Registered number.. 04579498 Charity number.. 1102186 EDUCATION POLICY INSTITUTE TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
EDUCATION POLICY INSTITUTE
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 7 |
| Independent Auditors' Report on the Financial Statements | 8 - 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 15 - 25 |
EDUCATION POLICY INSTITUTE REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Trust••s Sir Paul Marshall. Chair Baroness Morgan ol Huyton Mr Charles Brand Dr Kitty Stewart Sir Michael Wilshaw Lord Nash Company rggistered number 04579498 Charity registsred number 1102186 Registered offl¢ 150 Buckingham Palace Road London SW1W 9TR Company Sècretary Mr David Laws Executive Chaimian Mr David Laws Chiaf Executive Officar Ms NalalE Perera Independent auditors Calders {18831 LLP Chartered Accountants and Statutory Auditors 30 Orange Stréet London WC2H 7HF Page 1
EDUCATION POLICY INSTITUTE TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees who are also directors present their annual report logelherwith the audited financial statèments of the charity for the 1 April 2021 to 31 March 2022. The Trustees Report serves the purposes of both a Trustees, report and a directors, report under company law. Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Rert required ol medium and large companie5 under the Companies Act 2006 Istralegic R8port and Directors, Reportl Regulations 2013 has been omitted. Objectives and activitie$ a. Policies and objectives Policies and Objectives.. The principal objects of the charity are non-partisan advanment of education of the public in the econ¢rnie, social and political sciencès and their effect on publiG policy and the policy-rnaking process in the UK and th8 piomotion of objective research. and any othèr purposes deerned charitable under the law of England and Wales. There have been no change5 in the objectives since our last Annual Report. The Trustees ¢onfirm that they have referred lo thè guidance contained in the Charity Commission's general guidance on public benefit, and the duties sel out in Sèction 17151 of the charib.es Act 2011, including the guidance"Public Benefit.. Running a Charity,. b. Pltain a¢tivltl•s undertaken to further the charity's PUTpose5 for the public benefit Main activities undertaken lo further the charills purposes for the public bènefil.. Our main activities and how we try to achieve our principal objectives lor the benefrt of the public are described below. All OLsr charitable activthes locus on the advancement of educalion of the public in the UK and are undertaken to further our charitable purposes for the public benefit. Achievements and performance a. Revlew of activities 1st April 2021 to 315t March 2022. The Education Policy Inslilule is an independant. impartial and evidenee-based research inslilule, which aims lo promote high quality education outcomes, regardle55 of social background. Vve continue to use quantitative 8nd other rnethods lo analyse all phases of education in England. to help policy niake15 and practitioners to adopt more effectivè strategies lo impiove outcomes. We particularly fwus on policy challenges relating to the long ail" of low attainment, and we seek to promote policy solutions whith Glose the education gap between vulnerable children and adults, and the rest ol the pupil and adult population5. Wo are also interested in non- attainment relaled education and child development Issue5. 8nd we have an important strand of work on chih wellbeing and mental health. 2021122 was a year in which normal work pallerns continued to b& disrupted by the 9lobal pandemic, bul EPI staff coped effectively wrth these challengès, moviro some work into the home environrnent and making more use of virtual communications. EPI has Gontinued lo produce a wde variety of research work on an extensive range of issues, and has been called lo give evidence lo parliamentary Committees. Our work has had significant impact through thg media and other routes. We have had a large programme of evènts, rtsundtables and conferences. Page 2
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achievements and performance Icontinuèdl Review of actlvltl&s l¢ontinuedl This year we continued our important research project partnèrship with Renaissance Learning. This'has helped to provide one of the most accurate and timely sources of information about the impacts of Covid disruption on education outcomes. The research has been us6d extensively by govemmenl lo inform analysis and policy responses. Stsff have produced numerous research Teports and analysis during tha ygar. The rnajor publications indude.. "Preliminary research findings on education recovety, IApril 20211. 'The effect5 of high qualty professional devalopmenl on teachars and students" (April 2021}. 'Educalion recovery and resilience.. recommendations for government (May 2021). "Leaming108s research.. understanding lèaming loss in the 202(Y21 academic yearf, lJuly 20211. "Comparing edLLation catch up spending within and outside the UK" lJuty 20211. 'A narr<)wing path lo succes$7 16-19 curriculum breadth and employment outcomes" (September 20211. "Measuring efficiency in school groups.. working p8perf' (September 20211. "Education recovery and resilience: Phase 2 report, {Octokr 20211. "School èffici8nw': part 1 and part 2" INovemb¢r 20211. "Educational Outcomes of rèfugee and asylum seeking children in England" (December 20211. School efficiency part 3" (December 20211. "Learning loss in the 2021122 Autumn Temi" (January 20211. 'Annual Report on the Disadvantagsd Gap" (February 20221. "School outcomes in E5se*' (March 20221. "Impact of COVID on social and emotional development" (March 20221. Page 3
