Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
Charity number: 508285
The Royal Grammar School Educational Trust
Annual report
31 July 2024
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Contents
| Page | |
|---|---|
| Reference and administrative details | 1 |
| Trustees' report | 2 - 6 |
| Trustees' responsibilities statement | 7 |
| Independent auditor's report to the trustees of The Royal Grammar School Educational | 8 - 11 |
| Trust | |
| Statement of financial activities | 12 |
| Balance sheet | 13 |
| Statement of cash flows | 14 |
| Notes to the financial statements | 15 - 27 |
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Reference and administrative details
| Trustees | P Hudspith (ex-officio) |
|---|---|
| A Fletcher (ex-officio) | |
| M Squires (co-opted) | |
| J Marks (co-opted) | |
| N J McMinn (appointed by the Governors of the Royal Grammar School) | |
| N R Paton (co-opted) | |
| G E Stanford (appointed by the Governors of the Royal Grammar School) | |
| Charity registered number 508285 Principal office Eskdale Terrace Newcastle upon Tyne NE2 4DX Secretary to the Trust C F Black Independent auditor UNW LLP Chartered Accountants Citygate St James' Boulevard Newcastle upon Tyne NE1 4JE Bankers Barclays Bank PLC PO BOX 379 71 Grey Street Newcastle upon Tyne NE99 1JA Investment advisors CCLA 1 Angel Lane London EC4R 3AB |
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Trustees' report Year ended 31 July 2024
The trustees present their annual report together with the audited financial statements of The Royal Grammar School Educational Trust ('the Trust') for the year ended 31 July 2024.
Objectives and activities
The primary objects, and the aims of the charity, are:
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a) the advancement generally of education and in particular at the Newcastle upon Tyne Royal Grammar School (the School) or through the medium of the School; and
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b) the furtherance of the education of or the relief of poverty among persons who are or intend or desire to become or who have been, pupils at the School or who are members of staff at the School.
Strategies for achieving objectives
The main strategy for the Educational Trust is to support transformational bursaries at the Newcastle upon Tyne Royal Grammar School who allocate the donated funds so that any young person capable of benefiting from education at RGS should be able to do so, regardless of his or her family's financial circumstances.
Activities for achieving objectives
The main activities related to generating funds are the seeking of donations from corporate organisations, charitable trusts and individual donors as part of a structured programme, and the management of the Trust's investments. The main activity relating to the allocation of funds is the allocation, by trustees, of funds to the School to deliver means tested financial assistance to pupils, and the monitoring of these pupils' progress.
Grant making policies
In accordance with the Trust deed, the trustees, at their discretion, receive from the governors of the School, on an annual basis, a report on how best the objectives of the charity can be implemented in relation to the specific needs of the Royal Grammar School to primarily fund the delivery of bursaries for students attending the school although they may also consider requests to support outreach through study or research projects in partnership with other schools or capital projects for premises, equipment or facilities.
Main activities undertaken to further the charity's purposes for public benefit
The Trust achieves its purposes for the public benefit through the provision of means tested financial assistance for pupils who would not otherwise be able to afford the education offered through the Newcastle upon Tyne Royal Grammar School.
In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the charity commission relating to public benefit.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Trustees' report (continued) Year ended 31 July 2024
Achievements and performance
Review of activities
The Trust continued to make a major contribution in support of the Royal Grammar School’s passionate and effective commitment to providing bursaries to pupils from families who meet our strict criteria for support. Eighty-five (2023: 83) RGS students were in receipt of bursaries during the school year at a total cost to the school of £1,365,229 (2023: £1,191,923) of which £1,275,000 (2023: £1,099,709) was contributed by the Bursary Campaign and other funds controlled by the Trust. The trustees continue to recognise their critical role in sustaining and hopefully increasing this level of support for the provision of bursaries. RGS bursaries are strictly means-tested and parents of bursary holders contribute on a sliding scale according to their family income. The average level of fee support during the year was 95% of fees, indicating the trustees’ strategy to direct its finite resources to families who could demonstrate the greatest financial need. Seventy six students (2023: 72) received bursaries of between 90% to 100% of school fees, indicating that their family incomes will have been somewhat below £45,200 per annum (2023: £43,300).
