7861 I316.2> RECONCIL14TION OF FVNDS TOTAL FUNDS BROUGHT FORWARO 12 7.W.051 18.038 1.297A56 6.616.54 7.610,267 14.488 1.336.644 8.963,399 TOTAL FVNDS CARRIED FORWARD 12 5 107 103 24.304 3.447.832 B.579.239 16.638 1 297 8 646,547 Thfr n¢ws ¢y) page$ 1910 24 All arnOun15 rdat• toconlNIw 0pwati0. -18-
WGS TRUST BALANCE 8HEEf AS AT 31st AUGUST 2020 2020 2019 INVESTlblENT8 8.508,325 8.468,298 CURReNT A88eTS Debtors Ca8h 27.438 8,097 488 128 496.225 10 478.343 CREDITOR3 Amounts falllng du• wllhtn oro year 11 405 429 317978 NET CURRENT A88ET8 72.914 178,249 MET A83ET8 8 646,547 ACCUMULATED FUN08 Re¥lriclod Unrestricted - de6ign8led Unr081ricted - not dasignaled 12 12 12 3.447,832 24.304 5,107 103 8 579 239 1,297,858 18,838 7 330,061 8 846 547 Approved by Ihe Board of Trusleo8 on i and 61gned on Its beh811 by Lord La• of Trnfford Mr¥ S J Ha•lam 17-
WGS TRUST STATEMENT OF CASH FLOWS FOR YEAR ENDED 31 AUGUST 2020 2020 2019 R•eanelllatlon of not mov•m•nt In funds to n•t ca•h flow from opèrat5ng actl¥ltl•8 Nel movernent in funds Dgducl interest inc4)me shn in tnvesbng aclwrt Add nel loss on inveslrnent portfoltt) Ilncreaseydttreasè in dèbtors Increase in credrtors (67.3081 11061 138.164 119,3391 87.453 1316,8521 11931 340,554 45,234 315.976 Not ¢•$h from opbratlng Jctlvlll•¥ 138.864 Cajh fl¢>w• from Inv••tlng act1¥1•* Interest income Purehasg of invesimonts Disposal of investments 106 {1.949,0831 1.778,616 193 13,644,825) 3,397,721 ¢••h u¥•d In Inv••tlng Jctlvlll•• 170.361 246.911 IDecre8Seyinc5e in cash and cash eouivalenls in the year Cash and cash equivalents at thè begsnning of thè yèar 131.4981 494.534 137,808 356,726 Total cash and ca•h •qulv•l•nts at th• •nd of th• yaar 494,534 Br•akdown of Cash and Cash Equlval•nts Lbyds Bank Curr8nt AccoLtnt 450 9)7 450,K)7 488 128 488,128 Cash hold by Stockbrok8rs 12.130 6,406 Total cash and calh •quSvai•nts at th• •nd of th• •1 463.037 494.534 18.
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 1. ACCOUNTING POLICIES {a) Basis of preparatlon of flnanGial statements The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS102). the Charities Act 2011 and the Slalement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard 8pplicable in the UK and Republic of Iland (FRS 102)- effective 1 January 2015. The functional currency of the Charity is considered to be GBP because that is the currency of the prlmary economic environment in which the Charity operates. The accounts are drawn up on the historical cost basis of accounting. as modifi8d by thé revaluation of Investments. The Charity is a Public Benefit Entity registered as a charity in England and Wal8s. Its charity number is 505207 (England and Wales). (b} Incomlng rgsourcas All income is included within the Statement of Financial Activities ('SOFA') on a receivable basis. (cl Resour¢os exponded All expendilure is accounted for on an accruals basis and allocated directly lo the category to which it relates. Governance costs comprise those costs incurrred complying with constitutional and stslutory requirements. C8Pital granls are accounted for vthen the Charity has made an obligation to pay the monies. Idl Invostmonts Investments are staled at market value. {e) Fund accountlng Funds held by the charity are either. unstrICtod funds which can be used in accordance with the charitable objects at the dlscwtion of th8 trustees. Designated funds are those ear-marked for a specific purposé. As at 31st August 2020 these funds are due to be paid to the School for the Sports Development ProjecL Restricted funds which can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when the funds are raised for particular restricted purposes. (f} Financial Instrum¢nts Basic financial instruments a initially recognised al transaction value and subsequenlly measured at amortised cost with the excepb'on of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand. together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubl. Cash at bank and in hand is defined as all cash held in instant access bank accounls and used as working capital. Financial liabilities held al amortised cost comprise all creditors except social security and other laxes and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year end exchange rate. 19-
