LANCASTER ROYAL GRAMMAR SCHOOL CHARITY FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Charity Number 526602 Lancaster Royal Grdmffl8r School Charity Flnancial Ststements For tho year ended 31 August 2020 Contents Page." Trustees report Independent Examiners. Report statement of Financlal Activitres Statement of Financial Position Notss to tho financial ststements 7-15 Lancaster Royal Grammar School Charlty Offlcers and Professlonal Advlsors Trustees Prof M Alexander Dr J Bentham Mr R B￿rge$S (Resigned Seplember 2020) Mr D H =ameron (Resigned SÉptember 2020) Mr A R Collinson Mr P Fitton Mr M Fishei Mrs E Lund Mr A Neal HHJ P Sycamore Headmaster DrCPy Admlnlstrator Mrs C Lodge Registered orrice East Road Lancaster LA13EF Indèpendent examlne RSM UK Tax and Accounb'ng Limited Bluthll House Brian Johnson Way Preston Lancashire PR2 SPE Bankers Yorkshire Bank 45 Penny Street Lancaster LA1 1UE Barclays Bank Pl Market Street Lancaster LA11HR National ￿estrninsIer Bank PIC 68 Churth Street Lancast LA11LN Solicltors Blackhurst Swainson Goodier 3 & 4 Aal￿rg Sware Lancastsr LA1 1 Lan&tster Royal Grammar School Charlty Report of the Trustees For the year ended 31 August 2020 Tlie Twut41E¢5 pl￿111 Uieii Éaiiiiu%11 i¢pvrl olvng wlth the finandal 5t*nieiii¥ fvr th¢ yEdr ended 31 August 2020 under the Charities Act 2011, together with unaudited accounts for the yEar and confim that the latter comply wtth the Ac( The Trust Deed and the Charities SORP applicabie to charities preparing their accounts in aCCord￿ce with the FRS 102 section 1A. Admlnlstratlve Inforniatlon The Lancastsr Royal Grammar School aiarity is a registered charity (No 526602) and is administered in accordance with a Trust Schwno. Tha TrnSt￿, administrator and professional advisers are listed on the previous page. The object ofthe charity is to assistthe Trustees of Lancaster Royal Grammar Sthool in promoting tne eUucaYon ot puplls thereln. Structure. Governance and Management The Trustees vtho have served during the year are set*rythin the officers and professional advisors. The Trustees are appointed in accordan￿ with the 1992 Trust Scheme sealed by the Charity Commissioners on 10 September 1992 and they also administer the following connected registered charilies:_ Charlty Name Charlty Number The LRGS Sports Associalion The LRGS Prizes Charity The LRGS Boarding Gharity The LRGS Leaving Exhibtknon Chaity The LRGS British School Scholarships Charity 0518625 1090614 1090615 1090829 1090834 Tho Charity is 3lsD wnnected with Lanc•Ster Royal Grammar School, ￿lch has been an Academy school since the 15 April 2011. The instrument of govemance of the school provpdes for the Trustees to sit on the Trust board of the sthool. The trustees are responsible for the overall managernent of the Charity and meet at least threè times a year. Policies and proce(lures are in ptace for the induction and training of new Trustees. However. in r8cognition of the vast exp8ri8nc8 which is evident amongst the current Trust8es. there are no plans for the training of Trustees at presenL The Trustees ar6 aware that if the need arises, they will of Course arrange suth training to be carri￿ OUL The governan￿ of the school's actpiities is vested wth the Trust Board who dI￿harge theii duties In accordance with gooernff￿nt legislation. DfE and ESFA guidance. Rlsk Management The Board of Trustees is responsible for the management of risk faced by the Charity. The signfficant risks to Charity arise from the schools day to day operation. Th9 Trustees, through ovefwew of the Goveming Bcmty, ensures that risks are identified. assessed and controls introduced as required. The Twstees examine the major risks that tre Charity faces each financBI year to ensure the continued success of the school and hence the Charity. Lancaster Royal Grammar SclK)ol Charlty Report of the Trustees (cortlnued) For the year ended 31 August 2020 ObJ•ct8, Aim8 and A￿1vIt[•S The object of the Charity is to assist the TruslBes of Lancaster RoyalGrammar School in promoting the education of the Fupils therein arKJ is sel out in the Trust DegJ. Wrth this objective the Charity aims to improve the standard of education provided by the school by improving the generai school building4 and so aid those pupils who require additional assistance to develop theii full potential. The principal activty of the Charity during theyearvRs to run develojment appeals to raisemonies for the upkeep and improvement ofthe genual school facilities and for the school inttlat1￿ whlch help pupils to take full athantage of the educational opportunities a¥ailable to them. When planning the actNtties forthe year. kneTrustees have conside￿1 the Commissions guidan on Public Benefft. Appllcatlon of Incorne The Charity received donations and grfts of £181.529 (2019: £218,807). This income is desgnated to be spent on