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 

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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." 

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## **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. 

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**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: 

- An Agreement regarding the Discharge of the Debt arrangement between the Foundation and Barclays Bank, the institution of a re-placement grant from the Department for Education (DfE) to the Foundation, repayable within 12 months of the termination of the Funding Agreement between the Academy and the DfE, and the Security against this Loan obtained from the Foundation in favour of the DfE. 

- The Legal Charge on the Freehold Property of the Foundation in favour of the DfE arising from the above Security commitment. 

- Agreement regarding the Transfer Arrangements from the Foundation to The Academy covering Employees, Included Assets, the shares of Liverpool College Enterprises Ltd, Contracts, Employee and 

- Pupil Records and the List of Excluded Assets, 

- Agreement regarding the Lease of the Foundation's Land and Premises by the Academy at a 

- peppercorn rent for a Term of 125 years, or on the earlier Termination of the Funding Agreement, and a Supplementary Agreement re the Use of the Land and Premises by the Academy. Under the terms of 

- this Lease, the Academy as the "The Tenant" is responsible for the full insurance, upkeep, repair and maintenance of all the land and buildings comprising the Estate and for obtaining the consent of the Foundation as "The Landlord" for any proposed structural alterations or variations of the Property. 

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

- The Memorandum & Articles of Association of the Academy and the appointment of its Members and Governors. 

- The Funding Agreement between the DfE and the Academy. 

- A Memorandum of Understanding with the Diocese of Liverpool regarding the classification of the Academy as a Church of England School. 

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. 

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## **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 grant of a 125 year Lease to the Academy on all its Land & Buildings, coterminous with its Funding Agreement with the DfE, at a peppercorn rent, valued in the Academy's Accounts on the date of grant at 

- £32m 

- The gifting of Assets under the Transfer Agreement at a depreciated book value of £1.5m, in business value terms worth significantly more 

- Expenditures of £289,000 incurred in the setting-up of the Academy 

- The grant of the use of the Name and Insignia of Liverpool College 

- The use and safekeeping of an inventory of Heirlooms 

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: 

- The general cash reserves of LCF 

- The invested cash of the 1840 Fund. 

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. 

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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: 

- The Original 1840 General Donations 

- Academy School Named Prizes 

- The LCF Vice Presidents' Prize 

- The Collin Thompson Imagineering Prize 

- Chapel Refurbishment 

- Design & Technology Refurbishment 

- The Brenikov Bursary for Music 

- The Gladstone Leadership & Management Programme 

- Music 

- Science 

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. 

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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). 

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**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: 

- 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 

- The Foundation's role as Landlord under the Lease of its Freehold Land and Buildings to the Academy 

- The management of its Financial Assets and Funds 

- The management of the Educational Development Fund – the 1840 – and the Wilton Trust Fund 

- The Foundation's obligations under all Legal Agreements 

- Its relationships with the Academy. 

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

- Continuing the effective management of the LCF Investment Fund and The Wilton Trust Fund 

- Implementing the way forward on the 1840 Fund 

- Strengthening the relationships of the Foundation with the Academy and working with it to implement academic initiatives brought forward for support which are within the Foundation’s means 

- Continuing to seek to recruit new Trustees to provide succession to the existing Board. 

## **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. 

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## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

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

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: 

- so far as each trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the trustees have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom 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 

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## **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: 

- which gives me reasonable cause to believe that in any material respect, the requirements: 

   - to keep accounting records in accordance with section 130 of the Charities Act 2011; and 

   - to prepare accounts which accord with the accounting records; and 

   - to comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 

have not been met, or 

- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 

## **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: 

- examine the accounts under section 145 of the Charities Act 2011; 

- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011; and 

- to state whether particular matters have come to my attention. 

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. 

