Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D Company registration number.. 04205579 Charity number.. 1090412 TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 LONDON GRID FOR LEARNING TRUST MENZIES BRIGHTER THINKING Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST CONTENTS Page Reference and adminiBtrativg detai18 of the company, its Trustees and advisers Trustees. report 2-20 Independent auditors. report on the financial staternents 21-24 Consolidated statement of financial activities 25 Consolidated balance sheet 26-27 Company balance sheet 28-29 Consolidatèd statamant of eash flows 30 Notes to the financial statements 31-53 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021 Trustees Mr P Robin50n Mr G Hipple Ms J Mcsherry Mr N Mitchell Ms H W8rner Mrs Green Company règist•r•d number 04205579 Charlty reglstered number 1090412 Registered office 9th Floor 10 Exchange Square Primiose Street London EC2A 2BR Company secretary Mr J Jackson Chief executive officer Mr J Jackson Independent auditors Menzies LLP Chartered Accountants 36 Slalion Road Egham Suirey TW20 9LF Bankèrs Lloyds Bank PIC 83 Clarence Street Kingston upon Thames Surrey KT1 1RE Solicitors Ashfords LLP 1 New Fetter Lane London EC4A 1AN Page 1 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2021 CHAIRMAN'S STATEMENT 2020- 2021 When scholars ask whether the Renaissance - a cultural, artistic. political and economic rebirth follwng the Middle Ages and the Black Death ever actually existed it sounds like a typically academic University examination question. Whatever the answer there is something appealing about the ooncepl of innovation. cre8livily and growth emeiging trom a period of adversity. For schools, councils and 811 our othei customer5 the last 12 Tnonth5 has again been dominated by the pandemic yet for 811 the challenge and drfficulty it has caused, 2021122 has 8150 been a good year for the Trust. Turnover has increased with large numbers of devices being provided to schools together with enhanced bandwidth and new services coming online including those in the cloud. The national reach of LGfLINGfL continues to expand whilst the depth and maturity of our partnerships large and small, existing and new continues to deliver real benefits to all our customers. To the uninformed and looking back from the 21st century the Renaissance may have seemed dorninated by the giants such as Michelangelo and Leonardo da Vinci but the reality was that il was a tirne when the achievements of many helped to fuel a flourishing of t8lent and the harnessing of new technologies and ways of working. So it is now. The Trust has found Itself In the fortunate position of being able to shape the latest 8dvanc&s in cyber technology and apply them to children's learning and the needs of schools and the rest of the public sectoi. The last 2 years characterised by more remote leaming has liberated our thinking about how best to support pedagogy and the demands laced by schools and councils in a complex wodd including dealing with security and safeguarding. On a personal level it has not been easy for staff and pupils in any organisation or school to navigate the last 12 months. As the chairman of a charity, I feel proud of our staff and those in schools and councils who have worked so hard to maintain vital services and I give my word that l and my fellow Trustees will continue to work around the clock to support you and your organisations in the months and years to come. Paul Robin¥on - Chairman, London Grid for Learning Tru¥t Page 2 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 CEO STATEMENT 2020- 2021 2020121 was an incredible year for LGfL underfining ils importance lo Education in the UK. Despite a global pandernic, LGfL delivered ils most significant imp8¢t ever in pursuit of its mission lo advance education. Gross turnover r05e to 8ltnost £50M a5 LGfL led one of the largest ever device rollouts to UK Schools with LGfL helping schoo15 to recycle or bLJy over 140,0000 devices which is a laiger piogramme than Scotland's device initiative. LGfL was the lead party in a consortia with the University of Sheffield Hallam and the Education Foundation which was created to support teachers harness cloud plafforms and remote leaming. This was a national programme that was commissioned by the DfE. Over 4000 schools participated in the programme. By the end of FYE 2021 thousands of schools had received a bandwidth boost to their LGfL broadband enabling them to support cloud based leaming, whilst still rernaining secure due to the installation of the latest hardware and protection systern$ in schools and LGfL's Ignite National Network. LGfL reacted positively to the COVID-19 pandernie and scaled up new products such as Home Filtering and Remote Access platft>ims to enable schools to function efficiently and support remote learning foi pupils. HomeProtect ILGfL's home filtering system), at its peak, was protecting over 250,000 children and. along with LGfL's curriculum resources, was made freely available to any school in the UK. Over 1 million licences were freely distributed to schools enabling a range of positive outcomes including an estimated added value of £10M per annurn. The free school meal checker identified over £30M of potential pupil prerllium funding for schools. Pupil premium is funding lo irnprove education outcomes for disadvantaged pupils in schools in England. By next year. we anticipate that the eligibility checkei will have identified over £100M of funding since its in¢eplion in 2014. After years of growth and innovation, some of LGfL's product deployments now rank amongst the biggest in the wodd providing protection and security to nearly 2 million children and teachers every day. What is remarkable is that all of this has been achieved without increasing prices to schools. This year, whilst being one of the rnost difficult in our history, has brought out the best of LGfL and its partners. l am incredibly proud of the Trustees, LGfL Officers, our Partners and Schools for their support and trust in us at a time of national emergency. Together we have provided a lifeline to schools during the pandernic and provided an essential foundation that has enabled the continuation of education for close to 2 rnillion teachers and children. John Jackson - CEO, London Grid for Lèarning Trust Page 3 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 LGFL'S OBJECTIVES AND ACTIVITIES LGfL was founded in 2001 to advance education, in particular by providing and assisting in the provision of information and comrnunications technology lo London schools for the benefit of the children attending those schools. In 2019120, Qui shareholders approved a widening of LGfL'5 Objects, following 8ppiov81 by the Charities CoTntnission'. to advance heaKh by assisting in the provision ol broadband and other communications technology to alltsw integrated services between local authorities and heatth aLrthorities in the provision of social and other care," and to advance community development by assisting local authorities to integrate services through broadband and other communications technology to provide setvices more efficiently and at lower cost to the recipients of services particularly the elderly, vulnerable individuals and the disabled. LGfL delivers its Object5 by focusing on.'- Saving schools money., Energising teaching and learning", Keeping children safe", Tackling inequality.; and Promoting wellbeing. In furtherance of our Objects, we.. - Provide high speed and secure broadband and a range of digital services to public sector bodies including schools., Cooperate and work with schools. academies and colleges of further education. other charities. voluntary bodies 8nd statutory 8uthoiities., operating in furthei8nce of the Objects 01 similar charitable purposes and assisting thern to exchang8 infortnation and advice., Procure and enter into contracts to provide services to or on beha￿ of other bodies, establish or acquire subsidiary undertakings, and establish or take part in joint procurements, ventures and undertakings", Set aside funds for special purposes with a view to rneeting long-term commitments or requirernents,. Share safeguarding best-praclice in terms of online safety and beyond, working with stakeholders to train and equip school staff with the technologies and human expertlse th8t best keep children safe in education., and Piovide high-quality ContinuoLJS Professional Development for school staff at no addrtional cost that fosters the innovative use of CLrtting-edge technologies in the dassroom and complements teaching & learning best-piactice. STRATEGIC REPORT Today, LGfL serves an estimated 1.6 million children as well as 250,000 teachers and support staff across thousands of UK schools and public sector bodies. Our combined group, including LGL extends to the vast majority of London schools, libraries and cornrnunity ￿ntreS as well as hundreds of additional sites across the UK. A5 such. LGfL is one of the largest providers of connectivity lo schools in the UK providing 8 suite of digital servi￿8 and infiastructure Ih8t is feature rith and capable of supporting an education81 system th81 is changing fundamentally in response to the pandernic. At the heart of LGfL's service is a wortd class network. Built almost exdusively on symmetrical, uncontended fibre to the premise, LGfL's fibre connectivity provides almost infinite capacity to deliver excrfting and engaging learning opportunities for children- both now and into the future. LGfL's massive scale, which continues to grow nationally, means that it secures very competitive pricing from its supply chain enabling LGfL to deliver value for money to the schools it serves. Alongside its education portfolio of products, LGIL provides a number of pan London and regional servi￿8 alongside a wid8r public sector infr8Structur8 to en8ble 8fficient 8nd cost-8ffectlV8 servic8 delivering in London. They are.. Pan London Admissions servi￿., London Public Servitss Network (including gateways to healthl., and Free School Meals Eligibility Checker. Page 4 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 ACHIEVEMENTS AND PERFORMANCE The global pandemic has placed extraordinary and unprecedented pressure on the UK with severe and negative impacts on the econorny. publi¢ inslilulions and society more generally. Ghildien and eduralional services have been disrupted by repeated lockdowns and the consequent shift to ietnote and blended learning pedagogies. The wellbeing of teachers and children has been negatively impacted and the level of inequality h88 unfortunately worsened in parts of the country. These developments have impacted many Educational Technology companies over the course of 2020121 with some reporting unprecedented financial difficuKies and disruption. In short this has been a year of global emergency and repeated crisis. Despite the challenges, LGL entered the pandernic with a mission to emerge stronger from it and deliver innovation and critical support to schools. Looking back at the year. LGfL played a fundamental and award-winning role in supporting schools at 8 time of national crisis. The following sections set out in more detail the achievements of LGfL over the COLJf5e of th8 pandemic with outcomes sumrnaiised in th8 t8ble b81ow'.