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2020-08-31-accounts

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

Registered number: 00004466 Charity number: 526682

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION (A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and Advisers 1
Trustees' report 2 - 9
Independent examiner's report 10 - 11
Consolidated statement of financial activities 12
Consolidated balance sheet 13
Charitable company balance sheet 14
Notes to the financial statements 15 - 36

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees

Mr J D Robertson Mr C C Hubbard Mr G H Pybus Mr K Siviter Mr N A Moss Dr A M Miller Mr W R E L Thompson Mr H S Hackney Mr R S W Peach

Company registered number

00004466

Charity registered number

526682

Registered office

Beechlands, Liverpool College, Mossley Hill, Liverpool, L18 8BG

Company secretary

Mr W R E L Thompson

President

The Rt Hon 19th Earl of Derby DL

Accountants

Grant Thornton UK LLP, Royal Liver Building, Liverpool, L3 1PS

Bankers

Barclays Bank plc, 48b and 50 Lord Street, Liverpool, L2 1TD

Solicitors

Brabners LLP, Horton House, Exchange Flags, Liverpool, L2 3YL

Page 1

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees present their annual report together with the financial statements of The Liverpool College Foundation for the year 1 September 2019 to 31 August 2020.

Introduction

The Trustees, who are also the Directors of the Charitable Company for the purposes of the Companies Act, present their Annual Report together with the Financial Statements of The Liverpool College Foundation, (the Company or Charity) for the year ended 31 August 2020.

The financial statements show the financial affairs of both The Liverpool College Foundation group and the Liverpool College Foundation charitable company. The group consists of the Liverpool College Foundation and the Wilton Trust Fund, for which the Foundation is the Corporate Trustee, and is therefore consolidated as a 100% subsidiary.

The Trustees confirm that the Annual Report and Financial Statements of the group comply with the Charities Act 2011, the Companies Act 2006, The Memorandum and Articles of Association, and Accounting and Reporting by Charities Statement of Recommended Practice (second edition, issued in October 2019) applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

History and objectives of The Liverpool College Foundation

The Liverpool College Foundation was founded in 1840 under its original name Liverpool College and registered in 1869 under the Companies Act 1862 as a company limited by guarantee, No. 00004466 and Registered Charity, No, 526682. Liverpool College was opened by William Ewart Gladstone, the future Prime Minister, whose family were prime movers in the formation of the College and its establishment as an independent school in Liverpool. Its objectives and motto were defined as:

"Non Solum Ingenii Verum Etiam Virtutis" "Not only the Intellect but also the Character" based on "Sound Religion and Useful Learning".

The name of Liverpool College was changed in January 2016 to The Liverpool College Foundation. In this Report, the Company will be referred to as "the Foundation".

The Memorandum and Articles of Association of the Foundation, established in 1869 and last revised in January 2018, is the Foundation's governing document and clearly defines delegation, responsibility and accountability in maintaining its Objects:

"To provide for the inhabitants of Liverpool and others, by the establishment and maintenance of Lectures, School, and other like means, an education suited to their wants upon the most moderate terms; and for this purpose instruction in the doctrines and duties of Christianity, as taught by the Church of England, shall be forever communicated, in combination with literary, scientific, and commercial information. Provided nevertheless that no pupil shall be required as a condition of being admitted or remaining as a pupil, to attend or abstain from attending any Sunday School, place of worship, religious observance, or instruction in religious subjects in any school of the College or elsewhere."

Page 2

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

The Board of Trustees is the governing body of the Foundation, elected by Foundation Members, and the current Trustees are listed on page 1. The recruitment and appointment of new Trustees is undertaken by the Board of Trustees. One third of the Trustees retire from office each year and may stand for re-election at the General Meeting. Nigel Moss and Graham Pybus are eligible for re-election as Trustees by Foundation Members at the forthcoming General Meeting. Dr Anne Miller has given notice of her intention to stand down at this General Meeting.

The specific remits of the Trustees in this year have been:

Chairman  Charles Hubbard  Business Strategy and Planning Graham Pybus Foundation Members  John Robertson Estates  Charles Hubbard  Finance, Treasury and Investment Nigel Moss  Educational Development Fund (the 1840) Graham Pybus Archives  Ken Siviter The Wilton Trust  Howard Hackney 1840 Initiatives  Roger Peach  Old Lerpoolian Society Ric Thompson  Company Secretary Ric Thompson

Mrs Amanda Gemmell has continued to provide invaluable support to the Foundation as Clerk to the Trustees and Accountant.

Two long-standing and distinguished Trustees chose to retire during the period, Ian Lightbody on 22 January 2020, and John Swift on 7 May 2020.

Ian Lightbody was appointed as a Trustee in February 2014 and has played a significant part in the development of the 1840. However, this is only one example of the immense contribution that Ian has made to Liverpool College over his lifetime, and his initials INL are known with affection by generations of OLs and staff. As a student Ian was a member of School House and left the College in 1961 after a term as Head Prefect. He returned as a teacher in 1965, and during his long career he undertook many roles, including Housetutor of Butlers Housemaster of School House and Assistant Principal, subsequently taking up the office of Bursar and Clerk to the Governors. Ian’s involvement with the OL Society and as a Foundation Member and Trustee, with his knowledge of the school and its history, has been invaluable.

John Swift was appointed as a Trustee in January 2015. During the preceding few years John had been one of the driving forces behind the transition of Liverpool College to an Academy which was completed in September 2013 (and is described more fully below). John’s leadership qualities and his strong working relationship with the Principal and the Governors of Liverpool College were instrumental in embracing a complex transaction, and the benefits of this transition have been reflected in the exceptional progress that has been made at the College over the last seven years. John too was a former student, leaving in 1959, and his contribution to the school and the OL Society, and during his influential tenure as Trustee, has been exceptional.

