2020-08-31-accounts

THE CORPORATION OF ROSSALL SCHOOL

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2020

THE CORPORATION OF ROSSALL SCHOOL

CONTENTS

	Page
Corporation details	3
Report of the governors	5
Report of the independent auditor to the Council	26
Consolidated statement of financial activities	29
Corporation statement of financial activities	30
Consolidated balance sheet	31
Corporation balance sheet	32
Consolidated cashflow statement	33
Notes to the financial statements	34

THE CORPORATION OF ROSSALL SCHOOL

GOVERNORS OFFICERS AND ADVISERS

Life Governors The Earl of Derby DL Mrs H N Trapnell A N Stephenson MA Members of Council C Holt BSc MBA ACMA Chairman (Ex-officio Governors) S J Fisher MA Vice Chair + × The Revd G Ashton BA Mrs G Austin-King BA FCA MBA LLB CISI MCIBS M R D Craven Mrs L Croston BSc PGCE ALCM × Dr D M Elliott BSc, MBChB × D H Ewart MA PGCE DMS × Dr H O Fajemirokun BA PhD × D Gill FCA DChA The Revd Canon J Hall MA A Potts BSc, PGCE × Mrs C M Preston BSc ARICS + M J Reece MA + Mrs K Thomas MIFST BSc RSci ×* R A Wilson MA

+ Nominations Committee (Chair M J Reece) × Education & Welfare Committee (Chair D H Ewart) Finance & General Purposes Committee (Chair R A Wilson) Senior Remuneration Committee (Chair C Holt) Investment Committee (Chair M R D Craven)

• Health & Safety Committee (Chair E Sanderson)

Page 3

THE CORPORATION OF ROSSALL SCHOOL

GOVERNORS OFFICERS AND ADVISERS (CONTINUED)

OFFICERS

B E Clark MBE

Clerk to the Governors Secretary of the Corporation of Rossall School

OFFICERS (key management personnel during the year)

Mr J A Quartermain MA PGCE +× Headmaster Mrs E Sanderson FCA MA PGCE × * Bursar Mrs L Barnwell BA Director of External Relations Mr M Bradley BSc PGCE Director of Co-curricular & Outreach Mr D Clarke MA MPhil PGCE Director of Professional Development Mrs N Fielden Marketing Manager Miss B Jones BA PGCE Director of IB Mrs K Lee MA CPP Cert. Ed Director of Operations Ms D Porovic MSc QTS Deputy Head (Teaching & Learning) Mr S Prest MA PGCE Director of Sixth Form Mr M Pryor BSc PGCE Senior Master (resigned 30 April 2020) Mr R Robinson MA PGCE Senior Deputy Head Mr M Turner BA PGCE Head of Junior, Infants and Nursery Mrs E Williams BA PGCE Head of Boarding, Designated Safeguarding Lead (appointed 1 May 2020) Registered office Rossall School Fleetwood FY7 8JW Auditor MHA Moore and Smalley Chartered Accountants Richard House Winckley Square Preston PR1 3HP Solicitors DWF LLP 1 Scott Place 2 Hardman Street Manchester M3 3AA Investment advisers Cazenove Capital Investment Ltd 12 Moorgate London EC2R 6DA Charity number* 526685

Page 4

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS

FOR THE YEAR ENDED 31 AUGUST 2020

The Governors of Rossall School present their annual report and audited accounts for the year ended 31 August 2020. The financial statements have been prepared in accordance with the accounting policies set out in notes and 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 (FRS102) published in October 2019.

OVERVIEW

The academic year 2019-20 was a successful year for Rossall School. Academic results were outstanding with almost 50% of all grades at A level resulting in the award of an A*/A grade. The vast majority of students progressed to their university of choice with over 65% securing places at top20/Russell Group universities including St Andrews, Oxford, University College, London, Durham, Exeter and Warwick. Four students won 100% sporting scholarships to the United States. GCSE results were also pleasingly strong and the IBDP average of 34 points places us amongst the top schools within t

impressive and reflects the investment made in CPD and the recruitment of outstanding practitioners from across the UK and overseas.

The student roll grew and various new subjects such as A Level politics, BTEC Sports and Exercise Science and GCSE Astronomy and GCSE Greek were added to the curricular offering. Work on the expansion and refurbishment of the Nursery and Pre-Prep Building began and one of the boarding houses relocated away from the Square to more modern accommodation that was refurbished during the course of the year. The Dining Hall was redecorated due to a very generous donation from the School Foundation.

Obviously, the defining story of this academic year was COVID-19 and this presented educational and financial challenges. The speed with which the School switched to online learning and the high quality of the provision itself meant that student numbers continued to rise during this period, despite the fact that the School has a relatively high number of international boarders. The School started the academic year 2020/21 with over 700 students. The absence of public examinations meant that the School launched its own Rossall Diploma programme which included remote invigilation of exams in eight different time zones and forty two different countries. By the end of the summer, we had taught over 10,000 lessons online and the introduction of Google Classroom and tablets the previous year had proved more prescient than we could have ever realised.

The new sports centre was opened by England and Chelsea Footballer Millie Bright in November 2019 and the phenomenal success of our sports programme is demonstrated by the fact that we have been consistently ranked within the top couple of golfing schools in the UK. The partnership with Fleetwood Town Football Club continues to grow and the quality of elite players in the international football academy is such that an increasing number of scouts from clubs across the north are demonstrating a very real interest in all that is happening at a Director of Leadership and Adventure Training has provided fresh impetus to both the CCF (the oldest in the country) and the Duke of Edinburgh Award Scheme. Obviously co-curricular activities have been compromised by lockdown restrictions throughout much of the year.

OUR AIMS

The School was founded in 1844 and was incorporated by Royal Charter in 1890. The objects and powers of the Corporation were amended by supplemental charters in 1958, 1971 and 2012. The Corporation is a registered charity, number 526685.

moderate cost, for the sons

and daughters of clergymen and others, without limit of age, a classical, mathematical and general education of

are developed and is set out as follows:

Page 5

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

SHAPING LIVES, INSPIRING EXCELLENCE

It is our mission to inspire young people to develop a life-long love of learning within a pastorally nurturing, culturally exciting and intellectually creative community.

s strategic plan are:

INSPIRING INTELLECTUAL EXCITEMENT AND ACADEMIC EXCELLENCE

Rossall School inspires a lifelong love of learning through the outstanding quality of teaching and learning that it provides for young people. Children are encouraged to develop their intellectual interests beyond the confines of the formal curriculum and they are challenged to engage critically with the multitude of opportunities that the School provides to develop skills, knowledge and understanding. Children are encouraged to become selfmotivated independent learners with an intrinsic desire to explore both the physical and metaphysical aspects of their existence. We are an open-minded community receptive to new ideas. Children are encouraged to share their ideas and learn through collaboration and debate.

DEVELOPING COMPASSIONATE AND CARING YOUNG PEOPLE

ontext within which young people may acquire inclusive and progressive ethos is complemented by the outstanding quality of our School community which serves to nurture resilience and develop maturity. Young people leave Rossall with the confidence and strength of character necessary to pursue their personal dreams and fulfil their professional aspirations. Above all, the School endeavours to develop young people who are caring and compassionate and we provide an extraordinary diversity of opportunities for young people to develop these attributes.

ENGENDERING CULTURAL AWARENESS AND ARTISTIC CREATIVITY

Rossall School is committed to providing children with the opportunity to explore and develop their creative sensibilities through the outstanding quality of its performing arts and visual arts provision. Children are encouraged to develop their creative skills and their aesthetic sensibilities so that they may appreciate, comprehend and contribute to the world of infinite beauty that lies beyond the certainties of everyday life.

ENSURING PUBLIC BENEFIT

Rossall School is an internationally-minded community yet resolutely committed to the concept of localism. We recognise our extraordinary potential to serve the local communities of the Fylde Coast and we are committed to sharing our resources and skills with the people of Fleetwood and Blackpool. The School is committed to ensuring that the lives of local people and communities are enriched by our presence. We are part of the rich fabric of this area of the North West and we actively embrace our social responsibility to serve others.

PROMOTING SPORTING EXCELLENCE

Rossall is justifiably proud of its illustrious sporting history and recognises the many health and social benefits to be derived from regular exercise and participation in team sports. Striving for excellence within a sporting context helps young people develop transferable character attributes such as resilience, self-discipline and leadership skills. Alongside a lifelong love of learning, we provide an education which, for many young people, will result in an enduring love of sports.

AN EDUCATION FOR THE FUTURE

Rossall is committed to ensuring that it prepares young people for an uncertain future by developing transferable skills within a technologically enriched and well-resourced environment. A Rossall education is outward facing and encourages children to become politically literate and engage with themes of contemporary relevance such as environmentalism and humanitarianism.

Page 6

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

OUR OBJECTIVES

Our objectives reflect the aims and ethos of the School. In setting objectives and planning activities, the Council to its supplementary public benefit guidance on advancing education and on fee-charging.

Our key objectives for the year included:

• to market the strengths of the School and to increase the pupil roll and improve retention rates

• to ensure that Rossall School becomes an undisputed sector leader in terms of the quality of our boarding, health and wellbeing provision

• to ensure that all pupils fulfil their potential

• to develop the scope of performing arts

OUR ETHOS, STRATEGY AND POLICIES

development of our pupils, their levels of academic and extra-curricular achievement and to further widen access to the education our School provides. In taking forward our strategy we:

• d examination results;

• Ensure the range of co-curricular activities available to our pupils is stimulating and challenging;

• Invest in technology and the infrastructure of our School;

• Co-operate and share resources with local schools; and

• Continue to review and develop our methods for awarding bursaries and scholarships to ensure wider access to pupils from all backgrounds.

Rossall School is a charity which seeks to benefit the public through the pursuit of its stated aims. Our fees are set at a level which reflects the markets in which we operate, whilst ensuring the financial viability of the School and considering our aim of providing a first class education to boys and girls.

Our School welcomes pupils from all backgrounds. To admit prospective pupils we need to be satisfied that our School will be able to educate and develop them to the best of their potential and in line with the general standards achieved by their peers. Entrance interviews and assessments are undertaken to satisfy ourselves and parents that potential pupils can cope with the pace of learning and benefit from the education we provide. An processes.

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. The diverse international pupil body is a great strength of the School. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

Rossall School is committed to safeguarding and promoting the welfare of our pupils and expects all staff to share this commitment. In our most recent ISI Focused Compliance and Education Quality inspection in June l, and new focus for the school's aims, governors and senior leaders have endeavoured to develop young people who know how to look after themselves and who are also caring, compassionate and committed to making a positive contribution to

Page 7

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

OUR ETHOS, STRATEGY AND POLICIES ( continued )

As a School we place huge value on a strong and positive partnership with parents. As well as regular communication through letters, the medium of our school newsletter, we also utilise social media. During the period leading up to and throughout lockdown the quality, regularity and reach of our messaging was particularly important. We increased our use of video content and live Q&A sessions as we found these to be more immediate and relatable forms of communication and provided the necessary reassurance and sense of community. Individualised communication with parents is also important and this is done on both a formal and informal basis. Par

social context through pastoral and academic meetings in addition to regular grade cards and reports at key times during the course of the academic year, timed to have the greatest possible impact in terms of improvement and progress.

The pastoral structure of the school ensures that there are many avenues for pupils to seek and be provided with support. Each pupil belongs to a form group and these are organised according to year group structure. The Form Tutor is the main point of contact for each pupil, supported by the Head of Year, and both have house and Houseparents provide further pastoral support. There is no culture of bullying at Rossall School and a strong emphasis is placed on pupils forming positive relationships based on mutual respect, rooted within a culturally diverse community where each individual feels that they can belong.

PUBLIC BENEFIT AND COMMUNITY LINKS

The School continues to put a great deal of effort into building teaching links with local schools and other feeder schools. Prior to the national lockdown due to the pandemic, all local schools were invited to a wide variety of educational and sporting events. Schools also received visits from staff and pupils from Rossall whilst Head Teachers from local schools have in turn visited Rossall. The School is proud of its heritage and the part it plays in the history of Fleetwood. Links with the town and supporting our local community remain a priority for the school not only in terms of widening access through our bursary policy but also through formal and informal partnerships.

Fleetwood Community Trust

Fleetwood Trust bought the old Fleetwood hospital and are aiming to turn it into a community support hub for the people of Fleetwood. Rossall are privileged to be involved in this community project to serve the people of Fleetwood. This is an exciting partnership that will develop and grow as the facility in Fleetwood develops and it will be an on-going part of school life.

