2021-06-30-accounts

Rugby School THE GOVERNING BODY OF RUGBY SCHOOL ANNUAL REPORT AND FINANaAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 Reglstered Charlty Number 528752 www.ru b school.co.uk

THE GOVERNING BODY OF RUGBYSCHOOL ANNUAI REPORT AND FINANCIAL sfATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 CONTENTS Page Governors. Principal Officers and Professlonal Advlsers The Report ofthe GovemSng Body 5-22 Independent Audltorfs Report 23-24 Consolldated Statement of Flnancial Actlvities Balance Sheets 26 Consolldated Cash Flow Statement 27 Notss to the Flnancial Statements 28-SS

THE GOVERNING BODY OF RUGBYSCHOOL ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021 The Governlng Body B J O'Brien, LLB {2.3.4.5.6.7} (Chairman from 5 July 20201 R J Elmhirst LLB12.3.4.5.6) {Deputy Chaimian from 5 July 2020) L J Holmes, BA (Hons) (Chairman) (resigned 4 July 20201 R C A Hingley. MA (Deputy Chairman) (resigned 4July 2020) N Bacon FCA CTA {2,3,5,711ioined 17 November 2020) J C Barwell OBE q2,3,4,7) D J Bennett. MA (Hons) {resigned 4 July 20201 C A Coates LLB (8) lioined 5 November 20211 J Eastwood BA {Honsl (8) R C Fletcher FRSA. MBA, Mphi17) Prof C J Howe SCD {1) {resigned 3 July 20211 H Jackson Bsc (Honsl (resigned 3 July 2021} S Lebus, MAIS) Iresigned 3 July 20211 G V Lloyd-jones {resigned 3 July 2021) C Marten MA (1,6,8) J Moreland MA. PGCE, NPQH18) A Pantelis (l) (ioined 10 March 20211 Rev Canon Dr M Pryce (l) ts'oined I Septernber 20211 General Sir T Radford KCB DSO OBE {6} D Skailes BSC FCA12,3.6} P Smulders, BA, MBA (5} C Wills LLP15.7) ts'oined 17 November 20201 G Woodward BA (Honsl (resigned 16 January 2022) Appolnted by Governing Body Governing Body Governing Body Governing Body Governing Body Governing Bodv Governing Bodv Governing Body Governing Body Governing Body Governing Body Governing Body Governing Body Governing Body Governing Body Common Room Governing Body Governing Body Governing Body Governing Body Governing Bodv Governing Body Governing Body Executlve Head Master P R A Green MA, PGCE Chief Operatlng Officer and aerk to the Govemlng Body P A Nicholls MA (CANTAB), FCA Deputy Executlve Head Dr N G Hampton MA IOXON}. PhD. PGCE Head of Rugby School G Parker-jones MA, PGCE Head of Bllton Grange G E B Jones MEd, BA IHons}, PGCE Prlndpal Address and Reglrtered Offlce Rugby School. The Bursary. 10, Little Church Street. Rugby, CV213AW THE GOVERNING BODY OF RUGBY SCHOOL

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2021 Membership of Governlng Body Commlttees (as of date of thls report) {1} Academic 121 Finance. Audit & Estates {31 Audit (41 Investment {51 International Development 161 Nominatlons 171 Arnold Foundation (8) Risk, complian￿ & Safeguardln8 Other Current Members of Governing Body Commlttees W Assheton (2,3) Dr C H Bames17) C Howe111 Ms D W Batstone (71 P Henderson {41 S Lebu5 (51 C T Lindsay (7) M D L Ponsonby {7) M Ruffell {41 M Mansell {2,31 A Stuart {11 M Turner {7} F Salway (2,31 P Yates141 (Relevont senior employees of the School are present in ottendance ot eoch Governing Body Committee but ore notfomially member5) Audltor Crowe U.K. LLP Cheltenham Advlsers Bankers National Westminster Bank plc. Ru8by Sollcltors Veale Wasbrough Vizards. Bristol Surveyor5 Farebrother. London Principal Investment Managers Quilter Cheviot Ltd. London Partners Capital LLP, London Veritas Investment Management, London

REPORT OFTHE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 The Governing Body of Rugby School {"Governing Bodf). who a￿ the trustees of ftugby School including Bilton Grange (the "School"). present their Annual Report and the audited financial staternents of the School for the year ended 30 June 2021. The Governing Body confirms thatthe financial statements comply with the charitvs governing document, with current statutory requirements, with applicable accounting standards in the Untted Kingdom, with the Charities Statement of Recommended Practice {the Charities SORP IFRS 102)l and with the Charities Act 2011. The School's Objertlves Choritoble Objects The proviS￿n of a broad liberal Christian education at a boarding and day school at the School for children from Rugby and neighbourhood and elsewhere. and by ancillary or incidentsl activities and other associated activities for the benefit of the community. Stotement of Values The School's principal activity is the education and pastoral care of its Students at Rugby School and Bilton Grange. All of its assets and its income and expenditure relate to that activity. The Sthool's fundamental ethos of 'the Whole Person is the Whole Point, is everything we undertake at the School to fulfil that principal aim. The Sthool's Development Plan includes a Statement of Values= The School operates all-round co-educational schoo15. where students are aclNely encouraged to develop their own individual skills and talents. Every child has something spetial inside them: it's our job to find out what that is. The S¢hool operates schoo15 which value outstanding academic performance - but never at the expense of achieving excellence in other fields. In our exper￿nCe. a hothouse isn't nece55arily a place where manv students will blos50m. Rugby School and Bilton Grange are schoo15 located in the Midlands. and we're often noted for our remarkably unpretentlOU5 atmosphere. But amongst Students and teachers alike. you'll detect a fierce pride about being here. We have a strong sense of service to the community. We're blessed with some marvellously well-equipped facilities, and we think it's only fair we afford wider access to them whenever we can. We also think it's fair to give children a chance to come here who coukln't otherwise afford to do so. The School operates true 7-day a week schools with a strong boarding ethos. The place doesn't empty at weekend5 for the simple reason that there'5 $0 much going on here. Rugby School and Bilton Grange are schoo15 that love to innovate and try out new things. Just because 'lt's never been done before. doesn't mean we shouldn't give it a go now. Without bein8 over-pious about it, the School is a Christian foundation. where diversity. tolerance and understanding are taught and differences celebrated with just the same skill and dedication as English and Maths. Rugby is a school with a strong House structure. and a lon8 tradition of in-house dining. This mean5 there's an unusual emphasis on indiwdual pastoral care, so being here really is the next best thing to being back home.

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 The School consistently strives for all-round excellence. It recogni5es that there are many fundamental qualities which are not examinable: curioslty. 5hrewdne55. initiative. leadership. an awareness of beauty, a sense of humour, a sense of responsibility and a gift for friendship. and that these and other basic qualities need to be developed in an institution that regards itself as educat#)nal. The Governing Body consider that the School provides an environment where each student is encouraged to develop and fulfil its potential, thereby inspiring a desire to contribute to the wider community. Objectivesfor the Yeur The Governing Body set the following aims for the academic year 2020121- lo maintain the Schx>fs commitment to high academic standards providing teaching in person and remotely,. to facilitate curriculurn. student and staff development through the implementation of an academic rolling plan; to enoble our students to gain admittance to the best univer51ties and courses they can- to continue the pioneering work of the Arnold Foundation and use the bursaries programmes (Arnold Foundation. Lawrence Sheriff and othersl to ensu￿ that acces5 to the School is as wide as possible; to maintain the standard5 of pastoral care through the implementation of a pastoral rolling plan: to continue to provide and enhance the range of co-curriculaf activitie5 to fulfil our ethos of Whole Person Whole Point.; to continue to explore opportunities to open overseas schools in partnership with suitable Investors,. to tontinue to improve the School's facilities and to protect the historic environment through capital projecls to improve and enhance the teachin& co<urricular and pastoral facilities throughout the School- to continue to improve the sustainability of the School estate through an ongoing programme of rapital investmenL Strategies to achieve Objectives The School's strategies for achieving its objectNes were to: continue to rewew the academic curriculum to ensure that it is both broad and challengin& continue to subscribe to independently set and assessed tests at age 13 and on entering the sixth form. which produce data which helps evaluates perfomiance at GCSE and A levels. The School uses this data to assess value-added performance, against which a summary of outcomes is prepared annually for the Governing Body: continue to use academic rolling development plans across the School and review these annually through department review meetings: encourage the students, spiritual and moral 8rowth. their tu￿Ural awareness and physical development by promoting participation in a wide range of activities and through the curriculum- continue to use a rigorous Personal Development Rewew {PDRI kyctess invofving the observation of lessons and the close scrutlDy of all departments: maintain the House structure. which continues to be one of the defining features of life at Rugby School,. provide enhanced CPD and research opportunities {learning awards) for all staff, includin8 learning awards. a Pastoral Leadership Qualificatlon through HMC and Ivnchtime INSED opportunities- enhance the process of Levee appointments and enhancing prefert trainin& including a programme of Graydin coaching;

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 increase the number of co-curricular. student-led opportunits and establish a speCif￿d student-led enrichment hour in the Scheme of Hours- develop further vocational societies: provide appropriate high quality educational facilities- offer opportunities to day students through the lawrence Sheriff Foundation awards and bursaries: identify 5Ultable candidates for Arnold Foundation funded pla￿5 at the School through links with portner charities and schools in the maintained Sector and working with The SpringBoard Bursaries Foundation; continue to emphasise the role of the chaplaincy. Choritoble Merger of Bilton Grange Preporatory School into Rugby School On 6 January 2020, the a55ets and liabilities of Bilton Grange Trust ￿mIted V￿re transferred to the School by way of charitable merger. Bilton Grange Prep School is a coducational day boarding nursery, pre-prep and preparatory school for students aged from 3-13 years old. It operate5 a 3+ Nursery called The Nest, a Pre-Prep Department up to Year 3 and then a Prep Departmenl up to sixth fomi Iyeaf 81. Review of the Yeaes Achlevements and Perf0M￿nCe Principt71 activities of the year Rugby School has 13 boarding houses and hvo day houw for 13-18 year old students. Bilton Grange is a predorninantly day school for student5 aged from 3-13 years old. however it also has a boarding house for boys and boarding house for girls in its Prep department. The average number ofstudents in Rugby School during the year was 842 {2020: 815). The totsl number of boarders was 658. which maintains the boarderlday ratio at approximately 80120. The average number of students of Reception age up to sixth form in Bilton Grange was 30512020: 3021 of whorn the average number of boarders was 43. The School'5 activities and strategy ovei the year have continued to support the Schoofs Development Plan. The School has maintained its high academic perfomiance and its Position as one of the leading coducational boarding schools In the UK and the wodd. Educotional Performonce The exam result5 for summer 2021 were as follows- All figures in percent A Levels (Including Pre-u) 2021 2020 2019 2018 Eng. 2021 Eng. 2020 83.3 95.6 100.0 70.5 63.8 85.4 l(K).O 44.3 38.1 85.7 99.8 E Ipassl 100.0 GCSE A19-8 A'.A19-7 77.7 91.7 97.7 Iw.o 61.9 77.0 57.4 81.8 85.9 95.5 l(K).O 30.0 27.5 A*.Clpass119-4 97.7 99.5 79.1 78.8 REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL

FOR THE YEAR ENDED 30 JUNE 2021 As previously noted, the School airns to offer far more than a strong academic performance. The Governing Body and staff place particular importance on robust and effective systems and processes for the pastoral care. support and guidance of our students. The School continues to offer a very broad range of culiural. artistic, sporting and musical opportunities as well as involving its students with the outside comrnunity. especially in collaboration with social services and through partnerships with local secondary schools. Some of the principal achievements of the School were- the school opened again in the Advent Tem) (September) 2020 under ￿ restrictions advised by the DfE. Those students who were required to isolate or who were unable to return to School from overseas acce55ed all their live lessons online in a 'hybrid' format. For those who lived in time Zones that made some lessons Impractical to access. live lessons were ￿Orded and made accessible on video retordings. The restrictions did not prevent the school from pursuing its whole person ethos as far as was safe. Sports training continued, as did musrc and drama. in an appropriately risk assessed manner. Student social interactions were carefully managed to balance the psychological riskof isolation within boarding household5 against the risks of COVID-19 within the context of government 8uidance. The result was that our students benefitted from as good a wholistic education a5 wa5 possible in the clrcumstance. the closure of the school site in January 2021 a5 a result of the Covid-19 pandemic caused Rugby School to move it5 educational provision online through to the end of the Lent Term. At very short notice a full timetable of le￿on$ was On￿ again taught live online. academic enrichment events continued live online. sports, music. drama and other activities also continued to take plate through the online medlum making use of the Microsoft Office software suite with students logging in from around the world: as a consequence an exceptional programme of academic and co-curricular enrichment with over 150 club5 and Societies was maintained (albeit with an element of online provision): excellent value-added results at both GCSE and A Level following TAGS led admittance to universities to remain strong, with almost all students progressing to university directly or following a gap year,. outstanding results in academic competitions e.g. over ICKJ in UKMT Senior Maths Challenge,. accreditation to begin teaching the International Baccalaureate Diploma Programme was aworded and teaching has now commenced as of September 2021: a Community Action Programme remained in place. suitably adjusted with an online rather than face-to-face medium. that enabled students to volunteer on different days of the week to participate in a wide ranBe of community-based activities; In response to 8lobal and national events Rugby redesiBned its PSHE and RSE provision to give greater emphasis to devebping student thinking and understanding of the perspectives of people who are different from themselves and to encourage the further 8rovrth of our inclusive and sensitive culture. at Bilton Grange, a similar online learning environment was put in place at short notice with age appropriate online teaching provided for pupils from as young as 3+ to the full teaching programme for those at the top end of the School. Bilton Grange also contributed to the nationol need to keep the emergency service5 going and offered onsite teaching and learning for the children of key workers even a5 it provided a full remote learning approach for all student5: students from Bilton Grange won a number of scholarships as they moved on to a range of public schools with the majority of Bilton Gran8e's leaving sixth formers and scholars progressing to Rugbv: Across Ru8by and Bilton Grange. all staff participated in a series of training sessions aimed at further developing our inclusive teaching and working culture.