- KEY OUTCOMES Outcome By March 31 2021 By Mareh 31 2020 Pled e 2020 Outcomes Schoo15 receiving Iiee bandwidth upgrades as part of Pledge 2020 ro ramme General Connection S eed of Seconda Schools to the Internet General Connection S eed of Prima Schools to the Internet Brid e The Divide Outcomes Appioxirn8te New Laptops Delivered to Schools l Ordered by Schools by 31st March 21 Estimated Number of La to s Enabled for Re Eslim8ted Savin to Schools of Delivered and Ordered La National Demonstrator Pro rawnme Schools su orted b the National Demonstrator Pro ramme Estirnated Teachers im acted b the National Demonstrator Pro Estimated Children im acted b the National Demonstrator Pro Free School Meals Pu il Premium Fundin identified for Schools A lications for School Places A lications for Seconda School Places Protsssed A licalions for Re lion School Places Total Number of A Iications Processed foi School Places Smartbu Value for Mone Estirnated Licences Freely Distributed to Schools by LGfL as part of Let's Get Di ital Bioadband Offer Estimated Savin l Additional Value to Schools Per Annum 1523 975 1Gb 100-300Mb 200-500 Mb 40-100Mb 110.000 30 000 In excess of £7M to Over 4000 200.000 2 000.000 rarnme rarnrne £33.5 M £15.8 M 108701 109124 237353 107161 114272 241108 all hases 1.3M 1.3M In excess of £12 M In excess of £12 M Page 5 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 PLEDGE 2020- FUTURE PROOFED FIBRE BROADBAND In 2018 LGfL 8nlicipaled the rnove lo Cloud Computing in Education and the need for greater security in schools. Consequently, the LGfL Pledge 2020 prograrnme was pulled togelhei to ensuie th81 schools had the bro8db8nd speeds and technology nece5S8ry for transition to the Cloud. The iollout of Pledge 2020 cotnmenced in April 2019 and the progiatnme was cornpleted in De￿mber 2020. To ensure its success, Pledge 2020 required an anticipated cyclical investment by LGfL in the equipment and services necessary to support the upgrade of connectivity across thousands of schools during the pandemic. This upgrade became particularly challenging due to access and movement restrictions. The net result of the Pledge 2020 programme was to increase available bandwidth capaaty by an average ol over 200°/. with migrated primary schools generally moving to a minimum of 100 Mbps and secondary schools to 1 Gbps. This 8ddition81 cap8Clty enabled schools to support doLJd-based learning with minimum disruption to the Education of childien. The foresight of Pledge 2020 by LGfL proved to be invaluable as during the pandemic the government accelerated the migiation to Office 365 and Google G Suite Into schools such that cloud computing replaced an environment that prior to COVID-19 was based on infrastructure and systems that were largely school based. As part of Pledge 2020, LGIL also invested in the security and protection of its schools. New firewalls were deployed, on the latest operating systems, and connected into centralised management plaffomis that enable effiaent and effective security oversight over thousands of schools and public sector organisations. This investment has proven very timely as the number of cyberthreats, and their sophistication, is unfortunately on the increase. The scale of this undertaking was vast and complicated by sile access restrictions resulting from the pandemic. Nevertheless, ne8ily 811 LGfL customers were upgi8ded during the pandemi¢. The iesulting fibre network is one the biggest landmark achievements ever delivered by LGfL and ensuied that the disruption to schools of moving from on premise solutions to cloud was minimised. BRIDGE THE DIVIDE- E UIPPING CHILDREN WITH LAPTOPS LGIL recognised the educational emergency laced by schools who lacked sufficient equipment to support children learning from home which potentially would have damaging consequences on the education of those children. LGfL was concemed that there was exploitation of market conditions occurring with device prices rising rapidty due to the ever increasing levels of demand because of the global pandemic. The impact of this being that other countries would consume the available devices leaving a shortage for the UK and extended delays in receiving equipment. In order to counter these challenges to edLJcation and the UK economy as a whole LGfL, at its own risk, went to market to purchase up to 1 million devices. By doing so, LGfL secured supply for the UK and generated economies of scale in the market. Rather than seek advantage from securing devices at low prices, LGfL then offered these devices to schools and Councils al pricing. LGfL believe, h8d never been achieved before in the marketplace for the quality of equipment being provided to schools. The savings. per device, have been eslirnaled al between £40- £90 ￿rnpared with the market at the time. Given the exceptional piiryng, s¢hoo15 and Coun¢i15 quiokly embra￿d the initiative purch8sing vast quantiti85 of devices Iiom LGfL which collectively saved thetn more than £7tnillion and dramatically increased the nurnber of devices available for children, induding those most in need. Over the course of the initiative many schools commented positively on the work undertaken by LGfL and the incredible impact it had on children by enabling an acceleration of 1..1 devi￿ ratios across all year groups which, without the advantageous pricing secured by LGfL would otherwise have been impossible. Many of the devices purchased went to schools in some ol the most deprived areas of the country. The government scheme cost £240 rnillion lo provision 1 million laptOP5. The cost of LGfL's laptop provisioning w8s significantly lower wth profits from sales being ieinvested back into the upgrade of infiastructur8 and s8fVIC8s for schools which was needed during the pandernic to cope with the additional pressures placed on rt. Page 6 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 BRIDGE THE DIVIDE- EQUIPPING CHILDREN THROUGH RECYCLING Many schools during the pandemic could not afford to purchase new devi￿5 and, particularly in areas of soc4al and econornic deprivation. LGfL implemented #8iidgeTheDivide t0 save schools Tnoney on n8w devices but a parallel initl8tive was needed where money was not available in schools to ILJnd new devices for childien. As a resuK, recyding of old devices was an are8 that LGfL chose to invest in foi schools and over the course of the pandemic. A key focus was finding a cost-effective means of converting devices, that were no longer deemed powerful enough to support children and teachers, into fully functioning chrome deviTrs that accessed data and programmes in the cloud. LGIL partnered with Neverware and purchased licences for subscribing schools that enabled devi￿$ to becorne fully functioning chrome devices within a few minutes. LGfL, at the request of London CoLJncils, also established a temporary shared support service, to support the iollout of devices to vulnerable children and to support iecyding of equipment used in public sectoi bodies. Over 1,000 schools have now engaged with LGfL and converted old devices into ones that could provide efficient and secure intemet access at virtually no additional cost. As part of this initiative, tens of thousands of licences were delivered to schools. The subsequent savings to schools of recycling computers are estirnated at many rnillions of pounds with many using a combination of new laptops and recycled devices to achieve 1..1 device ratios. Recycling is also a powerful way of helping the environrnenl as Il postpones sending large volumes of equipment to landfill siles. SAFEGUARDING CHILDREN AT HOME- HOME PROTECT Due to ￿h0o1 closures children were leaming at home and there was an urgent need to safeguard children who would, ordinarily, be protected by filtering and security systems provided by schools. In response to this fundamental change, LGfL developed and deployed a free filtering package called HorneProlecl. This plalforrn allowed schools to apply filtering policies to school equipment used at horne. The product was made available in a matter of weeks from a standing start. LGfL made the service free to any school in the UK. 85 well as to sohools that subscribed to Its broadb8nd service, thus saving participating s¢hools the 8xpense of having to provide an 8ltem8tive solution. A key feature of the home filtering platfom was ease of use and the ability for poliaes to be applied across mukiple operating systems given that children may be using Chromebooks, iPads and windows devices. Over the course of the year, hundreds of schools signed up for this initiative, and an estimated 250,000 devices were covered by the filtering platform at its peak during the pandemic. Without HomeProlect, children could have been exposed to inappropriate content. LGfL has Now mainstreamed HomeProlect and offers rf( a5 a key part of its bro8dband subscription NATIONAL DEMONSTRATOR PROGRAMME- HELPING SCHOOLS HARNESS CLOUD TECHNOL As part of the government's response to COVID in schools, the DfE announced the move to cloud based Managed Leaming Environments provided by Microsoft and Google. Funding was set aside to support a technical migration to the new doud platform alongside a National Demonstrator Programme to develop skills and Confiden￿ in technology. The objectives of the Demonstrator Programme were to create a national support ne￿Ork focused on supporting schools and teachers migrate to the Cloud as well as sharing best practices with respect to cloud and remote leaming with other schools. This was an unprecedented undertaking given that more than 10,000 schools in the UK were estimated not to have an adequate cloud platform or Managed Learning Environment In place as the pandemic unfolded. Moreovei, progress needed to be made urgently given the need to help children from home on new platforms. Page 7 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 The DfE selected a cohort ol schools nationally to deliver the support and, in tandern, awarded a contract to LGfL and its partners the University of Sheffield Hallam and the EdTech Foundation to:_ Cre*e 8 ￿ntral reposrfcory of content and learning resour￿3 that was avai18ble lo all schools nationally.. Recruit 8 high-quality team to co-oidinate developments and overse8 the implernentation of the programtne nationally and within the regions., Co-ordinate, support and challenge the exemplar schools to deliver a high quality programme", Connect those schools who most needed support with exemplar schools as a priority,. and Channel funding for the programme into the exernplar schools. From a st8nding start the National Demonstrator Progr8mme was up and running on lime and within 8 few weeks a national support network was cleated foi schools. Subsequently ov81 the course of the following months, just over 4,000 schools engaged with the progiatntne with over 2,000,000 children benefiting as a result. The SUC￿$$ of the initial programme led to unplanned extensions and addvtional funding and the Consortia's management and oversight of the programme was well regarded by schools. CURRICULUM AND TEACHER DEVELOPMENT LGfL provided support for teachers and children, in part, through ils stewardship and leadership role in the National Demonstrator Prograrllrlle. Alongside this initiative, LGfL rnade 8 fundarnent81 shift from phy51cal delivery of ils training prograrnme to virtual events d81ivered via cloud platforTll5 including Zoom, Teams and Googl8 Hangouts. The shift to virtual was a powerful change enabling LGfL to schedule more training, at lower cost, tts more teachers and organisations than ever before with an approximate trebling of CPD over the course of the pandemic. A rich curriculum of activity was organised for schools to provide teachers with the skills and confidence to harness the potential of cloud. LGfL charnpioned teacher Certification and training in Google products and services enabling it to becorne one of the largest enablers of training foi schools in Gsuite in Europe. A parallel programme of work for Window was delivered with the support of Miciosoft FREE SCHOOL MEALS ELIGIBILITY CHECKER In 2014 LGfL launched an on line application that enables schools to check on whether pupils are eligible for free school meals and a pupil premium payment. From a standing start this system is now used in over 100 Local Authorities across and by thousands of schools. The nature of the eligibility checking Servi￿ means that significantly higher arnounts of money are being channelled into areas where there is poverty and economic deprnfation. As such il 15 an invaluable stre8m of funding for those schools. children and families who most need it. The growth of the eligibility checkei has been very significant in recent years as more schools have opted into the service and the barriers to Its Use have been removed. Indeed. there ha5 been 51gnrficant year on year growth since its launch. The numbei of children being eligible foi free school tneals now stands at 20.8¢10, this represents 1.74 million pupils, This has risen from 17.3Q/o in January 2020. In 2020121 LGfL team up with Marcus Rashford's Food Poverty Action Group to promote the use of the checker nationally. This partnership, coupled with the devastating economic impact on many families, led to use of the eligibility checker exploding over the course of 2020121 with over £30M being identified for schools and children who most need economic investment and support. Over 420,000 pupils have become eligible for free school me81s since the Iir51 lockdown on 23 March 2020. This wmpares to 292,000 for the same period Imarch 2019 to Jan 20201 b8fore the p8nd8mic. This incr8ase demonstrates th8 importance of this free service to schools. Page 8 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 SAVING SCHOOLS MONEY LGfL's growing community of schools who subscribe and consurne l(s servi￿3 gives LGfL aggregated buying power in the market. Over the last few years LGfL has harnessed that buying power to deliver purposeful market inlervenlions which have delivered signrfic8nl new products and innovation lo schoo15 at no additional cost. During the pandemic, LGfL undertook 8 number of major piocurements for schools across England that delivered savings and added value to schools arnounting to millions of pounds pei annum. This inclLJded, for example, providing flee filtering at home for any school that applied for it. LGfL continued to provide free licences to schools, bundled as part of its broadband subscription. Over 100 products and services are now bundled into LGfL's 'subscription which now has a market prowsition that schools subscribing to its broadband Servi￿ can save more than they spend. In total, the estimated number of li￿nceS requested and delivered to s¢hoo15 15 now well over 1 rnillion per 8nnurn which is an incredible achievernent with the rnajority being added in recent years. These Iic8nces, 8part fiorn th8 Posltive outcomes they bring, also deliver savings and cost avoidance of tnore than £10M pei annLJm. EDUCATIONAL RESOURCES LGfL has invested over many years to create a significant portfolio of teaching and leaming resources that has been made freely available to schools during the pandemic, wherever