Charity number: 528770 LAWRENCE SHERIFF SCHOOL FOUNDATION TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023
LAWRENCE SHERIFF SCHOOL FOUNDATION CONTENTS Page Reference and administrative details of the Charity. its Trustees and advlsers Trustees. report Independent auditors. report on the financial statements statement of financial activltles 10 Balance sheet Statement of Cash flows 12 Notes to the financial statements 13-24
LAWRENCE SHERIFF SCHOOL FOUNDATION REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023 Trustees Stuart Baran Dennis Barnell Matthew Canale-Parola Janel Eastwood Stuart Esworthy (appointed 1 September 20221 Simon Lau Thomas Legge Clinton Dracketl lappoinled 8 February 20231 Carol Moor Teresa Mpofu Justin Muslon Kalonga Musukuma Kulasekar Godavathi Krishnama (appointed 8 February 20231 Rebecca Rees Paula Whitfield Charity reglstered number 528770 Principal Address Lawrence Sheriff School Clifton Road Rugby Watwickshire CV21 3AG Clerk to Trustees Gillian Beardshaw Auditors Crowe U.K. LLP Black Country House Rounds Green Road Oldbury Wesl Midlands B69 2DG Bankers Barclays Bank PLC 11 North Street Rugby Warwickshire CV212AN Solicitors Browne Jacobson LLP owbray House Castle Meadow Road Nollingham NG2 1BJ Page 1
LAWRENCE SHERIFF SCHOOL FOUNDATION TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2023 The Trustees present their annual report together with the audited financial slalemenls of the Lawrence Sheriff School Foundation for the year 1 September 2022 10 31 August 2023. The Trustees have adopted the provisions ol the Slalemenl of Recommended Practi ISORPI "Accounting and Reporting by Charities IFRS 1021 in preparing the annual report and f1nancial slalements of the Charity. Objectives and activities Policies and oblectives The objective of the Charity is for the public benefit, to advance the education of students through the provision of a sile for a school known as Lawrence Sheriff School. In setting objectives and planning for activities, the Trustees have given due consideration lo general guidance published by the Charity Commission relating lo public benefit, including the guidance 'Public benefit.. running a charity IPB21'. The Charity strives lo ensure that the provision of facilities is up to dale, thus enabling the school lo provide the appropriate curriculum and education of students from Rugby and ils environs lo endeavour to maximise the students. potential. The Trustees are alert to changes in government policy and seek lo develop the facilities lo accommodate such changes. Achievements and performance a. Main achievements of the Charity 2022-23 has been another impressive year for external exam success. There has been a national return to pre- pandemic standards yel the GCSE progress 8 figure remains higher than 2017, 2018 and 2019. Although there is no value added data for post 16 the attginmenl figure remain higher than 2019. There have been changes in the Senior Leadership Team with the retirement of Dianne Halestrap in August 2022. The overall structure has remained the same bul there has been a redistribution of roles and responsibilities. Tony Bedgood has moved from Assistant headlAssislanl Head of Sixth form to Assistant HeadlHead of Sixth Form. Luke Brown has been appointed to the SLT with the responsibility for Personal Development. The Academy has continued lo grow its Teaching School Hub remit with the added responsibility for Appropriate Body work from September 2023. This was planned for throughout the academic year 2022-23 with the appointment of a Deputy Director of the TSH and an increase in the number of admin hours. A major success lor the school has been the designation as a Co-lead Iwilh Sidney Slringer Academy in Covenlryl for one of only fifteen national MFL Hubs working with the National Consortium lor Language Education. The application process ran from November 2022 until nolilication in July 2023. The designation runs for three years initially from September 2023. The school continues with ils expansion project and following the compSelion ol the Science building in Easter 2022. The old science labs were refurbished throughout the academic year 2022-23. This has allowed for a refurbished History. Politics and Classical Civilisalion block, refurbished Art block and an additional MFL room which doubles up as a small conference room. The Engineering department now has three workshops which has allowed for growth of the department al both Level 2 and Level 3. To allow lor this expansion staffing levels have increased and the Academy has been fortunate lo be able lo appoint specialist teachers lor all roles. This will allow the Academy lo continue lo meet ils objectives and ensure that the quality of education and standards continue to be maintained. Page 2