EDUCATION POLICY INSTITUTE TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2022 Achievemenls and performance Icontinuedl b. Investmant policy and performance The ¢harily has no investments apart from bank déposlLS and the Trustees consider this as the appropriate vehicle for holding ts funds. Financlal revlew a. Going concem Afler rnaking appropriate enquiries, the Trustees have a reasonable expectation that the ch8rily has adequate resources to continue in operational existence for the foreseeable fvlure. For this reason, they continue tts adopt the going con¢ern basis in preparing the fin8ncial statements. Further details Tegarding the adoption of the going concern basis can be found in the accounting policie5. b. Future Developments The Covid-19 pandemic eontinued lo disrupt usual Offi operatickns and in person engagement in 2021r22. 11 is t(K) eady to know whelherthe disruptn will continue into 2022123. EPI staff will work flexibility, with a mixture of in officelat home wort(, in order to comply w(th Covid guidance while working as effectively as possible. Since 2016. EPI has received annual, unrestricted. grants from the Sequoia Foundation. In recent years, the level of these grants has been declining, as EPI move5 towards b$in9 financially sustainable without Teliance on unrèstricted Sequoia grants. However, the foundation has awarded further signifan1 fvrther fvnding in 2022 and 2023 to support specrfic areas ol work. ¢. Resarv8s policy It is the policy of the Trustées that reserves are mwnlained at a level lo finan forecast future i)perations ol the harily. The Trustees havg (>btained confirmation of ongoing funding support from ils main donor. Page 4
EDUCATION POLICY INSTITUTE TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Flnancial review Icontlnuedl d. Summary of income and expenditure The charity's restricted income during the reporting year was £592.595 {2021." £310.1971. Al the same lime r&stricled expenditure increased lo £280,790 {2021.' £264,1971. The charitys unrestricted income during the rèporting year was £1,189.63312021'. £1,025,8501. Al the Same lime unr6slri¢ted expenditure decreased to £1,054,133 (2021." £1,113.6781. Total voluntary inrne increased lo £957,59512021.' £846,901). Income frcim our rèsearch. sponsored events and mèmbership subscriptions increased lo £823.9Q712021.' £488,217}. The main item of toial expenditure related lo staffirtg and payroll costs of £1.136,52612021'. £1,170,798}. e. Principal funding Ongoing financial managèment is the responsibilty ol the Trustees. The annual budget is approved by the Trustees. stat8nts ale presented to the Trustees, viith explanations provided for variations from budgeL The principal sources of funding are grants fiom a number of charitable Irusls and sponsorship income for research, events and corp)rale subscriptions. f. Research interns It is the Instilule's policy lo pay research intems. typically working lor befvleen 1- 3 rnonlhs. at the London Llg Wage. Structure. govèrnance and management a. Constilution Education Policy Institute is a charitable company limited by guarantee, incorporated on 1st November 2002 and registered as charity number 1102186 tsn 19th February 2004. The company was estsbli5hed undei a Memorandum olAssoaation which established the objects and powers ol the Gharitable company and is governed by its Articles of A550cialion. Since May 2016 the operating name and identity h4 been the Education Policy Inslitule. b. Methods of appointment or èlèction of Trustees Trustees are elected by 8 simple majority of all the Trustees enlilled lo attend and vote at any meeting of the Board. Trustees are appointed by recommendation and informal interview processing and approval by the full board. There is currently no formal policy of training and induction in place for new Tru51ees. However, all current Trustees have extensive experience of legal issues relating lo charities and are also advised by the Company Secretary on su¢h matters. Should the need lor a more formal policy arise. this will be considered by Ihe Trustees. P8ge S