Both Ian and John will be very much missed by the Trustees, and we wish them well. On 7 May 2020 Ric Thompson took over the role of Company Secretary in place of John Swift.

The Foundation provides equal opportunities for all staff.

Page 3

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Foundation's legal commitments

The Foundation has ownership of the freehold of all the Land and Buildings defined under the three Title Deeds which comprise the complete Mossley Hill estate. On 1 September 2013, the Foundation's main school Liverpool College became an Academy formed under a separate Trust, the Liverpool College Independent School Trust (the Academy), a Company and exempt Charity. The Academy is subject to a Funding Agreement between the Trust and the Secretary of State for Education, with a rolling seven-year notice of termination by either party. Being separate Trusts and Corporate Entities, all relationships between the Foundation and the Academy are on an "arms length" basis.

Pursuant to these arrangements, the Foundation entered into a number of Legal Agreements, which are now substantial determinates of its governance and management going forward. These legal commitments are described below.

The Foundation is committed to the following Legal arrangements:

Other Legal Agreements placing obligations on the Foundation and shaping the continuing relationship between the Foundation and the Academy are:

The Foundation has granted to the Academy the use and safekeeping of an inventory of Heirloom Assets, eg Trophies, Portraits, Pictures, Plaques, Honours Boards and Archives, which were excluded from the above Transfer Agreement. A formal Agreement to this effect will shortly be put in place.

The Foundation has also granted the Academy the right to use the Name and Insignia of Liverpool College within the terms of the Objects as defined in The Academy's Memorandum and Articles of Association.

Public benefit

The Trustees have given due consideration to the Charity Commission's published guidance on the operation of the public benefit requirement.

Page 4

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Foundation has contributed significantly to the establishment of the Academy with long-term on-going public benefit:

The Foundation's 1840 Fund and the Wilton Trust Fund both give support to the Academy for Pupil Prizes and Educational Development initiatives.

Activities of the Foundation in 2019/2020

We have continued to build on the Foundation’s work of the previous years with the following key activities:

The LCF Investment Fund

The LCF Investment Fund (or the Fund) was established in December 2015 with funds invested with St James's Place (SJP), with a total investment of the Foundation's cash resources of £720,000. The LCF Investment Fund holds both:

All the monies are held within a number of Sub funds comprising an LCF General Cash Reserves Sub fund and 1840 Sub funds each relating to the purpose for which the money was donated. The 1840 Sub funds are detailed under the next heading of this Report.

As previously reported, we continue to regard the most important issue in the management of the Fund to be our choice of investments and our spread of risk. The Trustees have adopted a strategy based on a wide spread of investment funds and underlying investments, both by way of asset classes and global geography, in order to manage risk and return appropriate to the Fund. SJP execute the strategy but do not manage the Fund on a discretionary basis. The Fund is ring fenced in the name of the Foundation and therefore forms no part of SJP's assets. The Trustees use SJP's significant investment expertise and resources with the aim of maximising the return on the Fund. It is our intention to retain and grow capital in the Fund in order to continue to generate gains and support activities for the future. We monitor the performance of the Fund regularly and meet with SJP during the year to review performance and adjust our investments according to our view on prospective market returns.

During the year, and after a comprehensive review process, the Trustees approved and made a grant of £250,000 to provide critical additional funding to the Academy to enable it to complete the building of a new four classroom block in its Prep School. This grant was funded by a sequence of withdrawals from the LCF Investment Fund.

The performance during the year is reported under the Financial Review heading below.

Page 5

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The LCF Educational Development Fund — the 1840

The management of the LCF Educational Development Fund (the 1840) has continued in accordance with the policy previously established. The Trustees are very mindful of fulfilling the intentions of those who have made donations to the 1840 and of ensuring that money is not advanced to pay for anything which should genuinely be funded from other sources.

The Sub funds of the 1840 currently are:

Following initial plans during last year, we have made strong progress with the development and launch of The Lerpoolian, a website which is aimed at supporting the Academy in a number of ways. These include the strengthening of our relationships with the Old Lerpoolian Society, whose members are alumni of Liverpool College, and the installation of a more accurate and modern method of Membership Record keeping and Communication. Progress has also been made on properly organising and storing/presenting the Archives.

Estate

Work continues to ensure that the approval and licencing processes required under the Lease between the Foundation and the Academy to fulfil the Landlord's and the Tenant's obligations are fully established.

The process is ongoing for the development of the Estate to accommodate a new Boarding House by the conversion of Beechlands and to create facilities for higher pupil numbers in the Prep School.

The Wilton Trust Fund

As described in previous years’ reports, the Foundation is the sole Corporate Trustee of the Wilton Trust Fund, a separate charitable fund whose assets are held in the Thomas Ryder Wilton Bequest, registered charity number 529915. The Wilton Trust Fund is managed under the operational umbrella of the Foundation and is therefore treated as a subsidiary undertaking of the Foundation, but has been included as a separate endowment fund which remains subject to the objectives and principles of the Thomas Ryder Wilton Bequest.

The Wilton Trust Fund continues to support the Academy’s Gifted and Talented programme through a package funded from income generated from the Wilton Trust Fund’s investments. This programme comprises a comprehensive and outstanding range of activities and events on a daily basis which provide opportunities for a significant number of students to enrich their education outside the main curriculum.

Page 6

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Wilton Trust Fund is invested in two M&G funds, the Charifund which is a UK equities investment fund for charities which comprises approximately 65% of the overall portfolio, and the remainder in the Charibond charities fixed interest fund, which is entirely invested in government/investment grade corporate bonds. The combined funds seek primarily to generate income returns, whilst maintaining its capital, to provide the funding to support the Gifted and Talented programme.

The performance during the year is reported under the Financial review below.

Financial review

The group made a deficit for the year ending 31 August 2020 of £391,442 (2019: surplus £1,062,866). This is due to a number of factors.

