Regislered number. 03166207 Charity number". 1053810 PACT EDUCATIONAL TRUST LIMITED TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 •Alv8v￿5. 0810112022 #51 PACT EDUCATIONAL TRUST LIMITED CONTENTS Page Reference and administrative details of the company. its Trustees and advls•rs Trustees. report 2-11 Independent •uditoe$ report on the financlal ststements 12-15 Statement ol Ilnanclal aclivilles 16 Balance sheet 17 StatemMt of cash flo 18 Notes to the financial statements 19-37 PACT EDUCATIONAL TRUST UMITED REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 Twstees D. Guillon. ExecLrtJve Chair P J Leonard. De￿ Chair A F G Alb"ng Von Geusau. Chayrnan Finance Committee X 8osch Iresigned 1 November 20201 M Bollore lapp(xnted 15 January 2021) A P Newman-sanders (Te5igned 23 December 20201 M L Newman-sanders M P S Stables P Millington S Cassidy H TNst (res￿ned 22 December 2020) J Valero C¢bmpany registered umber 03166207 Charity registered number 1053810 Reglstered office Oakwood Sthool Coombe Road Lloyd Park Croydon CRO 5RD Company secretary 8 Millington Chlef executlve officer 8 Millinglon Independent auditor 81ick Rothenberg Audit LLP Chartered AecrMJntants StstLrtory Auditor 16 Great Queen Street Covenl Garden London I•IC2B SAH Bankers Bardays Bank PLC Marcham Road Aknngdon Oxlord5hire OX14 1UB Headteachers C Candia D Morrison L Sanders lofThe Lajrels sd￿)01. a separate legal errtty managed by PAcfJ R Teague PACT EDUCATIONAL TRUST UVITED TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The trustees, are also directors, P￿sent their annual report for the ￿aT ended 31 August 2021 under the Charities Aet 2011 including the Directors, and Strategic Repwis under the Companies Act 2006 together wlh the audited finanaal slalements for the year. The accounts ccfflply Financial Reply￿n9 Standard Apt4icable in the UK and Republic of Ireland IFRS 1021. th all statLrtory requirements and the Tequirements of the charitrfs govemiry dctumenl and the provision5 of the Statement of Recommendeil Practice (SORPI applicable to charib"e5 pTeparirvJ their accounts in accordance wth the Finanual Reporting Standard app*Cab￿ in the UK and Republic of Irdand (FRS 1021 {effèctive 1 January 20151. The Board of Trustees is pleased the performance of the charrty during the year and the position at 31 August 2021. The Tiustees consider that Ihe tharty is in a Strong posrthin lo continue ils activitses during the coming year, and that the ¢hanty$ assets and available financial faulrties are adequ*e to fulfil its obligations. Otyectlve5 and actlvltles . Mi55ion statement The central aim of our schts)Is Is the developnent of the person as a vthole. A unique approach to learning and develt¥￿errt of the student allow5 for academic excelknce". we want to ereate an environment that promotes a lifelong passron for leaming". In any activity, be it CUTnculum or extra ¢urTiculum, the sludenl is encouraged lo piath.ce g¢)od habi(s, that lead lo a life of virtue. thu5 achieving personal matunty and inner freedom., There is no one size that frts all. Thanks to the tut(￿0[ syslem, we make sure each student receives personalized attention and care to guide the young person academically and personally. We want the pa￿nIS to te the first and prinopal educators of their chikIr￿. As schools. we support them in their most important missi￿. i.e. helping their chitdren beccthe tr* ￿$1 version of themselves. The very name of our Charty refled5 this." parents and teathefs together for the good of the children. Our value syslem is r(￿le0 in a Chrisban understanding of the human person. That being said. we value religKJUS freedom and wekorne parents and students of all f￿thS or none, vkno subscribe to our general Vision. The ¢)bjects of PACT are Ihe advancement of education and the development of character in accordance with Christs'an Principles and tdeals in particular through the pro￿￿On arKI Mainten￿Ce of schools. Our &thilosophy re¢ognises parents as the primwy educators of their children and is the ￿MerStOne of our approath. We pursue academic and personal excellence for all pu￿lS but this is not just measured in lesl results and statistics. Our goal remains assisbng each pupil lo attain excellence tx)th academically and in per50n31 development in pa￿"tu￿￿r in the acquigbon of Christian Virtues. We do this wtthin the frammrk of supP￿ti¥e Catholic ethos. PACT EDUCATIQNAL TRUST UMITED TRUSTEES. REPORT {CONTINUED) FOR ThE YEAR ENDED 31 AUGUST2021 Oblectlves and activities Icontlnued) b. Maln objectives for the year Our key obj'ectives for the yearto 31 A￿￿$t 2021 in￿ded.. Implementation of new estales strategy across 3 sthools to iellect growng pupil numbers. The Cedars and The Laurels are operating from a new srte in SE19 from September 2021. Whilst the schools will remain single sex Ihey will benefrt from the collaboralion that wll be possible from co- location. Academi¢ year 2020r21 saw the development of the school ￿lIding. With The Cedars Sch¢)01 moving from Lloyd Park an opportunity arose for Oakwotsa to move to a larger srte giwng il greater rM)ssibilrtJ"es in lem)s of faal(b"es available. Again 2020121 saw the conversion of the buildings from a Sec4wdary School to a building suitsble for a Prep School lo operate from. Closure of Oliver House School due to a change in l(K4 demographics resulting In lower than sustainable pup'l numbers. Whilst the dosure of OINer House a th"ffiCU￿ deCi￿On to make the aim was lo support our parents and staff as much a5 POSStAe during Ihis penod and also bring a5 rnany acr05S to the new Oakwood srte as pos5ible- around 1S students and 5 members ofstaff moved across. Continue lo excel academicalty and so attracl inrJeased numbe￿ to our 6th form programme. In￿aSe our atx'lity to offer tr*Jrsaries lo deserving students via a sponsorship programme. Buildingon the levels of academic excellence already achieved. Securing financiThJ and donatsons necessary lo further devel￿ all our SGhools. PACT EDUCAnONAL TRUST UMITED TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDEO 31 AUGUST 2021 ObJKtl¥es and activities {continu•dl c. Strategles for achlevlng obhectlves The trustees are ￿SpOnSible ￿ planning (and monrtoring pro9￿$S) so as lo achieve the obiecfives they have 5eL Ensuring that all pupils have the opwrtunrty to reah5e their full potential and have the test preparation for their next stage of schoolirKJ, continues to L*nderpin the cknjeth.ves of PACT. The schools aim lo provide a first- el8ss all-rouThJ eduealion to children t*￿een the ages of 3 3rKI 18. As well as an excellent academic education, the scho￿5 provide pupils v*ilh a range of extracurricular acb"¥ib"es induding drama. music and sport. Each schwl's aim F5 to devdop the vthde thild through the care. guidance and support of all staff members and .Ihe building of close links in a three•Way par1nership bett￿n the sch¢x4, the pupil and parents. PACT encourages pupils to explore. diseover and develop their pa￿'cUlar skills and talent5 to the lull whether In the academic field, 5POrt. art