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT ICONTINUEDI FOR THEYEAR ENDED 31 MARCH 2022 structure, governan¢e and managèmènt (continued) c. Organi5atlonal structure and decision.making polacias The current Tru51ees of the charity are also directors of the charity for the purposes of Ihe Companies A¢L The Trustees arg responsible for sètting the overall strategy of the charity and ensuring that the charitable purposes are adhered lo and they relain overall responsibility for the Tunning of the charity and delegation to relevant commiltees andlor sub Boards, es appropiiale. Thtr Trustees rneet quarterly. Members ol the Advi50ry Board provide input and advice on 8n ad hoc basis. Members of the Advisory Board include academics, commeritators, education practitioners and senior parliamentarians. d. FÈnancial risk Management The Trustees have assessed the major risks to which the charity is exposed and are satisfied that all risks have been addressed and, where appropriate, systems are in place to mitl9ate the exposure to major ri3ks. statement of Trustees. responsiblliti95 The Trustee5 (who are also the directors of the charity for the purptsses of company lawl are rèsponsib for preparing the Trustees, Report and the financial statetllenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the Twstees to prepare financi81 st8temenls for each financial . Under company Lgw, the Trustees must not appfove the finanal statements unless they are satisfied that they give a true 8nd fair view of the st8te ol affairs of the charity and of ts incoming resources and application of resources, including its irn¢ome and expenditure, lor that period. In preparing these financial slalements, Ihe Trustees are required lo.. select suitable accounting policies and then appty them consi51enlly", observe the methods and principles ol the Ch8rilte5 SORP IFRS 1021", mak& judgments and accounting eslimales that are reasonable and prudent.. stale wheth8r applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departur8s disclosed and gxplainèd in the financial slatemenls., prepare the financial slalernents on the going concein basis unsS rft is inappropriate lo presumo that the charity will ¢ontinue in businoss. The Trustees 81$ responsible for k&6ping adequate accounting records that are sufficient lo show and explain the chariws transactions and disc105e with reasonable accuracy at any lime the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also rèsponsible for safeguarding the assets of the Charity and hence for taking asonable steps for thè prevenlDn and detection of fraud and other irregularities. Disclosure of infomiation to auditors Each of the persons who are Trustees at Ihe timè when this Trustees, Raport is approved has conlinied th8L so fai as Ihal Trustee is aware, there 15 no relevant audit information of which the Charitys auditors ar unaware. and that Trustee *as taken all the steps Ih8t ought to have been taken as a Trustee in order to be aware c)f any relevant audit information and lo establish that the charity's auditors are awaré ol that information. Page 6
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Auditors Thè auditors. CaldeTS118831 LLP, have indi¢ated their willingness to continue in offi. The designated Trustees will propose a motion reappointing the auditors al a meèting of the Trustees. Small companies note The Trustees, Report has been prepared in accordance wlth the provisions appIable to companie5 subject lo the small comp8nies' regirne. Approved by order of the members of the board of Trustees on 18 October 2022 and signed on their behalf by.. Slr Paul Marshall {Chalrl Trustee Pagé 7
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE Oplnion We have audited the financial siatemenls ol Education Policy Institute Ith8 'chaiity'l for th8 year ended 31 March 2022.which comprise the Slalemenl of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes. including a summary of significant accounting policies. The financial reporting framework that has been applied in their prèparation is applicable law and Uniied Kingdom Accounting Standards, Including Financial Reporting Standard 102'Th& Financial Reporting Standard applicable in the UK and Republic of Ireland, Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the stale of the charitabk companls affairs as at 31 March 2022 and of its ncoming resources and application of resources, induding ts income and expenditure for the year then ended., have been properfy prepared in accordance with United Kingdom GenerallyAccepted Accounting Practice., and have been prepared in accoidance with the requirements of the Companies Act 2006. 