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2020-07-31-accounts

Company Registration No. 01521751 Charity Registration No. 510809

LEICESTER GRAMMAR SCHOOL TRUST

TRUSTEES’ REPORT AND STATEMENT OF ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

LEICESTER GRAMMAR SCHOOL TRUST

CONTENTS

Page
Legal and Administrative Information 1 – 2
Report of the Board of Trustees (incorporating the Strategic Report) 3 - 13
Independent Auditor’s Report to the Board of Trustees 14 - 15
Statement of Financial Activities 16
Balance Sheet 17
Cash Flow Statement 18
Notes to the Accounts 19 - 35

LEICESTER GRAMMAR SCHOOL TRUST

Legal and administrative information

Charity Trustees

The Trustees of Leicester Grammar School Trust are also company directors, and carry the responsibilities accorded to them by the Charity Commission and under Company Law. They have all served in office throughout the year except where indicated:

Mrs E M Bailey Mrs J Burns (Vice chair, Academic) Professor D Cartmell (appointed 16 November 2020) Dr S M Dauncey (resigned 6 September 2019) (Chairman to 6 September 2019) Mr S Gasztowicz (Chairman from 6 September 2019) Mr D C Green Dr S E Hadley Mr M J Holley (Vice chair, Financial) Mr N J M Imlach Mr K J Julian (resigned 21 May 2020) Dr D I Khoosal Dr L Mongan-Cockcroft The Very Revd David Monteith (resigned 2 December 2019) Mrs A G O’Donovan Professor J M Saker The Ven R V Worsfold (appointed 11 March 2020)

Committees and sub committees of the Board of Trustees

The following Trustees served on committees and sub committees of the Board during the year:

Education Committee:

Mrs J Burns (Committee Chairman) Mrs E M Bailey Mr S Gasztowicz Mr K J Julian Dr L Mongan-Cockcroft The Ven R V Worsfold

Finance and General Purposes Committee: Mr M J Holley (Committee Chairman) Mr S Gasztowicz Mr D C Green Mr N J M Imlach Mr K J Julian Health and Safety Committee: Professor J M Saker (Committee Chairman) Dr D I Khoosal Dr S E Hadley

Nominations and Governance Committee: Mr S Gasztowicz (Committee Chairman) Mrs J Burns Mr M J Holley Salaries Review Committee: Mr S Gasztowicz (Committee Chairman) Mrs J Burns Mr M J Holley Bursaries, Scholarships and Public Benefit Sub Committee: Mr S Gasztowicz (Sub committee Chairman) Mrs E M Bailey

LEICESTER GRAMMAR SCHOOL TRUST

Legal and administrative information cont.

The Board is a self-appointing body. One third of the Board is required to retire by rotation, each year. Board members are eligible to stand for re-election at the end of a term of office.

Officers

Headmaster of Leicester Grammar School and Principal of Leicester Grammar School Trust: Mr J W Watson Headmistress of Leicester Grammar Junior School: Mrs C Rigby Headmaster of Stoneygate School: Mr J Dobson Director of Finance and Operations and Company Secretary: Mr S J Jeffries

Addresses:

Leicester Grammar School and Leicester Grammar Junior School London Road Great Glen Leicester LE8 9FL (School and registered office)

Stoneygate School 6 London Road Great Glen Leicester LE8 9DT

Websites: www.leicestergrammar.org.uk www.stoneygateschool.co.uk

Auditors

Haysmacintyre LLP 10 Queen St Place London EC4R 1AG

Bankers

NatWest 1 Granby Street Leicester LE1 9GT

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020

The Trustees present their report and financial statements for the year ended 31 July 2020 and confirm they comply with the requirements of the Charities Act 2011, including the Directors’ and Strategic Report under the Companies Act 2006.

Reference and Administrative Information

The Charity was founded in 1980 and is registered with the Charity Commission under charity number 510809.

Leicester Grammar School Trust is also a company limited by guarantee, registered under company number 01521751.

The Trustees, executive officers and principal address of the Charity are as listed on page 1 and 2. Particulars of the Charity’s professional advisers are given on page 2.

Structure, Governance and Management

Governing Document

The Charity is governed by its Memorandum and Articles dating from 13 October 1980 and last amended on 3 December 2014.

Governing Bodies

The Charity operates three schools, Leicester Grammar School, Leicester Grammar Junior School and Stoneygate School. There is a single Governing body, being the Charity Trustees, the details of which are explained on page 1.

Recruitment and Training of Trustees

The Charity’s elected Trustees are appointed at a meeting of the Board of Leicester Grammar School Trust, on the basis of recommendations made by the Nominations and Governance Committee, a committee of the Board. The Committee considers eligibility, skills and commitment when advising the Board and endeavors to ensure that the Board contains an appropriate balance of skills.

New Trustees receive a pack of written information as well as visiting all three schools and meeting with key officers and the Chairman of the Board. All Trustees complete a skills audit which is used to identify individual training needs and also any areas where additional expertise may need to be added to the Board. Trustees are also encouraged to assess their own training needs and individual Trustees attend courses as required.

Organisational Management

The Trustees are legally responsible for the overall management and control of the three Schools. The Board of Trustees meets four times each year.

The Education Committee was established during the year and meets once per term. This Committee oversees the curriculum, teaching and learning and educational policy across the three Schools.

The Finance and General Purposes Committee meets four times a year. This Committee oversees the implementation of Board policies, and also undertakes detailed reviews before making recommendations to the Board. The Finance and General Purposes Committee is chaired by a Trustee who is not Chairman of the full Board.

The Health and Safety Committee meets once per term and reviews health and safety policies and procedures at all three Schools.

The Nominations and Governance Committee meets as and when required, but usually once a year. It considers the composition of the Board and applications from prospective Trustees.

The Salaries Review Committee meets periodically to consider salaries payable to the Senior Leadership Team.

The Bursaries, Scholarships and Public Benefit Sub Committee meets up to three times each year.

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report)

FOR THE YEAR ENDED 31 JULY 2020 cont.

The day to day running of the schools is delegated to the respective Heads supported by their Senior Leadership Teams together with the Director of Finance and Operations. The Head Teachers and the Director of Finance and Operations attend meetings of the Board and its committees and sub committees.

Key Management Personnel are considered to be the Principal and Headmaster of Leicester Grammar School, the Director of Finance and Operations, the Heads of Leicester Grammar Junior School and Stoneygate School, and the two Deputy Heads of Leicester Grammar School. The remuneration of this senior staff group is determined by the Salaries Review Committee of the Board of Trustees with reference to appraisal records and benchmarking.