LAWRENCE SHERIFF SCHOOL FOUNDATION TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Achievements and performance Icontinuedl Another significant success for the school has been the opening of The Griffin Primary School in September 2023. Lawren Sheriff School is sponsoring the Primary School. Alison Hine was appoinled as Headleacher designate in February 2023 and worked closely wilh Teresa Mpofu lo ensure the successful opening with a full PAN 0130 in the reception class. The Little Griffin Nursey also opened in September 2023 and this was recognised as being a significant achievement by the LA. Lawrence Sheriff School continues lo work with Rugby School lo ensure the legal structures are in place to allow Lawrence Sheriff School lo establish a Mulli Academy Trust. b. Investment policy and performance The Charity's main source of income is from Rugby School which has specific investments held in trusts for the charity. The Income from these investments is paid in quarterly inslalments lo the foundation with a balancing final payment made with the final inslalmenl. Flnancial Review a. Going concern After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Foundation has adequate resources to continue in operation81 existence for the foreseeable future. The Income from Rugby School is stable and for this reason il continues lo adopt the going concern basis in preparing the financial slatemenls. Further details regarding the adoption of the going conrn basis can be found in the Statement of Accounting Policies. b. Reserves policy As al 31 August 2023 the value of unrestricted funds was £841,19412022 - £692,184). The Trustees believe that for the coming financial year the balance on this fund is sufficient for anlicipaled essential expenditure lo rnainlain and insure the land and buildings, service the bank loans and provide other support lo the Academy Trust to enable the school to continue lo provide a high standard of education. The Trustees reserve policy is lo maintain unrestricted reserves ol al least £600,000. As at 31 August 2023 the value of restricted and endowment funds was £8,283,40712022 - £8.400,0461. The goveming body of the Academy Trust continue lo invest prudently in the development of the school. An amount of £113.617 12022 £139,700) has been transferred from the General Fund to the Permanent Endowment Fund this year lo cover the loan repayments during the year. The balance on the Peimanenl Endowment Fund represents the cost of valuation of existing buildings and those under construction and refurbishment costs less than oulslanding balanTrs on the loans after depreciation. c. Fundraising Fundraising activities of the Foundation are restricted lo school based activities such as summer fetes and dress down days. and are not bound by any voluntary scheme. These activities do not involve the use of professional fund-raisers or commercial participants. Page 3
LAWRENCE SHERIFF SCHOOL FOUNDATION TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Structure, governance and management a, Constitution Lawrence Sheriff School Foundation is a registered charity, number 528770, and is conslituled under a Memorandum of Association. All Trustees of Lawrence Sheriff School Academy Trust act as Trustees of the charity. Thus the charity is governed by Trustees who are all members of the Governing Body of Lawrence Sheriff School Academy Trust. The Trustees are responsible for running the charity and this is distinct from their responsibility as School Trustees lo oversee the running of the school itself. The Academy Trust Is an exempt charity and governed by its own Memorandum and Articles of Association. The Foundation owns the land and buildings from which the Academy Trust operates and is governed by a Charity Commission Scheme dated 14th October 2010. An amendment was made lo update the charitable objectives as of 24th September 2020. New Trustees receive a copy of the Charity Scheme and founding Act. They are invited to attend a training session covering governance and strategic vision. They receive copies of the accounts and charity and Trustees, newsletters. They are also invited lo lake part in internal and external training as appropriate. The Trustees regularly review the risks faced by the charity, and implement systems for mitigating of any risks that are identified. Plans for future periods The charity will continue lo support the provision of facilities and servi$ in keeping with the nature of the school. Having spent significant sums on the provision of new facilities over recent years, our focus over the oming years will be on the expansion project for future periods. The Trustees will continue lo support members of staff through allowances for higher education courses and. where appropriate, students will benefit from Governor awards. Page 4