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30JUNE 2021 in 2020121. 38% of Rugby School's students receNed concessions through Rugby School's Scholarships. Lawrence Sheriff Foundationships and Arnold Foundation schemes. These avffirds entitle students to financial as515tance up to 100% of fees. subject to parental means testin& During the year, financial support towards the Rugby School fees was thereby provided for 314 students, representlng 40% of students in Rugby School, including a significant number of students in receipt of bursary for the full value of the School fee5. A further 78 student5 at Bilton Grange received some fomi of financial support representing 26% of the students in Bilton Grange: we are particularly proud of our Continued efforts to build on and develop student mentorlng for Arnold Foundation students as part of our support for them. Co<urricult7r highlights of the year We were delighted to be awarded The Week's 'Best of the Best. award as 'Great for Co-turricular. and shortli5ted for the Final of the TES awards for '8est at Sports, award. This confirms that our co-curricular provsion is amongst the best in the country thanks to a team of energetic staff who passK)nately believe that developing the whole person engenders life skills in our young people which changes their lives. Preparing for the retum to school and adapting to COVID restrirtions challenged staff but the co-currKular programme was adapted. augmented and thrived despite the new challenge5 imposed. Livestre¢7m A positive outcome of the pandemtc has been the development of a You Tube channel where music and drama performances were livestreamed. and Chapel was broadcast to the wider Rugby community around the world. The Macready wa5 closed as a professional theatre. however the School hosted two performances from professional companies= one was to telebrate Black History month and the other a GCSE set text. Both were watched by a ￿Xia11Y distanced Rugby khool audience and live streamed to local state schools and to other schools across the world, including China. Generous sponsorship from Cemex pa￿ for this to be free for all local state schools. Rugby 360 The Community Action programme was re-launched as Rugby 360 with a new energy and dynamism. There was a focus on participation and engagernent from all pupils in the XX to D Block and staff with serrfice given by those who go into the community but also by bringing the community into Rugby School. Despite COVID-19 and having to diversify and move online. the programme flourished. with all 540 Students from the XX to D Block being involved with service education every week. Another benefit of the restrictions that COVIO imposed vrn5 the creation of some new seNbce initiatives and partnership5. These include mentoring younger students through the Rugby Portobello Trust in London via Zoom. weekly meetin85 Wlth children from the Huruma slum in Kenya. as well as supporting Care homes through the NHS charity 'Kissing it Betterf. A group of 20 LXX and DB pupils volunteered their time and resour￿$ to Introduce clubs and societles for students at Bilton Grange. Some of these new initiatNes are ex￿cted to continue once COVID restrictions are lifted.

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 20ZI Pupil leoder5hip All co-curri¢ular area5. including clubs and societies. were focused on developing pupil leadership. Clubs & Societies moved to being predominantty pupil-led with staff sponsors mentoring the pupil leaders to allow leadership characteristics and skills to grow. 15 pupi15 completed their nationally recognised Sports Leaders qualificat•on and were also awarded their Level 2 Certificate in Coachin8 (Sport & Physical Activity). As COVID restrictions were lifted. these pupi15 Started to go out into local primary sthools to lead after-school sports sessions. Duke of Edinburgh Nearly 5(X) students completed their 8ron2e. Silver and Gold Duke of Edinburgh expeditions in June 2021. This enabled us to catch up on the expedtiions postponed during the surnmer of 2020 due to the pandemic. Music Three pupils were awarded places in the inaugural School Or8anists' Association Young Organi5ts' Competition. This is a sucte5s following a promotion of organ playing at both Rugby School and Bilton Grange. particularly after the refurbishment of the Chapel organ. The whole of Rugby School 8athered in Chapel for the first time since March 2020 on Monday 21 June 2021. Following a hymn practice, Rugby Sch￿1 was then recorded by 8BC Radio 4 for their Sunday Worship which was broadcast 'as live, on Sunday 27 June 2021. The Temple Consort were also recorded by BBC Radio 3 for two Choral Evensongs which were broadcast over the summer. Rugby School remains one of only a very few schools to be asked to regularly contribute to Radio 3 & 4. LAMDA. ABRSM & Trinity music and drama examinations took place in person for the first time since March 2020. The School then saw record numbers of pupils take these examinations in the final weeks of the year despite most of their preparation being in online lessons. Rugby School also enjoyed two Summer Concerts in the TSR In the final weeks of term- one 5howcèsed the work that the strings and orchestra en5emble5 have done over the past year during lockdown and the other for w•nd and bra55. Performing Arts Rugby School was accepted onto the National Theatre's Connections programme where the School worked with an UP-and<oming youn8 writer to premier their play at Rugby before taking it to Derby Theatre. The performance had an enormous cast of 55 E and F Block actors in the show. The newly established LAMDA and Dance Showcase a150 took place in the Macready. however Government regulations meant that there could not be a live audience. but it was livestreamed to a large audience of wpils. staff and parents. The School saw a return of the Festival on The Close in the last week of temi. Due to Covid, this was pared down from prevlous years with limit5 Qn combinin8 the School and the public at the Festival stage. The Sthool aims to resume this element of the FestFval in June 2022. The evening performances were by Rugby School pupils who performed to the Rugby School community. These included the Concerto Concert, where the School'5 very best musicians play accompanied by a professional orchestra- Macbeth. the main School production which could not take place in February.. the E & F Block National Theatre commissioned-play: as well as other pupil performances and a finale of Rock and Pop bands. The Festival's main focus was on the workshops which took place during the afternoons. There were a wide range of extemal facilitators who tame to Rugby School to inspire and enthuse both the School's students and those from l(Kal schools whoioined each aftemoon. io

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30JUNE 2021 The traditional First Schools. Day. which could not take place in March. was amalgamated into the Festival on The Close. This was renamed 'Festival on The Close Service Darf to coincide with our renewed focus on seNice and the launch of Rugby 360. Nearly4(M) primary schod pupi15 Vi51ted the School from five local schools including two special schools. Through ongoing Rugby 360 activities we are developing and nurturing our relationship with both Brooke School and QUEST academy a5 we try to expand the horizon5 of our pupils beyond mainstream education. Rugby School pupils finished the year by deliverin8 bespoke workshops to the primary school pupi15 who visit. There were workshops involving community sclentists. linguists. sports leaders and art and design pupils. As part of the outreach of the day we worked with the Royal Birmingham Conservatoire Leap ensemble and the Birmingham Royal Ballet. As part of the picnic on The Close, Primary pupils watched a perfomiance of Wild by contemporary dance company. Motionhouse. whilst enjoying their packed lunch. Asupplementary part of the programme saw students from Rugby School leave the campus and head into four local primary schools to deliver workshops in their own 5¢hools. Overall, our workshops involved over 81X) primary school pupils. Sport The School rebranded and updated its sports kit after partnering with Kukri sPQrt and moving sales to their online website. The School also updated tis sports scholarship programme and renamed tt 'Aspiring Athletic Performer {AAPI Programme, to incorporate Sport5 Scholars and othe¥ talented pupils. The School provided support and mentoring for 68 AAPS. All AAPS received individual development plans that targeted shared goals within sport, and this was supported by I:1 coachin& fitness testin& strength and conditioning sessions and a perx)nal sports mentor. Girls, cricket is now fully established after a fwe-year development programme. Following an introduction several years ago and matches played on Caldecotts and OBS. the first ever Girls. Xl match was played on NBS. The refurbishment of the Near Turf astro was completed with it becoming the showcase hockey pitch. A programme of home swrts fixtures resumed following Covid at the start of the Trinity term with the boys, cricket Xl playing Rugby Cricket Club. This was swiftly followed by our fiTSt awoy fixtures since COVID disrupted organi5ed sport. The School was able to welcome parents to home fixtures following the May update to the Government guidance on Covid. The year also saw the retum of Sports Day and House athletKs returned on the penultimate day of term as boys, Houses continue to compete for the Wrigley Cup and girls. Houses competed for the Charles Prest Cup. Six girls are part of the Wasps netball squad. Two pupils were invited to Performance Centre hockey and prepared for selertion for the England Hockey Futures Cup. In cricket, Jacob Bethell represented Wanvickshire CCC 2nd Xl in a number of one-day and four-day matches. Ffion Purvis represented Warwick5hire Ladies. Her School batting performances hove caught the eye having scored over 250 runs before bein8 out in any match. Edward Delville-jones was selected into the GB cyclin8 team. Albert Sitwell who won the MidlandsTour Grade 5 tennis tournament. Other memoroble moment of the year The whole School gathered in a socialfy-distsnced manner on The aose to mark the Duke of Edinburgh's funeral, wonderful sign of unity within our community. The CCF were in attendance which was their first uniformed appearance since March 2020. li

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 The School enjoyed some visitin8 speakers wlth engagement from large group5 of pupils and staff despite these being online. Stuart Lawrence. Stephen Lawrence'5 brother, inspired the School with the challenge to overcome injustice. fight racism and live life to the fvll a5 part of the School'sstephen Lawrence Day awareness. Matt Dickinson. author and journalist. led a session with the E and F Block as well as a group of English A Level students, encouragin8 their creaiive writing skills. Ulrich Ladurner, author and journalist. a spoke about the impact of Brexit on Anglo- European relations. Ellie Holland. spoke to the Engineering Society on 'lVs a women's world too.. The new Levée were appointed just after Easter. Eight new enthusiastic LXX pupils started as the Co-curricular Levée. They have chosen to focus on participation, communication. mentorship and partnerships as their objectives for their year in office. To ensure partitipation and change. they have created inaugural Co-curricular Councils (Art & Design. Music, PerformingArts. Rugby 360. Sport) which each contain 9 pupi15 from a variety ofyear groups who will sit on their council for the year. Plans for Future Years The Governing Body continue5 to pursue the Schoofs general objertives as set out earlier. The Governing Body has also set the following aims for the academic year 2021/22: to maintain the School's commitment to high academic standard5: to facilitate Cufriculum. student and staff development through the implementation of an academic rolling plan: to enable our students to gain admittance to the best universities and course5 they can- to develop the provision at Bilton Grange Preparatory School as a core part of the Rugby Group of Schools; to continue the pioneering work of the Arnold Foundation and use the bursaries prograrnme5 {Amold Foundation and Lawrence Sheriffl to ensure that access to the School is as wide as possible,. to develop a plan for outstanding and forward thinking emotional and physical health and well-bein8 vision for 2022,. to continue to explore opportunlties to open overseas schools in partnership with suitable investors: to continue to develop and strengthen the 'Whole Person Whole Point. brand using positNe and Inspiring examples to illustrate our ethos in action- to plan and set up for the introduction of the International Baccalaureate in September 2021- to continue to improve the Schoofs facilities and to protect the historic environment through capital projects to provide outstanding facilities that are safe. secure and inspirational places to live and work in; to continue to improve the sustainabiltty of the khool estate throu8h an ongoin8 programme of ¢apital investment. Strategic development plans are presented to and reviewed by the Governing Bo(ty at least annually. Publlc 8enefft Oblectlves In setting the School's objectives and planning its actNities the Governing Body has given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fe￿harglng. 12