Objects, Aims, Objectives and Activities

Charitable Objects

The Trust’s Objects, as set out in its Memorandum and Articles, are the advancement of education, through a school or schools, run according to Christian principles.

Aims and Intended Impact

Within these Objects the Trust’s aim is to provide an excellent education for pupils of high academic ability, regardless of their financial means. The Trust aims to provide for the pupils’ general instruction of high standard and quality, including physical, moral and religious education and to provide an environment where each pupil can develop his or her talents to the full.

Objectives for the Year

In setting objectives and planning activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing education and on fee-charging.

The focus has been on continued academic achievement, particularly at A level. Academic excellence is complemented by a strong emphasis on sport, art and music, ensuring a rounded education for pupils of all ages.

The Trust remains committed to enrolling able children from all backgrounds regardless of ability to pay the fees.

A key objective for the Trust for 2019-20 was to increase pupil numbers.

The Trust aims to play a full part in the life of the local, regional and indeed national community.

Strategies to Achieve the Year’s Objectives

The Trustees continue to review GCSE and A level results and benchmark Leicester Grammar School against other schools in the national league tables. There has been an increased focus on teaching and learning strategies, and a new Sixth Form programme (Aspire) was planned, with introduction in September 2021.

Provision of means-tested bursaries remains a high priority for the Trust, in order to ensure that the School is accessible to pupils from a wide range of backgrounds. The Trust continues to seek funding for additional bursaries and has a subsidiary company, LGS Enterprises Limited, which was established to generate additional income.

The Trustees continue to work to raise the profile of the schools in order to attract applications for admission from able candidates.

The Trust continues to work hard to create links with local schools and the local community, particularly by making its facilities available to other local groups and organisations.

Principal Activities of the Year

The Trust principally provides education to boys and girls from the age of 3 to 18.

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

The Trust continues to operate three schools.

Two of the schools are based on a shared site in Great Glen, Leicestershire: Leicester Grammar School for pupils aged 10-18 and Leicester Grammar Junior School for pupils aged 3-11. During the year Leicester Grammar School averaged 839 (2018-19: 832) pupils and Leicester Grammar Junior School averaged 391 (2018-19: 376) pupils. Both schools continue to operate broadly at capacity.

In May 2016 the Trust acquired the trade and assets of Stoneygate School, an independent coeducational preparatory school also situated in Great Glen, Leicestershire on a separate 45 acre site. During the year Stoneygate School averaged 166 (2018-19: 178) pupils. It is the intention of the Trustees to increase the pupil roll at the school in line with the existing capacity of the Stoneygate site. During 2019-20 Stoneygate educated pupils aged 4-16. 2019-20 was the first year that the school extended its offering up to GCSE. Stoneygate School provides a high quality education with a distinctive ethos, underpinned by high quality governance and management provided by the Trust.

2019-20 has been a complex year owing to the Covid-19 pandemic. The Trust has managed its finances carefully over the last year, taking advantage of Government support through both the Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme (CBILs).

£4 million was borrowed under CBILs which was deemed a prudent measure to ensure the Trust had a buffer to counter any downside-risks arising from economic volatility subsequent to the health crisis caused by Covid-19.

Following the national lockdown, the Trust provided support to parents by providing a fee discount in the Trinity term and through fee deferral arrangements and some additional bursary funding.

The Trust is confident that the schools will continue to attract able pupils. This is a result of continued efforts to maintain the academic and co-curricular standards for which the schools have become known, continued investment in facilities and ongoing efforts to market the schools.

Our Ethos

The Trust is a charity which seeks to benefit the public through the pursuit of its stated aims. Fees are set at a level to ensure the financial viability of the schools and at a level which is consistent with the aim of providing a first-class education to boys and girls.

The schools welcome academically able pupils from all backgrounds. To admit a prospective pupil the schools need to be satisfied that they will be able to educate and develop that prospective pupil to the best of their potential and in line with the general standards achieved by their peers. Pupils wishing to join the Grammar School are required to sit an entrance exam and pupils wishing to join Leicester Grammar Junior School or Stoneygate School undergo an assessment. Both forms of assessment are designed to satisfy the school and the parents that the potential pupil can cope with the pace of learning and benefit from the education provided. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of the assessment process.

The schools are committed to safeguarding and promoting the welfare of pupils and expect all staff and volunteers to share this commitment. The schools carry out appropriate background checks of adults who come into contact with pupils. The schools maintain regular contact with parents through the year including holding parents evenings, issuing end of term reports, and sending home regular newsletters.

The Trust is an equal opportunity organisation and is committed to a working environment which is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability.

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

Disabled employees

The Trust facilitates the employment of disabled persons and provides, wherever possible, training, career development and promotion. Where employees become disabled whilst in service, every effort is made to rehabilitate them to their former jobs or some other suitable alternative and provide appropriate training and specialist advice.

Access Policy

It is important that access to the education provided by the Trust and to its facilities is not restricted to those who can afford the fees. The Trust believes that all pupils benefit from learning within a diverse community. The Trust’s bursaries policy, together with links with local state schools and other organisations which have access to the Trust’s facilities, contribute to a widening of access.

Grant-making Policy

The Trustees view the bursary awards as essential in helping to ensure that children from families which would not otherwise be able to afford the fees can access the education on offer. Bursaries are available to all prospective pupils who pass the entrance exam to join the Grammar School in years 7 and above, and are made solely on the basis of parental means. Bursaries are also available to existing pupils whose financial circumstances change and whose ability to remain at the school is under threat, for example due to parental redundancy. From September 2018 the bursaries scheme was extended to also include pupils joining Stoneygate School in years 7 and above.

In assessing a bursary application the Trust takes a number of factors into consideration, including family income, assets held, investments and savings, and the number of dependents. However, the Trust does not have a large endowment or extensive reserves to draw on. In funding bursary awards the Trust is mindful of the need to ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards. The Trustees are also mindful of the requirement for careful financial stewardship at a time when significant financial commitments have been taken on.

Bursary awards vary from 10% to 100% of fees and are re-assessed on an annual basis to take account of any changes in the family’s financial situation. Information about fee assistance is available in the prospectus and on the school website, as well as being advertised in the local press and elsewhere. The form completed by applicants includes a box to tick, to indicate simply that the applicant wishes to be considered for a means tested bursary.

The Trustees have also set up a sub committee of the Board: the Bursaries, Scholarships and Public Benefit Sub Committee. This sub committee reviews, monitors and advises on the Trust’s Public Benefit role, particularly developing the provision of means tested bursaries, taking into account the Charities Act requirements and Charity Commission guidelines.