The project is still in the early stages. As the building is being completed, the school maintenance crew will be involved in construction and after completion, there will be a facility staffed by the school to help members of the local community with job applications or computer literacy skills.

The project will involve all areas of school including the pupil body as it moves forward and we are delighted to be working in partnership with Fleetwood High School and Cardinal Allen High School.

Fleetwood Town Community Trust (FTCT)

The Fleetwood Town Community Trust is a charity set up by Fleetwood Town Football Club to provide socially inclusive community, health and education engagement programmes within the community. For the past 3 years, Rossall has been in partnership with the FTCT and 2 local maintained sector schools to deliver the National Citizen Service (NCS) programme. This is a 3 week programme aimed at 16-17 year olds in a programme of challenge, service and learning, enabling them to develop the confidence, skills and attitudes they need to become more engaged with their community and to become active and responsible citizens.

Page 8

THE CORPORATION OF ROSSALL SCHOOL

FOR THE YEAR ENDED 31 AUGUST 2020

REPORT OF THE GOVERNORS (continued)

PUBLIC BENEFIT AND COMMUNITY LINKS (continued)

The programme was launched at Rossall in 2016 as the links between FTFC and the school started to develop t expectations and outcomes that Rossall has for its students. The School contributes facilities and residential stays for the residential week long aspect of the course. The course is run by members of the FTCT.

Fleetwood in Bloom

Rossall is proud to take part in the annual Fleetwood in Bloom initiative to improve our local environment.

Marine Conservation Society

Each year, the school joins dozens of local volunteers on the beach clean. Some of our best-loved marine wildlife is under threat from the waste and litter in our seas, with hundreds of species accidentally eating or becoming entangled in litter. It is also dangerous for people and damaging to our tourism and fishing industries. As we are a school with a beach boundary and the beach is used by the school for both sporting and academic activities, it is important that the school has its own social responsibility for helping to maintain a clean environment.

The initiative involves both members of the teaching staff and the students. Our kitchens provide refreshments on the beach at Cleveleys for all of the volunteers that clean the beach, not just the ones from school. The beach cleaning initiative is a yearly, ongoing event, although the school is in the process of organising smaller more regular beach cleans.

The Donna's Dream House charity in Blackpool is a locally based trust, providing free holiday experiences for children and teenagers with life threatening illnesses. The trust also looks after the children's families.

For the past 10 years, Rossall has proudly been working alongside Donna's Dream House and in the process, raising over £20,000. This includes an annual cabaret evening written performed and produced by the students to raise funds. Rossall School staff and pupils are currently working with the charity to provide a sensory garden element to the new public/environment garden at school which will then be opened up to

COVID-19 Response and the local community

During much of the first lockdown, the School was used as a hub for the Fleetwood Food Bank. We provided administrative staff, office space and paid for all utilities associated with the coordination of aid. Furthermore, our Design Technology Department produced quantities of personal protective equipment which was utilised by local care homes and the Blackpool Victoria Hospital. Students raised considerable sums of money for local charities during this period of time. Our CCF Contingent Commander organised a sleep-out which raised money for young homeless people in Blackpool.

Microfinance initiative

The Lendwithcare initiativ

people to work their way out of poverty. This involves investing in businesses through small start-up loans. One of the main aims is to foster a globalised sense of social responsibility in the students. The students, after research, decide which groups to support. When the initial loans have been paid back, they are reinvested by the group.

Page 9

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

PUBLIC BENEFIT AND COMMUNITY LINKS (continued)

The project was started in 2016 and involves KS3 pupils. The society meets once every week for an hour and it is an ongoing activity at the school. Initial loans have been paid back to the group and they are currently investing in projects in Ecuador.

Kammwamba Project

This is a programme set up by the School Chaplaincy in 2017 to support a group of school children in Malawi with second-hand uniforms. The idea is to help students in a remote rural area of Malawi where education is not widely routinely provided. The aim is that students take ownership and pride in their education by providing basic school uniform and sports kit.

When the collection of clothing is finished, it is all boxed up and taken to Glasgow. Usually, there are in the region of 20 packing crates full of clothing and this is taken to Glasgow on one of the school support vehicles accompanied by the Chaplain and students. Senior pupils are encouraged to take ownership of the project and co-ordinate the collection and despatch. This is an ongoing event that will continue going forward with collections being sent every two years.

Da Vinci Academy

drama, science and maths for local primary school children. This Saturday morning school has proven enormously popular and over sixty local children attend lessons on Saturday. Though it has been temporarily suspended due to COVID-19, it is hoped that it will be able to make a return in the academic year 2020/21.

Healthier Fleetwood

Statistics showed residents in Fleetwood could expect to live shorter lives and experience more life-changing illnesses than people elsewhere in the country and in fact even than those a few miles away on the Fylde Coast. Healthier Fleetwood is an initiative set up by a local GP aimed at improving the general health of the population of Fleetwood. Rossall School is part of the scheme and every weekend offers a free two hour swimming session for Fleetwood residents. The initiative has been embraced by the community and the sessions are always fully booked with 40 people attending each week. The pool is supervised by Rossall lifeguards during this session.

Fleetwood Music and Arts Festival

The Fleetwood Music and Arts Festival is an annual charity event which has taken place for over 60 years. Her Majesty the Queen is a Patron and the festival is a display of talent in the Speech and Drama and Music fields. Rossall is proud to be associated with this festival which showcases the talents of our local community and it is our privilege to host the festival free of charge on our campus. The event has in the region of 120 participants and 200 spectators.

Rossall Chapel Choir

religious and secular sites. Throughout the year the Choir led Evensong at our own Chapel as well as several other churches and cathedrals throughout the North West.

Page 10

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

PUBLIC BENEFIT AND COMMUNITY LINKS (continued)

Rossall Chapel

Throughout the year the Chapel offers services led by the Chaplaincy team which are open to the general public. The School also offers its Chapel free of charge to several local primary schools to be used for their own celebrations such as Christmas Christingle and Carol Services. These are led by our Chaplaincy and include teaching sessions from our RS department where appropriate. Obviously our ability to host outside events in the Chapel has been temporarily suspended due to COVID-19 restrictions.

able link between the School and the local community which we believe it is our responsibility to serve.

Holiday Club

Rossall School is pleased to partner with Skools Out, a local run childcare provision, to run a thriving holiday club within its grounds. pool and grounds to local children by offering holiday care to pupils from various schools in the community in the school holidays.

Fundraising

The staff and pupils at Rossall School, together with the Friends of Rossall, take part in many fundraising activities during the year for local and national charities. A great number of these initiatives are student-led via the Charities Committee. Over the last academic year thousands of pounds have been raised for local charities.

BURSARY POLICY

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which helps our pupils develop an understanding of the perspectives of other people that will be vital in their adult lives.

Our bursary policy together with our community links programme contribute to a widening of access to the education we offer and the facilities we enjoy.

The Governors view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve ould otherwise be at risk, for example in the case of redundancy. In assessing means we take a number of factors into consideration including family income, investments and savings and family circumstances, for example dependent relatives and the number of siblings. However, our School does not have a large endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to nd those benefiting from the awards.

In practice, the School provides considerable financial assistance so that local children can attend Rossall.

The bursary awards range from 5% to 100% remission of fees. Information about fee assistance through bursaries is provided to all applying to the School. We also advertise the awards annually in the local press. Further details of our bursary policy and how to apply are available on our website.

Page 11

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

OTHER POLICIES ON ASSISTANCE

Family discounts policy

To underline the value we place on continuity for families, we offer discounts where parents have more than one child at the School.

Payment by instalments

The School accepts payment of fees by monthly instalments. The School provides flexibility in the timing and amounts of payments in cases where parents face financial difficulties.

PROMOTING HIGH ACADEMIC STANDARDS

Scholarship policy

The purpose of our scholarship awards is to recognise high academic potential or the ability to excel in our extra-curricular activities. Our scholarships are awarded on the basis of both potential and demonstrable achievement and all such students are expected to make a full contribution to the life of the school and to ensure ongoing commitment to excellence.

Scholarships are awarded with a remission of fees of between 10% and 100%. Where further assistance is required, scholarship awards may be supplemented by a means tested bursary. We advertise the availability of scholarship awards annually in the local press and via social media. Further details of our scholarship policy are available on our website.

Assistance for our staff

As part of our emphasis on attracting and retaining high calibre staff, we offer a discount scheme to staff members who choose to educate their children at our School.

Assistance for service families and members of the clergy

The School provides discounts for children whose parents are, or have been, members of the armed forces or members of the clergy.

DETAILS OF BURSARY AND SCHOLARSHIP AWARDS

In total, excluding amounts awarded by the Trapnell and Jackson scholarship funds, the School made awards to pupils totalling £2,077,964 (2019: £1,819,232) representing 17.1% of fee income (2019: 15.6%). In addition, the School gave rebates on fees for the Summer term 2020 when the school was closed due to COVID-19. These rebates amounted to £686,224 taking the total scholarships and discount figure to £2,764,188 (representing 22.7% of fee income).

The scholarship and bursary income received from external charities is not reflected in the school accounts as scholarship income as the funds are billed directly. Consequently the awards to pupils from these charities are not included within the total discounts awarded to pupils.

In total, including amounts awarded by the Trapnell and Jackson scholarship funds, the School made awards to pupils totalling £2,267,756 (2019: £2,031,234) representing 18.6% of fee income (2019: 17.5%). Included the rebates on fees for the Summer term 2020, the total scholarships and discount figure is £2,953,980 (representing 24.3% of fee income).

Page 12

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Bursaries

This year the value of means tested bursaries totalled £660,708 and represented 5.4% of our gross fees. This provided assistance to 148 pupils.

Scholarships

The School awarded scholarships to 185 pupils, based on their educational merit and potential, totalling £937,905 and representing 7.7% of our gross fees. Of this number, 80 also qualified for means-tested bursary support and are included in the figures relating to bursary awards. The progress of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with their abilities.

The Governors have reviewed our Scholarship Awards policies during the year to ensure that able children can accept offers of places at our School through the availability of means tested fee assistance. Our policy is designed to widen access to our School.

The School is grateful for the continued support of its associated charities which enable it to offer scholarships and means-tested financial assistance to students. In the year to August 2020, the School received £115,185 from the Trapnell Fund to fully fund the places of 5 scholars. A further £74,607 was received from the Jackson Scholarship Fund to provide means-tested bursaries in relation to 4 pupils.

The Rossall Foundation also supports a UK boarder each year through its annual bursary fund.

REVIEW OF ACTIVITIES AND ACHIEVEMENTS

IMPACT OF COVID-

Adjustment to school operations

The UK went into lockdown in March 2020. Evolving government guidelines necessitated the School and the leadership team to act decisively and with speed. The following are highlights of decisions made to ensure that we kept all members of the community safe.

• Splitting the day and boarding community to reduce transmission before the lockdown was announced.

• Staying open for a small number of boarders who could not return home throughout the first lockdown period. The site was sealed and these boarders were cared for throughout by their houseparents.

• Temperature checks of all visitors were carried out from early March. Eventually we decided to invest in a thermal imaging camera that all visitors must go through in the reception area.

• Key worker provision was in place throughout lockdown

• All Junior School pupils returned to face to face teaching from Monday 8th June. Their return was risk assessed and different parts of the school site were allocated to different classes to minimise risk of contact. We introduced hand sanitisers and mask wearing at this stage.

• We introduced the online medical questionnaire that all staff and pupils still complete in order to declare that they are in good health. Visitors to the site have been required to complete a similar form since early March 2020.

Safe Schools UK Initiative

From the outset of the pandemic, Rossall Sc creation of a COVID-Safe Charter. To support this charter, Rossall developed the Safe Schools UK initiative and created a Safe Schools UK website for schools who have signed up to the charter and who have considered extra measures.

Page 13

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Online learning

The introduction of 1-to-1 iPads for all Senior School pupils alongside the implementation of Google Classroom in September 2019 meant that pupils and teachers at Rossall School were able to transfer seamlessly to online learning on Monday 23rd March 2020. A full complement of lessons was delivered for all pupils in all year groups from the start with minor adjustments to timings to take account of the demanding nature of significant screen time within the context of home learning. Additional pastoral support was put in place to ensure that each pupil had regular contact with their Form Tutors and those who appeared to be struggling could be picked up as early as possible.

