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2023-08-31-accounts

Registered number: 03166207 Charity number: 1053810

PACT EDUCATIONAL TRUST LIMITED (A company limited by guarantee) TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

PACT EDUCATIONAL TRUST LIMITED

CONTENTS

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 11
Trustees' responsibilities statement 12
Independent auditor's report on the financial statements 13 - 16
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20 - 37

PACT EDUCATIONAL TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees A Forastier Guerrero (appointed 15 November 2022)
M Kemp, Chair (appointed 19 March 2023)
L Arrufat Farell (appointed 15 November 2022)
P Pastor Quintana (appointed 8 February 2023)
R Sierra Salcines (appointed 23 February 2023)
D G Guillon (resigned 30 October 2022)
M Kemp (appointed 28 October 2022, resigned 11 November 2022)
R M L Kummelstedt (appointed 30 October 2022, resigned 16 March 2023)
P J Leonard (resigned 13 March 2023)
A M C Millington (resigned 30 October 2022)
P D Millington (resigned 14 March 2023)
Company registered
number
03166207
Charity registered
number
1053810
Registered office
The Cedars School
Coombe Road
Croydon
CR0 5RD
Chief executive officer
A Forastier Guerrero
Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants
16 Great Queen Street
Covent Garden
London
WC2B 5AH
Bankers
Barclays Bank Plc
Marcham Road
Abingdon
Oxfordshire
OX14 1UB
Headteachers
L Sanders
D Rose

Page 1

PACT EDUCATIONAL TRUST LIMITED

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees, who are also directors under Company Law, present their annual report for the year ended 31 August 2023 under the Charities Act 2011 including the Directors’ and Strategic Reports under the Companies Act 2006 together with the audited financial statements for the year.

The accounts comply with Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), with all statutory requirements and the requirements of the charity’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 (FRS 102) (effective 1 January 2019).

The Trustees are satisfied with the performance of the charity during the year and the position at 31 August 2023 given this has been a year of significant transition. The Trustees consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets and available financial facilities are adequate to fulfil its obligations.

Objectives and activities

a. Mission statement

The central aim of our schools is the development of the person as a whole.

The objects of PACT are the advancement of education and the development of character in accordance with Christian principles and ideals in particular through the provision and maintenance of schools.

Our philosophy recognises parents as the primary educators of their children and this is the cornerstone of our approach. We pursue academic and personal excellence for all pupils but this is not just measured in test results and statistics. Our goal remains assisting each pupil to attain excellence both academically and in personal development in particular in the acquisition of Christian virtues. We do this within the framework of a supportive Catholic ethos.

Page 2

PACT EDUCATIONAL TRUST LIMITED

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

Objectives and activities (continued)

b. Main objectives for the year

Our key objectives for the year to 31 August 2023 included:

c. Activities undertaken to achieve objectives

The trustees are responsible for planning (and monitoring progress) so as to achieve the objectives they have set. Ensuring that all pupils have the opportunity to realise their full potential and have the best preparation for their next stage of schooling, continues to underpin the objectives of PACT. The schools aim to provide a firstclass all-round education to children between the ages of 4 and 18. As well as an excellent academic education, the schools provide pupils with a range of extracurricular activities including drama, music and sport.

Each school’s aim is to develop the whole child through the care, guidance and support of all staff members and the building of close links in a three-way partnership between the school, the pupil and parents. PACT encourages pupils to explore, discover and develop their particular skills and talents to the full whether in the academic field, sport, art or music and to find the fulfilment and self-esteem necessary to enhance their lives. The schools aim to develop the values of respect and compassion while encouraging self-reliance and independence. PACT prepares pupils for life in the wider world by developing them as well-rounded individuals, comfortable with their peers, elders and themselves, able to appreciate their talents, eager to realise their potential and confident in meeting new challenges.

The objectives and the progress of the charity and schools to meet them are subject to reporting and monitoring at Board and Executive Committee meetings, and through specific academic and ethos committees. PACT’s unique partnership-with-parents education model also brings regular feedback to Heads and governors.

