The Trustees present their annual report and financial statements for the year ended 31 August 2025.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). 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 original Charity was founded in 1574 and is registered with the Charity Commission under charity number 1202002-1 (previously 311707). On 1st September 2023 all unencumbered assets were transferred to the new incorporated charity, Pate’s Grammar School Foundation under charity number 1202002, incorporated as a company limited by guarantee in England, company number 14111232. The Trustees, Executive Officers and principal address of the Charity and particulars of the Charity’s professional advisors are given on the Legal and Administrative Information page.
Charitable Objectives
The aims and objectives of the Charity continue unchanged as the advancement of education and the provision of enhanced academic, curricular and other opportunities to the pupils of The Richard Pate School and Pate’s Grammar School.
In setting objectives and planning activities the Trustees have given careful consideration to the Charity Commission’s general guidance on Public Benefit.
The beneficiaries of the Charity are:
Pate’s Grammar School, a state funded Academy;
The Richard Pate School, a wholly owned Independent School;
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; and
In the event funds are not required by the above purposes, Pate House Charity.
Pate’s Grammar School
Under its Charitable Scheme, the Charity may provide the School with certain land and buildings, and grant funding for special benefits which are not normally provided by Government funding. Accordingly, the Charity provides the site and some buildings of Pate’s Grammar School (an Academy) and, in the year in question, has paid grant funding to the Grammar School of £300k, and committed £250k for the following year (2025/2026). The funding support is to provide assistance to the following elements of the School’s provision:
Outdoor Education
Combined Cadet Force
Saturday Sport
Music Performances
Drama Performances
Oxbridge & Russell Group University and Medical School support
Extra-Curricular transport costs
Library support
Information and guidance sessions for Sixth form students
Careers advice and support
Shaping Futures & Access for disadvantaged Pupils
Capital Projects to enhance site security.
In the year in question the Foundation continued to provide 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 Teaching School. This enables the School to raise additional funding through its alumni and also operate its Teaching School.
The provision of the site and financial support enables the Governors to offer a broad curriculum, a wide range of extra-curricular activities and other benefits not normally funded by State provision.
Two Trustees of the Foundation are also Members of Pate’s Grammar School (Company Limited by Guarantee).
The Richard Pate School
The Richard Pate School is a fee-paying independent school. The Charity’s objective with regards to the School 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.
Sharing sports facilities is limited by the poor drainage of the turf pitches and the planning consent which limits the use of the flood lights being no later than 6.00pm. However, in the year in question, sports facilities have been made available for adult hockey and netball activities.
Current or ex-pupils of one or both 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, 5 pupils and former pupils have benefited from grant support totalling £8k.
Capital assistance to beneficiary 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. In the last 31 years (since 1994) £4.08m has been donated for capital projects and £4.54m for revenue support at Pate’s Grammar School (a total of £8.615m). And, over a similar period the Richard Pate School has received net capital and revenue support of £0.150m.
In this financial year, the Foundation incurred capital expenditure of £90k (2024: £75k) at The Richard Pate School.
Fundraising
The School operates fundraising activities itself or sometimes publicises charitable activities of the School’s PTA. Parents and pupils are encouraged to take part but it is purely voluntary and no pressure is ever put on any member of the community to participate. As such the Charity follows the relevant fundraising standards as set out by the Fundraising Regulator. The School has not received any complaints about its fundraising activities. The School is satisfied that it does not place any undue pressure on its pupils, staff, parental community or vulnerable individuals to contribute to fundraising activities.
The School had a number of charitable initiatives during the year fundraising £2,485 and making food donations. The following charities were supported during the year:
Cheltenham Community Project
Cheltenham Open Door
Trussell Trust Food Bank
Astell house
St Faiths
Little Princess Trust
Gloucestershire Wildlife Trust
Save the Children
The description under the headings "Achievements and performance" and "Financial review" meet the company law requirements for the Trustees to present a strategic report.
The 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 experienced professional management provided by the Headteachers and their senior teams to deliver excellence in educational provision. The academic, sporting and cultural achievements at both Schools continue to demonstrate what can be achieved where standards are demanding and expectations high.
Trustees continue to target support to individuals in need, and to expand outreach support.
