report for ended 31staugust 2017

PATE'S GRAMMAR SCHOOL FOUNDATION

REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31ST AUGUST 2017

CHARITY REGISTRATION NUMBER: 311707


Contents of the Financial Statements

for the Year Ended 31st Au ust 2017

Page

Reference and Administrative Information

Trustees' Report

Statement of Trustees' Responsibilities

Auditors' Rcport

Statement of Financial Activities

Balance Sheet

Cash Flow Statement

2 —10

12-13

16

Notes to the Financial Statements

Detailed Income and Expenditure Account

17-31

32-35

PATE'S GRAMlVIAR SCHOOL FOUNDATION

REFERENCE AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31STAUGUST 2017

TRUSTEES

~ Also a Governor of Pate's Grammar Schoolx Also a Member of Pate's Grammar School"Also a Member of the Audit Committee

C J Mourton (Acting Chairman & Trustee) "J H Parker (Chairman) * x (resigned 06/06/17)W Ascham * xR J C Wright xMrs E KirbyAld. L SurgenorG Bradshaw ~ xJ Clarke"J Harrison

B May"Mrs J WynnMrs L SanchezD Waters (appointed 23/01/17)

RICHARD PATE SCHOOL SENIORLEADERSHIP TEAM

PRINCIPAL ADDRESS

Mr R MacDonald —HeadmasterMrs L Cox —Bursar & Clerk to the TrusteesMrs S Wade —Deputy Head and DSLMr P Lowe —Deputy HeadMrs K Everitt —Head of PrepMrs J Miller-Howell —Senior MistressMrs P Hunte —Head of EYFS & Nursery Manager & DSLMrs J Jones —Deputy Head of Prep

Trustees GfftceRichard Pate SchoolSouthern RoadLeckhamptonCheltenhamGloucestershire, GL53 9RP

AUDITORS Davies Meyers Barnett Audit ServicesPillar House113/115 Bath RoadCheltenhamGloucestershire, GL53 7LS

SOLICITORS Harrison Clark Rickerbys LimitedEllenborough HouseWellington StreetCheltenhamGloucestershire, GL50 1YD

BANKERS Barclays Bank picBritannia WarehouseThe DocksGloucester, GL1 2EH


TRUSTEES' REPORT


The Trustees present their Annual Report for the year ended 31st August 2017 under the Charities Act 2011,together with the audited accounts for the year, and confirm that the latter comply with the requirements ofthe Act, the Trust Deed and the Statement of Recommended Practice (SORP) "Accounting and Reporting byCharities" (FRS 102).For the purposes of this report, "the Charity" means Pate's Grammar School Foundation

as a whole and "the Foundation" means activities other than The Richard Pate School.

The Charity was founded in 1574 and is registered with the Charity Commission under charity number 311707.The Trustees, Executive Officers and principal addresses of the Charity and particulars of the Charity's

professional advisors are given on Page l.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governin DocumentThe Charity is governed by its Trust deed originally enacted in 1988 and last amended in 2003. This replaced

earlier deeds dating from 1574.

Trustee CommitteesThe structure of the Charity, with its separate Trustee Committee for the Richard Pate School is explained

below, together with information on how the members of each Committee are appointed to oAice.

Trustee A ointmentThe Charity Trustees are appointed as follows;-

Nominated Trustees —Four appointed by Corpus Christi Charity, Oxford, one by the Governors ofPate's Grammar School, two by Cheltenham Borough Council. Each appointment is made for a term

of four years according to the ordinary practice of the appointing body.

~C- tdT t —dt. -ptdT t b ppttdf t ff y by tttof the Trustees passed at a special meeting for which 21 days' notice has been given. Each co-optedTrustee is a person who through residence, occupation, employment or otherwise has specialknowledge of the Borough of Cheltenham.

Trustee Trainin and InductionTrustees receive a comprehensive pack of information concerning the current and historic activities of theFoundation together with advice and guidance appropriate for a charity Trustee. The updated Induction Policyalso requires them to receive a Health & Safety and Safeguarding induction at the Richard Pate School,together with copies of Keeping Children Safe in Education and the School's Safeguarding Policy.

Trustees are notified of appropriate training provided by the professional organisations the Foundation is amember of, including AGBIS. Trustees are also provided with information from relevant training attended bythe Clerk.

D t MkidDecisions are made by the Full Foundation Board and a majority vote.

PATE'S GRAMMAR SCBOOL FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31ST AUGUST 2017(continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT —continued

The Richard Pate School Committee

The Trustees are legally responsible for the overall management and control of both Pate's Grammar School

Foundation and The Richard Pate School. The Richard Pate School Committee, composed of six Trustees,

undertakes the role of governing body for the school and meets twice per term. Reports from that Committee

are subsequently received by the full Foundation Trustees who meet five times per year.

0 erational Mana ement

The day to day running of the Richard Pate School is delegated to the Headmaster, supported by the Senior

Leadership Team. The day to day running of the Foundation is delegated to the Clerk to the Trustees. Both

the Headmaster and the Clerk attend meetings of each Committee.

Pa and remuneration of the chari 's Ke Mana ement Personnel

Pay and remuneration for the Headmaster of the Richard Pate School and the Bursar and Clerk to the Trustees

is set annually by agreement of the Trustees in conjunction with the annual appraisal process. Pay is set with

reference to the Teachers Leadership pay scale and takes into account industry recognised benchmarking

information.