The school has seen a significant increase in bursary applications which is encouraging and shows that more and more people are aware of the opportunity, but demand for places continues to significantly outstrip the funds available.
With the approval of both the trustees of the RGS Educational Trust, and the governors of the Royal Grammar School, the trustees are responsible for the management and allocation of funds raised by the means of the RGS Bursary Campaign. Both trustees and the RGS governors approved criteria for the assessment of applications for financial assistance.
Investment policy and performance
The trustees meet regularly and set, and then review, the investment policy objectives and work with the fund’s designated advisors to ensure these policies are met.
Investment activity is then delegated to the investment advisors, who consider the income requirements of the charity, risk profile and their view of market prospects of the investment portfolio. The performance of the investments is monitored by the trustees with a view to maintaining an appropriate balance between income and growth.
The charity pools its investments in all its unrestricted and restricted funds in order to reduce transaction charges. Investment values are allocated to the appropriate fund in accordance with the relevant percentages of investments held. The Statement of Investment Principles was reviewed by the trustees and updated during the year.
The total return on the investment portfolios (capital growth with income received) for the year to 31 July 2024 was for the Pooled General Investments Fund +10.54+% (2023: +0.94%) and for the Brian Ritchie Fund +10.54% (2023: +0.94%). The total return on the investment portfolios (capital growth with income received) for the 3 years to 31 July 2024 was for the Pooled General Investments Fund +4.30% per annum and for the Brian Ritchie Fund +4.30% per annum.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Trustees' report (continued) Year ended 31 July 2024
Financial review
Going concern
The Trust holds substantial investment assets, but maintains sufficient cash reserves to allow it to meet its ongoing commitments. Consequently, the trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Principal risks and uncertainties
The principal risks and uncertainties to the charity lie in the unpredictable nature of donations receivable and investment gains. The Trust mitigates against these risks by utilising a fundraising team within the RGS to promote the Trust and raise funds for the Trust and uses professional investment managers to manage the investments within clear guidelines from the trustees to provide a sensible balance between risk and returns. In addition, the Trust’s Reserves Policy requires that a proportion of the reserves are held in liquid instruments (e.g. money market funds) providing further risk mitigation. During the year the impact of the cost of living crisis and the subsequent economic volatility and consistent high levels of inflation has led to uncertainty that is expected to continue into the next financial year and the Trust will continue to assess these risks on a regular basis.
Reserves policy
It is currently the policy of the trustees to use the income generated from fundraising activities and investments to advance the objects of the charity. While the trustees make no commitment to maintain the payments for so long as the recipient requires assistance they aim to maintain reserves sufficient to ensure that having once awarded a bursary, the charity can continue to do so for so long as is required during the pupil's education at the RGS subject to satisfactory conduct, effort and progress. The Bursary Campaign actively seeks to raise funds for the long term provision of additional bursaries.
Total reserves at the year end amount to £5,831,826 (2023: £5,558,264). Of this, £163,748 (2023: £237,587) is restricted for payment of bursaries towards specific activities and £5,371,786 (2023: £5,045,444) is unrestricted. Of these unrestricted funds, £470,186 (2023: £471,032) is designated also for payment of bursaries in future periods.
Principal funding
The Bursary Campaign provides the principal source of funding although other sources are also actively pursued.
Material investments policy
Investments are to be held within several classes by investment advisers, with the majority of investments being held within overseas and UK equities. Investment managers are expected to select a number of individual securities within this and other asset classes to further diversify risk.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Trustees' report (continued) Year ended 31 July 2024
Structure, governance and management
Constitution
The charity is constituted under a Declaration of Trust dated 9 November 1978 and is governed in accordance with this deed.