During the year, an additional Coronavirus Hardship Bursary Fund was established to support parents impacted by Covid-19, either health-wise or financially.

Volunteers

Old Leicestrians, Friends of Leicester Grammar School, Friends of Leicester Grammar Junior School and the Stoneygate Association provided support, advice and enrichment opportunities during the year, as well as helping with fundraising and organising social and cultural events. The Board is grateful to them for their continuing and valuable support for the schools.

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LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

STRATEGIC REPORT

Review of Achievements and Performance for the Year

Operational Performance of the Schools

Public examinations for 2019-20 were replaced with Centre Assessment Grades owing to Covid-19. The Grammar School maintained its high academic standing. At GCSE level 59.4% (2018-19: 57.7%) of results were graded 8 or 9. At 'A' level 89.2% (2018-19: 82.3%) of grades were at A/B, and 32.4% (2018-19: 19.2%) at the A grade.

Stoneygate School recorded its first set of GCSE results in 2019-20 with 100% of Centre Assessment Grades graded 4 or above and 41% of results graded 7 or above.

Leicester Grammar and Leicester Grammar Junior School underwent a Focussed Compliance and Educational Quality Inspection in November 2019. The schools were found to be fully compliant with the Independent School Standards Regulations and were judged ‘Excellent’ in the two EQI categories (pupils’ achievements and pupils’ personal development). Leicester Grammar School was also named East Midlands Independent Secondary School of the Year 2020.

During the year ended 31 July 2020, the value of means tested bursaries awarded to pupils totalled £854,000 (2018-19 £794,000). This figure included bursaries worth £28,000 (2018-19 £27,000) funded by external benefactors. The value of means tested bursaries represented 4.6% of the gross fee income of the Trust (2018-19: 4.9%).

During the year, 19 pupils received a 100% bursary (2018-19: 27 pupils). A further 13 pupils received bursaries of between 80% and 99% of fees (2018-19: 20 pupils).

Further awards totaling £160,000 (2018-19: £184,000) were made to pupils at Leicester Grammar School in the form of scholarships. The Trustees’ policy is to make these awards on the basis of individual ability and potential. The Trustees have a stated aim of gradually reducing the total value of scholarships in favour of gradually increasing the number and value of means tested bursaries.

A full complement of staff qualified to teach their respective subjects was in place throughout the year at all three of the Trust’s schools. The support staff positions were similarly all filled.

In 2019-20 the Trust continued to contribute to the local and wider community where possible, despite the Covid 19 pandemic. The schools provided the following activities:

Educational partnerships, examples include:

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LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

Charitable projects, examples include:

Community service, examples include:

Facilities, Music and Sport for the Community, examples include:

Financial Review and Results for the Year

The Trust recorded a surplus of £254,000 (2018-19 £538,000) during the year.

Total incoming resources reduced by £466,000, from £16,867,000 to £16,401,000. The increase in pupil numbers was offset by a reduction in school fees in the summer term, due to Covid-19

Investment Policy

The financial objective of the Trustees is to maintain the real value of the Trust’s assets whilst generating a stable and sustainable return to help fund the charity’s activities over the long term. The Trustees review the investment policy on a regular basis.

At the year end the Trust’s investments included £358,000 (2018-19: £369,000) of investment assets held within an investment portfolio managed by Brewin Dolphin. The Finance and General Purposes Committee are charged with agreeing a suitable asset allocation strategy with the investment managers which is set with the aim of achieving the Trust’s overall investment objectives. This strategy would reflect the Brewin Dolphin risk category 5-6: low to moderate investment risk, to moderate investment risk. The Trustees adopt an ethical investment policy so that the Trust’s assets are invested in line with its aims. Specifically, the Trustees would not wish to be invested in companies that obtain more than 10% of their turnover from involvement in the military or armaments.

The Trust also owns an investment property valued at £250,000 which is let out on the open market. This residential property was acquired in May 2016 as part of the Stoneygate School site. Further short term investments are held in the form of bank deposit accounts. During the year the Trust recorded a deficit on investments of £11,000 (2018-19: income of £7,000), plus bank and other interest receivable of £10,000 (2018-19: £27,000) and a further £9,000 of gains on investments (2018-19: £11,000).

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report)

FOR THE YEAR ENDED 31 JULY 2020 cont.

Risk Management

The Trustees are responsible for the management of the risks faced by the Schools. Risks are identified and assessed and controls established throughout the year. A formal risk register is in place and is reviewed and updated on a regular basis by the Senior Leadership Team initially and then by the Finance & General Purposes Committee.

The principal risks and uncertainties identified in the Trust’s risk register include:

Key controls used by the charity include:

Through the risk management processes established for the Trust, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Charity Fundraising

The school has not made any fundraising appeals to the general public during the year, and is unlikely to do so in the future. There has been no outsourced fund raising via professional fundraisers or other third parties. As a result the charity is not registered with the fundraising regulator and received no fundraising complaints in the year.

Reserves Policy

The Trustees aim to hold funds which are sufficient but not excessive in order to fund current operational requirements and future development. The Trustees are mindful of the need to maintain a level of reserves which enable the organisation to respond to circumstances and mitigate risk, including ensuring compliance with the terms of the bank loans.

The Trustees review the reserves policy on a regular basis. The policy was revised in 2019-20 such that the Trust aims to hold a minimum of £2m (including cash investments) at all times. The value of cash and investments held at 31 July 2020 was £7.3m. The Trust’s cash reserves therefore exceeded the target level set out in the policy.

At the end of the year the Trust’s total reserves were £13,587,000 (2019: £13,333,000), including £12,827,000 (2019: £12,567,000) of unrestricted funds, £7,000 (2019: £16,000) of restricted funds and £752,000 (2019: £750,000) of endowment funds. The Trust’s total reserves include £29,200,000 which could only be realised by disposing of tangible fixed assets.

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

The Trustees remain confident that the Trust is able to meet its financial obligations as they fall due, as well as continuing to invest in the fabric of the buildings and the facilities and equipment required to provide an excellent education at the Trust’s schools. The Trust holds significant cash reserves and continues to generate an annual surplus after meeting its financial obligations and is forecast to continue to do so. The Trustees are confident, based on the Trust’s sound financial position, that the Trust can continue as a going concern.

