2020-08-31-accounts

Company registration number: 06612259 Charity registration number: 526622

31 AUGUST 2020

Horsfield & Smith Chartered Accountants & Registered Auditors Tower House 269 Walmersley Road Bury Lancashire BL9 6NX

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

CONTENTS

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED CONTENTS
Reference and Administrative Details	1 to 2
Governors Report	3 to 17
Statement of Governors' Responsibilities	18
Independent Auditors' Report	19 to 21
Statement of Financial Activities	22 to 23
Balance Sheet	24
Statement of Cash Flows	25
Notes to the Financial Statements	26 to 42

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS, OFFICERS AND ADVISERS

DIRECTORS

The Directors of the Company (who are Governors of the Schools) as at the date of signing this report are set out below:

Mrs G Winter – Chair of Governors Mr D Baker * Mr M Edge – Vice Chair of Governors *@ Mr M J Entwistle * Dr S Hyde + Mrs S Gauge +@ Mr P Lee * Mr D Long * Mr T McDougall + Dr J Rajasansir +@ Mr A Spencer * Ms N Waring + Mr S Wild

Key:

• Member of the Finance & Resources Committee

• Member of the Education Committee @ Member of the Governance Committee

The Chair of Governors is an ex officio member of all Committees. Ms N Waring was appointed as a director on 28 April 2020. Mr T McDougall was appointed as a director on 17 February 2021, Dr S Hyde was appointed as a director on 4 March 2021. Mrs L Hayes and Mrs C Hulme-McKibbin were directors at 1 September 2019 and resigned during the period.

OFFICERS

Principal and Headmistress Mrs J Anderson Headmaster Vice-Principal Mr D Cassidy Bursar & Clerk to the Governors Mrs J Stevens

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS, OFFICERS AND ADVISERS

Principal Office	Farraday House
	Bridge Road
	Bury
	Lancashire
	BL9 0HG
Bankers	Barclays Bank Plc
	1 Central Street
	The Rock
	Bury
	Lancashire
	BL9 0JN
Auditor	Horsfield & Smith
	Chartered Accountants & Registered	Auditors
	Tower House
	269 Walmersley Road
	Bury
	Lancashire
	BL9 6NX
Solicitors	Woodcocks Haworth & Nuttall	Womble Bond Dickinson LLP
	12 Manchester Road	St Ann's Wharf
	Bury	112 Quayside
	Lancashire	Newcastle upon Tyne
	BL9 0DX	NE1 3DX
Investment advisers	James Sharp & Co
	The Exchange
	5 Bank Street
	Bury
	Lancashire
	BL9 0DN
Insurers	Zurich Municipal
	Southwood Crescent
	Farnborough
	GU14 0NJ

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS REPORT

The Governors, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2020.

REFERENCE AND ADMINISTRATIVE INFORMATION

Constitution

Bury Grammar Schools Trustee Limited is limited by guarantee, registered under company number 06612259, and is regulated by its Memorandum and Articles of Association dated June 2008. The Bury Grammar Schools Trustee Limited is registered with the Charities Commission (Charity number 526622). The charitable company is established to provide and maintain The Bury Grammar Schools for the provision of education for children in accordance with the objectives and principles for which the School was founded.

Governors, Officers and Advisers

The Governors and executive officers are listed on page 1. The address of the Charity and particulars of its principal professional advisers are given on page 2.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance of the Charity

Particulars of the current board of Governors of the School who are also the Directors of the corporate trustee are detailed on page 1.

Organisational management

Governors are legally responsible for the overall management and control of the Schools and set the strategic direction of the Schools. Full Governors' meetings are held at least once each term. Implementation of most of the Governors' policies is carried out by the Building, Development and fundraising, Finance and Academic Committees, which usually meet once per term, and the Appointments Committee which meets when required. All committees have terms of reference, which set out their purpose and role, membership and frequency of meetings, duties and responsibilities and reporting requirements.

The day to day management of the Schools is delegated to the Executive comprising of the Headmaster, the Headmistress and the Bursar and Clerk to the Governors. The Executive attend all Governor and Committee meetings. The Governor's delegated authority to the Executive is set down in detail regarding expenditure and appointment of staff.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS REPORT

Governance and Appointment of Governors

The role of the Governance Committee is to review the School’s governance, its effectiveness and its compliance with all regulations, to carry out succession planning and recognised good practice. Included within this remit are the maintenance of governance documentation, appointment of new governors and to ensure that the members of the Board of Governors have appropriate knowledge, attitude, skills and experience to fulfil their duties.

All new Governors are recruited by invitation, undergo an interview process and are selected depending on their skills and experience. A full induction programme is offered to all new Governors including AGBIS training and guidance, an introduction to the workings of the Charity, organisational management, charity regulations, ISI regulations, safeguarding, finance, health & safety and the School’s Risk Register. In addition, new Governors meet the Executive team, where priority is given to child protection and other key policies, have a tour of the estate and are invited to spend time in the School to observe the day-to-day workings. Additional training is given accordingly for any specific responsibilities allocated to a new Governor. Governors are given safeguarding training at least once per annum and are offered external and internal training courses where appropriate throughout their governorship. Training is monitored and recorded in the Governors’ Training Register.

SUBSIDIARY COMPANY

A wholly owned subsidiary of the corporate trustee, Bury Grammar School Services Limited (company number 08150083), was incorporated on 19th July 2012. The company is a vehicle for the charity’s trading activities and donated to The Bury Grammar Schools Trustee Limited a profit of nil (2019 : £81,000) in the year.

OBJECTS, AIMS AND PRINCIPAL ACTIVITIES

Objects & Principal Activities

The Governors have referred to the guidance contained in the Charity Commission’s statement on public benefit when reviewing the charity’s aims and objectives and in planning for its future activities. In particular Governors consider how planned activities will contribute to the aims and objectives.

The object of the charity is for the public benefit, to advance education by the provision and maintenance and support of:

• A School for boys and a School for girls to be called Bury Grammar School Boys and Bury Grammar School Girls respectively

• An Infant School or schools

• A pre-school

• A Sixth Form

and such other ancillary educational activities and other associated activities for the benefit of the community.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

School’s Aims

Scholarship

To challenge and inspire pupils to work hard, aim high and achieve and to provide an excellent learning environment where each pupil values academic success and where achievement is celebrated by all.

Character

To foster intellectual curiosity, generosity of spirit, self-belief, confidence, resilience, flexibility, a sense of duty and service and a caring and tolerant outlook.

Enrichment

To encourage all pupils to participate in a wide range of activities, developing an all-round approach to their education and a lifelong love of learning.

Partnerships

To look out to the world with optimism, forge positive partnerships and learn to play an engaging role in society at a local, national and global level, preparing for lives in an ever-changing world.

STRATEGIC REPORT

Mission Statement

Bury Grammar School is a leading academic institution and the School of first choice for pupils, parents and staff in the area.

Governors’ Comment on the effect of COVID-19 and Going Concern

The academic year 2019/20 saw unprecedented challenges for all UK schools following the outbreak of COVID-19, and the financial pressure on independent schools led to the closure of some schools during this period. Analysts anticipate that these difficulties will continue for the sector as the impact of Covid-19 extends into the academic year 2020/21 and beyond. The Governors are aware of these issues but, through careful financial scenario forecasting, are confident that Bury Grammar School will continue to remain a solid and reputable educational establishment, that provides a stable and high quality all-round education for our pupils for years to come.