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 1. ACCOUNTING POLICIES CONTINUED (g} Crltlcal a¢counting judgernents and key sources of estimatlon uncertalnty In the application of the accounting policies. Trustees a required to make judgement. estimates. and assumptions about the carrwn9 value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 undedying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is ViSed rf the revision affects only that Period, or in the period of the revision and future periods if the revision affected current and future periods. TTuslees have carried out an exercise lo estimate an appropriate transfer from Unr6slrict6d to Restricted ReseNes. as explained in Note 12 on page 23 to these accounts. In the view of the trustees. no other assumplions Conceming the future or eslimalion uncertainty affecting assets or li8bililies at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. (h) Golng Con¢orn Trustees consider that the WGS Trust is a Going Con¢em. Truslees monitor the School's requirement for bursary funding and capital projects at 8ach of their meetings to ensure that this can be funded. Trustees monitor th8 impact of the pandemic on the retum of the investmenl portfolio and the movement of investments at their meetings. The School provide5 Trustees with an indication of the funding required for bursaries. Th6 Trustees then decide the amount that is paid lo the School. The Trustees believe that the Trust is able to continu8 as a going concem for the foreseeable fvlure, belng al least tmelve months from the dale of approval of these financial slalemenls, and have therefore prepared the financial stslements on 8 going concem ba8. 2. INVESTMENT INCOME 2020 2019 Bank interest Dividends on UK listed investments 106 351,B49 193 329,877 351,955 330,070 3. INCOME GENERATING ACTIVITIES 2020 2019 Alumnae nelworking events 455 440 455 440
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 4. FUNDRAISING COSTS 2020 2019 Staff costs recharged from Withington Gids, School Promotional materials Telephone Campaign Other fundraising costs 65.379 52,713 5.822 12,033 2.085 72.653 6,767 1,889 78.581 5. BURSARIES 2020 2019 Bursaries paid for pupils of Withington Girls. School 710.609 672,434 The total number of pupils in receipt of bursaries during the year was 10812019.. 1041. 6 ANNUAL FUND 2020 2019 Purchase of equipment for Withington Girls. Sthool 2,032 2,032 7 OTHER CHARITABLE EXPENDITURE 2020 2019 Sundry expenses Subscriptions Clerk to the Trust Stockbroking fee Postag6 Recruitment costs Office expenses Database Soare Trustee Indemnity Insurance 2.076 1,126 482 2,500 670 2,243 1,745 124 2,142 1.960 2,500 672 2,869 478 2,323 1.960 Governance Costs Audit Fees 3,150 4.180 16,028 17,172 The Trustees received no remuneration or reimbursement of expenses during the year {2019 £NIL). There are no employees of the Charity. There are no employees who received employee benefits (exduding pension costs) of more than £60,000. 21
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 8 INVESTMENTS The movements on this a¢nt during the year were as follows: 2020 2019 UK quoted Investments At valuation.. At 1 September 2019 Additions at cost Disposal proceeds Changes in market value 8,461,892 1,949.083 11.778,6161 1138,164) 8,555,342 3.644.825 {3,397,7211 {340,5541 At 31 August 2020 8,494,195 8,461,892 Cash held by stockbrokers 12,130 6,406 8,506,325 8,468,298 All investments are held for charity use. Th8 historical cost of investments held is £6,451,777 {2019: £5.841.9091. Trustees Continue to monttor the impact of the pandemic on the portlolio. 9 DEBTORS 2020 2019 Income tax recoverable 27,436 27,436 8,097 8.097 10 CASH AT BANK 2020 2019 Lloyd$ Bank Current Account 450,907 488,128 450.907 488,128 11 CREDITORS 2020 2019 Amounts falllng duo within one year Accruals Amount due to Withinglon Gids, School 3.120 402,309 3,120 314,856 405.429 317.976 -22-
