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2021-07-31-accounts

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

Registered number: 02928829 Charity number: 1039099

CHILD LIGHT LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 8
Independent auditors' report on the financial statements 9 - 12
Statement of financial activities 13
Balance sheet 14 - 15
Statement of cash flows 16
Notes to the financial statements 17 - 33

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JULY 2021

Trustees

Mr R C Macaulay (resigned 6 December 2021) Mr D E C Alderson Mr T Amies, Chair Mr D Leckie Mrs C M Meakin Dr R McDonald

Company registered number

02928829

Charity registered number

1039099

Registered office

17-19 Brookside Cambridge CB2 1JE

Company secretary

Mr J W Fletcher

Chair of the Trustees

Mr T Amies

Independent auditors

Griffin Stone Moscrop & Co Chartered Accountants 21 - 27 Lamb's Conduit Street London WC1N 3GS

Bankers

Lloyds Bank 5 The Square Petersfield Hampshire GU32 3HL

Page 1

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2021

The Trustees present their annual report together with the audited financial statements of the Company for the 1 August 2020 to 31 July 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Structure, governance and management

a. Constitution

Child Light Limited is a registered charity and was established in 1994. It is a private company limited by guarantee with the company number 02928829.

The company is constituted under a Memorandum of Association and is a registered charity number 1039099.

b. Recruitment, Appointment and Induction of Trustees

Invitations are extended from time to time to suitable qualified and experienced men and women to become Trustees, following consultation with the existing body of Trustees. Newly appointed Trustees are provided with the induction materials, including a copy of the Memorandum and Articles of Association. They will have an induction with fellow Trustees and the Chief Executive and will be expected to spend time familiarising themselves with the workings of the charity.

Page 2

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

Day to day management of the operations of the charity, particularly its principal activity Heritage School, is overseen by Mr Jason Fletcher (Headmaster and Chief Executive).

Within Heritage School there is a Senior Leadership Team consisting of the Headmaster, the Deputy Head, the Bursar, the Head of Infants, the Head of Juniors, the Head of Seniors, the Head of Academics, the Head of Seniors Pastoral, and our Charlotte Mason Consultant. This team meets fortnightly to consider operational matters and whole-school policy decisions.

Beneath this Senior Leadership Team, teachers meet in their departments regularly as required. Head of subject areas hold meetings as required. Staff meetings involving Infant School and Junior School class teachers are held fortnightly as is a staff meeting for Senior School teachers. INSET training occurs four times per year for all staff. All of these meetings provide opportunities for discussion of educational philosophy and methodology and feedback regarding relevant policy and operational matters.

Day-to-day financial oversight is exercised jointly by the Headmaster and the Bursar in relation to the budget approved by Trustees. Budgetary responsibility for specific departments is devolved to heads of subject areas, the Head of Infants or the Head of Juniors. Budgetary responsibility for our enrichment programme is managed by our Head of Enrichment.

Bursaries are awarded by a Bursary Committee, which will always include at least one Trustee. Within overall levels approved by Trustees, the Bursary Committee awards bursaries following a means-tested application process. The Headmaster is not a member of the Bursary Committee.

Trustees have responsibility over all operational and policy decisions taken by the management of the school (and the charity as a whole). Specifically, they routinely consider:

• the financial position of the school, including setting the level of fees, agreeing the extent of bursaries to be awarded in each year, agreeing an annual budget, monitoring progress against budget, and authorising exceptional expenditure;

d. Internal Controls and Risk Management

The systems of internal control and risk management are designed to provide reasonable, but not absolute assurance against misstatement and loss. They include:

• regular strategic reviews, an annual budget approved by the Trustees and quarterly management accounts comparing performance against budget;

Page 3

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Structure, governance and management (continued)

e. Related party relationships

Mr Macaulay, a trustee, has a daughter and son in law (the Headmaster) who are employees of the school. Four other trustees (Mr Amies, Mrs Meakin, Mr Leckie and Mr McDonald) have between them ten (2020 - same) children who attend the school.

Mr Amies has a spouse who works for the school.

The salaries paid to the headmaster and his and Mr Amies’ spouse are on terms no more favourable than those of any other employee and there is no benefit or discount on fees as a result of being related to a trustee.

Objectives and activities

a. Policies and objectives

The objects of the charity as stated in its Memorandum and Articles of Association:

b. Strategies for achieving objectives

The charity pursues the above stated objects by providing advice, advocacy or information, by undertaking research, by acting as an umbrella or resourcing body and by directly delivering services.