Bury Grammar School’s solid financials, along with the excellent management from the Senior Leadership Team, meant that the School was able to cope well with all issues faced in 2020. The staff ensured that the pupils’ all-round education was maintained throughout periods of remote learning with minimal disruption; in many ways the School was ahead of the game, with online learning platforms and IT equipment in place and teachers trained to use them prior to the March lockdown.

The Governors made the decision to take a financial hit and offer parents a discount on the Summer Term fees. In addition the School lost most non fee income from March 2020 onwards, as most lettings and holiday clubs were cancelled. Although the School managed costs carefully during the period and did save on some overhead lines, the lost income outweighed the savings.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

However careful financial management along with a solid financial position at the start of the lockdown period meant that the School’s finances were able to absorb the stresses and strains of 2020. The Governors made a conscious decision to reduce the surplus made by the School in the year, so that the School could offer financial help to parents in the form of discounted fees and extended time to pay fees and, in addition, the School invested heavily in subsidising IT devices for all pupils, further safeguarding our all-round educational provision against any future periods of remote leaning. The School’s cash balances at the end of 2019/20 remain healthy.

The School has strong links with the community and the public benefit work continued throughout the COVID period. Key worker provision was open throughout and we extended this to children who are not pupils at the School. Staff made PPE equipment for local settings when PPE was scarce and our younger pupils took part in a project to write to elderly members of the local community, as part of a project to combat loneliness amongst the elderly.

Careful financial management and forward financial scenario planning was in place throughout 2019/20, taking account of the School’s future cash position, sources of income and planned expenditure. This work includes the impact of coronavirus on operations together with assumptions around recovery thereafter. These scenarios consider reduced pupil numbers, delayed fee payment and potential bad debts, as well as impact on costs from the measures taken so far. Sensitivity around these assumptions has also been considered in our forecasting. Results of this cash flow and sensitivity analysis indicate that the cash reserves of the School (charity) are adequate to meet the School’s (charity’s) obligations as they fall due. Having regard to the above, the trustees believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Governors’ Strategic Focus for the 2020’s

The successful implementation of the 2016-2020 strategic plan brought the staffing and resourcing together across the entire School led by a single Principal, so eliminating the inefficient duplication of having two separate staff bodies (teaching and administrative) in two distinct schools, a school for girls and a school for boys. Pupils are still taught in a co-education setting in Kindergarten, Infants and Sixth Form and in single sex environments in Junior and Seniors but with efficient staffing and resourcing.

To ensure the continuation of the School’s success the Governors prepared a new strategic 10 year vision for the School in 2020 which builds on the successes of the recent restructure. The new strategic plan focuses on quality, tradition and innovation in every area of school life: Governors intend to combine the best of new technologies and new approaches with the best of the established and traditional - the common thread throughout being quality.

The Governors’ strategic plan encompasses all areas of school life. The strategic aims of the academic, pastoral and enrichment programmes will build upon our successes to date and will strive to provide the best provision for our pupils recognising that the times they live in are changing rapidly. We aim to support our pupils through these changes and equip them to be leaders and innovators of the future, boosted in confidence by the traditions and the background within which they have grown up at Bury Grammar School.

The academic strategy aims to enhance further our academic provision through intelligent and innovative use of technology as a Microsoft school and we will combine the best of traditional teaching methods with exciting advances in IT.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

An important strategy in the last 5 year plan was affordability of the school fees and the Governors will continue to ensure that BGS offers an outstanding all round education at a competitive price and to be mindful of the affordability of our fees. The control of costs will be a critical element of the strategy to limit fee increments. Widening access to BGS through our bursary programme will remain a strategic focus, as always.

Our plans will also include strengthening the School’s finances to future-proof the organisation. This will include plans for marketing to ensure that we continue to showcase the School at its best to maximise pupil numbers. Developing non-fee revenue through business opportunities and investment income will also remain a key element of our financial focus.

Preparing our students for the workplace of the future, instilling a sense of social responsibility and environmental awareness are also key strategic aims. Working alongside this will be strategies to ensure the School remains an important part of our local community and to reduce the School’s carbon footprint.

The strategic plans are underpinned by financial forecasts that take into account the possible short, medium and longer term effects of COVID 19 on the School’s finances. The Governors are confident that the strategic plans are affordable and are the correct focus for the School over the next 10 years.

Review of the Year

Summary

The academic year 2019/20 saw unprecedented challenges for all schools following the outbreak of COVID-19. However, Bury Grammar School’s solid financial foundations, stoic staff, parents and pupils along with the recent investment in IT meant that the School and its community were able to manage the changes with the minimum of disruption.

The year started well with year on year growth in total pupil numbers, led by an exceptional intake into Year 7 which resulted in an 8 form entry for this year group, 2 more forms than usual.

2020 was the School’s 450[th] anniversary and a full calendar year of events to celebrate this important milestone in the School’s history and to bring our community together were planned. The first three events in this programme went ahead in person and were highly successful.

On 20 March 2020, under Government instruction, the School buildings closed and we moved to remote teaching and learning provision for all pupils. Fortunately the School was able to make this change relatively seamlessly given the recent investment in IT infrastructure, laptop devices for all teaching staff but in particular by the move to cloud working through SharePoint and Microsoft 365. By March 2020 we already had in place a well-used document and resource sharing facility in Microsoft SharePoint that staff and pupils were familiar with. We switched lessons to Microsoft Teams which worked well and pupils submitted homework through the software platform Satchel One which we had been using for some time.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

As well as the academic provision we also moved pastoral support, enrichment and extra-curricular activities, sport and music tuition, online. Key worker provision was in place throughout the period. Before the lockdown was lifted in early Summer 2020, the School followed Government guidelines carefully, putting rigorous cleaning regimes in place, investing in new and extensive internal signage, working out how to manage “bubbles” within School and ensuring that we kept pupils and staff as safe as possible by sticking to social distancing rules. As soon as the Government allowed Primary pupils back to school we carefully managed a return for all our Primary pupils and every senior school pupil spent some time in School in the Summer Term 2020 in accordance with Government guidance.

However, the Governors and Senior Leaders fully anticipated that there would be further lockdowns to come in the academic year 2020/21 and for this reason the School undertook an ambitious programme to offer a top of the range Microsoft device to every pupil from Year 1 to Year 13 and to purchase IT tablets for Reception aged children before school restarted in September 2020.

The School subsidised the purchase of the Microsoft devices by two thirds to ensure the devices were affordable to all families and offered generous payment plans whereby parents could purchase a device for as little as £10 per month over a 36 month period.

Looking to the future, hybrid learning will remain a key feature of the BGS academic experience. It ensures that pupils are equipped to complete homework tasks and their own independent study from home as well as giving every pupil access to the same high-quality experience throughout their education whether it is remote or in school.

The Governors are delighted with the way the Executive and all staff at the School handled the lockdown and Tier 4 restrictions in Spring/Summer 2020. The School continues to thrive and in September 2020 there was again year on year growth in pupil numbers, even surpassing our budget expectations. We see this as an endorsement of our School ethos, strategy, quality all-round education, communications and the way in which we supported our pupils and their families during the period of lockdown in 2020.

Marketing and Admissions

The School has built upon its already strong reputation to attract high achieving pupils in an environment which remains competitive, and where parents are increasingly well informed. The Governors are delighted to see a growth in pupil numbers year on year.

COVID-19 impacted our planned marketing. Although most of our Open Days took place prior to lockdown in March 2020, marketing was disrupted as we were unable to showcase our School in person in the form of personal tours for prospective families and other events after March.