As described above, a grant of £250,000 was made to the Academy to enable it to complete the building of a new classroom block in its Prep School. This grant was funded by withdrawals from the LCF Investment Fund.

The financial markets suffered from significant falls in value during the first six months of 2020 due to the impact of the Covid-19 pandemic. Accordingly, the LCF Investment Fund valuation decreased during the year by £30,275 (representing 3.3% of the fund valuation at 31 August 2019) (2019: increase £8,929). As a result, including the withdrawal described above, the fund valuation reduced overall during the year from £906,394 to £626,119 at 31 August 2020.

The Wilton Trust Fund valuation also decreased during the year by £97,889 (representing 12.3% of the fund valuation at 31 August 2019) (2019: decrease £13,064), reducing the valuation from £794,041 to £696,152 at 31 August 2020. Despite the valuation decrease, the Wilton Trust Fund continued to generate dividend income totalling £33,006 (2019: £33,336) and granted £34,891 (2019: £29,000) to the Academy to support its Gifted and Talented programme.

In addition to the grants for the classroom building and Gifted and Talented programme, grants of £14,500 were allocated during the year (2019: £1,315). This included £8,000 in relation to the development and launch of The Lerpoolian website, as outlined above. Total administration and governance costs for the year (excluding the recovery of bad and doubtful debts and release of impairment charge) was £18,708 (2019: £22,742). Donations received during the year were £2,311 (2019: £3,450).

Comparisons with the results of the previous year to 31 August 2019 are distorted due to certain exceptional items of income in 2019. These comprised the introduction of The Wilton Trust Fund at a valuation of £808,684, and the release of certain historic accrued balances to income and expenditure totalling £253,549.

As at 31 August 2020 the group's total funds were £1,665,763 (2019: £2,057,205), which the Trustees consider to be satisfactory.

Land and Buildings Valuation and Contingent Liability

On 31 July 2013 the Foundation granted to the Academy a lease, for a term of 125 years, of the whole c. 26 acre school campus and the buildings thereon comprising the school accommodation on what is effectively a full repairing and insuring lease at a peppercorn rent. Unless the Funding Agreement was to be terminated early the Foundation would not have possession of the campus until the expiry of the lease term. Accordingly, the Foundation's interest in the property comprising the campus in these accounts, following the grant of the lease, is valued at the discounted value of that reversionary right on the date of expiry. The initial valuation was therefore £232,000 and is subject to an annual release of the impairment charge. As at 31 August 2020 the valuation was £293,000 (2019: £282,000).

Page 7

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

Reserves policy

The Foundation aims to maintain in available cash coverage of 2 months of running costs. At the financial year end the Foundation held sufficient cash and accessible funds to meet this requirement.

Risk Management

The Trustees have reviewed the risks and uncertainties underlying the Foundation's operations. In their opinion adequate policies and processes have been put in place to ensure that exposure to financial or operational risk is minimised. With regard to the two investment funds it should be noted that the value of the funds' investments can go down as well as up.

Restricted Fund

The Fund of the 1840 Foundation is held under the direct management of the Trustees for use for Educational Development. The 1840 Fund now stands at £433,738 (2019: £453,303).

Plans for forward periods

The Foundation's work is focused on:

In terms of specific objectives in the next year, the Board of Trustees will be particularly focused on:

Trustees' responsibilities statement

The trustees (who are also directors of The Liverpool College Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

Page 8

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

In preparing these financial statements, the trustees are required to:

The trustees 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 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 trustees confirm that:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Trustees on 23 December 2020 and signed on their behalf by:

Mr C C Hubbard Chairman

Date: 22/1/2021

Page 9

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

INDEPENDENT EXAMINER'S REPORT TO THE CORPORATE TRUSTEE OF THE LIVERPOOL COLLEGE FOUNDATION

I report on the accounts of The Liverpool College Foundation (the "charity") for the year ended 31 August 2020, which are set out on pages 12 to 36.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

have not been met, or

Basis of independent examiner's statement

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a comparison of the accounts with the accounting records kept by the charity. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as corporate trustee concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair' view and the report is limited to those matters set out in the statement above.

Respective responsibilities of corporate trustee and examiner

The charity’s corporate trustee is responsible for the preparation of the accounts. The charity’s trustee considers that an audit is not required for this year under section 144(2) of the Charities Act 2011 and that an independent examination is needed.

It is my responsibility to:

Your attention is drawn to the fact that the charity's trustees have prepared the charity's accounts in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) issued in October 2019 in preference to the Statement of Recommended Practice 'Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005)' issued in April 2005 which is referred to in the Charities (Accounts and Reports) Regulations 2008 but has been withdrawn. I understand that the charity's trustees have done this in order for the charity's accounts to give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

Page 10

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

INDEPENDENT EXAMINER'S REPORT TO THE CORPORATE TRUSTEE OF THE LIVERPOOL COLLEGE FOUNDATION

Use of this report

This report is in respect of an examination carried out under section 145 of the Charities Act 2011. This report is made solely to the charity's corporate trustee, as a body, in accordance with the regulations made under section 154 of the Charities Act 2011. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustee, as a body, for my work, for this report or for the opinions I have formed.