We delivered in excess of 10,000 live online lessons during the course of lockdown as well as a full complement of online examinations for all year groups. In Year 11 and Year 13, our Rossall Diploma exams provided an opportunity for pupils in these year groups to demonstrate their learning and experience closure that they had been denied through the cancellation of public examinations. Our experience of administering online examinations, and in particular the success of validating pupil learning through the Rossall Diploma, will continue to play an important role in our provision in 2020/2021 and beyond.

Part of our online offering this academic year also involved pupil induction in the latter half of the summer term to prepare them for courses in September, including our tailor made Pre University and Pre Sixth Form programmes which will now become regular features of our education provision.

ACADEMIC ACHIEVEMENT

The COVID-19 pandemic and the resultant lockdown prevented pupils from being able to sit public examinations this academic year. Instead grades for qualifications were awarded by exam boards based on teacher predictions, and in the case of the IB, performance in Internal Assessments. The process by which grades were determined at Rossall was extensive and robust and involved the collation of comprehensive evidence available due to well-developed systems of tracking and monitoring now in place.

The results of summer 2020, across A-level, IB as well as GCSE/IGCSE are a testament to the relentless focus placed upon teaching and learning over the preceding two academic years. The fact that public examinations could not be sat by our pupils should not detract from the validity of these results, particularly when viewed within the context of the Rossall Diploma examinations, which pupils did sit. Our Rossall Diploma results were broadly similar to those submitted to the exam boards and as such serve to confirm that the pupils in question would have been capable of achieving the grades that they were awarded through teacher assessment.

In particular at A-level almost 50% of grades were an A/A and over 70% were A - B. Almost 30% of the cohort achieved nothing below an A in their full complement of results.

The International Baccalaureate Diploma Programme (IBDP) results were equally encouraging with pupils achieving an average of 34 points, well above the world average. Almost a fifth of our students achieved above 40 points in the diploma, equivalent to 3A* at A-level.

Page 14

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

ACADEMIC ACHIEVEMENT ( continued )

Over 65% of students progressed to top20/Russell Group universities including St Andrews, Oxford, University College, London, Durham, Exeter and Warwick. Four students won 100% sporting scholarships to the United States.

At GCSE/IGCSE performance continued to be strong with 50% of all grades awarded being 9 - 7 (A* - A), with 15% of grades being awarded the top grade (9) relative to a national average of 6.6%.

Baseline data demonstrates positive value added across all three types of qualifications with a statistically significant positive uplift at A-level of well over half a grade per subject per candidate.

Our staff Professional Development programme was further refined this academic year with provision made for teachers at different stages of their career, designed to dovetail with the new system of appraisal introduced. Focus on pedagogy within a digital context was well timed and continued to evolve during the months spent teaching online.

The curriculum at all stages of the school was reviewed, Latin was introduced from Year 7 and new subjects were also introduced at KS4 and KS5. The Human Universe course ran for the first time for our Year 10 pupils. This is a non-examined course that focuses on developing critical thinking skills through a series of lectures and follow up seminars delivered by teachers on subjects as wide ranging as banned books, controversial art, lessons learned from the Holocaust and human inventions that changed the course of history. We began to offer the Food and Nutrition GCSE and a number of GCSE courses were also offered off timetable including Business, Ancient Greek and Astronomy. At KS5 we began to offer the BTEC Diploma in Sport and Exercise Science as well as A-level Politics.

Rossall Learning Community

As part of our commitment to supporting lifelong learning for the whole community we launched a series of evening events for our parents. There were three fundamental goals - to provide parents with good quality information about what we are doing as a school, to provide parents with the opportunity to learn about aspects of our curriculum and provision through talks on specific subjects of interest such as online safety, study skills, PSHE and wellbeing as well as sexual health and relationships education and finally to provide an opportunity for personal growth and enrichment for parents by giving them access to some of the talks and lectures that our pupils have had the chance to listen to.

Page 15

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

MUSIC AND DRAMA

Expression through the arts gives our children an opportunity to channel their feelings and find a positive outlet. Communication skills and self-expression are two of the many life skills we promote in Junior and Senior School. pupils perform in the annual House Singing Competition, the Junior and Senior School choirs perform in School and further afield and there are numerous events throughout the year for soloists and groups to showcase their talent.

Unfortunately due to the COVID-19 pandemic and was a great success and gave pupils an opportunity to showcase their talents through a humorous and sophisticated piece. During lockdown itself, the school hosted a performing arts showcase as well as a short film competition. Our strength in film production continues to grow and many pupils stand to benefit from the expertise within the school with the introduction of Film GCSE from September 2020.

There were 87 LAMDA speech and drama exams taken over the course of the year with children ranging from the Infants through to Sixth Form. Results were exceptional this year with every child taking an exam earning a distinction or merit. A distinction grade requires a result of 80% or above; 20 of the 46 distinction grades were over 90% with three children being rewarded by faultless scores of 100%.

Over half of the Junior School children choose to take Speech and Drama lessons and all of these pupils are given the opportunity to take the LAMDA exams.

Authors and Speakers

Despite the restrictions due to the lockdown, a rich and varied array of speakers have visited the School over the year either in person or through virtual media. These have included:

• Lord McNally (Tom McNally) spoke with our A level Politics students about his life in Politics and the current political climate in the UK and abroad.

• Emma Cole spoke to the Sixth Form about being diagnosed, and living with, HIV for over 30 years. She discussed the changes in attitude towards those living with HIV and the challenges that still remain.

• Colin Parry OBE spoke to the Sixth Form about the death of his son in the IRA Warrington bombing in 1993 and his subsequent work in setting up the Tim Parry & Johnathan Ball Peace Foundation and conflict resolution.

• Andy Rhodes, Chief Constable of Lancashire spoke to the Sixth Form about the role of the Police Service in our society and the challenges of modern policing.

• Susan Pollack, MBE from the Holocaust Education Trust delivered a talk that our Year 10 pupils attended virtually on the subject of Holocaust Memorial Day.

Page 16

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

SPORT

Rossall School Sport continues to evolve with major sporting programmes, provision of more opportunities for sport for all and for those who wish to pursue excellence. A new focus on pupil centric development and wellbeing to be implemented from September 2021 will lead to a more varied provision of extra-curricular activities.

Hockey

Kirkham School, AKS and Stonyhurst College for the senior sides, whilst the junior side picked up wins versus

e country, following wins nationally versus Uppingham, Stowe and Bedford. Formatting for both genders currently is a seven a side format for year seven to eight whilst the format for year nine to thirteen is eleven a side. The school is fortunate to attract junior international players to the school and one recent Old Rossallian is currently up for selection for the Tokyo Olympic Games.

Rugby

Rugby continues to grow organically at Rossall School with pupils experiencing the game through the Michaelmas and Lent terms. Rossall School rugby continues to have a strong showing at Rosslyn Park in London.

Football

in 2016. To date, fixtures for the junior teams have been against local district schools and the senior football wins versus locals academies and professional football clubs showcase their strength.

Millie Bright who has a close connection with the school. The programme has generated a significant level of interest in the UK and worldwide.

Netball

The senior netball was hugely successful with all teams picking up wins throughout the Lent term. The sport has benefited hugely from the amazing indoor facilities now available at the School and Rossall now produces fourteen teams per weekend, allowing for a large breadth of competition and participation.

Basketball

Basketball teams continue to impress on the local schools circuit with wins over 85% of their fixtures. Pupils enjoy training sessions twice a week and a move to a basketball league in September will allow future success.

Golf

Our indoor golf centre continues to develop with the addition of a player study and a putting lab. Four of the senior pupils signed for College programmes in America. Rossall School is currently ranked number one in the country in the independent schools ranking. The school are also reigning HMC champions winning the title comfortably at Rye GC.

Page 17

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Functional Movement Scale

A new initiative to scale each pupil through functional movement has been launched in September 2020; this has been successful in allowing pupils and parents to access tangible data showing progression. Led by the Director of Sport and the Head of Athletic Development, this move has catapulted Rossall to national recognition.

COMBINED CADET FORCE

Rossall School was the first independent school to enrol volunteers to the Combined Cadet Force (CCF). The role of the CCF is to help boys and girls to develop powers of leadership through training, which promotes qualities of responsibility, self-reliance, resourcefulness, endurance, perseverance and a sense of service to the community.

There are three

sections; the Navy, Army, Royal Air Force.

The CCF attended no less than six Remembrance Service events and the annual Inter section drill competition was won by the Army section. An increasing number of staff within the Common Room are now contributing to the CCF and the RAF section alone has three newly commissioned officers. Obviously the summer camps had to be cancelled due to COVID and the CCF contingents were not able to meet in person after the end of February 2020. Much of the remainder of the year was devoted to refurbishing the CCF building and preparing for the return of the sections in September 2020.

FUTURE PLANS

position in a competitive market by investing to provide high quality education for our pupils. Achieving a high standard of academic results is a constant aim whilst maintaining the breadth and depth of the education provided.

Impact of coronavirus on the School

The school is continually adapting and changing its plans to manage the impact of the measures and plans issued by the government including lockdown measures relating to school closures and travel arrangements. The sments take into account known circumstances as well as uncertainties. The school has called on various sources including associated charities and government-aided bank funding to create a cash contingency that will ensure the School has the liquidity available to fulfil its obligations and to finance its ongoing operations.

The School has a well-established process for remote learning which enables a seamless transition at short notice and prevents disruption in education for our pupils. The School is also well set up to manage the control measures needed to run its operations safely when face-to-face learning is allowed. The costs of PPE and additional medical staffing and cleaning costs have been taken into account in the budgets and the School is well-resourced in these areas.

Activities such as sport, music and performing arts could be curtailed to some extent in 2020-21 but the size of the campus and technological expertise of our staff will enable a high level of activities in all co-curricular activities.

We are forecasting that from September 2021, business will return to pre-COVID levels and we will be operating on a cash positive basis. A full cost review has been initiated and a redundancy process was carried out during the summer of 2020 which has led to a reduced cost base for support staff.

Page 18

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

FUTURE PLANS ( continued )

Our future plans are financed primarily from fee income and supported by a growing contribution from the Rossall Foundation. The Governors need to maintain an equitable balance ensuring our current pupils benefit whilst, at the same time, ensuring a sound infrastructure and financial base are preserved for the next generation of pupils in the same way as our current pupils benefit today from the investment made in the past.

The Head and senior staff continue to review the curriculum to ensure that the educational qualifications

The Council views bursary and scholarship awards as important in widening access to the education our School able children can accept offers of places at our School through the availability of means-tested fee assistance. A shift from scholarships to means-

The Council intends to extend our links and exchanges with the state sector through working closely with the Heads of the schools we partner ensuring the positive contribution to our shared educational aims continues.

Maintaining and, where necessary, developing the fabric and facilities of the School are central to our strategy. We have a programme of planned maintenance and investment with the ongoing refurbishment of our boarding houses and teaching accommodation as priorities. For 2019-20 this included exciting plans for the redevelopment of the Pre-Prep and Nursery incorporating a new baby unit to extend the provision from 0-19.

Environmental issues are also a high priority and we are making our buildings more energy efficient, for example, through boiler replacement, double glazing and LED light replacement. We also continue to support local recycling initiatives.

The school development plan incorporates ten core strands identified as providing the framework necessary to meet the strategic objectives. These are:

1. Pupil achievements, learning and assessment

2. The quality of teaching and assessment

3. The quality of pastoral care and arrangement for pupil welfare

4. The quality of co-curricular provision

5. The quality of spiritual, moral and cultural education of our pupils

6. The quality of leadership and management

7. The quality of governance

8. The quality of communication (including marketing and alumni relations

9. Develop the public benefit of the School

10. Commercial Enterprise

The school strategic development plan is available to download from the school website.

Page 19

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

New Initiatives

Throughout this year the School has continued pushing forward with its development plan. 2020/21 will see the - Steinway School in the summer of 2021 and the celebrated concert pianist, Martin Roscoe, has been appointed Associate Professor of the Piano Academy. The School has a phenomenally strong maths department and is in the process of putting together an accelerated maths programme. This is attracting interest from several university maths departments within the UK.

OUR FINANCES

The net movement in funds of the School was a loss of £811,933 compared with a loss of £102,766 in 2019. This translates to a positive EBITDA figure of £34,077 compared with £589,659 in the prior year.

The School had been forecasting a break-even position for the year. However, the national lockdown due to the coronavirus pandemic, in particular the government directive to close schools from March 2020 for the entirety of the summer term, had a significant negative impact on the schools finances.

Council discounted boarding fees by 25% and day fees by 15% for the summer term at a cost of £686,224.