However, we moved all marketing online and worked with a local film making company to make a series of short clips showcasing many different aspects of the School including a virtual tour, concerts, messages from the Heads and other events that give prospective families a chance to learn about day to day life at the School.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

The Marketing Team used the website and social media platforms to communicate marketing messages and the Admissions Team invested time in building stronger relationships with prospective and applicant families.

Communication with current parents was also a key part of the strategy and a lot of time and effort was spent by the Heads especially, keeping parents informed in uncertain times. Much focus was given to ensure excellent communication with our current families, being mindful that current families have a natural role as ambassadors for the School.

The School takes the issue of affordability very seriously and endeavours to keep fees among the lowest in the area compared to local independent school competition. This, combined with the outstanding facilities and educational and pastoral provision, results in the Bury Grammar School being one of the best value independent schools in the area.

Capital Investment

The Governors are responsible for allocating the correct level of investment in the facilities to ensure that the School’s estate remains in good working order and that plans for new investments are carefully considered and scrutinised.

Maintenance of the Estate: The School has a three year rolling plan of major repairs, with funding built into all financial forecasts, to ensure that the pupils and staff benefit from the highest quality teaching and learning facilities. Although some plans to undertake major repairs of the Estate were temporarily put on hold because of COVID-19, the summer of 2020 saw the continuation of investment in maintenance of the estate with major upgrades to the M&E infrastructure and building fabric.

Upgrade of Facilities: Five years ago, the School launched a fundraising programme to raise funds to improve sports facilities. The first phase of fund raising and capital improvements was completed in 2016 with the installation of extensive new outdoor 3G sports surfaces for football, hockey, tennis and basketball along with a new athletics track and cricket nets. In 2019 the second phase of fundraising and improvements was completed with a full refurbishment of our sports hall changing facilities, entrance lobby, improved disabled access and facilities, a new sports hall viewing gallery and the provision of a new fitness/dance studio and upgraded swimming pool facilities. The final stage of the sports upgrade programme, which includes the refurbishment of changing rooms and sports corridors in the girls’ senior school, was started in 2020 and will be completed in 2021.

The project to deliver new sports facilities has been made possible by the generous support of donors and the Governors thank these donors for their generosity to the School.

Educational Attainment

In the Spring of 2020 the Government announced that GCSE and A Level grades would be based on ‘centre assessed grades’ (CAGs). The School followed government instructions to the letter on how to award these grades, taking a meticulous, thorough and robust approach to assigning CAGs in line with previous years’ results. The grades were sent to Ofqual and through a process of external moderation using an algorithm devised by Ofqual ‘calculated grades’ were arrived at for all pupils.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS REPORT

The official final grades awarded to pupils by the Department for Education largely consisted of CAGs; where the calculated grade was higher than the CAG, Ofqual awarded the calculated grade as the final grade.

The average GCSE result for a BGS pupil has, for several years now, been at least an A grade or equivalent (grade 7) and the GCSE results for the Summer 2020 cohort were in line with those achieved by previous generations. Over a third of grades were 8-9s (the old A), with more than six in ten grades achieving 7-9 (what would previously have been A-A). The vast majority of grades were 6-9 (previously, A-B) and the pass rate was 99.5%. The Year 11 pupils also performed well in the prestigious Higher Project Qualification with 86% of grades at A-B.

The A Level grades were equally impressive with 50% of all grades achieving A/A. Over 97% of grades were A-C and the pass rate was a superb 100%. The grades in the Extended Project Qualification was also excellent with over 90% of grades at A-B.

Most students achieved a university place at their first choice university including Oxbridge success and places at other prestigious universities in subjects including medicine, dentistry and engineering.

Partnership, Community Outreach & Public Benefit

The School is a community in itself but recognises that it has responsibilities beyond its gates to the wider local community, which can be seen in the School’s increasingly strong educational and community partnerships. 2019/20 saw the continuation of the new and exciting public benefit collaborations that were started the year before.

As well as achieving the objectives in respect of providing a first class education for all pupils, the School also endeavours to provide public benefit by:

• Encouraging pupils to attend irrespective of their parents’ ability to pay fees. This ethos is central to our founder’s aims for the School and the Governors ensure that this remains of paramount importance in the running of the School in current times.

The School operates a means tested bursary scheme for pupils entering at Year 7 and at Year 12. In the year ended 31 August 2020, 11% of our senior school pupils received bursary assistance (we do not offer bursaries to infant or junior pupils), representing 1 in 9 of the senior school pupils. The average bursary given is life changing, being over 80% of the fees. The bursary funding given to pupils, both directly by the School and indirectly via donated funds raised by the School, in the year to 31 August 2020 was £1m.

The School is committed to bursary funding and, since 2016, has focused on raising funds to increase the number of pupils with bursaries. This campaign was given fresh impetus in 2020, our 450th year, with the launch of our 450 Bursary Fund which aimed to raise £1m in the calendar year 2020.

The School promotes bursary funding through Open Day events and the website. Information explaining how our bursary process works plus application forms are explained at Open Events and are available on the School’s website. School staff offer help to parents to complete the bursary application forms when necessary.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS REPORT

Bursaries are provided by a combination of the School’s income and a team of people in the Development Office are employed to raise funds for bursaries and capital projects to improve the School’s Estate. Over the past 10 years the team have raised almost £7m from charities, companies and individual donors. The School is grateful to those organisations and individuals who have supported the School’s fund raising campaigns. The Governors consider that it is essential that as many children as possible, who reach the School’s academic criteria, can attend the Schools, even though their parents cannot afford the fees. All allocated bursaries are carefully means tested every year of the pupil’s education at the School, this is to ensure our bursary funds reach those who are in most financial need.

• Encouraging pupils to engage in charitable activities such as fund-raising for local charities and working in the community as part of a structured activities programme.

To mark our 450th year, the School planned to work in partnership with Bury Hospice to raise as much funding as possible for this local charity. Although some of our plans to work with this charity were disrupted by COVID-19 all pupils took part in raising funds and awareness for this charity.

Before lockdown many of our older pupils took part in voluntary work in the community as part of the Duke of Edinburgh Award scheme that we run at BGS and through their own initiative. This included helping at local churches, care homes, hospitals and numerous children’s activity groups such as Beavers, Scouts, Brownies and sports groups. Help was also given to local environmental groups, animal rescue centres, community libraries and museums, charity shops and groups that offer support to families of children with special needs.

• The School offers various educational opportunities free of charge to children who do not attend our Schools. Although these activities were disrupted by lockdown and the Tier 4 restrictions we were able to offer activities pre the March lockdown.

The activities included:

• Hosting joint schools events with other local schools and local clubs. The Schools host various sporting and music events, tournaments and festivals throughout the year enabling children of all ages and adults from across the region to use our facilities.

• The new sporting surfaces, sports halls and the swimming pool are offered to local community clubs either on a FOC basis or a not-for-profit basis and are hugely popular with the local community. The facilities are fully booked at peak times up to 6 months in advance. Upwards of 500 children per week from the local community use the sports facilities in the evenings and weekends. In addition, in term time the Schools played host to the Bury Junior Schools football 5 aside and 7 aside tournaments and hosted the Bury Town football trials.

• The School works in partnership with other local state schools and invites their pupils to use our educational facilities and to attend certain lessons or other educational events at our Schools. Most of these activities take part in the Autumn and Spring Terms so were able to go ahead in 2019/20.