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## **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 

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## **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**<br>**Income and endowments**<br>**from:**<br>Donations and legacies<br>2<br>Other<br>3<br>Investments<br>4<br>Transfer of Wilton Trust Fund<br>6<br>**Total income and**<br>**endowments**<br>**Expenditure on:**<br>Other<br>5<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net income / (expenditure)**<br>**before investment**<br>**gains/(losses)**<br>Net gains/(losses) on<br>investments<br>18<br>**Net income before other**<br>**recognised gains and losses**<br>**Net movement in funds**<br>**Transfers between funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**2,311**<br>**-**<br>**-**<br>**-**|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**2,311**<br>**-**<br>**-**<br>**-**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**-**<br>**-**<br>**-**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**-**<br>**33,006**<br>**-**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**2,311**<br>**-**<br>**33,006**<br>**-**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_3,450_<br>_81,685_<br>_33,586_<br>_808,684_<br>_927,405_<br>_(171,864)_<br>_32,268_|
|---|---|---|---|---|---|---|
||**2,311**||**-**|**33,006**|**35,317**||
||**-**<br>**261,554**||**-**<br>**2,150**|**-**<br>**34,891**|**-**<br>**298,595**||
||**261,554**||**2,150**|**34,891**|**298,595**|_(139,596)_|
||**(259,243)**<br>**(12,110)**||**(2,150)**<br>**(18,165)**|**(1,885)**<br>**(97,889)**|**(263,278)**<br>**(128,164)**|_1,067,001_<br>_(4,135)_|
||**(271,353)**<br>**(271,353)**<br>**(8,728)**<br>**779,696**<br>**499,615**||**(20,315)**<br>**(20,315)**<br>**-**<br>**477,553**|**(99,774)**<br>**(99,774)**<br>**8,728**<br>**799,956**<br>**708,910**|**(391,442)**<br>**(391,442)**<br>**-**<br>**2,057,205**|_1,062,866_<br>_1,062,866_<br>_-_<br>_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**<br>**Fixed assets**<br>Tangible assets<br>17<br>Investments<br>18<br>**Current assets**<br>Stocks<br>19<br>Debtors<br>20<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within one<br>year<br>21<br>**Net current assets/(liabilities)**<br>**Net assets**<br>**Charity Funds**<br>Endowment funds<br>22<br>Restricted funds<br>22<br>Unrestricted funds<br>22<br>**Total funds**|**£**<br>**8,090**<br>**4,488**<br>**47,210**|**2020**<br>**£**<br>_£_<br>**333,000**<br>**1,322,271**<br>**1,655,271** <br>_8,090_ <br>_-_ <br>_55,996_<br>_64,086_<br>_(29,316)_<br>**10,492**<br>**1,665,763**<br>**708,910** <br>**457,238**<br>**499,615**<br>**1,665,763**|_2019_<br>_£_<br>_322,000_<br>_1,700,435_|
|---|---|---|---|
||||_2,022,435_<br> <br> <br>_34,770_|
||**59,788**<br>**(49,296)**|||
|||||
||||_2,075,205_|
||||_799.956_<br>_477,553_<br>_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** 