that has been possible. In developing its portfolio of content. LGfL has a long history of working in partnership with charities, acadernic institutions and sm811 lo medium sized enterprises ISME'S) to produce ground-breaking reSoUr￿S alongside irllportant specialist package5 which are generally uneconornic lo be developed by 8 commerci81 operator. In 2020r21 LGfL partnered up with Child Bereavement UK to update our online re50urc85 to support children and farnilies cope with the loss of a close relative and loved one. The resources have been one ol LGfL's tll05t Ljsed resources during the pandemic and have received critical recognition within the sector. LGfL also reviewed and improved the resources it provides for schools and children with Speaal Educational Needs, induding a refresh of its welkbeing resources. These resources have also been well received by schools as demonstrated by the usage of these products. LGfL oontinues to develop its engagement with the SEND ￿MMunity and was. for the first time in its history, the headline sponsor of the UK'S largest Special Educational Needs event, the TES (fime Educational Supplement) SEND Show. LGfL's SEND Newsletter continues to expand Its subscribei base. LGfL has expanded its contribLrtion to policy discussion and is now represented on the All Party Padiamentary Group for Assistive Technology IAPPGI, the UK Counul for Internet Safety IUKCCISI and the Vulnerable People Working Party The All Party Parliamentary Group for Speaal Educational Needs has only recently commentsd meetings, ol which LGIL attends. The IncludED service continues to develop its role as thought leaders in the field of using mainstream technologies to support inclusion and remove barriers lo learning. AFEGUARDING CHILDREN LGfL continues to focLJS on safeguarding children through Its internal centie of excellenTr. In iesponse to the pandemic 8 range of resources and policies were commissioned and delivered to both schools and parents to provide practical help and support with respect to appropriate and safe use of the intemet whilst learning from home. This year there has been a significant increase and diversrfication of content and materials for schools including significant work on county lines, gangs and community safety alongside continuing work on child safety and prevent. A5 in previous years, LGfL continues to remain actively involved in the development and shaping of policy in this area through its direct eng8gernent wth the DfE and key bodies such as the Internet Watch Foundation IIWFI. LGfL's guidance has also b8en ref818nced by th& DfE in bri8fings to schools. LGfL's Safeguarding News BLJlletin continues to grow in teims of popularity and reach and this has ensured that key resourtss have been harnessed by schools. This indudes LGfL's translation into multiple languages of the DfE's guidan into Keeping Children Safe in Education. Page 9 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 LGIL'S national profile continued to rise in 2020121 culminating in the award of a contract by the DfE to provide specialist safeguarding resources and support. KEEPIN CH AFE-CYBER EC RITY LGfL 15 investing in the long teirn Security and safety of schoo15 and children. LGfL's current broadband service is unique in the market offering muKiple layers of defence against cyber attacks, induding:_ Distributed Denial of Service IDDOSI protection. Antivirus protection. Spam Protection. Firewalls. Rootkit protection. Ransomware prot￿tiOn. Vulnerability assessments. Cloud backLJP and Disaster Recovery Services. Multi factor authentication. In 2020121 investment was made in additional protections and infrastructure, building on the foundations provided by the equipment installed as part of the Pledge 2020 initiative. This included extending free backup storage and recovery sothvare to all primary schools. These measures have been particularly important given the increasing threats faring LGfL and its schools. PAN LONDON ADMISSIONS SERVICE LGfL works in partnership with Local Authoritie5 to coordinate school places across London. This is a significant and critical task, involving hundred5 of thousands of annual applications across the capital each year. By collaborating together and delivering these services centrally, local authorities save significant amounts of money by avoiding duplication and by delivering services efficiently through shared IT systems. Underpinning this setwice are central IT systems provided by LGfL, which pro￿$$eS parental applications for school places. Using the centralised system. Local Authorities aim to give every child a single offer of a school plaTr on National Offer Day, which previously was not the case when local systems were run by individual Authorities. The Pan London Coordinated Admissions systems have been 8 suwess for London. As 8 resutt, this seTViCe wvers all phases- nLJfsery, reception, junior, secondary and 14119 placetnents. 2020121 was the sixteenth year of operation of the Pan-London register for school admissions, which has been suc￿SSfLI1lY handling over 220,000 applications for school places. Due to lockdown this was the first time that the system had been run with all staff working remotely. A number ol priority enhancements were also made to the system to miligate the effect of COVID-19, with email reminders advising parents that they hadn't accepted the placement offer. The new systems introduced in 2019120 to improve and streamline the processing of adrnissions have delivered significant channel shift with 8 majoi decline in the number of telephone and general enquiries lo the support teams with p8ienls able to 5ucces5fully apply without having to c811 foi help or advi￿. This reduction underlining the importance of improved web51te de51gn and efficient proce55es. KEEPING THE LIGHTS ON LGfL's existing broadband setw1￿$ and products such as filtering, email, spam protection and other central services were placed under incredible stress by the pandemic with huge increases in demand for private cloud services including Rernote Access, Spam Filtering, Premium Content and shared applications. Em8il use, for example. so8red during the pandemic, particularfy in the 3rd lockdown, where traffic peaked al over 3 million ernails per day which is the highest it has ever been as thildren and teachers routinely shar8d assignTnents and work vi8 ernail for the first tirne. Similady, there was a significant rise in support calls and requests for support as schools moved their services on line and needed help and advice to reconfigure their IT systems lor remote learning. Page 10 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 With a shift to horne and remote learning there was a significant rise in the use of remote access services with teachers, children and support staff requiring secure access lo on site systems including schools Management Information Systems and on sile ￿nIent servers. LGfL introduced a secure product called freedom2ro8m as part of that service 81 the very start of the pandeTnic and detnand for this service rose by around tenfold during the pandernic. In older to tneet unprecedented dernand, LGfL tnade a numbei of targeted investments, 5UPPQrted by it5 partner5, to ensure that the additional stress on systems was addressed and unplanned outages avoided. Those Investments induded infrastructure, plafforms, software and related services. These upgrades were not funded by government grants or support but resourced from the reinvestment of surpluses and revenues generated from the supply of new services induding devices. This is an incredible achievement for LGfL and its partners. LONDON PUBLIC SERVICE NETWORK London Grid Lirnited ILGLI. was 8 wholly owned trading company of LGfL, providing neiwork and digital 5ervi¢e for local government and a range of other public bodies. Prioi to 2200121 surpluses from LGL were gift-aided to LGfL to enable the furtheiance of its Objects. In 2020121, the accounts for LGL ale merged with LGfL following approval by the shareholders to widen the objects of the Counal as set out in the intr()duction to this report. A core part of LGL'S continuing activities, within LGfL, relate to 'The London Public Services Nelwork, ILPSNI. LPSN is a separate logical ne￿Ork which employs the same physical infrastructure as schools, generating savings for the public purse. LGIL, through its contracts and purchasing power, is able to secure better value for money than Councils and other local bodies operating individually. The LPSN infraslruclure also facilitates the integration of local and ￿ntral government services through secure gateways which enable the digitsl delivery of services. ranging from benefit claims lo blue-badge applications. Joining up different nelwotks 8150 fulfils the requirements of the Children'5 Act foi public bodies to Share appropriate information. This is particularly significant given the focu5 on the furthei Integration of health and social care at national and regional level. The provision of the LPSN network requires a high degree of security. LGfL has ensured that a gateway and agreed codes of connection are in place to provide connectivity to the'Government Connect, gateway for central government services, as well as to the 'Health Setvice Network,. A5 with previous years, LGfL ￿ntinued to focus on expanding the GovRoam service a¢ross London which provides an irnportant overlay to publi¢ nelwotks in London. Well over half of the Counryls now subscribe to that service. Essentially GovRoam allows LGfL to connect its fibie infrastructure to wireless services provided by public bodies. This means that public sector staff can access their systems and information wherever there is a wireless network supporting GovRoam. This flexibility is partiCLJlarly useful for peripatetic staff working in mLJlti-agency teams that frequently have to work from multiple locations induding schools, councils, and health settings. More than half of the Local Authorities in London are now using this service. A focus during 2020121 was the migration of Local Authorities frorn the existing LGfL 2.0 network which is now reaching the end of ils useful oper8tiNg life. Only one Local Authority now has a significant presence on this network and this will be migr8ted over the course of 2021122. This tne8ns Councils have now been rnigrated onto a new national infrastrudure that will en8ble acce55 to new features, different acce55 technologies and itnprovements in monitoring and perfortn8nce management. LGfL also boosted Council intemet capacity significantly during the pandemic to enable Local Authorities to support remote working for their offi￿r$ at massive scale. Page 11 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 FIT FOR THE FUTURE-TRANSFORMING AND RESHAPING LGfL LGfL was founded as 8 procurement aggregator for the London region which commissioned technology partner5 to deliver connectivity, managed services and content lo schools. As a key pillar of government policy, LGfL received funding from central government through the harnessing technology grant. The coalition govemrnenl scrapped this funding requiring LGfL to either di55olve or contr8Ct directly with schools for the services provided. LGfL chose the latter path. Over subsequent year5, LGfL has evolved its role such that It is now much Tnore engaged in the direct provision of value-added services that complement the stiategic partnerships that ale in pla￿ for connectivity and managed services. LGfL's ability to adapt to government policy has enabled it to grow in stark contrast to leaming grids generally which are in decline or have ceased to exist. Reshaping LGfL requires a continuing investment in the intemal transformation that is required to enable LGfL to adapt to the changing strategic landscape it finds itself in. The transformation of LGfL is being co-ordinated through a programme called Fit for the Future which has a number of workstrearns associated that are set out in the following sections. WORKFORCE TRANSFORMATION LGfL needs a modern woikforce that has the skills and capacity to meet the changing and growing demands of a national provider. Key areas of focus including the modernisation of accommodation linduding the move to a new HQ), the introduction of new employment contracts that support flexible working and a review ol HR poliaes. DIGITAL TRANSFORMATION LGfL must have efficient and flexible technology to support ils growth and diversification. As a result of its investment in syslerns. telephony 8nd infrastructure throughout the Lockdown LGfL staff were able to work at home and continued to deliver its services with no detrimentsl impact lo the Servi￿ provision. ThAultiple developtMent5 are 8150 undetway induding the move to a new website. the tnigration to 8 modem finance system as well as the introduction of Cu5totner Relationship Management ICRMI sy5tetn to rnanage LGfL's activities productively and efficiently. These changes In systems are being accompanied by improvements in process as well as the workforce changes set out above. BUSINESS MODEL TRANSFORMATION LGfL's growth nationally coupled with the growth in direct service provision are contributing to a reshaping of LGfL to ensure that the organisation has the structure