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2023-07-31-accounts

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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 2023

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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 - 7
Independent auditors' report on the financial statements 8 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 31

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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 2023

Trustees

Mr D E C Alderson Mr T Amies, Chair Mr D Leckie (resigned 5 December 2022) Revd C M Meakin Revd Dr R McDonald Mrs F Hough (appointed 17 March 2023) Mrs T Anifalaje (appointed 13 March 2023)

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: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 JULY 2023

The Trustees present their annual report together with the audited financial statements of the Company for the 1 August 2022 to 31 July 2023. 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).

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.

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

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 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: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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 the Headmaster (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, and the Head of Academics Seniors. 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:

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:

Page 3

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Structure, governance and management (continued)

e. Related party relationships

Mr Macaulay, a trustee, (the Headmaster) who are employees of the school. Four of the trustees (Revd C M Meakin, Mr T Amies, Mrs T Anifalaje and Revd Dr. R McDonald) have between them seven (2022 - same) children who attend the school.

The company secretary, who is also the headmaster, and his wife are employees of the school. The salaries and any benefits to which they are entitled are on terms no more favourable than those of any other employee.

f. Financial risk management

The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

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 to implement the charity’s objectives is 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 have always included more than the direct provision of educational services. Child Light has advanced education more broadly through the provision of advice, advocacy or information including publications, undertaking research and acting as an umbrella body. During 2022-23 Child Light offered advice to other educators interested in operating along similar lines, and it oversaw the publication of a book for use in schools entitled Let’s Explore the British Isles by Caroline Walker.

Child Light 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 as beneficial to as wide a segment of the population as possible.

Page 4

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

Strategic report

Achievements and performance

a. Main achievements of the Company

During 2022-23 Heritage School was the principal activity of Child Light Limited.

We commenced 2022-23 with 190 pupils. It was the seventh academic year in which we had a single class in each year group from Reception to Year 11.

Our Leavers in July 2023 received offers at their preferred destination for post-16 education and training, with Hills Road Sixth Form as the most common. They achieved excellent results relative to pre-pandemic standards, with 55% of all results being awarded 9-8, 70% of all results being awarded either 9-7, and 84% of all results being awarded 9-6. ‘Added value’ analysis shows that over six years for which we have data, Heritage pupils have achieved, on average, 1.3 grades higher per subject than standardised assessments considered ‘most likely’. This demonstrates Heritage School’s unique ability to help pupils exceed expectations.

2022-23 was the first academic year since 2018-19 that was not directly affected by the Coronavirus Pandemic. During 2022-23, we appointed a new Deputy Head, to commence in September 2023. We also made the following teacher appointments during 2022-23 for a September 2022 start: Year 3 Class Teacher, Year 5 Class Teacher.

Recruitment of pupils was strong during 2022-23, particularly for places in our Lower Prep (Reception) class and in our Year 7 class.

In the financial year 2022-23 we have pursued a range of activities within our control to advance Christian education along Charlotte Mason/PNEU lines. These activities have had the successful continued growth of Heritage School as their main purpose. This also included publishing activity, particularly Let’s Explore The British Isles, by Caroline Walker, a text for use in upper primary school classrooms. In addition we welcomed numerous visitors to Heritage School who wished to see Charlotte Mason based education in practice.

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

We were able to meet all operational costs from fee income during 2022-2023, and to carry forward cash reserves into 2023-24, as these accounts show.

Fundraising activities were undertaken during 2022-23 by the Heritage Community Association (HCA), which was formed in the summer of 2011. It raised £6,604 during 2022-23 to support the work of the school.

Page 5

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

b. Reserves policy

At the end of the 2022-23 year, £1,177,855 total funds were held, of which £5,518 were restricted. The trustees seek to build unrestricted 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 in the light of independent school sector norms and 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). These norms are used to guide the Headmaster's pay, the Deputy Head’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.

e. Plans for future periods

In 2023-24 the operation of Heritage School will be the predominant focus of the activities of Child Light Limited. Our main developmental priorities are to:

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.

Page 6

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023

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 including the Strategic 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.

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 and signed on their behalf by:

................................................ Mr T Amies

Date: 4 March 2024

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DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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 2023 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: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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 including the Strategic 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:

Page 9

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

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

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.

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:

· Enquiry of management and those charged with governance.

· Reviewing financial statement disclosures and testing to supporting documentation to assess compliance.

· Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of activities and reviewing accounting estimates for bias.

