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2023-07-31-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 2023

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 Auditors’ Report to the Board of Trustees 14 - 17
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Notes to the Accounts 21 - 31

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 Mr M R Bulsara (appointed 12 October 2022) Mrs J Burns (Vice chair, Academic) Professor D Cartmell (resigned 5 July 2023) Mr S Gasztowicz (Chairman) Mr D C Green Dr S E Hadley Mr M J Holley (Vice chair, Financial) Mr N J M Imlach Dr D I Khoosal Mrs K Law Mr A P M Osiatynski Dr R S P Saigal (appointed 12 October 2022) Professor J M Saker The Ven R V Worsfold

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 The Ven R V Worsfold

Finance and General Purposes Committee:

Mr M J Holley (committee Chairman) Mrs E M Bailey Mr M R Bulsara (appointed 12 October 2022) Mr S Gasztowicz Mr D C Green Mr N J M Imlach

Bursaries, Scholarships and Public Benefit Sub-Committee:

Mrs E M Bailey (sub-committee Chairman) Professor D Cartmell (resigned 5 July 2023)

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

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LEICESTER GRAMMAR SCHOOL TRUST

Legal and administrative information cont.

Salaries Review Committee:

Mr S Gasztowicz (committee Chairman) Mrs J Burns Mr M J Holley

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 S V Ashworth Jones Headmistress of LGS Stoneygate: Mrs C McCullough (appointed 1 September 2023); Headmaster: Mr N Price (appointed 1 September 2022; resigned 31 August 2023); Mr J Dobson (resigned 31 August 2022)

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)

LGS Stoneygate 6 London Road Great Glen Leicester LE8 9DT

Websites: www.leicestergrammar.org.uk www.lgs-stoneygate.org.uk

Auditors

Moore Kingston Smith 6[th] Floor 9 Appold Street London EC2A 2AP

Bankers

NatWest 1 Granby Street Leicester LE1 9GT

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

The Trustees present their report and financial statements for the year ended 31 July 2023 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 LGS Stoneygate.

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 endeavours 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. A skills audit is performed to identify individual training needs of Trustees 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 at least four times each year.

The Education Committee 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 certain 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 Bursaries, Scholarships and Public Benefit Sub-Committee meets to review applications and policy in detail at least twice each year.

The Safeguarding and Well-being Committee meets once per term. The committee reviews and monitors policies and procedures related to safeguarding and the well-being of pupils at all three Schools.

The Health and Safety Committee meets once per term and reviews health and safety policies and procedures at all three 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 2023

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 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 LGS Stoneygate, and the 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 maintenance of academic progress, underpinned by individual pastoral care and a strong sense of community, has been a key focus. Academic excellence is complemented by an emphasis on sport, music, drama and co-curricular activities, 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 2022-23 was to maintain and build pupil numbers and to return to the full scope of pre COVID-19 pandemic operations across the three schools.

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 worked with senior leaders to ensure that pupils built on their good academic progress during the pandemic and that examination candidates were therefore very well prepared for final assessment. There has been an increased focus on teaching and learning strategies, and a new Sixth Form programme (Aspire) introduced in September 2020 has resulted in more external interest than ever. Further enhancements to proactive wellbeing strategies have supported the happiness and success of our school communities.

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 raise the profile of the schools and to extend outreach and partnership activities in order to attract applications from able candidates, regardless of financial means.

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

The Trust continues to foster links with the local community, not only by making its facilities available to local schools, groups and organisations but also through an increase in outreach and partnership activity.

Principal Activities of the Year

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

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 879 (2021-22: 851) pupils and Leicester Grammar Junior School averaged 418 (2021-22: 394) pupils. Both schools showed strong increases in pupil numbers and 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 averaged 227 (2021-22: 204) pupils. The school offers high-quality education with a distinctive ethos, supported by attentive governance and management provided by the Trust.

The welcome increase in pupil numbers at Stoneygate resulted from clarification and redefinition of the senior school curriculum and more intensive admissions activity and marketing. It is the intention of Trustees to increase the pupil roll further and, following a review, the school was re-branded from September 2021 as LGS Stoneygate. Trustees have plans to invest in the school, with a new multipurpose hall a key priority.

The Trust has continued to manage its finances carefully over the last year, including accelerating the repayment of the Coronavirus Business Interruption Loan Scheme (CBILs) funding borrowed in June 2020. A surplus commensurate with the need to maintain investment in our pupils’ education was achieved.

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

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

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.

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 LGS Stoneygate 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.

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 highlighted in advertising campaigns. 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 Finance and General Purposes Committee: 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.