LAWRENCE SHERIFF SCHOOL FOUNDATION TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2023 Statement of Trustees. responslbilities The Trustees are responsible lor preparing the Trustees, report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally A¢pIed Accounting Practi¢el. The law applicable to charities in England & Wales requires the Trustees lo prepare financial statements for each financial which give a true and fair view ol the slate of affairs of the Charity and of ils incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial slalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly., obseNe the methods and principles of the Charities SORP {FRS 102)., make judgments and accounting eslimales that are reasonable and prudent,. slate whether applicable UK Accounting Standards (FRS 1021 have been followed, subject to any material departures disclosed and explained in the financial stalemenls., prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy al any lime the financial position of the Charily and enable them lo ensure that the financial statements oomply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Memorandum of Association. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of information to auditors Each of the persons who are Trustees al the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant 8udil information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order lo be aware of any relevant audit information and lo establish that the charity's auditors are aware of that information. Auditors The auditors. Crowe U.K. LLP. have indicated their willingness lo continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the members of the board of Trustees and signed on their behalf by.. atthew Canale-Parola Chair of Trustees Teresa Mpofu Trustee and Headleacher Dale. ill li12n23 Page 5
LAWRENCE SHERIFF SCHOOL FOUNDATION INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LAWRENCE SHERIFF SCHOOL FOUNDATION Opinlon We have audited the financial slalements of Lawrence Sheriff School Foundation Ithe 'charily'l for the year ended 31 August 2023 which comprise the Statement of financial aclivilies, the Balance sheet. the Slalemenl of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Finanryal Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republi of Ireland IFRS 1021 in preference lo the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred lo in the exlanl regulations bul has been withdrawn. This has been done in order for the accounts lo provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financia5 stalernents.. give a true 2nd fair view of the stale of the charity's affaiTS as al 31 August 2023 and of ils incoming resources and application of resources for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities lor the audit of the financial slalemenls section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit evidence we h8ve obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial slalemenls, we have concluded th81 the Trustees, use of the going conrn basis of accounting in the preparation of the financial statements is appropriate, Based on the work we have performed, we have not identified any material UnrtaiNlieS relating lo events or conditions that. individually or collectively, may cast significsnl doubl on the charity's ability lo continue as a going concern for a period ol at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 6
LAWRENCE SHERIFF SCHOOL FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LAWRENCE SHERIFF SCHOOL FOUNDATION ICONTINUEDI Other Information The other information comprises the information included in the Annual report other than the financial statements and our Auditors, report thereon, The Trustees are responsible lor the other information contained within the Annual report. Our opinion on the financial slalements does not cover the other information and, except lo the exlenl otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, Consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained In the course ol the audit, OT otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are required to determine whether this gives rise lo a material misslalemenl in the fi'nancial slalemenls themselves. If, based on the work we have perfomied, we conclude that there is a material misslatemenl of this other information. we are required to report that fact. We have nothing lo report in this regard. Matters on whlch we are required to report by exception We have nothing lo report in respect ol the following mallers where the Charities (Accounts and Reports) Regulations 2008 requires us lo report lo you if, in our opinion.. the information given in the