Method of appointment or election of trustees
The trustees who have served during the year and since the year end are set out on page 1. Two trustees are appointed by the governors of the School plus the Chairman of Governors who serves as an ex officio member. Other trustees are appointed by the Board of Trustees. The Trust deed requires that no more than three governors of the School or two governors and the Headmaster may serve as trustees at any one time.
Policies adopted for the induction and training of trustees
Trustees make arrangements for induction and training of new trustees.
Organisational structure and decision making
The charity is an unincorporated trust and a registered charity. The trust deed requires that there shall be a minimum of four and a maximum of seven trustees who serve for a period of five years.
The trustees meet at least annually to agree the broad strategy and areas of activity for the charity, including consideration of grant making, investment, reserve and risk management policies and performance. The day to day running of the charity is delegated to the Secretary to the Trust.
Related party relationships
The charity shares certain trustees with the Newcastle upon Tyne Royal Grammar School, a registered charity. The school's administrative staff provide assistance with the charity's record keeping at no charge to the charity. The charity grants income towards bursaries paid by the school for some pupils of the school. The grant made towards the school's bursaries in the year amounted to £1,275,000 (2023: £1,099,709).
Risk management
The trustees monitor the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced to the trustees' meetings so that the necessary steps can be taken to mitigate these risks. This year particular attention has been made to monitoring the risks arising from the cost of living crisis and taking appropriate actions to mitigate these exceptional risks. The trustees have also considered the political environment and considered how a change in government may impact both the economy and the independent school sector.
The trustees have adopted appropriate policies with regard to its operations (for example in the areas of Risk Management and Data Protection).
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Trustees' report (continued) Year ended 31 July 2024
Future developments
The Development Office, which was originally formed in 2002 and re-established in 2019, has been further strengthened in the year with the addition of a new Head of Development. In FY23/24 fundraising activities raised total income of £999,071 (2023: £504,711). The climate for fundraising in the year has been impacted by the cost of living pressure which families are experiencing, however the strengthened Development Office is:
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building a strong pipeline of diverse fundraising activity
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deepening stewardship of current donors – to whom we remain incredibly grateful; and
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building relationships with a growing base of prospective donors.
Approved by order of the members of the board of trustees on 12 December 2024 and signed on their behalf by:
M Squires (Chair of trustees)
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Statement of trustees' responsibilities Year ended 31 July 2024
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards ('United Kingdom Generally Accepted Accounting Practice').
The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate 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 statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of trustees on 12 December 2024 and signed on its behalf by:
M Squires (Chair of trustees)
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
Independent auditor's report to the members of The Royal Grammar School Educational Trust
Opinion
We have audited the financial statements of The Royal Grammar School Educational Trust ('the charity') for the year ended 31 July 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('United Kingdom Generally Accepted Accounting Practice').