Page 13 



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**<br>**Fixed assets**<br>Tangible assets<br>17<br>Investments<br>18<br>**Current assets**<br>Stocks<br>19<br>Debtors<br>20<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within one<br>year<br>21<br>**Net current (liabilities)/ assets**<br>**Net assets**<br>**Charity Funds**<br>Restricted funds<br>22<br>Unrestricted funds<br>22<br>**Total funds**|**£**<br>**8,090**<br>**4,488**<br>**17,561**|||**2020**<br>**£**<br>_£_<br>**333,000**<br>**626,119**<br>**959,119** <br>_8,090_ <br>_-_ <br>_41,353_<br>_49,443_<br>_(20,588)_<br>**(2,266)**<br>**956,853**<br>**457,238**<br>**499,615**<br>**956,853**|_2019_<br>_£_<br>_322,000_<br>_906,394_|
|---|---|---|---|---|---|
||||||_1,228,394_<br> <br> <br>_28,855_|
||**30,139**<br>**(32,405)**|||||
|||||||
||||||_1,257,249_|
||||||_477,553_<br>_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**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Donations<br>**2,311**<br>**-**<br>**-**<br>_Total 2019_<br>_3,450_<br>_-_<br>_-_<br>**Other income - Group**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Write back of historical<br>balances no longer due<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>_Total 2019_<br>_81,685_<br>_-_<br>_-_<br>_-_<br>**Investment income - Group**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Investment income<br>**-**<br>**-**<br>**33,006**<br>Bank and other interest<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**33,006**<br>_Total 2019_<br>_250_<br>_-_<br>_33,336_|**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Donations<br>**2,311**<br>**-**<br>**-**<br>_Total 2019_<br>_3,450_<br>_-_<br>_-_<br>**Other income - Group**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Write back of historical<br>balances no longer due<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>_Total 2019_<br>_81,685_<br>_-_<br>_-_<br>_-_<br>**Investment income - Group**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Investment income<br>**-**<br>**-**<br>**33,006**<br>Bank and other interest<br>**-**<br>**-**<br>**-**<br>**-**<br>**-**<br>**33,006**<br>_Total 2019_<br>_250_<br>_-_<br>_33,336_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**2,311**|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**2,311**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**2,311**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**2,311**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_3,450_|
|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||_Total_<br>_funds_<br>_2019_<br>_£_<br>_81,685_|
|||_3,450_|||_-_|_-_||_3,450_|||
|||||||||**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**|||
||**-**||**-**||**-**|||**-**||_-_|
||||_-_<br>||_-_<br>_-_|||_81,685_||_Total_<br>_funds_<br>_2019_<br>_£_<br>_33,336_<br>_250_|
||||**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**-**||**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**33,006**<br>**-**|||**Total**<br>**funds**<br>**2020**<br>**£**<br>**33,006**<br>**-**|||
||**-**||**-**||**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**<br>**funds**<br>**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>**Fundraising trading**<br>**expenses**<br>Write back of historical<br>balances no longer due<br>**-**<br>**-**<br>**-**<br>**-**<br>Net income from other<br>expenditure<br>**-**<br>**-**<br>_Total 2019_<br>_(171,864)_<br>_-_<br>**Transfer of Wilton Trust Fund - Group**<br>**Unrestricted**<br>**funds**<br>**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**2020**<br>**£**<br>Transfer of Wilton Trust<br>Fund<br>**-**<br>**-**<br>_Total 2019_<br>_-_<br>_-_<br>**Analysis of resources expended by expenditure type -**<br>**Unrestricted**<br>**fund**<br>**£**<br>**Restricted**<br>**fund**<br>**£**<br>Charitable activities<br>**252,254**<br>**2,150**<br>Governance costs<br>**9,300**<br> **- **<br>Total<br>**261,554**<br>**2,150**<br>_2019:_<br>_Charitable activities_<br>_(11,547)_<br>_1,315_<br>_Governance costs_<br>_13,500_<br> _- _<br>_Total_<br>_1,953_<br>_1,315_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**|_Total_<br>_funds_<br>_2019_<br>_£_<br>_(171,864)_<br>_(171,864_|
|---|---|---|---|---|---|---|---|---|---|
||**-**<br>**-**|**-**|||**-**||**-**|||
|||**-**|||**-**||**-**||_(171,864)_<br>_Total_<br>_funds_<br>_2019_<br>_£_<br>_808,684_<br>_Total_<br>_2019_<br>_£_<br> <br>_18,768_<br> <br>_13,500_<br> <br> <br>_32,268_<br> <br> <br>|
||_(171,864)_|_-_|||_-_||_(171,864)_|||
|||**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|||**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**||**Total**<br>**funds**<br>**2020**<br>**£**<br>**-**|||
||||||||||<br> <br> <br> <br> <br> <br>|
||_-_|_-_|||_808,684_||_808,684_|||
||||||**Group**<br>**Endowment**<br>**fund**<br>**£**<br> <br>**34,891**<br> <br> **- **<br> <br>**34,891**<br> <br>_29,000_<br> <br> _- _<br> <br>_29,000_||<br> <br> <br> <br> <br> <br> <br>|**Total**<br>**2020**<br>**£**<br>**289,295**<br>**9,300**||
|||||**2,150**||**34,891**||<br>**298,595**||
|||||<br>_1,315_<br> _- _||<br>_29,000_<br> _- _||<br>_18,768_<br>_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<br>Support costs<br>Total<br>_2019:_<br>_Grants payable_<br>_Support costs_<br>_Total_<br>**Governance costs - Group**<br>Accountancy costs<br>_2019_|**Unrestricted**<br>**fund**<br>**£**<br>**262,350**<br>**(10,096)**<br>**252,254**<br>_-_<br>_(11,547)_<br>_(11,547)_<br> <br>**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**9,300**|**Restricted**<br>**fund**<br>**£**<br> <br>**2,150**<br> <br> **- **<br> <br>**2,150**<br> <br>_1,315_<br> <br> _- _<br> <br>_1,315_<br>**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**|**Endowment**<br>**fund**<br>**£**<br> <br>**34,891**<br> <br> **- **<br> <br>**34,891**<br> <br>_29,000_<br> <br> _- _<br> <br>_29,000_<br>**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**|<br> <br> <br> <br> <br>||**Total**<br>**2020**<br>**£**<br>**299,391**<br>**(10,096)**|**Total**<br>**2020**<br>**£**<br>**299,391**<br>**(10,096)**|<br> <br> <br>|_Total_<br>_2019_<br>_£_<br>_30,315_<br>_(11,547)_<br>_18,768_<br>_Total_<br>_funds_<br>_2019_<br>_£_<br>_13,500_|
|---|---|---|---|---|---|---|---|---|---|
||||||<br>|<br>**289,295**<br>_30,315_<br>_(11,547)_||||
|||||||<br>|<br>_18,768_|||
||||||||<br>**Total**<br>**funds**<br>**2020**<br>**£**<br>**9,300**|||
||_13,500_|_-_|_-_||||_13,500_|||