Michael J Delf FCA Grant Thornton UK LLP Chartered Accountants Liverpool

Date: 3/2/2021

Page 11

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income and endowments
from:
Donations and legacies
2
Other
3
Investments
4
Transfer of Wilton Trust Fund
6
Total income and
endowments
Expenditure on:
Other
5
Charitable activities
7
Total expenditure
Net income / (expenditure)
before investment
gains/(losses)
Net gains/(losses) on
investments
18
Net income before other
recognised gains and losses
Net movement in funds
Transfers between funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
2020
£
2,311
-
-
-		 Unrestricted
funds
2020
£
2,311
-
-
-		 Restricted
funds
2020
£
-
-
-
-		 Endowment
funds
2020
£
-
-
33,006
-		 Total
funds
2020
£
2,311
-
33,006
-		 Total
funds
2019
£
3,450
81,685
33,586
808,684
927,405
(171,864)
32,268
2,311 - 33,006 35,317
-
261,554		 -
2,150		 -
34,891		 -
298,595
261,554 2,150 34,891 298,595 (139,596)
(259,243)
(12,110)		 (2,150)
(18,165)		 (1,885)
(97,889)		 (263,278)
(128,164)		 1,067,001
(4,135)
(271,353)
(271,353)
(8,728)
779,696
499,615		 (20,315)
(20,315)
-
477,553		 (99,774)
(99,774)
8,728
799,956
708,910		 (391,442)
(391,442)
-
2,057,205		 1,062,866
1,062,866
-
994,339
499,615 457,238 1,665,763 2,057,205

The financial activities above include £2,311 (2019: £85,385) income and £263,704 (2019: £-168,596) expenditure relating to the charitable company.

The notes on pages 15 to 36 form part of these financial statements.

Page 12

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee) REGISTERED NUMBER: 00004466

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors:amounts falling due within one
year
21
Net current assets/(liabilities)
Net assets
Charity Funds
Endowment funds
22
Restricted funds
22
Unrestricted funds
22
Total funds		 £
8,090
4,488
47,210		 2020
£
£
333,000
1,322,271
1,655,271
8,090
-
55,996
64,086
(29,316)
10,492
1,665,763
708,910
457,238
499,615
1,665,763		 2019
£
322,000
1,700,435
2,022,435


34,770
59,788
(49,296)
2,075,205
799.956
477,553
779,696
2,057,205

The group's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The Trustees consider that the group is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Act.

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees on 23 December 2020 and signed on their behalf, by:

Mr C C Hubbard, Chairman

The notes on pages 15 to 36 form part of these financial statements.

22/1/2021 31/1/2021 Mr N A Moss, Treasurer

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DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee) REGISTERED NUMBER: 00004466

CHARITABLE COMPANY BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Tangible assets
17
Investments
18
Current assets
Stocks
19
Debtors
20
Cash at bank and in hand
Creditors:amounts falling due within one
year
21
Net current (liabilities)/ assets
Net assets
Charity Funds
Restricted funds
22
Unrestricted funds
22
Total funds		 £
8,090
4,488
17,561		 2020
£
£
333,000
626,119
959,119
8,090
-
41,353
49,443
(20,588)
(2,266)
956,853
457,238
499,615
956,853		 2019
£
322,000
906,394
1,228,394


28,855
30,139
(32,405)
1,257,249
477,553
779,696
1,257,249

The company’s financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The parent company has taken advantage of section 408 of the Company Act 2006 and has not included its own Statement of Financial Activities in these financial statements. The parent company’s reduction in funds for the year was £300,396 (2019: £262,910).

The financial statements were approved and authorised for issue by the Trustees on 23 December 2020 and signed on their behalf, by:

31/1/2021 22/1/2021 Mr C C Hubbard, Chairman Mr N A Moss, Treasurer

The notes on pages 15 to 36 form part of these financial statements.

Page 14

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the second edition of 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)(issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Liverpool College Foundation (formerly Liverpool College) 'the Company' or 'the Charity' meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The presentational currency of the financial statements is the pound sterling 'GBP'. The amounts included in the financial statements are rounded to the nearest £1.

1.2 Company status

The Company is a company limited by guarantee. The members of the Company are the Trustees named on page 1. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £5 per member of the Company.

The registered office is Beechlands, Liverpool College, Mossley Hill, Liverpool, L18 8BG.

The principal activity is the overall direction, organisation and management of the Foundation as a registered charity and Limited Company under the terms of its Memorandum and Articles of Association as set out in the Trustees' report.

1.3 Going concern

The Trustees consider that it is appropriate to prepare the financial statements on a going concern basis, having reviewed net income and cashflow forecasts for the foreseeable future which is not less than 12 months from the date of approval of these financial statements.

1.4 Basis of consolidation

The group financial statements consolidate those of the charitable company and its subsidiary undertaking drawn up to 31 August 2020 using the purchase method of accounting.

A separate Statement of Financial Activities for the charitable company has not been presented because the Foundation has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Page 15

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies (continued)

1.5 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Endowment funds comprise the Wilton Trust Fund. In accordance with its trust deed, income can be used for unrestricted purposes and its capital is restricted as a permanent endowment in charity law.

Investment income, gains and losses are allocated to the appropriate fund.

1.6 Income

All income is recognised once the Group has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

D onations and legacies

Donations and legacies are included in the Statement of Financial Activities when the Group becomes entitled to them and all pre-conditions have been met.

Grants

Grants of a revenue nature are included in the Statement of Financial Activities once all conditions are met.

Page 16

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies (continued)

1.7 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the Group. Governance costs are those incurred in connection with administration of the Group and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the Group’s operations, including support costs and costs relating to the governance of the Group apportioned to charitable activities.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

1.8 Statement of cash flows

No statement of cash flows is presented, as under FRS 102 the Group is exempt from producing such a statement by virtue of its size.

Page 17

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies (continued)

1.9 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities incorporating income and expenditure account.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. The impairment charge written back relates to the granting of a 125 year peppercorn lease to Liverpool College Independent School Trust on 31 July 2013. The value of the Group’s interest in the property at 31 August 2020 represents the discounted value (using a discount rate of 4% and assuming no growth) of the reversionary right in 118 years (2019: 119 years).

Heirlooms are not depreciated and are included at valuation (see 1.18).

1.10 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains on investments’ in the Statement of financial activities incorporating income and expenditure account.