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 July 2024 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) ('ISAs (UK)') and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the financial statements' section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
Independent auditor's report to the members of The Royal Grammar School Educational Trust (continued)
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. 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 we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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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, the trustees are responsible for the preparation of the financial statements which 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 charity'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.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
Independent auditor's report to the members of The Royal Grammar School Educational Trust (continued)
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the trustees and other management (as required by Auditing Standards) and from inspection of the charity's legal correspondence and we discussed with the trustees and other management the policies and procedures in place regarding compliance with the laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
Firstly, the charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the charity is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection and certain aspects of charity legislation, recognising the nature of the charity's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
Independent auditor's report to the members of The Royal Grammar School Educational Trust (continued)
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Anne Hallowell BSc FCA DChA (Senior Statutory Auditor) for and on behalf of UNW LLP, Statutory Auditor Chartered Accountants Newcastle upon Tyne
12 December 2024
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Statement of financial activities Year ended 31 July 2024
| Note Income and endowments from: Donations and legacies 3 Investments 4 Total income and endowments Expenditure on: Charitable activities 5 Total expenditure Net gains/(losses) on investments Net income/ (expenditure) Transfers between funds 10 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2024 £ 999,071 162,257 1,161,328 1,213,516 1,213,516 373,205 321,017 5,325 326,342 5,045,444 326,342 5,371,786 |
Restricted funds 2024 £ - 6,113 6,113 76,469 76,469 1,842 (68,514) (5,325) (73,839) 237,587 (73,839) 163,748 |
Endowment funds 2024 £ - - - - - 21,059 21,059 - 21,059 275,233 21,059 296,292 |
Total funds 2024 £ 999,071 168,370 1,167,441 1,289,985 1,289,985 396,106 273,562 - 273,562 5,558,264 273,562 5,831,826 |
Total funds 2023 £ 504,711 148,815 653,526 1,109,785 1,109,785 (110,574) (566,833) - (566,833) 6,125,097 (566,833) 5,558,264 |
|---|---|---|---|---|---|
The notes on pages 15 to 27 form part of these financial statements.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Balance sheet At 31 July 2024
| 2024 | 2024 | 2023 | ||||
|---|---|---|---|---|---|---|
| Note | £ | £ | ||||
| Fixed assets | ||||||
| Investments | 7 | 5,573,149 | 5,177,043 | |||
| Current assets | ||||||
| Debtors | 8 | 120,654 | 78,891 | |||
| Cash at bank and in hand | 13 | 146,023 | 307,435 | |||
| 266,677 | 386,326 | |||||
| Creditors: amounts falling due within one | ||||||
| year | 9 | (8,000) | (5,105) | |||
| Net current assets | 258,677 | 381,221 | ||||
| Total assets less current liabilities | 5,831,826 | 5,558,264 | ||||
| Total net assets | 5,831,826 | 5,558,264 | ||||
| Charity funds | ||||||
| Endowment funds | 10 | 296,292 | 275,233 | |||
| Restricted funds | 10 | 163,748 | 237,587 | |||
| Unrestricted funds | 10 | 5,371,786 | 5,045,444 | |||
| Total funds | 5,831,826 | 5,558,264 |
The financial statements were approved and authorised for issue by the trustees on 12 December 2024 and signed on their behalf by:
M Squires
(Chair of trustees)
The notes on pages 15 to 27 form part of these financial statements.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Statement of cash flows Year ended 31 July 2024
| Note Cash flows from operating activities Net cash used in operating activities 12 Cash flows from investing activities Dividends, interests and rents from investments Net cash generated from/(used in) investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 13 The notes on pages 15 to 27 form part of these financial statements |
2024 £ (329,782) 168,370 168,370 (161,412) 307,435 146,023 |
2023 £ (136,769) 148,815 148,815 12,046 295,389 307,435 |
|---|---|---|
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Royal Grammar School Educational Trust ('the charity') meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The accounts are presented in pounds sterling and are rounded to the nearest £1.
1.2 Going concern
The charity holds substantial investment assets, but maintains sufficient cash reserves to allow it to meet its ongoing commitments. Consequently, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
1.3 Income
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.
Grants from charitable trusts are recognised immediately as income when they fulfil the income recognition criteria provided by the Charity Commission SORP. Where a grant has been pledged by a charitable trust for several years, all of the grant is recognised in the year in which the pledge is made, regardless of the timing of payments.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
1. Accounting policies (continued)
1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity, including those incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
1.5 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.
1.6 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.7 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.8 Liabilities and provisions
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
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Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
1. Accounting policies (continued)
1.9 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
1.10 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Endowment funds are funds which are held for the permanent benefit of the charity. There is no power to convert capital into income.
Investment income, gains and losses are allocated to the appropriate fund.
2. Critical accounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
In preparing these financial statements the trustees do not consider there were any estimates or significant areas of judgment that were required in applying the charity's accounting policies as set out above.