Governance and Mana ement

The Trustees are responsible for the management of the risks faced by the Foundation and the School. Detailed

considerations of risk are delegated to the Headmaster and Clerk. Risks are identified, assessed and controls

established on an ongoing basis.

The key controls used by the Charity include:-

Formal agendas for all Committee and Board activity;

Detailed terms of reference for the School Committee;

Strategic planning, budgeting and management accounting;

Established organisational structure and lines of reporting;

Development and implementation of formal policies;

Clear authorisation and approval levels;

Regular review of health and safety policy & procedures;

Regular review of safeguarding policy & procedures;

Audit committee annual risk review;

Regular training;

Trustees with designated areas of responsibility (such as Health & Safety, Safeguarding, Finance,

Estates, EYFS, and Staff).


TRUSTEES' REPORT


OBJECTIVES AND ACTIVITIES

Charitable Ob'ectivesThe aims and objectives of the Charity continue unchanged as the advancement of education and the provision

of enhanced academic, cumcular and other opportunities to the pupils of both schools.

In setting objectives and planning activities the Trustees have given careful consideration to the CharityCommission's general guidance on Public Benefit.

The beneficiaries of the Charity are:

1. Pate*s Grammar School, a state funded Academy;2. The Richard Pate School, a wholly owned Independent School; and

3. Persons under the age of 25 who are or have attended, as pupils, one or both of the Schools and are in

need of financial assistance for the furtherance of their education,

Pare 's Grammar School

The Charity provides the site and some buildings of Pate's Grammar School (an Academy) and, in the year in

question, has committed to revenue support of f300,000 in financial year 2017/18. This revenue support is toprovide assistance to the following elements of the School's provision:-

~ Outdoor Education~ Combined Cadet Force~ Saturday Sport~ Music Performances~ Drama Performances~ Pastoral support~ Counselling provision~ Art Exhibitions~ Oxbridge & Russell Group University and Medical School Entry Requirements~ Support (exam preparation) lessons for students~ Extra-Curricular transport costs~ Debating and public speaking~ Library support~ Information and guidance sessions for sixth form students~ Careers advice and support

The provision of the site and revenue support enables the Governors to offer a broad curriculum, a wide rangeof extra-curricular activities and other benefits not normally funded by State provision.

In the year in question the Foundation has also provided an additional building to Pate's Grammar School in

the form of the old Foundation office, which is being used as the Archive and Development office and meetingspace. This enables the School to raise additional funding through its alumni which is a valuable source ofincome to the School.

Three Trustees of the Foundation are also Governors of Pate's Grammar School. Four Trustees of theFoundation are also Members of Pate's Grammar School (Company Limited by Guarantee).

PATE'S GRA~ SCHOOL FOUNDATION

TRUSTEES' REPORT

FOR THK YEAR ENDED 31STAUGUST 2017(contInued)

OB3KCTIVKS AND ACTIVITIES - continued

The Richard Pate School

The Richard Pate School is a fee paying independent school. The Charity's objective with regards to theSchool is to provide a first class rounded education. Any surplus generated by the Richard Pate School forms

part of the funds of the Charity and therefore is for the furtherance of its charitable objectives.

At the Richard Pate School, financial support of E4,969 has provided bursaries for 4 pupils and a further 25have benefited from scholarships at an overall cost of f34,088.

In the Financial Year the School has hosted a local SENCO meeting involving schools from both the state and

independent sector.

The Richard Pate School frequently provides work experience opportunities to young adults wishing to enter

the teaching profession, and during this financial year work experience opportunities and mentoring wasprovided to 4 individuals in the Nursery, Prep and Junior departments. The School also enabled a student toundertake research on learning as part of her university degree course and enabled an adult studying to becomea teaching assistant to volunteer to gain experience.

The School also has a number of charitable initiatives throughout the year raising f4,094. The following

charities were supported during the year:

Operation Christmas ChildGloucestershire Young CarersCheltenham Open DoorCheltenham Food BankWell ChildYoung MindsSchoolin a BagWinston's WishGloucestershire CathedralRoald Dahl CharityHealth Improvement ZanzibarNational Poppy Appeal

The School's choir visited the local Sue Ryder hospice to deliver a festive performance, and following the

harvest festival assembly performed at Dovvty House, a local residential elderly care home part of the LillianFaithful charitable care home group, in addition to donating our harvest festival produce,

The School hosts football matches, chess matches and a series of wildlife quizzes with local state schools and

also provides its astro-turf facility free of charge to a women's hockey club, The Puffins. Sharing sportsfacilities is limited by the poor drainage of the turf pitches and the planning consent which limits the use ofthe flood lights being no later than 6.00pm.


TRUSTEES' REPORT

FOR THK YEAR ENDED 31ST AUGUST 2017(continued)

OBJECTIVES AND ACTIVITIES - continued

Current or ex-pupils ofone or batli of the Schools

The Charity also promotes the education of persons under the age of 25 who are or have attended, as pupils,one or both of the Schools and are in need of financial assistance. This assistance is provided via scholarships,

exhibitions, bursaries, maintenance allowances and grants, enabling these young people to pursue their

education, undertake travel or prepare to undertake a profession, trade or service. In the year under review,

many pupils and former pupils have benefited from grant support totalling f 8,028.

Capital assistance ta beneficia&T Schools

The need for capital assistance at the Schools is dealt with by the approval of bids made to the Foundation,

typically on a project by project basis. Such expenditure, is not therefore consistent, on an annual basis. In

the last 23 years 83.832m has been donated for capital projects and f2.861m for revenue support at Pate's

Grammar School. And, over a similar period the Richard Pate School has received capital support of f4,916m.The surplus generated each year by the Richard Pate School is part of the funds available to be donated by theFoundation in this manner.