Volunteers

Old Leicestrians, Friends of Leicester Grammar School, Friends of Leicester Grammar Junior School and the Friends of LGS Stoneygate 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 2023

STRATEGIC REPORT Review of Achievements and Performance for the Year

Operational Performance of the schools

The Grammar School further enhanced its high national academic standing in the 2023 public examinations. At GCSE level, 70.4% of results were graded between 7 and 9. At 'A' level, an outstanding 91.3% of grades were at A - B, and 70.4% at A/A grade; this was achieved in a return to pre-pandemic standards and was therefore a school record. Nine students met their offers for Cambridge or Oxford.

LGS Stoneygate recorded its fourth set of GCSE results in 2022-23, with 96% of all grades at 4 or above and 100% at grade 4 or above in Maths and English.

During the year ended 31 July 2023, the value of means tested bursaries awarded to pupils totalled £763,000 (2021-22 £789,000). This figure included bursaries worth £28,000 (2021-22 £54,000) funded by external benefactors. The value of means tested bursaries represented 3.6% of the gross fee income of the Trust (2021-22: 4.0%).

During the year, 9 pupils received a 100% bursary (2021-22: 11 pupils). A further 34 pupils received bursaries of between 80% and 99% of fees (2021-22: 33 pupils).

Further awards totalling £100,000 (2021-22: £97,000) were made to pupils at Leicester Grammar School Trust 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 proportionate 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.

Public benefit – Contribution to the community

In 2022-23 the Trust continued to contribute to the local and wider community and the schools provided the following activities:

Charitable projects, examples include:

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 2023

Community service, examples include:

Facilities, Music and Sport for the Community, although impacted in the year owing to Covid 19 restrictions, examples include:

Financial Review and Results for the Year

The Trust recorded a surplus of £1,617,628 (2021-22 £1,245,234) during the year. The Surplus achieved is considered satisfactory for the Trust to enable investment and efficiency for repaying debt. Total income increased by £2,028,901, from £19,395,643 to £21,424,544.

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 £385,874 (2021-22: £390,246) of investment assets held within an investment portfolio managed by Brewin Dolphin. The Finance and General Purposes Committee is 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.

The Trust also owns an investment property which was revalued during the previous year at £280,000 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 gain on investments of £2,611 (2021-22: £1,757), plus bank and other interest receivable of £108,823 (2021-22: £38,973) and a further £6,617 of gains on investments (2021-22: £5,303).

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 and reviewed by the Finance & General Purposes Committee.

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

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

Key controls used by the charity include:

External financial risks, relating to potential adverse changes to tax legislation or to the treatment of charities as noted above, are in danger of crystallising in the short-term for the Trust and the independent sector as a whole. It is therefore particularly important for the Trust to manage its finances prudently to maintain an appropriate level of surplus, enabling flexibility to mitigate these risks whilst still allowing investment to support and fulfil our educational aims.

Through the risk management processes established for the Trust, the Trustees are satisfied that the major risks identified have been, and are being, 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 fundraising 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 enables 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 (cash balances) at all times. The value of cash and investments held at 31 July 2023 was £4.4m (2022: £6.8m).

At the end of the year the Trust’s total reserves were £17,658,616 (2022: £16,040,988), including £16,893,258 (2022: £15,272,787) of unrestricted funds, £8,614 (2022: £12,139) of restricted funds and £756,744 (2022: £756,062) of endowment funds. The Trust’s total reserves include £27,462,654 (2022: £27,760,082) which could only be realised by disposing of tangible fixed assets.

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

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 30 (2022: 32). The percentages of payments made within the year which were paid: within 30 days was 51% (2022: 49%); between 31 and 60 days was 42% (2022: 45%); and after 61 days or longer was 7% (2022: 6%). The percentage of payments due within the reporting period which were not paid within agreed terms was 13% (2022: 12%).

Gender pay gap reporting

The Trust’s gap for mean hourly rates of pay at 5 April 2023 was 12.2% (2022: 13.0%) in favour of male employees. The median hourly pay gap at 5 April 2023 was 9.0% (2022: 11.6%). 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

Carbon Report - UK Greenhouse gas emissions and energy-use data 2022/23 2021/22
Energy consumption used to calculate emissions (kWh) 3,409,540 3,775,606
Gas
O		 2,193,154
2,516,447		 2,516,447
Electricity
O		 1,216,386
1,259,159		 1,259,159
Scope 1 emissions in metric tonnes CO2e
Gas consumption 479.28 555.56 479.28 555.56
Owned transport – mini-buses 44.48 29.63
Total Scope 1 523.76 585.19
Scope 2 emissions in metric tonnes CO2e
Purchased electricity 235.22 293.56
Scope 3 emissions in metric tonnes CO2e
Business travel in employee owned vehicles was insignificant in the year.
Total gross emissions in metric tonnes CO2e 758.98 878.75
Intensity ratio Tonnes CO2e per pupil 0.50 0.61

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2022 UK Government’s Conversion Factors for the Company Reporting.