Child Light Limited is particularly concerned to advance the approach to education articulated by Charlotte Mason and the PNEU (Parents National Education Union).

The primary strategy used this year to implement the charity’s objectives was the operation of Heritage School, whose activities are described below.

c. Main activities undertaken to further the Company's purposes for the public benefit

The activities undertaken in the past by Child Light Limited have always included more than the direct provision of educational services. Child Light Limited has advanced education more broadly through the provision of advice, advocacy or information, including publications and undertaking research. During 2020-21 Child Light Limited has offered advice to other educators interested in operating along similar lines, and it made an agreement with a publisher to re-publish the original biography of Charlotte Mason.

Child Light Limited also continued to serve the wider community by hiring our facilities at a reasonable cost to other educational providers.

In addition, our accessible fee structure is intended to make the work of Child Light Limited as beneficial to as wide a segment of the population as possible.

Page 4

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Achievements and performance

a. Main achievements of the Company

During 2020-21 Heritage School was the principal activity of Child Light Limited.

We commenced 2020-21 with 192 pupils. 2020-21 was the fifth academic year in which we had a single class in each year group, from Reception to Year 11.

Our Leavers in July 2021 received offers at their preferred destination for post-16 education and training, with the majority going to Hills Road or Comberton Sixth Form. They achieved another set of outstanding exam results, with 68% of all results being awarded 9-8, 85% of all results being awarded either 9-7, and 92% of all results being awarded 9-6. 68% of all grades were above what standardised tests predicted to be ‘most likely’, demonstrating Heritage School’s ability to add value and help pupils exceed expectations. In 2020-21 we undertook more detailed statistical analysis of value-added and found that Heritage teaching added +1 grade per pupil per subject.

A hugely significant long-term development for the charity was that in August of 2020 we completed the purchase of our main school site from our landlords. During 2019-20 we had worked to raise finance to meet the landlords’ asking price. The transaction was completed, finally, at the start of the 2020-21 financial year. It is a remarkable achievement for a school founded in 2007 to have the freehold on its two central Cambridge properties (17-19 Brookside and Panton Hall), thus guaranteeing our future in our current location.

During 2020-21 the Coronavirus Pandemic continued to have a dramatic impact upon operations. We managed the changing landscape of Covid-19 regulations and did everything possible to keep pupils and staff safe and maintain in-person learning. This demanded a high level of management resources, including from our newly appointed (in June 2020) Compliance Officer. This included setting up ‘clinics’ for in-school testing of Senior pupils upon return in September and in early March. Our risk management and the support of pupils and parents meant that we were remarkably successful in preventing Covid-19 from disrupting in-person learning. There were no cases of Covid-19 amongst staff or pupils during the whole of 2020-21 or any known transmission taking place in school. No classes (or ‘bubbles’) were required to isolate. During the national lockdown from early January to early March, we rapidly transitioned to the provision of online learning, while supporting children of critical workers and vulnerable children with in-person learning. For the second year running, public examinations were cancelled in favour of teacher recommended grades. We ran our own internal examinations for our Year 11 pupils in May and early June. These internal assessments provided us with strong evidence to feed into our rigorously managed process for recommending grades to exam boards.

We made significant staff appointments for and during 2020-21, which have further strengthened the school’s management and administrative capabilities. These included appointing a new Special Educational Needs and Disabilities Coordinator (SENDCo) from September 2020 and a new Marketing Officer. In February 2021 we appointed a new Office Manager and shortly thereafter a new Finance Officer. We also appointed a new Educational Visits Coordinator.

In May of 2021, we had an Independent Schools Insptectorate Monitoring Inspection which found that the school had met all of its regulatory requirements. The decision taken by Trustees to appoint a Compliance Officer in June of 2020, in order to strengthen management resources in relation to regulatory compliance, enabled the school both to cope well with the regulatory demands of Covid-19 compliance and risk management and at the same time to strengthen various systems to ensure the school was fully compliant in all areas.

Recruitment of pupils was strong during 2020-21, with particularly strong demand for Lower Prep (Reception) relative to previous years; all available places were filled by October 2021. Demand for places in Year 7 remained strong; all places were filled from the start of term in September 2021.

In the financial year 2020-21 we have pursued a range of activities within our control to advance Christian education along Charlotte Mason/Parents National Educational Union lines. These activities have had the successful continued growth of Heritage School as their main purpose.