17
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
3. Income from donations and legacies
| Unrestricted funds 2024 £ Charitable trusts 63,000 Legacies 121,761 The Newcastle upon Tyne Royal Grammar School 204,000 Individuals 610,310 999,071 Unrestricted funds 2023 £ Charitable trusts 3,000 Legacies 91,707 The Newcastle upon Tyne Royal Grammar School - Individuals 410,004 504,711 |
Total funds 2024 £ 63,000 121,761 204,000 610,310 |
|---|---|
| 999,071 | |
| Total funds 2023 £ 3,000 91,707 - 410,004 |
|
| 504,711 |
4. Investment income
| Unrestricted funds 2024 £ Income from listed investments 162,257 Unrestricted funds 2023 £ Income from listed investments 139,420 |
Restricted funds 2024 £ 6,113 Restricted funds 2023 £ 9,395 |
Total funds 2024 £ 168,370 |
|---|---|---|
| Total funds 2023 £ 148,815 |
18
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
5. Analysis of expenditure on charitable activities
Summary by fund type
| Unrestricted funds 2024 £ Charitable activities 1,213,516 Unrestricted funds 2023 £ Charitable activities 1,032,940 Analysis of expenditure by activities Direct costs 2024 £ Grants awarded 1,275,000 Direct costs 2023 £ Grants awarded 1,099,709 |
Restricted funds 2024 £ 76,469 Restricted funds 2023 £ 76,845 Support costs 2024 £ 14,985 Support costs 2023 £ 10,076 |
Total 2024 £ 1,289,985 |
|---|---|---|
| Total 2023 £ 1,109,785 |
||
| Total funds 2024 £ 1,289,985 |
||
| Total funds 2023 £ 1,109,785 |
6. Analysis of expenditure by activities
19
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
6. Analysis of expenditure by activities (continued)
Analysis of support costs
| Special project expenses Auditor's remuneration Bank charges Other expenses 7. Fixed asset investments Cost or valuation At 1 August 2023 Revaluations At 31 July 2024 Net book value At 31 July 2024 At 31 July 2023 8. Debtors Prepayments and accrued income |
Total funds 2024 £ 6,255 8,000 730 - 14,985 2024 £ 120,654 |
Total funds 2023 £ 2,425 3,192 1,088 3,371 10,076 Listed investments £ 5,177,043 396,106 |
|---|---|---|
| 5,573,149 | ||
| 5,573,149 | ||
| 5,177,043 | ||
| 2023 £ 78,891 |
20
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
9. Creditors: amounts falling due within one year
| Other creditors Accruals and deferred income Statement of funds Statement of funds - current year Balance at 1 August 2023 £ Income £ Unrestricted funds Designated funds John Cockburn Macdonald Memorial Fund 82,958 2,570 Stemson Fund 57,806 1,791 Wolfson Foundation Bursary Fund 330,268 10,232 471,032 14,593 General funds General Fund 4,574,412 1,146,735 Total unrestricted funds 5,045,444 1,161,328 Endowment funds Ritchie Fund 275,233 - |
Expenditure £ (16,521) (16,521) (16,521) (49,563) (1,163,953) (1,213,516) - |
Transfers in/out £ - - - - 5,325 5,325 - |
2024 2023 £ £ - 185 8,000 4,920 8,000 5,105 Gains/ (Losses) £ Balance at 31 July 2024 £ 6,010 75,017 4,188 47,264 23,926 347,905 34,124 470,186 339,081 4,901,600 373,205 5,371,786 21,059 296,292 |
2023 £ 185 4,920 |
|---|---|---|---|---|
| 5,105 | ||||
| Balance at 1 August 2023 £ Unrestricted funds Designated funds John Cockburn Macdonald Memorial Fund 82,958 Stemson Fund 57,806 Wolfson Foundation Bursary Fund 330,268 471,032 General funds General Fund 4,574,412 Total unrestricted funds 5,045,444 Endowment funds Ritchie Fund 275,233 |