or music arKI lo find the ￿￿lment and self-esteem necessary lo enhance their live5. The schools aim lo devel¢)p the values of resped and compasson whibe encouragin9 sem-reliance and independence. PACT prepare5 pupils lor life in the *ider worfd by deVelo￿ng them as well-rounded individuals, comfortat4e bvilh their peers, elders arHI themsefves. able to appr￿ate their talents, eagei lo realise their tential and confident in meetiTrJ challenges. The oty"ectives and the progress of the thanty and schoo15 to meet them are subject to rewting and monitoring at 8oafd and Executive Committee meets"ngs. and through specafic academic and ethos committees. PACT'S unique partnershipwlh-paren15 educats.on modd a150 brings regular feedback to Head5 and governo￿. In implementing our strategy we have.. Undertaken a market anatysis study for each school to ascertain vthere il sits in its market, *d)ere il can improve, what the future prospects are for eath school and re-acted according to this plan. In addits'on to the above a full finamal study has been made of eath Khool. not just for the immediate future but looking at the Prospects of the schoc4s over the f¢￿￿￿1ng 10 ￿arS and ensuring we have a realists"c plan against which to hold our5el¥es. Continued a discipline(l approach to we*ing P(Aicies arwj Statulrxy Requyemenls $0 th81 the schools remain c(ynplianl. Sought to benefit the wblic through the imFlementatth of the Chari￿$ stated aims.. the fees for each of the schools are set at a level to ensure financ￿ viability wthile allthmng the charity to pursue its strategy. We have conts.nued lo firKI wivale sponsorships to support us in our aims to make our schod5 reachable desprte fin8nu81 cireumstsnces of families. AJI expenditure dur￿￿ the year has been incurred lo enhan￿ the pers￿￿1$ed education of chibjren and their characaer development to athieve the oty"ects"ve5 Set cth above. d. DI￿ounts PACT has a discount policy. It is im￿an1 to PACT Ihal a￿$$ lo the education offered by its schools is not restricted to those who can afford the fees. Bursaries a￿ means lesteLI lo ensure that fina￿131 help is provided lo those families %thich need it. To give praclica suppryt to the value PACT places on continuity for families, PACT also operates a family discount policy. In addition lo this the Secondary schods offer Academic. MU￿C. Art & Sporting Scholarship5 for those who excer. It is often impc¥tant for parents ho￿ng to send thw"r thildren to a PACT S￿￿ that they are able to spread thwr fees payments across the temi and so a rAan is in F4ace for lemily fees to be taken in instalments auoss 3 months. In order that PACT can wrurt and retsin high calitKe staff. PACT offers a discount schwne for 5tsff Ihat choose to educale Iheir children al any of PAcfs schools. PACT EDUCATIONAL TRUST UA•TED TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Objectlves and actlvllles Icontinuedl e. Volunteer& Enc￿lage1 by PACT'S wm lo owate rts sthools in pather￿mp wih the pa￿nts of each thild. PACT continues to be assisted in rts work by a large number of parent vdunleers. Of the 12 governorfs serving during the year, four are parent volunteefs. arKI an additional 1 used lo be in recent years. Vc4unleers perform a range of tasks helping the schools to *rJrk toward5 Ihe aims of the charity including 5UFptyting dass teacher5 and leaching as5iStanls on offsile excurshins arKI running extraTdance wlh Christs'an prinuples. Despite the ecwmic uncertainty we face as a result of the cu￿ent heallh srtuation. OUT schools continue to grow in terms of student numbers_ We have hO￿EVer seen the olher ￿de of this with Oliver House pupil numbers dropping, the underslanding is that COVID the final factor that drove pupil numbers down and the ￿001 could no longer be financialty supported. The Board is not C￿n[laCe￿I and V•ryll continue to monitor maikel activitses so we can react and ensure the Khools surwive this period of un￿rtainty. Public benefil PACT'5 otsectives are set to refiect the educalicywl wms and ethos of the schools. In setting our objectives and planning our activities our trustee5 have given carefijl consideration lo the Charty Commission's general guidance on publ￿ benefit and in parncular to the guidance ￿ advanung education and on feEYharging. The trustees have compfied V￿th their duty to have due regard lo the guidarKe on public benefit published by the Charity Commission in exerusing thwr p￿e[S arKI duties. Based on the average slated cost to the taxpayer lof £6,280 per pupill, of providiThJ educabon in the maintained schoc4 sector, PACT estimates that those parents who choose lo send their children to PACT schods are ecrtnbubng to a saving fty taxpayers generally. 8nd thus cre81ing an annual benefft to the wblic of over £3.3 million. Financial review a. Going ¢oncem The board of trustees confirms that, hawng considered rts expectati￿S and intentions for Ihe nexl twelve months and the avablability ol Wofking ca￿￿1, the tharty is a goin9 con￿rn. The sale of Oliver House. which completed in October 2021, wll allow us 10 5UPPOrt the txjsiness through Ihe next few years until we can reach an operational breakeven wnt. The trustees are Unawa￿ of any events, ¢￿￿rt￿5, or related t¥J5iness risks beyond the peric#l of assessment thai may cast ygnffieant dwbt on the chaWs atslity lo c￿ntinUe as a going concern. In making this assessment the truslees have wn5idered the wcKking caprtal requirements of Ihe business for a period of at least 12 monlhs from the date of the approval of Ihese financial statements and the ability of the Charity to meet rts liaLy'lities as they fall due. The Trustees have prepared forecasts and consKrfered future development plans for the charity, in¢￿￿e anb'cipated from school fees and olher sources. anticipated capital and operational eXperKlitU￿, availabilrty of bank and other loan finance. the ats'lity lo rw+egotiate or defer payments ￿ loan fin￿e. and their expecth.on regarding dOnati￿S and other funding. PACT EDUCATIONAL TRUST LIMITED TRUSTEES. REPORT (CONTINUED) FOR ThE YEAR ENDED 31 AUGUST 2021 Flnancial revSew (continued) b. Reserves policy TIE trustees have revre*td the Reserves Policy. The chanty ¢￿tinueS to nvest substsntial sums into its buildings and for the provisicffl of educational equipment. The majority of fijnds are invested in the tsngible fixed asset properties. The Iruslees conb"nLte lo be satssfied that exlemal financial faolities pro￿de an addilional and adeql￿te safety net. rf rt should be requred. To ensure the financial stah'lity of the schools. Ihe trustees believe that. as a minimum. reserves shwld be held ich are capable of pawng for the running costs ol all PACT sthools for one term and Iherefore are aiming to build cash reserve5 Out of fvlu￿ surpluses lo a level of approximately £1 million. All expenditure during the year has been incurred lo enh￿e the per51￿311$ed educabon of chikjren and their character development lo achieve the objectives set above. c. Principal funding The charitys primary source of fijnds is school fees