Payment practices

The average number of days taken to make payments to the Trust’s suppliers in the year was 31 (2019: 28). The percentages of payments made within the year which were paid: within 30 days was 55% (2019: 56%); between 31 and 60 days was 35% (2019: 39%); and after 61 days or longer was 10% (2019: 5%). The percentage of payments due within the reporting period which were not paid within agreed terms was 27% (2019: 28%).

Gender pay gap reporting

The Trust’s gap for mean hourly rates of pay at 5 April 2020 was 14.2% (2019: 13.2%) in favour of male employees. The median hourly pay gap at 5 April 2020 was 14.4% (2019: 15.7%). The pay gap is impacted by the diversity of employed roles within the Trust and is kept under review on an annual basis.

Communication

Effective communication with employees is of vital importance and both Trustees and senior management provide information to, and consult with, staff on matters that affect them, including financial matters.

Environmental matters

The Trust is committed to minimising the impact that its operations have on the environment and providing a safe environment for its staff and pupils. A pupil eco-group meets to suggest initiatives and the schools are conscious of ensuring the schools take a proactive view on environmental matters.

Strategic Planning

The Trust Development Plan for the year ended 31 July 2020 affirms the main aims of the Schools as being:

The schools select pupils for entry in accordance with its published admission procedures.

The Trust remains committed to maintaining its position as a leading provider of co-educational day schools. The key objectives within the Plan, each of which is supported by an action plan, are:

  1. Maintain and where possible enhance the academic standards of the School(s). To similarly aim to enhance the co-curricular areas of the School(s).

  2. Sustain the School roll(s) at or near to the projected maximum, as set out in the Trust’s financial plan. There are no plans to significantly increase the School roll at either LGS or LGJS.

  3. Continue to fulfil the Trust’s charitable objects.

  4. Promote the professional welfare of staff and the personal welfare of both staff and pupils.

  5. Increase the funds available to the Trust for the award of bursaries.

  6. Actively maintain and enhance the School buildings and wider estate.

  7. Plan the future development of IT and ICT within the Schools.

The Trust has a wholly owned subsidiary company, LGS Enterprises Limited. This company undertakes commercial activities in order to generate funds to gift to Leicester Grammar School Trust.

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report)

FOR THE YEAR ENDED 31 JULY 2020 cont.

Future Planning

At a strategy away-day in March 2020, a 2030 Vision was shared and agreed by Trustees.

Each of our schools will have:

Each of our schools will be:

The Trust’s mission statement and the aims of Leicester Grammar and Leicester Grammar Junior Schools were revised:

The Leicester Grammar School Trust seeks to be an inspiring centre for co-educational excellence in academic and personal development, within a Christian ethos.

Leicester Grammar School:

In order to fulfil this mission, the school aims to:

Leicester Grammar Junior School:

In order to fulfil this mission, the school aims to:

LEICESTER GRAMMAR SCHOOL TRUST

REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2020 cont.

The strategic objectives for 2020-23 were agreed:

Vision: The school communities within the Trust will thrive through:

Inspiring learning

(Teaching, learning and attainment)

Stimulating curriculum

(Curriculum and co-curriculum)

Care and community

(Pupils’ well-being, support and guidance; staff professional development and well-being)

Appeal and outreach

(Marketing, admissions, outreach, fundraising and communications)

Environment and provision

(Resources and facilities)

EICESTER GRAMMAR SCHOOL TRU RE RT OF THE BOARD OF TR TEES inc ratin cRe FOR THE YEAR ENDED 31 JULY 2020 c Trustees, onsibilities Statèmen Thè Trustees {b¥ho are also directors of Leicester Grammar School for the purposes of company law) are responsible for preparing the Report of the Board of Trustees and the financial statements in accordance wth applicable law and regulations. Cornpany law requires the trustees to prepare financial statements for each financial year. Under that law the Iruslees have elected to prepare the financial slalemenls in accordance V￿th United Kingdom Generally Accepted Accounting Practicè (United Kingdom AC￿u￿b.ng Standards and applicable 18w} including FRS 102, the Finaftcial Reporbng Standard applicable in the UK and Republic of Ireland. Under company law the trustees musl not approve the financial stslements unless they are satisfied that they give a tsue and fair view of the stsle of affairs of the charitable company and of the incoming resources and applicab.on of resources, including the income and expenditure. of the charitable company for that period. In preparing these financial st*ements, the trustees are required to.. select sultsble accounting policies and then apply them ￿nSIStentIy', obseNe the methods and principles in the Charities SORP IFRS 1021., makejudgments and accounting estimates that are reasonable and prudenl- state whether applKable UK Accounting Standards have been followed, subject to any material departures disdosed and explained in the financial stslemenls: prepare the financial statements on the going concem basis unless il IB inoppropriale to presume that the charitaNe company wll continue in business. The truslees are responslble for keeping adequate accounting records that are sufficient to show and explain the eharitable company's Iransaclion3 and disclose with reasonable accuracy 81 any time the finanaal position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsib￿ for safeguarding the assets of tha charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulartties. The Iruslees Conf￿ that.. BO far as each trustee is aware, there is no relevant audit inforrnalion of which the charitable company's auditor 18 unaware., and the irustees have taken all the steps that they ought to have taken as trustees in order lo make Ihernsefves aware of any relevant audtt infomialion and to estsblish that the charitable company's audiior is aw8re of that infomialion. The trustees are responsible for the maintenance and integrity of the corpclrate arKI financial infomialion included on the charitsble company's wèbsite. Legislation in the United Kingdom goveming the weparation and dissemrnation of financial statements may differ from legislation in olherjuri8di¢lions. Approved by the Board of Trustees of Leicester Grammar School Trust on 7 December 2020, including the Strategic Report contained therein, and signed on ils behalf by.. Mr S GasztowKz Chaimian of Trustees 13-

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES OF

LEICESTER GRAMMAR SCHOOL TRUST

Opinion

We have audited the financial statements of Leicester Grammar School Trust for the year ended 31 July 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 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.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could 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 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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES OF

LEICESTER GRAMMAR SCHOOL TRUST

Continued..