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per pupil, the recommended ratio for the sector.

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.

Subsidiary Company

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.

Strategic Planning

The Trust Development Plan was extended, owing to the pandemic, for a fourth year ending 31 July 2024 and affirms the main aims of the Trust as being:

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

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

The Trust remains committed to maintaining its position as a leading provider amongst coeducational day schools.

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:

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES (incorporating the Strategic Report) FOR THE YEAR ENDED 31 JULY 2023

Leicester Grammar Junior School:

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

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 wellbeing)

Appeal and outreach (Marketing, admissions, outreach, fundraising and communications)

Environment and provision (Resources and facilities)

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LEICESTER GRAMMAR SCHOOL TRUST REPORT OF THE BOARD OF TRUSTEES incor oratin the Strate FOR THE YEAR ENDED 31 JULY 2023 IcRe ort Trustees. Rès onsibilities Statemen The Trustees (who are also directors of Leicester Grammar School for the purposes of company lawl are responsible foT preparing the Report of the Board of Trustees and the financial slalemenls In accordance with applicable law and regulations. Company law requires the Iruslees lo prepare financial statements for each financial year. Under that law the trustees have elected lo prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice Iuniled Kingdom Accounting Standards and applicable lawl including FRS 102, the Finaneial Reporting 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 true and fair view of the slate of affair5 of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charrtable company for that period. In preparing these financial slalements, the Iruslees are required to.. Seled suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charrties SORP IFRS 1021., make judgments and accounting eslimales that are reasonable and prudent., slate whether applicable UK Accounting Standards have been fr)Ilowed. subjed lo any material departures disclosed and explained in the financial statements", prepare the financial statements on the going Concern basis unless (( is inappropriate lo presume that the charitable company will continue in business. The Iruslees are responsible for keeping adequate accounting records that are sufficient lo show and explain the chari18ble company's transactions and disclose with reasonable accuracy al any time the financial p051tion of thè company and enable them lo ensure that the financial slalemenls Compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The ITUStees confirm Ihal.. so far as each Iruslee is aware. there is no relevant audit information of which the charitable company's auditor is unaware., and the trustees have taken all the steps that they ought lo have taken as Iruslees in order to make themselves aware of any Televant audit information and lo establish that the charitable company's auditor is aware of that information. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the Board of Trustees of Leicester Grammar School Trust on 4 December 2023. including the Slrate9lC Report contained the￿In, and signed on its behalf by.. Mr S Gaszlowicz Chairman of Trustees 13

Leicester Grammar School Trust

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEICESTER GRAMMAR SCHOOL TRUST FOR THE YEAR ENDED 31 JULY 2023

Opinion

We have audited the financial statements of Leicester Grammar School Trust (‘the company’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained 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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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Leicester Grammar School Trust INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEICESTER GRAMMAR SCHOOL TRUST FOR THE YEAR ENDED 31 JULY 2023

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

Responsibilities of trustees

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

15

Leicester Grammar School Trust INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEICESTER GRAMMAR SCHOOL TRUST FOR THE YEAR ENDED 31 JULY 2023

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

16

Leicester Grammar School Trust

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF LEICESTER GRAMMAR SCHOOL TRUST FOR THE YEAR ENDED 31 JULY 2023

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kore nga Guida LUE. Jonathan Aikens (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

21 December 2023

6[th] Floor 9 Appold Street London EC2A 2AP

17

Leicester Grammar School Trust

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure statement) for the year ended 31 July 2023

Notes
INCOME FROM:
Charitable Activities
School fees
4
Other educational income
5
Investments
Investment Income
6
Voluntary sources
Grants and donations
7
Total income and endowments
EXPENDITURE ON:
Charitable activities
Schools operations
8
Total expenditure
8
Net operating income/(expenditure)
Net gains/(losses) on investments
Net income/(expenditure) and net movement in funds
Fund balances brought forward
Fund balances carried forward
17		 Unrestricted /
Designated
funds
£
19,960,278
1,290,233
92,890
3,000
21,346,401
19,728,733
19,728,733
1,617,668
2,803
1,620,471
15,272,787
16,893,258		 Restricted
funds
£
-
-
-
62,209
62,209
65,734
65,734
(3,525)
-
(3,525)
12,139
8,614		 Endowment
fund
£
-
-
15,934
-
15,934
15,060
15,060
874
(192)
682
756,062
756,744		 Total
2023
£
19,960,278
1,290,233
108,824
65,209
21,424,544
19,809,527
19,809,527
1,615,017
2,611
1,617,628
16,040,988
17,658,616		 Total
2022
£
(as restated)
18,173,785
1,147,892
44,276
29,690
19,395,643
18,152,166
18,152,166
1,243,477
1,757
1,245,234
14,795,754
16,040,988

The statement of financial activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The accompanying notes form part of these financial statements.