from parents. alth￿gh funding 1$ receNed in donations from private indivitluals. Fun(Jing from school fees is used to supp)rt the charity in its primary day to day operalions vthilsl the use of d￿atiOn funding is determined by the Vlryshes of the indiwduol donors Ivknere SFwfic wshes are exwessed) or in a wider scope of ac*"vitses **there no detwls a￿ given by ihe ¢Jot)or. d. Financlal revlew of the year including key perforni•nce indiutors Income fw Ihe yEar ended 31 August 2021 decreased lo £5.137,076 {2020." £S.485.9011 renecb.ng decreased pupil numbers. Expenses for the year ended 31 August 2021 increased to £5,538.128 12020." £5,475.984). This is partly attributable to inueased rental expense. The charity's net decxease in cash was £55.608. At 31 August 2021 the charity had net assets of £6,288.18212020'. £6.689,2341 comprising a surplus of £30,994 {2020'. surplus of £15.9941 of restncted funds and £6,257.18812020'. £6,673,240) of unrestricted funds. Included ¥Mthin unrestricled funds are l)alances relating to the revauation of proFety, lolaling £7,311,107 12020.. £7,311.1071. The Tru51ees continue to believe thal the key perfomance indicators are gro%*h in pupil numbers from year lo -.year.. Whilst Oliver House and The Cedars have_seen a decrease in numbers this is a pattem that Is C￿r￿n11Y seen across many Sth¢)ols in the London area ano Ihe UK as a Wkno￿. The wpil Nmbers at Oakwood have in fact increased by 5%. The charity's funds are held in current and interest-bearing Business Premiurn accounts. The Board of Trustees is satisfied that the charitys assets in each fvnd are available and adequate to fu￿1 its obligations in respect of eath fund. PACT EDUCATIONAL TRUST UMITED TRUSTEES. REPORT (Co￿riNUED) FOR THE YEAR ENDED 31 AUGUST 2021 Structure. governance and management Conslllutlon The company is constituted under a Memc*andum of AssocIatic￿ dated 29 Febnjary 1996 and has a registered harity number 1053810. PACT Edu¢*ional Trust Lirnited is a chaTrtable company limrted by guarantee. The charity is also known as PACT. The trustees are directors of the company and govemors of the schools and the temis are used lnterchangea￿Y in this report unless speafic reference is made. PACT operates in accordance its Memorandum and Arb"cle5 of A5socialKJll dated 29th February 1996 as amended on 21st November 2CK17. There were four schools under the PACT group umbrella. The preparatory schools- oakWo￿ in Purfey. Surrey IOWI and Oliver House {OH) in Clapham, London- leach children aged 3- 11 years. Oliver House sd￿01 ceased to trade on 31 August 2021. b. Governance and Management The governance structure ol the schods is designed to ensure the financial ststs'lity and future success 01 the Prepar￿Ory schods and the newer seeorKlary schools. The board f￿Se6 on: fundraising., governan￿,. long-term strategy", and safeguarding and compliance. The Board of goVern￿S ol PACT meets at least c￿Ce a term to.. review. discuss and approve policie5 for eath schod" develop strategic plans". oversee the raising of knds for the development of PACT and its schods.. review and enhance govemance pro￿Se$". deal with the appointment of PACT t>oard membets.. approve the annual PACT budgel and caplal investment plans. are approved by the finance eommittee vthich is a subcommittee of the k*)ard" WKI approve senior appointments. The Exeujtive Char is ￿ of the ¥c4￿teerIng gover￿rS. He ensures the Board works effectively on its mission. He designs a dear long-lerm strategy. with gr￿￿h prospects that are supported by adequate funding and an aligned eslale strategy. As suth he is the liaison between PACT and rts member5, 115 donors, and the various slakeholder5. He ensures all members in the organisation share the same vison and work lo support it. He has fvll re5pon5ibilty over the strategy and Ihe cyerational management. 7hith eXCept￿n to the appoinlmw* of new Heads that requires a vote by the Board. He also serves as the direct link belween management and the Board. and is leading the transition PACT vrdnls to achieve wthin this period, moving lo a model of 5cht)Jls nurturing ck)se c¢)operatton vthilst keeping their dislincl idenlitses. vthereby modem and adequate facilrties will support the quality of education we want to achieve. As and vthen needed, the Executive Chair will provide guidance so that operational management is implementing the strategic plans. and conversely any Icfflg-term plan is rooted in the reality of the schools and their competitive enwronmenl. He is also invofved in negotiating large contracts, building projects, overseeing architectural design, management of the work, management of Ihe ￿tractorS, making sure all requirements of Str￿01$ are properly mel wthin *ll mainti•ned f￿libe$. Dawd Guillon has been appointed as Executive Ch•r in April 2020. Each PACT sch￿1 has an Executive C¢ynmillee meeting h4f-lermty. c¢)nysting of the CEO. relevant school DI￿10r, Head-Teacher and thwr Sen￿r Management Team ISMT). These support the Heads in their demanding jobs. with the day-ltrday running of the sthools being delegated to them and their SMT. PACT EDUCATIONAL TRUST UMITED TRUSTEES. REPORT ICONTINUEOI FOR THE YEAR ENDED 31 AUGUST 2021 structure. governance and managernenl (coTrtinuedl b. Governance and management Icontlnued) Additionally, the board convene5 a Finance Committee to Fffovide oversHJhl of the chartys finance5. A director, currently Alexander Alting von GeLFSaU, chairs the commrttee and Is joined by another board member with finanoal eXpe￿'se. the Chair and the CEO. It is convened al leasl once a lemi and meets more frequenlly when needed, espeoally in the fuTrup to weparing and finalising the bLMJgeL The day-lo-day management of the chaiity is deleg*d to the Chief Execubve Officer. Mrs Bemadette Millington currendy fills that roje and was apwnted by the b)ard in July 2018. She is addtti'onalty charged wth implemenb'ng the twstees, long-temi strategic plan and wsion for the schools. She V•Y)rks closely wlh the heads of the schools and their senior management leams. Wrffking together, Ihe heads arKI CEO.. manage the PACT budget for each s¢hiy)l on a mcnth-by-month ba515". appoint staff", deal with those matters affecling staff where the Head5 have wht as&stsnee,' and deal with al on-going pracbcal issues and deosion makn.ng which is rKrt of a Strategic nature. Addilionaly. be&des managing the central fina￿ office. the CEO WOVKles leadership in the following day- day operational management funth"ons". Estates", Human Resources.. Informatson Technc40gy: and Marketing. Our primary 5chod5 are membeT5 of Ihe IrKlependent Association of Preparatory Schools ￿lch provides an opportunity lo share expertise. kno%￿edge and experience across the independent school sector. Both senior schools are accredited rnembers of the Independent S¢hooFs As$ooali￿. The Cathdic Independent Sthool$' Conference also prowdes valuatle supwt to the Head$ of all four schfx4s. c. Oryanlsa￿Onal structure The chanty is govemed by the Board of govemors. who are also the company director5 