Page 5

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Achievements and performance (continued)

There are factors outside of our control that affect our ability to successfully achieve our objectives, particularly pupil recruitment and staff recruitment. The impact of these uncertainties is mitigated through effective marketing of the school generally and effective advertising for teaching vacancies, together with delivering a strong service that leads to positive personal recommendations on the part of those involved with Heritage School.

Financial review

a. Review

2020-21 was a year in which we expected a modest deficit as we began to make adjustments following the purchase of 17-19 Brookside. We were able to meet all operational costs from fee income and reserves, and to carry forward cash reserves into 2020-21, as these accounts show.

Fundraising activities were undertaken during 2020-21 by the Heritage Community Association (HCA), which was formed in the summer of 2011. It raised £2,789 during 2020-21 to support the work of the school. The school also received £37,776 from donors during 2020-21 in support, after the fact, of the purchase of 17-19 Brookside.

b. Reserves policy

At the end of the 2020-21 year, £949,647 total funds were held, of which £25,331 were restricted. The trustees seek to build reserves equal to 25% of the current year’s total expenditure.

c. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

d. Pay policy for senior staff

Pay and remuneration of the charity's key management personnel are determined with reference to the government's statutory guidance on pay and conditions for teachers in England and Wales (see https://www.gov.uk/government/publications/school-teachers-pay-and-conditions). This framework is used to determine the Headmaster's pay and the value of additional responsibilities undertaken by teaching staff. Pay for school administrators is determined in relation to industry standards. The performance of key management personnel is evaluated by Trustees regularly in the course of their normal duties. Pay is not linked to performance criteria. Trustees set pay levels for all staff, including key management personnel, when they approve the annual budget.

Page 6

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

e. Plans for future periods

In 2021-22 the operation of Heritage School will be the focus of the activities of Child Light Limited. Our main developmental priorities are:

Members' liability

The Members of the Company guarantee to contribute an amount not exceeding £1 to the assets of the Company in the event of winding up.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Company for the purposes 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Griffin Stone Moscrop & Co, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees on 24 March 2022 and signed on their behalf by:

................................................

Mr T Amies (Chair of Trustees)

Page 8

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILD LIGHT LIMITED

Opinion

We have audited the financial statements of Child Light Limited (the 'charitable company') for the year ended 31 July 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.

Conclusions relating to going concern

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.

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DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILD LIGHT LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our 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 Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 10

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILD LIGHT LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 11

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHILD LIGHT LIMITED (CONTINUED)

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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Brecht (Senior statutory auditor)

for and on behalf of Griffin Stone Moscrop & Co

Chartered Accountants Statutory Auditors

21 - 27 Lamb's Conduit Street

London

WC1N 3GS

24 March 2022

Page 12

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2021

Note
Income from:
Donations and legacies
3
Charitable activities
5
Investments
4
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net income
Transfers between funds
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
15,753
1,988,490
-
48,420
2,052,663
141
2,012,295
2,012,436
40,227
524,516
564,743
359,573
564,743
924,316		 Restricted
funds
2021
£
43,402
-
-
-
43,402
1,131
-
1,131
42,271
(524,516)
(482,245)
507,576
(482,245)
25,331		 Total
funds
2021
£
59,155
1,988,490
-
48,420
2,096,065
1,272
2,012,295
2,013,567
82,498
-
82,498
867,149
82,498
949,647		 Total
funds
2020
£
337,393
1,893,958
68
73,884
2,305,303
2,639
1,962,860
1,965,499
339,804
-
339,804
527,345
339,804
867,149

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 17 to 33 form part of these financial statements.

Page 13

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee) REGISTERED NUMBER: 02928829

BALANCE SHEET AS AT 31 JULY 2021

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
17
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
19
Unrestricted funds
19
Total funds		 12,180
26,687
208,444
247,311
(137,717)		 2021
£
6,819,475
6,819,475
109,594
6,929,069
(5,979,422)
949,647
949,647
25,331
924,316
949,647		 13,005
561,255
317,209
891,469
(714,535)		 2020
£
690,215
690,215
176,934
867,149
-
867,149
867,149
507,576
359,573
867,149

Page 14

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

BALANCE SHEET (CONTINUED) AS AT 31 JULY 2021

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on 24 March 2022 and signed on their behalf by:

Mr T Amies

(Chair of Trustees)

The notes on pages 17 to 33 form part of these financial statements.