8asis or oplnlon We conducted tsur audit in accordance with International Standards on Auditing IUKI IISAS IUKI} and applicable law. Our responsibilities undèr those standards are further described in the Auditors. responsibilities for the audit of the financial slalemenls section ol our report. We are independent of the charilable company in accord8n¢e with the ethical requirements that are relevant to our audit of the financial slatem8nts in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilitie5 in accordance with these requirements. We bèlièvè that the audit evidence.we have obtsined is sufficient and appropriate lo provKJ8 a basis for our opinion. Conclusions relating to going concern In auditing thè financial slalemenls, we have concluded that the Trustees, u5e.of the going concem basis of accounting in the preparation of the financial slalements is appropriate. Based on the work we have performed: we have not identified any material uncertainties relating lo events or condilitsns that, individually or wlleGlively. may cast signifKanl doubl on the charitable company's ability lo continue as a going concern for a period ol al least tw&lvè months from when the finawi)1 stem&nls are aulhorised for issue. Our responsibilities and the responsibilities ol the Trustee5 Wth rÈspect to going concem are described in the relevant sections of this report. Page 8
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EDUCATION POLICY INSTiTUTE ICONTINUEDI Other infomiation The other infom8tion compTises the infomialion included in the Annual Report other than the financial stslemenls and our Auditors, Report Ihereon. The'Truslees are responsible for the other information contained within the Annual Report. Our opinion on the finan¢ial statements 5 not cover the olher infomation and, except to the extent othenlSe explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our re5ponsibillty 15 to read the other infomialion and, in doing so, ¢onsHJerwhether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially rni5slated. If we identify such material inconsistencies or apparènt mat8ri81 misstatem8nts. we are required to determine whether this gives rise to a material misslatemenl in the financial slalemenls themselves. If, based on the work we have perfoirlled, we conclude that there is a material misstatement of this other infomiats'on, we are required to rèport that fact. Wo have nothing lo rewrt in this regard. Opinign on other matters pr8$¢ribgd by the Cornpanies Act 2006 Irj our opinion, based on thg work undertaken in the course of the audit.. the infomialion gTven in the Trustees. Report for the financial year forwhich the financial slalements are prepared is consislenl with the financial slalements. the Trustee5' Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of our knovAedge and understanding of the chariiable company and ils environment obtained in the course of the audit. we havè not ident5fied rnaterial misslalemenls in the Tr¢Jslees' Report. We have nothing to report in resped of the following matters in relation to which Compani6s Act 2006 requires us lo report lo you rf. in our opinion.. adequate accounting records have not been kept. returns adequate for our audit have not be&n received from branches not visited by us., or the 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 received all the information and explanations we require for our audtr, or the Trustees were not entitl to prepare the financial statements in accordance with the small companies regime and lake advantage ol the small companies, exemptitsns in preparing the Trustees. Report and from the requirement lo prepare a Strategic Report. Page 9
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE ICONTINUEDI Responslbilities of trusteas As explained more fulty In the Trustees. Responsibilities Slalemen[ the Trustees (who are also the diredors of the charitable company for the purposes of company lawl are responsible for the preparation ol the financial statements and for being satisfied that they give a true and fair view, and for such inlemal control 8s thè Trustees determin8 is necèssary to enable the preparalion of fin8nGial stalèmènls that are free from material misslatemenl, whether due to fraud or èrror. In preparing the financial slatemenls, thé Trustees are responsible for assessing the chaiitable companls abilty to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of a¢counting unless the Trustees erther intend lo liquidate Ihe charitable company 01 lo cèasè operations, or have no realistic altèmative but lo do so. Auditors. responslblllties for the audit of th6 flnanclal statements Our objectives ere to obtain reasonable assurance abc•Ut whether the financial statements as a wholo are free from material misst8teTllent, whelher due lo fraud or error, and to issue an Auditors. Report Ihal includes our opinion. Reasonable assurance is a high level of assurance, bul Is not a guarantee that an audit conduded in accordance with ISAS IUKI will always deteet a malerial misslalement when il exists. Misslalemenls can arise from fraud or error and are considered material if, individually 01 in the aggregate, they could reasonably be expected to influence the economic decisions ol users taken on the basis of thèse financial stalemenls. Irregularities, including fraud, are instances ol norrtompliance with laws 8nd regulations. We design procedures in line with our responsibilities, outlined above, to detect material misslalernents in respect of irregularilies, including fraud. The 8xEant to which our procedures