and chanty trustees. and consists. for the period under ￿￿ew, of four sthools. Oakw)Jd Schoc4 in Purfey. Surrey, OINer House School in Clapham, London. The Cedar5 School in Scxrth Croydon. Surrey and The Laurels School in Chelsea, London. The beginning of academic year 2021r22 &iw all s(*K¥Js operating new. larger k¥emises. The Board of governors requires b￿adth and depth of experience in order to carry its dutses effectively and efficiently. When recruiting new trustees il is conwdered essential th* they have an understanding of and support for PACT'S specffj￿ educabonal elhos and a genuine enthusiasm to engage in an environment vthere character development and pers￿alISed education is of the utmost importance. Potential new trustees are identified during di5CU55ior15 of the Board and then an interview prcce55 15 pursued wih each candidate lo assess suitability. Reflecting on the sklls and expenence ne￿Sary for effedive govemartt and management. the govemors deem that the Board should at a minimum the follvhiThJ.' one governor with a finanoal or accounting background.. one wth education experience", another with senior management or business experien￿. one for each sthool, eath ¥￿th dired knowledge ofthor speofic school. All ihe directors of the company are also trustee5 of the chanty. and their responsibilities include 811 the respongbilits'es of directors under the Companies Ads and of trustees L￿der the ChanTr"es Acts. PACT EDUCATIONAL TRUST UMITED TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENOED 31 AUGUST 2021 Structure. governance and managemenl {￿ntinued) d. Policles adopted for the Inducllon and tralnlng of Tntstees New governors are prowded v4ith a comprehensive pack setb.ng out the ots'ects of the charity, its polictes and procedures, rts annual accounts and olher relevant materials. They are trained through discussions long standing existsng govemoTS. members of the Sen1￿ management teams at each of the schools and through the very open discussions held dvring Board an¢J Execufive Cornmrtlee meeb"ngs. Governors are expected to regularly dedicate time lo th￿r d￿leS as a member of the Board. e. Ri51[ management The Board of governors is ￿S￿￿$1￿e for the managem￿1 of risks faced by the scho)Is. Detailed consbderation of risks is delegated to the CEO and SenR)r Management Teams in each school. Risks are idenlrfied and assessed, and controls estaL4ished thrwghout the year. A fcymal rwew of the charitys risk management proce55e5 15 undertaken on a bi-annu* baws and in response to immediate risks %thich may arise. This monitoring process looks at the effectiveness of the system of intemal controls and other viable means of avoiding risk and assists the governNs to pui in FAace insurance cover wtreTe appropriate. It is Tecognised that systems can onty proV￿e reasonable Ixrt not absohjte assurance that major risks have been adequately managed. stalemvnt of Trust•es' responsibilities The Trustees Iwtho are also the directors of the cchnpany for the purposes of compary lawl are ￿sp￿sIble for eparing the Trustees. rewt and the finanoal ststements in accordance with applicable law and United Kingdom Accounting Stsndards (Unrted Kingdom Generalty Accepted Accountsng Practice). Company law requires the Trustees to prepare financial slatemenls for ea¢h financial year. Under company law, the Trustees musl not approve the financial statements unless Ihey are satisfied that they give a true and fair view of the slate of affairs of the c￿npanY and of its inccming resources and a￿lcatIon of resources, induding its income and expenditure, for that period. In weparing these financial statements. the Trustees are required lo.. select suitable accc4Jnting F*Jlicies and then ar* Ihem consistenlly." observe the methods and princip4es of the Charitie5 SORP (FRS 1021", make judgments and accounting estimates Ihal are reasonable and prudent.. stste vknether apFAicable UK Accounting Standards {FRS 1021 have been fcllowed, subject to any material departures disclosed and ewained in the finanaal statements.. prepare the finanual statements on the g￿ng cOr￿ern bass ￿e$S rt 15 Inappr¢¥￿ète to presume that the company ￿11 conts.nue in bJ5ine5S. The Trustees are responsible for keeprng a(Jequate accounting recc*ts that are suffiuent to show and explain the company's transactions and disclose v•th reasonable accuracy at any time the finanoal p051tion of the company and enable them to ensure that the financial sfatements compty Iwth the Companies Act 20C6. They are also responsible for safeguarding the assets of Ihe company and hen￿ for taking reasonable Steps for the prevention and delecbon of fvaud and other iffegularib'es. Dixlosure of Infomiation to auditor Each of the persons vtho are Trustees al the lime ￿ this Tnjslees. rep(yt is approved has confimied that.. so far as that Trustee 15 aware. there 15 no relevant inf0mlat￿n of the chariws aLKlilor is unaware. and that Trustee ha5 taken all the Steps that (Koht to have teen taken a5 a Trustee in order lo be aware of any relevant auth"t infonnakn.on and to estailish thal the chan.tys auditor is aware of that infomation. 10- PACT EDUCAT1014AL TRUST UMITED TRUSTEES. REPORT (copmNUEO) FOR THE YEAR ENDED 31 AUGUST 2021 The Report of the Governo￿, wepared under the Charibes Act 2011 and the Companies Act 2006. was approved by the Govemin9 Body of PACT Education￿ Trust Limtted. irKauding in their capacty as company dlrecloTS approving the Dire¢lors' and Strategic Rewts contained thevein. and is signed a$ authorbsed on its behalf ty" D G Gulllon Tnjstee Dat•: PACT EDUCATIONAL TRUST UMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITEO FOR THE YEAR ENDED 31 AUGUST 2021 Oplnlon We have audited the financial slatemenls of PACT Educaticnal Trust Lirniled {the 'charilable company'l for the year ended 31 August 2021 thich comprise the statement of finan￿al activibes, the balance sheet, the statement of cash nows and the related notes, including a summary of significant accounting policies. The rinanci81 rep)rting frarne￿ that has been applietl in their prepara11￿ 1$ appli￿ble law and Uniled lQ'ngdom Accountrng Standard5, Ir￿uding Financial Reporb"ng Stsndard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. (Unrted ￿.