In this financial year, the Foundation incurred capital expenditure of 8459k at the Richard Pate School.

ACHIEVEMENTS AND PERFORMANCE

The Pate's Foundation continues to devote itself successfully and exclusively to its three principal charitable

objectives.

We seek to provide stability to the operating environments of both Schools, to allow the experiencedprofessional management provided by the Headmasters and their senior teams to deliver excellence in

educational provision. The academic, sporting and cultural achievements at both Schools continue todemonstrate what can be achieved where standards are demanding and expectations high.

The Foundation aims to operate as efficiently as possible in order to maximise the resources available to be

granted to its beneficiaries.

~cit IP

In this financial year, the Richard Pate School undertook the second phase of the extension of the front of the

School, which included the extension and refurbishment of the School's kitchen for the first time since it was

built in 1987. This project completed successfully during the year, the upgrade addressed health and safetyand fire concerns as well as the necessary renewal of old failing equipment.

The Foundation continues to provide the Foundation OAice to Pate's Grammar School who use it as their

Development OAice. This is a resource that is used for fundraising, archive and teaching school activities.This is in line with the Foundation's objective stated last year to continue to support the Grammar School in

any way to maintain its position as a high performing school in an environment of restricted budgets.


TRUSTEES' REPORT

FOR THK YEAR ENDED 31ST AUGUST 2017(contInued)

ACHIEVEMENTS AND PERFORMANCE —continued

With the focus on revenue funding to the Grammar School in the coming years, the Foundation does not

anticipate an accumulation of funds in order to support any significant capital projects, however the Richard

Pate School continues to work hard to maximise its surplus generation in order to fund smaller renewal capitalexpenditure.

Revenue su ort to Pate's Grammar School

A commitment to revenue support to Pate's Grammar School last academic year, and paid in this academic

year has enabled the Foundation to provide essential assistance in a period of significantly reduced funding

and uncertainty with future funding for the School. The Foundation is delighted to continue this support with

enhanced revenue funding agreed for another year.

Despite the financial pressures on Pate's Grammar School, the Foundation is very proud that it remains oneof the top performing mixed state Academies in the country, selective only according to academic ability, notsocial status. The Foundation is delighted that the School is expanding such that in a further 2 years it should

expect to educate nearly I,200 students.

0 eration of the Richard Pate School

The Richard Pate School continues to perform extremely well in a difficult financial climate and a very

competitive local market. Pupil numbers remain good and educational and sporting outcomes excellent, asdemonstrated by the numbers of Grammar School places and independent school scholarships offered to year6 pupils.

The school works hard to support the local community, with its initiatives and activities listed in the previous

section of this report.

The Richard Pate School was subject to an ISI Compliance Inspection in May 2017, in which it was judged tohave met all of the required standards with no further recommendations for improvement.

Trustees

The Foundation is fortunate to have an interested and informed group of Trustees who give willingly of their

time. I want to thank them all for their commitment and contributions.

This year Mr John Parker stood down as the Foundation's Chairman and as a Trustee. Mr Parker held the

position for 21 years. Foundation Trustees thanked Mr Parker for his dedicated service for so many years and

wish him the very best in his retirement. The Foundation is still ivorking towards a permanent replacement forJohn with an acting Chairman agreed for each meeting.

The Trustees met on six occasions during the year with the AGM, four quarterly business meetings and one

special meeting. There are two committees: the Audit Committee which meets annually to review financial

and risk policies and considers the accounts in detail, and the Richard Pate Committee which met 6 times

and governs the Richard Pate School. During the year the Trustees have monitored the financial position ofboth Schools, reviewed Regulatory Compliance, including health and safety and safeguarding. Trusteescontinue to consider carefully the Charity's public benefit.

PATE'S GRAIVIMAR SCHOOL FOUNDATION

TRUSTEES' REPORT


FINANCIAL REVIEW

The accounts report an increase in overall funds of f22, 590.

In the year to 31st August 2017, the Richard Pate School made a revenue surplus of f124, 172 (2016:f68,368).Capital expenditure totalling f459,279 (2016: f106,184) was also incurred.

Donations to Pate's Grammar School committed for payment in 2017/18 totalled f300,000 (2016: f 162,000)in the year for revenue support.

The Restricted Funds dedicated to the provision of awards decreased by f6,658 (2016: f7,574), after an

increase in capital value of f8,225 (2016: f8,752) during the year. After funding of the two schools, the

unrestricted reserves of the Charity increased by f29,248 (2016: f90,826).

The balance sheet shows Net Current Liabilities of f272, 191 compared with Net Current Assets of f4,762 in

the previous year. This Net Current Liability position reflects the committed donations to Pate's Grammar

School payable in 2017/18. The Foundation carefully monitors its cash t1oiv position and is confident that

funds will be available when the payment is due.

Investments Polic and Performance

Under the Trust Deed, the Charity has the power to invest in any way the Trustees wish subject to the Trustee

Act 2000.

The Trustees, having regard to the liquidity requirements of operating the Richard Pate School, the

requirement to pay funds committed to Pate's Grammar School and to the reserves policy, have operated a

policy of keeping certain funds available in interest bearing deposit accounts and seek to achieve a rate ofinterest which matches or exceeds inflation as measured by the retail price index. The monetary policies

pursued by Government and the Bank of England make this objective unachievable in the current economic

climate. Negative real interest rates are sustained in the belief that they will assist a recovery. The invested

funds held on deposit achieved an average rate of 0.05% against the retail price index measure of inflation forthe year to 31st August 2017 of 2.98%.