Page 18

Leicester Grammar School Trust BALANCE SHEET as at 31 Jul 2023 2023 2022 FIXED ASSETS Tanyible assets Investments 2Y.462.654 665 875 27.7eO.082 67Q 247 28,128,529 28.430.329 CURRENT ASSETS Storks Debtor5 CAsh at ty8nk in hand 7.583 1,Z54,633 J,976,922 14.745 6 397 281 .Z39,13B 7.521.872 CREDThORS. Armunls lalling dUe￿1th1n one year 13,642,643) 13.501.78SI NET CURRENT ASSETS 95 4.020.107 TOTAL ASSETS LESS CURRENT LIABILIMES 29.72S,024 32,450,436 CREDITORS- Al[￿u￿1¥ falhng due aftern)ore than oneyear 1$ {12,068A08} 116.409,4481 NET ASSETS 17,$58,616 15,040,98e FUPIDS Restnthd funds Unieskncted funds-general Enda￿entrufid 4,614 16,8gJ,ISB 756,744 15.272.787 756.062 17 t7,658,616 16.040.#8 Apwtyiao and authon8edforissuE by the Board of Trustees on4 Decernb2r2023 and s￿ned cn theif behaKby' Mrs Ga5*oMNP Chalrman of th• ￿r0 ¢ITrv$tO68 Mrbn J trk)iley Wice CA￿[￿an IFinanoaD of the Board ol Truslfes The aecompanying notes fijm) partol thfyse flnan¢i81 $Lgtettw Curnpany Mjmber. 01521751 Pag0 19

Leicester Grammar School Trust

CASHFLOW STATEMENT

for the year ended 31 July 2023

CASH FLOW STATEMENT
Net cash inflow from operating activities
Cash flows from investing activities:
Bank interest and investment income received
Purchase of investments
Proceeds from sale of investments
Payments to acquire fixed assets
Net cash outflow from investing activities
Financing:
Loans repaid
Interest paid
Net cash outflow from financing activities
Increase/(decrease) in cash
beginning of the reporting period
end of the reporting period
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES
Reconciliation of operating result to net cash inflow from
operating activities
Net movement in funds
Gains on investments
Depreciation
(Gains) on investment property
Bank interest and investment income received
Interest payable
Increase/(Decrease) in creditors
(Increase)/Decrease in debtors
(Increase)/Decrease in stocks
NET DEBT RECONCILLIATION
At 1 August
2022
Cashflows
£
£
Cash at bank and in hand
6,397,261
(2,420,339)
Bank loans falling due < 1 year
1,867,410
-
Bank loans falling due < 5 years
9,439,002
-
Bank loans falling due > 5 years
6,569,646
-
Cash and cash equivalents at the
Cash and cash equivalents at the		 2023
£		 2022
£
(as restated)
3,387,991
44,276
(69,171)
73,967
(557,097)
(508,025)
(2,676,697)
(1,281,530)
(3,958,227)
(1,078,261)
7,475,522
6,397,261
2022
£
(as restated)
3,863,110
108,824
(70,434)
77,417
(896,382)
(780,575)
(4,403,845)
(1,099,029)
(5,502,874)
(2,420,339)
6,397,261
3,976,922
2023
£
1,617,628
(2,611)
1,193,810
-
(108,824)
1,099,029
201,683
(144,767)
7,162
3,863,110		 1,245,234
28,243
1,179,589
(30,000)
(44,276)
1,281,530
175,351
(446,729)
(951)
3,387,991
Other non-
cash changes
£
-
71,468
(4,344,326)
(130,987)		 At 31 July
2023
£
3,976,922
1,938,878
5,094,676
6,438,659

Page 20

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

Leicester Grammar School Trust is a company limited by guarantee with registered number 01521751, incorporated and domiciled in England and Wales. Its registered office is London Road, Great Glen, Leicester, LE8 9FL.

2 ACCOUTING POLICIES

2.1 BASIS OF PREPARATION

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. Leicester Grammar School Trust meets the definition of a public benefit entity under Financial Reporting Standard (FRS) 102.

These financial statements are prepared on the going concern basis, under the historical cost convention as modified by the revaluation of investments and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been applied consistently throughout the year, are set out below.

2.2 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.

2.3 COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee, the guarantors at the present time being the Trustees, to the extent of £1 each.

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, scholarships 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.

2.5 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 statement of financial activities when the goods are sold or services provided.

2.6 GRANTS AND DONATIONS

2.7 FUND ACCOUNTING

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.

2.8 EXPENDITURE Expenditure is allocated to expense headings, which aggregate all costs relating to the category 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.

Governance costs comprise the costs of running the Trust, including strategic planning for its future development, external audit, and all other costs of complying with constitutional and statutory requirements.

Page 21

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

2.9 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.