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Sewell (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditors London Date: 17 December 2020 EC4R 1AG

-15 -

LEICESTER GRAMMAR SCHOOL TRUST

STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure account)

FOR THE YEAR ENDED 31 JULY 2020

Notes
INCOME FROM:
Charitable Activities
Tuition fees
2
Exam registration fees
Canteen receipts
Bus fares
Sundry income
Other trading activities
Investment income
3
Bank and other interest
4
Voluntary income
5
Other
Total income
EXPENDITURE ON:
Charitable Activities
Schools operations
Total expenditure
6
NET INCOME/(EXPENDITURE)
BEFORE INVESTMENT GAINS
(Losses)/gains on investments
NET MOVEMENT IN FUNDS
Fund balances at 1 August 2019
FUND BALANCES at 31 JULY 2020		 Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
2020
2019
£
£
£
£
£
15,608,314
-
-
15,608,314
15,777,218
49,373
-
-
49,373
43,899
430,157
-
-
430,157
582,624
139,792
-
-
139,792
199,721
100,081
-
-
100,081
143,402
4,892
-
2,547
7,439
7,238
12,797
-
16,172
28,969
26,532
358,711
33,942
-
392,653
86,361
-
-
-
-
-
16,704,117
33,942
18,719
16,756,778
16,866,995
16,447,169
26,569
18,719
16,492,457
16,339,840
16,447,169
26,569
18,719
16,492,457
16,339,840
256,948
7,373
-
264,321
527,155
(8,910)
-
(1,668)
(10,578)
10,599
248,038
7,373
(1,668)
253,743
537,754
12,567,067
15,767
750,103
13,332,937
12,795,183
12,815,105
23,140
748,435
13,586,680
13,332,937

All amounts relate to continuing activities. All recognised gains and losses in the current and prior year are included in the statement of financial activities. The accompanying notes form part of these financial statements.

16

LEICESTER GRAMMAR SCHOOL TRUST BALANCE SHEET AT 31 JULY 2020 Notes 2020 2019 FIXED ASSETS Tangible 858ets Inv8Stments 10 29,231,301 607.563 30,109,753 29,838,864 .n8.309 CURRENT ASSETS stock of consumables Debtors Cash at bank and in hand 23,658 998,590 6.972.655 11.859 789,537 3,647,086 12 7,994,￿3 4,448.482 CREDITORS.. Amounts falllng due within one y&ar 13 2,243.70B NET CURRENT NSSETS 5,751,195 2,459,851 TOTAL ASS￿5 LESS CURRENT LIABILITIES 35.590,059 33.188.180 CREDITORS: Amounts falllng due after more than one year 14 122.003.3791 119,855,2rJi NET PSSETS 13586680 13332937 The fvnds of the ¢h8rity are repres8nt8d by: Endowment funds Irestrictedl Restricted funds Unrestiicled fund$ 18 19 748,435 23,140 12815,105 13586680 750,103 15,767 12,567.067 13 332 937 The accounts were issued and approved by the Board of Tm8ts88 on 7 Decembor 2020 and signed on their t4haM by: S. GA8ZTOWICZZ Company RegIstra￿on No. 01521751 . J. HOLLEY The accomp&nying iiotes form part of these finanaal statements 17

LEICESTER GRAMMAR SCHOOL TRUST

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 JULY 2020

2020 2020 2019 2019
Notes £ £ £ £
Net cash inflow from operations
Net cash provided by operating activities (i) 1,422,575 1,740,325
Cash flows from investing activities:
Payments for tangible fixed assets (340,008) (405,407)
Investment income and bank interest received 36,408 33,770
Purchase of investments (82,488) (40,537)
Proceeds from sale of investments 82,902 36,348
Net cash used in investing activities (303,186) (375,826)
Cash flow from financing activities
New borrowing in the year 4,000,000 -
Repayment of long term loan (1,793,820) (773,340)
Net cash (used) in financing activities 2,206,180 (773,340)
Change in cash and cash equivalents in the reporting period 3,325,569 591,159
Cash and cash equivalents at the beginning of the period 3,647,086 3,055,927
Cash and cash equivalents at the end of the
reporting period		 (ii) 6,972,655 3,647,086
(i) RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING
ACTIVITIES
2020 2019
£ £
Net movement in funds 253,743 537,754
Depreciation charges 1,217,598 1,185,180
(Increase)/decrease in stock (11,799) 634
(Increase) in debtors (209,053) (62,375)
Increase in creditors 197,916 123,501
Bank interest received (36,408) (33,770)
Losses/(Gains) on investments 10,578 (10,599)
Net cash inflow from operating activities 1,422,575 1,740,325
**(ii) ** Analysis of cash and cash equivalents
2020 2019
£ £
Cash 6,972,655 3,647,086
Total cash and cash equivalents 6,972,655 3,647,086

18

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES

The principal accounting policies, all of which have been applied consistently throughout the year and in the preceding year are:

a) Basis of Accounting

The financial statements have been prepared in accordance with 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 (FRS102) (Charities SORP 2015 (Second Edition, effective 1 January 2019)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Leicester Grammar School Trust meets the definition of a public benefit entity under Financial Reporting Standard (FRS) 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

b) Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, trustees are required to make judgement, estimates, and assumptions about the carrying 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 underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

In the view of the trustees, no assumptions concerning future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment of their carrying amounts in the next financial year.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School’s financial statements, except for the fact that it is no longer considered appropriate to accrue for teachers’ holiday pay or to recognise as a prepayment any time teachers have spent in preparing for the following academic year.

c) Going Concern

The accounts have been prepared on a going concern basis. The Leicester Grammar School Trust Board reviews the financial information for the charitable company and consider whether the charitable company is a going concern for a period of at least 12 months from the date of approval of the accounts. After making enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the Annual Report and Accounts.

d) School Fees Receivable and Similar Income

Fees receivable and other educational income are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances and other remissions granted by the school. Fees received in advance of education to be provided in future years under an Advance Fee Payments Scheme contract are included in liabilities until either taken to income in the term when used or refunded.

19

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES (continued)

e) Ancillary and Non-Ancillary Trading Income

Ancillary trading income represents amounts from activities to generate funds within the charitable objects for example, school refectory sales, coaches to and from school and school trips. Non-ancillary trading income represents amounts from activities not directly related to the charitable objects, for example lettings of school facilities. Income from these activities is recognised in the SOFA when the goods are sold or services provided.

f) Voluntary sources, Grants and Donations

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can reliably be quantified and the economic benefit is considered probable.