We have traditionally had a good number of students join us in the summer term which has not been able to happen this year. This has had a further impact on net fee income for 2019-20 although a number of students deferred their entry to September 2020. In addition, Rossall was not able to run its summer school leading to a significant drop in that income stream.

The school was unable to hire out facilities including the swimming pool from March 2020 due to government restrictions and the need to enforce social distancing measures. We were also unable to host any Easter or Summer holiday lets. As a result, trading income was £342,654 lower than the prior year and this led to the trading subsidiary making a loss in 2019-20.

Through the Coronavirus Job Retention Scheme, we furloughed 80% of our support staff and 30% of our teaching staff in the summer term. The amount received in grant income was £991,788 and this has offset a significant proportion of the lost income detailed above.

Cash at the year-end of £4,108,272 is £1,042,844 above the comparative figure of £3,065,428.

Due to the uncertainties generated by the pandemic, in particular, the prospect of future lockdowns, Council sought additional funding from a variety of sources which have created a financial contingency for 2020-21. Investments held in the Corlett Bursary Fund were disposed in the year and from the cash proceeds £195,452 was loaned to the School. The Rossall Foundation also made a loan to the School of £200,000 and the Trapnell Fund agreed that the annual loan repayment of £152,915 could be delayed until 2020-21. In total, these amounts from associated charities have increased the year end cash balance by £548,367.

increased this creditor (and hence improved the cash balance) by £388,445 at the year end.

Although not reflected in the year end cash balance, the School has also taken out a £1m Coronavirus Business Interruption Loan from HSBC as a further contingency against the future impact of COVID-19. This was drawn down in October 2020.

Page 20

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

OUR FINANCES (continued)

down through the use of

in-house expertise. Refurbishment of the boarding houses continued along with improvements to some key teaching areas and through a generous donation from the Rossall Foundation, the Dining Hall was redecorated, a significant project given the size and stature of that iconic building.

In line with the strategic plan, the second phase of the Infant School redevelopment was completed with the creation of a baby unit and following a successful OFSTED inspection in August 2020, the School can now welcome children as young as 3 months old into the nursery school.

GOING CONCERN

Council have prepared and reviewed forecasts including cash flow forecasts to August 2022.

In January 2021, there was a further national lockdown in which schools were closed for the majority of the Lent -term boarding, other income and trading income. However, through careful management of resources and some use cash positive result for 2021-22.

As noted previously, the School secured a CBILS loan in the sum of £1,000,000 as a further contingency against future uncertainties. This cash reserve has been ring-fenced and not yet called upon.

considered future scenarios, such as further lockdowns, quarantine and travel restrictions and their potential from associated charities, the School has sufficient contingencies to weather a further lockdown. The SLT have reviewed the

Rossall Enterprises Ltd

Rossall Enterprises Ltd is a trading company wholly owned by the Corporation of Rossall School. The company provides accommodation and facilities for conferences, courses and activity holidays, retail services and a bus service for pupils. Rossall Enterprises Ltd donates any taxable surplus to Rossall School under the Gift Aid Scheme.

COVID-19 has had a significant impact on Rossall En In particular, there has been a substantial reduction in lettings income as there were no summer or Easter lets due to the COVID-19 outbreak which is usually when the majority of the lettings take place. Other lettings income resulting from the hire of facilities has also been impacted since March 2020. Additionally the shop was closed for three -open. These factors resulted in Rossall Enterprises Limited making a loss after administrative expenses and interest of £24,709 leaving it with negative net liabilities of £6,353.

The impact of COVID-19 will continue to be felt by Rossall Enterprises Limited into 2020-21 but once restrictions are fully eased it will once again generate profits. Council have reviewed the forecasts for Rossall Enterprises Limited and are confident that the company is a going concern and that it is appropriate that the School continue to support this trading subsidiary by making short-term funding available.

Page 21

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Pension liability

-employer defined benefit scheme.

It is not possible to obtain sufficient information to enable the School to account for the scheme as a defined benefit scheme and so it accounts for it as a defined contribution scheme.

The pension scheme is in deficit and the School has had to take up a deficit funding arrangement. A liability is therefore recognised in the accounts. The amount recognised of £802,000 (2019: £859,000) is the net present value of the agreed deficit reduction contributions. Actuarial re-measurements increased the liability by £8,000 in the year (2019: decrease of £2,000). This has been shown in the statement of financial activities as another recognised loss.

Reserves

The School has a general reserve of £6,853,282 (before taking into account the pension reserve of £802,000) in the form of unrestricted funds which are invested to further its charitable aims. Although the net book value of ntrol system that forecasts future financial outcomes including projecting cash balances for the next two financial years. It would not commit to major projects without ensuring adequate funding is in place. operations are funded on a prudent basis using its own resources or those of its connected charities. During the course of 2018-19, the School entered into a £3.3m loan agreement with HSBC in order to assist with funding a specific capital project, the building of a £4.2m sports centre. This bank loan was converted to a fixed term loan in October 2020.

Post year end, HSBC approved a Coronavirus Business Interruption Loan (CBILS) for an amount of £1,000,000. This will be used as a contingency against the future impact of ongoing restrictions due to COVID-19.

Investment policy and performance

The School Trust Funds are held under management by Cazenove Capital Investment Ltd with whom the y Multi-Asset Fund run by Cazenove; the objective of this fund is a return target of CPI+4% over rolling ten year periods. The Council at its meetings during the year.

The School funds are deemed by the investment manager to be appropriate given its objectives of real capital growth and a 4% dividend distribution. Within the portfolios a cash position is maintained which provides some extra protection against any negative fund movements.

fall in the FTSE and a 6% positive gain by the MSCI World Index. Gilts over this period recorded a 2.4% return. The managers have continued to reduce the equity exposure and transition towards a more global approach. This has served well in recent months given the underperformance of the U.K. equity market. A defensive arm of the portfolios has been an allocation in gold.

With the US elections, Brexit and COVID-19 issues ongoing the market outlook ahead is somewhat cloudy. However there are signs of economic recovery and support from central banks which should act as a tailwind for global markets.

Page 22

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

The Governors are an incorporated body under the title "The Corporation of Rossall School" arising from the Royal Charter dated 22 November 1890, as amended.

The Corporation Life Governors, Members of Council, Head, Bursar, Secretary, Registered Office and names and addresses of other relevant organisations and persons are on pages 3 and 4. Members of the School Council are the charity trustees. Membership of Council is reviewed periodically by the Nominations Committee.

The following charitable trusts operate for the benefit of Rossall School and its pupils and are separately constituted legal entities with independent trustees:

• The Rossall School Endowment Fund, incorporating The Jackson Scholarship Fund;

• The Rossall Centenary Fund;

• The Trapnell Fund

The Jackson Scholarship Fund and the Trapnell Fund provide scholarships for pupils at Rossall. The income from the Rossall School Endowment Fund and the Rossall Centenary Fund is applied for general educational purposes at Rossall School.

The Rossall Foundation, a company limited by guarantee, was established in 2005 with the purpose of raising funds to support the School's development.

Organisational management

of decisions are monitored either directly by the Council or indirectly through sub-committees, including the Finance & General Purposes Committee, the Education Committee, the Senior Remuneration Committee, the Health & Safety Committee and the Safeguarding and Compliance Committee. Day to day management is delegated to the Head and the Bursar and exercised through a management team.

The Head oversees the recruitment of all teaching staff whilst, under delegated authority, the Bursar oversees meetings.

Other relationships

The H expertise, knowledge and experience across the independent school sector. The Conference also permits appropriate representation to Government and regulators of the views of the sector. Similarly the School is a

Risk management

arise in each of these areas. In the opinion of the trustees, the charity has established resources and reviewed systems, which, under normal conditions, should allow the risks identified by them to be mitigated to an acceptable level in its day to day operations. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

-19 pandemic. As well as recognising the COVID-19 pandemic as a specific risk, all pre-existing risks have been reviewed in light of the global impact of the pandemic.

Page 23

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Risk management (continued)

An Operations and Logistics working party including several members of SLT meet at least once per week to identify emerging exposures and to review our ability to manage them. This includes introducing measures to protect the health and safety of the students, staff and wider community of Rossall School and continually evaluating and adjusting them to reflect World Health Organisation, Public Health England, and UK government guidelines.

The specific risk assessment for COVID-19 is under continuous review and the latest version is available on the school website.

Recruitment and training of members of Council

T New members are selected having regard to their skills and expertise and receive appropriate training following their appointment.

Key management personnel remuneration

The remuneration of the Head and the Bursar is set by the Board with the objective of rewarding them fairly and responsibly for their individual contributions to th The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to external benchmarking with other independent schools (provided by AGBIS).

The remuneration of other key management personnel is delegated to the Head and Bursar within the constraints of pay scale bands which have been set by Council, using teaching pay bands issued by the STRB as a point of reference where appropriate. Starting salaries for recruitment are set by Council at the lower to medium point within a band, providing scope for rewarding excellence. Pay increases on a global and individual level are agreed by Council on the recommendation of the Head and Bursar.

Fundraising

The Rossall Foundation undertakes fundraising on behalf of Rossall School and is a separate charitable company. During the year, the Foundation transferred £81,710 to the School in relation to donations towards the completed sports centre project and a further £32,808 to facilitate the redecoration of the Dining Hall.

The Rossall Foundation raises funds from the public and follows the Fundraising Code of Practice. Although limited by the coronavirus pandemic for a significant part of the year, the Foundation has carried out fundraising activities which include direct mailings and invitations to fundraising events. In all cases, Rossall School employees have worked with the Foundation to ensure that consent had been given for these communications in line with GDPR requirements.

Page 24

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE GOVERNORS (continued)

FOR THE YEAR ENDED 31 AUGUST 2020

Statement of trustees' responsibilities

accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period. 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 2019 (FRS 102);

• make judgements and estimates that are reasonable and prudent;

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

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

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution to re-appoint MHA Moore and Smalley as auditor for ensuing year will be proposed at the annual general meeting in accordance with the Charities Act 2011.

Approved by the Governors on 23 March 2021 and signed on their behalf by:

C Holt Chairman of Council

Page 25

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE INDEPENDENT AUDITOR TO THE COUNCIL

Opinion

2020 which comprise the Group Statement of

Financial Activities, the Corporation Statement of Financial Activities, the Group Balance Sheet, the Corporation Balance Sheet, the Group Cash Flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• 2020, and of nd application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the financial statements' section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the Trustees have not disclosed in the financial statements any identified material uncertainties that going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our audi opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 26

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE INDEPENDENT AUDITOR TO THE COUNCIL (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the

• sufficient accounting records have not been kept; or

• ng records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the Corporation or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Page 27

THE CORPORATION OF ROSSALL SCHOOL

REPORT OF THE INDEPENDENT AUDITOR TO THE COUNCIL (continued)

A further description of our responsibilities for the audit of the financial statements is located on the http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Corporation and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

MHA Moore and Smalley Statutory Auditor Richard House Winckley Square Preston PR1 3HP

Date: 26/03/2021

MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 28

THE CORPORATION OF ROSSALL SCHOOL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

Note Income from: Donations and legacies 2 Other trading activities 3 Other income - CJRS Investments 4 Charitable activities 5 Total income Expenditure on: Raising funds Charitable activities Total expenditure 9&10 Net income / (expenditure) before other gains/(losses) Net gains/(losses) on investments 12 Net income / (expenditure) Transfers between funds 17 Other recognised gains/ (losses): Remeasurements to pension liability 19 Net movement in funds Funds brought forward Funds carried forward	Unrestricted income funds Restricted income funds Endowment funds 2020 Total 2019 Total £ £ £ £ £ 43,750 144,398 - 188,148 396,110 189,505 - - 189,505 532,158 991,788 - - 991,788 - 201,256 10,008 5,105 216,369 217,936 9,821,405 - - 9,821,405 10,657,700
	11,247,704 154,406 5,105 11,407,215 11,803,904
	219,469 - - 219,469 444,698 11,923,794 50,178 220 11,974,192 11,455,214
	12,143,263 50,178 220 12,193,661 11,899,912
	(895,559) 104,228 4,885 (786,446) (96,008) - (16,375) (1,112) (17,487) (8,758)
	(895,559) 87,853 3,773 (803,933) (104,766) 120,715 (115,830) (4,885) - - (8,000) - - (8,000) 2,000
	(782,844) (27,977) (1,112) (811,933) (102,766) 6,817,773 421,489 1,463,293 8,702,555 8,805,321
	6,034,929 393,512 1,462,181 7,890,622 8,702,555

The Group has not acquired or discontinued any activities and all recognised gains and losses are shown above.