Trustees, report is inconsislenl in any material respect with the financial slatemenls, or sufficient accounting records have not been kept., or the financi21 statements are not in agreement with the accounting records and returns,. or we have not reiVed all the infomialion and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, responsibilities slalemenl, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of finanal slalemenls that are free from material misstatement, whether due lo fraud or error. In preparing the financial slalements, the Trustees are responsible for assessing the charity's abi15ty lo continue as a going COnrn, disclosing, as applicable, mallers related lo going concern and using the going concern basis of account1ng unless the Trustees either intend lo liquidate the charity or lo cease operations. or have no realisti¢ allernalive bul lo do so. Page 7
LAWRENCE SHERIFF SCHOOL FOUNDATION INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LAWRENCE SHERIFF SCHOOL FOUNDATION ICONTINUED) Auditors. responsibilities for the audlt of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due lo fraud or error, and lo issue an Auditors, report that includes our opinion. Reasonable assuran is 8 high level of assurance, but is not 2 guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a materia1 misslatemenl when il exists. Misslatemenls can arise from fraud or error and are considered m8lerial if, individually or in the aggregate, they Could reasonably be expected to Influen the economic decisions ol users taken on the basis of these financial slalemenls. Irregularities. including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our reswnsibilities, outlined above, lo delecl material misslalements in respect of irregularities, including fmud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. We obtained an understanding of the legal and regulatory frameworks within which the charitable foundation operates. focusing on those laws and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were Ihe Charities Act 2011 togethèr with the Charities SORP IFRS 1021. We assessed the required Compliance with these laws and regulations as part of our audit procedures on the related financial statement Items. In addition, we considered provisions of other laws and regulations that do not have a direct eflecl on the financial slalemenls bul compliance wlh which mi9hl be fundamental lo the charitable foundation's ability lo operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable foundation for fraud. The key laws and regulations we considered in this context were General Data Protection Regulation, health and safely legislation and employee legislation. Auditing standards limit the required audit procedures lo identify non-complian with these laws and regulations to enquire of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk ol material impact on the financial statements from irregularities. including fraud. lo be within the liming and completeness of certain income streams and the override of controls by management. Our audit procedures to respond lo these risks included enquiries of management and the Board about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting eslimales for biases. reviewing regulatory correspondents, and reading minutes of meetings of those charged wilh governance. Owing lo the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some material misslalemenls in the finanal slalemenls, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial slatemenls, the less likely the inherently limited procedures required by auditing stsndards would identify it. In addition, as with any audit, there remained a higher risk ol non-deleclion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override ol internal controls. We are not responsible for preventing noncompliance and cannot be expected lo detect non-compliance with all laws and regulations. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website al." www.frc.or .uklauditorsres nsibililies. This description forms part of our Auditors, report. Page 8
LAWRENCE SHERIFF SCHOOL FOUNDATION INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LAWRENCE SHERIFF SCHOOL FOUNDATION (CONTINUED} Use of our report This reFK)rt is made solely to the charity's trustees. as a body, in accordance with Part 4 of the Charities IAcwunls and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's Iruslees those mallers we are required lo stale lo them in an Auditors, report and for no other purpose. To the fullest exlenl permitted by law, we do not accept or assume responsibility lo anyone other than the charity and ils Iruslees, as a body, for our audit work, for this report, or for the opinions we have formed. Crowe U.K. LLP Slalulory Auditor Black Country House Rounds Green Road Oldbury Wesl Midlands B69 2DG Dale.. 19 December 2023 Crowe U.K. LLP are eligible lo act as auditors in terms of section 1212 of the Companies Act 2006. Page 9