## **9. Governance costs - Group** 

## **10. Analysis of grants payable - Group** 

|**Unrestricted**<br>**fund**<br>**£**<br>**Restricted**<br>**fund**<br>**£**<br>Grants to institutions<br>**262,350**<br>**2,150**<br>Endowment grants<br> **- **<br> **- **<br>Total<br>**262,350**<br>**2,150**<br>_2019:_<br>_Grants to institutions_<br>_-_<br>_1,315_<br>_Endowment grants_<br> _- _<br> _-_<br>_Total_<br>_-_<br>_1,315_|**Unrestricted**<br>**fund**<br>**£**<br>**Restricted**<br>**fund**<br>**£**<br>Grants to institutions<br>**262,350**<br>**2,150**<br>Endowment grants<br> **- **<br> **- **<br>Total<br>**262,350**<br>**2,150**<br>_2019:_<br>_Grants to institutions_<br>_-_<br>_1,315_<br>_Endowment grants_<br> _- _<br> _-_<br>_Total_<br>_-_<br>_1,315_|**Endowment**<br>**fund**<br>**£**<br> <br>**-**<br> <br>**34,891**<br> <br>**34,891**<br> <br>_-_<br>_29,000_<br> <br>_29,000_|**Total**<br>**2020**<br>**£**<br>**264,500**<br>**34,891**<br>**299,391**<br> <br>_1,315_<br>_29,000_<br>_30,315_|_Total_<br>_2019_<br>_£_<br>_1,315_<br>_29,000_<br>_30,315_|
|---|---|---|---|---|
||**2,150**||||
||<br>_1,315_<br> _-_||||
||_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<br>Website development<br>Gladstone Leadership and Management Programme<br>Brenikov Music scholarship<br>School prizes<br>Gifted and Talented programme|**2020**<br>**£**<br>**250,000**<br>**8,000**<br>**4,350**<br>**750**<br>**1,400**<br>**34,891**<br>**299,391**|_2019_<br>_£_<br>_-_<br>_-_<br>_-_<br>_-_<br>_1,315_<br>_29,000_|
|---|---|---|
|||_30,315_|