Page 3

PACT EDUCATIONAL TRUST LIMITED

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

Objectives and activities (continued)

In implementing our strategy we have:

d. Discounts

PACT has a discount policy. It is important to PACT that access to the education offered by its schools is not restricted to those who can afford the fees. Bursaries are means tested to ensure that financial help is provided to those families which need it. To give practical support to the value PACT places on continuity for families, PACT also operates a family discount policy.

In addition to this the secondary schools offer Academic, Music, Art & Sporting Scholarships for those who excel.

In order that PACT can recruit and retain high calibre staff, PACT offers a discount scheme for staff that choose to educate their children at any of PACT’s schools.

e. Volunteers

Encouraged by PACT’s aim to operate its schools in partnership with the parents of each child, PACT continues to be assisted in its work by a large number of parent volunteers. Volunteers perform a range of tasks helping the schools to work towards the aims of the charity including supporting class teachers and teaching assistants on offsite excursions and running extra-curricular sessions on particular areas of interest. The Parental Activity Teams in each school run various activities throughout the school year including family barbecues, family fun days, the parents’ dinner and Quiz night, as well as supporting the school by providing refreshments on various school occasions. They also fundraise to support school projects and other charities. Volunteer class coordinators also help the Heads arrange class discussions throughout the year.

Page 4

PACT EDUCATIONAL TRUST LIMITED

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

Achievements and performance

a. Academic

In the latest report available, Oakwood improved to reach 21st place in The Times Top 100 Preparatory Schools with excellent academic results. The ranking is testament to the academic achievement of the school, especially when taking into account this is a non selective school.

The Laurels saw 100% of A levels awarded a pass grade.

The Cedars also saw 100% of A levels awarded a pass grade and students achieving places at top Universities including Oxford University, the University of Navarre and Notre Dame University. 80% of students achieved their first choice university.

b. The Arts

A large proportion of pupils learn at least one musical instrument and are encouraged to perform at regular musical events. Choral singing, verse speaking, LAMDA and music exams and school dramatic productions continue to be an important part of the all-round education offered by the PACT schools, which also promote the children’s skills and general confidence. Peripatetic music teaching covers a variety of instruments, including brass, drums, cello, guitar, piano and violin. All children in Year 6 learn about harmonics through ukulele lessons and lower juniors take recorder lessons. Our Secondary schools have various choirs and orchestras.

c. Sport

PACT school sport is about participation, competitiveness and good sportsmanship and is an important part of a PACT all-round education. Pupils take part in a wide variety of sporting activities including football, rugby, netball, cricket, rounders, cross-country running, gymnastics, athletics, karate, fencing, swimming, squash, hockey and tennis. Competitions are arranged with local schools and The Cedars reputation in the sporting arena is known as being well above what would be expected for a small school.

d. Community service

PACT sees understanding charitable needs and fund raising for charities as an important part of developing the whole child and their sense of Christian mission and values, especially in acknowledging that there are people in the UK and all over the world who are less fortunate than the pupils themselves. While this is stressed throughout the year, there is a particular focus on charitable giving during Advent and through various Lenten appeals.

PACT regularly provides talks, workshops and other activities for parents, wider family and members of the community on issues connected with the development of character in accordance with Christian principles.

e. Public benefit

PACT’s objectives are set to reflect the educational aims and ethos of the schools. In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to the guidance on advancing education and on fee-charging. The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. Based on the average stated cost to the taxpayer (of £7,460 per pupil for 2023/24), of providing education in the maintained school sector, PACT estimates that those parents who choose to send their children to PACT schools are contributing to a saving for taxpayers generally, and thus creating an annual benefit to the public of over £3.9 million.

Page 5

PACT EDUCATIONAL TRUST LIMITED

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

Financial review

a. Going concern

The board of trustees confirms that, having considered its expectations and intentions for the next twelve months and the availability of working capital, the charity is a going concern. An embedded 10 year plan is in place and closely monitored. The trustees are unaware of any events, conditions, or related business risks beyond the period of assessment that may cast significant doubt on the charity’s ability to continue as a going concern.