The comparative consolidated statement of financial activities can be found in note 29 to the accounts.

Page 29

THE CORPORATION OF ROSSALL SCHOOL

CORPORATION STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2020

Note Income from: Donations and legacies 2 Other income CJRS Investments 4 Charitable activities 5 Total income Expenditure on: Raising funds Charitable activities Total expenditure 9&10 Net income /(expenditure) Transfers between funds 17 Other recognised gains/ (losses): Remeasurements to pension liability 19 Net movement in funds Funds brought forward Funds carried forward	Unrestricted income funds Restricted income funds 2020 Total 2019 Total £ £ £ £ 108,387 158,426 266,813 496,110 991,788 - 991,788 - 235,001 - 235,001 241,186 9,823,599 - 9,823,599 10,660,200
	11,158,775 158,426 11,317,201 11,397,496
	10,499 - 10,499 39,573 11,946,415 49,800 11,996,215 11,481,737
	11,956,914 49,800 12,006,714 11,521,310
	(798,139) 108,626 (689,513) (123,814) 112,641 (112,641) - - (8,000) - (8,000) 2,000
	(693,498) (4,015) (697,513) (121,814) 6,744,780 122,249 6,867,029 6,988,843
	6,051,282 118,234 6,169,516 6,867,029

The Corporation has not acquired or discontinued any activities and all recognised gains and losses are shown above.

The comparative Corporation statement of financial activities can be found in note 30 to the accounts.

Page 30

THE CORPORATION OF ROSSALL SCHOOL

CONSOLIDATED BALANCE SHEET

AS AT 31 AUGUST 2020

Note FIXED ASSETS Tangible assets 11 Investments 12 CURRENT ASSETS Stock Debtors 13 Cash and deposits CURRENT LIABILITIES Creditors: payable within one year 14 NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES LONG TERM LIABILITIES 15 Creditors: payable after one year NET ASSETS REPRESENTED BY: ENDOWMENT FUNDS 18 RESTRICTED FUNDS 17 UNRESTRICTED FUNDS General Reserve 16 Pension Reserve 19	£ 48,706 516,976 4,108,272	2020 £ 12,992,615 205,269	£ 57,751 560,697 3,065,428	2019 £ 13,573,042 427,832
		13,197,884 94,827		14,000,874 (51,621)
	4,673,954 (4,579,127)		3,683,876 (3,735,497)
	6,836,929 (802,000)		7,676,773 (859,000)
		13,292,711 (5,402,089)		13,949,253 (5,246,698)
		7,890,622		8,702,555
		1,462,181 393,512 6,034,929		1,463,293 421,489 6,817,773
		7,890,622		8,702,555

The accounts were approved by the Council on 23 March 2021

C Holt Chairman of Council

Mr RA Wilson Chair of Finance & General Purposes Committee

Page 31

THE CORPORATION OF ROSSALL SCHOOL

CORPORATION BALANCE SHEET

AS AT 31 AUGUST 2020

Note FIXED ASSETS Tangible assets 11 Investments 12 CURRENT ASSETS Stock Debtors 13 Cash and deposits CURRENT LIABILITIES Creditors payable within one year 14 NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES LONG TERM LIABILITIES Creditors payable after one year 15 NET ASSETS REPRESENTED BY: RESTRICTED FUNDS 17 UNRESTRICTED FUNDS General Reserve 16 Pension Reserve 19	£ 5,432 607,818 4,039,230	2020 £ 12,992,615 10,001	£ 8,555 762,304 2,811,818	2019 £ 13,573,042 10,001
		13,002,616 105,141		13,583,043 (128,616)
	4,652,480 (4,547,339)		3,582,677 (3,711,293)
	6,853,282 (802,000)		7,603,780 (859,000)
		13,107,757 (6,938,241)		13,454,427 (6,587,398)
		6,169,516		6,867,029
		118,234 6,051,282		122,249 6,744,780
		6,169,516		6,867,029

Page 32

THE CORPORATION OF ROSSALL SCHOOL

CONSOLIDATED CASHFLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2020

Note Net cash provided by / (used in) operating activities 20 Cash flows from investing activities: Investment income Finance costs Purchase of tangible fixed assets Movement in funds held by broker Payments to acquire investments Receipts from the sale of investments Net cash used in investing activities Cash flows from financing activities: Loans from associated charities Bank loan Fee deposits Net cash provided by / (used in) financing activities Change in cash and cash equivalents in the year 21 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	£ 216,369 (130,361) (142,314) 17,566 (8,479) 195,989	2020 £ 605,994 148,770 288,080	£ 217,936 (143,280) (3,711,511) 4,021 (12,537) -	2019 £ 745,909 (3,645,371) 3,318,727
	223,726 - 64,354		- 3,300,000 18,727
		1,042,844 3,065,428		419,265 2,646,163
		4,108,272		3,065,428

Page 33

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of freehold land and buildings and investments at market value.

Charities (Accounts and Reports) Regula

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Corporation of Rossall School meets the definition of a public benefit entity under FRS 102.

The consolidated financial statements include the financial statements of the Corporation of Rossall School, Rossall Enterprises Limited, and Fund A. The accounts have been consolidated on a line by line basis.

Connected Charities

A number of charitable funds have been established to support or promote the advancement of education by providing income to Rossall School or by providing scholarships and bursaries for pupils of Rossall School. Although the Rossall Centenary Fund and Rossall Endowment Fund (incorporating the Jackson Scholarship Fund) are linked charities for the purpose of Charity Commission registration, as the Corporation does not have the power to appoint Trustees these are not considered to be subsidiary undertakings and their activities and net assets have not been recognised in these accounts except for income received from these Funds. The net assets of the funds not consolidated are shown in note 28. The Trustees are currently in the process of applying for the de-linking of these charities. The funds providing income are the Rossall Centenary Fund and the Rossall Endowment Fund. The Scholarship Funds are the Jackson Scholarship Fund and the Trapnell Fund. All organisations connected with or controlled by the Corporation can be contacted at the address given on page 4.

Going concern

The Governors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Governors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

In forming their assessment, the Governors took into account the impact of the COVID-19 pandemic and the ongoing uncertainties and risks affecting the School as a result of the ongoing measures in place to manage the world-wide pandemic. A significant mitigating factor is the excellence of the online learning provision and the extensive COVID-19 safety measures that have been implemented within the School. This has reduced the financial impact of lockdowns after the balance sheet date and strengthened the pupil roll for 2020-21.

Page 34

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Going Concern (continued)

In particular, the Governors have focussed on cash reserves, building up a cash contingency in case of further interruptions to the provision of face-to-face education. A sub-committee was set up which has met weekly during lockdown periods both during the financial year and post year-end. Recognising that the ability to meet our obligations as they fall due is of paramount importance, this sub-committee carefully scrutinises cash flow forecasts, debtor levels and loan schedules giving

Based on the above, the Governors have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties concern basis of accounting in preparing the financial statements.

Fund accounting

General funds are unrestricted funds, which are available for use at the discretion of the Governors in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds are set aside by the Governors out of unrestricted general funds for specific purposes or projects. Restricted funds are those to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost 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 accounts.

Where funds are provided for fixed assets, the treatment of the fixed assets acquired with those funds will depend on the basis on which they are held. When the asset has been purchased from a restricted fund donation but is held for a general and not a restricted purpose, the value of the tangible fixed assets will be transferred from restricted to unrestricted funds. If the terms on which the funds were received require that the fixed asset which is provided should be held on trust for a specific purpose, then the asset will form part of restricted funds, as will a fixed asset which has itself been given to the school on trust for a specific purpose.

Income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the charity, but include contributions received from restricted funds for scholarships, bursaries and other grants.

Donations receivable for the general purposes of the c to distinguish them from direct school income. Donations for purposes restricted by the wishes of the governors. permanent or expendable according to the nature of the restriction.

Legacies are accounted for on a receivable basis. Pecuniary legacies are recognised following formal notification from the estate. Residuary legacies are recognised only when the charity measured, which is normally on grant of probate. Bequeathed properties awaiting sale are included in legacy income when the charity takes ownership of the property.

Income received in advance of an event or provision of other specific provision of other specified service it is deferred until the criteria for income recognition are met.

Page 35

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Income (continued)

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

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Certain expenditure is apportioned to cost categories based on the estimated amount attributable to that activity in the year. The irrecoverable element of VAT is included with the item of expense to which it relates.

Governance costs comprise the costs of running the charity, including strategic planning for its future development, also internal and external audit, any legal advice for the Members of Council, and all the costs of complying with constitutional and statutory requirements, such as the costs of Board and Committee meetings and of preparing statutory accounts and satisfying public accountability.

Fixed assets and depreciation

All capital expenditure over £1,000 is capitalised. The costs of fixtures and equipment for new buildings are added to the capital cost of the building. For subsequent refurbishment projects, subsequent expenditure is capitalised where it provides an enhancement of the economic benefits of the fixed asset in excess of the previously assessed standard of performance. Where subsequent expenditure merely ensures that the fixed asset maintains its previously assessed standard of performance, such expenditure is charged to the statement of financial activities as incurred.

Fixed assets are stated at cost less accumulated depreciation, except for buildings which were owned, and gs and Co on 5 October 1996, on the basis of depreciated replacement cost. These buildings are stated at valuation less accumulated depreciation. Depreciated replacement cost is based on a hypothetical transaction which would provide for the cost to replace the buildings in their state at the date of the valuation. This valuation will not be updated as the Corporation has taken advantage of the transitional provisions available under FRS15.

Depreciation is provided on fixed assets at the following rates:

Land	-	0%
Historic buildings	-	0%
Buildings	-	between 2% and 3.33% on net book value
Refurbishment projects	-	between 6.67% and 15% on cost
Motor vehicles	-	25% on cost
Plant and equipment	-	between 10% and 33.3% on cost
Leased items	-	over the period of the lease

Historic buildings are those buildings which have been identified by Bushells & Benstead as having a long estimated remaining useful economic life and high residual value.

Page 36

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Quoted investments

All investments in quoted securities held at the year-end are shown in the accounts at market value as ent adviser.

Investments are initially recognised at their transaction value and subsequently measured at their market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Stocks

Stocks are valued at the lower of cost and net realisable value. No account is taken of any stocks of maintenance materials.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Operating leases

Rentals applicable to operating leases are charged to the SOFA on a straight line basis over the term of the lease.

Pension schemes

Defined Benefit Pension Scheme. These are defined benefit schemes and the assets are held separately from those of the School.

Page 37

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (continued)

Pension schemes (continued)

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the School in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of valuations using a prospective unit credit method. As stated in the notes to the accounts, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

Defined Benefit Pension Scheme is a multi-employer scheme. It is not possible for the School to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme, and therefore it accounts for the scheme as a defined contribution scheme, with the current service contributions charged as an expense to the SOFA as they fall due. As the scheme is in deficit and the School has agreed to a deficit funding arrangement, the School recognises a liability for this obligation which is equal to the discounted present value of the future deficit payments.

Payments to the scheme are charged as an expense to the SOFA as they fall due.

Judgements and key sources of estimation uncertainty

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

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

The Governors do not believe that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Page 38

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

2 Income from donations and legacies

Income from donations and legacies
	Unrestricted	Restricted	2020	2019
	income	income	Total	Total
	£	£	£	£
Group
Donations and bequests	43,750	144,398	188,148	396,110
	Unrestricted	Restricted	2020	2019
	income	income	Total	Total
	£	£	£	£
Corporation
Donations and bequests	43,750	144,398	188,148	396,110
Donation from subsidiaries	64,637	14,028	78,665	100,000
	108,387	158,426	266,813	496,110
Comparative information is included in note 31.
Income from other trading activities
	Unrestricted	Restricted	2020	2019
	income	income	Total	Total
	£	£	£	£
Group
Trading income	189,505	-	189,505	532,158
	Unrestricted	Restricted	2020	2019
	income	income	Total	Total
	£	£	£	£
Corporation
Trading income	-	-	-	-

3 Income from other trading activities

All income from other trading activities was unrestricted in the previous year.

Page 39

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

4 Investment income

Investment income
Group Investment income Interest on bank deposits Corporation Investment income Interest on bank deposits	Unrestricted Restricted Endowment 2020 2019 income income income Total Total £ £ £ £ £ 198,719 10,008 5,105 213,832 214,236 2,537 - - 2,537 3,700
	201,256 10,008 5,105 216,369 217,936
	Unrestricted Restricted Endowment 2020 2019 income income income Total Total £ £ £ £ £ 232,464 - - 232,464 237,486 2,537 - - 2,537 3,700
	235,001 - - 235,001 241,186

Comparative information is included in note 32.