The Foundation aims to operate as efficiently as possible in order to maximise grants to its beneficiaries.
Capital Projects
The Foundation continues to provide use of the Foundation Office to Pate’s Grammar School who use it as their Development Office. 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.
In addition, in the year in question, Capital funding of £100k was granted and paid to Pate’s Grammar School for projects to improve site security. In the year in question £36k of capital funding was committed to Pate’s Grammar School for continued work on the security of the site, and this will be paid in financial year 2025/2026.
At the Richard Pate School capital expenditure was incurred on preparation for the atrium roof repair, car park works, and IT equipment.
Support to Pate’s Grammar School
A commitment to revenue support to Pate’s Grammar School made, and paid in this academic year has enabled the Foundation to enhance the School’s educational environment. In addition, a commitment to revenue support has been made to Pate’s Grammar School for next academic year of £214k (in addition to capital £36k).
Despite the significant pressures on Pate’s Grammar School, academic results for August 2025 were excellent, and will see the School rise in the national rankings for both GCSEs and A-Levels. The School was judged Outstanding in its last Ofsted inspection in March 2024, and in December 2024 was named South West State Secondary School of the Year for Academic Excellence.
During the year the School undertook a consultation to amend its admissions policy to target students in areas of high deprivation to broaden access to disadvantaged pupils and consider contextual admissions. Widening access continues to be an area Trustees consider an important area for funding support. In addition, the School undertook a necessary cost management exercise which included a staffing restructure to put the school on a more stable financial footing.
Operation and Performance of the Richard Pate School
The independent school market has been significantly challenged by the introduction of VAT on school fees (from January 2025), the removal of business rates relief (from April 2025) the increase in employers’ national insurance (from April 2025) and the previous increase in employer teachers pensions contributions. Despite this the Richard Pate School has performed well.
Pupil numbers at the start of the year were lower than budgeted but increased significantly through the year. Financial performance was significantly impacted by an adjustment made to fees in January 2025 to reduce the increase in fees payable by parents with the introduction of VAT in addition to the rising business rates and NI costs. Through the year the School put in place measures to manage ongoing expenditure to transition to the new post-VAT environment. These measures included difficult decisions around teachers pensions, and resourcing.
The School continues to work on improving its provision to parents, which included ongoing enhancement of its provision for 11+ transition, ensuring all pupils are well prepared for whatever School they move on to in Year 7. Pupil outcomes continue to be excellent, both in academic and extracurricular areas. During the year in question 43% of Year 6 pupils took up grammar school places; places were offered to all pupils applying for independent schools. There were also a significant number of sporting and academic successes throughout the year.
After 19 years in post the School’s Headteacher announced his retirement and a new Headteacher was recruited to start from 1 September 2025. Trustees, staff parents and pupils took the opportunity to thank Mr MacDonald for his long and dedicated service.
The School community looks forward to welcoming Mr Morgan as the new Headteacher to the School.
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.
The Trustees had five meetings during the year. There are two permanent committees: the Audit Committee which meets at least biannually to review financial and risk policies, considers the accounts in detail and the budgeting process, and the Richard Pate Committee which met five times and governs The Richard Pate School. During the year the Trustees have monitored the financial position of both Schools, reviewed Regulatory Compliance, including health, safety and fire, and safeguarding. Trustees continue to consider carefully the Charity’s public benefit with careful consideration of the charitable objects under which they operate.
The accounts report a decrease in overall funds of £397,152 (2024: decrease of £70,946).
In the year to 31 August 2025, the Richard Pate School made a revenue deficit of £196,260 (2024: £94,920 deficit). Capital expenditure totalling £95,284 (2024: £74,764) was also incurred.
In total £300k of revenue support was donated to Pate’s Grammar School during the year in question. A commitment for the following year of £250k was made on 3rd July 2025. In September 2025 a further commitment was made to Pate’s Grammar School to support a Pate’s Foundation Advantage Fund for a 10 year period for £50k per year from September 2026.