In making this assessment the trustees have considered the working capital requirements of the business for a period of at least 12 months from the date of the approval of these financial statements and the ability of the charity to meet its liabilities as they fall due. The Trustees have prepared forecasts and considered future development plans for the charity, income anticipated from school fees and other sources, and anticipated capital and operational expenditure. In addition, the trustees have assessed the availability of bank and other loan finance including the ability to draw upon support from ProEduca Summa, SL as well as the ability to renegotiate or defer payments on existing loan finance, and their expectation regarding donations and other funding.

b. Reserves policy

The trustees have reviewed the Reserves Policy. The charity continues to invest substantial sums into its buildings and for the provision of educational equipment. The majority of funds are invested in the tangible fixed asset properties. The trustees continue to be satisfied that external financial facilities provide an additional and adequate safety net, if it should be required.

To ensure the financial stability of the schools, the trustees believe that, as a minimum, reserves should be held which are capable of paying for the running costs of all PACT schools for one term and therefore are aiming to build cash reserves out of future surpluses to a level of approximately £1 million. At 31 August 2023 PACT had net current liabilities of £(1,715,655) which is someway below the desired level. The Trustees are working to ensure the charity can move towards the desired level in the medium term.

All expenditure during the year has been incurred to enhance the personalised education of children and their character development to achieve the objectives set out above.

c. Principal funding

The charity's primary source of funds is school fees from parents, although funding is received in donations from private individuals. In September 2022, PACT and Spanish educational charity, Fundación Parentes (part of ProEduca Summa, SL), signed an agreement securing long term financial support to PACT schools, while preserving its academic and ethos current orientations. Funding from school fees is used to support the charity in its primary day to day operations whilst the use of donation funding is determined by the wishes of the individual donors (where specific wishes are expressed) or in a wider scope of activities where no details are given by the donor.

Page 6

PACT EDUCATIONAL TRUST LIMITED

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

d. Financial review of the year including ket performance indicators

The results as presented in the Statement of Financial Activities on page 16 show a full year of trading results for the 3 schools for the year ended 31 August 2023. However, the results as presented for the comparative period only include the results of The Laurels school from the hive up date of 30 April 2022 (4 months included therefore). Prior to that date, the results of The Laurels school were included within a separate entity, The Laurels School Limited.

Therefore, a year on year comparison between the results as presented is not meaningful. A more meaningful comparison of the underlying performance of the 3 schools year on year is as follows:

Income
Profit on disposal of properties
Total expenditure
Net movement in funds		 2023
2022
£
£
6,915,603
5,408,145
-
1,774,836
6,915,603
7,182,981
(8,701,288) (7,640,191)
(1,785,685)
(457,210)

Total expenditure in the current year has been significantly adversely impacted by the costs incurred in colocating the 3 schools. Redundancy costs during the year were approximately £600k and legal fees were approximately £100k. In addition, the depreciation charge was £160k higher than the previous year, reflecting the significant investment in the school’s assets.

At 31 August 2023, the company had net assets of £4,009,965 (2022: £5,795,650), comprising a surplus of £3,974 (2022: £30,994) of restricted funds and £4,005,991 (2022: £5,764,656) of unrestricted funds. The company’s net increase in cash was £106,911.

At 31 August 2023, the company had net assets of £4,009,965 (2022: £5,795,650) comprising a surplus of £3,974 (2022: £30,994) of restricted funds and £4,005,991 (2022: £5,764,656) of unrestricted funds.

The Trustees continue to believe that the key performance indicators are growth in pupil numbers from year to year. Each of the 3 schools have seen increased pupil numbers from the prior year as follows:

The Cedars – 261 pupils average (2022: 237) The Laurels - 105 pupils average (2022: 98) Oakwood - 159 pupils average (2022: 137)

The charity's funds are held in current and interest-bearing Business Premium accounts. The Board of Trustees is satisfied that the charity's assets in each fund are available and adequate to fulfil its obligation in respect of each fund.

Page 7

PACT EDUCATIONAL TRUST LIMITED

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

Structure, governance and management

a. Constitution

PACT Educational Trust Limited is a charitable company limited by guarantee. The charity is also known as PACT. The trustees are directors of the company and governors of the schools and the terms are used interchangeably in this report unless specific reference is made.

PACT has long operated in accordance with its Memorandum and Articles of Association dated 29th February 1996 as amended on 21st November 2007. Pursuant to Chapter 2 of Part 13 of Companies Act 2006, the directors of the Company approved a special resolution on June 22[nd] for the adoption of new Articles of Association of the Company, which were registered at Companies House on 12[th] July 2023,

PACT provides education through three schools under the PACT group umbrella. The preparatory school is Oakwood and teaches children aged 4-11 years. The two Secondary Schools are The Laurels and The Cedars. The Laurels teaches girls aged 11 – 18 and The Cedars teaches boys aged 11 – 18.