Funds which are not required in the short term are invested in Charinco and Charishare UK unit trusts to

provide a balance of capital growth and investment income. These investments had a net increase in value off8,225 (including unrealised and realised gains) in the year and achieved an income return of 0,0013%.

R PRThe principal objectives of Pate's Grammar School Foundation require the Trustees to sustain and supportThe Richard Pate School, and provide land and buildings and financial support to Pate's Grammar Schoolover and above that provided by State or Local Authority funding. The Foundation also supports the education

of persons under the age of 25 who have attended either of the Schools. The Foundation is committed to the

maintenance of academic and education excellence at both Schools as a provider of revenue and capital

support.


TRUSTEES' REPORT


FINANCIAL REVIEW - continued

The Trustees plan expenditure over a period of at least 5 years, often with an accumulation period ahead ofany large commitment towards capital expenditure to one of the beneficiary schools. Trustees use prudent

monthly and quarterly cash flow forecasts to ensure that the Foundation retains unrestricted cash balances

(excluding the operational accounts of the Richard Pate School) totalling at least f50k to f.)00k on a monthly

basis, during periods of capital expenditure. Where the Foundation expects to reach these minimum levels, an

agreement is made with the Foundation's bank to ensure that a back-up facility will be made available ifrequired. This has never been used to date and the Foundation continues to operate on the basis that it has no

external debts to service.

All operational costs for the Richard Pate School are covered with income generated by the Richard Pate

School, and cash balances are monitored on a monthly basis to ensure that all expenditure is payable with

healthy positive cash balances at the month end,

The level of Reserves actual and forecast are reviewed by Trustees at every ordinary meeting, and inform all

commitment decisions made.

Plans for Future Periods

GovernanceThe Charity recognises that its governing document, last amended in 2003 requires review and updating sothat it is fit for purpose in the current environment, reflecting changes in Charity Law and practice and alsoEducational Regulation and practice,

The Charity therefore intends to review its relationships with its beneficiaries and its constitution and policies

such that it operates as effectively as possible.

Over the coming year the Charity will be considering its practices in light of the changes to Data Protectionrules under GDPR.

e~deThe Foundation wishes to continue to provide Pate's Grammar School with revenue support to preserve its

core activities and its additional activities which are what differentiates the experience of its students. Pate's

Grammar School has ambitious plans to enable it to secure its future pipeline of high performing students and

remain a centre of excellence for many years to come. The Foundation therefore hopes to continue to work

with the School to support its activities, whilst preserving the underlying principles of the original Founder.

These considerations will be taken into account by the Foundation in its financial planning.

At the Richard Pate School, the Foundation is committed to maintain its high educational and pastoral

standards, The asset which is the School site and buildings is of an age which means that the Foundation

expects to see an increase in repair and renewal expenditure in order to preserve this significant asset, Thisshould also protect the income generating ability of the School. In the coming year the School will concentrate

on works to roofs, windows, toilets and the astro pitch.

10

PATE'S GRAMIVIAR SCHOOL FOUNDATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31STAUGUST 2017(continued)

FINANCIAL ~- cnntinncd

Public BenefitAs part of the review of Governance, Trustees will continue to review and articulate its contribution to societywith reference to the Charity Commissions guidance on public benefit.

CONNECTED CHARITIES

The following are connected charities and organisations with which the Foundation co-operates in pursuit ofits charitable obj ectives:-

Pate Charity, Corpus Christi Charity, OxfordPate's Grammar School (Academy), Princess Elizabeth Way, Cheltenham, Gloucestershire

Material transactions with connected charities and the nature of the relationships are set out in note 24 of theaccounts.

STA~ AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Trustees are aware, there is no relevant audit information of which the Charity's Auditors areunaware, and each Trustee has taken all the steps that he ought to have taken as a Trustee in order to makehimself aware of any relevant audit information and to establish that the Charity's Auditors are aware of thatinformation.

Auditors

Davies Meyers Barnett LLP resigned as auditors on 30th October 2017 and were replaced by Davies MeyersBarnett Audit Services, a trading name of Baldwins Audit Services Limited.

A resolution to reappoint Davies Mayers Barnett Audit Services as Auditors will be proposed at a forthcomingTrustees meeting.

Approved by the Trustees on 25th January 2018 and signed on its behalf by:

nrton (Acting Chairman dk Trustee)

13

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF

PATE'S GRAMMAR SCHOOL FOUNDATIONcontinued

Opinion

In our opinion the financial statements:-

give a true and fair view of the Charity's affairs as at 31st August 2017 and of its 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to

report to you if, in our opinion:

~ the information given in the Trustees' Annual Report is inconsistent in any material respect with the

financial statements; or

~ sufficient accounting records have not been kept; 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.

DAVIES MAYERS BARNKTT AUDIT SERVICESStatutory AuditorsPillar HouseH 3/115 Bath RoadCheltenhamGloucestershireGL53 7LS

25th January 2018

13avies Meyers Barnett Audit Services is eligible to act as an Auditor in terms of section 1212 of the

Companies Act 2006.