||||
| 470,186 | ||||
| 4,901,600 | ||||
| 5,371,786 | ||||
| 296,292 |
10. Statement of funds
21
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
10. Statement of funds (continued)
| Balance at 1 August 2023 £ Restricted funds Coomblea Trust 10,788 Ritchie Fund - Kenneth Halton Imison Fund 13,597 Dr Carr Fund 1,035 Advani Fund 155,677 Flagstone Fund 56,490 237,587 Total of funds 5,558,264 |
Income £ 334 5,325 421 33 - - 6,113 1,167,441 |
Expenditure £ (11,903) - (15,003) - (33,042) (16,521) (76,469) (1,289,985) |
Transfers in/out £ - (5,325) - - - - (5,325) - |
Gains/ (Losses) £ Balance at 31 July 2024 £ 781 - - - 985 - 76 1,144 - 122,635 - 39,969 1,842 163,748 396,106 5,831,826 |
Gains/ (Losses) £ Balance at 31 July 2024 £ 781 - - - 985 - 76 1,144 - 122,635 - 39,969 1,842 163,748 396,106 5,831,826 |
|---|---|---|---|---|---|
| 163,748 | |||||
| 5,831,826 |
22
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
10. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Designated funds John Cockburn Macdonald Memorial Fund Stemson Fund Bursary Campaign Fund Wolfson Foundation Bursary Fund General funds General Fund Total unrestricted funds Endowment funds Ritchie Fund |
Balance at 1 August 2022 £ 82,393 57,413 409,681 328,022 877,509 4,667,868 5,545,377 281,112 |
Income £ 2,196 1,530 515,628 8,741 528,095 116,036 644,131 - |
Expenditure £ - - (1,022,864) - (1,022,864) (10,076) (1,032,940) - |
Transfers in/out £ - - 105,667 - 105,667 (113,199) (7,532) - |
Gains/ (Losses) £ (1,631) (1,137) (8,112) (6,495) (17,375) (86,217) (103,592) (5,879) |
Balance at 31 July 2023 £ 82,958 57,806 - 330,268 |
|---|---|---|---|---|---|---|
| 471,032 | ||||||
| 4,574,412 | ||||||
| 5,045,444 | ||||||
| 275,233 |
23
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
10. Statement of funds (continued)
| Restricted funds Coomblea Trust Reece Foundation Ritchie Fund Kenneth Halton Imison Fund Dr Carr Fund Advani Fund Flagstone Fund Total of funds |
Balance at 1 August 2022 £ 10,714 28,344 2,111 13,506 1,028 171,046 71,859 298,608 6,125,097 |
Income £ 286 755 7,967 360 27 - - 9,395 653,526 |
Expenditure £ - (30,738) (15,369) - - (15,369) (15,369) (76,845) (1,109,785) |
Transfers in/out £ - 2,200 5,332 - - - - 7,532 - |
Gains/ (Losses) £ (212) (561) (41) (269) (20) - - (1,103) (110,574) |
Balance at 31 July 2023 £ 10,788 - - 13,597 1,035 155,677 56,490 |
|---|---|---|---|---|---|---|
| 237,587 | ||||||
| 5,558,264 |
24
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
The designated funds relate to donations which the trustees wish to record separately in recognition of the generosity of the original gifts. Should a donor specify that their donation was to be used for a particular purpose which is more specific than the general objects of the charity then the donation would be placed into restricted funds.
The Ritchie Endowment Fund is to fund one bursary up to 100% of fees in perpetuity in any subject and at any level at The Newcastle upon Tyne Royal Grammar School. The Fund is treated by the trustees as a permanent endowment fund, the income of which is applied towards one bursary each year.
Coomblea Trust - this bequest is to be used for the setting up of a bursary for chemistry or chemical engineering students.