To enable a homogeneous 4-18 educational experience to pupils and facilitate logistics to parents, while maintaining distinctive premises, all three schools have been located into a single campus in Upper Norwood since September 2022. Naturally, we have equally simplified our formal structure with regards to the DfE from having three totally independent schools into two, while keeping all three distinctive schools’ educational traits.

Page 8

PACT EDUCATIONAL TRUST LIMITED

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

Structure, governance and management (continued)

b. Governance and management

The governance structure of the schools is designed to ensure the financial stability and future success of all three schools. The board focuses on:

The Board of governors of PACT meets at least once a term to:

During the period the PACT Board met 10 times, 6 in the form of “full sessions” featuring presentations and meeting minutes and 4 as meetings “without session” to vote on some decisions in an efficient way.

Each PACT school has an Executive Committee meeting at least once a term, consisting of the ProEduca Senior Delegate, relevant school Director, Head-Teacher and their Senior Management Team (SMT). These support the Heads in their demanding jobs, with the day-to-day running of the schools being delegated to them and their SMT.

Additionally, the board has a dedicated trustee, Mr. Adrian Forastier, focused on the oversight of the charity’s finances.

The day-to-day financial management of the charity is delegated to a PACT Bursar. An experienced professional consultant has temporarily filled that role until the appointment of a permanent bursar in December 2023. The Bursar is also responsible for supporting the ProEduca Senior Delegate in the implementation the trustees’ long-term strategic plan and vision for the schools.

The ProEduca Senior Delegate works closely with the heads of the schools and their senior management teams. Working together, the Heads and ProEduca Senior Delegate:

Additionally, besides managing the central finance office, the ProEduca Senior Delegate provides leadership in the following day-to- day operational management functions:

Page 9

PACT EDUCATIONAL TRUST LIMITED

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

Structure, governance and management (continued)

Oakwood is a member of the Independent Association of Preparatory Schools which provides an opportunity to share expertise, knowledge and experience across the independent school sector. Both The Laurels and The Cedars are accredited members of the Independent Schools Association. The Catholic Independent Schools’ Conference also provides valuable support to the Heads of all three schools.

c. Organisational structure and decision-making policies

The charity is governed by the Board of governors, who are also the company directors and charity trustees, and consists, for the period under review, of three schools, Oakwood School in Upper Norwood, Croydon, The Cedars School in Upper Norwood, Croydon and The Laurels School in Upper Norwood, Croydon.

The Board of governors requires breadth and depth of experience in order to carry out its duties effectively and efficiently. When recruiting new trustees it is considered essential that they have an understanding of and support for PACT’s specific educational ethos and a genuine enthusiasm to engage in an environment where character development and personalised education is of the utmost importance. Potential new trustees are identified during discussions of the Board and then an interview process is pursued with each candidate to assess suitability.

Reflecting on the skills and experience necessary for effective governance and management, the governors deem that the Board should at a minimum comprise the following:

All the directors of the company are also trustees of the charity, and their responsibilities include all the responsibilities of directors under the Companies Acts and of trustees under the Charities Acts.

d. Policies adpoted for the induction and training of Trustees

New governors are provided with a comprehensive pack setting out the objects of the charity, its policies and procedures, its annual accounts and other relevant materials. They are trained through discussions with long standing existing governors, members of the senior management teams at each of the schools and through the very open discussions held during Board and Executive Committee meetings. Governors are expected to regularly dedicate time to their duties as a member of the Board.

e. Risk management

The Board of governors is responsible for the management of risks faced by the schools. Detailed consideration of risks is delegated to the Bursar and Senior Management Teams in each school. Risks are identified and assessed, and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on a bi-annual basis and in response to immediate risks which may arise. This monitoring process looks at the effectiveness of the system of internal controls and other viable means of avoiding risk and assists the governors to put in place insurance cover where appropriate. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Page 10

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PACT EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED FOR THE YEAR ENDED 31 AUGUST 2023