are capable of delecling irregularities, including fraud is detailed below.. Discussions with and enquiries of rnanagement and those charged with governance were held wth a VI to identifying thos8 laws and regulations that could be expected to have a material impact on the finarKial slatemenls. During the engagernent team briefing, the outcomes of these discussitsns and enquiries were shared with the team, as well as consideration as to wher& and how fraud may occur in the entity. The following laws and regulations were identified as being of sIgnl¢3n¢tt to thè entity.. Those laws and regulations considered to h8ve a direct effect on the finanual ststemenls include UK financAal reporting standards, Company Law, Tax and Pensions legislation. With regard5 to laws and regulations relating to the opèrating aspects of the charitable company, tl*se were discussed wrth management and were not considered fundamental to the operating of the charitythefefortr should not have a rnalerial impact on thè financial slalernent5. Audit procedures undertaken in response lo the potential risks relating to ITregularilies (which inclydtr fraud and non-compliance with laws and regulations) comprised of." inquiiies trf management and those charged with governan as to whether the entity complies with such13ws and regulation5'. enquiries with Ihe same concerning any actual or potential litigation or claims,. inspection of relevant legal correspondenca., testing the approprialene55 Qf journal eniries., and the performance of analytical review lo identify unexpected movements in account balances which may be indiealive of fraud. Page10
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE ICONTINUED) Audltors, responsibilities for the audst of the financlal statements Icontinuedl No instances of material non-compliance were idèntified. However. the likelihood of delscting irregularities. induding fraud, 15 limited by the inherenl difficulty in detecting irregularities, the effectiveness of the entity'5 contro15, and the nature, timing and extent of the audit prooedures performed. Irregularities that resutt from fraud might be lnhenUY more diffieutt to delecl than irregularities that result from error. As explainèd above, there is an unavoidable risk th8t material misslalements may not be detected, even though the audrft ha3 been planned and perforrned in accordance with ISAS IUKI. A fvrther description ol our responsibilitiés for the audit of thè financial statements is located on the Financial Reporting Council's website at." www.frc.or .ukJauditor5res onsibilities. This description fomis part of our Auditors, Report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chaptèr 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo th8 charitable company's mÈmbeis those matters we are required to slate lo them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibilily to anyone other than the charitable company and its memb.èrs, as a body. for our audit work, for this report: (Y for the opinions we have formed. 05 1É93 kP" T Badiani (Senior Statutory Auditor) for and on behalf of Calders118831 LLP Chartered Accounlanls and Slatulory Auditors 30 Orange Street London WC2H 7HF 18 October 2022 Page11
EDUCATION POLICY INSTITUTE STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME ANO EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Restricted Unrestricted fund$ funds 2022 2022 Total funds 2022 Total fvnds 2027 Note INCOME FROM: Donations. grants and legacies Charitable activities Invéstments 592,595 365,000 823,907 726 95T,595 823.907 726 845,901 488.211 929 TOTAL INCOME 592.595 1.189,633 1,782,228 1,336,047 EXPENDITURE ON: Raising funds .' Management operations, fundraising and comrnunicalions Charitable activities 128,894 925,239 128,894 1,206,030 90,895 1,286,98Q 280,790 TOTAL EXPENDITURE 280,790 1,054,133 1,334.923 1,377,875 NET MOVEMENT IN FUNDS 311,805 13S.SOO 447,305 (47,828) RECONCILIATION OF FUNDS- Total fund5 brought forward Net movement in funds 109.991 311.80S 798.948 135.500 908,939 447,305 950.767 141,828) TOTAL FUNDS CARRIED FORWARD 421,796 934,448 1.356.244 908,939 The nr)tes on pages 15 to 25 fomi part ofthese financial slalements. Pa9e 12
EDUCATION POLICY INSTITUTE REGISTERED NUMBER: I)4579498 BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 Nota FIXED ASSETS Tangible assets 10 6,261 8. 130 6.261 8, 130 CURRENT ASSETS Debtors Cash al bank and in hand 457,537 1,080,782 234.598 827,501 1.538,319 1.062,099 Creditors.. amounts falling due within one year 12 1188.3361 (161,290) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 1,349,983 900,809 1.356,244 908,939 1.356,244 908.939 TOTAL NET ASSETS 1,358,244 9Q8,939 CHARITY FUNDS Reslricled funds Unre31ricled funds 421,796 934,448 109,991 798,948 TOTAL FUNDS 1,356,244 908.939 The financial statements have been prepared in accordance with the provisions applicable lo enlrties Subject to the small companies regime. The fsnancial 51alements were approvèd and aulhorised for issue by the Trustees on 18 October 2022 and signed on their behalf by. Slr Paul Marshall (Chairl Trustee The notes on pages 15 10 25 lomi part of these finan¢ial statements. Page 13