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 Widening otcess to the School The Governing Body is conscious that the schi)01s must femain accessible to talented children. irrespective of parentsl means. This wa5 the main driving force for the launch of the Arnold Foundation for Rugby School in late 2002. As of September 2021, 156 students and former students had benefited from support provided by the Foundation since 2(M)4. The Governing Body thank5 all the donors who have contributed to thi5 result and is delighted that there wefe 27 Arnold Foundation funded students at the khool dufin8 2020121. In September 2021 the number of student5 in the School who are funded by the Arnold Foundation is 28. Long before the launth of the Arnold Foundation for Rugby School, the School funded from its endowed and restricted funds a large number of scholarships, bursaries ond Contess￿nS. The Governing Body is determined to ensure that these are directed to cases of greatest need." therefore scholarship and foundation scholarship awards are initially for a maximum of 5% of fees, such scholarships bein& however, augmentable lup to I(m￿ if necessary} based upon an assessment of parental means. Bursaries policy The School's poliry is to award scholarships on the basis of an individuafs educational potential. The School provides bursaries and aLEgmentations. up to 100% of fees subject to means-tested assessments. to those students vthose education may be at risk due to financial hardship or to make place5 available for deserving students from families who might otherwise not be able to afford school fees. The total cost of scholarships. bursories and augmentations during the year wa5 £4.4 million12020: £4.4 million) for the School including those of 8ilton Grange. Approximately a third of students receive awards. Awards entitle students to financial a55i5tance up to IIX>% of fee5. subjed to parental means tests. Contribution to local schools One fifth of the annual net income from the London Estate totalling £0.67 million12020'. £0.78 million) was paid to our neighbour, Lawrence Sheriff School. which operates in the state sertor. Community partnerships andservice5 The School aim5 to be a good neighbour in its local community and to develop mutually beneficial partnerships wherever possible. Such initiatives have included those detailed above in the Review of the Yearfs Achievements and Performance as well as: members of slaff contributed their time voluntarily to a number of charitable causes such as assisting in the running of the Bradby Club, the Rugby Portobello Trust. and the Lawren￿ Sheriff Almshouses a5 well as acting as governors of a number of local primary schools- 13

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 the School opened its 5P(*ts and other facilities to many Focal indmduals and organisations (including other schools) Charging rate5 below those applying to commercial businesses. sometimes providing facilities free ofcharge- both Rugby School and Bilton Grange's facilities are provided free of charge for a number of charitable fund- raising activities includin8 school sports days. concerts. plays, art exhibitions local sporting organisations: and numerous local choirs and orchestras have held ￿hearSalS and Concerts in a number of School venues durin8 the cotsrse of the year and the School ha5 also hosted several events involving local schools. Fundralskng Members of the khool's Development Office organise fundraising activities and events and co-ordinate philanthropic support and involvement both for the Arnold Foundation and the School. Neither the School nor the Arnold Foundation use fundraising consultants or involve commercial partKipators. The School is registered vrith the Fundraisin8 Regulator and operates according to the Code of Fundraising Practice. All dire¢t fundraising marketing is undertaken by the Development Office to ensure that it is not unreasonably intrusive or persistent. All promotional material contain5 clear instrurtions on how an individual can change their preferences for communication or be removed from mailing lists. There have been no complaints about fundraising activities during the year. Group Structure The School's consolidated report and financial statements include the artivities and results of its wholly-owned subsidiaries. Rugby School Enterprises Limited, Rugby School International Limited and Rugby khool Projects Limited and a150 of three associated charities- the Arnold Foundation for Rugby School, the Rugby School General Charitable Trust and the Rugby School War Mernorial Fund. The tr￿tee5 of these a$s￿lated charities are all appointed by the Governing Body of Rugby School. Ru9by School Enterpnses Limited The principal aim of this trading subsidiary is to generate income from the use of the School'5 facilitie5 when not required for their principal educational purwse. and particularly during holiday periods. The company operates knguage and other courses, operotes the School shop and also runs a Sports Centre which is open to the public when not being used by the School. The companvs distributabte income for the year is gifted to the School to be used for its principal activity. Rugbyschool Internotional limited The principal activity of the company is the provision of support to third parties to establish new premium international schools associated with Rugby School. in reLition to using the School'5 trademarks and know-how. Rugbyschool Projects Limited This subsidlary company supplies design and build seplices and in March 2019 completed the constructK)n of a new boarding house for the School. 14

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 The Arnold Foundutionfor Rugby School The Amold Foundation for Rugby School (the Arnold Foundation), an associated company that is also a registered charity. number 1095856, has the principal aim of raising funds for more bursary awards, widening access to the School, so that more talented people may benefit from a L￿ardIng school education at Rugby. irre5pertive of their parents, ability to pay the lees. The Ru9by School Generol Charitoble Trust Prior to the 2(K)2 incorporation of the Arnold Foundation for Rugby School. this trust (also an associated entity) was principally engaged in raising funds from supporters of the School. usually to assist with named capital projects. From 2002. activity in this Trust has been limited to the receipt of income from covenants and legacbes that were established before the Foundation's existence and for fund-raising activities not condutted through the Arnold Foundation. The Rugby School Combined War Memoriol Fund Originally established in honour of those members of the Rugby School family who fell in the two Great Wars, this trust lan a550¢iated entity) uses its investment income to fund scholarships or bursaries awarded to the children of Rugbeians who Meet the criteria for financial a5SiStance to attend or remain at Rugby School. The Trustees have expanded the Fund's objects by way of a Charity Commission Scheme in order to allow it to also support the children of those working in the emergency services and the NHS. Flnancial Revlew The School endeavours to ensure financial stability and continuing solvency year on year so that it can pursue its educational aims and objectives. Rugby Sthool's management continues to recogntse the importance of 5tron8 Cost control, seeking to contain cost increases as much as possible while ensuring that the School continue5 to deliver first class education and pastoral care. The School's charitable actiVit￿S continue to be the main source of the CharitWs consolldated income and expenditure. The School's operations for the year ended 30 June 2021 resulted in a breakeven figure12020: £0.5 miifion deficit), after charging £3.74 million12020- £3.(￿ million) for deweciation on the School's property and equipment, but before pension revaluation adjustments under FRS 102. The consolidated net incoming resource for the year. before adjustin8 for Scholarships and bursaries, was £3.8 million12020' £14.7 million} which. in addition to the School's operating surplus. included. a reduction in fees in Lent Temi 2021 related to the educational provision being on a remote basis for part of thai time due to a pandemic related lockdown; a reduction in contributions from commercial enterprises as the School's results were impacted by the pandemic in the performance of its enterprises busine55 and tts international arm. which nevertheless contributed net funds to the group of £212.1XK)- 15

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 the furloughing of a number of sport5 centre and other non-teaching staff under the Governmenys Coronavirus Job Retention Scheme {CJRSI. to miti8ate the cash flow impact of the pandemic. This was in line with the Governmenys plans under the scheme to protect employment across sectors that could otherwise not operate. The School received support under the scheme from the government during the vear equating to 4.5% of its annual staff costs. The School did not furlough teaching staff, as they were al￿e to teach remotety, Noting that most of those furlou8hed were staff in the lowest quartile by hour pay. the School opted to supplement the amount paid by the Government180%1 towards these staff to support their income to be at their nornial pay level- the Arnold Foundation for Rugby School received endowed fvnds of £187.(￿ and restricted funds of £476,OIX) during the year; £590,Cth wa5 raised due to the auction proceeds from the sale of rare books which have been designated forthe Bloxam Fund- a net transfer of £2.6 million from the London Eslate, after the payment of the one-fifth share to Lawren¢e sheriff khool; other restricted funds in the Statement of Financial Acttvities include the School's Special Funds, the General Charitable Trust and the War Memorial Fund. which have generated combined net income (before realised and unrealised investment gains) of £0.2 million in the year. before providing for scholarships and bursarie5: £4.4 million Irepre5entin8 13.3% of gross fees) was used to fund scholarship and bursary awards. Assistance towards pa￿nent of the fees in this way was provided to a total of 338 students across Rugby School and Bilton Grange. This left a consolidated net deficit before the revaluation of investments of £0.7 millioTr12020.- £10.5 million surplu5). Including the year-end revaluation on investments. which are substantially either restrirted or endowment related, and the pension scheme actuarial revaluation, there was a net increase in the CharitVs fund5 for the year of £15.9 million12020: £2.3 million) as the financial and property investments saw a recovery in values from the low wlnts experienced due to the first Covid-related lockdown. Bolunce Sheet The movement of funds for the year generated total consolidated funds of £228 Million standing to the credlt of the School as at 30 June 2021 after including the merger of Bilton Grange. The underlying assets and liabilities are set out in the Balance Sheet and further analysed in the note5 which accompany the financial statements. Funds The results of School operations (fees and related incorne less expenditure to administer. maintain and develop the School) are identified Separate￿ within the body of the financial statements. The use of net funds generated by this activity is unrestricted. 16

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOI FOR THE YEAR ENDED 30 JUNE 2021 Endowed funds are predominantly represented by the London Estate, consisting principally of property in London bequeathed by the School'5 founder. Lawren￿ Sheriff. This pemianent endowment yield5 commercial. retail and residential rental Income and, after accounting for the costs of its maintenance and administration. one fifth of the remaining surplus Iplu5 one fifth of the income from certain non-property investments) is paid to Lawrence Sheriff School, a nei8hbouring secondary school originally established by the Governing Body of Rugby School and now operating in the state sector. Of the four-fifths which remain. the primary use is to fund foundatlons, scholarships and bursarie5. Any remaining balance is unrestricted in use. but in practice 15 applied to finance capital projects which are of long-lerm benefit or atcumulated for the same uses in future years. Restricted funds can only be used for specified purposes and. accordingly, the School accounts separately for such assets. and for the income and expenditure related to them. The Consolidated Statement of Financial Activitie5 fuither analyses these restricted funds as Special funds. consisting principally of fixed interest bearing securities and holdings in investment trusts and equities. many of which arose ori8inally from bequests for specific purposes, such as scholarships. bursaries and prizes. The annual net income from such funds is used exclusive￿ for the speclfied purposes, with any unallocated amounts being carr￿d forward for the specific purposes in future years. Other restricted funds consist primarily of gifts and legacies received through the Arnold Foundation for Rugbv School, but also through the General Charitable Trust and the War Memorial Fund (see above). Gifts from the General Charitable Trust are utilised in the period. The carried forward balance of other items on the Statement of Financial Activities relate5 to the Arnold Foundation for Rugby School and the War Memorial Fund (see note 211. Reserves Policy The Gi)verning Body has currently adopted the reserves objertive that the School shall make an operating surplus after depreciation on a rolling three-year basis. The School does not expert to borrow money to cover operational requirements Other than to cover short-term timing issues. The School has issued a £35 million private placement in orde¥ to fund various capital expenditure programmes in view for the comin8 five years. It is the intention of the Governing Body that. on a continuing basis, the School will retain sufficient unrestricted reserves to sustain the fixed assets which are used by the khool for tts charitable activities. In those years where there are free reserves. the khool may consider advancing the capital expenditure programme or designating funds for an identified pro8ramme of capital rnaintenance and investment. In other years where the School may have negative free reserves. the School aim5 to mana8e the day to day workin8 capital requirements through careful management of short term liquid resources. The policy on the unrestricted reser￿5 ensures that a proportion is allocated as designated funds, established Sn respect of: Fixed assets fund- the School will retain sufficient unrestrKted reserves to Sustain the fixed a55ets which are used by the School for its charitable activitie5. New boarding house fund- the School set aside monies towards the cost of building a new boarding house as part of the refurbishment of the School's existing boarding accommodation. Building maintenance fund - Ihe School is setting aside additional monies towards the costs of maintainirsg the School's facilities as part of its development plans. Rugby School Enterprises fund- the fund5 gifted to the School by the trading subsidiary are to be utilised on projects determined by the Governing Body which benefit a significant proportion of the School's community. During the current year this encompassed the provision of additional 5¢holarships. 17

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 The financial statements indicaie that the majorityof the schoofs unrestricted funds of £70 million (see note 22) are invested In premises and equipment of £56 million. £19 million in other designated funds as described above. leaving general unrestricted funds, or free reserves at a deficit of £3.5 million before any pensFon provision. Given the financial strength of the Schwl, in particular the endowment investments. the Governin8 Body is satisfied that this is adequate. The Governing Body prepares a detailed long-term plan having regard to the SchooV5 financial and physical resources, so that at all times the School reLiins the strength and flexibilityto respond to contingencies and to longer term needs that may not be currently foreseen. Accordingly. the Governing Body consider that the School and the group hève adequate resources and flexibility for the foreseeable future and consequently the adoption of the 80ing concern basis is appropriate in preparing the financial statements. The reserves policy 15 rnonitored by the Finance & Audit Committee and is reviewed annually. Fundralslng Perfommnce The Arnold Foundation received £0.67 rnillion of donations and legacies in the year. These funds will be applied for the Specific aim of providing mean5-tested bursaryawards to those students whose parents would not otherwise be able to afford an education at Rugby School. Investment Performance In relation to its financial investments. the Governing Body aims to optimise the returns generated by the investments such that. over the longterm, the capital values are. at the least. maintsined when adjusted for inflation. This objective will be achieved if the benchmark. determined for each fund. is exceeded by at least 0.5% per annum on a rolling 3, 5 and 10 year period. provided the total return tsrgets are aLs0 met. There are no specific re5triction5 Other than that the irbvestments should be suitsble for trusts. The School's investment perforMa￿e is monitored regularfy against objectives by the Investment Committee. Goveman¢e and Management Chority Govemonce Code The Governing Body understands that effective govemance is critical in runnin8 the charity and uses the Charity Governance Code as an important tool in assisting with the continuous review of governance of the Charity. Governing Body The School is an unincorporated charity created by the will of Lawrence Sheriff in 1567 and is a recognised charrty under the Charities Act 2011 Icharity number 5287521. rts trusts include the Will, the 1873 Scheme and the Rugby School Act 1922. The Governing Body of Rugby School is a body co¥porate incorporated by Act of Parliament. under the Public Schools Acts 1868. as the chariVs corpM)rate trustee. A5 well as being regulated by the Charities Act, the Governing Body and the School are regulated by the Publi¢ Schools Acts 1868 and 1872. by the 1873 Scheme. by the Rugby Lower School ITransferl Art 19)6 and by the Rugby School Act 1922. Appolntments, Recruitment and Troining of Governors Under the statutes, there is one nominated Governor and oiher rnembers are appointed by the Governing Body itself. The Govemors and principal officer5 are named on page 3 and 4 of this report. 18