LAWRENCE SHERIFF SCHOOL FOUNDATION STATEMENT OF FINANCIAL ACTIVITSES FOR THE YEAR ENDED 31 AUGUST 2023 Unrestricted funds 2023 Restricted Endowment funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income and endowments from: Donations and legacies Investments 718.909 3,139 718,909 3.139 666,737 354 Total income and endowments 722,048 722,048 667,091 Expenditure on: Charitsble activities 467,410 222.267 689,677 694,454 Total expenditure 467,410 222,267 689,677 694,454 Net incomellexpenditurel before net gains on Investments Nel gainl{lossl on investments 254,638 {222,267} 32.371 (27,363) 3,352 Net incomellexpenditurel Transfers between funds 254,638 1222.2671 32.371 (24,011) 11 1105.628} 17,9891 113,617 Net movement in funds 149,010 17,9891 1108.6501 32,371 (24,011) Reconclliation of funds: Total funds brought lonward Nel movement in funds 692,184 149,010 7,989 {7,9891 8.392,057 108.6501 9,092.230 32,371 9, 116,247 (24,011) Total funds carrfed forward 841,194 ,283,407 9.124,601 9,092.230 The notes on pages 13 to 24 form part of these financial statements. Page 10
LAWRENCE SHERIFF SCHOOL FOUNDATION BALANCE SHEET AS AT 31 AUGUST 2023 2023 2022 Note Fixed assets Tangible assets 10,074,597 10.296,864 10,074.597 10,296.864 Current assets Debtors Cash al bank and in hand 204,743 655,222 291,738 510,614 859,965 802.352 Creditors.. amounts fallino due wlhin one year 1169,333) (226, 811) Net current assets 690.632 575,541 Total assets less current liabilities 10,765,229 10,872,405 Creditors.. amounts falling due after more than one year 10 11,640.6281 (1, 780. 175) Total net assets 9,124,601 9,092,230 Charity funds Endowment funds Reslricled funds Unrestricted funds 11 11 8,283,407 8,392,057 7,989 692, 184 841,194 Total funds 9,124.601 9,092,230 The financial slalemenls were approved and authorised for issue by the Trustees and signed on their behalf by.. Matthew Canale-Parola Chair of Trustees Teresa Mpofu Twslee and Headleacher Dale. Il IIL12023 IJ | Id25 The notes on pages fj3 10 24 form part of these fi'nancial slalemenls. Page11
LAWRENCE SHERIFF SCHOOL FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Note Cash flows from operatlng activities Nel cash provided by operating activities 13 370,813 218,009 Cash flows from investing activities Dividends, interests and rents from investments Proceeds from sale ol investments 3,139 354 18,857 Net cash provided by Investing actlvities 3,139 19,211 Cash flows from flnancing activities Repayments of borrowing Interest paid 1131,3601 197,9841 (139, 700) (90,888) Net cash used in financlng activities 1229,3441 1230,5881 Change in cash and cash equlvalents in the year Cash and cash equivalents al the beginning of the year 144.608 6,632 503,982 510,614 Cash and cash equivalents at the end of the year 14 655,222 510,614 The notes on pages 13 to 24 form part of these financial slalemenls Page 12
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 General information The Lawrence Sheriff School Foundation is a charity. The Charity number is 528770. The nature of the Charity'5 operations and principal activity is a public benefit lo advance the education of boys through the provision of a site for a school known as Lawrence Sheriff School. Accounting policies 2.1 Basis of preparation of financial statements The financial stslements have been prepared in accordance with the Charities SORP {FRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Charities Act 2011. The financial statements have been prepared lo give a 'lrue and fair, view and have departed from the Charities (Accounts and Reports) Regulations 2008 only lo the extent required lo provide a 'true and faiv view. This departure has involved following the Charities SORP IFRS 1021 published in October 2019 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Lawrence Sheriff School Foundation meets the definition of a public benefit enlily under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy. The Lawrence Sheriff School Foundation remains a separate enlily. The Lawrence Sheriff School Foundation is included in the accounts of the Academy TrLJSt by the method of branch accounting. The funds associated with the Foundation are shown within separate and clearly identifiable funds. This ensures that the legal position between the bNO entities is accurately reflected, whilst giving a true and fair view of the financial position of the Academy Trust. 2.2 Charity status The Lawrence Sheriff School Foundation is a charity. The Charity number is 528770. The nature of the Charity's operations and principal activity is a public benefit lo advance the education of boys through the provision of a site for 8 school known as Lawrence Sheriff School. 2.3 Going concern After making appropriate enquiries, the Trust Board has a reasonable expectation that the Academy Trust has adequate resources lo continue in operational existence for the foreseeable future and there afft no material uncertainties about the Trust's abilily lo continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial slalemenls. Page 13