Voluntary income for general purposes is accounted for as unrestricted and is credited to the General Reserve. Where the donor or an appeal has imposed trust law restrictions, voluntary income is credited to the relevant restricted fund and incoming endowments are accounted for as permanent trust capital or expendable trust capital, according to whether the donor intends retention to be permanent or not. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the school in case of donated services or facilities.

g) Expenditure

Expenditure is accrued as soon as there is a contractual obligation or a liability is considered probable, discounted to present value for longer term liabilities. Expenditure is allocated to expense headings either on a direct cost basis or apportioned according to time spent. The irrecoverable element of VAT is included with the item of expense to which it relates. Bad debts are provided for in accordance with the trust bad debt policy. The cost of refurbishing and converting existing buildings is written-off in the year in which it is incurred except where the useful life has been extended.

h) Pension Costs

The trust participates in the Teachers' Pensions scheme, which is an unfunded government scheme, which provides benefits based on final pensionable pay. The funds of the scheme are separate from the trust, although the trust’s share of the schemes cannot be identified as the schemes are multi-employer schemes, and so the pension costs are accounted for as defined contribution schemes. The trust also contributes to other defined contribution pension schemes for non-teaching staff.

i) Tangible Fixed Assets and Depreciation

In accordance with Section 35.10 (d) of FRS102, Leicester Grammar School has elected to use the carrying value of any of the above freehold land and buildings previously carried at a valuation, as their deemed cost at the date of transition to FRS102, 1 August 2014.

Tangible fixed assets are stated at cost less depreciation.

Where tangible fixed assets have been acquired with the aid of specific grants they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund (in the statement of financial activities and carried forward in the balance sheet). The depreciation on such assets is charged in the statement of financial activities over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

20

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

1. ACCOUNTING POLICIES (continued)

Depreciation is provided at rates calculated to write off the cost, less estimated residual value of each asset based on current market prices, over its expected useful life, as follows:

Freehold land is not depreciated Freehold Buildings - 2% to 20% per annum on cost Computers and equipment - 25% on cost Fixtures and fittings - 12.5% to 33% on cost

Leicester Grammar School Trust exercises judgement in selection of appropriate rates for depreciation of fixed assets, and for matters of impairment.

j) Financial Instruments

Leicester Grammar School Trust 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

k) Securities investments and Fees in Advance

Securities investments and Fees in Advance are carried at fair value, which is deemed to be market value as at the balance sheet date.

Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate fund according to the ‘ownership’ of the underlying assets. Realised gains and losses are the difference between sales proceeds and opening market value where the investment was held at the beginning of the year, or sales proceeds less cost of purchase where the investment was acquired in the year. Uninvested cash is the balance of liquid cash, held as an investment, which has not been invested in securities.

l) Stocks

Stock of goods held for resale are valued at the lower of cost and net realisable value.

m) Leasing Commitments

Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over their useful lives or the period of the lease whichever is the shorter. The interest element of the obligations is charged to the SOFA over the period of the lease. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the SOFA on a straight line basis over the lease term. Lease incentives are accounted for over the lease term on a straight-line basis.

n) Fund Accounts

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity. Endowment funds are further sub-divided into permanent and expendable, where required by the terms of the trust.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and have not been designated for other purposes.

o) Taxation

Leicester Grammar School Trust is a registered charity and as such is exempt from income tax and corporation tax under the provisions of Section 478 of the Corporation Tax Act 2010. There is a similar exemption for VAT, which is included in expenditure or in the cost of assets as appropriate.

21

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 2 FEES RECEIVEABLE (Unrestricted funds)

Fees receiveable consists of
Gross fees
Less: Bursaries and awards
Add back: Bursaries fundraised externally		 2020
2019
£
£
16,595,445
16,716,407
(1,014,101)
(977,484)
26,970
38,295
15,608,314
15,777,218

Total bursaries and awards

Leicester Grammar School Trust makes awards to individual families to support schooling.

From Unrestricted Funds:
Bursaries
Scholarships and awards
Prizes and leaving awards
INVESTMENTS - INVESTMENT INCOME
Unrestricted
funds
£
Securities investment income
Equities
4,892
Fixed Interest
-
4,892
PRIOR YEAR
Unrestricted
funds
£
Securities investment income
Equities
4,760
Fixed Interest
-
4,760		 2020
£
854,170
159,931
-
1,014,101
Restricted
funds
£
-
-
-
Restricted
funds
£
-
-
-		 2019
£
793,956
183,528
-
977,484
Endowed
funds
£
796
1,751
2,547
Endowed
funds
£
775
1,703
2,478		 Total
2020
£
5,688
1,751
7,439
Total
2019
£
5,535
1,703
7,238

Note 3 INVESTMENTS - INVESTMENT INCOME

22

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 4 INVESTMENTS - BANK AND OTHER INTEREST

Bank interest
Other interest
PRIOR YEAR
Bank interest
Other interest		 Unrestricted
funds
£
2,018
10,779
12,797
Unrestricted
funds
£
3,359
8,479
11,838		 Restricted
funds
£
-
-
-
Restricted
funds
£
1,000
-
1,000		 Endowed
funds
£
16,172
-
16,172
Endowed
funds
£
13,694
-
13,694		 Total
2020
£
18,190
10,779
28,969
Total
2019
£
18,053
8,479
26,532

Note 5 VOLUNTARY SOURCES - GRANTS AND DONATIONS

Donations from:
LGS Enterprises
Small sundry donations
PRIOR YEAR
Donations from:
LGS Enterprises
Small sundry donations
Coronavirus Job Retention
Scheme grant		 Unrestricted
funds
£
-
355,411
3,300
358,711
Unrestricted
funds
£
-
1,300
1,300		 Restricted
funds
£
13,016
-
20,926
33,942
Restricted
funds
£
80,000
5,061
85,061		 Endowed
funds
£
-
-
-
-
Endowed
funds
£
-
-
-		 Total
2020
£
13,016
355,411
24,226
392,653
Total
2019
£
80,000
6,361
86,361

23

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 6 ANALYSIS OF EXPENDITURE

a) Total expenditure
Staff costs
Depreciation
(note 7)
(note 10)
£
£
Charitable expenditure
Teaching
8,429,440
964,122
Welfare
689,747
78,890
Premises
394,385
45,109
1,132,044
129,477
Total expenditure
10,645,616
1,217,598
Support costs are allocated on
b) Governance included in support costs
Remuneration paid to auditor for audit services
Remuneration paid to auditor for non-audit services
Trustees' training expenses
School adminstration and
governance		 Support
Total
Costs
2020
£
£
3,665,540
13,059,102
299,936
1,068,573
171,498
610,992
492,269
1,753,790
4,629,243
16,492,457
2020
2019
£
£
13,800
12,366
3,390
2,220
-
5,707
17,190
20,293

Leicester Grammar School Trust reimburses trustees for out of pocket expenses including travel subsistence and accomodation, where a claim is made. In 2020 no expenses were reimbursed to the trustees (2019: 2 trustees were reimbursed expenses of £314).