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30 JUNE 2021 At the end of the 2019-20 school year. on 4 July 2020. The Chaimian of the Governin8 Body. Mrs Lucinda Holmes and the Deputy Chairman, Mr Robert Hingley retired and were replaced by Mr Barry (YBrien and Mrjake Elmhirst respectively. Mr David Bennett stepped down as a governor on 4 July 2020. Resignations at the end of the 2020-21 School year included Prof Chris Howe. Mrs Helen Jackson, Mr Simon Lebus and Mr Gareth Lloyd-jones on 3 July 2021. Ms Gemma Woodward resigned as a governor on 16 January 2022. On 17 November 2020, Mr Nick Bacon and Ms Claire Wills were appointed as governor5. Ms Audrey Pantelis was appointed as a governor on 10 March 2021. The Reverend Canon Dr Mark Pryce was appointed as a govemor on I September 2021. Ms Caroline Coates was appointed as a governor on 5 November 2021. Where the Governing Body itself co-opts a new member, thi5 follows a $elect￿n process and a recommendation from its Norninations Committee. Governors are selected for their skills and experience across an appropriate spectrum. Before taking up appointment. new Governors Visit the school for induction, receive key information relating to the charity and Sign an appointment letter. All Governors are encouraged to attend the annual strategic planning meeting which often incorF)orates trustee-troining issues. The Governing Bodvs voluntary code on retirements provide5 that. with the exception of the Lord Lieutenant and the Chairman and Deputy Chairman. member5 of the Governing Body do not normally serye more than ten years, unless. in exceptional circumStan￿s. the Governing Body determines otherwise. Governance The Governing Body is responsible for the overall management and control of the School and meets at least once a term. It5 principal responsibilities are to: ensure that the School is run in accordance with its charitable objertNes and that all the function5 of the school are authorised by the powers provided by its statutes and regulations and by charity law; act in the best interests of the School and current and future beneficiarie5 at all times: appoint the Executive Head Master and after consultation with the Executive Head Master, the Chief Operating Officer, the Deputy Executive Head. the Head of Rugby School and the Head of Bilton Grange. the Deputy Head{sl and the A55i5tant Head(sl and approve their terms and conditions- in consultation with the Executive Head Master and his management team. set the strategy and policies by which the School will be run; approve the Development Plan- ensure that the School meets the objectives that the Governing Body Sets from time to time. control finance by approvin8 realistic budgets and longer-temi plans and by approving systems and Safeguards that optimise the chances that they will be achieved: ensure the effective and efficient admlnistration of the School and its resources. striving for best practice in good governance- ensure that the School is compliant with appropriate statutory and advi50ry regulations and aim5 for best practice in this area: understsnd the extent of duties in relation to risk management and to legal compliance and be satlsfied that there is a rolling programme for meeting them: ensure that compthent professional advice is taken when necessary: appoint a Chairman and Deputy Chainnan: appoint members to its committees: and review and approve the terms of ￿ference and the output of these commlttees. 19

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30JUNE 2021 Or8anisatlonal Management Governing Body Committees The Governing Body has appointed the following comrnittees (shown alphabeticaltyl of its members to oversee the activities set out below. Membership is supplemented by the attendance of some of the principal offi￿r5 of the School and by others with appropriate specialist knowledge. All these committees report regularly to the Governing Body and their temis of reference are reviewed annually. Academic Committee: Review of academic poliries and performance. Arnokl Foundation Committee.. Advise and support the trustees of the Arnold Foundation and the Governing Body in raisin8 funds for the Arnold Foundation. Risk. Compliance and Safeguarding Committee: Le8islalion and inspection compliance. rlsk rnanagement. Finance, Audit and Estates Committee." Finantial pM)licy and general operations relating to the runnlng of the School. Audit Committee.. The Audit Committee is effectively a sub<ommittee of FAE and addresses financial reporting, systems and controls. International Development Committee: Forniulation of the strategy for Rugby School's internatronal development and recommend international projects. Investment Cornmittee.. Management and administration of Special Funds and all other non-pioperty investments. The Governing Body have agreed that the School's investment portfolio be managed on a discretionary basis by its Investment Managers subject to F4)licies and objectives that the Governing B establishes from time to time having regard to the Investment Committee's recommendation5. Nominations Committee: Review of Goveming Body membership. includin8 recommendations of individuals who might be co-opted to the Governing Body. Membership of these committees is shown on pages 3 and 4. Key Mon¢7gement Personnel The Governing Body delegates the daity management of the School to the Executive Head Master. The Executive Head Master is aided by other Key Management Personnel as detailed below. Remuneration of the Key Management Personnel is set by the Nominations Committee with the policy objective of providing appropriate inontives to encoura8e performance and of rewarding fairly any individual contributions to the School's success. Chonges to Orgoni5ational Management in 2020-21 From September 2020. the School and the Governing Body made changes to the organisational management of the School with PeterGreen and Neil Hampton assuming the roles of Executive Head Master and Executwe Deputy Head, respectively, and Gareth Parker Jones assuming the role of Head of Rugby School. Alex Osiatynski continued in the role of Head of Bilton Grange. The Executive Head Master manages the School wa an exLxutive leadership group at the strategic level supported by the respective Senior Mana8ement Teams at Rugby School and Bilton Grange working at an operational level. 20

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOL FOR THE YEAR ENDED 30JUNE 2021 The Executive leadership Group comprised the Executive Head Master, the Chief Operating Officer, who 15 also Clerk to the Governing Body, the Executive Deputy Head the Head of Rugby School and the Head of Bilton Grange. the Development Director the Estates Director. the Finante Director. the HR Dirertor, the International Development Director and the School Chaplain. The Leadership Group of the School comprised the SMTs of the schools together with the operat￿n5 and Administration Management Group and any other members of the Executlve Leadership Group. Support The School and the Governing Body greatly appreciate the important and valuable support given to the School in so many ways by Rugbeions and many other friends of the School. Above all. the Governing Body remains deeply grateful to the entire staff. both teaching and operational and administrative. whose unstinting hard work and loyalty has enabled the School to achieve its major objectives. Prlnclpal Rlsk and Rlsk Management The Governing Body conducts annually a review of risk assessments undertaken by the School's management to identify the major risks to which the Sch￿1 land the subsidiary and associated entities covered by this report) is exposed. and the systems foi their mitigation. The Governing Bod(s Risk. Compliance and Safeguarding Committee reviews the School's Risk Management Report termly. The Governin8 Body considers the principal ri5k5 faced by the khool to be: affordability of fees by parents across the independent school settor." future demand for independent education and particularly boarding education; the ability to continue to prowde education in the face of a pandemic- an inappropriote mix of students or unfilled student places- the ability to quickly implement any strategic change and the costs involved in implementation. particularly where the change is Outside the Schoofs control. such as changes in legislation. In the opinion of the Governing Body* the khool land the subsidiary and associated entities) has established resources and review systems which. under nornial conditions. should allow those risks to be mitigated to an cceptable level in its day-to-day operations. 21

REPORT OF THE GOVERNING BODY OF RUGBY SCHOOI FOR THE YEAR ENDED 30 JUNE 2021 Statement of Governlng Body respon51billtSes In respect of the Annual Report and the Flnandal Statements The Governing Body is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom GenerallyAccepted Accounting PractKe (United Kingdom Accounting Stsndardsl. The law applicable to charities in England and Wales requires the Governing Body 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 resouros of the group for that perh)d. In preparing these financial statements, the Governing Body is required to: select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP: make judgments 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: prepare the financial staternents on the going concern bas•s unle55 it is inappropriate to presume that the charity will continue in business. The Governing Body is responsible for keeping adequate accounting records that are sufficient to show and explain the charitrfs transactions, disclose with reasonable atcuracy at any time the financial position of the tharity and enable them to ensure that the financial statements comply with the Charities Act 2011. the Charities (Accounts and Reports) Regulations 2C(18 and the provisions of the chariVs tonstitution. They are also reswnsible for safeguarding the assets of the charity and the group and hence for taking rea￿nable steps for the prevention and detection of fraud and other irregularities. Auditors crOv￿ UK LLP has indicated its willingness to be re-apwinted a5 Statutory auditors. Approval This report and the accompanwng financial statements were approved by the Governing Body on 2 March 2022. B 0'8rien, Chairman 22

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNING BODY OF RUGBY SCHOOL Oplnlon We have audited the financial statements of Ru8by School for the year ended 30 June 2021 whith tomprlse the Group Statement of Financial Activities, the Group and Charity Balan￿ Sheets, the Group Cash Fl¢)w Statement and notes to the financial statements. Including a summary of significanl accounting policie5. The financial reportin8 framework that has been applied In their preparation is applicable law and United ￿n￿dI)M Attountin8 Standards. indvdin8 Financial Reportingstandard 102 The Financial Reporting Stsndard applicable In the UK ￿ Republic of Ireland IUnitÈd Kingdom Generally Accepted Attounting Practice). In our opinion the finanaal statements: give a twe and fairview ofthe stste of the 8roup's and of the parent tharivs affairs as at 30June 2021 and ofihe 8roup's incoming resources and application of re50urtes. including its income and expenditure for the year then ended,. have been properly prepared in accordanee with Untted Kin8dom Generally Ateepted Accountin8 Practice- and have been prepared in ac¢ordance with the requi￿rnents of the Charrlies Act 2011. Basls foi oplnlon We condurted our audit in accordance wrth International Stsndards on AuditSn8 IUKI IISA5 IUKII and applitable law. Our responsibilities under those standards are further destribed in the Auditorfs re5P¢n5ibilities for the audit of the financlal statements section of our ￿Port. We are independent of the group in accordance ￿th the ethical requirements that are relevant to our audit of the financial 5taternent5 in the UK including the FRC5 Ethical Standard, and we have fulfi'lled our other ethtcal responsibilitie5 in accordan￿ with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba51$ for our oplnlon. Concluslons rtln¥ to going contern We have nothing to report in respect of the following matters in ￿lat￿ to vthith the Ns IUKI require us to report to you where.. the trustw, use of the goln8con￿rn basis of *cOUnti￿ In the preparation of the finanual statements Is not appropriate,. the trustees have not disdosed in the finanoal statements any identified material ￿n￿rtaIntieS that may cast slgnificant doubt about the group's of the parenl chariws ability to continue to adopt the going ttjntern basis of accountin8 for period of at least twelve rnonths frnm the date when the financial statements are authorised for issue. Other Informatlon The trustees are ￿SponSible for the other infomation. The other information comprises the information includèd in the annual reporL other than the financial statements and ourauditorfs rewt thereon. Our opinion on the finantial statements does not cover the other information and we do not express any forn of assurance tondusion thereon. In ¢onnection wlth our audit of the finanaal statements, our responsibility is to read the other inlormation and. in doing so, consider whethef the othef inforrnation is materially inconsistent with the financial ststements or our knowledge obtainetl in the audit or otherwise appears to be materially misstated. If we identlfy such material inconsistencies or apparent material misstatements.we ale required todeterminewhetherthere is a material mis5tstement in the financial statements ora material mi$5tatement of the other inforTnation. ￿. based on the work we have perfomied, we conclude that therè is a materlal mlsstatement of thSs other information. we are reguire¢l to report that fatL We have nothing to report in thls regard. 23

INDEPENDENT AUDITOR'S REPORT TO THE GOVERNING BODY OF RUGBY SCHOOL (continued)

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 trustees' report; or

• sufficient accounting records have not been kept by the parent charity; or

• the financial statements are not in agreement with the accounting records and returns; or

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

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement set out on page 22, 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.

In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity 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 the Act and relevant regulations made or having effect thereunder.