The Restricted Funds dedicated to the provision of awards decreased by £6,336 (2024: increase £8,061), after an increase in capital value of £921 (2024: increase £5,999) and expenditure of £9,362 (2024: £nil). The Charity generated an unrestricted deficit of £390,816 (2024: deficit of £79,007). After funding of the two schools, the unrestricted reserves of the Charity decreased by £390,816 (2024: decreased by £79,007).
The balance sheet shows Net Current Assets of £801,770 compared with Net Current Assets of £1,176,362 in the previous year.
Investments policy 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 ensuring that funds are reasonably accessible. That said, during the year in question funds were held in treasury deposits in order to increase interest income.
Funds which are or were restricted 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 of £1,348 (2024: increase of £9,889) (including unrealised and realised gains) in the year and achieved an income return of 3.2% (2024: 3.5%).
Reserves policy
The principal objectives of Pate’s Grammar School Foundation require the Trustees to sustain and support The Richard Pate School, and provide land and buildings and financial support to Pate’s Grammar School over 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 support the maintenance of academic and educational excellence at both Schools.
The Trustees plan expenditure over a period of at least 5 years, often with an accumulation period ahead of any large commitment towards capital expenditure to one of the beneficiary schools albeit more recently the need has been of a revenue support nature and therefore there has not been a significant build up of capital. At the end of this reporting period the charity held total funds of £3,874,115 which includes restricted funds of £69k (2024: £66k) and funds that can only be realised by disposing of tangible fixed assets of £3.216m (2024: £3.366m). Accordingly, after making allowances for restricted funds and tangible fixed assets the charity holds unrestricted, free reserves of £589k (2024: £845k).
It is the Foundation’s policy to maintain reserves at a level which will ensure continuity of the charity’s operations through more difficult trading conditions. The Trustees have determined that to protect against short or medium term fluctuations in pupil numbers and expenses, the central forecast of minimum cash and other liquid assets over the next 12 months should be at least £570k.
In March 2024 the Foundation introduced a Fees in Advance Scheme for parents wishing to pay School Fees for future years which accounted for the increase in creditors amounts falling due within 1 year and falling due after more than one year in the prior year accounts. This remains the case for this current year.
Cash balances for both the Foundation and the Richard Pate School are constantly monitored to ensure that all expenditure is payable with healthy positive cash balances at the month end. Within each month Treasury Deposits are placed in order to access higher interest rates but over such periods which ensure that cash is available for regular payments.
The level of overall reserves are reviewed annually, and cash reserves actual and forecast are reviewed by Trustees at every ordinary meeting. These reviews inform all commitment decisions made.
Governance
The Charity continues to consider its charitable objects to ensure that they are appropriately followed.
The Schools
Both Schools both are moving forward in particular preparing strategic plans for the next 5 to 10 years. Trustees hope to continue to provide financial support to the Schools where it adds real value, in particular Trustees are keen for this to include widening access, and outreach activities.
Pate’s Grammar School
Having undertaken a comprehensive review of its admissions policy, and a challenging review of expenditure, Pate’s Grammar School is looking forward to delivering its strategic plans. The new Admissions Policy is in place for pupils joining in September 2026, which should see more places for local and disadvantaged students. The Foundation is very supportive of the School’s efforts to widen access. It is looking forward to working with the School to successfully implement the Foundation funded Pate’s Foundation Advantage Fund from September 2026 which aims to support delivery of the new admissions policy.
The School has clear Development Plan Objectives which look to not only continue the academic excellence within the School but to widen and embed the extra-curricular and community engagement programme and continue to enhance wellbeing safeguarding and EDI priorities.
Trustees are looking forward to continuing to work with Dr Richardson and the Governing Body to support the School.
The Richard Pate School
With a new Headteacher in place, and the School becoming more familiar with the post-VAT financial environment, the Foundation is looking forward to the School continuing to deliver its excellent education to its pupils.
The School started the current year again with slightly lower pupil numbers but numbers have increased to budgeted levels since the start of the year, and it is clear that there is an appetite for the School’s exceptional provision.
The new Headteacher (Mr Morgan) will be working with the SLT and Trustees to review and update the School’s strategic plan. This will also include a continuation of work on the School’s business model to ensure it has a stable and sustainable financial footing the long term.
Trustees are committed to maintaining the School’s high educational and pastoral standards as reflected in the June 2024 ISI inspection report.