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

## **11. Support costs – Group** 

|Administration costs<br>Bad and doubtful debts recovered<br>Impairment charge written back|**Charitable**<br>**activities**<br>**£**<br>**9,408**<br>**(8,504)**<br>**(11,000)**|**Total**<br>**2020**<br>**£**<br>**9,408**<br>**(8,504)**<br>**(11,000)**|_Total_<br>_2019_<br>_£_<br>_9,242_<br>_(9,789)_<br>_(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<br>Accounts preparation – Foundation<br>Independent Examination fee – The Wilton Trust<br>Onboarding – The Wilton Trust|**2020**<br>**£**<br>**5,100**<br>**3,000**<br>**1,200**<br>**-**|_2019_<br>_£_<br>_7,000_<br>_2,900_<br>_1,800_<br>_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<br>Charitable activities<br>Net (expense) / income<br>Net losses on investments<br>Net movement in funds<br>The net assets and liabilities of the Wilton Trust Fund were:<br>Investments<br>Cash at bank and in hand<br>Creditors: amounts falling due within one year<br>Net assets<br>Endowment funds|||**2020**<br>**£**<br>33,006<br>(34,891)<br>(1,885)<br>(97,889)<br>(99,774)<br> <br>**2020**<br>**£**<br>696,152<br>29,649<br>(16,891)|**2020**<br>**£**<br>33,006<br>(34,891)<br>(1,885)<br>(97,889)<br>(99,774)<br> <br>**2020**<br>**£**<br>696,152<br>29,649<br>(16,891)|**_2019_**<br>**_£_**<br>_33,336_<br>_(29,000)_|
|---|---|---|---|---|---|
||||||<br>_4,336_<br>_(13,064)_|
||||<br>(99,774)||_(8,728)_<br>**_2019_**<br>**_£_**<br>_794,041_<br>_14,643_<br>_(8,728)_<br>_799,956_<br>_799,956_|
||||<br>**2020**<br>**£**<br>696,152<br>29,649<br>(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**<br>At 1 September 2019 and 31 August 2020<br>**Depreciation and impairment**<br>At 1 September 2019<br>Impairment charge written back<br>At 31 August 2020<br>**Net book value**<br>At 31 August 2020<br>_At 31 August 2019_|**Freehold**<br>**property**<br>**£**<br>**4,889,073**|**Heirlooms**<br>**£**<br>**40,000**|**Total**<br>**£**<br>**4,929,073**|
|---|---|---|---|
||**4,607,073**<br>**(11,000)**|**-**<br>**-**|**4,607,073**<br>**(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**<br>At 1 September 2019<br>Withdrawals<br>Revaluations<br>At 31 August 2020<br>**Investments at market value comprise:**<br>The LCF Investment Fund<br>The Wilton Trust Fund<br>Total market value|**The LCF**<br>**Investment**<br>**Fund**<br>**£**<br>**906,394**<br>**(250,000)**<br>**(30,275)**|**The Wilton**<br>**Trust Fund**<br>**£**<br>**794,041**<br>**-**<br>**(97,889)**|**Total**<br>**£**<br>**1,700,435**<br>**(250,000)**<br>**(128,164)**|
|---|---|---|---|
||**626,119**|**696,152**|**1,322,271**|
|||**2020**<br>**£**<br>**626,119**<br>**696,152**|_2019_<br>_£_<br>_906,394_<br>_794,041_<br>_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<br>**Debtor – Group & company**<br>Amounts recoverable<br>**Creditors: Amounts falling due within one year**<br>**Group**<br>**2020**<br>**£**<br>Accruals<br>**16,327**<br>Grants payable<br>**32,969**<br>**49,296**|**Company**<br>**2020**<br>**£**<br>**16,327**<br>**16,078**||**2020**<br>**£**<br>**8,090**||_2019_<br>_£_<br>_8,090_|