1.11 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.12 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Page 18

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies (continued)

1.14 Operating leases

Rentals under operating leases are charged to the Statement of financial activities incorporating income and expenditure account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

1.15 Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of financial activities incorporating income and expenditure account.

1.16 Investment income

Dividends are included when receivable.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the Bank.

1.17 Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

A financial liability exists where there is a contractual obligation to deliver cash or another financial asset to another entity, or to exchange financial assets or financial liabilities under potentially unfavourable conditions. In addition, contracts which result in the entity delivering a variable number of its own equity instruments are financial liabilities.

Finance costs and gains or losses relating to financial liabilities are included in the statement of financial activities. The carrying amount of the liability is increased by the finance cost and reduced by payments made in respect of that liability. Finance costs are calculated so as to produce a constant rate of charge on the outstanding liability. Debt issue costs are offset against the debt and amortised over the term of the loan.

1.18 Heritage assets

Heirlooms represent a collection of historic trophies, portraits, pictures, plaques, honours boards and archives. These assets are not subject to depreciation and are revalued periodically.

Page 19

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

1. Accounting Policies (continued)

1.19 Significant adjustments and key areas of estimation uncertainty

The trustees consider there to be no items in the financial statements where they have had to make significant judgements in the process of applying the Charity's accounting policies or key sources of estimation uncertainty.

2. Income from donations and legacies - Group

Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Donations
2,311
-
-
Total 2019
3,450
-
-
Other income - Group
Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Write back of historical
balances no longer due
-
-
-
-
-
-
Total 2019
81,685
-
-
-
Investment income - Group
Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Investment income
-
-
33,006
Bank and other interest
-
-
-
-
-
33,006
Total 2019
250
-
33,336		 Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Donations
2,311
-
-
Total 2019
3,450
-
-
Other income - Group
Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Write back of historical
balances no longer due
-
-
-
-
-
-
Total 2019
81,685
-
-
-
Investment income - Group
Unrestricted
funds
Restricted
funds
Endowment
funds
2020
£
2020
£
2020
£
Investment income
-
-
33,006
Bank and other interest
-
-
-
-
-
33,006
Total 2019
250
-
33,336		 Unrestricted
funds
2020
£
2,311		 Unrestricted
funds
2020
£
2,311		 Restricted
funds
2020
£
-		 Restricted
funds
2020
£
-		 Endowment
funds
2020
£
-		 Endowment
funds
2020
£
-		 Total
funds
2020
£
2,311		 Total
funds
2020
£
2,311		 Total
funds
2019
£
3,450
Total
funds
2019
£
81,685
3,450 - - 3,450
Total
funds
2020
£
-
- - - - -
-
 -
-		 81,685 Total
funds
2019
£
33,336
250
Restricted
funds
2020
£
-
-		 Endowment
funds
2020
£
33,006
-		 Total
funds
2020
£
33,006
-
- - 33,006 33,006 33,586
250 - 33,336 33,586

3. Other income - Group

4. Investment income - Group

Page 20

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

5. Other expenditure - Group

Unrestricted
funds
Restricted
funds
2020
£
2020
£
Fundraising trading
expenses
Write back of historical
balances no longer due
-
-
-
-
Net income from other
expenditure
-
-
Total 2019
(171,864)
-
Transfer of Wilton Trust Fund - Group
Unrestricted
funds
Restricted
funds
2020
£
2020
£
Transfer of Wilton Trust
Fund
-
-
Total 2019
-
-
Analysis of resources expended by expenditure type -
Unrestricted
fund
£
Restricted
fund
£
Charitable activities
252,254
2,150
Governance costs
9,300
-
Total
261,554
2,150
2019:
Charitable activities
(11,547)
1,315
Governance costs
13,500
-
Total
1,953
1,315		 Unrestricted
funds
2020
£
-		 Restricted
funds
2020
£
-		 Restricted
funds
2020
£
-		 Restricted
funds
2020
£
-		 Endowment
funds
2020
£
-		 Endowment
funds
2020
£
-		 Total
funds
2020
£
-		 Total
funds
2020
£
-		 Total
funds
2019
£
(171,864)
(171,864
-
-		 - - -
- - - (171,864)
Total
funds
2019
£
808,684
Total
2019
£

18,768

13,500


32,268
(171,864) - - (171,864)
Restricted
funds
2020
£
-		 Endowment
funds
2020
£
-		 Total
funds
2020
£
-






- - 808,684 808,684
Group
Endowment
fund
£

34,891

-

34,891

29,000

-

29,000






Total
2020
£
289,295
9,300
2,150 34,891
298,595

1,315
_- _
29,000
_- _
18,768
13,500
1,315 29,000 32,268

6. Transfer of Wilton Trust Fund - Group

7. Analysis of resources expended by expenditure type - Group

Page 21

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

8. Analysis of charitable activities expenditure - Group

Grants payable
Support costs
Total
2019:
Grants payable
Support costs
Total
Governance costs - Group
Accountancy costs
2019		 Unrestricted
fund
£
262,350
(10,096)
252,254
-
(11,547)
(11,547)

Unrestricted
funds
2020
£
9,300		 Restricted
fund
£

2,150

-

2,150

1,315

-

1,315
Restricted
funds
2020
£
-		 Endowment
fund
£

34,891

-

34,891

29,000

-

29,000
Endowment
funds
2020
£
-




Total
2020
£
299,391
(10,096)		 Total
2020
£
299,391
(10,096)


Total
2019
£
30,315
(11,547)
18,768
Total
funds
2019
£
13,500


289,295
30,315
(11,547)


18,768

Total
funds
2020
£
9,300
13,500 - - 13,500

9. Governance costs - Group

10. Analysis of grants payable - Group

Unrestricted
fund
£
Restricted
fund
£
Grants to institutions
262,350
2,150
Endowment grants
-
-
Total
262,350
2,150
2019:
Grants to institutions
-
1,315
Endowment grants
-
-
Total
-
1,315		 Unrestricted
fund
£
Restricted
fund
£
Grants to institutions
262,350
2,150
Endowment grants
-
-
Total
262,350
2,150
2019:
Grants to institutions
-
1,315
Endowment grants
-
-
Total
-
1,315		 Endowment
fund
£