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

Page 10

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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

15/3/2024 Date:

Page 11

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
Total expenditure
Net income/(expenditure)
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
2023
£
46,551
2,383,298
1,249
2,431,098
1,371
2,276,762
2,278,133
152,965
5,568
158,533
1,013,804
158,533
1,172,337		 Restricted
funds
2023
£
10,574
-
-
10,574
5,669
27,236
32,905
(22,331)
(5,568)
(27,899)
33,417
(27,899)
5,518		 Total
funds
2023
£
57,125
2,383,298
1,249
2,441,672
7,040
2,303,998
2,311,038
130,634
-
130,634
1,047,221
130,634
1,177,855		 Total
funds
2022
£
15,981
2,171,863
2,739
2,190,583
350
2,092,659
2,093,009
97,574
-
97,574
949,647
97,574
1,047,221

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

The notes on pages 15 to 31 form part of these financial statements.

Page 12

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

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

BALANCE SHEET AS AT 31 JULY 2023

2023 2023 2022 2022
Note £ £
Fixed assets
Tangible assets 13 6,676,254 6,746,740
6,676,254 6,746,740
Current assets
Stocks 14 12,222 11,988
Debtors 15 71,826 54,484
Cash at bank and in hand 405,248 259,889
489,296 326,361
Creditors: amounts falling due within one
year 16 (188,837) (135,060)
Net current assets 300,459 191,301
Total assets less current liabilities 6,976,713 6,938,041
Creditors: amounts falling due after more
than one year 17 (5,798,858) (5,890,820)
Net assets excluding pension asset 1,177,855 1,047,221
Total net assets 1,177,855 1,047,221
Charity funds
Restricted funds 19 5,518 33,417
Unrestricted funds 19 1,172,337 1,013,804
Total funds 1,177,855 1,047,221

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 were approved and authorised for issue by the Trustees and signed on their behalf by:

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

Mr T Amies

Date: 4 March 2024

The notes on pages 15 to 31 form part of these financial statements.

Page 13

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in 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		 2023
£
224,985
(3,256)
(3,256)
(76,370)
(76,370)
145,359
259,889
405,248		 2022
£
139,557
(2,964)
(2,964)
(85,148)
(85,148)
51,445
208,444
259,889

The notes on pages 15 to 31 form part of these financial statements

Page 14

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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 donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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.

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DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

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.

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DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

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 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.

2.8 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.

2.9 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.

2.10 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.

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DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2. Accounting policies (continued)

2.11 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.

2.12 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. Critical accounting estimates and areas of judgment

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates, but these are unlikely to be material.

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
46,551
Total 2022
5,312		 Restricted
funds
2023
£
10,574
10,669		 Total
funds
2023
£
57,125
15,981		 Total
funds
2022
£
15,981

Page 18

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

5. Income from charitable activities

Unrestricted
funds
2023
£
Heritage School income
2,383,298
Total 2022
2,171,863		 Total
funds
2023
£
2,383,298
2,171,863		 Total
funds
2022
£
2,171,863

6. Other incoming resources

Royalties received
Coronavirus Job Retention Scheme and similar income
Other income
Total 2022		 Unrestricted
funds
2023
£
1,249
-
-
1,249
2,739		 Total
funds
2023
£
1,249
-
-
1,249
2,739		 Total
funds
2022
£
394
2,145
200
2,739

Page 19

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2023
£
Heritage Community Association (HCA) costs
1,371
Total 2022
350		 Restricted
funds
2023
£
5,669
-		 Total
funds
2023
£
7,040
350		 Total
funds
2022
£
350

8. Analysis of grants

Amazing Grace School, Uganda
Total 2022		 Grants to
Institutions
2023
£
887
604		 Total
funds
2023
£
887
604		 Total
funds
2022
£
604

9. Analysis of expenditure by charitable activities

Heritage School direct costs
Total 2022		 Activities
undertaken
directly
2023
£
1,523,717
1,392,699		 Grant
funding of
activities
2023
£
887
604		 Support
costs
2023
£
779,394
699,356		 Total
funds
2023
£
2,303,998
2,092,659		 Total
funds
2022
£
2,092,659

Page 20

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

9. Analysis of expenditure by charitable activities (continued)

Analysis of direct costs

Staff costs
Heritage School direct costs
Depreciation
Application of bursaries		 Activities
2023
£
1,294,674
73,120
131,012
24,911
1,523,717		 Total
funds
2023
£
1,294,674
73,120
131,012
24,911
1,523,717		 Total
funds
2022
£
1,219,913
75,699
97,087
-
1,392,699

Analysis of support costs

Staff costs
Recruitment and training
Property
Administration
Marketing
Audit
Professional fees
Finance costs
Compliance and inspections
Loss on disposal
Total 2022		 Activities
2023
£
289,962
11,660
121,234
95,192
14,832
9,657
565
231,605
4,065
622
779,394
699,356		 Total
funds
2023
£
289,962
11,660
121,234
95,192
14,832
9,657
565
231,605
4,065
622
779,394
699,356		 Total
funds
2022
£
280,971
8,744
74,455
82,297
8,953
7,845
1,638
230,122
4,331
-
699,356

Page 21

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 July 2023, no Trustee expenses have been incurred (2022 - £NIL).

11. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £5,795 ( 2022 - £4,705 ) , and an accounts preparation fee of £3,862 (2022 - £3,140).

12. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
1,245,757
104,871
234,008
1,584,636		 2022
£
1,178,737
95,603
226,544
1,500,884

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

Teaching staff
Administrative staff		 2023
No.
46
12
58		 2022
No.
44
14
58

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

The remuneration received by key management personnel was £129,545 (2022 - £137,137). In addition they received employer pension contributions to their pension schemes of £22,774 (2022 - £26,087). The key management personnel for the purpose of this disclosure are the Headmaster, Deputy Headmistress and the Bursar.

Page 22

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

13. Tangible fixed assets

Cost or valuation
At 1 August 2022
Additions
Disposals
At 31 July 2023
Depreciation
At 1 August 2022
Charge for the year
On disposals
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022		 Freehold
property
£
6,913,207
-
-
6,913,207
174,048
69,137
-
243,185
6,670,022
6,739,159		 Motor
vehicles
£
25,949
-
-
25,949
24,852
274
-
25,126
823
1,097		 Fixtures and
fittings
£
40,229
3,256
(419)
43,066
35,622
2,749
(209)
38,162
4,904
4,607		 Computer
equipment
£
18,413
-
(549)
17,864
16,536
960
(137)
17,359
505
1,877		 Total
£
6,997,798
3,256
(968)
7,000,086
251,058
73,120
(346)
323,832
6,676,254
6,746,740

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

2023 2022
£ £
Finished goods and goods for resale 12,222 11,988

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DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

15. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments
Tax recoverable		 2023
£
27,963
2,712
33,651
7,500
71,826		 2022
£
7,849
1,783
44,852
-
54,484

16. Creditors: Amounts falling due within one year

Bank loan
Other loans
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
91,962
1,313
33,203
7,165
55,194
188,837		 2022
£
88,602
1,276
21,294
5,892
17,996
135,060

Page 24

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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

Bank loans
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		 2023
£
4,298,858
1,500,000
5,798,858
2023
£
96,145
302,641
3,900,072
1,500,000		 2022
£
4,390,820
1,500,000
5,890,820
2022
£
91,962
298,411
4,000,447
1,500,000

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		 2023
£
3,900,072
1,500,000
5,400,072		 2022
£
4,000,447
1,500,000
5,500,447

During the year ended 31 July 2021 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 ended 31 July 2021: - Two loans were taken out on similar terms, one for £450,000 and one for £50,000 which are to be repaid after 7 years. These loans are subject to 3% interest per annum. On the settlement of these loans, an independent valuation of 17-19 Brookside (Cambridge, CB2 1JE) will be carried out, and the charity will pay the lenders 23% and 2.60% (respectively) of any increase in the market value of the property over £4,835,000 less any 'capital expenditure on improvements'. The repayments are subject to a maximum amount equal to the original loan plus 7% compounded interest per annum.

Page 25

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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

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

2023 2022
£ £
Financial assets
Financial assets measured at fair value through income and expenditure 405,248 259,889

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

Page 26

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

19. Statement of funds

Statement of funds - current year

Balance at 1
August 2022
£
Unrestricted funds
General fund
1,013,804
Restricted funds
Restricted funds - other
4,776
Amazing Grace School,
Uganda
887
Bursary fund
22,588
Commemoration fund
2,500
Fixed asset fund
2,666
33,417
Total of funds
1,047,221		 Income
£
2,431,098
5,763
488
2,323
2,000
-
10,574
2,441,672		 Expenditure
£
(2,278,133)
(7,107)
(887)
(24,911)
-
-
(32,905)
(2,311,038)		 Transfers
in/out
£
Balance at
31 July 2023
£
5,568
1,172,337
(2,902)
530
-
488
-
-
-
4,500
(2,666)
-
(5,568)
5,518
-
1,177,855		 Transfers
in/out
£
Balance at
31 July 2023
£
5,568
1,172,337
(2,902)
530
-
488
-
-
-
4,500
(2,666)
-
(5,568)
5,518
-
1,177,855
530
488
-
4,500
-
5,518
1,177,855

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.