Opinion

We have audited the financial statements of PACT Educational Trust Limited (the 'charitable company') for the year ended 31 August 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

Page 13

PACT EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

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

Responsibilities of trustees

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

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

Page 14

PACT EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Auditor's 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 auditor's 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:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 15

PACT EDUCATIONAL TRUST LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PACT EDUCATIONAL TRUST LIMITED (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Auditor's responsibilities for the audit of the financial statements (continued)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Hart FCA CTA (senior statutory auditor)

for and on behalf of

Blick Rothenberg Audit LLP

Chartered Accountants Statutory Auditor 16 Great Queen Street Covent Garden London WC2B 5AH 28 May 2024

Page 16

PACT EDUCATIONAL TRUST LIMITED

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

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2023
£
15,000
-
-
15,000
42,020
42,020
(27,020)
30,994
(27,020)
3,974		 Unrestricted
funds
2023
£
4,691
6,895,912
-
6,900,603
8,659,268
8,659,268
(1,758,665)
5,764,656
(1,758,665)
4,005,991		 Total
funds
2023
£
19,691
6,895,912
-
6,915,603
8,701,288
8,701,288
(1,785,685)
5,795,650
(1,785,685)
4,009,965		 Total
funds
2022
£
11,995
4,925,464
1,774,836
6,712,295
7,204,827
7,204,827
(492,532)
6,288,182
(492,532)
5,795,650

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

The notes on pages 20 to 37 form part of these financial statements.

Page 17

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PACT EDUCATIONAL TRUST LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Purchase of investments
Cash acquired on acquisition of subsidiary
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash provided by/(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
21		 2023
£
(1,691,874)
-
(1,722,738)
-
-
(1,722,738)
3,876,007
(354,484)
3,521,523
106,911
121,640
228,551		 2022
£
(1,552,587)
13,000,000
(6,189,918)
(1)
459,087
7,269,168
339,889
(6,074,791)
(5,734,902)
(18,321)
139,961
121,640

The notes on pages 20 to 37 form part of these financial statements

Page 19

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

PACT EDUCATIONAL TRUST LIMITED

1. General information

PACT Educational Trust Limited is a company limited by guarantee and is incorporated in England and Wales. 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.

The address of the registered office and the principal place of business is The Cedars School, Coombe Road, Croydon, CR0 5RD.

The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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.

PACT Educational Trust 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 board of Trustees confirms that, having considered its expectations and intentions for the next twelve months and the availability of working capital, the charity is a going concern. Following the impact of COVID-19 on the business the trustees undertook a thorough review of the schools within the group and as a result of this took action to ensure the schools could enjoy a stable financial future. The unfortunate outcome of this was the closure of Oliver House School which was seen to have significant operational issues which we could not resolve. On the final completion of Oliver House and old Oakwood site assets the overall cost of estates will be greatly reduced whilst also providing for growth for each of the schools. Financial controls continue to be strong within the trust and are regularly reviewed so as to ensure changes are implemented as and when required. As a result of these steps the trustees feel they are prepared for the next twelve months. The trustees are unaware of any events, conditions, or related business risks beyond the period of assessment that may cast significant doubt on the charity’s ability to continue as a going concern.

The Trustees have prepared forecasts and considered future development plans for the charity, income anticipated from school fees and other sources, anticipated capital and operational expenditure, availability of bank and other loan finance, the ability to renegotiate or defer payments on loan finance, and their expectation regarding donations and other funding. During the year, the charity received a loan of €4.5 million from Fundacion Parentes.

In making this assessment the trustees have considered the working capital requirements of the business for a period of at least 12 months from the date of the approval of these financial statements and the ability of the charity to meet its liabilities as they fall due. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 20

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

PACT EDUCATIONAL TRUST LIMITED

2. Accounting policies (continued)

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.

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the school. Fees received in advance of education being provided are held as deferred income within liabilities until either taken to income in the academic year to which it relates or refunded

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.

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

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

All expenditure is inclusive of irrecoverable VAT.

Page 21

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

PACT EDUCATIONAL TRUST LIMITED

2. Accounting policies (continued)

2.6 Tangible fixed assets

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

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed asset and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

Tangible fixed assets are carried at cost or valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land.