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GOVERNORS REPORT

Year 5 and 6 children from local county primary schools have the opportunity to attend special education days and programmes at the School. These include lessons in science, maths, English, and a range of languages and all are run by our teaching staff.

The School also invites local nursery aged children to Easter and Christmas celebrations hosted at the School.

• Collaborating with state schools to share skills and experience.

The School provides an outreach educational provision where members of our teaching staff visit local state schools to provide lessons in various subjects.

An exciting addition to our community outreach programme launched in 2018/19 was ‘This Kid Can’ partnership with a local primary school in Bury. This one of a kind partnership involves a team of students and cross curricular teaching staff here at BGS, led by the Headmaster. The aim of the partnership is to instil a sense of self-belief in children and to offer them access to subjects and projects that they may not ordinarily have the chance to take part in. In its first year (2018/19) this project gave Year 3 children from the local primary school the opportunity to learn basic MFL skills and used them to write to children who attend a French speaking school in Africa. In 2019/20 the project was extended to Year 4 pupils who were introduced to a Technology project.

It is hoped that this model can be rolled out to other primary schools in the area over time.

Teachers and pupils from a local state secondary school were invited to careers lectures and to be part of our Eco Committee and we have plans to involve pupils from this school in our CCF going forward. The seeds were also sown with another state secondary school in 2019/20 where we plan to work together to share leadership skill training with staff and review MFL teaching methods.

In addition, the School is delighted to be working with Manchester University on the Science and Engineering Education Research and Innovation Hub, a project designed to upskill and support state primary and secondary school teachers in the area of Science with the aim to fascinate young people about the wonders of Science and Engineering.

Members of our teaching staff who are highly experienced in the Duke of Edinburgh (DofE) Awards here at Bury Grammar School, act as DofE assessors for a local state secondary school. This has allowed pupils at the state secondary schools to gain a nationally recognised award.

• Working with schools overseas that provide education to children from families that cannot afford to pay for the child's education.

Ordinarily each year Sixth Form pupils take part in the World Challenge and travel abroad to take part in an educational project designed to help a local community. These projects in recent years have included helping build a school in a remote location in Madagascar and helping support educational projects in Tanzania, Poland, Peru, Chile and Nepal. Unfortunately this programme was unable to run in 2020 but we are hopeful that this can resume in 2021.

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GOVERNORS REPORT

• Working in partnership with a non-fee-charging school overseas to share knowledge, skills and expertise and arrange cultural exchange visits for pupils at both schools.

Since the end of World War II, the School has had close links with a state school, Deutzer Gymnasium, in Cologne, Germany. Teachers and pupils from both schools are in contact with each other throughout the year; the highlight being an annual festival and week-long exchange programme. In addition, the School has links with French state schools and pupil exchange visits take place several times throughout the year. Plans to further strengthen these links in 2020 as part of our 450 celebrations were put on hold, but will be resumed as soon as possible.

• Public Benefit – COVID-19

The School recognised the importance of supporting our community during lockdown. Staff produced over 300 visors for local care homes, residential homes, dental surgeries and doctors’ surgeries when there was a shortage of PPE. We provided Key Worker provision for our own pupils and extended this to children who do not attend our School throughout Spring and Summer 2020. Working in partnership with the Bury Youth Cabinet and Tesco, our Primary pupils produced “letters of positivity” which were then sent to care homes and residential homes during the Spring 2020 lockdown to try to combat loneliness amongst the elderly.

Environmental Impact and Awards

An important initiative in 2018/19 was the launch of Eco Schools at BGS and we are delighted that the School was awarded the top level award, Green Flag Status, in 2020. Eco Schools is a worldwide project established by The United Nations to educate children about the environment and sustainability. Pupils and staff worked on many projects that focus on our environmental impact and we launched a new Forest School at BGS.

We were also delighted to be awarded the Independent School of the Year Green Award for Environmental Achievement in 2019. This national award recognised our hard work and the pupil’s future ambitions and commitment to the environment.

Financial Review and Results for the Year

Financial Activities 2019/20

The Governors monitor and manage the School’s financial performance carefully to ensure that the School is financially stable and that it can pursue its educational aims and objectives for many years to come. The Governors recognise the importance of strong financial control and have in place robust financial projections that ensure the School remains financially stable into the future. The Governors are satisfied with the School’s financial performance in the year to 31 August 2020. Given the circumstances they believe the finances strike the correct balance between helping parents with fees, investing in IT to safeguard against future periods of remote teaching and learning and maintaining the School’s overall solid financial foundation.

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

Prior to lockdown in March 2020, the School’s main source of income, income from fees, was tracking slightly ahead of projections following higher than expected pupil numbers, and non- fee income was also healthy with lettings and holiday clubs at almost full capacity.

When COVID struck, the Finance Committee Governors and Executive met regularly to consider all possible financial effects the lockdown and further disruption may have on all aspects of the School’s finances. Operating cash balances were monitored on an almost hourly basis as the School worked with parents offering extended time to pay the fees in accordance with the Consumer Credit legislation. In April 2020 the School negotiated an extension of its overdraft facility to £1.9m with Barclays Bank should the worst case scenario come to fruition, but to date this has not been used.

After careful review of financial projections covering a range of scenarios, and in line with many other independent schools in the area, Governors offered parents a discount on the Summer Term fees (10% for all year groups apart from Year 11 and 13 pupils who were offered 20%). The discount along with lost non-fee revenue reduced the School’s annual revenue in 2019/20 by over £0.5m and although the School did take advantage of help from the Government where appropriate, and did save on some overhead lines, the overall loss of annual surplus to the School was £0.2m. This represents 50% of the original budgeted surplus for the year.

In their scenario planning in the Spring 2020, the Governors and Executive anticipated the high possibility of future periods of remote teaching and learning and set out on an ambitious strategy to provide a quality Microsoft Surface device, heavily subsidised by the School, to all pupils by the end of the Summer 2020. Even in a difficult year the School’s finances were such that it was able to fund this programme. Consequently the 2019/20 SOFA includes a cost of over £0.3m for this programme with working capital balances also materially affected.

The impact of these circumstances and decisions resulted in the School’s operations achieving an unrestricted funds surplus in the year of £0.2m (1% of revenue) compared to £0.7 million the year before. It is the Governors’ opinion that this level of surplus, although lower than in previous years, does maintain financial stability in a difficult year. This surplus is built into all financial projections and the Governors are confident that the School can maintain financial stability even in these uncertain times and beyond.

Cash and working capital are always managed carefully. In 2020 parents were given the maximum time to pay the Summer Term fees if they required, but at the year-end less than 2% of fees were outstanding as parents prioritised the payment of school fees fully recognising the excellent educational provision delivered by the School. This, along with careful cost management and the delay in some large maintenance projects, resulted in the School delivering a net cash increase in the year of £0.3m with no requirement for Bank loans or overdraft facility.

Increase to Teachers Pension Scheme Employer Contributions

Another important factor included in the 2019/20 financials is the 43% increase in employers’ contributions to The Teachers’ Pension Scheme which came into effect on 1 September 2019, adding £0.3m to the School’s annual costs. This incremental cost was planned for in the 2019/20 budget.

14

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

450th Anniversary, Fundraising Performance and Regulatory Compliance

2020 was the School’s 450th anniversary and a series of events to bring the community together, celebrate this magnificent milestone in the School’s history, to look back with pride and look forward to future successes had been planned meticulously. The first three events took place successfully “in person” but post March, had to move on line. We still managed to hold “virtual” events and we are very grateful to the whole BGS community who came together to support us.