15

PATE'S GRAMMAII SCHOOL FOUNDATION

BALANCE SHEET

AT 31STAUGUST 2017

31/08/17 31/08/16

Note

FIXED ASSETSTangible assetsInvestments

CURRENT ASSETSDebtorsCash at bank and in hand

CREDITORSAmounts falling due within one year

1011

1213

14

4/17, 88593,702

4@11487

562471421,022

983493

(1455,584)

3,928,08985,477

4,013,566

568,585549, 164

1,117,749

(1,112,987)

NET CURRENT ASSETS/(LIABILITIES)

TOTAL ASSETS LESS CURRENTLIABILITIES

(272,191) 4,762

4,039496 4,018,328

CREDITORSAmounts falling due after more than oneyear

NET ASSETS

15 (3,423) (4,945)

4,035873 4,013,383

FUNDSRestricted fundsUnrestricted funds

TOTAL FUNDS

17

18

10t49443rt27, 029

4,035/73

115,6023,897,781

4,013,383

Approved by the Trustees on 25th January 2017 and signed on their behalf by:-

C JM urtou (Acting Chairman & Trustee) JCla e(T t

16


CASH FLOW STATEMENT


Year ended31/08/17

Year ended3 l /08/16

NET CASH INFLOW FROMOPERATING ACTIVITIES

Cash flows from investing activities

Investment income receipts

Interest element of finance lease rental payments

Purchase of tangible fixed assets

Cash flows provided/(used in) investing activities

Notes

19 330,444

2,686

(471)

(459,279)

(457,064)

62,410

3,865

(461)

(98,576)

(95,172)

Cash flow from financing activities

Capital element of finance lease rental payments (1422) (2,120)

Increase/(decrease) in cash and cash equivalentsduring the year (128,142) (34,882)

Cash and cash equivalents at the start of the year

Net funds at 31st August 2017 20

549,164

421,022

584,046

549,164

17


NOTES TO THK ACCOUNTS

FOR THE YEAR ENDED 31STAUGUST 2017

1. STATUTORY INFORMATION

Pate's Grammar School Foundation is an unincorporated private Charity registered in England. The address

of its registered offlce is Trustees Office, Richard Pate School, Southern Road, Leckhampton, Cheltenham,

Gloucestershire, GL53 9RP.

2. STATEMENT OF COMPLIANCE

The financial statements of Pate's Grammar School Foundation have been prepared in compliance with

United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial

Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS102"),Statement

of Recommended Practice —Accounting and Reporting by Charities (SORP 2016) effective January 2015and applicable charity law,

3. ACCOUNTING POLICIKS

a) Basis of preparation

The accounts have been prepared under the historical cost convention as modified by the adoption ofcurrent cost for investment assets and applicable accounting standards. The principal accounting policies

which have been adopted on a consistent basis within that convention are set out below.

Having reviewed the funding facilities available to the Charity together with the expected ongoing demand

for places and the Charities' future projected cash flows, the Trustees have a reasonable expectation that

the Charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they

continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement

of Trustee's Responsibilities on page 11.

The financial statements are presented in sterling (g).

The following accounting policies have been applied consistently in dealing with items vvhich are

considered material in relation to the Charities' financial statements.

b) Fees receivable

Fees receivable are accounted for in the period in which income is due, Fees receivable are stated after

deducting allowances, scholarships and other remissions granted by the School. Fees received for education

to be provided in future years are carried forward as deferred income.

c) Donations and grants

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably

quantified and the economic benefit to the Charity is considered probable.

Donations and grants received for the general purposes of the School are credited to unrestricted funds.

Donations and grants subject to specific wishes of the donors are carried to relevant restricted funds. Gifts

in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or

consumption, or at the value to the College in the case of donated services or facilities.

18


NOTES TO THE ACCOUNTS


3. ACCOUNTING POLICIES —continued

d) Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for

longer-tenn liabilities, Expenditure is allocated to expense heading either on a direct cost basis, or

apportioned according to time spent.

The costs incurred in the general running of the Charity have been included under Operating costs of the

Foundation Charity. These are all those costs incurred by the Charity which are not directly attributable

to the charitable objects of the Charity.

The irrecoverable element of VAT is included with the item of expense to which it relates.

Grants awarded are expensed as soon as they become legal or operational commitments. Governance

costs comprise the costs of complying with constitutional and statutory requirements.

e) Teaching costs

Supplies of games equipment, books, stationery and sundry materials are written off when the expenditure

is incurred.

f) Fund Accounting

Funds held by the Charity are either:-

Uitresrricred funds —these are funds which can be used in accordance with the charitable objects

at the discretion of the Trustees.

Restricted fintds —these are funds that can only be used for particular restricted purposes within

the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised

for particular restricted purposes.

g) Leasing and hire purchase

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed asset.

Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives.

Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where

substantially all of the benefits and risks of ownership are assumed by the Charity, Obligations under

such agreements are included in creditors net of the finance charge allocated to future periods. The finance

element of the rental payment is charged to the Statement of Financial Activities so as to produce a

constant periodic rate of charge on the net obligation outstanding in each period.

h) Operating Leases

Rentals paid under operating lease agreements are charged to the Statement of Financial Activities evenly

over the period of the lease.