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) wilt 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.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe UK LLP Statutory Auditor Cheltenham

Date: 25 March 2022

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

24

THE GOVERNING BODY OF RUGBY SCHOOL CONSOLIDATED STATEMENT OF FINANCIAL AcfMTIES FOR THE YEAR ENDED 30 JUNE 2021 2020 r(xM) r(¥Jo N¢)tes CharknlAe A(d Sthod feesrtcthble ArKiIlarytradl￿1￿cornt OtherTradlniA¢Ir4￿ Tradine Inctyne Inon-afflcltsyl al￿7 27516 27￿16 13 2.114 111 Inve5trnent Income 134 5.593 VoluDtarySoUrts t>)nafjons and le8aCtes Biiion Gran8e Merier by rk)nation S￿￿of king-hew d￿ated assets 532 7YJ 1.724 9,335 9.185 150 YA98 15.599 L504 4¥218 942 1,042 48.187 TotsllKorne 5367 41fi34 325 6.228 EXPEIIDITURE ¢4: Ratsln8Fund5 Trndkng Finantingcosts I￿$1ment managrntcosts Fund-r3￿￿￿and debwwrneni T•Wto# ofhmdraWry ChoYltableArtltAtIps SthoDI operdJons ol¥thhis, bur531iesaNJ yii Paymentto Lawrence S￿rIff 5chcal CostsofCharablefvthtRs 596 122 122 12 L816 302 1,828 372 372 874 1264 3.138 1.220 2,118 3.338 y￿l6 341126 29. 29,898 4.131 667 fj67 776 776 34J)26 29 4.440 34,338 34.9 7.(62 41J62 31.116 37,678 Not InromlryFyrnls Cw•tlon5 252 IL6951 LO518 323 13321 LO,SLO Neiwn511kn5sesl on knstrfOffS Iletl¢w 13 2.412 j.jii (7.5131 17,1201 535 204 17,2981 9,212 1734 641 LO.228 Translei beiweeTrfU￿?$ ActuarLBI1105sllBaln rffi dEfined benefit penslon Scheme NEThlOVEF•W4T114 FUI 2Q2122 599 12fv241 1024 1240 4.351 197 4333 7248 17.2201 1228 2.256 R¢(onLll•tlonof BaIaNceskn￿hlfor￿ard atllv 65.779 781 58531 14,164 2QJ,527 JO￿ne 70J>) 24.725 227&64 65.779 124.612 24191 211.783 The rthsrm p¥es 28to SS fomi p•rt of thesefinanual Statements. 25

THE GOVERNING BODY OF RUGBY SCHOOL BALANCE SHEETS ASAT30JUNE 2021 2020 Fll¢EDASSET5 F￿ehokj propert￿S.f￿1w¢$& e4Wnent IrNestrnents $6399 139.391 195. $4115 171,787 217J02 56.399 156.879 213,278 13 Stock Debtors I￿%￿$1m¢n￿- dep￿5 aThJcash 61 6361 li 4.6CI) 242 242 6J15 14Mo7 7,749 12,928 7mJ 12,778 CLKIftENTUABIUTIES C￿dItorS duewl¢tdn oneye (yJ321 iii P3651 IB.321 4AI7 4A54 217.732 16 .40) 197207 P.615) 22>￿16 ET ASSETS Excil￿N6 PENYON IMI 214,332 Oefined iwefit pen5kn SC￿ lat4lNy 12Y91 I2￿49) 194.657 227 211.783 Fiws OF7￿CHARl￿. 1ts.7C 124.612 Re#rf¢W 21 14 13.170 24.ns 2L392 Unrtstwted h￿d￿. Unrestrkied Incomefund5 Pensknn ￿Ser%￿ TO1￿ Wlr•std(tedf¥nd5 66.32B 11549) 71M2 IUS21 70JJ 64328 12,5491 65.779 I￿51) 70JJ8 I9•￿57 ZZ7.W 21L783 The defiatkn the financial yearln thefin4nual ststements of the parent tharify w•s£21 th(￿￿and1202o'. ￿r￿u$01 £0.5 mill￿￿). AFvoved bythe Govern1￿ 2 Marth 2022 arn4 ￿ed onth be￿ff Iy*f.' BJ rnan of Go¥ernhw B¢Jdy R J A EImhlrsi-Chaim￿n of Flnance Co ttee P A Nkhols-Clw"ef CWatM4 Officer Thenoteson paw 28 to 55 frKm partof these￿na￿l•l ststernerrt&

THE GOVERNING BODY OF RUGBY SCHOOL CONSOUDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30JUNE 2021 2021 2020 Net Incomeflyth? reportwr•knd las perthe SttmeniofFhwcla1kntr51 ElMiThatir￿O1 non.operntthg cash Irwestmentincoffteand bankinterestreceiyab P461 .5 Endowment d0that￿$ 12511 3,fd2 14,7271 3,739 Tvanslerof FixedAssetsfrom Eiknn Grymer8erl@ w8v) De£reaselllThereasel in Mocks Iln¢reaselLknease h) debws Incre5e thered#￿$ 37 11,6611 V45 8,Tr)7 Incre35ellOecreasel ￿ Fees ￿ advanrexheme I￿rEase￿ pensv)n S(he￿ liabthty 17.687 Purcha5eofffixed assets 15.9871 Sale of fKYed assets Purch45eof l)vesbiieiits I15￿51 14316 1218611 sale0f1m￿¢mefvts 10.379 Yestmertinctyne and bank interest re¢errfab 638 Tr&n5ferlwllfrom short tenn ba￿kde￿￿$ 14381 1,212 n8) 116.6811 New endowment5 251 187 251 1.257 6.591 sh at bank 7m3 7.848 notes on pages 28 to 55 form part ofthesefinancial statements.

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 30JUNE X121 I. PRINapAL ACCOUIITING pouaES Rugby School 1.the School") is an unincorporated charity created by the will of Lawrence Sheriff in 1567 and is a recognised charity under the Charities Act 2011 registered in England & Wales Icharitv number 528752}. Its trusts include the Will, the 1873 Scheme and the Rugby School Act 1922. The Governing Body of Rugby School is a l)ody corporate incorporated by Act of Parliament, under the Public Schools Acts 1868. as the charit*s corporate trustee. As well as being regulated by the Charities Act, the Governing Body and the School are regulated by the Public Schools Acts 1868 and 1872, by the 1873 Scherne. by the Rugby Lower School ITransfer} Act 1906 and by the Rugby School Act 1922. The principal address is The Bursary. 10 Little Church Street. Rugby, Warwickshire CV21 3AW. The financial statements have been prepared in accordance with applicable accounting standards in the United Kingdom and the Charities statement of Recommended Practice {the Charities SORP IFRS102)), Financial Reporting Standard 102 and the Charities Act 2011 and the Rugby School Act 1922. A summary of the principal accounting policies, which have been applied consistently. is set out below. (al Basls of Accountlng The charity meets the definition of a public benefit entity. The Governing Body consider that there are no material uncertainties about the charlt¢s ability to continue as a going concem. The financial statements are prepared on a going concern basis in accordarKe with the historical cost accounting basis except that investments held as fixed assets, including investment properties. are carried at market value at the balance sheet date. The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Reports) Regulations 2C(18 only to the extent required to provide a 'true and fair. view. This departure has involved following Accountin8 and Reporting by Charities preparSng their account5 in accordance with the Financial Reporting Standard applicable in the UK and republic of Ireland {FRS 1021 issued on 16 July 2015 rather than the Accounting and Reporting by Charities- Statement of Recommended Practice effective from l April 2(K)5 which has since been withdrawn. (b) Basls of Consolldatlon The consolidated statement of financial activit￿$ ISOFAI, balance sheet and the consolidated cash flow statement include the financial ststements of the School, its subsidiary undertakings and associated entities made up to 30 June 2019. The subsidiary undertakings of Rugby Sch¢)ol Enterprises Limited. Rugby School International Limited and Rugby School Projects Limited are all tradin8 companies. The associated entities are The Arnold Foundation for Rugby School, Rugby School Gerwal Charitable Trust and Rugby School War Memorial Fund, all of which are registered charities. No separate SOFA has been presefited for the chartty in the financial statements. The balance sheet of the parent charity is represented by the column headed "parent chariv and includes the results of School operations. the London Estate and the Special Funds. all of which are included within the same legal entity. 28

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 30JUNE 2021 The separate parent charitys Statement of Financial Actmties ISOFAI for the year ended 30 June 2021 shows gross income. excluding gift aid and donations from group entities. of £39.4 million 12020: £44.7 million) and a total deficit of £21,349 {2020- deficit of £488,194). The charity has taken advantage of the exemption avallable to a qualifying entity in FRS 102 from the requirement to present a charity only cash-flow statement with the consolidated financial statements. The consolidation has been carried out on a line-by-llne basis. {c) Fees and slmilar 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 net of staff concessions and sibling discounts but include contributions received from Endowed and Restricted funds for scholarships and bursaries. The provision of scholarships, augmentations and additional financial support is reviewed at least annually. (d) Advance Fees The School offers parents the opportunity to pay for up to 7 years fees in advance in accordance with a written contract. The amount received is invested and interest is accrued to contracts. This is treated as deferred income until the student joins the Sch¢)ol, whereupon the fees for each term are released to fee income. Amounts received as Advance Fees may be returned to parents subject to specified conditions. (e) Donations and legacles Donations are credited to revenue when receivable. Legacies are recognised as receivable once probate has been granted and notification has been received if sufficient information regarding the value is provided. Entitlement to legacies may be included in the year of notification subject to the funds being received during that financial year or within 2 months after the year-end. It is the policy of the Trustees that any shares or other securities that are donated be converted to cash as 500n as possible. No amounts are included in the financial statements for services generated by volunteers. Donations subject to specific wishe5 of the donors are retained in relevant restricted fund5. The assets and liabilities of Bilton Grange Trust Limited were transferred to the School by way of a charitable merger deed dated the on 6 January 2020. Given the nature of the transaction, the transfer has been reflected in the School's accounts as a donation. The results of the School in the year ended 30 June 2020 reflect the assets and liabilities as transferred and the operations carried out by Bilton Grange since 6 January 2020. lfj Expendlture All expenditure Is accounted for on an accruals basis as soon as a liability is considered probable and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings. they have been apportioned according to time spent. (g) Support costs Support cost5 include expenses which enable charitsble activities and fund 8enerating to be undertaken. These costs include finance and human resources and are allocated on a basis consistent with the use of the resource.

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 30JUNE 2021 (h) Govemance Costs Governance costs relate to the general running of the charity. These costs include audit. legal advlce for Governing Body and costs associated with meeting constitutional and statutory requirements such as the cost of Committee meeting5, the preparation of statutory financial statements and satisfying public accountability. (l) Recognltlon of Llabllltie5 Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events. (i) Leased Assets Rentals payable under operating leases are charged to the SOFA on a straight-line basis over the term of the lease. Where assets are financed by leasing agreements that give rights approximating to ownership {"finance leases.), the assets are treated as though they had been purchased outright. The amount capitalised is depreciated over the terni of the lease. Tr* correspondin8 leasing commttments are shown as obligations to the lessor. Lease payments are treated a5 consisting of capital and interest elements and the interest is charged to the SOFA in proportion to the remaining balance outstsnding. Ikl Flnance Costs These include amounts accrued in accordance with the temis of the Advance Fee contracts. {1) Currency The financial statements are prepared in sterling which is the functional currency of the School. Income and expenditure transartions incurred in forei8n currency have been translated during the course of the period at the rate of exchange ruling at the time of the transact•on. (m)Taxatlon As a registered charity, the School is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading activities carried on in furtherance of the charit￿5 primary objectives, if these profits and surpluses are applied solely for charitable purposes. Although the School is regISte￿d for VAT, School fee5 are exempt from VAT. Irrecoverable VAT on costs incurred is charged to the Statement of Financlal Activities. or capitalised as part of the cost of the related asset, as appropriate. (n) Penslon Schemes The School contributes to the Governmenys Teachers. Pension Scheme. a defined benefit scheme. at rates set by the Scheme Actuary and advised to the School by the Scheme Administrator. The pension liabillty 15 the responsibility of the Teachers, Pension Scheme. As a result, it is not possible to identify the assets and liabilities of the Scheme that are attributable to the School. Accordingly, the Scheme is accounted for as if it were a defined contribution scheme. The School also contributes to the Rugby School Pension and Life Assurance Scheme for Non- Teaching Staff. a defined benefit scheme. and the Rugby School Group Stakeholder Pension Scheme. a defined contribution scheme. The defined benefit scheme is administered by trustees and wholly invested with Baillie Gifford. at rates recommended by the Scheme Actuary. The defined contribution scheme is administered by Aviva.