and coherence to deliver and sust8in long terrn change. Changes in the Group Strudure and govem8nce are needed to ensure the long-term sustainability ol LGfL SUPPLY CHAIN TRANSFORMATION One of LGfL's key strengths in recent years has been the broadenirig of its partner base to introduce world dass companies such as Adobe which have opened up new possibilities to supply schools with excits'ng and impactlul products such as Creative Cloud. Alongside the development ol strategic partnerships with global technology companies, LGfL has nurtured the Digital Transform8tion Partnership. This is a Network of Small lo Medium Sized Enterprises ISME'S) who re￿1ve regular updates and newsletters from LGfL. This network also provides an invaluable support network for ￿h0o18. Effedive oveisight and m8n8gement of incumbent P8rtn8is rern8lnS 8 key focu5 8s LGfL's n8tion81 footprint wntinues to glow and develop across the UK. This is enabling LGfL to control costs and ensure positive aligntnent between suppliers and LGfL's Objects and priorities. A diversified supply chain has also delivered greater resilience and choice for LGfL and its customers which has been a fundamental building block in delivering additional value to schools. RISK MANAGEMENT The m8nagemenl and rnitigalion of risk is a key priority for LGfL. LGfL maintains a strong focus on risk management and mitigation in all aspects of its work and key areas of concem are reported to the Board along with proposed rnitigating actions. The following sections consider the tnaioi challenges and risks that LGfL faces currentty. Financial risk is addressed in the finance section which is later in this report. Page 12 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 COVID-19 The worfdwide pandemic has severely disrupted the global economy, negatively affected the supply of goods and Services as well as resutting in the closure of schools. Many companies. including UK technology companies, have struggled to adapt to the changed environment. A5 Set out In this report, LGfL has delivered a compiehensive and effective iesponse foi its beneficiaiies through Inrtiatives such as Pledge 2020 and BridgeTheDivide as well as "Lights On" investments to ensure that schools and Counals continued to operate successfully despite huge changes in demand and the shift to remote working. LGfL recognises that our ability to respond flexibly and innovatively to COVID-19 or any future unexpected events will remain a priority for the foreseeable future. Our adaptable approach has proven invaluable in the continuation of service provision and the continuing advancement of cloud serviTrs. The irnpact of COVID-19 on the global suppty ch8in will wntinue lo disrupt the market 85 there is likely to be a subslanlial rise In the consLJmption of electronics and technology wrth the introductions of lockdowns acioss the world. In addition, suppliers may find delays in shipping and port congestion a problern due to unexpected shortages of available staff. In response, LGfL is taking steps to increase resilience by diveisrfying its partners and broadening the range of products available to meet service needs. Massive public borrowing and spending is also likely to negatively impact the economic outlook over the longer term with inflationary pressures likely lo drive up costs for all suppliers and companies potentially squeezing surpluses. LGfL's focus on efficiency, contract controls and generating value for money from its supplier base are important mitigations to inflationary pressures. BREXIT The continuing un￿rtaintY with respect to the UK'5 trading atrangements with the rest of the world 18rnains a conceTn wrth nts obvious ie501ution in sight. LGfL's supply chain is strong with our major supply partners already well advanced in tems of contingency planning. Nevertheless, there are likely to be continuing swings in currency exchange rates that will adversely affect prices and driv up costs to schools. LGfL is rnitigating this impact by purchasing at scale and ensuring that there is an effective procurement capacity at the heart of the organisation. MANAGING GROWTH LGfL is growing its customers and diverstfying its products which is inèvitably biinging pressures including the urgent and continuing need to modernise LGfL. This undedines the importance of the LGfL Fit for the Future programme. These pressures require LGfL to drive up productivity, automate processes and harness digital innovation. Growth in LGIL'S coverage and widening ol LGfL's direct services and products requires LGfL to recruit additional staff to meet needs in those areas that require focus including enabling functions such as finance alongside business development and sales. MANAGING ORGANISATIONAL TRANSFORMATION The process and wder ¢h8nge5 being introduced by LGfL to support growth include significant Changes in working practiTrs and contracts which have been iefreshed and updated for all etnployees. The move to a rnodern HQ has benefited LGIL enabling a numbei of key benefits, Including closer ties w(th schools, Councils and partnei organisations. KEEPING PACE WITH MARKET CHANGE LGfL is in a technology market where innovation and change is constant. As such it is vital to ensure that products and services remain current and relevant in a highly competitive area. A5 LGfL's response to COVID-19 demonstrates, LGfL has continued to innovate and expand the services and products il provid8S to schools reinforcing the value of its subscription and the positlV8 itnpact on its ben8ficiari8S. Page 13 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 There is a risk that disruptive and fast-rnoving changes in new technology and associated services could render services obsolescent or expensive. Work is already underway to ensure that LGfL can support these changes and deliver the interoperability and flexibility that schools now expect. In doing so, there will be ongoing challenges and a constant balancing act for LGfL 8nd ils delivery partners to rnanage be￿een providing a secure network and the need for more Key priorities foi 2021122 include itnprovernents to product5 that support the increased use of cloud service5 and help schools mitigate the Impacts on learning from the global pandemic. LGfL wll also invest to modemise other key platfoms this year that will enhance its safeguarding credentials to schools. Further strategic investments in safeguarding, infrastructure, cybersecurity and netsvorks are planned enabling LGfL to continue operating at the forefront of innovation and practice in the education market. MITIGATING CYBERTHREATS LGfL iecognises that there is continuing activrty and efforts to disrupt schools and other bodies through targ8t8d activities induding sparnming, distributed denial of Servi￿ attacks IDDOSI, ransomware attacks, malwaie and viruses. LGfL continues to invest to improve its capacity to mitigate such threats through product improvements including the addition of new protections. As previously stated, prudent and effective investments have been made in technologies such as firewalls and alerting systems to mitigate the risk of such breaches. In recognition of the increased threat to information and systems, LGIL also undertook independent testing of its network security., this cydical assurance will continue. A positive developrnent this year has been the enhanced DDOS protection enabled by the re￿nt and significant upgrades lo the firewalls that LGfL has deployed in the edge li.e the school silesl and core li.e. LGfL's datacenlresl locations of ils nelwotk. LGfL h8s a150 focLJsed on security proc8s5 improvern8nt5 and has achiev8d Cyb8r Essenti815 Plu5 accreditation. SUPPLY CHAIN RESILIENCE With the majority of Servi￿ provision administered through contracts with substantial supply partners, there remains the risk that one of these could fail, particularly in the current climate. In mitigation, LGfL undertakes regular review meetings with suppliers. Financial checks through Dunn & Bradstreet are conducted regularly and are part of the assessment process for major new contract awards. To maximise value in its suppty chain, LGfL has expanded its commercial ecosystem. This has delivered 8 significant broadening of products and capabilities available to LGIL as well as reducing the exposure to one supplier. The expansion of LGfL's partnerships has proven Invaluable In diiving Innovation Into the setvicès and subsciiptions that LGIL offeis. It also provides LGfL with altemative supply should partners fail to meet the standards that LGfL requires. The creation tsf a Digital Transformation Partner Network has been a particular success with dose to 100 Small and Medium Sized Enterprises working dosely with LGIL on supporting schools in London and beyond. Atomwide Inow part of Adept Plcl and VMB are critical partners for the delivery of services to schools. LGfL has developed robust improvement plans with clear actions to ensure continuous improvement. FINANCIAL REVIE¥V The ie5ults for the year and LGfL's financi81 position at the end of the year are shown in the 3tt8¢hed financi81 statements. LGfL does not receive any of its income from public fundraising so is not required to comply with any fundraising regulations. The major part of LGfL's income is derived directly from schools for the provision of broadband connectivity, related services linternet fihering, e-rnail hosting, e-mail filtering, anti-virus protection, web hosting, secure rernote access. etc.) online educational resources and devices. However, this is likely to change as LGfL diversifies the products and services that it is sourcing on behalf of schools. LGfL has witnessed a very substantial ris8 in its revenues as a resutt of diveisifying into d8vic8 provision during the pandernic and expanding the range of services and pioducts that it offers in schools. Income was also boosted by the award of the DfE's contract to manage the National Demonstrator Progiamme. Expenditure has increased this year in line with expectations due to the cydical refresh of its network infrastructLJre with Page 14 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 schools, investment in new services to enable schools to function during the pandemic and the procurement of very large numbers of laptops as part of the #BridgeTheDivide. However. the imp8¢t on the liquidity and cash position has been minirnised by leasing much of the equiprnenl lo enable LGfL lo rn8inlain 118 working rapi181 so that il is well posrfcioned to respond to unexpected Ihieats. econotnic changes and developments. PENSION LIABILITY The pension liability has increased in year from £1.52em to £2.984m due to updated actuarial assumptions due to the global pandemic. Unsurprisingly, the revised estimates are unusually pessimistic and have had a disproportionately negative impact compared with previous assessments. The current uncertainty and the need to ensure the future sustainability of LGfL will mean that a review of LGfL's Pension Scheme will be needed to avoid the burden of maintaining the fund being too great with a likely rnove from a Defined Benefits Scheme to a Defined Contribution Scheme. GOING CONCERN Whilst Net Current Assets are negative this was anticipated as part of the cydical refresh of the network and mirrors perf0rnan￿ in previous refreshes over the last 20 years. As in previous cycles, Net Current Assets will move to a sustainable position, until the next cyclical upgrade of the ne￿ork. However, it is also worth noting that the costs ol cyclical replacements are generally falling historically and therefore the long tem, structural demands on LGfL are declining. Despite this short term challenge. the underfying financial position of LGfL remains strong with a SUC￿SSfUl strategy of focusing on growth, relenlion, revenue diversification. supply chain oplimisalion and product innovation. Key initl8b"v85 that ensure LGfL is a going concem indude.'