Page 40

NOTES TO THE FINANCIAL STATEMENTS

THE CORPORATION OF ROSSALL SCHOOL

FOR THE YEAR ENDED 31 AUGUST 2020

5 Income from charitable activities

Income from charitable activities
Group School fees Other charges to pupils Scholarships and discounts Registration fees Summer school Staff accommodation Rates recharges to staff Corporation School fees Other charges to pupils Scholarships and discounts Registration fees Summer school Staff accommodation Rates recharges to staff Income from subsidiaries		Unrestricted Restricted 2020 2019 income income Total Total £ £ £ £ 12,164,095 - 12,164,095 11,633,153 294,501 - 294,501 497,942 (2,764,188) - (2,764,188) (1,819,232) 39,270 - 39,270 38,692 (22,014) - (22,014) 194,921 72,624 - 72,624 72,764 37,117 - 37,117 39,460 9,821,405 - 9,821,405 10,657,700 Unrestricted Restricted 2020 2019 income income Total Total £ £ £ £ 12,164,095 - 12,164,095 11,633,153 294,501 - 294,501 497,942 (2,764,188) - (2,764,188) (1,819,232) 39,270 - 39,270 38,692 (22,014) - (22,014) 194,921 72,624 - 72,624 72,764 37,117 - 37,117 39,460 2,194 - 2,194 2,500
		9,823,599 - 9,823,599 10,660,200

All income from charitable activities was unrestricted in the previous year.

Page 41

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

6

The charity owns the whole of the share capital of Rossall Enterprises Limited (company number 02028626), which is incorporated in England and Wales. Its trading results for the year and a summary of the balance sheet, extracted from the audited accounts, are summarised below:

Turnover Cost of sales Gross profit Administrative expenses Operating profit Interest payable Profit before gift aid Charitable donation Retained profit for the year Assets Liabilities Share capital and reserves	Rossall Enterprises Ltd 2020 2019 £ £ 189,505 532,159 (173,842) (372,890)
	15,663 159,269 (38,178) (35,126)
	(22,515) 124,143 (2,194) (2,500)
	(24,709) 121,643 (64,637) (100,000)
	(89,346) 21,643
	135,047 366,392 (141,400) (283,399)
	(6,353) 82,993

Rossall Enterprises Limited provides accommodation and facilities for conferences, courses and activity holidays together with retail services for the benefit of the pupils of Rossall School and their parents. Rossall Enterprises Ltd donates its taxable profits to Rossall School.

7 Expenditure

Expenditure
	2020	2019
	£	£
Includes:
	20,800	20,000
Depreciation	722,741	635,821
Cost of stock recognised as an expense	86,694	126,691
Operating lease payments recognised as an expense	316,366	271,457

Page 42

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

• 8 Analysis of staff costs, Trustee remuneration and expenses, and cost of key management personnel

			2020	2019
The average number of full-time equivalent employees in			Number	Number
each department was:
Teaching and support staff			114	111
Administration and marketing			19	20
Welfare and medical			60	65
Premises maintenance			22	23
School total			215	219
Rossall Enterprises			7	8
Group total			222	227
Average total staff numbers employed (head-count)			255	256
Payroll costs were:	Group		Corporation
	2020	2019	2020	2019
	£	£	£	£
Wages and salaries	6,060,490	6,003,256	5,960,260	5,815,781
National insurance	531,848	513,407	526,183	506,666
Pension costs	961,982	671,505	956,350	664,775
Apprenticeship Levy	19,296	13,805	19,296	13,805
	7,573,616	7,201,973	7,462,089	7,001,027
The number of employees whose remuneration exceeded £60,000 was:			2020	2019
			Number	Number
£60,001 - £70,000			3	3
£80,001 - £90,000			1	1
£110,001 - £120,000			-	1
£120,001 - £130,000			1	-

Of the employees whose remuneration exceeded £60,000, there are three employees (2019: four) who are accruing benefits under defined benefit schemes. Pension contributions on behalf of these employees in the year totalled £62,271 (2019: £60,308).

The Governors receive no remuneration or benefits. Expenses of £213 (2019: £1,054) were reimbursed by the Corporation during the year to 4 (2019: 4) trustees.

The key management personnel of the group comprise the key staff identified on page 4. The total employee benefits of the key management personnel, including employer National Insurance contributions, were £1,093,711 (2019: £1,022,496).

Included in the above staff costs total are non-statutory/non-contractual severance payments totalling £46,287 (2019: £91,083). Also included in the above staff costs total are redundancy and contractual severance payments totalling £73,637 (2019: £nil).

Page 43

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

9 Analysis of total expenditure unrestricted income funds

Group Expenditure on raising funds Costs of raising funds: Rossall Foundation Fundraising trading: cost of goods sold and other costs Expenditure on charitable activities Teaching and support staff Other educational and direct costs Welfare costs Premises maintenance and running costs Marketing and agency costs Finance costs Bad debts Office support costs Governance costs (see below) Total expenditure Governance costs External audit Support costs Totals per above	Staff costs Rent, rates, insurance & utilities Other costs Deprecia- tion 2020 Total 2019 Total £ £ £ £ £ £ - - 10,499 - 10,499 36,573 111,527 - 97,443 - 208,970 405,125
	111,527 - 107,942 - 219,469 441,698
	5,147,835 - - - 5,147,835 4,741,528 - - 570,747 - 570,747 607,605 942,780 - 379,699 - 1,322,479 1,366,029 513,940 1,075,359 373,947 715,289 2,678,535 2,691,115 265,051 - 921,514 - 1,186,565 1,069,791 - - 155,378 - 155,378 107,812 - - 115,284 - 115,284 87,365 585,922 - 128,263 - 714,185 715,671 6,561 - 26,225 - 32,786 35,589
	7,462,089 1,075,359 2,671,057 715,289 11,923,794 11,422,505
	7,573,616 1,075,359 2,778,999 715,289 12,143,263 11,864,203
	- - 23,850 - 23,850 19,630 6,561 - 2,375 - 8,936 15,959
	6,561 - 26,225 - 32,786 35,589

Page 44

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

9 Analysis of total expenditure unrestricted income funds (continued)

Corporation Expenditure on raising funds Costs of raising funds: Rossall Foundation Expenditure on charitable activities Teaching and support staff Other educational and direct costs Welfare costs Premises maintenance and running costs Marketing and agency costs Finance costs Bad debts Office support costs Governance costs (see below) Total expenditure Governance costs External audit Support costs Totals per above	Staff costs Rent, rates, insurance & utilities Other costs Deprecia- tion 2020 Total 2019 Total £ £ £ £ £ £ - - 10,499 - 10,499 36,573
	5,147,835 - - - 5,147,835 4,741,528 - - 570,747 - 570,747 607,605 942,780 - 379,699 - 1,322,479 1,366,029 513,940 1,075,359 373,947 715,289 2,678,535 2,691,115 265,051 - 921,514 - 1,186,565 1,069,791 - - 181,049 - 181,049 137,978 - - 115,284 - 115,284 87,365 585,922 - 128,263 - 714,185 715,671 6,561 - 23,175 - 29,736 32,699
	7,462,089 1,075,359 2,693,678 715,289 11,946,415 11,449,781
	7,462,089 1,075,359 2,704,177 715,289 11,956,914 11,486,354
	- - 20,800 - 20,800 16,740 6,561 - 2,375 - 8,936 15,959
	6,561 - 23,175 - 29,736 32,699

Comparative information is included in note 33.

Page 45

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

10 Analysis of total expenditure restricted income funds

Group Expenditure on raising funds Expenditure on charitable activities Investment management charges Other educational and direct costs Premises maintenance and running costs Total expenditure Corporation Expenditure on raising funds Expenditure on charitable activities Other educational and direct costs Premises maintenance and running costs Total expenditure	Staff costs Rent, rates, insurance and utilities Other Costs Deprecia- tion 2020 Total 2019 Total £ £ £ £ £ £ - - - - - 3,000
	- - 378 - 378 518 - - 1,875 - 1,875 4,241 - - 40,473 7,452 47,925 27,715
	- - 42,726 7,452 50,178 32,474
	- - 42,726 7,452 50,178 35,474
	Staff costs Rent, rates, insurance and utilities Other Costs Deprecia- tion 2020 Total 2019 Total £ £ £ £ £ £ - - - - - 3,000
	- - 1,875 - 1,875 4,241 - - 40,473 7,452 47,925 27,715
	- - 42,348 7,452 49,800 31,956
	- - 42,348 7,452 49,800 34,956

Comparative information is included in note 34.

Page 46

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

11 Fixed assets Group Cost or valuation At 1 September 2019 Additions Disposals At 31 August 2020 Depreciation At 1 September 2019 Charge for the year Disposals At 31 August 2020 Net book value At 31 August 2020 At 31 August 2019 Corporation Cost or valuation At 1 September 2019 Additions Disposals At 31 August 2020 Depreciation At 1 September 2019 Charge for the year Disposals At 31 August 2020 Net book value At 31 August 2020 At 31 August 2019	Freehold Furniture Land and plant and buildings equipment Total £ £ £ 20,277,905 2,469,890 22,747,795 83,897 58,417 142,314 - - -
	20,361,802 2,528,307 22,890,109
	7,014,267 2,160,486 9,174,753 620,918 101,823 722,741 - - -
	7,635,185 2,262,309 9,897,494
	12,726,617 265,998 12,992,615
	13,263,638 309,404 13,573,042
	20,277,905 2,451,890 22,729,795 83,897 58,417 142,314 - - -
	20,361,802 2,510,307 22,872,109
	7,014,267 2,142,486 9,156,753 620,918 101,823 722,741 - - -
	7,635,185 2,244,309 9,879,494
	12,726,617 265,998 12,992,615
	13,263,638 309,404 13,573,042

Part of the land and buildings held at the year end were previously revalued by Duxbury's and Bentley Higgs & Co on 5 October 1996. This valuation will not be updated as the Corporation has taken advantage of the transitional provisions previously available under FRS15. The original cost less accumulated depreciation is £2,236,383 (2019: £2,287,452).

Page 47

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

12 Investments

Market value at 1 September 2019 Movement in cash held by broker Additions/ disposals Investment gains and losses Market value at 31 August 2020 Group £ £ £ £ £ Funds held by broker: Fund A 427,832 (17,566) (187,510) (17,487) 205,269 427,832 (17,566) (187,510) (17,487) 205,269 Corporation 2020 2019 £ £ Shares at cost: Rossall Enterprises Ltd 10,000 10,000 Rossall International Ltd 1 1 10,001 10,001 Group Investment gains/(losses): 2020 2019 £ £ Realised disposals (15,651) - Unrealised change in market value (1,836) (8,758) (17,487) (8,758)	Market value at 1 September 2019 Movement in cash held by broker Additions/ disposals Investment gains and losses Market value at 31 August 2020 £ £ £ £ £ 427,832 (17,566) (187,510) (17,487) 205,269	Market value at 1 September 2019 Movement in cash held by broker Additions/ disposals Investment gains and losses Market value at 31 August 2020 £ £ £ £ £ 427,832 (17,566) (187,510) (17,487) 205,269	Market value at 1 September 2019 Movement in cash held by broker Additions/ disposals Investment gains and losses Market value at 31 August 2020 £ £ £ £ £ 427,832 (17,566) (187,510) (17,487) 205,269
	427,832 (17,566) (187,510) (17,487) 205,269
			2020 2019 £ £ 10,000 10,000 1 1
			10,001 10,001
			Group 2020 2019 £ £ (15,651) - (1,836) (8,758)
			(17,487) (8,758)

The market value of investments includes cash held on deposit with the stockbroker as follows: Fund A £8,475 (2019: £26,041).

Rossall Enterprises Limited is a wholly owned subsidiary of the Corporation of Rossall School. Its principal activities are the provision of accommodation and facilities for conferences, courses and activity holidays together with retail services for the benefit of the pupils of Rossall School and their parents. In the opinion of the Council, the market value of the investment in Rossall Enterprises Ltd is equal to the cost.

Rossall International Ltd was incorporated on 1 April 2019 in order to explore opportunities including the opening of schools and educational activities outside of the United Kingdom. Rossall International Ltd is a wholly owned subsidiary of the Corporation of Rossall School and it is currently dormant.