|---|---|---|---|---|---|
||||**2020**<br>**£**<br>**4,488**||_2019_<br>_£_<br>_-_|
||||||_Company_<br>_2019_<br>**_£_**<br>_11,010_<br>_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**<br>**1 September**<br>**2019**<br>**£**<br>**Designated funds**<br>Education Development Fund<br>**354,488**<br>**General funds**<br>General Fund<br>**425,208**<br>Total Unrestricted funds<br>**779,696**<br>**Endowment funds**<br>Wilton Trust Fund<br>**799,956**<br>**Restricted funds**<br>Liverpool College 1840<br>Foundation<br>**453,303**<br>Brenikov Music Scholarship<br>**24,250**<br>**477,553**<br>Total of funds<br>**2,057,205**|**Balance at**<br>**1 September**<br>**2019**<br>**£**<br>**Designated funds**<br>Education Development Fund<br>**354,488**<br>**General funds**<br>General Fund<br>**425,208**<br>Total Unrestricted funds<br>**779,696**<br>**Endowment funds**<br>Wilton Trust Fund<br>**799,956**<br>**Restricted funds**<br>Liverpool College 1840<br>Foundation<br>**453,303**<br>Brenikov Music Scholarship<br>**24,250**<br>**477,553**<br>Total of funds<br>**2,057,205**|**Balance at**<br>**1 September**<br>**2019**<br>**£**<br>**Designated funds**<br>Education Development Fund<br>**354,488**<br>**General funds**<br>General Fund<br>**425,208**<br>Total Unrestricted funds<br>**779,696**<br>**Endowment funds**<br>Wilton Trust Fund<br>**799,956**<br>**Restricted funds**<br>Liverpool College 1840<br>Foundation<br>**453,303**<br>Brenikov Music Scholarship<br>**24,250**<br>**477,553**<br>Total of funds<br>**2,057,205**|**Income**<br>**£**<br>**2,300**|**Expenditure**<br>**Gains/**<br>**(Losses) Transfers**<br>**£**<br>**£**<br>**£**<br>**-**<br>**-**<br>**-**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(34,891)**<br>**(97,889)**<br>**8,728**<br>**(1,400)**<br>**(18,165)**<br>**-**<br>**(750)**<br>**-**<br>**-**<br>**-**<br>**(2,150)**<br>**(18,165)**<br>**- **<br>**(298,595)**<br>**(128,164)**<br>**-**|**Expenditure**<br>**Gains/**<br>**(Losses) Transfers**<br>**£**<br>**£**<br>**£**<br>**-**<br>**-**<br>**-**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(34,891)**<br>**(97,889)**<br>**8,728**<br>**(1,400)**<br>**(18,165)**<br>**-**<br>**(750)**<br>**-**<br>**-**<br>**-**<br>**(2,150)**<br>**(18,165)**<br>**- **<br>**(298,595)**<br>**(128,164)**<br>**-**|**Expenditure**<br>**Gains/**<br>**(Losses) Transfers**<br>**£**<br>**£**<br>**£**<br>**-**<br>**-**<br>**-**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(34,891)**<br>**(97,889)**<br>**8,728**<br>**(1,400)**<br>**(18,165)**<br>**-**<br>**(750)**<br>**-**<br>**-**<br>**-**<br>**(2,150)**<br>**(18,165)**<br>**- **<br>**(298,595)**<br>**(128,164)**<br>**-**|**Expenditure**<br>**Gains/**<br>**(Losses) Transfers**<br>**£**<br>**£**<br>**£**<br>**-**<br>**-**<br>**-**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(261,554)**<br>**(12,110)**<br>**(8,728)**<br>**(34,891)**<br>**(97,889)**<br>**8,728**<br>**(1,400)**<br>**(18,165)**<br>**-**<br>**(750)**<br>**-**<br>**-**<br>**-**<br>**(2,150)**<br>**(18,165)**<br>**- **<br>**(298,595)**<br>**(128,164)**<br>**-**|**Balance