_ Achieving better value and reduced costs from suppliers through market testing, financial and commercial controls", Diversfying the range of products that it provides to schools and therefore the sources of its income,. Reducing the rale of customer attrition through a range of targeted initiatives induding more flexible pricing and product enrichrnent.. Implementing improved investrnent and project management controls, including stopping initiatives that weTe nirt delivering benefit, sweating assets and improving long-term planning., Iv) Expanding its customer base in schools and across the public sector., Improving financial controls and forecasts., and Iviil Investing to improve the competitiveness of Ihe products LGfL provides to schools. Improvernents in LGfL's financial position include an increase in cash and strong liquidity. Process improvements in revenue and credit cx)Nlrol functions have been central lo that. LGfL continue5 to grow a¢ios5 Engl8nd with significant exp8n5i0n in 2021 in the Home Counties and a healthy multi million pipeline of future sales lead5 and ietention activity. LGfL benefits from very high levels of customer retention and loyalty which are currently at over 950/0 in a very competitive market. Renewed confidence in LGfL is reflected by the fact that schools who have left LGfL are now retuming which means that LGfL's share of the London market is increasing. LGIL'S strategy of providing additional value through bundling additional products and services into its broadband seNice has been a key part of its success with increasing levels of schools taking advantage of the freely available products. Page 15 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Given the above, LGfL has adequate resources to rneet all liabilities as they fall due, and will continue in operational existence for the foreseeable future. Therefore, we have prepared our accounts and financial statements on the basis that the charity is a Going COn￿rn. RE ERVE At the 31 March 2021, LGfL's net assets weie £4.839M lexcluding pen510n liability) which falls to £1.855M after takin9 account of the defined pension scheme liability. As reported in 2019120, LGfL planned for a depletion of reserves and unrestricted funds in 2019120 and 2020121 to enable the modernisation and upgrade of the schools network as part of Pledge 2020 and the continuing investment in product and services improvements to ensure LGfL is competitive in the market it serves. The actuarial assessment and pension liability was , not unexpectedly , much worse than previous years al £2.984M bul this position is expected to irnprove as the econorny recovers from the p8ndemic. Additional and unplanned investment Was required in 2020r21 to meet the needs for iemote leaming and cloud bas8d delivery but growth In incorne elsewhere piovided a welcorne source of funding to meet unanticipated needs. Going fo￿ard, LGfL maintains unrestricted funds and reserves consistent with antiapated commitments in regard to maintaining continuity of service, cyclically refreshing its assets, and ensuring it can Sutvive Major and unforeseen economic shocks and developments., Provide support to education in the event of a material change in govemrnent funding policy in respect to schools, broadband., Provide wnlingenoy for IT related initi81ives', Respond purposely to technology innovab"on,' and Iv) Have capacity to respond to new regulatory burdens. The operating model of LGfL rneans that it needs to continually reinvest a significant proportion of its surpluses into IT infrastructure to ensure the ne￿Ork is kept up to date and able to service the need of participating schools and other customers. The Charity wll look to boost its net assets in 2021122, excepting pension liabilities. to £6M and will generate and retain sutpluses from activities to add to this reserve figure (subject to the ongoing need to Invest in the network and respond to the pandemic) to reduce the dependency on dèferred income to piovide working capital, and to build up funds to SLJPPOrt growth. STRUCTURE GOVERNANCE AND MANAGEMENT The London Grid organisation consists of the following legal entities'.- Name London Grid for Learning Trust status Private, limited by guarantee, no share capital, section 30 of the Companies Act Companies House no. 4205579. Members are London's 33 Local Councils Charit Nurnber 1090412 Private Limited Company Companies House no. 05122783. Wholly owned by London Grid for Leaming Trust. This has now been merged with LGfL following approval to widen the Objects ranted b the Charities Commission and London Councils. Private Limited Company Cormpanies House no 11158329 Wholly owned by London Grid for Leaming Trust Currentl dormant. London Grid Limit•d Let's Get Digital Page 16 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 APPOINTMENT OF TRUSTEES All 33 London Local Authorities are rnembers of the London Grid for Learning Trust Company and are responsible for appointing the Executive Board. TtU5tees are nominated by the Council. Each Member that is a Council may notninate 8 peison a5 a Directoi, who shall be appointed as 8 Notninated Director by 8 resolution of the Directors. The Nominated Directors appoint one or more persons as Directors. Directors are chosen by reference to their relevant qualifications, skills, experience, knowledge, professional, commeraal or community standing and, where possible, their contribution to making the board of Directors appropriately diverse. No Directors are appointed unless their candidacy has been notified to the Members in sufficient detail and in sufficient time to enable any Member so rninded to comment on the proposed appointrnent in writing to LGfL prior to the appointment being made. The company has held Annual General Meetings annually since its inception, to appoint Directors and Audittsis and receive and approve Directors, Report and Accounts. TRUSTEE INDUCTION LGfL recognises that poor corporate govemance and decision making have been the main cause of failure in other charities, and that Trustees have not been effective in these incidences. According to research, much of this ineffectiveness is due to inadequate induction and support offered to Trustees. LGfL reoognises that 8 new Trustee will make a tnuch more subslanlial contribution if their induction is handled effectively and they have the information and skills needed lo undertake their duties effectively. LGfL iecognises that it is vital that new Trustees have all the necessary inft)rmation to make an effective contribution to LGfL's affairs induding". Ensuring that new Trustees are fully conversant with the Articles and Activities of LGfL", Provision of additional relevant material. including Board papers and the statement of accounts., Providing Trustee financial training, which is provided by the Cornpany Auditors., and That Trustees are aware of their legal obligations under Charities Law. including areas such as Public Benefit and Responsibilities of Charity Trustees ICC31. ORGANISATION LGfL's Executive Board of eight members meets around 5 times a year to advise, review and direct strategy and investment plans, and to provide oversight of LGfL's performance. An Audit Committee meets to review the accounting and finanaal management practices of LGfL. The Audit Committee is responsible for reviewing the report from the Exlemal Auditors and for providing assuran￿ to the Board. LGfL is also 8ccountable lo ils members through the active engagement of key st8keholders in the form of Local Authority Officers and school represenlalives who meet regularfy al the London Grid Sector Group. This work is augmented through the lime and effort given by representative stsff who sil on LGfL's Advisory Boards.. The Editorial Board and Safeguardin9 Board. The daY-t￿daY operation of the company is the responsibility of the Chief ExecutNfe, who is accountable to the Board, and the Members. The Chief Executive manages 7 staff. The combined staffing establishment is 38.1 full-time equivalent. In order to facilitate effective operations, the Chief Executive has delegated authorrty for all matters induding finance, ernployment, technology services and commeraal activity. In 2016117, the Articles of LGL were refreshed to ensure they reflected best practice.. contracting arrangements between LGfL 8nd LGfL were captured in an intercornpany 8gr88Tnent betW8en LGfL and Its trading subsidiary. In 2019r20 pemission was granted by LGfL's shareholders, following authorisation from the Charities Commission, to extend the Articles to cover new Objects relating to Well-being and Community Development. This change was ratified in 2020121 following an extraordinary vote by its shareholders. Page 17 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 REMUNERATION The Board of Trustees is responsible for CEO remuneration 8nd the employee salary-m8nagemeNI and benefits framework. CEO remuneration is reviewed 8nd set by the Human Resources subcomrnittee 8nnu811y. The remuneration of staff 15 the ie5ponsibility of the CEO. All staff are appointed under local-govemrnent terms and conditions. Pay grades for Trustee Officers are compaiable wth public-sector employees undertaking similar roles. Remuneration will continue to be scrutinised to ensure value for money and alignment with the market generally. RELATED PARTIES LGfL has a trading subsidiary. London Grid Lirnited. LGfL Trust is the sole shareholder in London Grid Limited ILGL}. LGL provides 8¢cess to Trustnet serviTrs for the wider public sector, particularfy Councils. The LGL Board meets 5 tirnes per year with the Chairrnan, CEO, LGL Officers and a representative of London CIOS on the btsard. An intercompany memorandum ensures that the apprtspriate contracting arrangements are in place between the LGfL and LGL. REFERENCE AND ADMINISTRATIVE DETAILS Name of the Chari London Grid for Learning Trust Charity Registration Number.. 1090412 London Grid for Learning. 9th Floor, 10 Exchange Square. Primrose Street, London, EC2A 2BR. Director8 and Trustee8 The directors of the charitable cotllP8ny Ithe charity) ar8 its trustees for the purpos8 of charrty law. TrLJStees and officers serving during the year and Sin￿ the year end were as follow5". Paul Robinson- Chairman Carmel Littleton- Elected Representative (de￿ased July 20211 Jane McSherry- Elected Representative Gary Hipple- Elected Representative Nick Mitchell- Elected Representative Helen Warner- Elected Representative Sean Green- London CIO Nominee Com an Sèerèta = JohnJackstsn Ke Mana ement Personnel John Jackson Chief Executive OffI￿r Michael Eva- Programme Manager Bob Usher- Content Manager Keith Williams- Interim Head of Finance luntil 19th March 20211 Alan Phillips- Group Financial Gontroller Leeanne O'connor- Customer Manager Richard Martin- Sp￿181 Projects Lead John Bagley- London Grid Limited Paul Smith- Service Delivery Manager Page 18 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Other Relevant Or Com an Menzies- LGFL'S Accounts and Audit Advisors anisations Address and Contact Detai18 Menzies LLP, Centrum House, 36 Station Road, Egham, Surre . TW20 9LF A illex Ltd, One New Street, Wells. Sorneiset BA5 2LA. Lloyds Bank PLC, 83 Clarence Street, Kingston upon Thames Surre KT1 1RE Ashfoids LLP. 1 New Fetter Lane. London EG4A 1AN Hytec Information Security, Calms House, 10 Station Road Teddin ton TW119AA A illex- LGfL's Le 81 Adviser and Data Protection Officei Lloyds Commercial Banking- LGfL and LGL'S bankers Ashfords- S ecialist le 81 advice Hytec- Security and professional advice EXEMPTIONS FROM DISCLOSURE None FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS LGfL holds 2 funds.. - RBC INENI Budget is held on behalf of the Regional Broadband Consortia and there was £69k left in the fund as of the 3110312021 LA Fund Holdings is held on behalf of Local Authorities and there was £80k left in the fund as of the 3110312021. STATEMENT OF DIRECTORS, RESPONSIBILITIES The directors (who are also the trustees ol London Grid for Learning Trust for the purposes of charity lawl, are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each finanaal year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standard5 and applicable lawl. Under company law the directors must not approve the fin8nci81 ststetnents unless they are satisfied that they gwe 8 true and fair view of the state of affairs of the charity and the income and expenditure of thè company for that period. In preparing these finanaal statements, the directors are required to." Select suitable accounting policies and then apply them consistently., Observe the methods and principles in the Charities Statement Of Recommended Practice ISORPI,. Make judgements and estimates that are re8son8ble 8nd prudent.. State whether applicable UK AccoLJnting Standards have been followed, SLJbject to any material dep8rtuies disclosed and explained In the fillan￿al 5tatetnent5", and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy al any tirne the financial position ol the charity and enable them to ensure that the financial statements comply with the Gompanies Act 20(￿. They are also responsible for safeguarding the assets of the (x)mpany and hen￿ for taking re8son8ble slep5 for the prevention and detection of fr8ud and olhei iiregul81ities. Page 19 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 OISCLOSURE OF INFORMATION TO THE AUDITORS Each of the persons who is a trustee at the dale of approval of this report confirrns.. That in so far as they are aware there is no relevant audit information of which the company s auditor is unaware.. 