Reece Foundation - the donation is to be used for the setting up of bursaries for 6th form science and engineering students.
Kenneth Halton Imison Fund - this bequest is to be used for the setting up of a bursary for applied science and engineering students.
Dr Carr Fund - this donation is to be used to provide organ music tuition.
Advani Fund - this donation is to fund two bursaries of 100% of fees from Year 7 to Year 13.
Flagstone Fund - this donation is to fund one bursary of 100% of fees from Year 7 to Year 13 for a student starting at the School in September 2019.
Following a review of the reserves, transfers between unrestricted funds and various other funds have been made to rationalise the fund balances.
25
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
11. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 2024 £ Fixed asset investments 5,113,109 Current assets 266,677 Creditors due within one year (8,000) Total 5,371,786 |
Restricted funds 2024 £ 163,748 - - 163,748 |
Endowment funds 2024 £ 296,292 - - 296,292 |
Total funds 2024 £ 5,573,149 266,677 (8,000) 5,831,826 |
|---|---|---|---|
Analysis of net assets between funds - prior period
| Fixed asset investments Current assets Creditors due within one year Total |
Unrestricted funds 2023 £ 4,664,223 386,326 (5,105) 5,045,444 |
Restricted funds 2023 £ 237,587 - - 237,587 |
Endowment funds 2023 £ 275,233 - - 275,233 |
Total funds 2023 £ 5,177,043 386,326 (5,105) 5,558,264 |
|---|---|---|---|---|
12. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income/expenditure for the period (as per Statement of Financial Activities) Adjustments for: (Gains)/losses on investments Dividends, interests and rents from investments (Increase)/decrease in debtors Increase in creditors Net cash used in operating activities |
2024 £ 273,562 (396,106) (168,370) (41,763) 2,895 (329,782) |
2023 £ (566,833) 110,574 (148,815) 464,928 3,377 (136,769) |
|---|---|---|
26
Docusign Envelope ID: 26C3A676-DEE1-49D0-A3C2-FED8CEA140EA
The Royal Grammar School Educational Trust
Notes to the financial statements Year ended 31 July 2024
13. Analysis of cash and cash equivalents
| Cash in hand Analysis of changes in net debt At 1 August 2023 £ Cash at bank and in hand 307,435 |
2024 £ 146,023 Cash flows £ (161,412) |
2023 £ 307,435 |
|---|---|---|
| At 31 July 2024 £ 146,023 |
14. Analysis of changes in net debt
15. Related party transactions
The charity shares certain trustees with The Newcastle upon Tyne Royal Grammar School, a registered charitable company. The school's administrative staff provide assistance with the charity's record keeping at no charge to the charity. The school maintains a bank account on behalf of the charity in respect of donations towards the charity's campaign appeal and the school has met the charity's campaign appeal costs totalling £149,951 (2023: £105,508).
The charity grants income towards bursaries paid by the school for some pupils of the school. The grant made towards the school's bursaries in the year amounted to £1,275,000 (2023: £1,099,709).
The charity has provided Hardship funds to help support families (e.g. pruchasing suitable clothes for Sixth formers, transportation expenses to the school) to the Newcastle upon Tyne Royal Grammar School totalling £6,255 (2023: £2,425)
The charity received donations in the year of £204,000 (2023: £nil) from The Newcastle upon Tyne Royal Grammar School as a grant towards bursary payments.
The charity has also received donations totalling £18,545 (2023: £63,595) from trustees or charities with which trustees have an association.
The Storrow Scott Charitable Will Trust, a charity controlled by the school, applies its income to the charity. Grants paid or payable from the school to the charity in the year amounted to £426,628 (2023: £30,738).
The charity purchased merchandise from RGS Trading Limited in the year totalling £nil (2023: £185). The oustanding balance owed to RGS Trading Limited at the year end is £nil (2023: £185).
No trustees received any remuneration or repayment of expenses in the year (2023: £nil).
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