-

34,891

34,891

-
29,000

29,000		 Total
2020
£
264,500
34,891
299,391

1,315
29,000
30,315		 Total
2019
£
1,315
29,000
30,315
2,150

1,315
-
1,315

Page 22

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

10. Analysis of grants payable – Group (continued)

Grants were made to Liverpool College Independent School Trust (LCIST) to fund the following programmes:

Classroom buildings
Website development
Gladstone Leadership and Management Programme
Brenikov Music scholarship
School prizes
Gifted and Talented programme		 2020
£
250,000
8,000
4,350
750
1,400
34,891
299,391		 2019
£
-
-
-
-
1,315
29,000
30,315

The Gifted and Talented programme is funded from the Wilton Trust Fund.

11. Support costs – Group

Administration costs
Bad and doubtful debts recovered
Impairment charge written back		 Charitable
activities
£
9,408
(8,504)
(11,000)		 Total
2020
£
9,408
(8,504)
(11,000)		 Total
2019
£
9,242
(9,789)
(11,000)
(10,096) (10,096) (11,547)

Support costs for 2019 comprise charitable activities.

12. Trustee remuneration and expenses - Group

During the year, no Trustees received any remuneration (2019: £Nil) or benefits in kind (2019: £nil). During the year, Trustees received reimbursement of expenses amounting to £2,877 (2019: £2,614).

13. Staff costs - Group

No persons were employed by the Group during the current or prior year.

Page 23

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

14. Independent Examiners remuneration - Group

Governance costs comprise the Independent Examiners remuneration of £6,300 (2019: £8,800), and accounts preparation of £3,000 (2019: £4,700), as set out below:

Independent Examination fee - Foundation
Accounts preparation – Foundation
Independent Examination fee – The Wilton Trust
Onboarding – The Wilton Trust		 2020
£
5,100
3,000
1,200
-		 2019
£
7,000
2,900
1,800
1,800
9,300 13,500

15. Taxation - Group

Factors affecting tax charge for the year

The Company and its subsidiary undertaking have been granted charitable status and are thus exempt from corporation tax in respect of their charitable activities.

16. Operations of subsidiary undertaking

A summary of the results of the Wilton Trust Fund is set out below:

Investment income
Charitable activities
Net (expense) / income
Net losses on investments
Net movement in funds
The net assets and liabilities of the Wilton Trust Fund were:
Investments
Cash at bank and in hand
Creditors: amounts falling due within one year
Net assets
Endowment funds		 2020
£
33,006
(34,891)
(1,885)
(97,889)
(99,774)

2020
£
696,152
29,649
(16,891)		 2020
£
33,006
(34,891)
(1,885)
(97,889)
(99,774)

2020
£
696,152
29,649
(16,891)		 2019
£
33,336
(29,000)

4,336
(13,064)

(99,774)		 (8,728)
2019
£
794,041
14,643
(8,728)
799,956
799,956

2020
£
696,152
29,649
(16,891)
708,910
708,910

Page 24

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

17. Tangible fixed assets - Group and company

Cost
At 1 September 2019 and 31 August 2020
Depreciation and impairment
At 1 September 2019
Impairment charge written back
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Freehold
property
£
4,889,073		 Heirlooms
£
40,000		 Total
£
4,929,073
4,607,073
(11,000)		 -
-		 4,607,073
(11,000)
4,596,073 - 4,596,073
293,000 40,000 333,000
282,000 40,000 322,000

The impairment charge written back relates to the granting of a 125 year peppercorn lease to Liverpool College Independent School Trust on 31 July 2013. The value of the Company's interest in the property at 31 August 2020 represents the discounted value (using a discount rate of 4% and assuming no growth) of the reversionary right in 118 years (2019: 119 years).

Heirlooms represent a collection of historic trophies, portraits, pictures, plaques, honours boards and archives. These assets are not subject to depreciation and are revalued periodically.

Page 25

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

18. Fixed asset investments - The Group

Market value
At 1 September 2019
Withdrawals
Revaluations
At 31 August 2020
Investments at market value comprise:
The LCF Investment Fund
The Wilton Trust Fund
Total market value		 The LCF
Investment
Fund
£
906,394
(250,000)
(30,275)		 The Wilton
Trust Fund
£
794,041
-
(97,889)		 Total
£
1,700,435
(250,000)
(128,164)
626,119 696,152 1,322,271
2020
£
626,119
696,152		 2019
£
906,394
794,041
1,700,435
1,322,271

All the fixed asset investments are held in the UK.

The Company

The charitable company's investments are represented by the LCF Investment Fund above.

Page 26

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

18. Fixed asset investments - The Group (continued)

The Charity invests in a wide spread of investment funds, focused on a mixture of capital, growth and income, whose underlying investments comprise a broad mixture of investments listed both in the UK and overseas.

All investments are carried at their fair value. Investment in equities are all traded in quoted public markets. Holdings in common investments funds are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the Trustees’ Report.

The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield. The Charity has a significant exposure to international companies, the values of which, together with their yields are exposed to exchange rate risk when converting the holdings into sterling.

Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The Charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes that are quoted on recognised stock exchanges. The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments held for the longer term yield a total return and historic studies of quoted financial instruments have shown that volatility in any particular five year period will normally be corrected.

The LCF Investment Fund

The LCF Investment Fund is invested with St James's Place in a wide range of managed funds with the objective of generating growth. These funds cover equity markets in the UK, Europe, North America and Asia, whilst being balanced by property funds and a significant holding in fixed interest and cash. As at 31 August 2020 approximately 40% of the overall fund was invested in fixed interest, cash and property, with the remainder invested in equities.