19




3. ACCOUNTING POLICIES —continued

i) Investments

Listed investments are valued at market value as at the balance sheet date. Unrealised gains and losses

arising on the revaluation of investments are credited or charged to the Statement of Financial Activities

and are allocated to the appropriate Fund according to the "ownership" of the underlying assets.

j) Tangible fixed assets

Tangible fixed assets are included in these accounts at their original cost less depreciation provided todate.

k) Depreciation of tangible fixed assets

Depreciation is provided to write off the cost of all relevant tangible fixed assets less estimated residual

value based on current market prices, in equal annual instalments over their expected useful economic

lives as follows:

Freehold land and buildingsPate's Grammar School

Motor vehiclesEquipment

2.5% - 10% straight line per annum

the assets that are purchased by the Foundation on behalf ofPate's Grammar School are fully written off in the year ofpurchase. (See note 10 for additional comments).20% straight line per annum

25% straight line per annum

Depreciation is charged from the month of acquisition at the above rate

I) Pension Schemes

The Richard Pate School contributes to the Teachers' Pension Scheme ("TPS"),This is a defined benefit

scheme and the assets are held separately from those of the Charity.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions overemployees' working lives with the School in such a way that the pension cost is a substantially level

percentage of current and future pensionable payroll, The contributions are determined by the Government

Actuary on the basis of quinquennial valuations using a prospective benefit method.

The TPS is a multi employer scheme and the School is unable to identify its share of the underlying assetsand liabilities of the scheme on a consistent and reasonable basis. In accordance with the SORP (FRS102),the TPS is therefore treated as a defined benefit contribution scheme and the contributions recognised asthey are paid each year.

The Charity also contributes to personal pension schemes for non-teaching staff at 6 —7.5% of annual

basic pay, and these contributions are accounted for in the year they are payable.

20

PATE'S GRAMIVIAR SCHOOL FOUNDATION



4. INCOME FROM CHARITABLE ACTIVITIES - SCHOOL FEESYear

ended31/08/17

Yearended

31/08/16

Gross School feesRegistrationsDiscounts

2,618,1564,950

(84,442)

2,538,664

2,461,7155 250

(77,280)

2,389,685

5. INCOME FROM VOLUNTARY SOURCESYear

ended31/08/17

Yearended

31/08/16

Grants and donations 290,570 281,178

Grants and donations represents amounts received by The Foundation as a revenue endowment under a deed

dated 1586. The purpose of the endowment is the maintenance of education at both Pate's Grammar School

and the Richard Pate School. It is converted into income on its receipt and has therefore not been presented as

a separate endowment fund but as an unrestricted income fund.

21




6. ANALYSIS OF TOTAL RESOURCES EXPENDED

Year endedStaff 31/08/17

Costs Other Depreciation Total5 f 5

Yearended

31/08/16Total

Charitable activitiesEdttcatton ond grant making:

EducationWelfarePremisesSupport costs of schooling

1,709,509

92,987

127,87585,551

150,24597,815

l 4,982 1,852466 1,800,67685,551 80,072

153,049 303894 26 I,429190,802 209,915

1,802,496 461,486 168)031 2,432,013 2,352,092

Operation of tire Formdatton C/rarity

Grants and donationsPate's Grammar Schoolrevenue supportSupport costs of the Foundation

Charity

41,339

290,683

52,044 17,530

52,044 349,552

41439 14,890

290,683 183,264

1,452 71,026 80,622

1,452 403,048 278,776

TOTAL EXPENDITURE 1,854,540 811,038 169,483 2,835,061 2,630,868

a) Governance included in support costsYear

ended31/08/17

Yearended

3 l/08/16

Remuneration to auditor for audit servicesRemuneration to auditor for non audit services

8,880480

9460

9,627480

10,107

Support costs have been allocated between activities using an estimation of the proportion used by each

activity.

22




7. STATEMENT OF FINANCIAL ACTIVITIES FOR THK YEAR TO 31ST AUGUST 2016 ASREQUIRED UNDER SORP (FRS102)

Unrestricted Funds

INCOME ANDENDOWMENTS FROM:

Nates

TheRichard

Pate Schoolf

FoundationCharity

f

RestrictedFunds

f

Yearended

31/08/16Total

f

Charitable activitiesSchool feesAncillary trading

investments

4 2,389,68530,640

135 1,216 2,514

2,389,68530,640

3,865

Voluntary SaurcesGrants nnd donations 281,178 281,178

TOTAL INCOME

EXPENDITURE ON:

7,420,460 28e 394 2,514 2,705,368

Charitnble activitiesEducation and grant mnking

Operation of Richard PateSchoolOperation of the Foundation

charity

2,352,092

259,936

2,352,092

18,840 278,776

TOTAL RESOURCESEXPENDED 6 2,352,092 259,936 18,840 2,630,868

NET INCOMINGRESOURCES BEFORETRANSFERS

Movement on investment assets

68,368 22 458 (16326)

8,752

74,500

8,752

NET MOVEMENT OFFUNDS 68,368 22,458 (7,574) 83,252

Funds brought forward at 1stSeptember 2015

Transfer between funds

3,806,955

~68,3683 68,368

123, 176 3,930,131

Funds carried forward at 31stAugust 2016 3,897,781 115,602 4,013,383

23



8. STAFF COSTS


Year ended31/08/17

Yearended

31/08/l 6

Salaries and wagesSocial security costsTeachers' superannuation

Non teachers' pension costs

1,521,443147,660151,92033,517

1,854,540

1,49 l, 741126,555149,02631,199

1,798,521

The average monthly number of employees during the year was made up as follows:-

Year ended31/08/17Number

Yearended

31/08/16Number

ScholasticAdministration

3632

3530

68 65

The number of higher paid employees was:-

Taxable emoluments band:-

f80,000-690,000

Year ended31/08/17Number

Yearended

31/08/16Number

The number with retirement benefits arising in:-2017

Number2016

Number

Defined Benefit Schemesfor which contributions amounted to

IX13,538

1

613,245

24




8. STAFF COSTS —continued

Trustees and key management personnel

No Trustees received remuneration or other benefits or reimbursement of expenses during the year (2016:ZNil), The total remuneration of key management personnel was 2523,229 (2016: f510,444).