EDUCATION POLICY INSTITUTE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Net ¢8sh used in oper8tlng a¢livilie5 2S6.284 (46.726) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of tangib fixed assets Interest from investments {3,7291 726 (4, 763) 291 NET CASH USED IN INVESTING ACTJVITIES 13,0031 14A721 CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR 253,281 ISl.198} Cash and cash equivalents al the beginning of the year 827.501 878,699 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 1,080.782 827,501 The notes on pages 15 to 25 forrn part ol these financial ststements Page 14
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies 1.1 Ba$ls of preparation of financial statements The financial statements have been Prepared in accordance with the Charities SORP IFRS 102} Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities prèparing their accounts in accordanca with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial R8porting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Education Policy Inslilule meets th& definition of a publi¢ benefit enlty under FRS 102. Assets and liabilities are initialty recognised at historical cost or transaction value unlass otherwise slated in the rèlevant accounting policy. 1.2 Going concern The eharty's main donor has provided confirrralion that it will continue lo provide financial support to the charity for al least 12 months from the signin9 of thè financial stslemenls. The Trustees therefore consider that f( is appropriate lo adopt the going concern basis for the preparation of the financial stalemenls. 1.3 Compat)y status Th8 charity 18 a company limited by guardntee. The members of the company are the Trustees named on page 1. In the event ol thè charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. 1.4 Fund accounting General funds are unrestr¢ted funds whh are available for use at the discretion of the Trustees in furtherance of the general objectives of the ¢harty and which have not been desKJnaled for other purposes. Restricted funds are funds which are lo be used in accordance with specrfic restrictions imposed by donor5 or which have been raised by the charsty for particular purposes. The costs ol raising and adrninislering such funds are ¢h8rged against the specifi¢ fund. The aim and use of each restrictèd fund is set out in th& not&5 to the financial slalemènt5. Investment income, gains and losses ara allocated lo the appropriate fund. 1.S . Incom8 All income is recognised once the charity has enlillemenl lo thè income, Il is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Slalemenl of Financial Activities on a receivable basis. The bance of incorlle reIVed lor specific purptsses bui not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is rec&ived in advance ol entitlement ol reipt, ts recognition is deferred and included in creditors as deferred income. Wh&rÈ enlillement occurs before income is received, the income is accrued. Income tsx recoverable in relation to investment income is recognised 'al the time the investmgnt income is receivable. Page15
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting pollcles Icontinuedl 1.6 Expendire Expènditure is recognised once there is a legal or constructive obligation to transfer economi¢ benefil lo a third p8rty, it is probable that a transfer of economic benefi15 will be required in settlement and the amount ol the obligation can be measured reliably. Exp8nditure is classified by activity. The costs ol each activity are made up of the lolal of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs altribulable to a singl8 a¢tivily are allocated directly lo that activity. Sharèd costs which contribute lo more than one activity and support costs which are not altributable lo a single activty are apportioned between those activities on a basis congistent with the usè of restsurces. CenlraS staff Costs are allocated on the basis of time spent, and dep[eCalL0n charges allocated on the portion of the asset's use. Support costs are those costs inCUrd direcily in support of expenditurg on the objects of the ¢harity and include projèct management. Govern4n¢e costs are Ih05e incurred in connection with administration of the ¢haiity and compltance with constitutional and statutory requiretnellts. Costs of generating funds are costs in¢urréd in attracting voluntary income. Charitable adivilies and Governance costs are costs incurred on the charity's operations, including support costs and costs relating to the governance of the charity apportioned to charitable adiwlies 1.7 Tangible fixed assets and dèpreciation Tangible fixed assets costing £100 or more are capilalised and recognisèd when future economiG benefits are probablè and the cost orvalue of tho assèt can be measured reliably. Tangible fixèd assets are initially recognised at cost. After