The 450 Bursary campaign was launched as part of the 450th anniversary and aimed to raise £1m in the calendar year 2020. The Governors are delighted that this target has been achieved and would like to thank those Trusts, individuals, current and past pupils and teaching staff and the local business community who contributed to this success.

In the academic year 2019/20 the School raised £1m for bursaries and the Sports Campaign.

The School supports the work of the Fundraising Regulator and all fundraising activity complies with the recognised standards of fundraising (set out in the Code of Fundraising Practice) as well as those required under charity law and wider law.

The School does not employ the services of any third parties, professional fund-raiser or commercial participator to raise funds for the School and does not raise funds from the general public, only from the School’s community, those linked in some way to the School and recognised Trusts. The School received no complaints about fund raising in the year.

Investments

The School has a range of designated, restricted and unrestricted funds held in deposits and investments. The School uses income on investments mainly to fund prizes and bursaries.

The Governors and the School’s stockbrokers manage the portfolio of investments to ensure they comply with the aims of the School’s Investment Policy. The Total Return Order will ensure that there are sufficient funds available to provide bursary assistance for pupils when it is required.

Total Return Order

The value of permanent endowment in respect of investments is deemed to be £362,500 as at 1st September 2012.

At this time the Directors do not intend to apply any sums from the unapplied total return as at August 2020. However, the implementation of the Total Return Order may be required at some stage in the future in order that bursaries can continue to be offered.

Reserves

Reserves Notes 24 and 25 to the accounts show the assets and liabilities attributable to the various funds by type.

The Schools' unrestricted funds stand at £12.8m at the year-end up from £12.6m at the start of the year. Of this £11.9m are funds deployed on the Schools’ buildings and other fixed assets.

15

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

GOVERNORS REPORT

Day to day working capital is provided by careful management of the Schools’ cash resources, which normally includes the strict control of fee debt, but this year the School gave parents additional time to pay the Summer Term fees. Governors monitor the level of reserves and cash and have targets to build up reserves and cash out of operating surpluses to a level that meets the needs of the Schools at the time, whether this is for capital expenditure to provide up to date facilities, or for working capital.

Valuation of Buildings

Under FRS102 section 17, Property, Plant and Equipment, it is recommended that the Governors state tangible fixed assets at a fair value. After due consideration, the Governors have decided to continue with their previous policy and show the value of buildings at historical cost, rather than at a re-valued amount.

Future Outlook

Independent school professional associations have stated that spiralling costs of pension schemes, poor management and falling pupil enrolment have caused financial challenges for many independent schools even prior to coronavirus. Fee reductions and the continued loss of pupils, especially those from overseas, in these times will cause more schools to close.

Whilst the Governors are aware of these difficult conditions for the sector as a whole, they remain confident that Bury Grammar School will continue to provide an excellent education well into the future.

The bringing together of the Schools over the past 4 years has led to an efficient teaching and business model that is nimble and can react quickly to changes when necessary. The School has, and will continue to, control current finances and forecast future finances very carefully, and will continue to live within its means. As well as the lasting impacts of COVID-19 on the future landscape, our financial projections include how the School will deal with other external pressures such as Teachers Pensions Scheme increments and the potential loss of rates relief.

The School entered lockdown in March 2020 in a strong position, with stable financials and a modern IT system that enabled the School to switch to remote learning provision almost seamlessly. The continuation of the investment and resourcing in IT during the Summer 2020 is further evidence of financial security and we will continue to invest where necessary. The School has no bank debt but does have agreed overdraft facilitates in place should we require it.

Pupil numbers over the past few years have grown and the number of children entering our assessment process for Year 7 entry in September 2021 is again exceptionally strong, proving that the demand for places at the School remains buoyant.

Even in these difficult times the School continues to thrive but the Governors and Executive are not complacent. We remain driven by our moral purpose to deliver an education of excellence to all our pupils, now and in the future. We are aware that we must continue to support our pupils, parents and staff and manage the School’s finances carefully, and are confident that by doing so, we will ensure the longevity of the School.

16

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED GOVERNORS REPORT

Risk Management

The Governors have examined the principle areas of the School’s operations and considered the major risks faced in each of these areas. In the opinion of the Governors, the charity has appropriate systems in place which, even under extended period of COVID disruption, allow these risks (where it is possible to do so) to be mitigated to an acceptable level in its day-to-day operations.

The key controls used by the charity include:-

• Formal agendas for all Committee and Board activity

• Regular review of the School’s Risk Register and monitoring of relevant actions to reduce the risks

• Comprehensive strategic planning, budgeting and management accounting

• Established organisational structure and lines of reporting

• Vetting procedures for the protection of children and adherence to all ISI safeguarding regulations

Disclosure of information to auditor

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The governors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The annual report was approved by the governors of the charity on 8 March 2021 and signed on its behalf by:

......................................... Mrs G Winter Trustee

17

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED STATEMENT OF GOVERNORS' RESPONSIBILITIES

The governors (who are also the directors of The Bury Grammar Schools Trustee Limited for the purposes of company law) are responsible for preparing the Governors report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the governors to prepare financial statements for each financial year. Under company law the governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the governors are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply 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 governors 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 governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the governors of the charity on 8 March 2021 and signed on its behalf by:

.........................................

Mrs G Winter Trustee

18

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED Oplnlon We have audited the financial statements of The Bury Grammar Schools Trustee Limited Ithe'charity'l for the year ended 31 August 2020. which comprSse the Statement of Flnanclal Artlvltles, Balance Sheet. Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Klngdom Accounting Standards, comprlslng Charltles SORP - FRS 102 'The Financial Reporting standard applicable in the UK and Republic of Ireland, and applicable law Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financlal statements- give a true and fair view of the state of the charity's affairs as at 31 August 2020 and of its incoming re50urce5 and applitation of resources, including its income and expenditure, for the year then ended- have been property prepared in accordance wfch United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards a￿ fijrther described in the Auditoff s responsibilTrties for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'5 Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these reqU1￿Ments. We believe that the audit evidence we have obtained is sufficient and approprlate to provide a basis for our opinion. Conclusions relating to golng concern We have nothingto report in respect of the followlng matters In relatlon to which the ISAS IUKI require U5 to report to you where: the governors use of the going contern basls of accountlng in the preparatlon of the financlal statements is not appropriate- or the governors have not disclosed in the financial Statements any identifled material uncertainties that may cast significant doubt about the charity'5 ability to continue to adopt the going concern basls of accounting for a period of at least twelve months from the date when the financSal statements are authorised for issue. Other Information The governors are responsible for the other information. The other information comprises the information included in the annual report, otherthan thefinanci31 statements and our au(Iltorfs report thereon. Ouropinion on the financial statement5 does not coverthe other information and, except to the extent otherwise expllcltly stated In our report, we do not express any form of assurance conclusion thereon. 19