at**<br>**31 August**<br>**2020**<br>**£**<br>**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**<br>**24,250**|**-**<br>**-**|**(1,400)**<br>**(750)**|**(18,165)**<br>**-**|||**433,738**<br>**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_<br>_Education Development Fund_<br>_General funds_<br>_General Fund_<br>_Total Unrestricted funds_<br>_Endowment funds_<br>_Wilton Trust Fund_<br>_Restricted funds_<br>_Liverpool College 1840 Foundation_<br>_Brenikov Music Scholarship_<br>_Total of funds_|_Balance at_<br>_1 September_<br>_2018_<br>_£_<br>_351,038_|_Income_<br>_£_<br>_3,450_|_Expenditure_<br>_£_<br>_-_|_Gains/_<br>_(Losses)_<br>_£_<br>_-_|<br>_Balance at_<br>_31 August_<br>_2019_<br>_£_<br>_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_<br>_24,250_|_-_<br>_-_|_(1,315)_<br>_-_|_5,353_<br>_-_|_453,303_<br>_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**<br>**1 September**<br>**2019**<br>**Designated funds**<br>Education Development Fund<br>**354,488**<br>**General funds**<br>General Fund<br>**425,208**<br>Total Unrestricted funds<br>**779,696**<br>**Restricted funds**<br>Liverpool College 1840<br>Foundation<br>**453,303**<br>Brenikov Music Scholarship<br>**24,250**<br>**477,553**<br>Total of funds<br>**1,257,249**|**Balance at**<br>**1 September**<br>**2019**<br>**Designated funds**<br>Education Development Fund<br>**354,488**<br>**General funds**<br>General Fund<br>**425,208**<br>Total Unrestricted funds<br>**779,696**<br>**Restricted funds**<br>Liverpool College 1840<br>Foundation<br>**453,303**<br>Brenikov Music Scholarship<br>**24,250**<br>**477,553**<br>Total of funds<br>**1,257,249**||**Income **<br>**2,300**|**Expenditure**<br>**-**|**Gains/**<br>**(Losses)**<br>**-**|**Transfers**<br>**-**<br>**(8,728)**<br>**(8,728)**<br>**-**<br>**-**|**Transfers**<br>**-**<br>**(8,728)**<br>**(8,728)**<br>**-**<br>**-**|**Balance at**<br>**31 August**<br>**2020**<br>**356,788**|
|---|---|---|---|---|---|---|---|---|
||**425,208**||**11**|**(261,554)**|**(12,110)**|||**142,827**|
||**779,696**||**2,311**|**(261,554)**|**(12,110)**|||**499,615**|
||**453,303**<br>**24,250**||**-**<br>**-**|**(1,400)**<br>**(750)**|**(18,165)**<br>**-**|||**433,738**<br>**23,500**|
||**477,553**||**-**|**(2,150)**<br>**(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_<br>_Education Development Fund_<br>_General funds_<br>_General Fund_<br>_Total Unrestricted funds_<br>_Restricted funds_<br>_Liverpool College 1840 Foundation_<br>_Brenikov Music Scholarship_<br>_Total of funds_|_Balance at_<br>_1 September_<br>_2018_<br>_£_<br>_351,038_||_Income_<br>_£_<br>_3,450_||_Expenditure_<br>_£_<br>_-_|_Gains/_<br>_(Losses)_<br>_£_<br>_-_|<br>_Balance at_<br>_31 August_<br>_2019_<br>_£_<br>_354,488_|
|---|---|---|---|---|---|---|---|
||_169,786_||_81,935_||_169,911_|_3,576_|_425,208_|
||_520,824_||_85,385_||_169,911_|_3,576_|_779,696_|
||_449,265_<br>_24,250_||_-_<br>_-_||_(1,315)_<br>_-_|_5,353_<br>_-_|_453,303_<br>_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** 