Page 15

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 17 to 33 form part of these financial statements		 2021
£
6,096,103
13
(6,204,881)
(6,204,868)
-
(108,765)
317,209
208,444		 2020
£
1,029
3,077
(1,409)
1,668
-
2,697
314,512
317,209

Page 16

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

1. General information

Child Light Limited is a company limited by guarantee, incorporated in England & Wales, whose main activity is that of operating a school. The registered office and situation of the school is 17-19 Brookside, Cambridge CB2 1JE. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Child Light Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The trustees consider there are no material uncertainties about the company's ability to continue as a going concern.

2.3 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.4 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 17

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.5 Expenditure

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 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 allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with the administration of the company and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in activities that raise funds.

Charitable activities and Governance costs are costs incurred on the company's educational operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following bases:

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

2.7 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

Page 18

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.9 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.10 Debtors

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

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.13 Pensions

The company operates a defined contribution pension scheme in respect of its non-teaching staff and the pension charge represents the amounts payable by the company to the fund in respect of the year.

The company also operates a defined benefits pension scheme in respect of its teaching staff. The scheme is a state plan where it is not possible, in the normal course of events, to identify on a consistent and reasonable basis, the company's share of the underlying assets and liabilities of the plan. Therefore, as required by Section 28 of FRS 102, the company accounts for this scheme as if it was a defined contribution scheme. Contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

Page 19

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

2. Accounting policies (continued)

2.14 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3. Income from donations and legacies

Unrestricted
funds
2021
£
Donations
15,753
Total 2020
4,782		 Restricted
funds
2021
£
43,402
332,611		 Total
funds
2021
£
59,155
337,393		 Total
funds
2020
£
337,393

4. Investment income

Unrestricted
funds
2021
£
Investment income
-
Total 2020
68
Income from charitable activities
Unrestricted
funds
2021
£
Heritage School income
1,988,490
Total 2020
1,893,958		 Total
funds
2021
£
-
68
Total
funds
2021
£
1,988,490
1,893,958		 Total
funds
2020
£
68
Total
funds
2020
£
1,893,958

5. Income from charitable activities

Page 20

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

6. Other incoming resources

Royalties received
Other income
Coronavirus Job Retention Scheme income
Other interest received
Total 2020		 Unrestricted
funds
2021
£
202
15,589
32,616
13
48,420
73,884		 Total
funds
2021
£
202
15,589
32,616
13
48,420
73,884		 Total
funds
2020
£
321
-
70,486
3,077
73,884

Page 21

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2021
£
Heritage Community Association (HCA) costs
141
Total 2020
813		 Restricted
funds
2021
£
1,131
1,826		 Total
funds
2021
£
1,272
2,639		 Total
funds
2020
£
2,639

8. Analysis of expenditure on charitable activities

Unrestricted
funds
2021
£
Heritage School
2,012,295
Total 2020
1,962,860		 Total
funds
2021
£
2,012,295
1,962,860		 Total
funds
2020
£
1,962,860

9. Analysis of expenditure by activities

Direct costs
Total 2020		 Activities
undertaken
directly
2021
£
1,352,789
1,253,866		 Support
costs
2021
£
659,506
708,994		 Total
funds
2021
£
2,012,295
1,962,860		 Total
funds
2020
£
1,962,860

Page 22

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Heritage School direct costs
Staff costs
Depreciation		 Activities
2021
£
73,639
1,203,529
75,621
1,352,789		 Total
funds
2021
£
73,639
1,203,529
75,621
1,352,789		 Total
funds
2020
£
89,046
1,138,279
26,541
1,253,866

Analysis of support costs

Recruitment and training
Property
Administration
Marketing
Staff costs
Audit
Compliance and inspections
Professional fees
Loss on disposal
Total 2020		 Activities
2021
£
7,032
79,469
288,623
7,950
266,139
6,150
4,143
-
-
659,506
708,994		 Total
funds
2021
£
7,032
79,469
288,623
7,950
266,139
6,150
4,143
-
-
659,506
708,994		 Total
funds
2020
£
5,865
325,204
89,689
13,003
248,086
7,815
6,389
714
12,229
708,994

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 31 July 2021, no Trustee expenses have been incurred (2020 - £NIL).

Page 23

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

11. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £3,700 ( 2020 - £4,700 ) , and an accounts preparation fee of £2,450 (2020 - £3,115).

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2021
£
1,160,915
89,628
219,125
1,469,668		 2020
£
1,095,522
85,226
205,617
1,386,365

The average number of persons employed by the Company during the year was as follows:

Teaching staff
Administrative staff		 2021
No.
44
14
58		 2020
No.
47
10
57

No employee received remuneration amounting to more than £60,000 in either year.