PRIOR YEAR
Charitable expenditure
Teaching
Welfare
Premises
Total expenditure
School adminstration and
governance		 Staff costs
£
7,684,564
628,797
359,534
1,032,010
9,704,905		 Depreciation
£
938,453
76,790
43,907
126,030
1,185,180		 Support
Total
Costs
2019
£
£
4,315,240
12,938,257
353,099
1,058,686
201,895
605,336
579,521
1,737,561
5,449,755
16,339,840

24

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 7 STAFF COSTS

The aggregate payroll costs for the year were:
Wages and salaries
Social security costs
Pension costs		 2020
2019
£
£
8,307,410
7,866,716
816,063
790,538
1,522,144
1,047,651
10,645,616
9,704,906

None of the trustees received remuneration, reimbursement of expenses or other benefits from Leicester Grammar School Trust or from any connected body.

2020
£
906,984
The number of higher paid employees whose annual emoluments were £60,000
or more was:
2020
No
£60,001 - £70,000
2
£70,001 - £80,000
1
£80,001 - £90,000
1
£120,001 - £130,000
1
£150,001 - £160,000
1
2020
No
Teaching
154
Office and non-teaching staff
106
260
The average number of employees during the year were:
Total amount of employee benefits (including employer pension
contributions) of key management personnel		 2019
£
796,591
2019
No
1
2
1
-
-
2019
No
150
103
253

Note 8 TRUSTEES

None of the trustees (or any persons connected with them) received any remuneration during the year.

There were no other related party transactions during the year.

25

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 9 TAXATION

The Trust is a registered charity and therefore no liability to taxation arises on its charitable activities.

Note 10 TANGIBLE FIXED ASSETS

Cost
At 1 August 2019
Additions
Disposals
At 31 July 2020
Depreciation
At 1 August 2019
Charge for the year
Disposals
At 31 July 2020
Net Book Value
At 31 July 2020
At 31 July 2019		 Freehold
Furniture
Computers
Land and
and
and
Buildings
Fittings
Equipment
Total
£
£
£
£
36,448,331
1,203,527
1,596,830
39,248,688
85,450
14,020
240,538
340,008
-
(50,437)
(39,093)
(89,530)
36,533,781
1,167,110
1,798,275
39,499,166
7,080,883
883,127
1,174,925
9,138,935
889,670
106,758
221,170
1,217,598
-
(50,437)
(38,231)
(88,668)
7,970,553
939,448
1,357,864
10,267,865
28,563,228
227,662
440,411
29,231,301
29,367,448
320,400
421,905
30,109,753

All assets are used for charitable purposes.

26

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 11 FIXED ASSETS INVESTMENTS

Securities Investments (11a)
Investment property (11b)
Total investments at 31 July 2020
Note 11a
Securities Investments
At 1 August 2018
Additions at cost
Disposal proceeds
Realised (loss)
Unrealised (loss)/gain
Investment in subsidiaries
Securities investments at 31 July 2020
Investments comprise:
Listed investments
Fixed interest
Equities - UK
Equities - overseas
Property
Other Investments
Cash
Investment in subsidiary
Securities investments at 31 July 2020		 2020
£
357,563
250,000
607,563
2020
£
368,555
82,487
(82,902)
(4,978)
(5,600)
357,562
1
357,563
52,403
103,489
168,380
8,787
10,097
14,406
357,562
1
357,563		 2019
£
368,556
250,000
618,556
2019
£
353,768
40,536
(36,348)
(792)
11,391
368,555
1
368,556
58,236
124,446
157,987
8,895
9,923
9,068
368,555
1
368,556

27

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 11a FIXED ASSET INVESTMENTS (continued)

Leicester Grammar School Trust owns 100% of the ordinary share capital of LGS Enterprises Limited a company registered in England and Wales. The principal activites of LGS Enterprises Limited are the hiring out of the School facilities and the running of the café. It is intended that profits made by the company will be donated to the Trust unless required for the furtherance of LGS Enterprise Limited's own trading activities.

In the year to 31 July 2020 LGS Enterprises Limited made a gift-aid donation of £13,016 (2019: £80,000) and had capital and reserves of £5,193 (2019: £3,733).

The Trustees provided an initial working capital loan to LGS Enterprises Limited to cover essential set-tup costs and have advanced a further loan to finance the construction of the new café. Loans are secured on the assets of that company. The Trustees have reviewed the financial forecast of the company for futher years and are satisfied that it is a going concern and that it is expected to generate a profit before donations during 2020/21 and thereafter.

Consolidated accounts have not been prepared on the grounds of materiality.

Note 11b INVESTMENT PROPERTY

Valuation at 1 August 2019
Valuation at 31 July 2020		 2020
£
250,000
250,000		 2019
£
250,000
250,000

Investment properties consist of the Lodge/Gatehouse property at Stoneygate School held for investment purposes and which are not used in the Trust's own activities, primarily a residential house which is let out on the open market. Leicester Grammar School Trust is responsible for improvements and maintenance of the properties.

A formal valuation of the properties was prepared by Mr Richard Stamp MRICS of Pinders Professional & Consultancy Services Limited as 4 March 2016. The Trustees have assessed and agreed the valuation of the property in 2020.

28

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 12 DEBTORS

2020
£
Trade debtors
467,639
Amounts owed by subsidiary company
207,508
Prepayments and accrued income
323,443
998,590
Note 13
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
2020
£
Bank loan
945,175
Trade creditors
691,743
Deposits
52,786
Taxation and social security
208,725
Accruals and deferred income
269,060
2,167,489
Advance fees (see note 15)
76,219
2,243,708
The bank loan is secured by a debenture over the assets of the charity.
Note 14
CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR
2020
£
Bank loan
21,540,915
Deposits
421,495
Advance fees (see note 15)
40,969
22,003,379
Loan maturity analysis
Repayable within
1-2 years
1,011,175
2-5 years
9,769,112
Over 5 years
10,760,628
21,540,915		 2020
£
467,639
207,508
323,443
998,590
2020
£
945,175
691,743
52,786
208,725
269,060		 2019
£
297,168
180,169
312,200
789,537
2019
£
804,450
628,384
46,581
205,048
196,768
1,881,231
107,400
1,988,631
2019
£
19,476,323
378,900
-
19,855,223
863,161
3,016,038
15,597,124
19,476,323

29

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (continued)

The company has two bank loans. These are secured by a debenture over the assets of the charity. The original loan is repayable in equal quarterly instalments. Interest is payable at LIBOR plus an agreed percentage up to a maxmium of 7.77% until January 2025 and thereafter at LIBOR plus 2.55%.

The other loan is repayable in monthly instalments. Interest is payable at bank base rate plus 2.95%.