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting policies Icontinuedl 2.4 Basis of accounting with the Lawrence Sheriff School Academy Trust As detailed in accounting policy 2.1, the two enlilies of the Lawrence Sheriff School Foundation and the Lawrence Sheriff School Academy Trust are under common control. However, the Lawrence Sheriff School Foundation remains a separate entity. The Lawrence Sheriff School Foundation is included in the accounts of the Academy Trust by the method ol branch accounting. The funds associated with the Foundation are shown within separale and clearly identifiable funds. This ensures that the legal position belween the enlilies is accurately reflected, whilst giving a true and fair view of the financial position of the Academy Trust. 2.5 Income All incoming reSoUrS are included in the Statement of Financial Position ISOFAI once the Charity has legal enlitlemenl to the income, il is probable that the income will be received and the amount of income receivable can be measufftd reliably. For legacies, enlillemenl is taken as when a distribution is reiVed from the estate. For donations lo be recognised, the charity will have been notified of the amounts and the selllemenl dale in writing. If there are any conditions allached lo the donation and this requires a level of performance before enlillemenl can be obtained then income is deferred until these conditions are fully met or the fullilment of those conditions is within the control of the charity and is probable th81 they will be fulfilled. The charity may receive government grants in respect of capital expenditure on the properties it owns. Income from such grants will be recognised at fair value when the charity has enlillemenl after any performance conditions have been mel. 11 is probably that the income will be received and the amount Can be measured reliably. If enlillement is not mel, then these amounts are deferred. The unresliicled fund includes the income from the Rugby School Eslale, which is payable to the Trustees of the Lawrence Sheriff School under the Rugby Lower School (Transfer) Act 1906. 11 is payable lo the Trustee of lawren Sheriff School and transferred lo the Trustees of Lawrence Sheriff School Foundation. However, lo ensure complete transparency as lo the amount of income, ils application for the sole benefit if Lawrence Sheriff School and lo be consistent with previous years il continues lo be disclosed as part of income of Lawrence Sheriff School Foundation. It is recognised on the accruals basis. Page 14
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting policies {continuedl 2.6 Expenditure Expenditure is recognised once there is a legal or constructive oblig81ion lo transfer economic benefit lo a third party, il is probable that a transfer of economic benefits will be required in selllemenl and the amount of the obligation can be measured reliably. Expenditure is classifi'ed by aclivily. The costs of each activity are made up of the lolal of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs allribulable lo a single activity are allocated directly lo that activity. Shared costs which contribute lo more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on 8 basis consislenl with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion ol the asset's use. Costs of charitable activities are costs incurred in the Foundation's charitable objects. This includes all expenditure funded by the Rugby Lower School (Transferl Act 1906 income which is included in the accounts. Some of the income is being used lo pay pital and interest on bank loans taken out to fund property improvements. Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for ils charitable purposes and includes costs of all fundraising activities events and non-charitable trading. 