The remuneration received by key management personnel was £125,261 (2020 - £107,186). In addition they received employer pension contributions to their pension schemes of £23,278 (2020 - £20,001). The key management personnel for the purpose of this disclosure are the Headmaster, Deputy Headmaster and the Bursar.

Page 24

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

13. Tangible fixed assets

Cost or valuation
At 1 August 2020
Additions
Disposals
At 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
On disposals
At 31 July 2021
Net book value
At 31 July 2021
At 31 July 2020		 Freehold
property
£
715,788
6,197,419
-
6,913,207
35,774
69,137
-
104,911
6,808,296
680,014		 Motor
vehicles
£
25,949
-
-
25,949
24,000
487
-
24,487
1,462
1,949		 Fixtures and
fittings
£
32,371
5,443
-
37,814
25,411
4,804
-
30,215
7,599
6,960		 Computer
equipment
£
16,145
2,019
(300)
17,864
14,853
1,193
(300)
15,746
2,118
1,292		 Total
£
790,253
6,204,881
(300)
6,994,834
100,038
75,621
(300)
175,359
6,819,475
690,215

The total net book value of the charity's freehold property has been pledged as security for liabilities. For further details, see Note 17.

14. Stocks

2021 2020
£ £
Finished goods and goods for resale 12,180 13,005

Page 25

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments
Tax recoverable		 2021
£
-
5,634
688
19,070
1,295
26,687		 2020
£
-
24,423
78,619
455,475
2,738
561,255

16. Creditors: Amounts falling due within one year

Bank loan
Other loans
Trade creditors
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income		 2021
£
85,148
1,276
17,995
-
-
22,927
10,371
137,717		 2020
£
592,912
-
38,327
21,983
24,926
10,317
26,070
714,535

Page 26

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

17. Creditors: Amounts falling due after more than one year

Bank loan
Other loans
Included within the above are amounts falling due as follows:
Between one and two years
Bank loans
Between two and five years
Bank loans
Over five years
Bank loans
Other loans		 2021
£
4,479,422
1,500,000
5,979,422
2021
£
88,602
196,008
4,194,812
1,500,000		 2020
£
-
-
-
2020
£
-
-
-
-

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments
Payable or repayable other than by instalments		 2021
£
4,194,812
1,500,000
5,694,812		 2020
£
-
-
-

Page 27

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

During the year a new bank loan was arranged with the charity borrowing £4,640,000 to be repaid over 30 years. This loan is subject to 3.98% interest per annum for the first 5 years and thereafter to an annual interest rate charge of 3.93% over the prevailing bank base rate. This loan is secured by a first fixed and floating legal charge over the charity's freehold properties, 17-19 Brookside (Cambridge, CB2 1JE), Panton Hall (Cambridge, CB2 1HP) and all other assets.

In addition the charity took out four other loans during the year:

The four loans have a second fixed charge over the charity's freehold properties and rank equally, with any payments proportionate to the loans advanced.

18. Financial instruments

2021 2020
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 208,444 317,209

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 28

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

19. Statement of funds

Statement of funds - current year

Balance at 1
August 2020
£
Unrestricted funds
General fund
359,573
Restricted funds
Restricted funds - other
19,781
Amazing Grace School,
Uganda
1,055
Building fund
486,740
507,576
Total of funds
867,149		 Income
£
2,052,663
5,127
499
37,776
43,402
2,096,065		 Expenditure
£
(2,012,436)
(269)
(862)
-
(1,131)
(2,013,567)		 Transfers
in/out
£
Balance at
31 July 2021
£
524,516
924,316
-
24,639
-
692
(524,516)
-
(524,516)
25,331
-
949,647		 Transfers
in/out
£
Balance at
31 July 2021
£
524,516
924,316
-
24,639
-
692
(524,516)
-
(524,516)
25,331
-
949,647
24,639
692
-
25,331
949,647

Restricted funds - other

Such resources represent small donations given for specific purposes relating to the running of the school.

Amazing Grace School, Uganda

Amazing Grace School is a school in Uganda of a roughly similar age as Heritage School. A number of the pupils are orphans, and there are boarders and day pupils. The relationship between Amazing Grace and Heritage Schools extends into the classroom as pupils write letters to one another and send art work and other items to each other. Typically, Heritage School donates the proceeds from the Christmas Concert collection and a portion of all HCA raised funds to Amazing Grace each year.

Building fund

The Building fund was launched in April 2019 to raise funds towards securing premises for Heritage School.