9. TAXATION

The Charity is exempt for tax on income and gains falling within section 505 of the Taxes Act 1988 orsection 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its

charitable objects.

10. FIXED ASSETSFreehold

Land and~Buildin s

MotorV u I K~it T t I

Cost1st September 2016 6,026,730 27,984 363,573 6,418,287

Additions

Disposals

31st August 2017

453,351

6,480,081 27,984

5,928 459,279

369,501 6,877,566

Depreciation1st September 2016

Charge for year

Eliminated on disposal

31st August 2017

7, 142,770

154,501

2,297471

27,984

27,984

319,444 2,490, 198

14,982 169,483

334,426 2,659,681

Net book value31st August 2017 4,182,810 35,075 4,217,885

31st August 2016 3,883,960 44, 129 3,928,089

25




10. FIXED ASSETS - continued

As has already been stated in the Trustees' Report, the Charity provides ongoing support to Pate's

Grammar School. The School formally adopted Voluntary Aided Status on 1st September 1999 and

subsequently converted to an Academy on 1st December 2010,

The Charity owns land upon which Pate's Grammar School has been built. Through its commitment to

support the School, the Charity has not only provided revenue support but also capital support by the

funding of assets that have been built on this land for the use of the School. In the last 19 years, the total

of this capital expenditure on behalf of the School has amounted to f3.832m.

With effect from 1st December 2010, Pate's Grammar School adopted Academy status in accordance with

Schedule 1 to the Academies Act 2010. As part of that process, Pate's Grammar School Foundation has

granted a long lease over the land on which the assets have been built to Pate's Grammar School at a

peppercorn rent. The Charity has treated these assets as having been disposed of for fNil proceeds during

the financial year 2011/12. Any dispositions in the future will be as prescribed by Sections 37 and 39 ofthe Charities Act 2011.

The net book value of assets held under finance leases, is as follows:-31/08/17 31/08/16

Equipment 4,279 6,182

The depreciation charge for the year relating to assets held under finance leases is f1,903 (2016: f2,290)relating to equipment.

11. INVESTMKNTS RestrictedFunds

fTotal

Valuation at 1st September 2016Revaluations

85,4778,225

85,4778/25

Valuation at 31st August 2017 93,702 93,702

The investments above comprise Charinco and Charishare UK unit trusts in which the market value isconsidered material in the context of the investment portfolio, as set out below:-

31/08/17No: of units

31/08/17 31/08/16No: of units

31/08/16

Charinco UK unit trustCharishare UK trust

7,98312,156

15,94077,762

7,98312, 156

16,67468,803

93,702 85,477

26




11. INVESTMENTS - continued

Investment income was derived, as set out below:-31/08/17 31/08/16

Charinco and Charishare portfolioInterest received on cash deposits

2,546140

2,686

2,5131,352

3,865

12 DEBTORS31/08/17 31/08/16

School feesOther debtorsPrepayments

536,384707

25,280

562@71

550,837693

17,055

568,585

13 CASH AT BANK AND IN Ih&%31/08/17 31/08/16

Current accountsDeposit accountsTreasury deposit accountsCash

363,72428,68928,084

525

494,30626,34627,987

525

421,022 549,164

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR31/08/17 31/08/] 6

Fees received in advanceTrade creditorsOther taxes and social security costsOther creditorsAccruals and deferred incomeNet obligations under finance leases

809,45761,50636,61230,010

316,4771,522

803,87961,59935,13328,784

182,0701,522

1455,584 1, I I 2,987

27



FOR THK YEAR ENDED 31STAUGUST 2017(continued)

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONK YEAR - continued

Fees received in advanceThe movement in fees received in advance comprises of:

Fees received in advance as at 31st August 2016Less amounts recognised during the yearAmounts received in the year in relation to future financial years

2017f

803,879(803,879)809,457

Fees received in advance as at 31st August 2017 809,457

15. CREDITORS: AMOUNTS FALLING DUK IN MORE THAN ONE YEAR31/08/17

f31/08/16

Net obligations under finance leasesDue within 5 years 3,423 4,945

3,423 4,945

The obligations under finance leases are secured on the underlying assets.

16. OPERATING LEASES

Minimum lease payments under non-cancellable operating leases fall

Within one yearBetween one and five years

due as follows:Other operating leases

2017 2016

6,722 6,7228,754 15,476

15,476 22, 198

Pate's prize fundPate's scholarship fundPate's library fundRPS Howell/Stinchcombe prize fundRPS Winterbotham fund

2 0724 242

17. RESTRICTED FUNDSBalance

at 1stSeptember

2016f

30,83354,38224,073

incomingResources

f633

1,770499

61133

Un realisedGain on

Investmentsf

1, 1064 5251,859

234501

ResourcesApplied

f(1,518)(6,510)(8,431)

(130)~iio

Balanceat 31st

August2017

f31,05453,61718,000

2i2374,036

115,602 7,546 8 225 (17,429) 108,944

28

PATE'S GRA~ SCHOOL FOUNDATION



17. RESTRICTED FUNDS - tantinucd

Pate's prize fund was established to provide scholarship prizes for Pate's Grammar School.