￿gdoM Genernlty Accepted A¢cwnbr4J Practice). In our O￿nIOn the finanu81 statements" give a true and fair ￿eW of the state of the charrtable companvs affairs as at 31 August 2021 and of rts Incoming resources and apFAicat"on of resources. rfuding ts income and expendrtwe for the year then ended., have been PToperty wep¥ed in aeeordance wth Uniled Kingd¢yn Generalty Accepted Accounting Practice," and have been prepared in accordance V4ith the re(wirements ofthe Companie5 Act 2006. Basls for oplnion We conducted our audit in acc(wdance *rth Intemational Standards on Auditing (UK) IISA5 (UK)) and applicable law. Our responsibilities under those stsndards are further de5Crited in the Auditor's re5ponsibililies for the audit of the financial slalements sects'on of our rern Vve are independent of the charrtable company in accordance th the ethical requirements that are relevant to our audrt of the finanaal statements in the Unrted Kingdom, induding the Financial Reporbng Councils Ethical Standard. and we have fvifilled our other ethical responsibilth'es in accordance Kmth these requirements. We believe thal the audit e￿dence we have obtained is sufficient appropriate to provide a basis fty ow Conclusions relating to going concern In audib'ng the finanaal statem￿. we have c(ffKluded that the TTUStees' use of the gThng concem bas15 of accounting in the Prepar*1￿ of the fmancial stalemenls is approwwte. Base(l on the ¥4Drk we have pWI(￿e0. we have identif￿￿ ary material uneertwnlies relab.ng to events OT conditic￿$ th*, indiwdually or cc4lectivety. may cast signrficanl doubt on the charrtable companls ability to - continue.as a going-concem" fty a peric*J of-at least. N*El¥e months .from when the financial.slalemenls are aulhofised for issue. Our responsits'lits"es the resp¢Jnsibililies of the Trustees *ith resperl to g(xng concern are deS￿bed in the relevant sections of this report. 12- PACT EDUCATIONAL TRUST upifTED INDEPENDENT AV(XTOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST UMITED (CONTINUED FOR THE YEAR ENOED 31 AUGUST 2021 Other infomiation The Tru51ees 3re responsible for the other Inf￿at1(￿. The other inf(Kmation cofflwtses the inforniation included in the annual rewt. other than the financial statements and our audrtorfs report Ihereon. Our opinion on the financial ststements does not cover the other informab.on and. except to the extent otherwse expliutly slated in our report, we do nol expres5 any form of assurance conclusion thereon. In conneclion Vlith our autht of the finanaal ststements. responsily'lty is to read the other informab'on and, in doing so. consider ¥*hether the other inlormation is materially incon&stent wlh the finanual statements OT our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such materi81 inconsistencies or apparent material misstalemenls. we are required to deterrnine wthether there is a malerial misstatement in the finanoal statements or a maten"* mtsstalemenl of the other infomiab'on. If, based on the work we have performed. we eondude that there 15 a Materi￿ misstatement of this other Informatson. we are required to Tewl that lad. We have nothing to ￿P(￿l in this regaid. Oplnion on other mattets prescrfbed by the Companies Act 2006 In our opinion, based on the work undertaken in the cowse ol the audrt" the Informati￿ given in the TfUStees' Report for the finanual Jvr for the financial statements are epare¢J is congslent the finanoal ststements. Ihe directors. rewt induded vthhin the Trustee5' ￿￿*￿t has been prepared ￿ accordance wlh applicabje legal requirements. Matters on which we are required lo report by exception In the light of our knowledge and understanding of the charrtable company and ils environment obtained in the ccNJrse of the audit, we have not idenbfied material misstatements in the Trustees, Rep(wt. We have nothing to report in respect of the follwrvJ matters in relation to ￿1¢h C￿panIeS Act 2006 requires us to ￿pOrt lo you if, in our opinion.. adequate accounting records have not been kept. or retums adequate for tsjr audit have not been received from branches not wsrted by us." or the financial slalemenls are not in agreement with the accounting rec(Kds and relums,. or certain di￿l05ureS of Trustees. remunerati￿ speofied by law are not made,. or we have not receNed all the infomiation aTrJ expEanab"ons we require for wr audit. Responsibilities of trustees As explaine¢Y more fully in the Intslees. resp￿s11￿"11l￿ stalement, the Trustees {*ho a￿ also the diredors of the charitable c¢mpany frm the purposes of ec*npany lawl are reswngble for the preparation of the financial ststements and for being satisfied that they give a true and fair wew. and for such intemal ¢(￿trol as the Trustees determine is necessary to enable the preparation of financial sfatemenls that are free from material misstatemenl. whether due lo fraud or error. In preparing the finanual stalements. Ihe Trustees are responsible for assessing the charitable company's ability lo contsnue as a going concem, ¢Jisdos4ng, as applICa￿e. matters related to going concem and using the going eoncem basis of accounting unles5 the TnJstees erthw intend lo I￿￿date the charil8ble company or la cease operation5. or have no realistic ahernative but lo do so. 13- PACT EDUCATIONAL TRUST UMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED ICONTIIIUED) FOR THE YEAR ENDED 31 AUGUST 2021 Auditor's re5ponslbllltles for th• audit of the financial statements Our obj'ectives are to obtain reasonable assLwarKe about *l)ether the fin￿claI st*ements as a whole are free from material misstalemenl. v*helher due to ftau(l or eThor, and to Issue an audilorfs report that includes our o￿nion. Reasonable assurance is a hi9h level of assurance, is not a guarantee that an audit conducted in accordance with ISA5 (UK) will afrloys detect a material misslatement when rt e¥i515. Mi551atements can arise frorn fraud or error and are considered material rf, indiMdually or in the agg￿gate. they ccAJld reasonabfy be expected to influence the econom¢ deugMs of user5 taken on the basi5 of these finanoal statements. Irregularities, induding fraud. are instances of non-comF4iance Vlith laws arKI regulations. We design procedures In line with our responsits'l￿e$, oullined above. to deteet rnateri￿ misststemenls in respect of irregularities, including fraud. The extent to vthi¢h our ryocedure5 are capable of dete¢tirwJ lryegular￿es, induding fraud is detailed below". the engagement partner ensured that the engagement team Col￿tIve1Y had the appropriate competence, capabilits.es and skills to idenlty or recogni5e non-compliance v*th applicable laws and regulations., we idents.fied the law5 arKI regulab"on5 a￿lca￿e to the charity through discussions tru51ees arKI other management, and from our commeroal knothlge and experience of the tharity". we focuse¢J on speufic and regulats'ons vthich we considerecl may have a direct material effect ￿ the financial statements or the operations of the charity. induding the Charities Ad 2011. the Companies Act 21]06, laxabon legI￿a￿"On and data yotecb"on, safeguarding. empk>yment and health and safety legislation.. we assessed the extent of compliance wlh the laws aTrJ regulab.ons Idents"fied above through making enquiries of management", and identif*d laws and regulations were communicated the audbt team regulady and the team remained alert lo instances of non-CC4nF4iance throughout the audit. We assessed the susceptibility of Ihe chantys ffinanci￿ statements to material misststement, including cl)taining an understandiny of how fraud mighl occur. by.. making enquiries of management as to ¥the￿ they cOn￿dered there was suscepb"bilty to fraud, their knovAedge of actual, suspected and alleged fraud". and eonsidering the intemal controls in place to mitigate risks of fr￿d and nonvc0mpli￿¢e wth laws and regulations. To