Public Benefit
As part of the review of Governance Trustees will continue to review and articulate its contribution to society with reference to the Charity Commissions guidance on public benefit.
Governing Document
The Charity is governed by its Articles of Association dated 17 May 2022 and amended on 31 August 2023.
Trustees
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustee Committees
The 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 office.
Trustee Appointment
The Charity Trustees are appointed as follows:
7 Nominated Trustees – Four appointed by Corpus Christi Charity, Oxford, one by the Governors of Pate’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.
6 Co-opted Trustees – Six co-opted Trustees are each appointed for a term of four years by a resolution of the Trustees.
Trustee Training and Induction
Trustees receive a comprehensive pack of information concerning the current and historic activities of the Foundation together with advice and guidance appropriate for a Charity Trustee. The updated Induction Policy also 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 a member of, including AGBIS. Trustees are also provided with information from relevant training attended by the Clerk.
Decision Making
Decisions are made by the Full Foundation Board and a majority vote.
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 up to six Trustees, undertakes the role of governing body for the school and meets five times per year. Reports from that Committee are subsequently received by the full Foundation Trustees who meet five times per year.
Operational Management
The day to day running of the Richard Pate School is delegated to the Headteacher, supported by the Senior Leadership Team. The day to day running of the Foundation is delegated to the Clerk to the Trustees. Both the Headteacher and the Clerk attend meetings of each Committee.
Pay & remuneration of the charity’s key management personnel
Pay and remuneration for the Headteacher 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 Management
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 Headteacher 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 and Finance).
Connected charities
The following are connected charities and organisations with which the Foundation co-operates in pursuit of its charitable objectives:
Pate Charity, Corpus Christi Charity, Oxford
Pate’s Grammar School (Academy), Princess Elizabeth Way, Cheltenham, Gloucestershire
Pate House Charity 16 Albion Street, Cheltenham, Gloucestershire
Material transactions with connected charities and the nature of the relationships are set out in Related Party Transactions note to the accounts.
The Trustees' report, including the strategic report, was approved by the Board of Trustees.
The Trustees, who are also the directors of Pate's Grammar School Foundation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Opinion
We have audited the financial statements of Pate's Grammar School Foundation (the ‘charitable company’) for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Trustees' use of the going concern 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report and the strategic report prepared for the purposes of company law, is consistent with the financial statements; and
the strategic report and the directors' report included within the Trustees' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Grants and donations
School fees
Ancillary trading
Investments
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Grants and donations
School fees
Ancillary trading
Investments
Pate's Grammar School Foundation is a private company limited by guarantee incorporated in England and Wales. The address of its registered office is Pate's Grammar School Foundation, Southern Road, Cheltenham, United Kingdom, GL53 9RP.
The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
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.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 School in the case of donated services or facilities.
Income from government and other grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is allocated to expense heading either on a direct cost basis, or apportioned according to time spent.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
Expenditure
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.
Teaching costs
Supplies of games equipment, books, stationery and sundry materials are written off when the expenditure is incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases. Depreciation is charged from the month of acquisition.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in other recognised gains and losses except to the extent that a gain reverses a loss previously recognised in net income expenditure, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year. Changes in fair value are allocated to the appropriate Fund according to the "ownership" of the underlying assets.
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
The Charity is exempt for tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 to spread the cost of pensions over employees' working lives with the charitable company 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 based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The Charity also contributes to personal pension schemes for non-teaching staff and these contributions are accounted for in the year they are payable.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
Linked charities
Pate's Grammar School Foundation is linked with a charity of the same name (charity number 1202002-1). The trustees of the charitable company and the linked charity are the same. The funds of the linked charity are nil and therefore no further disclosure of the linked charity is presented in these financial statements.
In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There is nothing to report in this regard.
Grants and donations
£442,447 (2024: £418,392) of 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.
School fees
Ancillary trading
School fees
Ancillary trading
Gross School fees
Registrations
Discounts
Ancillary trading
Investments
Investment portfolio
Interest received on cash deposits
Education
Welfare
Premises
Support
Grants and donations
Pate's Grammar School revenue support
Support costs of the Foundation charity
Other
Education
Welfare
Premises
Support
Grants and donations
Pate's Grammar School revenue support
Support costs of the Foundation charity
Other
Support costs have been allocated between activities using an estimation of the proportion used by each activity.