During the year a new loan was taken out under the Coronavirus Business Interruption Loan scheme (CBILs). The loan is interest-free for the first year and has a repayment period of six years commencing from the beginning of the second year. Interest is payable at bank base rate plus 2.34%.

Note 15 ADVANCE FEE PAYMENTS

Parents may enter into an agreement to pay the school the equivalent of up to seven years tuition fees in advance. The money may be returned subject to specific conditions on the receipt of one term's notice. Assuming pupils will remain in the school, advance fees will be applied as follows:

Within 1 year 2020
2019
£
£
76,219
107,400
76,219
107,400

The balance represents the accrued liability under the contracts. The movements during the year were:

Balance at 1 August 2019
Fees received in advance
Amounts utilised in payment of fees
Balance at 31 July 2020		 £
107,400
-
(31,181)
76,219		 £
89,142
80,310
(62,052)
107,400

Note 16 SHARE CAPITAL

The company is limited by guarantee and does not have any share capital. The liability of the members of the Trust is limited to £1 each.

30

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 17 FINANCIAL COMMITMENTS

At 31 July 2020 the charity had total commitments under non-cancellable operating leases for plant and equipment as follows:

Operating lease expenditure falling due within:
One year
One to two years
Two to five years		 2020
2019
£
£
103,577
53,272
12,649
28,879
6,105
65,183
122,331
147,334

Note 18 ENDOWMENT FUNDS

Bursary Funds:
Edward Smith Fund
Mrs M E Smith Fund
Parent donations
Bishop Mort fund
The Hon Lady A Brooks
Edith Murphy Foundation
John Higginbothan Fund
Telereal Trillium Fund
Margaret Float Travel Fund
Margaret Float Travel Cash		 Balance
Income
Expenditure Investment
Balance
1 August
gains/
31 July
2019
(loss)
2020
£
£
£
£
£
24,776
1,218
(1,218)
(467)
24,309
11,428
1,405
(1,405)
-
11,428
4,574
92
(92)
-
4,574
10,000
200
(200)
-
10,000
38,859
1,732
(1,732)
(617)
38,242
10,000
200
(200)
-
10,000
18,000
360
(360)
-
18,000
600,000
12,000
(12,000)
-
600,000
30,456
1,512
(1,512)
(584)
29,872
2,010
-
-
-
2,010
Movement in Resources
750,103
18,719
(18,719)
(1,668)
748,435

Bursary funds are established to provide means tested bursaries to enable pupils to attend the school who would not otherwise be able to.

Incoming resources during the year were cash receipts from donors and interest/investment income received. Gains during the year were due to the increasing value of investments.

31

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 18 ENDOWMENT FUNDS - PRIOR YEAR

DOWMENT FUNDS - PRIOR YEAR
Bursary Funds:
Edward Smith Fund
Mrs M E Smith Fund
Parent donations
Bishop Mort fund
The Hon Lady A Brooks
Edith Murphy Foundation
John Higginbothan Fund
Telereal Trillium Fund
Margaret Float Travel Fund
Margaret Float Travel Cash		 Balance
Income
Expenditure Investment
Balance
1 August
gains/
31 July
2018
2019
£
£
£
£
£
23,631
505
(505)
1,145
24,776
11,428
1,405
(1,405)
-
11,428
4,574
91
(91)
-
4,574
10,000
200
(200)
-
10,000
37,343
790
(790)
1,516
38,859
10,000
200
(200)
-
10,000
18,000
360
(360)
-
18,000
600,000
12,000
(12,000)
-
600,000
29,049
621
(621)
1,407
30,456
2,010
-
-
-
2,010
Movement in Resources
746,035
16,172
(16,172)
4,068
750,103

32

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 19 RESTRICTED FUNDS

Vestments
Chapel Fund
Music bursary
Music equipment
Neville Hall Travel Fund
Hall art project
Other small prize fund
Shelter Fund
Dowlings Fund
COVID19 donations
General Bursaries Fund		 At
At
1 August '19
Income
Expenditure
Transfers
31 July '20
£
£
£
£
£
61
-
-
-
61
205
-
-
-
205
46
-
(46)
-
-
237
-
(237)
-
-
4,439
-
(345)
-
4,094
3,500
-
(3,500)
-
-
7,279
-
0
-
7,279
-
4,000
0
-
4,000
-
500
(500)
-
-
-
16,426
(8,925)
7,501
-
13,016
(13,016)
-
-
15,767
33,942
(26,569)
-
23,140

During the year the above restricted donations were received and have been allocated to specific funds in accordance with the donors' intentions.

Where funds have been spent on capital items in the current and previous years, these have been released to unrestricted funds as there are no ongoing restrictions as to the use of these funds.

Other small prize funds comprise 22 individual funds, which are established to provide a school prize, annually, out of income.

RESTRICTED FUNDS - PRIOR YEAR

Vestments
Chapel Fund
Music bursary
Music equipment
Tanzania Link School
Neville Hall Travel Fund
Hall art project
Other small prize fund
Fire Pit Shelter
General Bursaries Fund		 At
At
1 August '18
Income
Expenditure
Transfers
31 July '19
£
£
£
£
£
-
61
-
-
61
205
-
-
-
205
46
-
-
-
46
2,329
-
(2,092)
-
237
-
-
-
-
-
4,439
-
-
-
4,439
2,500
1,000
-
-
3,500
6,279
1,000
-
-
7,279
-
4,000
(4,000)
-
-
-
80,000
(80,000)
-
-
15,798
86,061
(86,092)
-
15,767

33

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 20 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Endowment funds
Restricted funds
Unrestricted funds
Total funds		 Tangible
Other
Total
Fixed assets
Investments
Net liabilities
2020
£
£
£
£
656,012
92,423
-
748,435
-
-
23,140
23,140
28,575,289
515,140
(16,275,324)
12,815,105
29,231,301
607,563
(16,252,184)
13,586,680

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR

Endowment funds
Restricted funds
Unrestricted funds
Total funds		 Tangible
Other
Total
Fixed assets
Investments
Net liabilities
2019
£
£
£
£
656,012
94,091
-
750,103
-
-
15,767
15,767
29,453,741
524,465
(17,411,139)
12,567,067
30,109,753
618,556
(17,395,372)
13,332,937

34

LEICESTER GRAMMAR SCHOOL TRUST

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2020

Note 21 PENSION COMMITMENTS

Teachers' Pension Scheme

The School participates in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,424,082 (2019: £951,986) and at the year-end £121,938 (2019: £132,594) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

35