8nd Each trustee has taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. AUDITOR Menzies LLP are deemed to be r&appointed under section 487121 of the Companies Act 2006. STRATEGIC REPORT The company has chosen in accordance with Section 414CI111 of the Companies Act 2006 Istrategic Report and Directors. Report) Regulations 2013 to set out within the Stiategic Report the Company's Strategic Report Information ieqLJiied by Schedule 7 of the Large and MediLJm Sized Companies and Groups (Accounts and Reports) RegLJlation 2008. This indudes information that would have been induded in the business review and details of the principal risks and uncertainties. Approved by order of the members of the board of Trustees and signed on their behalf by.. Do¢uSb3Mdby'. Do¢uS￿dn•dtsy'. Company Chairman Date.. 31 January 2022 Company Secretary Page 20 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST MENZIES INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF LONDON GRID FOR LEARNING TRUST Opinion We have audited the financi81 statements of London Grid for Learning Trust (the 'parenl charitable cornpany'l 8nd ils subsidiaries (the 'group'l for the year ended 31 March 2021 which comprise the Con501idated statement of financi81 activitie5, the Consolidat8d balance sheet, the Company balance sheet. the Con501idated statement of cash flows and the related notes, induding a sutntllary of significant accounting policies. The financial reporting framewotk that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic ol Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the finanaal statements.. give a true and fair view of the state ol the Group's and of the parent charitable company's affairs as at 31 March 2021 and of the Group's incoming reSoUr￿S and application of resources. including its income and expenditure for the year then ended., have been propedy prepared in accordance with Unrfted Kingdom Generally Accepted Accounting Practice, and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 lo provide 8 basis for our opinion. Conclusions relating to going concern In 8uditing the finan¢i81 staternents, we have concluded that the Trustees. use of the going concern b8sis of accounting in the preparation ol th8 financial statements is appropriate. Based on the work we have perfom)ed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concem 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 wrth respect to going concem are described in the relevant sections of this report. other infomiation The other inforrnalion wmprises the infotmalion included in the Annual report other than the financial $181etnenls and our Auditois, report thereon. The Trustee5 are ie5ponsible for the other infortn8tion contained wrthin the Annual report. Our opinion on the financial statements does not cover the othei information and, except to the extent otherwise explicidy stated in our report, we do not express any form of assurance condusion thereon. Our responsibility Is to read the other information and, in doing so, consider whether the other information is materially inconsistent wth 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 inconsistenaes 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 h8ve nothing to report in this regard. Page 21 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LONDON GRID FOR LEARNING TRUST Opinion on other mattèrs prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit." the lnfotmab.on given in the Tru5tees' report induding the Strategic report for the fin8nci81 year lor which the financial statements are prepared is consistent with the financial statements. the Trustees. report and the Strategic report have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exceptSon 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 rnisstatements in the Trustees, report incjuding the Strategic report. We have nothing to report in respect of the following matters in relation to which Companie5 Act 2006 requires us to report to you if. in our opinion.. the parent charitable company has not kept adequate and suffiryent 8ccountiNg records, or returns adequate for our audit have not been received fiotn blanche5 not Vlslted by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns", or certain disclosures of Trustees, remuneration specified by law are not made., or we have not re￿iVed all the information and explanations we require for our audit. Responsibilities of Trustees As explained rnore fully in the Trustees. responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of cornpany lawl are responsible for the preparation of the financial staternents and for being satisfied that they give a true and fair view. and for such inlemal control as the Trustees determine is necessary to enable the preparation of financial slalemenls that are free frorn material misslatemenl, whether due to fraud or erior. In preparing the financial statements, the Trustees ale responsible for 855essing the Group's and the parent charitable company's ability to continue as a going concern, disclosing. as applicable, matters ielated to going concern and using the going contsrn basis of accounting unless the Trustees erther intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Page 22 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LONDON GRID FOR LEARNING TRUST Auditors. responBibilitieB for thè audit of th8 financial statement# Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors. report that indudes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will a￿ayS 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 ol these financial statements. Irregularities, induding fraud, are instances of non-cornpliance with laws and regulations. We design proTrdures in line with our responsibilitie5, Outlined above, lo detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting Irregularities, including fiaud is d&tailed below.. The Company is subject to laws and regulations that directly affect the financial statements including finanaal reporting legislation. We determined that the following laws and regulations were most significant inclLJding the Charities Act 2011, Companies Act 2006, Employment Rights Act 1996. Tax Legislation and the Data Protection Act 2018 We assessed the extent of compliance with these laws and regulations as part of our prO￿dureS on the related financial staternent items. We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to managernent. those responsible for legal and cornpliance procedures and the cornpany secretary. We corroborated our inquiries through our review of board minutes. The engagern8nt partner asse55ed whether the engagement t88m Collective￿ had th8 appropriate competence and capabilities to identify 01 recognize non-cornpliance with laws and iegLJlations. The assesstllent did not identrfy any issues in this area. We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. As a resuh of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:_ posting of fraudulent journals, the aulhorisalion, processing, and payment of fraudulent expenses, fictitious employees and manipulation of revenue recognition. Audit procedures perfortned by the engagement team included.. Identifying and assessirig the design èffectiveness of controls management has in place to prevent and detect fiaud, Understanding how those charged with govemance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,. Challenging assumptions and judgments made by management in its significant accounting estimates., Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,. Reviewing expenditure p8ymentS'. and Reviewing the timing of incorne recognition. A further description of our responsibilities for the audit of the financial slalernenls is located on the Financi81 Reportin9 Council's website at.. www.frc.or kl udito re on This description fortllS Part of our Auditois, report. Page 23 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF LONDON GRID FOR LEARNING TRUST Us8 of our rèport This report is made solely to the charitable companys members, as a body, in accoidance with Chapter 3 of Part 16 01 the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Do¢US￿nId by.. 4F2 Janice Waéttews FCA (Senior statutory auditor) for and on behalf of Menzies LLP Chartered Accountants Statutory Auditor 36 Station Road Egha Surrey TW20 9LF 31 January 2022 Page 24 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 MARCH 2021 As ￿Stated Totèl funds 2020 £000 Unrèstrictèd funds 2021 £000 Total funds 2021 £000 Note Incorne frorn.. Charitable activities Other trading activities Investments 44,389 44,389 22.225 4.884 47 Total incomè 44.389 44.389 27, 756 Expenditure on.. Raising funds Charitable activities 4, 735 24,651 46,S60 46,S60 Totsl expenditure 46,560 46.560 29.386 Net movement in fund¥ before other recogniwl gainBlllosBesl 12.1711 12.1711 12,2301 Other recognised gainslllossesl.. Actuarial Ilossesllgains on defined benefrt pension schemes 25 11.1841 11.1841 967 Net movement in funds 13,3551 13,3551 (1.2631 Reconclllatlon of funds: Total funds brought forward las restated) Net movement in funds 5,209 13.3551 5,209 13.3551 6,472 (1,263) Total funds carried fO￿ard 1.854 1,854 5,209 The Consolid8ted 5tat8rn8nt of financial activities includ85 all gain5 and losses 18cognised in th8 year. The notes on pages 31 to 53 ftsim part of these financial statetnents. Page 25 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST REGISTERED NUMBER: 04205579 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021 As ￿Stated 2020 £000 2021 £000 Note Fixed assets Intangible assets Tangible assets 13 977 1.282 9,956 14 10,204 11.181 71,218 Currènt assèts Debtors Cash at bank and in hand 16 7,004 9,996 3,848 7,920 17,000 11,768 Creditors.. amounts falling due within one year 17 120,5541 112, 170) Net current liabilities 13,5541 (4Q2) Total assets less current IlabllStles 7,627 to,816 Creditors.. 8mounls f811ing due after more than on8 y8ar 18 12.7881 14,0811 Net assets excluding pension liability 4.839 6. 735 Defined benefit pension scheme liability 25 12.9841 11,526) Total net asset8 1.855 5,209 Page 26 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST CONSOLIDATED BALANCE SHEET {CONTINUED) AS AT 31 MARCH 2021 As ￿stated 2020 £000 2021 £000 Note Charity funds Restricted funds Unrestricted funds 19 Designated funds General funds 19 350 388 19 4,489 6,347 Unrestricted funds excluding pension asset Pension reserve 19 4,839 12,9841 6.735 (1,526) 19 Total unrestricted funds 19 1,85S 5,209 Total funds 1.855 5,209 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. DocuS*n•dby.' DocuS*n•d by.. IY4WSgUY4" son Mr Trustee Inson Secretary Date.. 31 January 2022 The notes on pages 31 to 53 ftsmi part of these financial staternents. Page 27 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST REGISTERED NUMBER: 04205579 COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 As ￿Stated 2020 £000 2021 £000 Note Fixed assets Intangible assets Tangible assets 13 977 1.282 9,956 14 10,204 11.181 71,218 Currènt assèts Debtors Cash at bank and in hand 16 7,466 3,623 7,623 17,014 11,246 Creditors.. amounts falling due within one year 17 120,5541 111,634) Net current liabilities 13,5401 (388) Total assets less current IlabllStles 7,641 tQ,8SO Creditors.. 8mounls f811ing due after more than on8 y8ar 18 12.7881 14,0811 Net assets excluding pension liability 4.853 6. 749 Defined benefit pension scheme liability 25 12.9841 11,526) Total net asset8 1.869 5,223 Charlty funds Restricted funds 19 Unrestricted funds Designatèd funds General funds 19 986 3,867 388 6,361 19 Unrestricted funds excluding pension liability Pension reserve 19 19 4,853 12,9841 6,749 (1,526) Total unrestricted funds 19 1.869 5,223 Total funds 1.869 5,223 Page 28 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 MARCH 2021 The Trustees acknowledge their re5pon5ibilities for COTnptying with the iequiietnent5 of the Act with respect to accountin9 recoids and preparation of finanaal statements. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by". Do¢uSb3Mdby'. DoBu8￿n•d by.. 24P2nJ04AF" 714Yr" Mr P Robinson Mr Ipp 08le.' 31 January 2022 The notes on pages 31 to 53 form part of these financial statements. Page 29 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 As ￿stated 2020 £000 2021 £000 Cash flows from operating activities Net cash provided by operating activities 6,560 2.889 Cash flows from Investlng actlvltles Dividends. interests and rents from investtnents Purchase of intangible assets Purchase of tangible fixed assets 47 15211 12,7011 (730) (2.5441 Net cash used In InvestSng actlvltles 13,2221 12,6271 Cash flo￿ from financing activities Repayments of finance leases 11,2621 (250) Net cash u88d in financing activities 11,2621 12501 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 2,076 12 7,920 7,908 Cash and cash equlvalents at the end of the year 9,996 1,920 The notes on pages 31 to 53 form part of these financial statements Page 30 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 General information London Grid for Learning Trust 1042055791 is a piivate chaiitable company limited by guarantee, incorporated in England and Wales. The address of the registered office is disclosed on page 1 and its principal activities described in the Strategic and Directors, Report. Accounting policies 2.1 8asis of preparation of financial ¥tstements The financial ststemenls have been prep8ied in accoidance with the Charities SORP IFRS 1021- Awounling and Reporting by Charities". Statement of Recommended Piactice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20151, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. London Grid for Learning Trust meets the definition of a public benefit entrty under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Consolidated statement of financial activities ISOFAI and Consolidated balance sheet consolidate the financial statemen15 of the ￿MpanY and ils subsidiary undertaking. The results of the subsidiary are nsolidated on a line by line bas1S. Th8 company has taken adv8ntag8 of the 8xemption allow8d under section 408 of the Cornpani85 Act 2006 and has not presented Its own Statement of financial activities in these finanaal statements. The loss for the year dealt with in the accounts of the company was £3,158,998, 12020." £2,798,715). The parent entity satisfies the criteria of being a qualifying entity as defined in FRS102 and as such advantage has been taken not to present a cash flow statement or disclosures in respect of financial instruments for the company or to show separately aggregate remuneration for key management personnel. 