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

Depreciation is provided on the following bases:

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 Stocks

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

2.9 Cash

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

2.10 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 22

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

PACT EDUCATIONAL TRUST LIMITED

2. Accounting policies (continued)

2.11 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.

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

The company’s policies for its major classes of financial assets and financial liabilities are set out below.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price, which excludes transaction costs for those financial assets that are subsequently measured at fair value through profit and loss.

Financial liabilities

Basic financial liabilities, including trade and other creditors and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Concessionary loans

Concessionary loans are initially recorded at the consideration received and are subsequently held at amortised cost based on the implied interest rate of the loan.

Page 23

PACT EDUCATIONAL TRUST LIMITED

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

2. Accounting policies (continued)

2.12 Pensions

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

Retirement benefits to teaching staff are provided by the Teachers' Pension Scheme ("TPS"). This is a defined benefit scheme and the assets are held separately from those of the charity.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit scheme accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions payable are recognised in the period to which they relate.

2.13 Parental deposits

Parents pay a deposit on accepting a place for their child and this money is returned subject to offset of outstanding costs after their child leaves the school. Parental deposits are included in creditors and have been applied assuming that pupils remain in the school until completion of their final year.

3. Income from donations and legacies

Donations
Total 2022		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
15,000
4,691
-
11,995		 Total
funds
2023
£
19,691
11,995		 Total
funds
2022
£
11,995

Page 24

PACT EDUCATIONAL TRUST LIMITED

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

4. Income from charitable activities

Education
Total 2022
5.
Other income

Profit on disposal of fixed assets
Total 2022		 Unrestricted
funds
2023
£
6,895,912
4,925,464
Unrestricted
funds
2023
£
-
1,774,836		 Total
funds
2023
£
6,895,912
4,925,464
Total
funds
2023
£
-
1,774,836		 Total
funds
2022
£
4,925,464
Total
funds
2022
£
1,774,836

6. Analysis of expenditure on charitable activities Summary by fund type

Education
Total 2022		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
42,020
8,659,268
-
7,204,827		 Total
2023
£
8,701,288
7,204,827		 Total
2022
£
7,204,827

Page 25

PACT EDUCATIONAL TRUST LIMITED

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

7. Analysis of expenditure by activities

Education
Total 2022
Analysis of direct costs
Staff costs
Depreciation and amortisation and loss on disposal of fixed
assets
Finance costs
Scholastic supplies
Canteen costs
Trips & travel
Marketing, PR & advertising
Staff related expenditure
Property costs
General and administrative costs
Legal and professional fees
Insurance
Charitable donations
Governance costs
Total 2022		 Activities
undertaken
directly
2023
£
8,701,288
7,204,827
Education
2023
£
5,211,108
302,075
496,736
241,699
487,060
403,575
45,441
17,208
768,539
405,978
116,650
173,065
-
32,154
8,701,288
7,204,827		 Total
funds
2023
£
8,701,288
7,204,827
Total
funds
2023
£
5,211,108
302,075
496,736
241,699
487,060
403,575
45,441
17,208
768,539
405,978
116,650
173,065
-
32,154
8,701,288
7,204,827		 Total
funds
2022
£
7,204,827
Total
funds
2022
£
3,469,434
1,351,742
317,797
134,187
289,334
257,229
22,891
17,469
590,225
300,457
306,086
122,581
108
25,287
7,204,827

Page 26

PACT EDUCATIONAL TRUST LIMITED

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

8. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2023
£
4,168,890
403,020
639,198
5,211,108		 2022
£
2,778,576
272,312
418,546
3,469,434

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

Teaching
Non teaching		 2023
No.
69
44
113		 2022
No.
47
39
86

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2023 2022
No. No.
In the band £60,001 - £70,000 8 3
In the band £70,001 - £80,000 3 1
In the band £80,001 - £90,000 3 -
In the band £90,001 - £100,000 2 1
In the band £140,001 - £150,000 1 -

The key management personnel of the charity comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (excluding pension contributions) received by key management personnel for their services to the charity was £455,108 (2022: £462,365).