address the risk of fraKI through management bia$ and override of controls. we.. performed analytical wocedures to identity any unusual ¢y unexppcted relationship5. tested a sample ofjoumal entries to identfy unusual transacb"ons". and investigated the raknonale behi￿1 ggnificant or U￿SUal transacIiry￿. In reswnse to the risk of irTegularrtie5 8T￿ rnn-compliance 7hith law5 and regulab"(￿s. we designed procedures ich induded. tr￿t V•Ere not limited to". agreeing finanaal Statement di5dosures lo underf￿"ng 5upporb.ng documerrtatm￿". reading the minutes of meetings of Ilwe charged V*ryth oovemance," and enquiring of management as to actual and potential litigation and daims. There are inherenl limitab¢)ns in our audit procethjfes descrthd above. The more removed that laws and regulations are from financial transath'ons, the less likdy rt is that V*E ￿￿Uld become aVr￿￿ of non-compliance. Audrting StandaTt1s also limit the audrt prtxedures required to identify non•compliance law5 and regulation5 to enquiry ol the direct￿$ and other management and the inspectifm of regulatory and legal correspondence. if any. 14- PACT EOUCATIONAL TRUST UMfTED INDEPENDENT AUDITOR'S REPORT TO ThE MEM8ERS OF PACT EDUCATIONAL TRUST LIMITEO (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Auditorfs responsibilities ft*r the audit of the flnan¢lal statements Icontinuèdl Material misstatements thal arise due lo fra￿1 be harder to delect than those that arise from error as they may irbvolve deliber*e concealment or collu*on. A fvrther descript￿ of cMJr respJn%bilrties ftr the audit ol the financial ststements is located on the Financial Reporting Council's ¥￿tsSI1e at". vAYw.frc. .ukJaudrtOTsres nsilx"lrtie& This desuiplion feAms part of our auditorfs report. Use of our report This rewt is made solety lo the charitable ccfftpanys membws, as a trtxly. in accordance wth Chapter 3 of Part 16 of the Companies Act 20rA. Our 8udrt V•Drt has bew undertaken so that we might slate lo the Charitable companvs members those matter5 we are required to stsle lo them in a) auditor's ￿pOrt and for no oiher PU￿05e. To the fullest extent permrtted by law. we do not accept or assthne responsibility lo anyone other than the charrtable company and rts members, as a I￿Y. for cwr audit for this ￿￿rt. or lor the opinions we have formed. Mark Hart FCA CTA (senior statutory audllor) for and on behalf of Bliek Rothenbery Audlt LLP Chartered Accounlanls Slalutory Auditor 16 Great Queen Street Covent Garden London WC28 SAH 23 Oecember 2021 15- PACT EDUCATIONAL TRUST UMITED STATEMENT OF FINANCIAL ACTivmES IINCORPORAnNG INCOME ANO EXPENDITURE ACCOUNT) FOR THE YEAR ENOEO 31 AUGUST 2021 Reslricted UnreslrfctÈd funds funds 2021 2021 Totsl lund$ 2021 Tolal funds 2020 Note Income from: Donation5 and legac*s Charitable aetiwties Other trading aetivitses 15,000 255.587 4.866.573 (841 270.587 4.866.573 {84) 418.704 S.(￿6.972 Totsl In¢t)me Expendbture on: Charrtable aCti￿lIeS 15.OlXI 5.122.076 5.137.076 5.485.676 5.538.128 5.538,128 5,475,984 Total expenditure 5.538.128 5.538,128 5,475,984 Net movement in funds 1S.000 1416.OS21 1401.0521 9,692 Reconciliation of funds: Total funds brwghl forward Net movement In fvnds 15.994 15,000 6,673.240 (416,0521 6,689,234 1401,0521 6.679,542 9,692 Total funds carried for￿Id 30,994 6,257.188 6.288.182 6.689,234 The Statement af Financial ACtI￿lIeS indudes all gains losses recogntsed in the year. The notes on pages 19 to 37 fomi part of these fina￿al statements. 16- REGISTERED NUMBER: 03166207 PACT EDUCATIONAL TRUST LIMITED (A company Ilrnlted by guardnt¢*l BALANCE SHEET FOR THE YEAR ENOED 31 AUGUST 2021 2021 2020 Note Flxad 888èts Tangible assets Inveslments 14A03,909 11,831.957 750,001 14?03,910 12.581.958 Curr•nt as$•ts Stocks Debto Cash at bank and in hand 57.702 1.147,509 139,961 31,361 1.513,102 195,569 10 1,34S,172 1,740.032 Creditors.. amounts falling duè Wilhin year 11 14,543,733) 12,048,434> N•t ¢urr•nt li•bllitles (3,198,581) (308,4021 Totsl assets less ¢uvr¢nt Il•blll¢les 11,105,349 12,273,556 creilrto￿.' aff￿u￿ts falling due after nwe than one year 12 14,817,167) {5,584.3221 Net assets excludlng penslon xset 6,288.1B2 6,689.234 Total nèt assets 6.288.182 6.689.234 Charlty fvnd8 Restricted funds Unrestricled fvnd$ 14 30,994 15,994 General funds Revaluation ￿seNe 14 (1,053.#19 7,311,107 {637.86n 7,311,107 Totsl ￿restI[¢ted fijnds 14 6,257,188 6.673,240 Tolal funds 6,288,182 6,689.234 The finan¢ial statements were apwoved and authorised for issue by the Tn￿teeS and swjned on theiT behalf by: D G GulHon Tnjstee Date.. 17- PACT EDUCATIONAL TRUST LIMITEO STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Nole Cash flows from operatlng athltles Net cash used ￿ operating activities 17 1.115.275 62.636 Cash IIow5 from investirtg actfvltles Purchase of tangible fixe41 assets 12.628.778) 1126,3551 Net cash used in investing actlvltles 12.628.778) 1126.3551 Cash kn from financing actmtles Repayments of borro￿n9 Cash inflows from new borrowng 1935.5071 2.393.402 1221,7451 300,000 Net cash provlded by flnanclng aclivllies 1.457.895 78.2SS Change in c•5h and cash equivalents In the year Cash and cash equivalenls al the beginning ol the year 155,608) 195,569 14.536 181,033 Cash and cash equlvalents at th• end of th? year 18 139,961 195.569 The notes on pages 19 10 37 fcffm part ofthese financial statements 18- PACT EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accountlng policles 1.1 Basis of preparntlon of financial statements The finanaal ststements have been prepared in accordance with Accounts'ng and Reporting by Charrties". SLitemenl of Recommended Pracbce applicable to charrties preparing their accounts in accordance vkn the Financlal Repjrb'ng standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20151- (Charrties SORP {FRS102I1. the Finanoal Reporb'ng Stsndard sp￿IcatIe in the UK and Rewblic of Ireland IFRS 1021 and the Companies Act 2008. PACT Educab"onal Trust Limited meets Ihe definTbon of a public benefft entity under FRS 102. Assets and lia￿.1111e5 are inilialty ￿¢¢£niSed al historical cost or transaction value unless Other￿1$e slateil in the releV￿t accounting The tharitys fiJncli(mal and preswtslional euroncy is Sterling 1£). 