Page 48

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

13 Debtors

Debtors
Trade debtors Prepayments & accrued income Other debtors Amounts due from group undertakings Amounts due from associated charities	Group Corporation 2020 2019 2020 2019 £ £ £ £ 181,252 302,416 181,252 302,416 22,401 63,586 - - 218,087 185,494 217,757 185,494 89,733 3,750 89,733 3,750 - - 113,573 265,193 5,503 5,451 5,503 5,451
	516,976 560,697 607,818 762,304

The amounts due from group undertakings within the Corporation includes £nil (2019: £100,000) falling due after more than one year.

14 Creditors amounts falling due within one year

Fees paid in advance Accrued expenses Other taxation and national insurance contributions Other creditors Pension deficit payments Fee deposits Amounts due to associated charities	Group Corporation 2020 2019 2020 2019 £ £ £ £ 2,611,129 2,543,445 2,611,129 2,543,445 588,524 631,967 577,675 613,021 830,287 152,226 826,937 147,277 104,159 63,537 86,879 63,537 76,000 74,000 76,000 74,000 186,010 136,047 186,010 136,047 183,018 134,275 182,709 133,966
	4,579,127 3,735,497 4,547,339 3,711,293

15 Creditors amounts falling due after more than one year

Fee deposits Amounts due to group undertakings Amounts due to associated charities Bank loans Pension deficit payments	Group Corporation 2020 2019 2020 2019 £ £ £ £ 564,430 550,039 564,430 550,039 - - 1,536,152 1,340,700 811,659 611,659 811,659 611,659 3,300,000 3,300,000 3,300,000 3,300,000
	4,676,089 4,461,698 6,212,241 5,802,398 726,000 785,000 726,000 785,000
	5,402,089 5,246,698 6,938,241 6,587,398

The Bank Loan is secured by a first legal mortgage over the freehold property of the School.

Page 49

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

15 Creditors amounts falling due after more than one year (continued)

Group and Corporation creditors include amounts of £2,749,070 (2019: £2,787,296) falling due after 5 years.

The bank loan falls due for repayment as follows:

Within one year Between one and two years Between two and five years After more than five years	2020 2019 £ £ - - 114,006 106,096 436,924 406,608 2,749,070 2,787,296
	3,300,000 3,300,000

The bank loan with HSBC Bank plc was arranged in order to facilitate the building of a £4.2m sports centre. The project was completed in May 2019 and the loan was converted to a fixed term facility.

The first two years of this loan are interest only and no capital is repayable. The rate for the first 12 months has been fixed at 3.24% and for the following 12 months the rate is variable at 2.5% over Bank of England base rate.

The loan is then repayable over 18 years with interest charged at 2.5% over Bank of England base rate.

Following the initial 24 month period, the terms of the loan are a three year fixed term with an amortisation period of 18 years. At the end of this three year period, the loan will be renegotiated.

16 Unrestricted funds Corporation of Rossall School Rossall Enterprises Ltd Group total	2020 2019 £ £ 6,853,282 7,603,780 (16,353) 72,993
	6,836,929 7,676,773

Page 50

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

17 Restricted funds

Restricted funds
Group Corlett Bursary1 Sir Thomas Lloyd Travel Fund2 Rossall Foundation3 Rossallian Club4 Miscellaneous projects5 War Memorial Fund6 Chapel Organ Fund7 Budge Memorial Fund8 Corporation Corlett Bursary1 Rossall Foundation3 Rossallian Club4 Miscellaneous projects5 War Memorial Fund6 Chapel Organ Fund7	Balance Investment Balance b/f at 1 gains/ c/f at 31 Sep 2019 Income Expenditure Transfers (losses) Aug 2020 £ £ £ £ £ £ 218,151 6,674 (233) (14,028) (15,651) 194,913 52,406 2,226 (96) (3,189) (483) 50,864 29,998 114,518 (32,983) (81,710) - 29,823 1,606 - (697) - - 909 10,054 26,014 (8,389) (16,903) - 10,776 56,002 - (3,865) - - 52,137 24,589 3,866 (3,866) - - 24,589 28,683 1,108 (49) - (241) 29,501
	421,489 154,406 (50,178) (115,830) (16,375) 393,512
	- 14,028 - (14,028) - - 29,998 114,518 (32,983) (81,710) - 29,823 1,606 - (697) - - 909 10,054 26,014 (8,389) (16,903) - 10,776 56,002 - (3,865) - - 52,137 24,589 3,866 (3,866) - - 24,589
	122,249 158,426 (49,800) (112,641) - 118,234

1. The Corlett Bursary Fund was created by G Corlett to fund bursaries and scholarships for pupils at Rossall School.

2. The Sir Thomas Lloyd Travel Fund is administered as part of Fund A. The income of the fund is to be applied in awarding travel scholarships to pupils who are either at Rossall School or who have recently left, for the purpose of enabling them to further their education beyond the British Isles.

3. The Rossall Foundation has provided funds to contribute towards the refurbishment of the school. The grants received have been credited to restricted income funds and the related expenditure included in fixed assets. Depreciation has been charged as an expense against restricted funds in the statement of financial activities.

4. During 2012/13 the Rossallian Club donated a minibus to the school. Depreciation has been charged as an expense against restricted funds in the statement of financial activities.

5. Miscellaneous projects are grants received from funds and individuals for the relevant expenditure. The grant received has been credited to restricted income funds and the related expenditure included in fixed assets. Depreciation has been charged as an expense against restricted funds in the statement of financial activities.

6. The War Memorial Fund represents amounts previously loaned to the School by the War Memorial trust fund which was written off and donated to the school to spend on the refurbishment of the cricket pavilion. This expenditure was partially capitalised and has been included in fixed assets with the depreciation being charged as an expense against restricted funds in the statement of financial activities. In 2018 the trustees of the War Memorial Fund transferred the remainder of its funds to the School to be kept as a restricted fund until a suitable project can be identified. The Chapel Organ is an integral part of the Memorial Chapel.

7. In 2019, a donation of £15,000 was received as a contribution towards the restoration of the historic Harrison organ in the School Chapel. A further £10,000 was transferred from the War Memorial fund in respect of this project in the previous year.

8. The W H Budge Memorial Fund is administered as part of Fund A. The income of the fund is to be applied for the promotion and furtherance of education in the provision of extra-curricular and leisure time activities for Junior School pupils whose parents are unable to meet the cost.

Page 51

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

17 Restricted funds previous year

Group Corlett Bursary1 Sir Thomas Lloyd Travel Fund2 Rossall Foundation3 Rossallian Club4 Miscellaneous projects5 War Memorial Fund6 Chapel Organ Fund7 Budge Memorial Fund8 Corporation Corlett Bursary1 Rossall Foundation3 Rossallian Club4 Miscellaneous projects5 War Memorial Fund6 Chapel Organ Fund7 18 Endowment funds Fund A	Balance Investment Balance b/f at 1 gains/ c/f at 31 Sep 2018 Income Expenditure Transfers (losses) Aug 2019 £ £ £ £ £ £ 236,684 8,434 (385) (22,199) (4,383) 218,151 54,605 2,173 (97) (3,124) (1,151) 52,406 115,286 321,940 (11,450) (395,778) - 29,998 2,303 3,000 (3,697) - - 1,606 12,769 - (2,715) - - 10,054 69,867 - (3,865) (10,000) - 56,002 - 27,818 (13,229) 10,000 - 24,589 28,211 1,084 (36) - (576) 28,683
	519,725 364,449 (35,474) (421,101) (6,110) 421,489
	20,313 1,886 - (22,199) - - 115,286 321,940 (11,450) (395,778) - 29,998 2,303 3,000 (3,697) - - 1,606 12,769 - (2,715) - - 10,054 69,867 - (3,865) (10,000) - 56,002 - 27,818 (13,229) 10,000 - 24,589
	220,538 354,644 (34,956) (417,977) 122,249
	2020 2019 £ £ 1,462,181 1,463,293

Fund A is a consolidation of various smaller funds and provides income for scholarships and prizes.

19 Pensions

Retirement benefits to employees of Rossall School are provided through two defined benefit schemes

Defined benefit schemes

teaching staff. The pension charge for the year includes contributions payable to the TPS of £776,230 (2019: £492,631) and at the year-end £89,313 (2019: £64,409) was payable in respect of contributions to this scheme.

The TPS is an unfunded multi-

tions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Page 52

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

19 Pensions (continued)

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of gave rise to unlawful age discrimination. The government is respecting said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020 and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuation, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Independent Schools Pension Scheme

employer scheme which provides benefits to some 66 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the School to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

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

rs are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Page 53

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

19 Pensions (continued)

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2017. This actuarial valuation was certified on 27 December 2018 and showed assets of £149.4m, liabilities of £187.6m and a deficit of £38.2m. To eliminate this funding shortfall, the trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows:

From 1 September 2020 to 30 April 2030

£2,387,257 per annum

These contributions will be payable monthly and will increase by 3% on 1 September each year.

was carried out with an effective date of 30 September 2014. This valuation showed assets of £110.0m, liabilities of £147.4m and a deficit of £37.4m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:

From 1 September 2016 to 31 August 2029

£2,341,000 per annum

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.

Contributions are made to the scheme in accordance with th actuary. The service contribution rate during the year was 25.7% of pensionable salaries, 7.5% paid by employees and the remaining 18.2% borne by the School. From September 2019, the service contribution rates increased to 30.5%, 7.5% paid by employees and the remaining 23% borne by the School. In addition the School paid contributions totalling £74,000 in respect of the past service deficit. At 31 August 2020, £27,463 was payable in respect of pension contributions to this scheme (2019: £42,335).

As the scheme is in deficit and the School has agreed to a deficit funding arrangement, the School recognises a liability for this obligation. The amount recognised of £802,000 (2019: £859,000) is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

A reconciliation of the total liability included within creditors is shown below. A total of £76,000 (2019: £74,000) is shown as due in less than 1 year, with the balance shown as due in greater than 1 year.

At 1 September Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any change in assumptions Remeasurements amendments to the contribution schedule At 31 August	Group and 2020 £ (859,000) (9,000) 74,000 (8,000) - (802,000)	Corporation 2019 £ (925,000) (17,000) 81,000 (39,000) 41,000
		(859,000)

Page 54

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

19 Pensions (continued)

The amounts recognised in the statement of financial activities are shown below:

	Group and	Corporation
	2020	2019
	£	£
Interest expense	9,000	17,000
Remeasurements to pension liability	8,000	(2,000)

The assumptions used are shown below:

The assumptions used are shown below:
	2020	2019	2018
	%	%	%
Rate of discount	0.90	1.10	1.96

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

Defined contribution scheme

Contributions are tiered with two separate options: 3% for the employee and 5.45% for the employer; 6% for the employee and 10.45% for the employer.

£108,104 (2019: £102,940). At 31 August, there were £nil accrued pension contributions for this scheme (2019: £nil).

Page 55

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

20 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net expenditure Loss / (gain) on investments Depreciation Investment income Finance costs and interest Decrease / (increase) in stocks Decrease / (increase) in debtors Increase in creditors Net cash provided by operating activities 21 Reconciliation of net cash flow to movement in net funds Increase in cash Other movements Cash (inflow)/ outflow from (increase)/ decrease in debt and lease financing Increase / (decrease) in net funds Net funds at 31 August 2019 Net funds at 31 August 2020 22 Analysis of net funds 2019 £ Cash and bank balances 3,065,428 Bank Loan (3,300,000) Other debt due within one year (270,322) Other debt due after one year (1,161,698) (1,666,592)	Net expenditure Loss / (gain) on investments Depreciation Investment income Finance costs and interest Decrease / (increase) in stocks Decrease / (increase) in debtors Increase in creditors Net cash provided by operating activities 21 Reconciliation of net cash flow to movement in net funds Increase in cash Other movements Cash (inflow)/ outflow from (increase)/ decrease in debt and lease financing Increase / (decrease) in net funds Net funds at 31 August 2019 Net funds at 31 August 2020 22 Analysis of net funds 2019 £ Cash and bank balances 3,065,428 Bank Loan (3,300,000) Other debt due within one year (270,322) Other debt due after one year (1,161,698) (1,666,592)	2020 2019 £ £ (803,933) (104,766) 17,487 8,758 722,741 635,821 (216,369) (217,936) 155,378 107,812 9,045 11,638 43,721 21,760 677,924 282,822
		605,994 745,909
		2020 2019 £ £ 1,042,844 419,265 5,599 4,872 (318,696) (3,288,131)
		729,747 (2,863,994) (1,666,592) 1,197,402
		(936,845) (1,666,592)
		Other Cash flow movements 2020 £ £ £ 1,042,844 - 4,108,272 - - (3,300,000) (98,706) - (369,028) (214,391) - (1,376,089)
	(1,666,592)	729,747 - (936,845)

23 Significant non-cash transactions

Investments as shown in note 12 are managed on behalf of the charity by Cazenove Capital Investment Ltd. Capital transactions do not affect the charity's cash balances and are excluded from the cash flow statement.