the improvement of the fac1liil￿ and buildings used by the sthool and to aid pupils to develop their full potential. During the year the Charity made grants to tre school of £131.052 (2019: £215.654). These were used by the school to fun(J improvements to $chool buildings and fa-iltties, school initiallves to aid pupils. leaming and scholarships to relieve the hardship where the pupil's education and future prospects would otherwije be at ri¥k. Flnanclal Revlew and Investment Pollcy During the year the Chartty again wntriiNJted toward several projects on the school site. The Charivs donab'ons to the school were spent on le￿nue based costs to improve the facilities of the school to enhance the educats'on of the pupils. The charit￿s total fijnds increasèj by £71.166 (2019. £1.459) during tha yaar, thiswaB afterwnnts made totalling £131,052 (2019.. £215,654). The financial perfomance of the charity dur,ng the year is consider8d satisfactory ar¥J the future prospects of the Charity are considered good. As in the previous accounting period a peki)ercom rental was applied to all buildings Mith the exceptson of the boarding facilittes where the tharity charged a rentsl of 12.51JA of total boarding Income charged to pupils by the school. Thiscan however be waived or partial remission btr given at the discretion ofthe Trustees. The trust￿ agreed to cap the rental at £175,000 for the fftar to assist the school's financial position. Th8 rèmaining rentsl income shown in the accourts was frorn lets to outside organisations during the School holidays. The Truslees revtew alailable funds aTrJ borrowings on a regular basis. Th8 Charrlies policy is to pla￿ available funds in Iu*4 risk investments and to ensure that bcfrowings for capital puposes Gan be ffinanced from luture income. Lancaster Royal Grammar School Charity Report of the Trustees (contIn￿d) For th• year ¢Ddcd 31 August 2020 Reserves Pollcy The Chartty holds reseprfes to support Lancaster Royal Grammar School in promoting the education of the pupils therein. Funding from other sources may not always meet the school's needs and the Charity seeks to maintsin reserves to supplement other sources whei required. Reserves in the charity at 3191 August 2020 were £1,437.857 (2019.. £1,366,691) Future Plans The Ch8rÉty aims to conttnue to generate fvnds from development appeals and to ¢ontiTrue it8 poIiGy ot improving the geieral school buildings, to enable a full and wid8 curriculum to be delivered by the school. to provide extra(yJrricular opp)rtunities for all pupils and to give aid to puplls who n8ed help lo achieve their full potential. Accounllng and Reporting Responsibllftiès of the Trustees The LharlI￿$ Act requires the trustees to prepare accounts for each financial year vthich give a true and fair view of the SL* of affai￿ (* the Chartty at the end of the year and of the incoming and outgoing resour￿S for the year then ended. In preparing the accounts the TrLStees should follow best praCfl￿ and: select Su[ta￿e accounting policies arKI then apply them consisterrtly., make judgenents and estimates that reasonable and pwdenl follow applicable accounting stsndards and the Charities SORP, disclosina aDd explaining any depanures in the accounts.. and prepare the financial statements on the goiro concem basis unless it is inappropdate to presume that the Charity ￿111 conlioue ts activit￿. The ttustees ale responsible for keeping proFer accounting records bvhich disdose with reasonable accuracy at any time the financiat position of the Chartty and to enable them to ensure that the accounts ¢omply wth the Charities Act 2011. The Trustees are also reswnsible for safeguarding the assets of the Charity and hen￿ fOr￿r￿j reasonable steps for the prevention ane deteclion of fraud and other irregJlaritie3. Signed by order of tke Trustees Mr P Fitton Approved by the trustees on 25 '￿1( Lancaster Royal Grammar School Charlty Independent Exarr.iner5' Report to Ihe Trustse8 of the Lancastèr Royal Grammar School Charfty I report to th& trustees on my exarninalion Df the accounts of Lancaster Royal Grammar Sthool Charfty ('the charity) for the year ended 31 August 2020, b¥tJich are set oth on pages 5 to 15. Respon31bllltles and basls of report As the tTUStees of the charity you are responsible for the prèparation of the accounts in accordan￿ with the requiremcnts of Ihe chari￿s Act 2011 ('th8 2011 Acr). I report in respect of my examination of the chall￿S accounts Garried out under section 145 of the 2011 Act and in carrying out rny examination I have follovrtl all Ihe applicabie Direth'ons given by the Charity Commission under section 145 (5Mb) of the 2011 ACL An Independent Èxamination does not Invotve gathering dl the evidenGe that would b8 required in an audit and consequenuy does not cL)ver all the matters that an auditor %%nsideTs in giving their