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 - 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.

2.10 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at market value at the Balance Sheet date, unless market value cannot be measured reliably in which case it is measured at cost less impairment.

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.

Investments in subsidiaries are valued at cost less provision for impairment.

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in net gains/(losses) on investments in the Statement of Financial Activities.

2.11 STOCKS

Stocks are stated at the lower of cost or net realisable value.

2.12 PENSIONS

Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers’ Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme is administered by Capita Teachers’ Pensions on behalf of the Department for Education and Skills.

Costs include normal and supplementary contributions. The regular cost is the normal contribution, expressed as a percentage of salary of a teacher newly entering service, which would defray the cost of benefits payable in respect of that service. Variations from the regular pension cost are met by a supplementary contribution. This occurs if, as a result of the actuarial investigation, it is found that the accumulated liabilities for benefits to past and present teachers are not fully covered by normal contributions to be paid in the future and by the fund built up from past contributions. The normal and supplementary contributions are charged to the income and expenditure account in the year.

The school also pays contributions into a defined contribution scheme for Support staff. The assets of the Scheme are held separately from those of the School in an independently administered fund. The Pension Scheme charge represents contributions payable by the school in accordance with the rules of the Scheme.

2.13 LEASES AND HIRE PURCHASE CONTRACTS

Where assets are financed by finance leases and hire purchase agreements the assets are included in the Balance Sheet at cost less depreciation in accordance with the school’s normal accounting policy. The present value of future rentals is shown as a liability. The interest element of rental obligations is charged to the Statement of Financial Activities over the period of the lease in proportion to the balance of capital payments outstanding.

Rentals paid under operating leases are charged to the Statement of Financial Activities evenly over the period of the lease.

2.14 CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of 100 days or less.

Page 22

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

2.15 FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. Given the School only have basic financial instruments it is not considered necessary to disclose these separately in the financial statements.

2.16 EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense.

2.17 FOREIGN CURRENCY TRANSLATION

The charity's presentation currency is Pounds Sterling. Transactions occurring in foreign currency throughout the year have been translated using publicly available average exchange rates.

Monetary assets and liabilities are denominated in foreign currencies are translated into Sterling at the rates of exchange ruling at the balance sheet date. All foreign currency differences are recognised in expenditure.

3 KEY ESTIMATES & JUDGEMENTS

In the application of the accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements.

In the opinion of the trustees, no estimates and assumptions have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Page 23

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

4 FEE INCOME
The School’s activities are carried out within the UK.
The school's fee income comprised:
Gross fees
Less: Discounts, Scholarships and bursaries
Total bursaries and awards
Leicester Grammar School Trust makes awards to individual families to support schooling
From Unrestricted Funds:
Bursaries
Scholarships and awards
Other discounts
All fee income is unrestricted.
5 OTHER EDUCATIONAL INCOME
Extras and disbursements:
Canteen receipts, bus fares and after school care
Sundry income
All other educational income is unrestricted.
6 INVESTMENT INCOME
Interest received and other investment income		 2023
£
21,429,143
(1,468,865)
19,960,278
2023
£
735,406
99,777
633,682
1,468,865
2023
£
969,316
320,917
1,290,233
2023
£
108,824
108,824		 2022
£
(as restated)
19,575,189
(1,401,404)
18,173,785
2022
£
(as restated)
734,803
97,075
569,526
1,401,404
2022
£
(as restated)
868,192
279,700
1,147,892
2022
£
44,276
44,276

Included within the above is an amount of £15,934 (2022: £15,625) which relates to endowment income. All other investment income is unrestricted.

7 DONATIONS AND GRANTS

Donations and gifts from LGS Enterprise
Other donations		 2023
£
58,458
6,751
65,209		 2022
£
28,990
700
29,690

Included within the above is an amount of £62,209 (2022: £29,690) which relates to restricted income. All other donation and grant income is unrestricted.

Page 24

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

8 EXPENDITURE

Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration and governance
Total Charitable Expenditure
Total Expended		 £
10,045,631
821,993
470,002
1,349,091
12,686,717
12,686,717
Staff costs
(note 9)		 Other
£
3,285,620
619,033
1,263,903
760,444
5,929,000
5,929,000		 Depreciation
£
945,290
77,350
44,227
126,943
1,193,810
1,193,810		 Total
2023
£
14,276,541
1,518,376
1,778,132
2,236,478
19,809,527
19,809,527

(a) Charitable expenditure

Included within teaching costs is an amount of £7,166 (2022: £46,627) relating to restricted expenditure.