2.2 Company status The company 15 8 company limited by guarantee. The members ofthe cornpany are the Directors 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 ofthe company. 2.3 Going eoneèrn The Directors are pleased with the position of the company. The periodic refresh of the systems and infrastructure is complete and there is a stable and expanding customer base for the core broadband service with Schools and local authorities. The Directors anticipate the company to trade profitably for the foreseeable future. There are also sufficient cash reserves. The Directors accordingly consider that the company is a Going Concem for at least fvlelve months from the dale of approval of these financial statements and the accounts are accordingly prepared on the Going Con￿rn basis. Page 31 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl 2.4 Incom• 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 received from Local Authorities and schools for subscriptions and contributions to core activities is recognised in the period to which it relates. Income invoiced in respect of future periods is deferred to that period. Inwme received frorn Local Authorities and schools in respect of Edge connections and servi￿$ is in respect of the set up and provision of bioadband servi￿S. Set up charges are recognised as incurred and annual charges ale recognised in the period to which they relate. Annual charges in iespect of fLrture periods are deferred to that period. Income received in respect of Edge connections and services is expended on infrastructure. Other project income is recognised as receivable. Commissions receivable are recognised as invoiced. Income received for activities that will be Ca￿led out in future periods is carried forwards as deferred income. 2.5 Expenditu Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit to a third party. il is prob8ble that 8 transfer of economic benefits will be required in settlement and the arnounl of the obligation can be me8suied reliably. Expenditure is c18ssified by 8Ctnfity. The costs of each activity 8re rnade LJP of the total of direct costs and shaied costs, induding support cost5 involved In undertaking each activity. Direct Costs attiibutable to a single activty are allocated directly to that activity. Shared costs which contribute to more than one activrty and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of reSoUr￿s. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Fundraising costs represent the trading costs of the company's trading subsidiary. Support costs are those costs incurred directly in support of expenditure on the objects of the company. Expenditure on charitable activitie5 is incurred on directly undertaking the activities which further the Group'8 objectives. as well as any associated support costs. Termination expenditure is recognised a liability 8nd an expense only when the entity is demonstrably committed either." 181 to terminate the employtnent of an ernployee or group of employees before the noirnal retirement date," or Ibl to provide termination benefits as a ￿su￿ of an offei made in order to encourage voluntsry redundancy. Page 32 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl 2.6 Intangibl• assets and arnortisation Intangible assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Amortisation is provided on intangible assets al rates calculated to write off the cost of each asset on a straight- line basis over ils expected useful life. Arnortisation is provided on the following b85iS'. ATnortisation is provided on th8 following basis.. Content and sofiware Over 3 to 5 years straight line 2.7 Tangibl• fixèd assats and daprèciation Tangible fixed assets costing £NIL or more are capitalised and recognised when fLrture economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are Measured at cost less accumulated depreaation and any accurnulated impairment losses. All costs incurred to bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged so as lo allocate the cost of tangible fixed assets less their residual value over their estim31ed useful lives. Depreryation is piovided on the ft>llowing bases.. Fixtuies and rrttings Office equipment Computer equipment 33.3010 Straight line 33.3 /0 Straight line Over 5 to 10 years straight line 2.8 Investments Fixed asset investments are a fomi of financial instrument and are initially recognised at their transaction cost and subsequently measured at lair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured al cost less imp8irmenl. Investment gains 8nd losses, whether realised or unrealised. are oombined and presented as 'G8insllLossesl ON inveslmeNls' in the Consolidated statement of finan¢ial aclivilies. Investtnents in sub5idi8rie5 8ie v8lued at C05t le55 piovision for impaiirnent. Page 33 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl 2.9 Liabiliti•s Liabilities and provisions are recognised when there is an obligation at the Balan￿ sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the cornpany anticipates it will pay to settle the debt or the amount il has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the tirne valLJe of money is material. the provision is based on the present Value of those amounts, discounted 8t the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities a5 a finance cost. 2.10 Finaneial instrumènts The Group only has finanaal assets and financial liabilities of a kind that qualify as basic finanaal instruments. Basic finanaal 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. 2.11 Finance leases and hire purchase Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease terrn and their useful lives. Assets acquired by hire purchase are depreciated over Iheii useful lives. Finance leases 8ie those where 5ubstantl8lly all of the benefits and risks of ownership are assumed by the Group. Obligations under such agreernents ale induded In creditor5. net of the finance charge allocated to future period5. The finance element of the rental payment is charged to the Consolidated statement of financial activities so as to pioduce a constant periodic rate ol charge on the net obligation outstanding In each period. 2.12 Pensions The Group operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 2 De￿mber 2018. 2.13 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the gener81 objedives of the Group and which have not been designated for olhei purposes. De5ign8ted funds comprise unrestricted funds th8t have been set aside by the Trustees for p8rti¢ular purposes. The aim and use of each de51gnated fund Is set out in the notes to the financial 5taternentS. Investment income, gains and losses are allocated to the appropriate fund. Page 34 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Critical aeeounting *stimat•s and arèas of judgèmènt Estimates and judgements are continually evaluated and are based on historical experients and other factors, induding expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will. by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical aceounting •Stimat•s and areas of judgemènt Estimates and judgements are continually evaluated and are based on historical experience and other fadors, induding expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next rinancial year are discussed below. In the opinion of the Trustees the main eslirnale and assumption that rnay have 8 significant risk of causing material 8djustment to the c81rying amount of assets and liabilities Wlthin the next Iinancial year are in relation lo the useful life of fixed as5et5, which are written off In accordance with the amort158tion and depreciation policies set out in note 2.6 and 2.7. The valuation of the pension scheme assets and liabilities is carried out by the scheme actuary based on various assumptions and estimates. Details are given in Note 25. Income from charitsble activities Unrestricted funds 2021 £000 Total funds 2021 £000 Tot81 funds 2020 £000 Main LGfL Income 20,673 598 5.849 17,269 20,673 598 5,849 17,269 19,922 565 LGfL Managed Services Inwme LGL Incorne Bridge the Divide 7. 738 44,389 44,389 22,225 Total 2020 22,225 22,225 Page 35 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Income from other trading activities Income from non charltable tradlng actlvltles Unrestricted funds 2021 £000 Total funds 2021 £000 Total funds 202Q £000 Charity trading income 4.884 Total 2020 4,884 4,884 Expenditure on raising fund8 Fundraising trading expenses Unrestricted funds 2021 £000 Total funds 2021 £000 Total funds 2020 £000 Direct costs Support costs 4,472 263 4, 755 Total 2020 4, 735 4,735 Page 36 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysis of expenditure on charitable activities Summary by fund type As restated Total funds 2020 £000 Unrestricted funds 2021 £000 Total funds 2021 £000 Main LGfL Income LGfL Managed Services Income LGL Incorne Bridge The Divide 23,318 279 5,783 17,180 23,318 279 5,783 17,180 23.301 228 1, 722 46.560 46,560 24.651 Total 2020 as restated 24,651 24,657 Analysls of expendlture by actlvltles Activities undertaken directly 2021 £000 As restated Total funds 202Q £000 Support costs 2021 £000 Total funds 2021 £000 Main LGfL Income LGfL Managed Services Income LGL Incorne Bridge The Divide 21.697 279 1.623 23,320 279 23.301 228 5,334 15,854 449 1,324 5,783 17,178 1, 722 43.164 3.396 46,560 24.651 Total 2020 as restated 22,206 2,445 24,657 Page 37 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysis of expenditure by activities Icontinuedl Analysis of support costs Maln LGfL Income 2021 £000 Brldge The Divide 2021 £000 Total funds 2021 £000 Total funds 202Q £000 LGL Income 2021 £000 Net pension scheme finance coslslincome 38 38 51 Staff costs 623 176 521 1,320 1,378 22 Depreciation RBC Joint Activities 20 Rent, Electricity and Rates Other professional fees Repairs and maintenance Other office costs Insurance Other Goveinance costs 237 67 198 502 535 421 119 351 22 125 17 50 891 55 317 715 18 95 42 98 26 150 21 59 42 18 127 48 14 40 102 71 1,623 449 1,324 3,396 2,445 Total 2020 2,445 2,445 During the year ended 31 March 2021, the company incurred the following Governance costs.. £48k12020". £71 kl included within the table above in respect of Main LGfL Income, £14k in respect of LGL Incomè and £40k in respect of Bridge The Divide Incomè. 10. Audltors, remuneratSon 2021 £000 2020 £000 Fees payable to the company's auditor for the audit of the company's annual accounts 28 27 Fees payable lo the company's auditor in respect of.. All non-audrt services not induded above 11 Page 38 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 11. Staff eosts Group 2021 £000 Group 2020 £000 Company 2021 £000 CoMpa￿Y 2020 £000 Wages and salaries Social security costs Operating costs of defined benefit pension schemes 2,218 242 2,452 214 2,218 242 2.447 204 615 851 615 851 3,07S 3,517 3,075 3,5L)2 Termination costs of £93k12020.' £181kl have been incurred during the year. The average number of persons employed by the company during the year was as follows.. Group 2021 No. Gmup 202Q No. Administrative staff 37 39 The nurnber of employees whose employee benefits {excluding ernployer pension costs) exceeded £60,000 was.. Group 2021 No. Group 202Q No. In the band £60,001 - £70,000 In the band £70,001 - £80,000 In the band £80,001 - £90,000 In the b8Nd £90.001 - £100,000 In the band £140,001 £150.000 Remuneration and benefits received by key management personnel was £1.193k12020' £875kl. 12. Trustses. remuneration and expenses During the year, no Trustees received any rernuneralion or other benefits (2020- £NIL). During the year ended 31 March 2021, no Trustee expense5 have been incuried (2020- £NIL). Page 39 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 13. Intangible assets Group Content & Software £000 Cost At 1 April 2020 Additions 3,547 521 At 31 March 2021 4.068 Amortisation At 1 April 2020 las previously stated) Prior Year Adjustment 2.223 42 At 1 April 2020 las restated) Charge for the year 2,265 826 At 31 March 2021 3.091 Net book value At 31 March 2021 977 Al 31 M8fGh 2020 (8s restated) 7.282 The net book value of assets held under finance leases or hire purchase contracts, included above for the gioLJP and company, are £545k12020'. £785kl. Page 40 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 13. Intangible assets Icontinuedl Company Content & Software £000 Cost At 1 April 2020 Additions 3,543 521 Transfers intra group At 31 March 2021 4.068 Arnortisation At 1 April 202018s previously staled) Prior Year Adjustment 2.219 42 At 1 April 2020 las restated) Charge for the year Tianslers intra group 2,261 826 At 31 March 2021 3,091 Net book value At 31 Maich 2021 977 Al 31 M8fGh 2020 (8s restated) 1.282 Page 41 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 14. Tangibl8 fixed assets Group FixtUTes and fitting¥ £000 Office equipment £000 omputer equipment £000 Total £000 Cost or valuation At 1 April 2020 la5 previoLJsly stated) Piior Ye8r Adjustment 51 41 26.719 931 26.B11 931 At 1 April 2020 las restated) Additions 51 41 27,650 2,695 27,742 2,701 At 31 March 2021 57 41 30.345 30.443 Depreelatlon At 1 April 2020 las previoLJsly stated) Prior Ye8r Adjustment 39 41 18.003 12801 18.083 12781 At 1 April 2020 las restated) Charge for the year 41 16 41 17,723 2,417 17,805 2,433 Al 31 Maich 2021 57 41 20.140 20.238 N•t b¢)ok valu• At 31 March 2021 10,205 10,205 At 31 Mèrch 2020 las ftpstatedj 70 9,926 9,936 Company Fixtures and fitting8 £000 Office equipment £000 Computer equipment £000 Totsl Èooo Cost or valuation Al 1 April 2020 las previously slaledl Prior Year Adjustment 51 26,719 931 26.770 931 At 1 April 2020 las restated) Additions Tianslers intr8 group 51 27,6SO 2.695 27,701 2.701 41 41 At 31 March 2021 57 41 30,345 30.443 Page 42 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 14. Tangible fixed assets Icontinuedl Company leontinu•dl Fixtures and fittings £000 Office equipment £000 Computer equipment £000 Total £000 Depreciation At 1 April 2020 las previously stated) Prior Year Adjustment 39 18,003 12801 18,042 12781 At 1 April 2020 las restated) Charge for the year Transfers intr8 group 41 17.723 2,417 17.764 2.433 41 16 41 At 31 March 2021 57 41 20,140 20,238 Net book value Al 31 March 2021 10,205 10.205 At 31 Mèrch 2020 (as ￿Stated) to 9,926 9,956 The net book value of assets held under finan￿ lease5 or hire purchase contracts, included above for the group and wmpany, are £3.471k12020'. £4,181 kl. Page 43 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 15. Fixed asset investments Principal subsidiariès The following were subsidiary undertakings of the company.. Names Company number Registered office or principal Principal activity place of business London Grid Limited 05122783 9th Floor, 10 Exchange Square Provides the group's Prirnrose Street, London, England, surplus broadband EC2A 2BR capacity lo the public sector. 