Bursary fund

Bursaries are awarded to pupils who, it is believed, will gain most from a Heritage education and will contribute fully to the life of the school. Bursaries are awarded on a sliding scale up to a maximum of 75%, with emphasis on ensuring a broad distribution, so that as many families can benefit as possible.

Commemoration fund

The Commemoration fund was established in the year ended 31 July 2022 and is to be used for any activities that celebrate the people, history, or key events in the school's life. The aim of this fund is for such activities not to place a burden on the operational funding of the school.

Fixed asset fund

The fixed aset fund represents monies which were given towards the purchase of a piano for Panton Hall.

Page 27

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General fund
Restricted funds
Restricted funds - other
Amazing Grace School, Uganda
Commemoration fund
Total of funds		 Balance at
1 August
2021
£
924,316
24,639
692
-
25,331
949,647		 Income
£
2,179,914
7,196
973
2,500
10,669
2,190,583		 Expenditure
£
(2,090,426)
(1,805)
(778)
-
(2,583)
(2,093,009)		 Balance at
31 July 2022
£
1,013,804
30,030
887
2,500
33,417
1,047,221

20. Summary of funds

Summary of funds - current year

Balance at 1
August 2022
£
General funds
1,013,804
Restricted funds
33,417
1,047,221		 Income
£
2,431,098
10,574
2,441,672		 Expenditure
£
(2,278,133)
(32,905)
(2,311,038)		 Transfers
in/out
£
Balance at
31 July 2023
£
5,568
1,172,337
(5,568)
5,518
-
1,177,855		 Transfers
in/out
£
Balance at
31 July 2023
£
5,568
1,172,337
(5,568)
5,518
-
1,177,855
1,177,855

Page 28

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

20. Summary of funds (continued)

Summary of funds - prior year

Balance at Balance at
1 August Balance at
2021 Income Expenditure 31 July 2022
£ £ £ £
General funds 924,316 2,179,914 (2,090,426) 1,013,804
Restricted funds 25,331 10,669 (2,583) 33,417
949,647 2,190,583 (2,093,009) 1,047,221
Analysis of net assets between funds
Analysis of net assets between funds - current year
Unrestricted Restricted Total
funds funds funds
2023 2023 2023
£ £ £
Tangible fixed assets 6,676,254 - 6,676,254
Current assets 483,778 5,518 489,296
Creditors due within one year (188,837) - (188,837)
Creditors due in more than one year (5,798,858) - (5,798,858)
Total 1,172,337 5,518 1,177,855
Analysis of net assets between funds - prior year
Unrestricted Restricted Total
funds funds funds
2022 2022 2022
£ £ £
Tangible fixed assets 6,746,740 - 6,746,740
Current assets 292,944 33,417 326,361
Creditors due within one year (135,060) - (135,060)
Creditors due in more than one year (5,890,820) - (5,890,820)
Total 1,013,804 33,417 1,047,221

21. Analysis of net assets between funds

Page 29

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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
Loss on the disposal of fixed assets
Decrease/(increase) in stocks
Increase in debtors
Increase/(decrease) 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
2022
£
Cash at bank and in hand
259,889
Debt due within 1 year
(89,878)
Debt due after 1 year
(5,890,820)
(5,720,809)		 2023
£
130,634
73,120
622
(234)
(17,342)
38,185
224,985
2023
£
405,248
405,248
Cash flows
£
145,359
(3,397)
91,962
233,924		 2022
£
97,574
75,699
-
192
(27,797)
(6,111)
139,557
2022
£
259,889
259,889
At 31 July
2023
£
405,248
(93,275)
(5,798,858)
(5,486,885)

Page 30

DocuSign Envelope ID: EA95AB32-7CF9-4A09-86A2-774BC84DA989

CHILD LIGHT LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

25. Related party transactions

Related party transactions not disclosed elsewhere in the financial statements are as follows:

The company secretary, who is also the headmaster, and his wife are employees of the school. The salaries and any benefits to which they are entitled are on terms no more favourable than those of any other employee.

During the year, the charity received no unrestricted donations (2022 - same) and restricted donations totalling £4,300 (2022 - £2,000) from three (2022- 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 35 (2022 – 33). The total employer contributions paid to this fund during the current year were £213,262 (2022 -£209,105).

The total employer contributions paid to the DCS fund during the current year were £20,746 (2022 - £17,439).

As at the balance sheet date, no contributions were (2022 - £Nil was) payable by the charity.

Page 31