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 (o} Tanglble Flxed Assets Expenditure on the acquisition or construction of new buildings, fixtures, fittings and equipment costing over £5,￿0 are capitalised and carried in the balance sheet at historical cost less depreciation. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of the cost. rf material. has been used. Other expenditure on fixtures and equipment incurred in the normal day-to-day running of the School and its subsidiaries. and costing less than £5.OfX). is charged to the SOFA as incurred. An impairment review of fixed assets is carried out on a regular basis. Ip) Depreciation Freehold land is not depreciated. Depreciation of other assets is calculated to write off the cost of the tsngible fixed a55ets. le55 their estimated residual value. on a straight-line basis over the expected useful economic life of the assets. Additions of freehold buildings and refurbishments are depreciated from the beginning of the year following completion. The principal annual rates over which assets are depreciated are- New building {incl. chapel organ) 50 years Refurbishments 15- 25 years All-weather pitches and telecommunications work IS years Cornputer equipment 3 years Other fixtures, fittings and equipment 5 years (q) Investments and Investment Income Investments are included at closing mid-market value at the balance Sheet date. Any reali5ed and unrealised gains and losses on revaluation or disposals are reported in the Ststement of Financial Activities. Investment properties (which are 311 held in the London Estate) are valued on an open market value basis. A formal professional valuation is carried out every 5 years and prepared on an informal basis in the intervening period. No Ilepreciation is provided on investment properties. Income from investments is included. together with the related tax credit. in the year in whlch It Is receivable. Rent receivable from investment property is classified as investment income. (r) Fund Accounting Unrestricted funds are available for use at the discretion of the Governing Body in furtherance of the general objectives of the School and have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Governing Body for particular purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the School for particular purposes. Endowed funds are funds for which the capitsl must be retsined in accordance with specific restriction5 imposed by dorK)rs. In particular: permanent endowment arises where a donor intends the gift to be permanently retained. All income for spending will accrue to the appropriate restricted fund. 31

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 expendable endowment funds are accounted for similarly, except that. if required. the capitsl may be converted into income for spending. Investment income and 8a•ns are allocated to the appropriate fund. Is) Totsl Return Accountlng During the year ended 30 June 2021 Rugby School. under powers granted by section 104A of the Charitie5 Act 2011. adopted a total return approach to the investment of the London Estate Investment Inon-property) Portfolio. The powers pennit the Trustees to invest these fur+ds to maximise total return and to make available a portion of the total return for expenditure each year. The intention is to receive a return of 3% each. with a minimum UTR of £500,1X(). Until the Trustees decide to appropriate all of the Total Return, the unappropriated portion of the Total Return shall be 'Unapplied Total Return, and remain part of the endowment. (t) Stocks Stocks are stated at the lower of cost and net realisable value. {u) Reserve for Repalrs. Rehabllftatlon and ReconstnKtlon In order to maintain the London Estate properties in good order. and with the a￿hOrity granted by the Minister of Education. a designated resep4e is set aside for repairs. rehabilitation and reconstwrtion. An appropriate sum is transferred to the reserve from the incoming resources of the London Estate to provide sufficient funds to meet liabilities arising in the foreseeable future. (v) Key Judgements and assumptions Estimates. judgements and assumptions are made based on a combination of past experience, professional expert advice and other reasonable factors relewont to the circumstances. The following areas have been considered= Penslon liability. The School engages a fimi of actuaries to provide expert advice al)out the assumptions made relating to the discount rate used. changes in retirement ages and mortality rates and the effect on the pension liability of changes in these assumptions. Investment property valuation. The School engages a fimi of chartered surveyors to provide adwce on the assumption5 relating to the valuation. Iw) Flnanclal Instruments Basic financial instruments are initially recogTrised at transaction value and subsequently measured at their settlement value, with the exceptton of investments which are held at fair value. The school and its entities onby have financial assets and l￿bilItIeS of a kind that qualify as baslc financial instruments. 32

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 30JUNE 2021 2. CHARrrABLE AcfiviTIES- FEES RECEIVABLE 2021 £000 2020 £000 The School's fee income cornprises: Gross fees Le55 scholarshipslbursaries not funded from Restricted Reserves Less staff. sibling and other concessions hool Fees Receivable (SOFA) 32.890 1220) 1863) 31,807 28,881 17261 16391 27,516 Less scholarshipslbursaries/granVprizeslother awards funded from Restricted Reserves Net Fees Add back from Restricted Reser (4,131) 13.664 23,852 3.664 27.516 27.676 4,131 31.807 In the figures for the year ended 30 June 2021. we have separated out certain scholarships and bursaries which were supported from Designated and other Unrestricted Funds rather than from Restricted Reserves. These changes have not been reflected in the comparative fi£ures for the year ended 30June 2020. 3. CHARITABLE AcfiviTIES. SCHOLARSHIPS, GRANTS. PRIZES AND OTHER AWARDS The total scholarships. grants, prizes and other awards paid for by Endowed and Restricted Funds comprise.. 2021 2020 £oco Foundation Scholarships Scholarships Arnold Foundation awards {means-testedl Bursaries {means-testedl Contribution to School fees Prizes and Exhibitions 113 1.343 1.018 1.656 4.130 116 942 1,067 1.538 3,663 4.131 3,664 The totsl scholarships. grants, prizes and other awards paid for by Unrestricted Fund5 comprise: 2021 2020 Scholarships Bursaries (means-testedl Contribution to School fee5 220 509 218 727 220 Total scholarships, grants, prizes and other awards 4,351 4.391 33

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 301UNE 2021 4. CHARITABLE ACtIVlTIES- OThER INCOME 2021 2020 Other educatlonal tharltsble actlvlues Registration fees Courses Other including tradesmen discounts and settlement fees 117 99 117 loo Other anclllary artivitie5 Extra-curricular activities and trips (recharged) Other including commissions 338 269 338 270 Other trading activitles School shop, museum. tuckshop and events 493 493 863 5. TRADING INCOME AND EXPENDtruRE 2021 2020 Non-ancillary trading activities-including trading svbsidiaries 873 2,114 Investment in subsldlary companles The School has three wholly owned subsidiaries. Rugby School Enterprises Limited, Rugby School International Limited and Rugby School Projects Limited, all are registered in England and Wales. The revenue accounts. cash flow, asset5 and liabilities are consolidated in these financial ststements. Full financial statements are filed with the Registrar of Companies. Rugby School Ernterprises ￿MIted5 principal activity is to supply third parties with the School's sports, catering and other facilities when these are not required by the School. The company covenants Its taxable profits to the SclM)ol. Rugby School International Limiteds principal activity is the provision to third parties of support to establish new premium inlernational schools associated with Rugby School. in relation to using the Rugbv School trademarks and know-how. Rugby School Projects iimited's principal actmty is the supply of design and build construction projects. Additionally. the School has three further associated charities - the Amold Foundation for Ru8by School. the Rugby School General Charitable Trust and the Rugby School War Memorial Fund. Details of the significant subsidiaries and associated entities at 30 June 2021 are:

THE GOVERNING BODYOF RUGBYSCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 30JUNE 2021 Cornpany Shareholdlng Net Assets reglstratlon at 30June number 2021 Turnover Expendlture (Ind Inrft Income) Proflt In the Year £'ooo 467 £'O¢J) 18 Rugby School Enterprises Limited Rugby School International Limited Rugby School Projects Limited The Arnold Foundation for Rugby School Rugby School Combined War Memorial Fund 2264068 100 (7,9491 4S9 10238790 1(M) 499 499 10742346 100 4516482 I8.￿7.791 1,246 1,446 12001 2,139,166 23 58 135) 6. INVESTMENT INCOME 2021 2020 Rents receivable Income on financial investments Interest receivable on cash portfolio 4,546 611 22 5,179 4.955 600 38 5.593 The rents receivable relates to leasehold property leases on the London Estate Inote 131. The future cumulative minimum lease income under non-cancellable operating leases on the London Estate are as follows: 2021 £000 2020 Cumulative Leasehold property income: Within one year Between 1- 5 years Over 5 years 3,758 11,476 16.546 31,780 5.347 20,659 28354 35

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 7. ANALYSIS OF TOTAL RESOURCES EXPENDED 2021 Total 2020 Total Note Staff costs Other Deprec'n costs Costs of Generatlng and Managlng Funds: Trading cost5 Fund-raising costs Finance costs Investment management Costs 422 203 174 169 596 372 1.086 302 122 1,829 1,902 1.902 625 2.513 3,138 3.339 Ch?rltable Actlvltles School operation5: Teaching Welfare Premi5e5 Support (including ancillary trading expenditure) Governance School's operating costs 12.836 925 3.452 1,564 3.547 3,595 524 212 3.1X)3 14.924 12.608 4,320 8,284 10.050 2,058 1,924 3,982 4.331 298 10.928 355 29.898 19,359 3,739 34,026 Scholarships, bursaries arKI prizes Payment to Lawrence 5herriff School 4.131 4,131 3.664 667 667 776 Total Expendlture 19,984 18.239 3,739 41,962 37.678 Support costs are attributsble to the charitable actiwty of the provision of educatlon and include finance, human resources, information technology. marketin& secretarial and legal support. 8. EXPENDITURE Total resources expended incltsde the following amounts: 2021 2020 Amounts accrued to advance fees Governors, travel expenses {6 Governors) Fees payable to the Charivs auditors for". The audit of the Charity and Group accounts Tax service5 18 io 53 52 Pensions audit Financial due diligence 15 15

THE GOVERNING 80DY OF RUGBY SCHOOL NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR ENDED 30 IUNE 2021 9. PAYME￿ TO LAWRENCE SHERIFF SCHOOL Under the Rugby School (Transfer) Act 1906. as amended by the Rugby School Act 1922 and an Order of the Secretary of State for Education and Science dated 30 October 1968. an annual sum is payable to Lawrence Sheriff School. consisting of the income from an initial investment of £34.500 (market value at 30 June 2021 of £957,43012020: £797.02211, plus one fifth of the remaining net annual income of the London Estate (before minor adjustments), plus £1(￿. The total amount payable to Lawrence Sheriff School in respect of the 2020121 financial year was £667,190 {2020: £776,423). 10. STAFF COSTS Total Staff Costs: 2021 £000 16.024 1.467 2,356 19,847 137 19.984 1020 £000 13,909 1.379 2,(142 17.330 136 17A66 Salaries and wages Social security costs Pension contributions Benefits- health Insuran￿ contributions Salaries and wages Staff costs include redundancy and termination costs of £22,000 {2020: £26,(Wl of which £20.( remained outstanding at the year*nd. The average number of staff employed in the year was: 2021 2020 No 201 432 633 Teaching Operations and Administration Total 223 461 The above figures for 2020 include staff at Bilton Grange onty for the period from January 6 to 30 June 2020. The School employs a significant number of part-time staff, many of whom are only employed for a few hours each week during term time. Key Management Personnel The earnings of the Key Management Personnel are deterniined by the Nominations Committee and for the year to 30 June 2021 were £1.719 million12020: £1.362 million) including Plld benefits. employer national insurance and pension contributions. Key Management Personnel are generally included in the table below and now include Bilton Grange's senior leadership team in full. 37

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 30 JUNE 2021 10. STAFF COSTS (continued) The number of employees whose emoluments. including Plld benefits but excluding employer natlonal insurance and pension contributions, exceeded £60.CKKI on an annual basis were: 2021 No 24 2020 No 27 io £60,OW- £69.999 £70,000- £79,999 £80,(￿ . £89.999 £90.1XQ- £99,999 £IOO.(KKI - £109.999 £I20,C￿- £129,999 £140.OIJ)- £149,999 £150,CW- £159.999 £190.000- £199,999 £230,(KM)- £239.999 33 of these employees (2020: 401 were members of a defined benefit penslon scheme and 5 employees12020: 51 were members of a defined contribution scheme at a char8e of £52,112 for the vear. No Governors or persons connected with them r￿Trved any remuneration or other benefits from the School or any connected or8anisation. 11. TAXATION The School has charitable status and is thus exempt from corporation tsx on primary purpose artivities. There is no UK corporation tax charge, in respect of the current or prior years. incurred by the trading subsidiaries, Rugby School Enterprises Limited. Rugby School Intemational Limited or Ru8by School Projects Limited. 38

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THÉ FINANCIAL STATEMENTS FOR THE YEAR ENOED 30JUNE 2021 12. FREEHOLD LAND & BUILDINGS. FixfuRES AND EQUIPMEKr Parent Charity and Consolldated Freehold land & bulldlngs Assets under construrtlon Flxtures & equipment Total COST As at l July 2020 Additions 89.057 8.023 97.080 2,784 1.193 221 450 3.455 Transfers {1,1931 1118) 7.162 Disposals As at 30June 2021 {118) 100,417 93.034 221 DEPREaATION As at ljuly 2020 Charge for the year Transfers 35.467 5,214 675 40.681 3,739 434 1434) {1181 5,337 Disposals As at 30June 2021 11181 44,302 38.965 NET BOOK VALUE As at 30June 2021 54.069 221 1.825 56.115 As at 30June 2020 53.590 2￿09 56.399 Fixtures and equipment include5 kitchen assets, purchased In line with the catering contract. The net book value of equipment includes £0 relating to assets held under finance leases (2020.. £15.(KK)l. A depreciation charge of £15,IJXI occurred in the year12020: £I6.c￿l. In additlon to the assets recorded on the balance sheet. the School has a collection of works of art and museum exhibits, which it has acquired over many years. mostly as gifts. A physical inventory of these assets is maintained but since such assets are held for educational purposes and are not for sale. the Governing Body consider that they do not meet the definition of Heritage Assets in the financial statements and the cost of valuation outweighs any benefit gained. In the opinion of the Governing Body the depreciated historical cost of these assets would now be immaterial. Capltal Commltments Capltal commitments at 30 June 2021 amounted to £1,395,785 {2020: £695,coJI. 39

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMEN75 FOR THE YEAR ENDED 30 JUNE 2021 13. FIXED ASSET INVEStMEtirs Parent Charfty London Bllton Grange Special Fund5 Composltlo n of Fees Total Balance at l July 2020 Additions Cash balance movement Disposals at net proceeds Revaluations Balance at 30June 2021 Represented by: Freehold properties Financial investments Cash deposlts 108.853 1,724 53 {2.082) 4.661 113.209 4,748 24,310 7.072 (158 17.0381 139,391 8.796 (84) (9.130) 11,230 150.203 18 {io) 927 5,668 {21 1.496 29.830 lo6.￿ 5.383 926 113.209 106,900 41,276 2,027 150,203 5,661 29.069 761 29,830 1.163 333 1,496 5.668 Consolldated Parent Charity Arno Foundation War Memorlal Total Balance at l July 2020 Additions Cash balance movement Disp05als at net proceeds Revaluations Balance at 30June 2021 139.391 8,796 1841 19.1291 11,230 150.204 15,796 1.692 661 37 {705} 407 2.092 156.879 15.805 44 116,326) 15,385 171.787 91 {6,492) 3.748 19.491 Represented by: Freehold properties Financial investments Cash deposits 106.91X) 41.277 2,027 150.204 106,900 62A54 2.433 171,787 19,135 356 19,491 2,042 50 2.092 The London Estate investments include property professionally valued by Farebrother, Chartered Surveyors as at 30 June 2016. The Govemirbg Bod￿5 updated valuation of the property portfolio as at 30 June 2021 was obtained in ¢on5ultation with the School'5 professional advisors and reflects the changes in the market conditions. The London Estate investments includes £103.6 million property and £5.293 million in its managed equlty portfolio.