The Wilton Trust Fund

The Wilton Trust Fund comprises two underlying funds invested with M&G, designated for charities. Approximately 65% is invested in the Equities Investment Fund for Charities (Charifund), which is primarily invested in UK equities. Approximately 35% is invested in the Charibond Charities Fixed Interest Fund, a portfolio of gilt-edged and other fixed interest stocks and deposits designed to produce a high income whilst preserving capital value.

Page 27

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

19. Stocks - Group and company

Liverpool College 175 years of history books
Debtor – Group & company
Amounts recoverable
Creditors: Amounts falling due within one year
Group
2020
£
Accruals
16,327
Grants payable
32,969
49,296		 Company
2020
£
16,327
16,078		 2020
£
8,090		 2019
£
8,090
2020
£
4,488		 2019
£
-
Company
2019
£
11,010
9,578
32,405 20,588

20. Debtor – Group & company

21. Creditors: Amounts falling due within one year

Page 28

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

22. Statement of funds

Statement of funds - Group current year

Balance at
1 September
2019
£
Designated funds
Education Development Fund
354,488
General funds
General Fund
425,208
Total Unrestricted funds
779,696
Endowment funds
Wilton Trust Fund
799,956
Restricted funds
Liverpool College 1840
Foundation
453,303
Brenikov Music Scholarship
24,250
477,553
Total of funds
2,057,205		 Balance at
1 September
2019
£
Designated funds
Education Development Fund
354,488
General funds
General Fund
425,208
Total Unrestricted funds
779,696
Endowment funds
Wilton Trust Fund
799,956
Restricted funds
Liverpool College 1840
Foundation
453,303
Brenikov Music Scholarship
24,250
477,553
Total of funds
2,057,205		 Balance at
1 September
2019
£
Designated funds
Education Development Fund
354,488
General funds
General Fund
425,208
Total Unrestricted funds
779,696
Endowment funds
Wilton Trust Fund
799,956
Restricted funds
Liverpool College 1840
Foundation
453,303
Brenikov Music Scholarship
24,250
477,553
Total of funds
2,057,205		 Income
£
2,300		 Expenditure
Gains/
(Losses) Transfers
£
£
£
-
-
-
(261,554)
(12,110)
(8,728)
(261,554)
(12,110)
(8,728)
(34,891)
(97,889)
8,728
(1,400)
(18,165)
-
(750)
-
-
-
(2,150)
(18,165)
-
(298,595)
(128,164)
-		 Expenditure
Gains/
(Losses) Transfers
£
£
£
-
-
-
(261,554)
(12,110)
(8,728)
(261,554)
(12,110)
(8,728)
(34,891)
(97,889)
8,728
(1,400)
(18,165)
-
(750)
-
-
-
(2,150)
(18,165)
-
(298,595)
(128,164)
-		 Expenditure
Gains/
(Losses) Transfers
£
£
£
-
-
-
(261,554)
(12,110)
(8,728)
(261,554)
(12,110)
(8,728)
(34,891)
(97,889)
8,728
(1,400)
(18,165)
-
(750)
-
-
-
(2,150)
(18,165)
-
(298,595)
(128,164)
-		 Expenditure
Gains/
(Losses) Transfers
£
£
£
-
-
-
(261,554)
(12,110)
(8,728)
(261,554)
(12,110)
(8,728)
(34,891)
(97,889)
8,728
(1,400)
(18,165)
-
(750)
-
-
-
(2,150)
(18,165)
-
(298,595)
(128,164)
-		 Balance at
31 August
2020
£
356,788
425,208 11 (261,554) (12,110) 142,827
779,696 2,311 (261,554) (12,110) 499,615
799,956 33,006 (34,891) (97,889) 708,910
453,303
24,250		 -
-		 (1,400)
(750)		 (18,165)
-		 433,738
23,500
477,553 - (2,150) (18,165) **- ** 457,238
2,057,205 35,317 (298,595) (128,164) - 1,665,763

Page 29

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

Statement of funds - Group prior year

Designated funds
Education Development Fund
General funds
General Fund
Total Unrestricted funds
Endowment funds
Wilton Trust Fund
Restricted funds
Liverpool College 1840 Foundation
Brenikov Music Scholarship
Total of funds		 Balance at
1 September
2018
£
351,038		 Income
£
3,450		 Expenditure
£
-		 Gains/
(Losses)
£
-
Balance at
31 August
2019
£
354,488
169,786 81,935 169,911 3,576 425,208
520,824 85,385 169,911 3,576 779,696
- 842,020 (29,000) (13,064) 799,956
449,265
24,250		 -
-		 (1,315)
-		 5,353
-		 453,303
24,250
473,515 - (1,315) 5,353 477,553
994,339 927,405 139,596 (4,135) 2,057,205

Page 30

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

Statement of funds – Charitable company current year

Balance at
1 September
2019
Designated funds
Education Development Fund
354,488
General funds
General Fund
425,208
Total Unrestricted funds
779,696
Restricted funds
Liverpool College 1840
Foundation
453,303
Brenikov Music Scholarship
24,250
477,553
Total of funds
1,257,249		 Balance at
1 September
2019
Designated funds
Education Development Fund
354,488
General funds
General Fund
425,208
Total Unrestricted funds
779,696
Restricted funds
Liverpool College 1840
Foundation
453,303
Brenikov Music Scholarship
24,250
477,553
Total of funds
1,257,249		 Income
2,300		 Expenditure
-		 Gains/
(Losses)
-		 Transfers
-
(8,728)
(8,728)
-
-		 Transfers
-
(8,728)
(8,728)
-
-		 Balance at
31 August
2020
356,788
425,208 11 (261,554) (12,110) 142,827
779,696 2,311 (261,554) (12,110) 499,615
453,303
24,250		 -
-		 (1,400)
(750)		 (18,165)
-		 433,738
23,500
477,553 - (2,150)
(263,704)		 (18,165) - 457,238
1,257,249 2,311 (30,275) (8,728) 956,853