2.7 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity., this is normally upon nolificalion of the interest paid or payable by the bank. 2.8 Tangible fixed assets and depreciation T8ngible fixed assets are recognised al cost, nel of depreciation and any provision for impairment. After recognition, Ljnder the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurrèd to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is not charged on freehold land. Depreciation is provided al rates calculated to write off the cost of fixed assets, less their eslimaled residual value, over their expected useful lives, Depreciation is provided on the following ba5iS'. Freehold buildings 15-50years 2.9 Llabilities and provisions Liabilities are recognised when there is an obligation al the Balance sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the selllemenl can be estimated reliably. Li8bililies are recognised al the amount that the Charity anlicipales it will pay lo sellle the debt or the amount il has reeeived as advanced payments for the goods or services il musl provide. Provisions are measured al the best estimate of the amounts required to sellle the obligation. Where the effect of the lime value of Money is material, the provision is based on the pfftsenl value of those amounts, discounted al the pre-tax discount rale that rellecls the risks specific lo the liability. The unwinding of the discount is recognised within interest payable and similar charges. Page 15
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Accounting policies Icontinuedl 2.10 Financlal instruments Except for quoted investments, the charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their selllemenl value. 2.11 Fund accountlng Reslricled funds represent those resources which may be used towards the meeting of the charitable objectives of the Foundation al the discretion of the Trustees. Restricted funds Incorporate all ol the individual prize funds. By order of the Charity Commission all individual prize funds have been combined into one fund in the accounts. These are.. Lawrence Sheriff School Foundation Lawrence Sheriff School Prize Fund Lawrence Sheriff Scholarship Fund Lawrence Sheriff Leaving Exhibition Fund The permanent endowment fund represents the value of the property including additions less the oulslanding capital on loans used lo pay for additions lo the property. A transfer is made each year lo flecl the capital repayments made on the loans during the year. Income from donations and legacies Unrestricted funds 2023 Total funds 2023 Rugby Lower School donations 718,909 718,909 Unrestricled funds 2022 Total funds 2022 Rugby Lower School donations 666, 737 666, 737 Page 16
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Expenditure on charitable activities Unrestricted Endowment funds funds 2023 2023 Total funds 2023 Insurance 86,587 6,947 274,491 3.903 6,943 88,559 86,567 6,947 274,491 3,903 6,943 88,559 222.267 Rugby Bid Levy School budget allowance Prizes Professional fees Finance charges Depreciation 222,267 467,410 222,267 689,677 Unreslricled Endowmenl funds funds 2022 2022 Tol81 funds 2022 Insurance Rugby Bid Levy School budget allowance Prizes Professional fees Finance charges Depreciation 93,383 5,000 253,982 5,038 23,896 90, 888 93,383 5.000 253.982 5,038 23,896 90,888 222,267 222,267 472,187 222,267 694,454 Page 17
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Net incomellexpenditure) 2023 2022 Audil0rf5 remuneration - stalulory audit Depreciation of tangible fixed assets.. - owned by the Chatity 3.850 3,500 222.267 222,267 Trustees. remuneratlon and expenses During the year. no Trustees reiVed any remuneration or other benefits (2022- £NIL). During the year ended 31 August 2023, no Trustee expenses have been incurred (2022- £NIL). Page 18
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Tangible fixed assets Freehold property Cost or valuation At 1 September 2022 12,075.000 Al 31 August 2023 12,075,000 Depreciation At 1 September 2022 Charge for the year 1,778,136 222,267 At 31 August 2023 2,000,403 Net book value Al 31 August 2023 10,074.597 At 31 August 2022 10,296, 864 Included in land and buildings includes freehold land al v81ualion of £1,545,000 12022 - £1,545,000) which is not depreciated. Tangible fixed assets with a nel book value of £9,468,50012022 £9,672.0001 have been pledged as secuiity for liabilities of the charity. These assets have a reslricled tille. Prior lo the adoption of FRS102 the freehold property was included al the 1914 valuation of £23,345 with all subsequent additions being slated at cost. On transition to FRS10211 September 20fj41 the freehold property was revalued lo ils eslimaled fair value and this was taken to be deemed cost. Al transition dale, the IreehoSd land and buildings were subject lo independent, professional valuation which was undertaken by Towler Shaw Roberts Chartered Surveyors. The main school complex was valued on a Depreaaled Replament Cost Basis and the sports field was valued on an existing use basis. Page 19