THE GOVERNING 80DY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 13. FIXED ASSET INVESfMENTS fcontinued) The BG designated investments were donated to the group on 6 January 2020 as part of the merger of Bilton Grange into the School. These have been recorded at cost as of the time of original purchase. The valuation on transfer of these investments totalled £4.954.303 as of 6 January 2020. To fulfil the requirements of FRS 102, the Governing Body have included the properties In the financial statements at the open market valuation, though it is the intention of the Governing Body to retain the investment properties within the School's endowed funds {note 20} with only the income being used towards the School's charitable purposes. As described in the Governors. Report, Rugby School's share of the net income from these properties is used primarily to finance foundations. scholarships. bursaries and other allowances av￿rded by the School. The gross rental income generated from the London Estate properties in 2020121 was £4.34 million {2019120- £4.83 million). The Estate is Whol￿ owned by Rugby School. However. under the terms of the Rugby Lower School (Transfer) Act 1906 and of the Rugby School Act 1922. and as recorded in Note 9, one fifth of the annual net income from this Estate is paid to Lawrence Sheriff School in Rugby. Special Funds comprise 7 different funds. the income and capital from which is restricted for specific purposes such a5 scholarships. grants and prizes. 14. DEBTORS Parent Charity 2021 Consolldated 2021 2020 2020 £000 1.936 Trade debtors Taxation recoverable and accrued Income from HMRC Other debtors Inter-group balances Prepayments and accrued income 1.754 3.193 294 315 812 641 814 2.057 6,811 1,532 4.929 2.057 6,260 1,535 4.6 Other debtors in 2020 included proceeds of the sale of long-held donated assets (Bloxam fund). 41

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED30JUNE 2021 15. CREDITORS: due within one year Parent Charlty 2021 Consolldated 2021 2020 2020 Finance lease creditor Trade creditors Taxation and social security Other Creditors Inter-group balances Accruals and deferred income Entrance fees and final term deposits Advance fees Advance fees via Scheme (note 17} 19 2.439 77 1.744 19 2.464 78 1,824 2.709 551 1.745 2,782 556 1.676 1,751 1,704 571 1,161 500 8.321 571 1.161 554 9,132 554 9.365 8,111 16. CREDITORS: amounts due after more than one year Parent Charity 2021 Consolidated 2021 £000 2020 2020 Finance lease creditor Entrance fees and final term deposits Advance fees via Scheme Inote 171 3.153 462 3.615 2.834 561 3.153 462 3.615 2,834 561 17. FEES IN ADVANCE SCHEME Parents may enter into a contrart to pay to the School up to the equivalent of five years. tuition fees in advance. The money may be returned subject to specific conditions. Assumin8 the students enter and remain at the School. their advan￿ fees will be applied as follows: 2021 2020 Between 2 to 5 years Between I to 2 years 242 319 561 462 554 1,016 Within l year (note 15) Balance at 30 June 1,061 42

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED30JUNE 2021 17. ADVANCE FEE PAYMENTS (continued) The balance represents the accrued liability under the contracts. The movements during the period were: 2021 2020 Balance at l July New contracts Refunds Amounts accrued to contracts 1.061 622 897 753 1.684 1,651 15901 1,061 Amounts utilised in payment of fees to the School Balance at 30 June 1,016 18. PENSION SCHEMES (a) Teathers. Penslon Defined Beneffts Scheme The School participates in the Teachers. Pension Scheme {England and Wales) I'the TPS'I for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,750,Cth12020: £1.511,CX)01. There were no outstanding contributions payable at the year-end (2020- £nill. The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers. Pensions Regulations 2010 las amended) and The Teachers. Pension Scheme Regulations 2014 (as amended). Members contribute on a °pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate Is set by the Secretary of State following scheme valuations undertaken by the Government Actuarfs Department. The most recent actuarial valuation of the TPS was 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 I 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 wlth the benefits set out in the scheme regulation5 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 ruling in the 'McCloud/Sargeant case,. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions includlng the Teachers, Pensions.

THE GOVERNING BODY OF RUGBY $cH￿l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED30JUNE 2021 18. PENSION SCHEMES (continued) On 27 June 2019 the Supreme Court denied the government permtssion to appeal the Court of Appears judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has 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 Ortober 2020. The TPS is subjert to a cost cap mechanism which was put in place to protect taxpayers against unforeseen change5 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 cost cap mechanism following the Court of Appeal's wling in the McCloud/Sargeant case and until there is certainty about the value of pension5 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 valuations. 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. Unlil the consultation and the cost cap mechanism review a￿ completed it 15 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. {b) Rugby School Penslon and life Assuran￿ Stheme for Non-Teachlng Staff11973) Composition of the Scheme The School operates a defined benefit pension scheme. the Rugby School Pension and Life Assurance Scheme for Non-Teaching Stsff {1973}. This is an approved funded pension scheme. The assets of the Scheme are held separately from the assets of the School in trustee administered funds. The Scheme closed to future accrual on S April 2￿￿. Contributions to the Schenie are assessed in accordance with the advice of a qualified actuary. Artuarial valuation A full actuarial valuation was carried out at 5 Aprfl 2018. These figures were rolled-forward to 6 April 2021, making adjustments to reflect benefits paid out of the Scheme and for differences between the assumptions used at 5 April 2018 and those at 6 April 2021. The valuation on 5 April 2018 showed scheme surplus. and as a result, the contributions from the School ceased after October 2015. The next tri-annual valuation date is set to be as of S April 2021 which will be completed for the 2021- 22 accounts.

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED30JUNE 2021 18. PENSION SCHEMES (continued) The prlncipal actuarial assumptions at the balance sheet date were: 2021 n/a 2020 n/a 5.00% 1.70% 2.90% 2.90% 1.70% Rate of increase in salaries Rate of increase in pensions payment Discount rate Inflation assumption Statutory rate of increase of pensions in deferment Expected return on Scheme assets Assumes life expectancy on retirement at age 60: Retiring today- males Retiring today- females Retiring in 15 years - males Retiring in 15 years- females 3.39% 3.39% 1.70% 26.4 29.0 27.5 30.2 25.9 28.0 27.1 29.3 The amounts recognised in the balance sheet are as follows: Market Value 2021 Marketvalue 2020 Fair value of Scheme 355ets Present value of funded obligations Deficit in the scheme 7,057 (8.409) (la52) 6,337 18.886) 12.5491 Change in the present value of the defined benefit obligation are as follows: 2021 2020 £000 8,285 197 {189} 593 8,886 Defined benefit obligation at l July Interest cost Benefits paid Actuarial losses/lgains) Defined benefit obligation at 30 June 149 (210) {416) 45

THE GOVERNING BODY OF RUG8Y SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 I& PENSION SCHEMES Icontinued) Change in the present value of the scheme assets are as follows: 2021 2020 Fair value of scheme assets at l July Employer Contributions Benefit payments Expected return on scheme assets Actuarial gains I (losses) Falr value of scheme assets at 30 June 6.337 6,730 {210) 106 824 7.057 11891 159 {363) 6.337 Analysls of the amounts charged wlthln the Ststement of Hnandal Actlvltles are as follows: 2021 2020 £000 (1971 159 Interest on pension scheme liabilities Expected retum on pension scheme assets Total amount charged to the Statement of Financial Act•vities 1149) 106 (43} (381 Analysis of actuarlal galns and losse5: 2021 2020 Actual return less expected return on scheme assets Experience gains and losses arising on the scheme liabilities Changes to assumption underlying the present value of the scheme liabilities Actuarial loss 823 13631 33 16261 1.240 {9561 The major calegories of Scheme assets as a percentsge of total Scheme assets are as follows: 2021 2020 Equities Bonds Gllts Property Other Cash 30 22 19 23 io 33 30 20 Actual retum on the Scheme assets in the period 929 12041 46

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 18. PENSION SCHEMES (continued) Future experted rates of retum The expected rates of return to apFly from the valuation date forward are shown net of a 0.35% deduction to allow for investment management fees. Tr￿ assumptions have been derNed as follows: the retum on bonds is set to be equal to the discount rate. less 0.35% the ￿t retum on gilts 15 set equal to the yield on 15-year fixed interest gffts. less 0.35%, the net return on equities and Fyoperty is set to be 3% above retum on 1S-year fixed Interest on gilts, less 0.35%: the retum on cash is tsken to be equal to the retum on I5-￿ar fixed interest gilts. less 0.35%, the ￿turn on other assets such as commodities and infrastructure has been set to be 2.8% above the IS- yearfixed interest gilt yield. less 0.35%. The School does not expect to contribute to the defined benefit pension scheme during 202V22. History of experience gains and losses: 2021 2020 2019 2018 2017 £0￿ £(KK) £(XX) £(KJO £000 8.886 8,285 8.037 7.920 7.057 6,337 6,730 6,987 7,003 {1.3S2) (2,549) {1.5551 {1.0501 19171 Present value of Scheme liabilities Fair value of Scheme assets Deficit Experience gains /(losses) on the liabilities Experience gainslllossesl on scheme assets Actuarial gain/(10s51 33 13631 123) 19 (37) {71) li 538 823 1.240 (9561 14781 {1081 493 (c) Rugby School Group Stskeholder Pension Stheme for Non-Teachlng Stsff From l October 1997 to 30 September 2(M)I, Rugby School operated a defined contribution pension scheme for certain non-teaching staff. The pension cost charge represented contributions payable by the School to the fund: these contributions matched those of the employees up to a maximum of 5%. With effect from l October 2(KYI. the scheme was replaced by the Rugby School Group Stakeholder Pension Scheme. The School contributes double the employee contribution5 UP to a maximum of 12% of pensionable pay. Employer contributions totalling £769,(iK) {2020: £496.0001 were paid in respect of this pension scheme for the year. This increase was in part due to the addition of Bilton Grange staff for the full year and also reflects changes due to the implementation of a salary sacrifice scheme during the course of 2020-21. At the period-end £87,(KM) was payable in respect of employer and employee contributions to this scheme. The assets of both schemes are held Separately from the School in independently administered funds. (d) Bllton Grange Stakeholder Penslon Scheme for Non-Teachln8 Staff From 6 January 2020. the School has operated a defined contribution pension scheme for certain non- teaching staff at Bilton Grange and those teaching staff who have opted into this pension scheme rather than being in the TPS. The pension cost charge represented contributions payable by the SclK)ol to the fund: these contributions matched those of the employees up to a maximum of 5%. 47

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANaAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 This scheme was ended January 2021 and the employees were transferred to the Rugby School Group Stakeholder Pension Scheme for Non-Teaching Staff. Employer contributions totalling £22,00012020: £21,IJNJI were paid in respect of this pension scheme for the year. At the period-end nil (2020: £7,(Wl was payable in respert of employer and employee contributions to this scheme. The a55ets of all schemes are held separately from the School in independently administered funds. 19. ANALYSIS OF NEf ASSETS (a) Current year analysls of net assets betvfftn fund5: The net assets are held for the various funds and advance fees as follows: Endowed Unrestrlrted Funds Funds Advance Fees 2021 Total £000 Funds Parent Charlty Fixed Assets Investments Net Current Assetsl ILiabilities) Long Term LIa1￿lItieS 56.115 13.650 56,115 150,203 120.633 14.424 1.496 543 (964) 5,275 14,5051 70,068 14621 70 {4,967) 206,626 121521 14,967 Consolidated Fixed Assets Investments Net Current Asset5l(￿ab1lltieS) Long Term Liabilities 56.115 13.650 56,115 171,787 132.505 24.136 1.496 304 589 {964) 4,729 14.505} 70,060 14621 70 14,967) 227,664 132,8(19 24.n5 (b) Prlor year analysls of net assets between funds The net assets are held for the various funds and advance fees as follows: Endowed Restricted Unrestricted Funds Funds Funds Advance Fees 2020 Total Parent Charfty Fixed Assets Investments Net Current Assetsl (Liabilitiesl Long Terni Liabilities 56,399 11,209 56.399 139.391 114,529 12,173 1.480 1.179 997 {863) (562) 55 4,817 (5.3871 65.724 (5,949) 194,6S7 115.708 13.170 Consolldated Fixed Assets Investments Net Current Assets/lLiabilities) Long Term Liabilities 56,399 11.209 56.399 156,879 123.870 20.319 743 1,073 3,504 1863) 4.454 {5.387) 65,724 {5621 55 (5,949) 211,783 124.612 21392