9. Trustees' remuneration and expenses

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

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

Page 27

PACT EDUCATIONAL TRUST LIMITED

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

10. Net income/(expenditure)

This is stated after charging:

Depreciation of tangible fixed assets: owned by the charity
Auditor's remuneration - audit		 2023
£
302,075
32,154
334,229		 2022
£
142,792
25,287
168,079

11. Tangible fixed assets

Cost
At 1 September 2022
Additions
Disposals
Transfers between
classes
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
On disposals
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold
property
£
5,696,553
122,785
(477,610)
144,433
5,486,161
1,889,062
74,176
(477,610)
1,485,628
4,000,533
3,807,491		 Long-term
leasehold
property
£
5,004,058
-
-
1,115,147
6,119,205
51,805
141,590
-
193,395
5,925,810
4,952,253		 Motor
vehicles
£
66,646
26,340
-
-
92,986
66,646
6,036
-
72,682
20,304
-		 Fixtures
and
fittings
£
887,762
43,595
-
2,968
934,325
518,310
80,273
-
598,583
335,742
369,452		 Assets in the
course of
construction
£
92,246
1,530,018
-
(1,262,548)
359,716
-
-
-
-
359,716
92,246		 Total
£
11,747,265
1,722,738
(477,610)
-
12,992,393
2,525,823
302,075
(477,610)
2,350,288
10,642,105
9,221,442

Page 28

PACT EDUCATIONAL TRUST LIMITED

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

12. Fixed asset investments

Cost
At 1 September 2022
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Investments
in
subsidiary
companies
£
1
1
1
1

Principal subsidiaries

The following was a subsidiary undertaking of the company:

Name Company Registered office or principal Principal activity
number place of business
The Laurels School Limited 08555840 The Cedars, Coombe Road, Provision of Education
Croydon, CR0 5RD
Class of Holding
shares
Ordinary 100%
13. Stocks
2023 2022
£ £
School uniform stock 76,092 147,039

Page 29

PACT EDUCATIONAL TRUST LIMITED

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

14. Debtors

Due within one year
Trade debtors
Prepayments and accrued income		 2023
£
529,405
64,416
593,821		 2022
£
529,157
59,260
588,417

15. Creditors: Amounts falling due within one year

Other loans
Payments received on account
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2022
Resources deferred during the year
Amounts released from previous periods		 2023
£
1,158,640
47,000
56,518
82,688
68,347
1,200,926
2,614,119
2023
£
573,793
415,955
(573,793)
415,955		 2022
£
819,076
80,510
197,599
349,174
126,572
1,002,345
2,575,276
2022
£
507,788
573,793
(507,788)
573,793

Deferred income at the reporting date represents school fees received during the year which relates to the academic year commencing 1 September 2023.

The bank and other loans are secured by fixed and floating charges over the charity's properties.

Included within other creditors are unpaid pension contributions of £67,197 (2022: £124,172).

Page 30

PACT EDUCATIONAL TRUST LIMITED

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

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

Other loans
Other creditors		 2023
£
4,575,222
341,264
4,916,486		 2022
£
1,393,263
314,350
1,707,613

Other loans also include loans from individuals and Trustees bearing interest from 0% to 3% per annum. Details of loans provided by Trustees are given in note 25. As these loans are provided at below the prevailing market rate of interest and are for the purposes of furthering the objectives of the charity, these loans are considered to be concessionary loans.

The other loans are secured by fixed and floating charges over the charity's properties.

Page 31

PACT EDUCATIONAL TRUST LIMITED

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

17.
Statement of funds
Statement of funds - current year
Unrestricted funds
Restricted funds
Total of funds
Statement of funds - prior year
Balance at
1 September
2021
£
Unrestricted funds
Unrestricted funds
(1,053,919)
Revaluation reserve
7,311,107
6,257,188
Restricted funds
Restricted Funds
30,994
Total of funds
6,288,182		 Balance at 1
September
2022
£
5,764,656
30,994
5,795,650
Income
£
6,712,295
-
6,712,295
-
6,712,295		 Income
£
6,900,603
15,000
6,915,603
Expenditure
£
(7,204,827)
-
(7,204,827)
-
(7,204,827)		 Expenditure
£
(8,659,268)
(42,020)
(8,701,288)
Transfers
in/out
£
7,311,107
(7,311,107)
-
-
-		 Balance at
31 August
2023
£
4,005,991
3,974
4,009,965
Balance at
31 August
2022
£
5,764,656
-
5,764,656
30,994
5,795,650