Page 31

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

22. Statement of funds (continued)

Statement of funds – Charitable company prior year

Designated funds
Education Development Fund
General funds
General Fund
Total Unrestricted funds
Restricted funds
Liverpool College 1840 Foundation
Brenikov Music Scholarship
Total of funds		 Balance at
1 September
2018
£
351,038		 Income
£
3,450		 Expenditure
£
-		 Gains/
(Losses)
£
-
Balance at
31 August
2019
£
354,488
169,786 81,935 169,911 3,576 425,208
520,824 85,385 169,911 3,576 779,696
449,265
24,250		 -
-		 (1,315)
-		 5,353
-		 453,303
24,250
473,515 - (1,315) 5,353 477,553
994,339 85,385 168,596 8,929 1,257,249

Page 32

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

Notes

i) Unrestricted funds

The general fund and the Education Development Fund are unrestricted.

The Education Development Fund has been invested for income and growth.

ii) Restricted funds

a) The Liverpool College 1840 Foundation

b) The Brenikov Music Scholarship

iii) Endowment funds

c) The Wilton Trust Fund

Page 33

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

22. Analysis of net assets between funds

Analysis of net assets between funds - the Group – current year

Unrestricted
funds
2020
£
Tangible fixed assets
333,000
Fixed asset investments
100,857
Current assets
30,139
Creditors due within one year
35,619
499,615
Analysis of net assets between funds - the Group – prior year
Unrestricted
funds
2019
£
Tangible fixed assets
322,000
Fixed asset investments
362,967
Current assets
32,204
Creditors due within one year
62,525
779,696		 Unrestricted
funds
2020
£
333,000
100,857
30,139
35,619		 Restricted
funds
2020
£
-
525,262
-
(68,024)		 Endowment
funds
2020
£
-
696,152
29,649
(16,891)		 Total
funds
2020
£
333,000
1,322,271
59,788
(49,296)
499,615 457,238 708,910 1,665,763
Restricted
funds
2019
£
-
543,427
17,239
(83,113)		 Endowment
funds
2019
£
-
794,041
14,643
(8,728)		 Total
funds
2019
£
322,000
1,700,435
64,086
(29,316)
779,696 477,553 799,956 2,057,205

Page 34

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

22. Analysis of net assets between funds (continued)

Analysis of net assets between funds - current year - the charitable company

Unrestricted
funds
2020
£
Tangible fixed assets
333,000
Fixed asset investments
100,857
Current assets
30,139
Creditors due within one year
35,619
499,615
Analysis of net assets between funds - the charitable company
Unrestricted
funds
2019
£
Tangible fixed assets
322,000
Fixed asset investments
362,967
Current assets
32,204
Creditors due within one year
62,525
779,696		 Unrestricted
funds
2020
£
333,000
100,857
30,139
35,619		 Restricted
funds
2020
£
-
525,262
-
(68,024)		 Total
funds
2020
£
333,000
626,119
30,139
(32,405)
499,615 457,238 956,853
– prior year
Restricted
funds
2019
£
-
543,427
17,239
(83,113)		 Total
funds
2019
£
322,000
906,443
49,443
(20,588)
779,696 477,553 1,257,249

Page 35

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

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

23. Contingent liabilities

In July 2013 the Company received £2,500,000 from the Department for Education (DfE). The money is repayable in the event that the Funding Agreement between Liverpool College Independent School Trust and the DfE is terminated.

24. Capital commitments

The group had no capital commitments at 31 August 2020 or 31 August 2019.

25. Liverpool College Independent School Trust (LCIST)

The activities of the main school were transferred from the Company to LCIST to operate an Academy from 1 September 2013.

On 31 July 2013, the Company granted a 125 lease of the whole school campus and the buildings thereon at a peppercorn rent. During that year, a grant of £2,500,000 was received from the Department for Education. The loan is repayable in the event that the funding agreement between LCIST and the Department for Education is terminated.

26. Post balance sheet events

The World Health Organisation declared the spread of Coronavirus as a global pandemic on 11 March 2020. The Trustees have disclosed the effect on the financial statements for this reporting period in the Trustees’ Report, notably the downward valuation of the invested funds. The impact since the year-end has not been significant.

Page 36

DocuSign Envelope ID: 06E160B3-0BE9-4D26-8E50-D13DC9EFDCB7

THE LIVERPOOL COLLEGE FOUNDATION

(A company limited by guarantee)

DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Income
Foundation income and legacies
Other interest
Investments
Total Income
Less: Expenditure
Administration costs
Bad debts recovered
Governance Accountancy costs
Endowment grants
Classroom buildings grant
Other grants
Total Expenditure
Net expenditure from charitable sources
Other income and expenditure
Impairment charge written back
Losses on revaluations of investment assets
Total Other income and expenditure
Net (expenditure)/ income for the year
before exceptional items
Transfer of Wilton Trust Fund
Exceptional items – deposits written back
Exceptional items - accruals written back
Exceptional items
Net (expenditure)/income for the year		 2,311
-
33,006		 2020
£
35,317
(309,595)		 2020
£
35,317
(309,595)		 3,450
250
33,336


2019
£
37,036
43,268
(6,232)
6,865
633
808,684
81,685
171,864
1,062,233
1,062,866
9,408
(8,504)
9,300
34,891
250,000
14,500		 9,242
(9,789)
13,500
29,000
-
1,315
11,000
(128,164)		 11,000
(4,135)
(274,278)
(117,164)
(391,442)



THIS SCHEDULE IS NOT FOR PUBLICATION

Page 37