- The Liverpool College 1840 Foundation is for educational development. 

- These funds comprise a number of historic donations. The detailed restrictions attached to these funds vary in nature. 

- The Liverpool College 1840 Foundation Fund has been invested for income and growth. 

## **b) The Brenikov Music Scholarship** 

- The Brenikov Music Scholarship is to be invested for income and growth, with a commitment to use 3% of the capital annually to fund music lessons for pupils who show talent in music but who cannot afford music lessons. 

## **iii) Endowment funds** 

## c) **The Wilton Trust Fund** 

- The Wilton Trust Fund is invested to generate income and maintain capital. 

- It is an endowment fund which was established to promote or further the education of students of Liverpool College Independent School Trust (the Academy). 

- The Trustees agreed that this fund should support the Academy's Gifted and Talented Programme, a wide-ranging programme of activities which is structured to provide opportunities for all students throughout the Academy. 

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**<br>**funds**<br>**2020**<br>**£**<br>Tangible fixed assets<br>**333,000**<br>Fixed asset investments<br>**100,857**<br>Current assets<br>**30,139**<br>Creditors due within one year<br>**35,619**<br>**499,615**<br>**Analysis of net assets between funds - the Group – prior year**<br>_Unrestricted_<br>_funds_<br>_2019_<br>_£_<br>_Tangible fixed assets_<br>_322,000_<br>_Fixed asset investments_<br>_362,967_<br>_Current assets_<br>_32,204_<br>_Creditors due within one year_<br>_62,525_<br>_779,696_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**333,000**<br>**100,857**<br>**30,139**<br>**35,619**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**525,262**<br>**-**<br>**(68,024)**|**Endowment**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**696,152**<br>**29,649**<br>**(16,891)**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**333,000**<br>**1,322,271**<br>**59,788**<br>**(49,296)**|
|---|---|---|---|---|
||**499,615**|**457,238**|**708,910**|**1,665,763**|
|||_Restricted_<br>_funds_<br>_2019_<br>_£_<br>_-_<br>_543,427_<br>_17,239_<br>_(83,113)_|_Endowment_<br>_funds_<br>_2019_<br>_£_<br>_-_<br>_794,041_<br>_14,643_<br>_(8,728)_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_322,000_<br>_1,700,435_<br>_64,086_<br>_(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**<br>**funds**<br>**2020**<br>**£**<br>Tangible fixed assets<br>**333,000**<br>Fixed asset investments<br>**100,857**<br>Current assets<br>**30,139**<br>Creditors due within one year<br>**35,619**<br>**499,615**<br>**Analysis of net assets between funds - the charitable company**<br>_Unrestricted_<br>_funds_<br>_2019_<br>_£_<br>_Tangible fixed assets_<br>_322,000_<br>_Fixed asset investments_<br>_362,967_<br>_Current assets_<br>_32,204_<br>_Creditors due within one year_<br>_62,525_<br>_779,696_|**Unrestricted**<br>**funds**<br>**2020**<br>**£**<br>**333,000**<br>**100,857**<br>**30,139**<br>**35,619**|**Restricted**<br>**funds**<br>**2020**<br>**£**<br>**-**<br>**525,262**<br>**-**<br>**(68,024)**|**Total**<br>**funds**<br>**2020**<br>**£**<br>**333,000**<br>**626,119**<br>**30,139**<br>**(32,405)**|
|---|---|---|---|
||**499,615**|**457,238**|**956,853**|
|||**– prior year**<br>_Restricted_<br>_funds_<br>_2019_<br>_£_<br>_-_<br>_543,427_<br>_17,239_<br>_(83,113)_|_Total_<br>_funds_<br>_2019_<br>_£_<br>_322,000_<br>_906,443_<br>_49,443_<br>_(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**<br>Foundation income and legacies<br>Other interest<br>Investments<br>**Total Income**<br>**Less: Expenditure**<br>Administration costs<br>Bad debts recovered<br>Governance Accountancy costs<br>Endowment grants<br>Classroom buildings grant<br>Other grants<br>**Total Expenditure**<br>**Net expenditure from charitable sources**<br>**Other income and expenditure**<br>Impairment charge written back<br>Losses on revaluations of investment assets<br>**Total Other income and expenditure**<br>**Net (expenditure)/ income for the year**<br>**before exceptional items**<br>Transfer of Wilton Trust Fund<br>Exceptional items – deposits written back<br>Exceptional items - accruals written back<br>**Exceptional items**<br>**Net (expenditure)/income for the year**|**2,311**<br>**-**<br>**33,006**|||**2020**<br>**£**<br>**35,317**<br>**(309,595)**|**2020**<br>**£**<br>**35,317**<br>**(309,595)**|_3,450_<br>_250_<br>_33,336_|<br> <br> <br>|_2019_<br>_£_<br>_37,036_<br>_43,268_<br>_(6,232)_<br>_6,865_<br>_633_<br>_808,684_<br>_81,685_<br>_171,864_<br>_1,062,233_<br>**_1,062,866_**|
|---|---|---|---|---|---|---|---|---|
||**9,408**<br>**(8,504)**<br>**9,300**<br>**34,891**<br>**250,000**<br>**14,500**|||||_9,242_<br>_(9,789)_<br>_13,500_<br>_29,000_ <br>_-_ <br>_1,315_|||
||**11,000**<br>**(128,164)**|||||_11,000_<br>_(4,135)_|||
|||||**(274,278)**|||||
|||||**(117,164)**|||||
||||||||||
|||||**(391,442)**|||<br>||
||||||<br><br><br>||||



THIS SCHEDULE IS NOT FOR PUBLICATION 

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