Page 32

PACT EDUCATIONAL TRUST LIMITED

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

18. Summary of funds

Summary of funds - current year

Unrestricted funds
Restricted funds		 Balance at 1
September
2022
£
5,764,656
30,994
5,795,650		 Income
£
6,900,603
15,000
6,915,603		 Expenditure
£
(8,659,268)
(42,020)
(8,701,288)		 Balance at
31 August
2023
£
4,005,991
3,974
4,009,965

Summary of funds - prior year

Unrestricted funds
Restricted funds		 Balance at
1 September
2021
£
6,257,188
30,994
6,288,182		 Income
£
6,712,295
-
6,712,295		 Expenditure
£
(7,204,827)
-
(7,204,827)		 Transfers
in/out
£
-
-
-		 Balance at
31 August
2022
£
5,764,656
30,994
5,795,650

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2023
Unrestricted
funds
2023
£
£
3,974
10,638,131
-
1
-
898,464
-
(2,614,119)
-
(4,916,486)
3,974
4,005,991		 Total
funds
2023
£
10,642,105
1
898,464
(2,614,119)
(4,916,486)
4,009,965

Page 33

PACT EDUCATIONAL TRUST LIMITED

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

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Restricted
funds
2022
£
30,994
-
-
-
-
30,994		 Unrestricted
funds
2022
£
9,190,448
1
857,096
(2,575,276)
(1,707,613)
5,764,656		 Total
funds
2022
£
9,221,442
1
857,096
(2,575,276)
(1,707,613)
5,795,650

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

Net expenditure for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in stocks
Increase in debtors
Increase/(decrease) in creditors
Net cash used in operating activities
21.
Analysis of cash and cash equivalents		 2023
£
(1,785,685)
302,075
-
-
70,947
(5,404)
(273,808)
(1,691,875)		 2022
£
(492,532)
142,792
1,208,950
(1,774,836)
(89,337)
(945,773)
362,827
(1,587,909)
2023 2022
£ £
Cash in hand 228,551 121,640

Of this balance, £28,771 is not available for use by the entity as it is subject to restrictions.

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PACT EDUCATIONAL TRUST LIMITED

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

22. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
September
2022
£
121,640
(819,076)
(1,393,263)
(2,090,699)		 Cash flows
At 31
August 2023
£
£
106,911
228,551
(339,564)
(1,158,640)
(3,181,959)
(4,575,222)
(3,414,612)
(5,505,311)

23. Pension commitments

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2024.

The employer’s pension costs paid to TPS in the period amounted to £584,033 (2022: £415,487).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

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

PACT EDUCATIONAL TRUST LIMITED

23. Pension commitments (continued)

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The school has accounted for its contributions to the scheme as if it were a defined contribution scheme. The school has set out the above information available on the scheme.

Stakeholder pension scheme

The charity operates a defined contribution scheme for the benefit of its non-teaching employees. Contributions payable are charged to the profit and loss account in the year they are payable. Contributions payable to the pension scheme during the year were £55,165 (2022: £44,845).

24. Operating lease commitments

At 31 August 2023 the company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 2023
£
160,000
1,090,000
6,380,000
7,630,000		 2022
£
10,000
40,000
7,300,164
7,350,164

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PACT EDUCATIONAL TRUST LIMITED

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

25. Related party transactions

Owing to the nature of the charity's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trustees have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the charity's financial regulations and normal procurement procedures.

Transactions with related parties are as follows:

Amount due (to)/from Amount due (to)/from
Relationship Transaction Amount related parties
2023 2022 2023 2022
£ £ £ £
Trustees Donation - - - -
Interest free loans - (80,000) (50,000) (50,000)
Reimbursed - - - -
expenses
Charities with common Interest free loan - 284,019 - (1,051,732)
Trustees
Rental payments - 140,000 - -
The Laurels School Limited Management fees - 83,333 - -
(subsidary)
Loan - - 1,304,798 1,340,121
Provision against - - (1,304,798) (1,340,121)
loan
Proeduca Summa, S..L Loan - - 3,849,444 -
(entity under common
control)

The loans from Trustees are secured by fixed charges over the charity's purposes.

26. Controlling party

The Board of Trustees is the controlling party.

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