The charity completed the freehold acquisition of its main site on 17 August 2020 and the restricted conditions were met. Accordingly, the trustees deemed it reasonable to transfer the remaining fund balance of £524,516 to the general fund, the fund against which the related depreciation is charged.

Page 29

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General fund
Restricted funds
Restricted funds - other
Amazing Grace School, Uganda
Building fund
Total of funds
Summary of funds
Summary of funds - current year
Balance at 1
August 2020
£
General funds
359,573
Restricted funds
507,576
867,149		 Balance at
1 August
2019
£
350,554
3,277
43
173,471
176,791
527,345
Income
£
2,052,663
43,402
2,096,065		 Income
£
1,972,692
18,330
1,012
313,269
332,611
332,611
Expenditure
£
(2,012,436)
(1,131)
(2,013,567)		 Expenditure
£
Balance at
31 July 2020
£
(1,963,673)
359,573
(1,826)
19,781
-
1,055
-
486,740
(1,826)
507,576
(1,965,499)
867,149
Transfers
in/out
£
Balance at
31 July 2021
£
524,516
924,316
(524,516)
25,331
-
949,647		 Balance at
31 July 2020
£
359,573
19,781
1,055
486,740
507,576
867,149
949,647

20. Summary of funds Summary of funds - current year

Page 30

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

20. Summary of funds (continued)

Summary of funds - prior year
Balance at
1 August
2019
£
Income
£
General funds
350,554
1,972,692
Restricted funds
176,791
332,611
527,345
2,305,303
21.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Unrestricted
funds
2021
£
Tangible fixed assets
6,819,475
Current assets
221,980
Creditors due within one year
(137,717)
Creditors due in more than one year
(5,979,422)
Total
924,316
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£
Tangible fixed assets
690,215
Current assets
383,893
Creditors due within one year
(714,535)
Total
359,573		 Expenditure
£
(1,963,673)
(1,826)
(1,965,499)
Restricted
funds
2021
£
-
25,331
-
-
25,331
Restricted
funds
2020
£
-
507,576
-
507,576		 Balance at
31 July 2020
£
359,573
507,576
867,149
Total
funds
2021
£
6,819,475
247,311
(137,717)
(5,979,422)
949,647
Total
funds
2020
£
690,215
891,469
(714,535)
867,149

Page 31

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Dividends, interests and rents from investments
Loss on the disposal of fixed assets
Decrease in stocks
Decrease/(increase) in debtors
Increase in creditors
Net cash provided by operating activities
23.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
24.
Analysis of changes in net debt
At 1 August
2020
£
Cash at bank and in hand
317,209
Debt due within 1 year
(617,838)
Debt due after 1 year
-
(300,629)		 2021
£
82,498
75,621
(13)
-
825
534,568
5,402,604
6,096,103
2021
£
208,444
208,444
Cash flows
£
(108,765)
531,414
(5,979,422)
(5,556,773)		 2020
£
339,804
26,541
(3,077)
12,229
1,082
(401,973)
26,423
1,029
2020
£
317,209
317,209
At 31 July
2021
£
208,444
(86,424)
(5,979,422)
(5,857,402)

Page 32

DocuSign Envelope ID: DDA1A260-8D9F-4856-8B14-0ABBA1EE3487

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

25. Related party transactions

Related party transactions not disclosed elsewhere in the financial statements are as follows: - Mr Macaulay, a Trustee, has a daughter and son in law (the Headmaster) who were employees of the school during the year;

The salaries paid to the Headmaster and his and the Trustee's spouse are on terms no more favourable than those of any other employee and there is no benefit or discount on fees as a result of being related to a Trustee.

During the year, the charity received unrestricted donations totalling £200 (2020 - £300) from one of its trustees and restricted donations totalling £25,625 (2020 - £1,081) from five (2020 -one) of its Trustees.

26. Pension commitments

The charity operates a defined benefit scheme (DBS) in respect of its teaching staff and a defined contribution scheme (DCS) in respect of its non-teaching staff. The assets of each scheme are held separately from those of the charity in independently administered funds. The pension cost charge represents contributions payable by the company to these two funds.

The DBS is administered by Teachers' Pensions. The number of staff in this scheme at the year end was 50 (2020 – 36). The total employer contributions paid to this fund during the current year were £199,655 (2020 - £192,016).

The total employer contributions paid to the DCS fund during the current year were £19,470 (2020 - £13,601).

As at the balance sheet date, no contributions were (2020 - £24,926 was) payable by the charity.

27. Operating lease commitments

At 31 July 2021 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

2021 2020
£ £
Not later than 1 year - 10,959

Page 33