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED In connection with our audit of the financial statements, our responslbillty is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or othe￿iSe appears to be materlally misstated. If we identfy such material inconsistencies or apparent material mi5Statements, we are required to determine whether there 15 a material misstatement in the financial statements or a materlal misstatement of the other information. If, based on the work we have performed, we conclude that there is a material mlsstatement of thi5 Other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audlt: the information given in the Governors Report for the financial year for which the financial statement5 are prepared is consistent with the financial statements,- and the Governors Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identlfied material mi5Statements in the Governors Report. We have nothingto report in respect of the following matters where the Companies Act 2006 requires us to report to you rf, in our opinion: • adequate accounting record5 have not been kept, or returns adequate for our audlt have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns: or rtain disc105ures of governors remuneration specified by law are not made; or we have not recelved all the information and explanations we require for our audit. Responsibilities of governors As explained more fully in the Statement of Governors, Responsibilities Iset out on page 101, the governors are responsible for the preparation of the financlal statements and for being satisfied that they give a true and fair view, and for such internal control as the governors determine is necessary to enable the preparation of financial statement5 that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the governors are ￿sponsible for assessing the chartty's ability to continue as a going concern. discloslng, as applicable, matters related to going concern and using the going concern basi5 of accounting unles5 the governors either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Auditorfs 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 auditorfs report that includes our opinion. Reasonable assurdnce is a high level of assurance, but is not a guarantee that an audFt conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these flnanclal statements. 20

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED A further description of our responslbllities for the audit of the financial statements is located on the Financial Reporting Councll'5 website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's governors, 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 charity's trustees those matters we are required to state to them in an auditorf5 report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body. for our audit work, for this report, or for the opinions we have formed. Jonathan Staple5 Bsc FCA DChA Isenior Statutory Auditor) For and on behalf of Horsfield & Smlth, Statutory Auditor Tower House 269 Walmersley Road Bury Lanca5hire BL9 6NX 21

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2020 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

Note	Unrestricted Restricted Endowment Total
	funds funds funds 2020
	£ 000 £ 000 £ 000 £ 000
Donations and legacies 2	- 1,006 - 1,006
Charitable activities 3	11,712 - - 11,712
Investment income 4	46 24 29 99
Other income 5	254 - - 254
Total Income	12,012 1,030 29 13,071
Expenditure on:
Raising funds 6	(75) - - (75)
Charitable activities 7	(11,759) (366) - (12,125)
Total Expenditure	(11,834) (366) - (12,200)
Gains/losses on investment assets	- - (71) (71)
Net income/(expenditure)	178 664 (42) 800
Transfers between funds	- 18 (18) -
Other recognised gains and losses
Remeasurement in respect of pension scheme	(1) - - (1)
Net movement in funds	177 682 (60) 799
Total funds brought forward	12,615 4,094 633 17,342
Total funds carried forward 24	12,792 4,776 573 18,141

22

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2020 (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

Note	Unrestricted Restricted Endowment Total
	funds funds funds 2019
	£ 000 £ 000 £ 000 £ 000
Donations and legacies 2	- 682 - 682
Charitable activities 3	11,949 - - 11,949
Investment income 4	32 44 - 76
Total income	11,981 726 - 12,707
Expenditure on:
Raising funds 6	(65) - - (65)
Charitable activities 7	(11,296) (270) - (11,566)
Total expenditure	(11,361) (270) - (11,631)
Gains/losses on investment assets	- - 8 8
Net income	620 456 8 1,084
Other recognised gains and losses
Actuarial gains on defined benefit pension schemes	93 - - 93
Net movement in funds	713 456 8 1,177
Total funds brought forward	11,902 3,638 625 16,165
Total funds carried forward 24	12,615 4,094 633 17,342

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 24.

23

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

BALANCE SHEET AS AT 31 AUGUST 2020 (REGISTRATION NUMBER: 06612259)

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED BALANCE SHEET AS AT 31 AUGUST 2020 (REGISTRATION NUMBER: 06612259)
Note	2020 2019
	£ 000 £ 000
Fixed assets
Tangible assets 13	14,457 14,487
Investments 14	573 633
	15,030 15,120
Current assets
Stocks 15	14 8
Debtors 16	770 198
Investments 17	2,146 1,649
Cash at bank and in hand 18	3,782 3,431
	6,712 5,286
Creditors: Amounts falling due within oneyear 19	(2,414) (2,250)
Net currentassets	4,298 3,036
Total assets less current liabilities	19,328 18,156
Creditors: Amounts falling due after more than one year 20	(1,048) (649)
Provisions 21	(139) (165)
Netassets	18,141 17,342
Funds of the charity:
Endowment funds	573 633
Restricted funds	4,776 4,094
Unrestricted income funds
Unrestricted funds	12,792 12,615
Total funds 24	18,141 17,342

The financial statements on pages 26 to 42 were approved by the governors, and authorised for issue on 8 March 2021 and signed on their behalf by:

.........................................

Mrs G Winter Trustee

24

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2020

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2020	THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED STATEMENT OF CASH FLOWS YEAR ENDED 31 AUGUST 2020
Note 2020 £ 000 2019 £ 000
Cash flows from operating activities
Net cash income	800 1,084
Adjustments to cash flows from non-cash items
Depreciation 9	180 159
Investment income 4	(99) (76)
Financial instrument net (gains) losses through statement of financial activities	71 (8)
	952 1,159
Working capital adjustments
(Increase)/decrease in stocks 15	(6) 5
Increase in debtors 16	(572) (16)
Increase in creditors 19	638 212
Decrease (increase) in retirement benefit obligation 23	(29) (31)
Decrease inprovisions	- (345)
Net cash flows from operatingactivities	983 984
Cash flows from investing activities
Investment income	99 76
Purchase of tangible fixed assets 13	(150) (680)
Movement in short term investments	(497) 62
Purchase of investments 14	(142) -
Sale of investments	133 -
Net cash flows from investingactivities	(557) (542)
Cash flows from financing activities
Value of new loans obtained during the period	- 270
Repayment of loans and borrowings 20	(75) -
Net cash flows from financingactivities	(75) 270
Net increase in cash and cash equivalents	351 712
Cash and cash equivalents at 1 September 18	3,431 2,719
Cash and cash equivalents at 31 August 18	3,782 3,431

All of the cash flows are derived from continuing operations during the above two periods.

25

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

1 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

The Bury Grammar Schools Trustee Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The governors consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

At the time of approval of the Annual Report, the COVID-19 pandemic continues to evolve and the long term impact on the charity, in common with other businesses, is unknown. The Governors have reviewed the position carefully with a view to ensuring the ongoing provision of schooling for the pupils as well as employment of staff. The charity currently holds significant cash balances supplemented, if needed, by an overdraft facility. Demand for school places at the School remains strong, with high numbers enrolled for the academic year 2020/21. Indications are that the Year 7 intake in September 2021 will also be good. Conservative cash flow modelling with sensitivity analysis indicates that the cash reserves of the charity are adequate to meet the charity’s obligations as they fall due. Accordingly, the Governors believe the Schools’ financial resources are sufficient to ensure the School will continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on a going concern basis.

Group accounts not prepared

Consolidated accounts have not been prepared incorporating the wholly owned subsidiary Bury Grammar Schools Services Limited on the basis that the company is immaterial. Its exclusion is not material for the purposes of providing a true and fair view.

26

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Income and endowments

All income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. Credit is taken for tuition fees relating to the school year, which is the same as the financial year. Investment income is accounted for when receivable. Donations and all other receipts from fundraising are reported gross and related costs are reported under fundraising activities.

Grants receivable

Grants, including grants for the purchase of fixed assets and special projects, are recognised in full in the statement of financial activities in the year in which they are received or receivable.

Grants made by educational trusts in respect of fees due for pupils, which are immediately allocated to the relevant account are not separately disclosed, but are included in restricted fees.

The Government Coronavirus Job Retention Scheme (CJRS) grant is recognised in income over the period in which the related staff costs are recognised.