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Debtors 2023 2022 Due withln one year Accrued Income from Rugby Lower School 204,743 297, 738 204.743 291,738 Credltors: Amounts falling due within one year 2023 2022 Bank loans Amounts owed to Lawrence Sheriff School Academy Trust Accruals and deferred income 132,819 321 36,193 124,632 321 101,858 169,333 226,811 10. Creditors: Amounts falling due after more than one year 2023 2022 Bank loans 1,640,628 1, 780, 175 Included within the above are amounts falling due as follows.. Between two and five years Bank loans 576,688 539,027 Over flve years Bank loans 1,063.940 7.241, 148 A term loan facility of £3m was taken out with Barclays Bank in 2009. The loan capital is repayable in monthly inslalmenls and is secured on the main school property at Clifton Road. £2m of the facility is al a fixed rale of 6.2557010 repayable by September 2033 and £1m of the facility is on a variable rale of 0.85570/0 over base repayable by March 2023. The term loan is secured on the land and buildings of the endowment fund. Page 20
LAiniRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 11. statement of funds statement of funds - current year Balance at 1 September 2022 Balance at 31 August 2023 Transfers inlout Income Expenditure Unrestricted funds General Funds- all funds 692,184 722,048 1467,4101 1105,6281 841,194 Endowment funds Endowment Funds- all funds 8,392,057 1222.2671 113,617 8.283,407 Restricted funds Prize fund 7,989 {7,9891 Total of funds 9.092,230 722,048 1689,6771 9,124,601 The specific purpose5 for which funds are to be applied are as follows.. Unrestricted funds are available for use al the discretion of the Trustees for the furtherance of the Charity's objecls. Reslricled funds represents a prize fund that is held for the provision of prizes, The Endowment fund represents freehold land and buildings that are pemianenlly endowed. They can be used for educational purposes al the discretion of the Trustees. There is also a mortgage attached lo the assets which has been shown within endowment funds. Pa9e 21
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 11. Statement of funds {continuedl Statement of funds - prior year Ba18nc8 al 7 September 2021 Balance al 31 Augusl 2022 Transfers in/oul Gains/ (Losses) Income Expenditure Unrestricted funds General Funds - all funds 633. 727 666.973 (472, 187) (139, 700) 3,371 692, 184 Endowment funds Endowment Funds - all funds 8,474,624 {222,267) 139, 100 8,392.057 Restrlcted funds Prize fund 7,890 118 (19) 7.989 Total of funds 9,116,241 667,091 (694.454) 3,352 9,092,230 12. Analysis of net assets between funds Analysis of net assets between funds-current year Unrestricted Endowment funds funds 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 10.074.597 10,074,597 859,965 1150,5621 1169,3331 {1,640,6281 11,640,628) 859,965 {18,7711 Total 841,194 8,283,407 9,124.601 Page 22
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 12. Analysis of net assets between funds Icontinuedl Analysis of net assets between funds - prior year Unreslricled funds 2022 Restricted Endowmenl funds funds 2022 2022 Tolal funds 2022 Tangible fixed assets CUrn1 assets Creditors due within one year Creditors due in more than one year 10,296,864 10,296,864 802,352 (124,632) (226,811) (7. 780, 175) (1,780, 175) 794,363 {102, 179) 7,989 Total 692, 184 7,989 8,392,057 9,092.230 13. Reconciliation of net movement In funds to net cash flow from operating activities 2023 2022 Net incomelexpenditure for the year las per Statement of Financial Acliviliesl 32,371 {24,011) Adjustments for: Depreciation charges Losses on investments Dividends, interests and rents from investments Decreasel{increasel in debtors Increaselldecreasel in creditors Interest payable 222,267 13,1391 222,267 (3,352) (354J (124,547J 57,718 90,888 86,995 156.2401 97,984 Net Cash provided by operating activities 380,238 218,009 14. Analysis of cash and cash equivalents 2023 2022 Cash in hand 655,222 510.614 Total cash and cash equivalents 655,222 51 0,614 Page 23
LAWRENCE SHERIFF SCHOOL FOUNDATION NOTES TO THE FINANCSAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 Analysis of changes In net debt At1 September 2022 Cash flows other non- cash At31 changes August 2023 Cash al bank and in hand Debt due within 1 year Debt due after 1 year 510,614 1124,6321 (1,780.1751 144.608 131,360 655,222 1132,8191 11,640,628) 1139,547) 139,547 {1,394,1931 275,968 {1.118,2251 16. Controlllng party The Charity is controlled by the Governing Body of Lawrence Sheriff School Academy Trust- all of whom are all of the Trustees of the Charity. During the year, the Lawren Sheriff School Foundation paid various recharges lolalling £375,00012022 £377,000) to Lawrence Sheriff School Academy Trust. The expenditure is accounted for within Costs of Charitable 8clivilies. At the year-end £321 was owed lo Lawren Sheriff School Academy Trust 12022.. £321 owed lo Lawrence Sheriff School Academy Trustl. Page 24