Charitable expenditure
Teaching
Welfare
Premises and Estates
Administration and governance
Total Charitable Expenditure
Total Expended
(b)
Other Governance Costs included within Administration Costs:
Auditors' remuneration
- Audit Fees
- Other Auditors remuneration
Legal and Professional Fees
(c)
Administration Costs
Staff costs
IT support and lease costs
Postage, stationery and telephones
Depreciation
Legal and Professional Fees
Other Administration Costs
NET INCOME FOR THE YEAR
Net income is stated after charging:
Depreciation of tangible fixed assets
Loan Interest
Operating lease rentals – other		 £
9,207,937
753,448
430,809
1,236,592
11,628,786
11,628,786
Staff costs
(note 9)		 Other
£
3,074,019
345,770
1,117,024
806,981
5,343,791
5,343,791		 Depreciation
£
934,026
76,428
43,700
125,435
1,179,589
1,179,589
2023
£
14,750
4,450
19,200
2023
£
1,349,091
283,352
198,686
126,943
123,559
135,647
2,217,278
2023
£
1,193,810
1,099,029
47,601		 Total
2022
£
(as restated)
13,215,982
1,175,646
1,591,531
2,169,007
18,152,166
18,152,166
2022
£
15,210
4,140
19,350
2022
£
1,236,592
180,766
164,261
125,435
88,161
354,443
2,149,657
2022
£
1,179,589
1,281,530
18,878

Page 25

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

9 STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Teaching
Office and non-teaching staff
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£130,001 - £140,000
£160,001 - £170,000
£170,001 - £180,000
The number of employees whose emoluments amounted to over £60,000 in the year was as follows:		 2023
£
9,915,189
999,935
1,771,593
12,686,717
2023
No.
161
121
282
2023
No.
3
2
1
1
-
1
8		 2022
£
9,085,225
905,784
1,637,777
11,628,786
2022
No.
158
111
269
2022
No.
4
2
-
1
1
-
8

Pension contributions for the year amounted to £161,516 (2022: £151,561) for the above employees.

Key management personnel consist of the senior management team. During the year, the total employee benefits (including pension and Employer National Insurance contributions) totalled £1,010,697 (2022: £951,365)

10 TRUSTEES REMUNERATION AND BENEFITS

There were no Trustees' remuneration, expenditure reimbursement or other benefits for the year ended 31 July 2023 nor for the year ended 31 July 2022.

11 PENSIONS

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 £1,634,563 (2022: £1,521,342) and at the year end £137,680 (2022: £126,050) 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.

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 following a public consultation in 2021 the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations were completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has indicated that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is 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.

The Trust also contributes to a defined contribution pension scheme for non-teaching staff. The pension charge for the year includes contributions payable to Standard Life of £137,030 (2022: £117,881) and at the year end £11,787 (2022: £10,789) was accrued in respect of contributions to this scheme.

Page 26

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

12 TANGIBLE FIXED ASSETS

Cost:
At 1 August 2022
Additions
Disposals
Transfer
At 31 July 2023
Depreciation:
At 1 August 2022
Charge for year
Disposals
Transfer
At 31 July 2023
Net book value:
At 31 July 2023
At 1 August 2022		 Freehold Land
& Buildings
£
36,790,181
425,819
(148,110)
-
37,067,890
9,711,902
867,354
(148,110)
-
10,431,146
26,636,744
27,078,279		 Furniture,
Fixtures &
Fittings
£
1,736,179
204,697
(136,955)
270,294
2,074,215
1,502,732
163,821
(136,955)
126,663
1,656,261
417,954
233,447		 Computers
and
Equipment
£
1,811,895
265,866
(374,815)
(270,294)
1,432,652
1,363,539
162,635
(374,815)
(126,663)
1,024,696
407,956
448,356		 Total
£
40,338,255
896,382
(659,880)
-
40,574,757
12,578,173
1,193,810
(659,880)
-
13,112,103
27,462,654
27,760,082

All assets are used for charitable purposes.

Transfers in the year relate to an adjustment to agree statutory accounts back to underlying fixed asset registers.

13 INVESTMENTS

Cost/valuation At 1 August 2022
Additions
Disposals
Gains/(Losses) arising from movements in valuations
Cost/valuation At 31 July 2023
UK fixed interest
UK equities
International equities
Property
Other investments		 Shares in group
undertakings
£
1
-
-
-
1
-
1
-
-
-
1		 Listed
investments
£
390,246		 Investment
Property
£
280,000
-
-
-
280,000
-
-
-
280,000
-
280,000		 2023
£
670,247
70,434
(78,989)
4,183
665,875
65,149
70,180
208,336
287,359
34,851
665,875		 2022
£
703,285
69,171
(73,967)
(28,242)
670,247
59,113
60,384
234,677
287,974
28,099
670,247

70,434
(78,989)
4,183
385,874
65,149
70,179
208,336
7,359
34,851
385,874

Investment gains shown on the Statement of Financial Activities of £2,611 (2022: £1,757) include unrealised gains on investments of £4,183 (2022: loss of £28,242) and realised losses on investment of £1,572 (2022: gain of £29,999).