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 12 ACCUMULATEO FUNDS 2020 2019 Restrlded - for Bursarl•s At 1 September 2019 Net {lossl on investments Net income before gains on investment Transfer from Unrestricted Reserve At 31 August 2020 1,297,858 (21,081) 1,338,644 {40.7861 2,171,055 3,447,832 1,297,858 2020 2019 Unrestrlct•d - not doslgnated At 1 September 2019 Net income before gains on Investm8nt Net Ilossl on investments Transfer lo Restricted Resenle - for Bursaries Transfer lo Unrestrided - designated Reserve Al 31 August 2020 7,330.051 70,706 (117.083) 12.171.055) 5,516 5.107,103 7.610.267 19,552 (299,7681 7,330.051 Unr•8trl¢ted - deslgnalod At 1 September 2019 Net income before gains on investment Transfèr from Unrestricted Reserve Al 31 August 2020 18,638 150 5,516 24,304 14,488 4.150 18,638 Tolal 8.579.239 8,646.547 As a result of Trustees, commitment, al their meeting in February 2021. to provide a £1 m Capital Grant lo the School for a two-slorey extension lo the Dining Room, a decision was made to re-evaluate the level of Restricted Reserve for bursaries. A review of the overall Reserves of the Trust, resulting from fundraising 8ppe8ls, was carried out for the peri¢)d from 2004 to 2020. Trustees considered detailed proFosals at their meeting in May 2021 and detemiined that they felt it was appropriate for a transfer of £2,171.055 to be made from Unrestricled Reserves to Restricted ReseNes for this purpose. Consideration was given to the donations provided for the 100 Plus Bursary Appeal which commenced in 2005 and reached ils £2m target in 2011. in addition lo a proportion of income and capital movements on the portfolio from 2005 to 31 sl August 2020. in making this assessment. Trustees felt that while historically the Trust has provided capital support for major building projects, it was appropriate to ring fence a larger sum specifically for bursaries. The Sch¢Jol's capitsl projecl commenced in April 2021 and 1$ expected to bè completed in January 2022. The Restricted Funds represent a fund specifically for bursaries. In respect of the Unrestricted - designated fund for the Sports Development project. a transfer has been made from the Unrestricted Fund to reflect a proportion of income and capital movernents from 2018 10 31st August 2020. This designated fund indudes donations re1ve(l lo date which have not been paid over lo the School. The value as at 31 st August 2020 is £24.30412019- £18.638)- This amount is due to be paid to the School before 31 sl August 2021. -23-
WGS TRUST NOTES ON THE FINANCIAL STATEMENTS YEAR ENDED 31st AUGUST 2020 13 ANALYSIS OF NET ASSETS BETWEEN FUNDS Investments Other assets Total Reslricled funds Unrestricted funds 3.447,832 5.058.493 3.447.832 5,131,407 72,914 8.506.325 72,914 8.579.239 14 RELATED PARTY The Govemors of Withington Gids, School {Charity Number 1158226) appoint the Trustees of WGS Trust. Transactions with Wilhington Girts. School have b8en identified and disclosed within the aeKounts as appropriate. Donations received from Trustees during the year were £22012019.. NIL). The value including gift aid is £27512019.. NIL) Trustees confirmed their commitment lo provide a capital grant to Wilhington Girls. School of £1 m al their meeting In February 2021. The capital grant is for a fvst0Y extension to the Dining Room. Work commenced on the project in April 2021 and the c8Pital support 1$ expected to be required in hvo instalments (September 2021 and December 2021). Trusteès confimied at their meeting in May 2021 that the capital grant will be financed from the partl81 disposal of inv8Stments. 15 FINANCIAL INSTRUMENTS 2020 2019 Financial asgets measured at amortised cost (a> 478,343 496,225 Financial assets measured al falr value Ib> 8.506,325 8.468.298 Financial liabilities measured at am0'sed cost (c) (405,429) (317,976) Net financial assets rneasured at amortised cost 8,579,239 8,646,547 lal Financial assels at amortised cost include cash and olher deblors Ib) Financial assets at fair value include inveslmenls {c) Financial liabilities include other creditors 24-