opinion on the accounts. The planning and conduct of an audil goes boyond the limtted assurante that an independent examinats.on can provlde. Consequenty, l express no opinlon as to whether the accounts present a 'true and fair and my report s limited to those spedffc matters set out in the independent axaminerfs statement Independent examinerfs statement I confirm that l am qualified to undertake the examination because l am a member of Th Instilute of Chartered Accountants in England and Wales. whith is one of the listed bodies. I have completed my examination. I COnfi￿n that no material mattors have come to my attention in conneGtion wlh the examination givirKJ reasonable cause to believe that in any materi81 respect: accounting records were not kept In respect of th8 Charity as required by section 120 ofthe 2011 Act,. or 2. the accounts do not accord Y#ith those records. or 3. the accounts do not compty with the applicat4e requirements conceming the fotm and content of aGGounts ser out in the Charities (Accounts and Reportsj Re9thtiDns 2008 other than any requirement that the accounts 9ive 8 'true and fair vlew which is not a matter considered as part of 2n independent examitHtioTh. I have no concem$ and have come a¢ross no other matters in ￿neCtIOn wth the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. -'4 &J kn1 Karen Musgrave On behalf of RSM UK Tax & A¢countlng Llmited Chartered Ac£oiAntants Bluetell House Brian Johnson Way Preston Lancashire PR2 SPE Date.. 29 June 2021 Lancaster Royal Grammar School Charity Statement of Flnan¢lal Activftles For the year ended 31 August 2G20 Year to Augu$t 2020 Total Note Endovnnent Unre8trlctsd Incomlng r8gources Income from generated funds Income from donations. legacies and grant income Income from other trading activities Invostmant income 181,529 181.529 193.875 351 218,807 193,673 75 193,875 351 Total Incomlng resources 194,228 181,529 375,755 412,555 Resources expended Cost of raising funds Cost of generating voluntary income Costs for generating fvnds.. Mortgage Interest 131,601 131,601 130,514 37.529 37,529 50,094 37.529 131,601 169,130 180,608 Corporation Tax (1.345) Expenditure on Charitsble activities 14,000 117,052 131,052 215,654 Total rasources •yponded 61,)2? 248,653 300.182 394,917 Net Incomingl(outgoing) rosour¢cs bclore transfers 142.697 (67,124) 75.573 17,638 Net Incornlnglloutgolngl resources before other recognlsed galn8 and losses 142,697 (67.124) 75.573 17,638 Net Reallsedlunrealised gainsl(l(wes) on Investments (4,407) (4.40 (16.179) Net movement In funds 142.697 {71,531) 71,166 1,459 Reconcillation of funds ToLIl funds brought forward at 1 Soptember 2019 1.180.2 186.431 1,366,691 1,365.232 Total funds carried forward at 31 August 2020 The notes on pages 7 to 15 foTh part of these financial stat￿)ents. Thv statement of Ilnancial activib.es includes all gains and losses rwcogni$od in thc year. All inGome and 84)enditure is derived from continuing activtties. 1,322,957 114,900 1,437,857 1.366,691 Lancaster Royal Grammar School Charlty statement of Flnanclal Posluon For thè year èndod 31 August 2020 Year to August 2020 Total Year to August 2019 Totsl Note Flxed assets 2.500.000 2,500,000 Investments 14,444 18,851 Current Assets Debtors Cash at bank 10 3.761 136.149 12,257 209,639 139.910 221.896 Credltors falllng duewlthln one year 11 (251.9031 (274,171) Net currènt assèts I Illabilltles (111,WJ) (52,275) Total assets1os8 cuffent liabilitks 2.402.451 2,40G,4)76 Credltors falling dueafter one ye•r 12 (964.5941 1,099,885} Net assets 1.437.857 1.366,691 Represented by Endowment fijnd Development apwl fmnd Sedgwick request for works of art Lune scholarship Opportunities fund 13 13 13 13 13 1,322,957 86,623 131 7.659 10.487 1.180,260 165.754 131 9,517 11,029 1.437,857 1.366.691 The financial statements on pages 5 to 15 were approved by the Trustees on The trustees have prepared the accounts in accordance wilh seclion 138 of the Charities Act 2011. These accounts are prepared in accordan￿ with Ihe Statemènt of RecOMm￿ed Practice appliGable to charities preparing their accounts in accordan￿ with the FRS 102 Section 1A. Signed b er the Tmstees: Lancaster Royal Grammar School Charlty Notes fomilng part of the financlal stat¢ments For the year ended 31 August 2020 ACCOUNTING POLICIES Basis of Accountlng The accounts have bewt prepared in attordan￿ will the Chariti8s Act 2011 under the historical cost convention as Modif￿ by the adopl¢on of mathet value for inveqtrnent agsets in accordan Y￿th applicable eccounting standards the Statement of Recommended Practice on Accounllng and Reporting bi Charities (SORP FRS 102 Section 1A). The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Pracbce: Accounting and Reporting by Charities preparing their att￿ntS in aceordance with the Financial Reporting Standard applicable