Expenditure

Resources expended are accounted for on an accruals basis. The charity is not VAT registered and accordingly expenditure is shown gross of irrecoverable VAT. The schools' operating costs include staff costs, premises costs and other related costs. All costs are allocated directly to the appropriate heading under charitable expenditure save for the administration of the charity and governance costs, which are apportioned on the basis of management estimates of the time spent.

School Trips

The Schools collect monies in respect of trips and pay these monies out in full. As these funds do not represent income for the Schools, they are not accounted for in the Statement of Financial Activities.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

27

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Tangible fixed assets

Significant purchases of office, plant and kitchen equipment, and motor vehicles are capitalised. Educational equipment and other items are dealt with on a renewals basis and are written off against revenue in the year in which the expenditure is incurred.

Depreciation is calculated at the following rates:

Asset class Office, plant and kitchen equipment Substation plant Freehold Property Land

Depreciation method and rate 4%-33% straight line 2% straight line 1% straight line not depreciated

Land and buildings acquired before 1992 are carried at their book value at that date. The net realisable value of these assets is in excess of this amount and therefore no further depreciation is charged.

School buildings acquired in 1993 and subsequently are stated at cost and depreciated at 1% per annum.

The carrying values of tangible fixed assets are reviewed regularly by the Governors and any impairment is accounted for in the year in which it arises.

Fixed asset investments

Fixed asset investments are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Current asset investments

Current asset investments are included at market value.

Stock

Stock is valued at the lower of cost or net realisable value, when it is considered that they are significant in relation to the operations of the Schools.

Trade debtors

Trade debtors are amounts due for school fees.

Trade debtors are recognised initially at the transaction price. Known bad debts are written off and provision is made for any considered to be doubtful.

28

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fee deposits and fees in advance

Fee deposits are received from parents when a pupil joins the School and refunded in either the pupil’s first or last term depending on which year group the pupil is at when they join the school.

Fees in advance are deferred and allocated to income as the pupil progresses through the School.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interestbearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the Charity has an obligation at the reporting date as a result of a past event, it is probable that the Charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. This includes expenditure identified in the Strategic Development Plan as repairs to the Estate, where these have been identified and reported to the Board of Governors before the year end.

29

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

Fund accounting

Unrestricted funds comprise incoming and outgoing resources and expenditure for the Schools' purposes.

Designated funds are unrestricted funds set aside for particular purposes.

Restricted funds are to be used for specific purposes as laid down by the donor.

Restricted funds include a minimum of 2.5% provided from fees receivable in respect of full fee paying places in the Senior Schools. This provision is allowed under the constitution of the Schools and is at a level decided upon by the Governors. It is utilised for the Governors' awards scheme which provide bursaries. Donations to bursary funds are treated as restricted funds.

The permanent endowment fund consists of land (nil value) comprising the original Tenterden Street and Bridge Road sites and certain investments carried at market value.

Pensions and other post retirement obligations

The teaching staff are members of the DfE Teachers' Pension Agency Superannuation Scheme, which is a defined benefit scheme. The scheme is unfunded, members contribute on a ’pay as you go ‘basis and retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament.

Non-teaching staff are members of the Pensions Trust Scheme further details of which are set out in the notes to the accounts.

Where applicable, the assets of both these schemes are held separately from those of the Schools in independently administered funds.

30

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through the statement of financial activities, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

2 Income from donations and legacies

	Restricted Total Total
	funds 2020 2019
	£ 000 £ 000 £ 000
Donations and legacies;
Donations from individuals	1,006 1,006 682

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THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

3 Income from charitable activities

3 Income from charitable activities
	Unrestricted funds
	General Total 2020 Total 2019
	£ 000 £ 000 £ 000
Fees	11,125 11,125 11,192
Ancillaryincome	587 587 757
	11,712 11,712 11,949

For the summer term 2020 fees were reduced for all pupils. The value of the reduction was £474,000.

	Total	Total	Total
	2020	2019
	£ 000	£ 000
Analysis of ancillary income
Administration and other charges	90	97
Catering	339	486
Coach charges	77	87
After School, Breakfast & Holiday Club charges	74	82
Sundryincome	7	5
	587	757

4 Investment income

4 Investment income
	Unrestricted
	funds
		Restricted	Endowment	Total	Total
	General	funds	funds	2020	2019
	£ 000	£ 000	£ 000	£ 000	£ 000
Investment income	46	24	29	99	76

5 Other income

5 Other income
	Unrestricted funds
	General Total 2020 Total 2019
	£ 000 £ 000 £ 000
Government CJRS grant	254 254 -

32

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

6 Expenditure on raising funds

• a) Costs of generating donations and legacies

6 Expenditure on raising funds a) Costs of generating donations and legacies
	Unrestricted funds
	General Total 2020 Total 2019
	£ 000 £ 000 £ 000
Fundraising costs	75 75 65

7 Expenditure on charitable activities

a) Analysis of charitable expenditure

7 Expenditure on charitable activities a) Analysis of charitable expenditure
	Activity Total Total
	support costs 2020 2019
	£ 000 £ 000 £ 000
Academic	7,589 7,589 6,826
Welfare	658 658 742
Premises	1,686 1,686 2,022
Support costs	1,182 1,182 998
Management and administration	54 54 65
Bursaries, discounts and fee assistance	956 956 913
	12,125 12,125 11,566

8 Analysis of governance and support costs

	Unrestricted funds
	General Total 2020 Total 2019
	£ 000 £ 000 £ 000
Governance	54 54 65
	54 54 65

33

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
9 Net incoming/outgoing resources
Net incoming resources for the year include:
2020	2019
£ 000	£ 000
Depreciation of fixed assets 180	159

10 Governors remuneration and expenses

No governors, nor any persons connected with them, have received any remuneration from the charity during the year.

Some governors have received reimbursed expenses from the charity during the year.

11 Staff costs

11 Staff costs
	2020 2019
	£ 000 £ 000
Staff costs during the year were:
Wages and Salaries	6,516 6,135
Social security costs	625 587
Pension costs	1,010 740
Provision at end of period	8,151 7,462

The average number of full time equivalent employees during the year was 190 (2019: 191). This consists of teaching staff 99 and non-teaching staff 91.

5 (2019: 4) Employees received remuneration of more than £60,000 during the year.

The Governors are of the opinion that further disclosure of staff costs, as normally required under the provision of the Statement of Recommended Practice, would be detrimental to the management of the charity.

12 Taxation

No tax was charged in the year (2019 - £nil).

The Schools are a registered charity and, as such, are not subject to taxation.

34

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

13 Tangible fixed assets

13 Tangible fixed assets
	Freehold
	property	Equipment	Total
	£ 000	£ 000	£ 000
Cost
At 1 September 2019	14,473	812	15,285
Additions	150	-	150
At 31 August 2020	14,623	812	15,435
Depreciation
At 1 September 2019	461	337	798
Charge for theyear	146	34	180
At 31 August 2020	607	371	978
Net book value
At 31 August 2020	14,016	441	14,457
At 31 August 2019	14,012	475	14,487
14 Fixed asset investments
Other investments

Other investments
	Investments Total
	£ 000 £ 000
Cost or Valuation
At 1 September 2019	633 633
Revaluation	(69) (69)
Additions	142 142
Disposals	(133) (133)
At 31 August 2020	573 573
Net book value
At 31 August 2020	573 573
At 31 August 2019	633 633
Historical cost at 31st August £475,493.