Pate's scholarship fund was established to provide Pate's Grammar School bursaries.

Pate's library fund was established to provide books for Pate's Grammar School library.

The Howell/Stinchcombe prize fund was established to provide scholarship prizes for The Richard Pate

School.

The Winterbotham fund was established to provide books for The Richard Pate School library.

18. ALLOCATION OF NKT ASSETS BETWEEN FUNDS

FixedAssets Investments

NetCurrent

Assetsf

Creditorsdue in more

~one ear Total

Restricted FundsUnrestricted Funds 4317,885

93,702 15,242(287,433) (3,423)

108,9443,927,029

4,217,885 93,702 (272,189) (3,423) 4,035,973

19. RECONCILIATION OF NKT INCOMING RESOURCES TO NET CASH INFLOW FROMOPERATIONS

Year Yearended ended

31/08/17 31/08/16

Net incoming resourcesInvestment incomeInterest element of finance lease rental paidDepreciation chargesDecrease/(Increase) in debtorsIncrease/(Decrease) in creditors

Net cash inflow from operations

14/65(2,686)

471169,483

6,214142,597

330,444

74,500(3,865)

461171,463(12,461)

(167,688)

62,410

29




20. ANALYSIS OF CHANGES IN NET FUNDS

At 1st September2016f

Cash Flows At 31st August2017

f

Cash at bank and in hand 549, 164

549, 164

(128,142)

(128,142)

421,022

421,022

21. CAPITAL COMMITMENTS

There were no capital commitments at the balance sheet date (2016: fNil).

22. CONTINGENT LIABLIITKS

There were no contingent liabilities at the balance sheet date (2016: fNil).

23. PENSION AND SIMILAR OBLIGATIONS

Teaching StaffThe Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed bythe Teachers' Pensions Regulations (2010) and, from 1st April 2014, by the Teachers' Pension SchemeRegulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January

2007, automatic for teachers in part-time employment following appointment or a change of contract,

although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis —these contributions

along with those made by employers are credited to the Exchequer. Retirement and other pensionbenefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension SchemeNot less than every four years the Government Actuary, using normal actuarial principles, conducts aformal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and

Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specifythe level of future contributions. Actuarial scheme valuations are dependent on assumptions about thevalue of future costs, design of benefits and many other factors. The latest actuarial valuation of theTPS was carried out as at 31st March 2012 and in accordance with the Public Service Pensions

(Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by theDepartment for Education on 9th June 2014.

30




23. PENSION AND SIMILAR OBLIGATIONS - continued

The key elements of the valuation and subsequent consultation are:

~ employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employeradministration charge);

~ total scheme liabilities (pensions currently in payment and the estimated cost of future benefits)for service to the effective date of f191,500 million, and notional assets (estimated futurecontributions together with the notional investments held at the valuation date) of f.176,600million giving a notional past service deficit of f14,900 million;

~ an employer cost cap of 10.9% of pensionable pay will be applied to future valuations; and

~ the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. Therate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is

5.06%.

During the previous year the employer contribution rate was 14.1%. The TPS valuation for 2012determined an employer rate of 16.4%, which was payable from September 2015. The next valuationof the TPS will be as at March 2016, vvhereupon the employer contribution rate is expected to bereassessed and will be payable from 1st April 2019.

The superannuation charge in the year represents contributions payable to the fund of f.151,920 (2016:8149,026), Contributions totalling f20,062 were payable to the fund at the year end (2016: f 19,842).

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The Charity hasaccounted for its contributions to the scheme as if it were a defined contribution scheme. The Charityhas set out above the information available on the scheme.

Non-Teaching Staff Pension Scheme

The Charity also runs a scheme for its non-teaching staff, which is a defined contributions scheme. Thecost for the period represents the School's contributions to the scheme of f33,517 (2016: 630,138).Contributions totalling 84,409 were payable to the fund at the year end (2016: 64,045).

24. RELATED PARTY TRANSACTIONS

The Charity received endowment income of f290,570 (2016: f281,178) from The Pate Charity whichis administered by Corpus Christi Charity, Oxford. By virtue of this administrative role and the rightthe Charity has to appoint four Trustees, the Charity is a related party. A balance of Qqil (2016: Z Nil)was included within other debtors as at 31st August 2017.

Pate's Grammar School is a related party due to the common members of the governing bodies. Duringthe year the Charity committed to a 6300,000 (2016: 8162,000) donation to Pate's Grammar School forrevenue support which is included within accruals as at 31st August 2017. Total revenue support givento Pate's Grammar School during the year was 2290,683 (2016:8183,264) which includes the f300,000included within accruals at the year end (2016: 6162,000). Costs of 21,819 (2016; $1,948) wererecharged to Pate's Grammar School during the year.

31




24. RELATED PARTY TRANSACTIONS - continued

The Clerk to the Trustees' two children attended The Richard Pate School during the academic years2016/17 and 2015/16. As is common practice within independent education, staff members are allowed

a discount against fees. The discount was at the same percentage rate as that allowed to all staffmembers. The total fees before discounts, registration fees reimbursed and nursery grants were 819,635(2016: 117,895).

During the year ended 31st August 2016, f1,980 of legal fees were incurred from a partnership in which

John Clarke, a Trustee, was a partner.

The ultimate control of the Foundation resides with the Trustees of the Foundation by virtue of the

powers vested in them by the Trust Deed for the Charity.

report for ended 31staugust 2017

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