in the UK and Reput4ic of Ireland (FRS 102 Section 1A) issued on 16 July 2014 and the Financial Rewrting Stsndard aFplieable in the United Kingdom and Republic of Ireland {FRS 102 Section 1A) and the Charittes Ad 2011 and UK Generalty AG￿Pted Practic8 as it applies from 1 Janvary 2015. The accounts (financial statements) have been prepared to give a 'true arKI fairf view and have departèd frorn the Chan)￿S {Accounts arKJ Reports) Regulations 2008 onty to the extent required to glve a 'irue and fairvievl. This Ueparture has Involved following the Financial Reporbng Stsndard applicable to tho UK and Republic of Ireland {FRS 102 secti￿ 1A) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 200S wknich has since been withdrawn. Golng ¢onGern The fundraising activitses of the charity have been Feduced due to the pandemic aib d at the year end the Charity had net current liabiltties. The Going Concem Status ofthe Charity is closely linked to that of the Laicastei Royal Grammai School. The Schcol is currenuy in receipt of financial SUPPQrt from the ESFA followng the impact of Covid relate(I restrictions on its boarding activities. The Trustees ha'ie carefully Gonsidered the cash requiremerts of the Charty and the School for the foreseeable future taking into account current resources and concluded that the Charity has adequate reSoUr￿S to continue as a going concem. Fund AGcountirwJ General funds are unrestrrcted fijnds Kthich arg availablo for uÈe at the disorction of the trustees in furtherance of the general objectives of the tharity and whith not been designat&d for other purposes. Designated funds compTi8e unrestricted funds that have been set aside by the trustees for particular raa8on$. The aim and usc of cach de$ignated fund is set out in the notes to the financial statements. Restricted fund¢ are thosc which are to be u3ed in accordance wlth s￿[fiC restricfjons ImpD5 by donors or which have been raised by Ihe charity for parttcular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. Endowment funds are those that are available for use at the di￿ett.0n of the trustees in the furtherance of supporting Lancaster Royal Grammar ￿￿ChOOl. The aim arKI use of tha endowment fund is set out in the notes to the financial statements. Incoming resOU￿e$ Donations, legacies and similar incoming resour￿ are induded in the year In whith they are recelvable. whlcn Is wnen the Chaw tscomes entttied to the resource and will be credited to unrestricted fvnds un￿sS the donor wishes restfictions lo be plac8J Investment Income and rcntal Income Income from investments and from rental income is induded in tha SOFA in the year in which it is receivable. On the 15 April 2011 Lancaster Royal Grammar Sthool became an academy and at this point the trade and assets of the boarding aGcwnt were transferred from the Charity to the academy. Since the 15 April 2011 an annual rental for the Ix)ardng facilities is charged by the Charity. The annual rentsl is calculated as a 12.5% charge of totsl boarding income charged to wpils by the academy. The Chajity has the right to vAive such rentsl costs should it choose to do Resources expended All expenditure is inctuded on an accruals basis and 1$ rgcognisad when thero is legal or constructive obligation to pay for eypenditure. All costs have been direGlly attributed to one of the funclional categories of resources expended in the SOFA. The Charity is not registered fol VAT. Tanglble flxed assets Until March 1979 nelther the original cost nor irnprovements to freehokl land and buildings weré capitalised because the buildings are historic, inalFenable and fom part of a pefmanent endowment. As at the 15 April 2011. Lancasler Royal Grammar School converta to academy status and a 125 year lease was signed betr￿n the Charity and Academy. Due lo the nature of this lease agreement, the risks and rewards of propety ownership were inlerited by the Academy and appli¢ablo accounting thndards diGtatc the value of ￿1￿ IS transferred to the Academy. Pnor to this transfer the buildings were re•valued USFng the insuran¢gvaluation per the 2011 policy. The freehold land was also re-valued at the point of conversion to £2,5(KI,wo which the trustees believe better relleGts the value of the land owned by the Chanty. It has then been caTried at deemed cost from this date. Investments Investments are included at market value at the balan￿ sheet date. Gains and losses on dlsposal and rèvaluation of inveslments are charged or crediied to the SOFA. Financial Instrnments The charity only has financial assets and finanoal liabilrbes of a ￿nd that qualify as basic financial instruments. Basic finan¢ial instrunents are initially recognised al ttuncation value arKI subsequently measured at their settèrnent value wtth the excepb'on of bank loans vthich are subsequently measured at amortised rJJ