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 20. ENDOWED FUNDS {a) Current year movement In endowed funds: Balance Incoming Amounts at 30June funds expended 2020 Total Investment Balance return to gainsl at30 income 110ssesl June 2021 £000 £000 Parent tharlty London Estates: Property London Estates: Equity Lewis Benefaction fund Bilton Grange 102.631 5.333 3,590 1.070 1.668 20 6.348 106,221 5,864 9,274 162 121,521 15991 138 115.708 (599) Conwlldated Arnold FoundatKJn Awards 2.196 8.544 11,288 132 124.612 252 {5991 {b) Prbor year movement in endowed fund5: Balance Incoming Amounts at 30 June funds expended 2019 Total Investment Balance retum to gains1 at30 income 110ssesl Junt 2020 Parent Charlty london Estates: Property London Estates.. Equity Lewis Benefaction fund Bilton Grange 111.668 5.099 6.760 19,037) 162 102,631 5,333 7,606 138 72 152 224 {21 {2) 112) 18,0411 123,527 115,708 Consolidated Arnold Foundation Awards ioi 325 497 17.544) 131,833 124.612 Total return to income was £80,(K)O for 2019-2020 which was reversed by way of an oftsetting transfer. London Estates The London Estate consists princlpally of property in London bequeathed by the School's founder, Lawrence Sheriff. This permanent endowment yields commercial and residential rental income (see restricted fvndsl. Endowed funds also include equity investments (see Total Return note 2(kl. In the year there was an application of total return to income of £80.(KKI {see detail in Total Return note 20c). Lewis Benefaction Fund The Lewis Benefaction Fund is an expendable endowment capitsl fund which generates income for the provision of scholarships and bursaries. The income from the fund Is fully utilised for this purpose (see restricted funds) and the capital has not been expended. Amold Foundation Awards The Arnold Foundation endowed funds includes £50 of permanent funds and the balance relates to expendable endowment funds which generate income for the financing of bursary awards to Rugby School. This fund is held by the Ar￿Id Foundation for RugbySchool. The income from the fund is utilised for this purpose (see restricted funds). 49

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANaAL STATEMENTS FOR THEYEAR ENDED 30JUNE 2021 {c) Statement of Total Return The School adopted a Total Retum policy for its London Estate Endowed Non Property Investment Funds only. This allows investment managers greater flexibility in managing funds within the agreed risk parameters. Unapplied total returns are the total retums on the investments (capital or income in nature), less monies paid out of the Endowed Funds. The preserved value is protected with an annual CPI uplift and is based on a valuation date of 31 July The Unapplied Total Retum movements are: Preserved Value Unapplied Value Total Brought forward". Preserved Value Unapplied Total Return Total 4.204 4,204 1.049 5,253 1.049 1,049 4,204 Movement in rewrting period: Investment return: dividend/income Investment return- gains/losses 60 1,070 1,070 Unapplied total return allocated to income Unapplied total return allocated to capitsl Grant to Lawrence Sheriff School 14791 11581 {120) {4791 158 (1201 Net movement in reporting period: 158 373 531 Carried Forward: Preserved Value Unapplied Tolal Retum Total 4.362 4,362 1.422 5,784 1,422 1.422 4,362

THE GOVERNING BODY OF RUGBY SCHCJ)L NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 21. RESTRicfED FUNDS (a) Current year movement In restrlcted funds: 8alance Incomin8 Amounts Transfer at30 funds expended June 2020 Total Investment Return tlf 8ains applied to income Balance June 2021 £000 Parent Charlty Special Funds.. Common Investment Fund Lewis Benefaction Fund London Estste School 10.757 187 1855} 1771 14.9971 2.470 12,559 1.713 4.338 55 4,657 599 1.653 75S 14,967 13.170 15.9291 599 2,470 Consolidated W31 Memorial General Charitable Twst Arnold Foundation for Rugby School 1.768 23 56 1581 1561 407 2,140 6.454 1.058 11.4461 1,552 7,618 21.392 5.794 (7.4891 599 4,429 24,725 {b) Prior year movement in restrkted funds: Balance Incoming Amounts atlju funds expended 2019 Transfer Total Investment Return Vf gains applied to income Balance at30 June 2020 £000 £wo £(rf)o Parent Charlty Special Funds.. Cornmon Investment Fund Lewis Benefa¢tlon Fund London Estate Sthool 10.373 182 86 {231 1861 14.9711 225 10,757 2.210 505 15941 195 13991 1,713 700 13,170 5,256 15.0801 225 Consolldated War Memorial General Charitable TrLbSt Arnold Foundation for Rugby School 1.745 26 196 1631 60 1.768 11961 250 4.332 749 11,4161 16.5591 11.9441 2.539 6A54 19.165 6.228 535 21J92 Common Investment Fund The Common Investment Fund consists of numerous funds, the income and capital being restricted for specific purposes. With the approwal of the Charity Commission, there is a pooling system under which investments belonging to its restricted fund are pooled. The majority of the funds are restricted for the provision of scholarships, bursaries and prizes. Lewi5 Benefaction Fund The income from the endowed fund is fully utilised for the provision of scholarships and bursaries. 51

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 21. RESTRicfED FUNDS (continued) London Estotes The London Estate endowment yields commercial and restdential rental income and, after accounting for the costs of its maintenance and administration. one fifth of the remaining surplus (plus one fifth of the income from certain non-property investments) is paid to Lawrence Sheriff School, a neighbouring secondary school originally established by the Governing Body of Rugby School and now operating In the state Sector. Of the four frfths which remain. the primary use is to fund foundations and scholarships. Any remaining balance is unrestricted in use. but in practice is applied to finance capital projects which are of long-term benefit or accumulated for the same uses in future years. Included within the London Estate Fur)d is a Reserve Fund for repairs. rehabilitation and reconstrurtion: 2021 2020 As at l July Transfer fromlto net income resources As at 30Jtsne 1.350 1,775 14251 1.350 1.350 In accordance with an Order made by the M¢nister of Education on 15 January 1963, the Governing Body may transfer fun(ts into a Reserve Fund for the reconstruction and development of the real property of the Foundation at Holborn {the London Estate). No funds were transferred out of restricted funds in the year {2020: £514.(￿)) which represents fulfilment of restrirted capital projects. War Memorial Fund The War Memorial Fund makes awards to help the children of Rugbeians. who are in need of financial assistance. to attend or to remain at Rugby School. The bursaries are assessed and awarded by Rugby School with funding bein8 granted by the War Memorial Fund. General Charitable Trust The Trust receives income from covenants and legacies which were established prior to the existence of the Arnold Foundation. The income is gifted to the School. usually to assist with specific capital projects. In the year there was a transfer of £56,IXrfJ {2020= £196,0￿). Arnold Foundation for Rugby School The Arnold Foundation fund is monies given to provide funds and fvture income for the provision of bursary award5 to Rugby School. Expended bythe Arnold Foundation in the year to 30June 2021 in accordance with the wishes of the donors". Bursary awards 1.018 Unexpended balance of gifts and legacies as at 30 June 2021- Restricted funds to be utilised for Bursary Awards Unrestricted funds in Arnold Foundation (but treated as RestrTCted for the Group) to be utilised for bursary Awards 180 8,620 Fundraising costs in the year of £373.IXKJ12020: £302,(￿) were met by Rugby School. 52

THE GOVERNING BODY OF RUGBY SCHOOL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 22. UNRESTRicfED FUNDS (a) Current year movement In unrestrlcted funds: Balance Incoming 30June funds 2020 £￿0 Amounts Transfers expended Investment 8ainsl 11055esl Balance 30June 2021 Parent Charlty Designated funds: Fixed assets fund New boarding house fund Building maintenance fund RSE Fund Bilton Grange designated Bloxam Fund 56,399 12841 56,115 334 {511 283 4,747 10.197 9)7 1.507 5,654 12.292 General unrestricted funds: School operation5 Pension reserve {4,037} 12,549) 65.779 34.313 134.1011 1431 (34,1951 12} 13.5431 1.240 11,3521 3.652 70,137 34.901 Consolldated Rugby School Enterprises Rugby School International Rugby School Projects 459 499 14661 14991 65.779 35￿59 135.160) 3,652 70,130 (bl Prior year movement In unrestrlcted funds: Balance Incoming l July funds 2019 Amounts expended Transfers Investment Eainsl {lossesl £OCK¢ lan 30June 2020 £￿0 Parent Charity Designated fund5: Fixed assets fund New boarding house fund Building maintenance fund RSE Fund Bilton Grange designated Bloxam Fund 49.287 4.753 (3,fA)21 5.962 56,399 650 737 1335> 1478} 131 16) 18 333 689 4,747 10.197 430 4,883 59 12,2371 11921 11311 12,569 General unrestricted funds: School operations Pension reserve 13.157) 11.5551 58,531 29,267 {25.1451 {381 129,607} {5,0361 33 14,038) 19561 (2,5491 11.2461 65,779 39.336 11.235) Consolidated Rugby School Enterprises Rugby School International Rugby School Projects 1,458 836 (1.0281 14811 14301 1355} {4) 12,024) 58,531 41.634 131,116) {1.246) 65.779 53

THE GOVERNING BODY OF RUGBY SCH¢J)L NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 22. UNRESTRicfED FUNDS (continued) ixed asset fvnd The fund carried forward at the year*nd represents the net book amounts invested in tangible fixed a55ets. A transfer of £284.000 was made out of the fund12020: transfer into the fund £2,312,OWI whlch represents the fixed asset additions, disposals and depreciation for the year. Bulldlng malntenance fund Following an extensive survey of School properties. the building maintenance fund was established for maintenance priorities of the School's buildings over a five-year period. In the year £51,(W12020: an additional £18.0001 was expended from the fund. RSE fund The funds gifted by Rugby School Enterprises Limited are to be utilised on projects whlch would benefit a significant proportion of the School's community and may be used for bursaries for exceptional students. No transfer was made of RSE surplus for the year (2020: £430.INXI}. Bllton Grange fund With the charitable merger of Bilton Grange into the School. the non-endowment investments previously held in the name of Bilton Grange Trust Limited were des18nated by the Governors to be used for capital investment into Bitton Grange and its facilities. Bloxam fund The funds in the Bloxam Fund are a portion of the proceeds of sales in 2019 and 2020 of long-held donated art works and rare books have been designated by the Governors to be utilised for bursary funding and for projects to benefit a significant proportion of the School's current and future community. School operations General unrestricted funds are reta•ned to provide working capital.

THE GOVERNING BODYOF RUG8YSCH()JL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30JUNE 2021 23. FINANCIAL INSTRUMEpirs 2021 2020 Financial Assets measured at fair value through profit or loss including investment assets 62A52 50,894 24. FINANCE AND LEASE COMMITMEKrs The School has the followin8 minlmum lease payments. due in reLat￿n to non-cancellable lease agreements: Parent Charlty 2021 2020 Consolidated 2021 2020 Payable within l year Payable between 2 to 5 years Payable after more than 5 years 30 30 38 38 During the year the School put in place an annually renewable, unsecured. on-demand, £5,000,000 overdraft facility with National Westminster Bank Plc. The facility has remained undrawn during the year ending 30 June 2021. The School also retired 6% debenture k)ans and 5% debenture bans totalling £11,020 which were transferred to Rugby School under the Bilton Grange merger and paid off the interest due under those debentures. On 30 June 2021. the School committed to enter into a 40-year private issue for £35 million placed wlth a single investor that closed and funded on I September 2021, due for repayment on I September 2061. Interest at 2.32% per annum is computed on a 301360-day basis and payable semi-annually on l March and I September. 25. RELATED PARTY TRANSACTIONS The children of staff and Governors may attend the khool, subject to the normal entry procedures. In such cases, Governors pay School fees at the standard rates. but staff members ￿ceIve a discount. During the year, the children of Mrs H Jackson, a governor. received Head M35terfs DiscretlonaryAwards totalling £6.440. 26. CONTINGENT LtABILmES AND ASSErs The School is in an ongoing dispute in relation to a former member of staff which is expected to progress to a tribunal. No provision has been made for a liability at 30 June 2021 as there remains considerable uncertainty as to the potential outcome of this claim in relation to l)oth value and timing. 55