Leicester Grammar School Trust owns 100% of the ordinary share capital of LGS Enterprises Limited a company registered in England and Wales with a registered office of Leicester Grammar School, London Road, Great Glen, Leicester, LE8 9FL. The principal activities 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.

For the year ended 31 July 2023 LGS Enterprises Limited made a gift-aid donation of £58,458 (2022: £28,990) and had capital and reserves of £59,121 (2022: £31,674).

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 café. Loans are secured on the assets of that company. The Trustees have reviewed the financial forecast of the company for further years and are satisfied that it is a going concern and that it is expected to generate a profit before donations during 2023/24 and thereafter. Consolidated accounts have not been prepared on the grounds of materiality.

Page 27

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

13 INVESTMENTS (continued)

Investment property
Valuation at 1 August 2022
Valuation at 31 July 2023		 2023
£
280,000
280,000		 2022
£
280,000
280,000

Investment properties consist of the Lodge/Gatehouse property at LGS Stoneygate 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 property was prepared by Mr Richard Chesterton of Newton Fallowell as 22 February 2022. The Trustees have assessed and agreed the valuation of the property in 2023.

14 DEBTORS

14 DEBTORS
Trade debtors
Prepayments and accrued income
Amount due from group undertaking
15 CREDITORS
Amounts falling due within one year:
Loans
Trade creditors
Taxation and social security costs
Fee Deposits
Fees in advance
Other creditors
Accruals and deferred income
Fee prepayment scheme due within one year:
Brought forwards
Released in year
Received in year
Carried forwards
16 CREDITORS DUE AFTER ONE YEAR
Amounts falling due after more than one year:
Bank loan
School fee deposits
Fees in advance
Loans due in:
In one year or less
Between one and two years
Between two and five years
After five years		 2023
£
456,898
468,073
329,662
1,254,633
2023
£
1,938,878
513,184
255,044
37,800
164,721
483,679
249,337
3,642,643
2023
£
91,831
(91,831)
164,721
164,721
2023
£
11,533,335
421,800
111,273
12,066,408
2023
£		 2022
£
348,801
502,802
258,263
1,109,866
2022
£
(as restated)
1,867,410
659,873
241,785
73,058
91,831
243,414
324,394
3,501,765
2022
£
152,848
91,831
(152,848)
91,831
2022
£
16,008,648
400,800
-
16,409,448
2022
£
1,938,878 1,867,410
1,867,410
7,571,592
6,569,646
1,245,112
3,849,564
6,438,659
13,472,213
17,876,058

Page 28

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

16 CREDITORS DUE AFTER ONE YEAR (continued)

The Trust has three bank loans secured by a debenture over the assets of the charity. The original loan is repayable in equal quarterly instalments. Interest is payable at 7.77% until January 2025 and thereafter at a SONIA rate plus 2.55%. The second loan is repayable in monthly instalments. Interest is payable at bank base rate plus 2.95%. The third loan was taken out under the Coronavirus Business Interruption Loan scheme (CBILs) in 2019-20. Interest is payable at bank base rate plus 2.34%.

Fees in advance due after one year:
Brought forwards
Released in the year
Received in year		 £
-
-
111,273
111,273		 £
-
-
-
-

Parents may enter into an agreement to pay the school a number of 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 released as they fall due.

17 STATEMENT OF FUNDS

Unrestricted funds:
General reserve
Restricted funds:
Vestments
Chapel Fund
Neville Hall Travel Fund
Other small prize fund
Singing Prize
LGJS Friends
St Nicks acoustic fundraiser
General Bursaries Fund
Total restricted
Endowment Bursary funds:
Edward Smith Fund
Mrs M E Smith Fund
Parent donations
Bishop Mort fund
The Hon Lady A Brooks
Edith Murphy Foundation
John Higginbotham Fund
Telereal Trillium Fund
Margaret Float Travel Fund
Margaret Float Travel Cash
Total endowment
Total funds		 £
15,272,787
61
205
4,094
7,279
500
-
-
-
12,139
26,559
11,428
4,574
10,000
41,222
10,000
18,000
600,000
32,638
1,641
756,062
16,040,988
At 1 August 2022		 Income
£
21,346,401
-
-
-
-
150
2,791
700
58,568
62,209
438
1,405
91
200
701
200
360
12,000
539
-
15,934
21,424,544		 Expenditure
£
(19,728,733)
-
-
-
(4,375)
-
(2,791)
-
(58,568)
(65,734)
(192)
(1,405)
(91)
(200)
(375)
(200)
(360)
(12,000)
(236)
-
(15,060)
(19,809,527)		 Gains/
(losses)
£
2,803
-
-
-
-
-
-
-
-
-
(54)
-
-
-
(72)
-
-
-
(67)
-
(192)
2,611		 £
16,893,258
61
205
4,094
2,904
650
-
700
-
8,614
26,751
11,428
4,574
10,000
41,476
10,000
18,000
600,000
32,874
1,641
756,744
17,658,616
At 31 July 2023