1.2 Company status The company is a company h'mited by guarantee and is iru)rporated in England and Wales. The members of the company are the Trustees named on page 1. In the event of the ccvnpany bang wound up, the liab.lity in ￿SPect of the guarantee is limrted lo £1 per member of the company. The address of the regislered office and the place of business is The Cedars School, Ccombe Road, Croydon. CRO 5RD. 1.3 Golng concern The t*)ard of trustees Confirms that. hawng considered tts expectations and intentions for the next elve months the ayailabilty of vh)rking capitsl, the charity is a going ¢on¢em. Followng the wnpact of COV1[￿19 on Ihe trJJsine$s the Irustees undertty* a thorough review of the schools wthin the group and a$ a resutt of this took ath'on lo erwre the schools could enjoy a stable financial Yulure. The unfortunate OLrtcome of this was the Closu￿ of OINer House School which was seen lo have ggnfficanl operab'onal issues 7ht could not resolve. On the final ￿mple[lOn of Oliver House and Oakwood site assets the overall cost of estates will be greatly reduce(I whilst also providing for gr¢)vAh fcy eath of the schools_ Finanual c￿trOl$ continue to be strong wlhin the trust and are regularty reviewed so as to ensure changes are implemented as and when required. As a resuft of these steps the trustees fed they a￿ p￿pared for the next fy¥elve months. The Iruslees are unaware of any events. COnd￿.0ns. or reLgled business risks beyond the period of assessment that may cast sgnfficanl doubt on the charty's ability to contsnue as a going concem. The Trustees have yepared fwecasts and cOnS￿ered future development plans for the charity, income anticipated from school fees and olheT sources, antiapaled CaF4lal and operational expenditure, availabilty of bank and other loan finaru, the atslity to renegotiate or defer payTnents on loan finance, and their exped8lion regarding donats.ons and other fvnding. In making this assessment the trustees have considered the capital requirements ol the business for a perityj of at least 12 m(￿thS from Ihe date of the approval of these finanryal statements and the ability of the charity lo meet its liab'libes as they fall due. Accordingly, they continue lo adopt the going concem basis in ￿ring the finanual slatements. 19- PACT EDUCATIONAL TRUST UNITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting policies (continued) 1A Fund accounting General funds are unresthded knds ¥thith are available for use at the disc￿￿￿ of the Trustee5 in furtherance of the weral obj'ecbves of the ¢￿panY and have not been designated for other purposes. Restricted funds are funds ththich are to be used n accordance wth specffic restriclions imposed by dwors or whtch have keen raised by the company for particular purposes. The costs of raising and administering such ftjnds are charged against the specrfK fund. The aim ￿ use of each restricted fun(J is set out in the notes lo Ihe finanoal stalemenl$. lts Income All income is ￿¢0￿nised once the cL%npany has entiltement to the incorne. il is kyobable that the income wll be rewved and the amount of income ￿C￿vable can be measured reliably. Grants are I[￿Uded in the st*ement of financial actr￿lieS on a r￿e4¥able basrs. The balance of income rec•ved ftx specific purposes not expended during the period is shovm in the relevant funrjs on the balance sheet. lOthe￿ income is recwved in advance of entrtlement of receipt, ils recognition is deferred and included in c￿ditty$ as deferred in￿rne. Where enliuemenl occurs before income is receNed, Ihe income is Income tsx recoverable in ￿l¥1'0n to dmabons received under Grfi Aid or deeds of covenanl is recc#Jnised al the bme of the ￿3t￿. Fees recwvable and charges for semces and use of Premises are acc￿￿nted for in the period in which the sep¥ice is wovided. Fees receNatye are stated after deducb'ng allowances, scholarships and other remissions granled by the school_ Fees received in advance of educalirffj being provided are held as deferred income *Aithin liatrxlities unknl erther taken to I￿orne in the academic year to whith It relates or refvnded. 1.6 Expenditure Expenditure Is fecognised ￿ce Ihere is a legal or constructive otshgation to transfer economic benefrt to a third party. rt is probable Ihat a transfer of economic benefrts ￿11 be required in settlement and the am¢Junt of the obligatim can be measured reliaL4y. ExFerttliture 1$ dassrfied by athvty. The costs of each activrty are made up of the lolal of dired costs and shared costs. induding support costs invo5ved in undertaking eath actr¥ity. Direct costs attn'bulable to a single activity are allocated directly to that actiwty. Shared costs which contribute lo more than one activity and support costs which are not 8ttr1buta￿e to a single activity are appOrt￿ned befv￿en those activities on a bags ¢onsislenl with the use of resources. Central staff cost5 are alkKated on the basis of tsrne spent, aTrJ depreciats'on tharges allocated on the portion of the asseys use. Cosls of generating funds are costs Ir￿TTed in attracting vduntary income. and those incurred in trading activities that raise fvnds. CharIta￿e activ￿e5 and Govemance costs ¥e costs in￿rred on the eompanls educational operations, induding supwrt costs and costs rdab.ng to the govemarte of the company apportioned to actsvitses. All expenditure is indusive of iffecoveraljle VAT. -20- PACT EDUCATIONAL TrUST UMITEO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting poll¢les Icontlnued) 1.7 Tanglble fixed assets and depreciation All assets c05ting more than £500 are capitali5ed. A re¥iew for impairment of a fixed asset is Carried out if events or Char￿e$ in circumstances indicate that the carryng value of any fixed asset may ncrt be reco¥efable. Stk)rtfalls between the carrying value of fixed asset and th￿r recOveralk￿ amounts are fecognised as impaim)ents. lrnpairment losses are recognised in the Statement of financial activities. Tangible fixed assets are carried at C05t OT valuab"on. net of depreciation and any provision for impairment. Depreciatson is not charged on freehdd land. DepTea8ts"on Is provided al rates calculated to write off the cost or valuation of fixed assets. les5 their estsmate5 residual value. over their expected usefvl lives on the fOll￿1r￿j basis." Freehc4d property Long-temi leaseh¢)kl propety Motor vehides Fixtures and fith'ngs Computef equipment 2% straight line 4% straight line 25% straight line 10% straight line 25% straighl line 1.8 Investments Fixed asset investrnents are a fonn of financial instrument and are initially reco9nised al their transacts'on cosl and subsequenty measured * fair value at the balance sheet dale, unless the value nnot be measured reliably in *thich case it Is measured at cost less impairrnent. Investment gains and k>sses. %thether realised or unrealised. are comtx.ned and presented a5 'GainsllLossesl on investments, in the ststement of finanaal actiwties. 1.9 Government grants Government grants receNed in respect of furlwgh claims are credited to the statement of financial activities as the related expendilure is incurred. Other grants are credited to the statement of financial activil*s as the rel*ed expenditure is incurr&J and disclosed as other income. 