Page 56

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

24 Taxation

The Corporation and its subsidiary are registered charities and are exempt from Corporation Tax under the provision of Section 478 of the Corporation Tax Act 2010.

Rossall Enterprises Limited is a trading subsidiary of the Corporation and is liable to Corporation Tax on its taxable profits at the rate applicable to small companies.

25 Analysis of balances by fund

Analysis of balances by fund
Group Tangible fixed assets Investments Stock Debtors Cash at bank and in hand Creditors due within one year Creditors due after one year Loan from Trust Fund A to the school	Unrestricted Restricted income income Endowment Total funds funds funds Funds 2020 2020 2020 2020 £ £ £ £ 12,961,576 31,039 - 12,992,615 - 81,908 123,361 205,269 48,706 - - 48,706 516,976 - - 516,976 4,021,077 87,195 - 4,108,272 (4,575,165) (2,082) (1,880) (4,579,127) (5,402,089) - - (5,402,089) (1,536,152) 195,452 1,340,700 -
	6,034,929 393,512 1,462,181 7,890,622

Analysis of balances by fund previous year

Group Tangible fixed assets Investments Stock Debtors Cash at bank and in hand Creditors due within one year Creditors due after one year Loan from Trust Fund A to the school	Unrestricted Restricted income income Endowment Total funds funds funds Funds 2019 2019 2019 2019 £ £ £ £ 13,534,550 38,492 - 13,573,042 - 303,285 124,547 427,832 57,751 - - 57,751 560,697 - - 560,697 2,981,671 83,757 - 3,065,428 (3,729,498) (4,045) (1,954) (3,735,497) (5,246,698) - - (5,246,698) (1,340,700) - 1,340,700 -
	6,817,773 421,489 1,463,293 8,702,555

Page 57

NOTES TO THE FINANCIAL STATEMENTS

THE CORPORATION OF ROSSALL SCHOOL

FOR THE YEAR ENDED 31 AUGUST 2020

26 Operating lease commitments

Endowment Fund (incorporating the Jackson

Scholarship Fund) and the Centenary Fund. These are leased to the school at an annual rental of £249,750, with reviews every 5 years. The next review is due in November 2020. The lease expires in November 2030. Additionally, the charity leases four minibuses and mobile digital devices for all pupils in Years 7-11 of the senior school.

At 31 August 2020 the group therefore had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts due within one year Amounts due between one and five years Amounts due after five years	2020 £ 310,754 1,058,380 1,311,188 2,680,322	2019 £ 316,366 1,119,384 1,560,938
		2,996,688

27 Capital commitments

As at 31 August 2020 the Corporation had capital commitments of £nil (2019: £nil).

Page 58

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

28 Related party transactions Income receivable by the group from associated charities during the year: Scholarships: The Jackson Scholarship Fund (net of parental contributions) The Trapnell Fund Grants for general educational purposes: The Rossall School Endowment Fund The Rossall Centenary Fund The Rossall Foundation Amounts payable by the group to associated charities during the year: Rent: The Rossall Centenary Fund The Jackson Scholarship Fund The Rossall School Endowment Fund Loan Indexation: The Trapnell Fund Loan Interest: The Trapnell Fund Amounts due to/(from) associated charities by the group at the end of the year: The Rossall Centenary Fund The Jackson Scholarship Fund The Rossall School Endowment Fund The Trapnell Fund The Rossall Foundation Net assets of linked charities not consolidated: The Rossall Centenary Fund The Rossall School Endowment Fund (incorporating the Jackson Scholarship Fund)	2020 2019 £ £ 74,607 103,535 115,185 108,467 21,341 21,339 177,380 177,005 114,518 321,940
	503,031 732,286
	157,343 157,343 71,178 71,178 21,229 21,229
	249,750 249,750 4,186 18,154 7,644 7,644
	261,580 275,548
	(4,865) (4,813) 23,726 - (119) (329) 770,642 745,625 200,000 -
	989,384 740,483
	3,112,234 3,107,337 2,149,931 2,130,804
	5,262,165 5,238,141

Additionally, staff costs include total remuneration of £110,315 (2019: £43,033) paid to the spouses of 3 (2019: 3) key management personnel, who are employed and paid under normal terms.

Page 59

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

29 Consolidated statement of financial activities previous year

Note Income from: Donations and legacies 2 Other trading activities 3 Investments 4 Charitable activities 5 Total income Expenditure on: Raising funds Charitable activities Total expenditure 9&10 Net income / (expenditure) before other gains/(losses) Net gains/(losses) on investments 12 Net income / (expenditure) Transfers between funds 17 Other recognised gains/ (losses): Remeasurements to pension liability 19 Net movement in funds Funds brought forward Funds carried forward	Unrestricted income funds Restricted income funds Endowment funds 2019 Total 2018 Total £ £ £ £ £ 41,466 354,644 - 396,110 549,966 532,158 - - 532,158 440,673 203,145 9,805 4,986 217,936 216,053 10,657,700 - - 10,657,700 10,209,462
	11,434,469 364,449 4,986 11,803,904 11,416,154
	441,698 3,000 - 444,698 453,317 11,422,505 32,474 235 11,455,214 10,983,686
	11,864,203 35,474 235 11,899,912 11,437,003
	(429,734) 328,975 4,751 (96,008) (20,849) - (6,110) (2,648) (8,758) 3,287
	(429,734) 322,865 2,103 (104,766) (17,562) 425,852 (421,101) (4,751) - - 2,000 - - 2,000 21,000
	(1,882) (98,236) (2,648) (102,766) 3,438 6,819,655 519,725 1,465,941 8,805,321 8,801,883
	6,817,773 421,489 1,463,293 8,702,555 8,805,321

Page 60

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

30 Corporation statement of financial activities previous year

Note Income from: Donations and legacies 2 Investments 4 Charitable activities 5 Total income Expenditure on: Raising funds Charitable activities Total expenditure 9&10 Net income /(expenditure) Transfers between funds 17 Other recognised gains/ (losses): Remeasurements to pension liability 19 Net movement in funds Funds brought forward Funds carried forward	Unrestricted income funds Restricted income funds 2019 Total 2018 Total £ £ £ £ 141,466 354,644 496,110 549,966 241,186 - 241,186 234,537 10,660,200 - 10,660,200 10,211,691
	11,042,852 354,644 11,397,496 10,996,194
	36,573 3,000 39,573 62,172 11,449,781 31,956 11,481,737 11,006,117
	11,486,354 34,956 11,521,310 11,068,289
	(443,502) 319,688 (123,814) (72,095) 417,977 (417,977) - - 2,000 - 2,000 21,000
	(23,525) (98,289) (121,814) (51,095) 6,768,305 220,538 6,988,843 7,039,938
	6,744,780 122,249 6,867,029 6,988,843

Page 61

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

31 Income from donations and legacies previous year

			Unrestricted	Unrestricted	Restricted	2019	2018
				income	income	Total	Total
				£	£	£	£
	Group
	Donations and bequests			41,466	354,644	396,110	549,966
			Unrestricted		Restricted	2019	2018
				income	income	Total	Total
				£	£	£	£
	Corporation
	Donations and bequests			41,466	354,644	396,110	549,966
	Gift aid from subsidiaries			100,000	-	100,000	-
				141,466	354,644	496,110	549,966
32	Investment income previous	year
		Unrestricted		Restricted	Endowment	2019	2018
			income	income	income	Total	Total
			£	£	£	£	£
	Group
	Investment income		199,445	9,805	4,986	214,236	213,619
	Interest on bank deposits		3,700	-	-	3,700	2,434
			203,145	9,805	4,986	217,936	216,053
		Unrestricted		Restricted	Endowment	2019	2018
			income	income	income	Total	Total
			£	£	£	£	£
	Corporation
	Investment income		237,486	-	-	237,486	232,103
	Interest on bank deposits		3,700	-	-	3,700	2,434
			241,186	-	-	241,186	234,537

Page 62

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

33 Analysis of total expenditure unrestricted income funds previous year

Group Expenditure on raising funds Costs of raising funds: Rossall Foundation Fundraising trading: cost of goods sold and other costs Expenditure on charitable activities Teaching and support staff Other educational and direct costs Welfare costs Premises maintenance and running costs Marketing and agency costs Finance costs Bad debts Office support costs Governance costs (see below) Total expenditure Governance costs External audit Support costs Totals per above	Staff costs Rent, rates, insurance & utilities Other costs Deprecia- tion 2019 Total 2018 Total £ £ £ £ £ £ - - 36,573 - 36,573 58,821 200,946 - 204,179 - 405,125 391,145
	200,946 - 240,752 - 441,698 449,966
	4,741,528 - - - 4,741,528 4,375,140 - - 607,605 - 607,605 594,029 918,062 - 447,967 - 1,366,029 1,326,794 504,441 1,054,011 509,828 622,835 2,691,115 2,628,850 222,736 - 847,055 - 1,069,791 1,130,552 - - 107,812 - 107,812 74,807 - - 87,365 - 87,365 31,427 604,828 - 110,843 - 715,671 749,171 6,432 - 29,157 - 35,589 31,548
	6,998,027 1,054,011 2,747,632 622,835 11,422,505 10,942,318
	7,198,973 1,054,011 2,988,384 622,835 11,864,203 11,392,284
	- - 19,630 - 19,630 19,775 6,432 - 9,527 - 15,959 11,773
	6,432 - 29,157 - 35,589 31,548

Page 63

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

33 Analysis of total expenditure unrestricted income funds previous year (continued)

Corporation Expenditure on raising funds Costs of raising funds: Rossall Foundation Expenditure on charitable activities Teaching and support staff Other educational and direct costs Welfare costs Premises maintenance and running costs Marketing and agency costs Finance costs Bad debts Office support costs Governance costs (see below) Total expenditure Governance costs External audit Support costs Totals per above	Staff costs Rent, rates, insurance & utilities Other costs Deprecia- tion 2019 Total 2018 Total £ £ £ £ £ £ - - 36,573 - 36,573 58,821
	4,741,528 - - - 4,741,528 4,375,140 - - 607,605 - 607,605 594,029 918,062 - 447,967 - 1,366,029 1,326,794 504,441 1,054,011 509,828 622,835 2,691,115 2,628,850 222,736 - 847,055 - 1,069,791 1,130,552 - - 137,978 - 137,978 101,621 - - 87,365 - 87,365 31,427 604,828 - 110,843 - 715,671 749,171 6,432 - 26,267 - 32,699 27,913
	6,998,027 1,054,011 2,774,908 622,835 11,449,781 10,965,497
	6,998,027 1,054,011 2,811,481 622,835 11,486,354 11,024,318
	- - 16,740 - 16,740 16,140 6,432 - 9,527 - 15,959 11,773
	6,432 - 26,267 - 32,699 27,913

Page 64

THE CORPORATION OF ROSSALL SCHOOL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

34 Analysis of total expenditure restricted income funds previous year

Group Expenditure on raising funds Expenditure on charitable activities Investment management charges Other educational and direct costs Premises maintenance and running costs Total expenditure Corporation Expenditure on raising funds Expenditure on charitable activities Other educational and direct costs Premises maintenance and running costs Total expenditure	Staff costs Rent, rates, insurance and utilities Other Costs Deprecia- tion 2019 Total 2018 Total £ £ £ £ £ £ 3,000 - - - 3,000 3,351
	- - 518 - 518 539 - - 4,241 - 4,241 3,906 - - 14,729 12,986 27,715 36,714
	- - 19,488 12,986 32,474 41,159
	3,000 - 19,488 12,986 35,474 44,510
	Staff costs Rent, rates, insurance and utilities Other Costs Deprecia- tion 2019 Total 2018 Total £ £ £ £ £ £ 3,000 - - - 3,000 3,351
	- - 4,241 - 4,241 3,906 - - 14,729 12,986 27,715 36,714
	- - 18,970 12,986 31,956 40,620
	3,000 - 18,970 12,986 34,956 43,971

Page 65