9th Floor, 10 Exchange Square The company h8s not Prirnrose Street, London, England, yet begun trading. EC2A 2BR Let's Get Digital Limited 11158329 The financial iesLJlts of the subsidiaries for the year were.. Names Nat assèts £000 London Grid Limited Let's Get Digital Limited 114,3001 All the fixed asset investments are held in the United Kingdom. 16. Debtors Group 2021 £000 Group 2020 £000 Company 2021 £000 Company 2020 £000 Due within one year Trade debtors Amounts owed by group undertakings Other debtors Prepayments and 8ccrued incorne Tax recoverable 4,507 1,406 4,507 463 1,069 279 31 1,938 528 31 1,459 952 31 1,937 528 31 1.417 827 7,004 3,848 7,466 3,623 Page 44 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 17. Cr•ditors= Amounts falling duè within onè yèar Group 2021 £000 Group 2020 £000 Company 2021 £000 CoMpa￿Y 2020 £000 Trade creditors 10,563 64 4,984 61 10,563 64 4.454 61 Other taxation and social security Obligations under finance lease and hire purchase contracts 1,292 1,961 6,674 1,261 705 5, 759 1,292 1,961 6,674 1,261 106 5, 752 Other creditors Accruals and deferred income 20,554 12,770 20,554 71,634 Group 2021 £000 Gmup 2020 £000 Company 2021 £000 Company 2020 £000 Deferred income at 1 April 2020 Resources deferred during the year Amounts rele8sed from previous periods 5,627 5,343 (5,627? 5,343 5,856 15,3431 5,612 5,343 (5.6121 5,856 15,3431 5,856 5,343 5,856 5,343 Deferred inwme represents amounts invoiced in respect of broadband charges and other serVI￿S which relate lo future periods. 18. Cr•ditors= Amounts falling duè aftèr morè than on• y•ar Group 2021 £000 Group 2020 £000 Company 2021 £000 Company 2020 £000 Net obligations under finance lease and hire purchase contracts 2,788 4,081 2,788 4,081 Page 45 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 19. Staternent of funds Statèmènt of funds- curr•nt yèar Balance at 1 April 2020 las restatedl £000 Transfers inlout £000 Galnsl Balance at 31 (Losses) March 2021 £000 £000 Income £000 Expenditure £000 Unrestrictèd funds Designated funds Pan London Adrnissions 388 598 12791 13571 350 General funds General Funds Non-charitable trading funds Pension reserve 6,361 43,792 146,0071 357 4,503 1141 11,5261 12741 11,1841 12,9841 4,821 43,792 146,2811 357 11,1841 1.505 Total Unrestricted funds 5,209 44,390 146,5601 11,1841 1.855 The trustees have set aside surpluses generated from the Pan London Admissions activrty for the enhancement of this service. Page 46 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 19. Staternent of funds Icontinuedl Statèmènt of funds- prior yèar As restated Balance at 3? March 202Q £000 Balance at l April 2079 £0( As ￿stated Income £000 As restated Expenditure Transfers in/out £000 Gainsl (Losses) Unrèstriet funds Designated funds Pan London Adrnissions 373 565 1193) (357) 388 Gèn•ral funds Gener81 Funds 7,912 21, 708 (23.616) 357 6,361 Non-charilable trading funds Pension reserve 50 4,884 (4.948) (630) (14? (7,526) (1,863) 967 6.099 26,592 129. 194) 357 967 4,821 Total Unrestricted funds 6,472 27, 157 (29,387) 967 5,209 20. Summary offunds Summary of fund8 - current year Balance at 1 April 2020 las restatedl £000 Transfers inlout £000 Gainsl Balance at 31 ILossèsl March 2021 £000 £000 Ineom* £000 Expènditurè £000 Designated fvnds General funds 388 4,821 598 43,792 12791 146,2811 13571 357 350 1,505 11,1841 5,209 44,390 146,5601 11,1841 1.855 Page 47 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 20. Summary of funds Icontinuedl Summary offunds - prior ￿ar Balance at 37 fvlarch 2020 £000 Balance at l April 2019 £000 As ￿stated Income £000 As restated Expenditu Trnnsfers in/out £000 Gainsl (Losses) Designated funds General funds 373 565 (193) (29. 194) (357? 357 388 6.099 26.592 967 4.821 6,472 27, 157 129.387) 967 5,2Q9 21. Analysis of net asset8 b8tween funds Analysis of n•t assets ￿t￿ètA funds- eurrènt yèar Unr•striet•d funds 2021 £000 Total funds 2021 £000 Tangible fixed assets Intangible fixed assets Current assets 10,204 977 17,000 120,5541 12.7881 12.9841 10,204 977 17.000 120.5541 12.7881 12,9841 Creditois due within one year Credilois due in more than one year Provisions for liabilities and charges Total 1,855 1.855 Page 48 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 21. Analysis of net assets b8tween funds Icontinuedl Analysis of nèt assèts ￿t￿è•n funds- prior y•ar Unrestricted funds (as stated) 2020 Total funds 202Q £000 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Piovisions lor liabilities and chaig8S 9,936 1,282 11,768 (12, 170) (4,087) (1,526) 9.936 1,282 tl,768 (12, 170) 14,0811 11,5261 Totsl 5,209 5,209 22. Reconciliation of net movement in funds to net cash flow from operating activities Group 2021 £000 Group 2020 £000 Net expenditure for the year las per Staternent of Financial Activities) 12,1711 (2.2301 Adjustments for.. Depreciation charges Amortisation charges Decreasellincreasel in debtors Increase IN creditors Current pension service costs Defined benefit pension scheme contributions paid Net interestlfinance cost Interest receivable 2,433 826 2,062 811 13,1561 8,353 615 13781 38 255 1.4Q8 851 (272) 51 (47) Net cash provided by operating activities 6,560 2.889 23. Analysls of cash and cash equlvalents Group 2021 £000 Group 2020 £000 Cash in hand 9,996 7,920 Total cash and eash equivalents 9,996 7,920 Page 49 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Analysis of ehangès in nèt dèbt At 1 April 2020 At 31 March 2021 £000 Cash flows £000 £000 7,920 15,3421 Cash al bank and in hand Finance leases 2,076 1,261 9.996 14,0811 2.578 3,337 5.915 25. Pension commitments The Group operates a defined benefit pension scheme. Piincipal 8duarial 85sumplions 81 the Balan￿ Sheet dale (expressed as weighted 3vei8gesl'. At 31 March 2021 At 37 March 2020 Discount late 2.05 2.30 Future sa18ry increases Future pension increases 3.20 2.05 2.20 The trust is an admrtted body to the Royal Borough tsf Kingston upon Thames Pension Fund, a mu￿1-eMployer pension fund in which there are many participating employers. The disclosures relate to the funded liabilities within the Royal Borough of Kingston upon Thames Pension Fund Ithe 'fund'l which is part of the local govemment pension scheme. London Grid for Learning Trust I'LGFL'I participates in the fund which provides defined benefits, based on members, final pensionable salary. In accordance wth Finanaal Reporting Standard 102 disclosure of certain inforrnation concerning assets. liabilities incorlle and expenditure relating to pension schemes is required. The Employei's iegu18r contributions lo the Fund foi the accounting period to 31 Maich 2022 are e51im8ted lo be t314,000. In addition, Stiain on Fund Contributions may b8 required. The latest actuarial valuation of LGFL'S liabilities took place as at 31 March 2016. The prinupal assumptions used by the independent qualified actuaries in updating the latest valuation of the fund for FRS102 purposes are detailed below. LGFL employs a building block approach in detemiining the rate of retum on Fund assets. Historical markets are studied and assets with higher volatility are assumed to generate higher returns consistent with widely accepted capital rnarket principles. The assurred rate of return on each asset class is set out within this note. The overall expected rale of relum on assets is then derived by aggregating the expected return for each asset class over the 8du81 asset allocation for the Fund at 31 M81¢h 2016. Page 50 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 25. Pension commitments Icontinuedl The Group's share tsf the assets in the scheme was". At 31 March 2021 £000 At 37 March 2020 £000 Equities Bonds Property Cash 6,934 4,810 7.415 354 495 578 674 Total fair value of assets 9,630 7,074 The actual retum on scheme assets was £167k (202Q- £182k). The amounts recognised in the Consolidated statement of financial activities are as follows.. 2021 £000 2020 £000 Current service cost 580 821 Past service cost 35 30 Interest income Interest COSt 11671 205 1782) 233 Total amount recognised in the Consolidated statement of financial activities 653 902 MoveTnents in the present v8lue of the defined benefit obligation weie 85 follows.. 2021 £000 2020 £000 Opening defined benefit obligation Current service cost 8,599 580 9.266 821 Interest cost Contributions by scheme participants Actuarial lossesllgainsl Benefits paid Past service costs 205 163 233 154 3,158 11261 35 17, 175) 1730) 30 Closing defined benefit obligation 12,614 8,599 Page 51 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 25. Pension commitments Icontinuedl Movements in the fair value of the Group's share of scheme assets were as follows". 2021 £000 2020 £000 Opening tsii value of scherne assets Expected retum on as5et5 Actuarial gainslllossesl Contributions by employer Contributions by scheme participants Benefits paid 7,074 167 782 1,974 378 (808? 272 163 154 11261 (730) Closing fair value of scheme assets 9,630 7,074 26. Operating lease commitments At 31 March 2021 the Group and the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows.. Group 2021 £000 Gmup 202Q £000 Not later than 1 year Latei than 1 year and not18ter than 5 years 392 39 1,567 1,959 39 The following lease payments have been recognised as an expense in the Statement of finanaal activities.. Group 2021 £000 Group 2020 £000 Operating lease rentsls 1,959 330 27. Prior ￿#r adjustments Fixed assets for the year to 31 Maich 2020 have been amended to capitalise all the installation costs in respect of the implementstion of the Pledge 2020 network upgrade programme previously written off to the Statement of Finanual Activities. The total amount of additional costs capitalised was £931 k on which additional depreciation of £60k was charged, increasing the value of funds brought forward by £871 k. A prior year adjuslmenl has also been made for net depreciation and amortisation overcharged in 2020 of £296k, increasing the value of funds brought forward by the same amount. Page 52 Docusign En¥ÈlopÈ ID." 7FE8B838-OF1C-42BA-A597-F6908A1E006D LONDON GRID FOR LEARNING TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 28. Related paty transactions Due to the nature of the Trusvs operations procuring servi￿$ on behalf of the Local Authorities and the composition of the Board of Directors drawn from the Local ALrthorities it is inevitable that transactions take place with organisations in which the directors have an interest. No speafic transactions have been identified where a director has an involvement and which should be disclosed as a related party transaction. At 31 March 2020 the Trust was owed £462k12020'. £279kl by its subsidiary cornpany London Grid Limited. Donations to the Trust by London Grid Limited in respect of the year arnounted to £Nil12020.' £nill and managerllent charges to London Grid Limited by the Trust amounted to £Nil 12020.. £524kl. Pertnission has been obtained from the Charity Commission in order to pay for the piofe5sional services of the Chairman IP Robinsonl. During the year £8,100 induding expenses were paid foi these services12020". £7,8381. No emoluments or expenses were paid to any other director during the current or preceding year. The Trust has indemnity insurance and insurance to indemnify the directors and employees of the Trust costing £16k12020- £17kl for the period. Page 53