35

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Investment in subsidiary

The company owns 100% of the issued share capital of Bury Grammar Schools Services Limited from its incorporation on 19th July 2012. Bury Grammar Schools Services Limited is incorporated in England and Wales and has a 31st August year end.

15 Stock

15 Stock
	2020 2019
	£ 000 £ 000
Teachingmaterials, stationeryand cateringsupplies	14 8
16 Debtors
	2020 2019
	£ 000 £ 000
Trade debtors	6 3
Prepayments	65 160
Accrued income	21 16
Other debtors andprepayments	678 19
	770 198

Trade debtors are the fees due.

Other debtors and prepayments include supplies purchased for the academic year commencing September 2020. It also includes £639,000 with respect to pupil devices provided to safeguard against further periods of remote learning.

17 Current asset investments

	2020 2019
	£ 000 £ 000
Short term investments	2,146 1,649

Short term investments comprise amounts held in UK Term Bank Accounts. All amounts are designated and restricted funds for bursaries and capital projects.

18 Cash and cash equivalents

	2020 2019
	£ 000 £ 000
Cash at bank	3,782 3,431

Cash at bank represents the unrestricted cash balances.

36

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

19 Creditors: amounts falling due within one year

19 Creditors: amounts falling due within one year
	2020 2019
	£ 000 £ 000
Trade creditors	222 352
Other loans	30 30
Other taxation and social security	149 157
Fee deposits & fees in advance	440 491
Other creditors and accruals	1,450 1,120
TPA & otherpension contributions	123 100
	2,414 2,250

Other creditors and accruals falling due within one year includes £255,000 in respect of pupil devices.

20 Creditors: amounts falling due after one year

20 Creditors: amounts falling due after one year
	2020 2019
	£ 000 £ 000
Other loans	165 240
Fee deposits & fees in advance	507 409
Other creditors	376 -
	1,048 649

Other creditors and accruals falling due after one year includes £376,000 in respect of pupil devices.

21 Provisions

21 Provisions
	Pension contributions provision Total
	£ 000 £ 000
At 1 September 2019	(165) (165)
Utilised during the period	29 29
Decrease from fair value adjustments	(1) (1)
Decrease due topassage of time and change in discount rate	(2) (2)
At 31 August 2020	(135) (165)

37

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

22 Contingent liabilities

The Schools have been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Plan based on the financial position of the Plan as at 30 September 2019. As of this date the estimated employer debt was £396,100 (30 September 2018 : £379,614).

23 Pension and other schemes

TEACHERS' PENSION SCHEME

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible f or membership.

Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go ‘basis - contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers' Pension Scheme

As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay a charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

The next valuation is expected to take effect in 2023.

A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Scheme website at the following location:

https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuationreport.aspx

38

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Scheme changes

In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and fire fighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, have rejected the Government’s application for permission to appeal the Court of Appeal’s ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

Since then, claims have also been lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS.

A final remedy will be determined once the results of the consultation are established.

In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is currently working to establish what changes are necessary to address this discrimination.

Any impact of these events will be taken into account when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data.

SUPPORT STAFF SCHEME - THE PENSIONS TRUST

The Schools participate in the Pension Trust's Growth Plan (the Plan). The Plan is funded and is not contracted out of the state scheme. It is a multi-employer pension plan.

Contributions paid into the Plan up to and including September 2001 were converted to defined amounts of pension payable from Normal Retirement Date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the Plan or by the purchase on an annuity.

It is not possible for the Schools to obtain sufficient information to enable it to account for the defined benefit element of the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

39

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

The scheme is classified as a 'last-man standing arrangement'. Therefore, the charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme. The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

The deficit contribution payable by the Schools is £29,352 per annum from 1 April 2016 to 30 September 2028 (payable monthly and increasing by 3% each on 1st April).

Where the Schools have agreed to a deficit funding arrangement the Schools recognise a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

discount rate detailed in these disclosures. The unwinding of the finance cost.	discount rate is recognised as a
	2020 2019
	£ 000 £ 000
The present value of provision at 31st August was:	139 165
	2020 2019
	£ 000 £ 000
Reconciliation of opening and closing provision
Provision at start of the period	165 289
Unwinding of the discount factor (interest expense)	2 5
Deficit contribution paid	(29) (36)
Remeasurements - impact of any change in assumptions	1 3
Remeasurements - amendments to the contribution schedule	- (96)
Provision at end of period	139 165

Assumptions

Rate of Discount applied 0.55% (2019 : 0.97%, 2018 : 1.68%)

The discount rates applied are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

40

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

24 Funds						Other
	**Balance at1 **					recognised
	September	Incoming	Resources			gains	Balance at 31
	2019	resources	expended		Transfers	/(losses)	August 2020
	£ 000	£ 000	£ 000		£ 000	£ 000	£ 000
Unrestricted funds
General
Unrestricted general
funds	12,456	12,012	(11,861)		-	-	12,605
Pension reserve	(165)	-	27		-	(1)	(139)
	12,456	12,012	(11,834)		-	(1)	12,467
Designated
Governors bursaries
fund	324	-	-		-	-	324
Total Unrestricted
funds	12,615	12,012	(11,834)		-	(1)	12,791
Restricted funds
Bursary fund	1,366	853	(348)		82	-	1,953
Capital projects fund	2,570	108	(18)		-	-	2,660
Discretionary/Other	158	69	-		(64)	-	163
Total restricted funds	4,094	1,030	(366)		18	-	4,776
Endowment funds
Permanent
Endowment funds	633	29	-		(18)	(71) 573
Total funds	17,342	13,071	(12,200)		-	(72) 18,141

Unrestricted funds

Unrestricted funds comprise of the surplus arising out of the normal day-to-day running of the Schools.

Designated funds comprise the Governors bursaries fund, which is amounts set aside by Governors for the purpose of bursaries.

Restricted funds

The restricted funds of the charity comprise of funds for use in capital projects and bursaries.

Endowment funds

The endowment funds are balances on donations and grants given for the specific purposes of bursary, scholarship and prize funds.

41

THE BURY GRAMMAR SCHOOLS TRUSTEE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

25 Analysis of net assets between funds

				Endowment
	Unrestricted funds			funds
			Restricted
	General	Designated	funds	Permanent	Total funds
	£ 000	£ 000	£ 000	£ 000	£ 000
Tangible fixed assets	11,889	-	2,568	-	14,457
Fixed asset investments	-	-	-	573	573
Current assets	4,180	324	2,208	-	6,712
Current liabilities	(2,790)	-	-	-	(2,790)
Creditors over 1 year	(672)	-	-	-	(672)
Provisions	(139)	-	-	-	(139)
Total net assets	12,468	324	4,776	573	18,141

26 Related party transactions

Children at the school

Children of four governors are pupils of the school. The governors concerned receive no discount on the fees payable, and at the year end there were no outstanding balances.

James Sharp & Co Stockbrokers

One of the governors is a partner in James Sharp & Co who administers the Schools' investments. All charges relating to the services provided are not material to either party.

Woodcock Howarth & Nuttall

One of the governors is an equity partner in Woodcock Howarth & Nuttall who act as the Schools' solicitor. All transactions are carried out on a commercial basis.

DBD Solutions

One of the governors is a proprietor of DBD Solutions who act as a building services consultant. All transactions are carried out on a commercial basis.

Loan

During the year the school made loan repayments of £75,000 to a related party. The balance on the loan at the year end was £195,000 (2019 : £270,000). There is no interest payable on the loan.

42