Governance costs totalling £40,569 were incurred in the period (2024: £55,188).
The average monthly number of employees during the year was:
Redundancy and termination payments totalling £24,542 were made in the reporting period. This payment related to one employee, comprising a payment in lieu of notice (PILON) and other contractual termination entitlements.
The payment was made in accordance with the terms of the individual’s employment contract and relevant employment legislation. No further payments or benefits are due in respect of this termination.
The Charitable Company provides ongoing support to Pate’s Grammar School. The School formally adopted Voluntary Aided Status on 1 September 1999 and subsequently converted to an Academy on 1 December 2010.
Pate's Grammar School Foundation charity owns land upon which Pate’s Grammar School has been built. Through its commitment to support the School, the Charitable Company 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 31 years, the total of this capital expenditure on behalf of the School has amounted to £4.08m.
With effect from 1 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 £Nil proceeds during the financial year 2011/12. Any dispositions in the future will be as prescribed by Sections 37 and 39 of the Charities Act 2011.
The permanently endowed land was not included in the transfer of assets from Pate's Grammar School Foundation charity referenced in note 1.1 and therefore has been retained in the charity.
Listed investments
The movement in fees received in advance is as follows:
Parents may enter into a contract to pay the School up to the equivalent of 7 years' tuition in advance, subject to current terms and conditions. Assuming pupils will remain in the School, advance fees will be applied as follows:
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
As at 31 August 2025, there were no guarantees or commitments (2024: none) other than the operating lease commitments referred to above.
During the year, income was recognised totalling £305,000 where fees had been paid in advance prior to 29 July 2024, which therefore did not attract VAT. In the event that HMRC rule that VAT should have been chargeable, VAT of £57,000 may be due, albeit the contractual arrangement for the Fees in Advance Scheme requires that the parents are liable for any VAT due in this event.
The income funds of the Charity includes restricted funds comprising of the following unexpended balances of donations and grants held on trust for specific purposes:
Pate's scholarship fund was established to provide Pate's Grammar School bursaries.
The Howell/Stinchcombe prize fund was established to provide scholarship prizes to The Richard Pate School.
The Winterbotham fund was established to provide books for The Richard Pate School library.
These are unrestricted funds which are material to the charitable company's activities.
Incoming resources
Resources expended
Incoming resources
Resources expended
Teaching Staff
The Charity participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The TPS is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
Valuation of the Teachers’ Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI.
The key elements of the valuation and subsequent consultation are:
employer contribution rates set at 28.68% of pensionable pay (including a 0.08% employer administration charge). This is an increse of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million giving a notional past service deficit of £39,800 million.
The result of this valuation was implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2027.
The employer's pension costs paid to the TPS in the period amounted to £321,411 (2024: £290,023). Contributions totalling £33,701 were payable to the fund at the year end (2024: £35,475).
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 an unfunded multi-employer pension scheme. The Charitable Company has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charitable Company has 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 contribution scheme. The cost for the period represents the School's contributions to the Scheme of £54,077 (2024: £51,475). Contributions totalling £Nil were payable to the fund at the year end (2024: £Nil).
The remuneration of key management personnel was as follows:
Other related party transactions
The Charitable Company received endowment income of £442,447 (2024: £418,392) from The Pate Charity which is administered by Corpus Christi College, Oxford. By virtue of this administrative role and the right the College has to appoint four Trustees, the College is a related party.
Pate’s Grammar School is a related party due to the common members of the governing bodies. During the year the Charitable Company committed to a £550,000 (2024: £300,000) donation to Pate’s Grammar School for revenue and capital support during the year to 31 August 2025. Total revenue and capital support given to Pate's Grammar School during the year was £550,000 (2024: £300,000) which includes £250,000 included within accruals at the year end (2024: £Nil).
The Charitable Company purchased an annual licence and support package from Learn With Us Ltd for £700 during the year (2024: £700). A trustee of the Charitable Company is a Director at the company. The trustees approved the purchase.
The charitable company had no material debt during the year.