Page 29

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

17 STATEMENT OF FUNDS (Continued)

Unrestricted funds:
General reserve
Restricted funds:
Vestments
Chapel Fund
Neville Hall Travel Fund
Other small prize fund
Shelter Fund
COVID 19 donations
Organ Fund
Singing Prize
LOTTA (Table Tennis)
General Bursaries Fund
Total restricted
Endowment Bursary funds:
Edward Smith Fund
Mrs M E Smith Fund
Parent donations
Bishop Mort fund
The Hon Lady A Brooks
Edith Murphy Foundation
John Higginbotham Fund
Telereal Trillium Fund
Margaret Float Travel Fund
Margaret Float Travel Cash
Total endowment
Total funds		 £
14,003,161
61
205
4,094
7,279
4,000
3,599
9,588
250
-
-
29,076
28,554
11,428
4,574
10,000
43,862
10,000
18,000
600,000
35,089
2,010
763,517
14,795,754
At 1 August 2021		 Income
£
19,350,328
-
-
-
-
-
-
250
450
28,990
29,690
351
1,405
91
200
586
200
360
12,000
432
-
15,625
19,395,643		 Expenditure
£
(18,089,545)
-
-
-
-
(4,000)
(3,599)
(9,588)
(450)
(28,990)
(46,627)
(351)
(1,405)
(91)
(200)
(586)
(200)
(360)
(12,000)
(432)
(369)
(15,994)
(18,152,166)		 Gains/
(losses)
£
8,843
-
-
-
-
-
-
-
-
(1,995)
-
-
-
(2,640)
-
-
-
(2,451)
-
(7,086)
1,757		 £
15,272,787
61
205
4,094
7,279
-
-
-
500
-
-
12,139
26,559
11,428
4,574
10,000
41,222
10,000
18,000
600,000
32,638
1,641
756,062
16,040,988
At 31 July 2022

Restricted funds

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

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

General bursary support for pupils is provided by the Telereal Trillium Fund; The Hon Lady A Brooks fund; Mrs M E Smith Fund; Edith Murphy Foundation and parent donations.

Specific bursary support for pupils is provided by the Edward Smith Fund (pupils applying to year 7); Bishop Mort Fund (pupil hardship); John Higginbotham Fund (Music tuition); and Margaret Float Travel Fund/Cash (supporting sixth form students).

Page 30

Leicester Grammar School Trust

NOTES TO THE ACCOUNTS for the year ended 31 July 2023

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Long term liabilities
Total net assets		 Unrestricted
funds
£
27,462,654
565,648
4,574,007
(3,642,643)
(12,066,408)
16,893,258
Unrestricted
funds
£
27,760,082
569,828
6,854,090
(3,501,765)
(16,409,448)
15,272,787		 Restricted
funds
£
-
-
8,614
-
-
8,614
Restricted
funds
£
-
-
12,139
-
-
12,139		 Endowment
fund
£
-
100,227
656,517
-
-
756,744
Endowment
fund
£
-
100,419
655,643
-
-
756,062		 2023
Total
£
27,462,654
665,875
5,239,138
(3,642,643)
(12,066,408)
17,658,616
2022
Total
£
27,760,082
670,247
7,521,872
(3,501,765)
(16,409,448)
16,040,988

19 COMMITMENTS UNDER OPERATING LEASES

At 31 July 2023, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Due within one year
Due between two and five years
Due after more than five years		 2023
79,339
23,281
71,105
173,725		 2022
91,193
31,062
40,112
162,367

20 RELATED PARTIES

There were no related party transactions during the year (2022: none)

21 TAXATION

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

22 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.

23 PRIOR YEAR RESTATEMENT

Prior year figures for School fees, discounts and other educational income were restated to show the gross income received and gross discounts issued, these figures had been shown net in the prior year financial statements.

The net impact on gross fees was an increase of £526,928, bursaries and discounts increased by £569,526 and other educational income increased by £42,598. There was no overall impact on total income.

The prior year cashflow statement has also been restated to include the necessary adjustments to operating and financing activities in relation to interest paid. Net cashflow from operating activities and net cash outflow from financing activities both increased by £1,281,530. There was no overall impact on cash and cash equivalents.

Creditors has been restated in the prior year to split out other creditors from trade creditors, reducing trade creditors by £243,414. There was no overall impact on creditors.

Prior year figures for expenditure have been restated as the cost apportionment has been updated. Other teaching costs decreased by £1,151,656, other premises costs increased by £919,317 and other administration costs increased by £232,339. There was no overall impact on total expenditure.

Page 31