1.10 Taxation The company is Considered lo pass the lesls sel out in Paragraph 1 Schedule 6 01 the Finance Act 2010 and the￿lOre rt meets the definition of a charilatrAe company f￿ UK c¢yporation tax purposes. Accordingty. Ihe company is polentialty exernpt from laxats.on in resF*tt of income or capital gains received vmhin categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxats"on of ChargealAe Gains Act 1992. to the extent that such income oi gains are applied exdugvely lo charilaL4e p￿￿oSeS. 21 PACT EDUCATIONAL TRUST UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting poll¢ies l¢onlinued 1.11 Flnancial instruments The c￿nPary onty has financial as5e15 and finanual Ioly'lth'es of a kind that qualify as bayc financial instruments. Basic finanoal instruments are inrtialty rec(tynised al transaction value and subsequently meagjred at their seluement value ¥￿th the exception of bank loans are subsequently measured at amortised cost using the effedNe Inte￿$t method. The charity has elected to Sedions 11 and 12 of FRS 102 in respecl of finaneial inslrumenl& Financ￿ assets and ffinan￿￿ l￿bIl￿"eS are recognised ￿en the tharity beC￿ne$ party lo the eontractual provision5 of the instrument. Financial liat41itses and equrty instruments are das>fied according to the substance of the effitraclual arrangements entered into. An equity instwmenl is any contsct that ewdence5 a iesidual interest in the assets of the charity after deducts.ng all of rts liats"1￿.eS. Flnanclal assets Ba￿C finonual assets. induding trade and olher debtors and cash and bank balances are initially recogniseil * transaction price. unless the arrangement con5tstutes a financing transaction, where thè transath.on is measured at the present vatue of the fu[U￿ receipts diseounted at a market rale of intefest for a gmilar debt instrument. Financing tTansath"ons are those in vthich payment is deferred beyond nonnal bJ&ness terms or is financed at a rate of inleresl that is not a market rate. Such assets are subsequenljy carried at arno￿"5ed cost ￿￿n9 the effective interest melhod, less any wnpaimient. other finanoal assets. induding investments in equrty instruments which are not subsidiaries are initially measured al fair value. *thich is normalty Ihe transath.on price wthich exdudes transaction costs for Ihose financial assels that a￿ subsequerfy measured al fair value through profil and loss. Financlal Ilabllrties Basic finanual liabrftties. induding trade and other crethtors and bank and olher loans are inf(ially recognised at transath'on w¢e. unless the arrangement con$blLrtes a finanong transaction, where the ¢Jebt instrument is measured at Ihe present v4ue of the ftrture payTnents discounted al a matl¢el rate of Interest for a %milar debt Instrument. Financing transa¢lws are those in which pawnenl is deferred beyond nomal busine￿ temis or is financed al a r*e of interest that is not a market rate. Debt instruments are subsequently carried al arno￿"5ed cost. using the effeclNe intere51 rale method. Concesgonary loans Concessionary loans are iniknalty recorded at the considerati.on received and are subsequently held at amortised cost based on the implied interest rate of the loan. -22- PACT EDUCATIONAL TRUST UMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accountlng policies (continued) 1.12 Pensions The company cperates a definetl Contritxrtw pengon seheme and the pension tharge represents the amounts payable by the crynpany to the fvnd in respect of the year. Retirement beneffts to le8thing staff of the tharity are Prov￿ by the Teachers. Pension Scheme rTPS'). This Is a defined benefft scheme and the assets are held separately from those ol the academy. The TPS is an wfunded ￿heme and cOnth'tr￿lI1￿ are ￿￿ated so as to skyead the cost of pensions over employees, working lives 7ATrth the charrty in such a way that the pension cost is 8ubstantsally level percentage of current aTh* futu￿ pengonable payroll. The contrilxJli¢)ns a determined by the Govemment Acluary on the basis of quadrennol valuations using a prospective unil credit method. The TPS is a mu￿-em￿oYer Scheme antj there is insuffiryenl information available to use defined benefrt scheme accounts"n9. The TPS is theiefore treated as a defined contnbution scheme for aeeountsng purposes and the contriblit￿S pay4)le a￿ recognised in the period to wthich they relate. 1.13 Parenlal deposlts Parents pay a deposit on accewng a place ts their chrld and this money is retumed subject lo offset of oulslanding costs after their child leaves the 5cknol. Parentsl depJsrt5 are included in creditors and have been applied assuming that pupils remain in the sdKx>I until eornpletion of their final year. Income from donations and legacies Restricted Unrestricted funds funds 2021 2021 Totsl funds 2021 Tolal funds 2020 Donations Govemmenl grants 15.000 189,310 66,277 204,310 66,277 32.927 385,777 15.000 255,587 270.587 418,704 Tolal 2020 16,775 401.929 418.704 23- PACT EDUCATIONAL TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Income from charitable activiiies Unrestricted funds 2021 Tolal funds 2021 Total funds 2020 Educab"on 4.866.573 4.866.573 5.066,972 Totsl 2020 S.￿,972 5,066,972 FundrJlsing income Incorne Irom fundralslng ¢vents Unrestricted funds 2021 Total funds 2021 Total funds 2020 Fundraising 1841 184 Analysis of expendilure ty activities Artivilies undertaken directly 2021 Total funds 2021 Total funds 2020 Educats"on 5.538.128 5,538.128 5.475,984 Total 2020 5,475,984 5.475,984 -24- PACT EDUCATIONAL TRUST LlkWTED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Anatysis of expenditure by activilies Icontlnued) Analysis of dirKt costs Total funds 2021 Total funds 2020 Educatlon 2021 Staff costs Deyecialion Finance cost Scholaslic supplies Canteen costs Trips and travel Marteling. PR and advertising Stsff related expenditu Property C0515 General and administrative costs Legal and professional fees Insurance Loss on disposal of fixed assets Fundraising Governance costs 3.885.973 156.826 125.935 97.379 226.099 25.320 22.325 27,815 3.885,973 156.826 125.935 97.379 226.099 2S.320 22.325 27.815 3.884,904 155,261 163,662 106.933 169,652 21,344 16.082 56.267 iii 615.402 237.890 12.561 82.150 61S.402 237.890 12.561 82.150 491,636 243,637 27,283 72,164 44,948 156 22,297 156 22.297 22,213 5.538.128 5,538.128 5,475,984 Total 2020 5.475,984 5.475,984 Staff costs 2021 2￿0 Wages and salaries Social securty cosls Conlribution to defIT￿ c(rtriiMJtion pension schemes 3,118.744 291,931 475,298 3,093.574 299.858 491.472 3,885,973 3,884,904 -25- PACT EDUCATIONAL TRUST UWTED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 AUGUST 2021 Staff costs l¢onUnued) The average number of persons em￿oyed by the comwy during the year was as follows.. 2021 No. 2020 No. Teaching Ncfi teaching 67 75 26 29 93 The number of employees vthose ern￿oyee ￿efits lexdu(*'ng employer pensiw costs) exceeded £60.000 was: 2021 No. 2020 No. In the band £60,001- £70.000 In the band £70,001 - £80,000 In the band £90,001 - £100.000 The key management personnel of tr* charity comprise the trustees and the senior management team as listed on page 1. The lotsl amwnt of ern￿Oyee benefils lincluoI Limrted sU￿lease payments Management fees 174.000 174,000 (common directors and trustees) 39. 63.193 (104.1271 11.172.475) Loan 750,000 1.107.000 The loan$ fr￿ Trustees are Secured by fixed charge5 over the charity'5 properb"es. 24. Post balance sheel events Subsequenl lo the yeai erKI. the charity s(Id a freehold property Proceeds of £10,IX)O,000. The proceeds were used lo repay bank and other h)ans tolalling £3.670,000. 26. Controlllng party The board of trustees is the controlling paty. -37-