recognition, under the cost rnodel, tangible fixed assets are mèasured al cost less accumulated depreciation and any accumulated impairment ltssses. All costs inGuired to bring a tangible fixed asset into its intended working condition should be includéd in the measurement ol cost. Depreciation is charged so as lo allale the cost of tangible fixed assets less th8ii residual value over their eslimaled useful liv@S, Depreciation is providad on the following bases.. Fixtures and fittings Office equipment 3 years slraighl line 3 years strtighl line 1.8 Opèratlng leases Rentals paid under (Iperating leases are chargad to the Statement of Financial Activities on a straight line basis over the lease tèm. 1.9 Debtors Trade and other debtors are recognised al the settlement amount after any trade discount offèred. Prepayments are valued al the arnount prepa nel of any trade diswunts due. Page 16
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting pollcies Iconlinued 1.10 Cash at bank and in hand Cash al bank and in hand includes cash and short-temi highly liquid investments with a short maturity of three months or less from the dalè of acquisition or opening of the deposit or S[lIar account. 1.11 Liabilities and provlslons Liabilities are recogni5ed when there 15 an obligation at the Balance Sheet dale as a resull of a past &vent, it is probable that a Iransfer of economic ben¢fil will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the charity anticipates il will pay to settle the debl or the amount il has recewed as advanced payments for the goods or setM¢os It musl provide. Provisitsns aré measured at the best eslirnale of the amoullls required lo settle the obligation. Where the effect of the lime value of money is material, thè provi510n is based on th¢ present value of those amounts, discounted at the pre-.tax discount rate that reflects the risks Specific to tho liability. The unwinding of thè discount 15 recognised In the Statement of Financial Activities as a finare cost 1.12 Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as bas finan¢1 instruments. Basic financial instruments are initially recognised al transaction value and subsequently measured al their setlletnent value with the exception ol bank loans which are subsequently rneasured at amorts'sed 3t using the effectwe interest method. Income from donations* grants and legacies Rèstricted Unrestricl funds funds 2022 2022 Total funds 2022 Total funds 2021 Donations Grants Government grants 365.000 365,000 592,595 496,900 310, 197 39,804 592,595 592,595 385,000 957,S95 846,901 Total 2021 310, 197 536, 704 846,901 Page17
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Income from donations, grants and lègacles Icontlnuedl The Education Policy Institutè received grants from three sources during the year for specific projects. The funds are deemed lo be for a reslricled purpose and expenditure in thèse grants are recorded Soparat81y. Unbound Philanlhrophy which had an unspent grant brought forward of £38.297 received further tr8nch8s of 280,000 with £78,245 expended in Ihè year, thè unspent grant carried forward is £40,051. Nuffield has provided fvrther rèstricted grants lolalling £163,697 during the year which have dl be8n expended. EPI had a brought fotward granl from The Jarnes Dyson Foundation for £6,000 which has bèen completely expended in the year. The Stitching Benevolentia has a grant brought forward of £65,695 with £19,950 being expended within the year. the unspent grant carth foEward is £45.745. Middlesex University has provided a new reslrKled grant totalling £2,586 during the yearwhich has been fully expended. NIESR has provided a new restricted grant totalling £10.312 during the yearwhich has been lully expended. The SequoSa Trust has undertaken to provide new reslricled grants totslling 2336,000 during the year this amount has bettn carried lomard. Income from charitable activities Unrestricted funds 2022 Total funds 2022 Total funds 2021 Conference Èvenls Research projects Subscriptions (individual and corporalel 307,494 418,838 97,575 307,494 418,838 97,575 211,274 195,071 81,872 823,907 823.907 488,217 Tol812031 488,217 488.217 Pagtt18
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Investment income Unreslrleted funds 2022 Total fijnds 2022 Total funds 2021 Bank interest received 726 726 929 Total 2021 929 929 Expenditur8 on raising funds Costs of raising funds . management operation5, fundralslng and Communlcatlons Unrèstrieted funds 2022 Total funds 2022 Total funds 2021 Conference and events Allocetion of support costs INote 81 59.103 69,791 59.103 69.791 19.875 71.020 128,894 128,894 90,895 Total 2021 90.895 90,895 Page 19
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 CharStable activities Restricted Unrestricted funds funds 2022 .2022 Totsl funds 2022 Total funds 2021 UnLx)und grant expenditure Nuffield grant Stiehing grant Research fees and subscriptions Dyson grant Middlesèx University grant NIESR grant Allocation of support cost5 (Notè 81 78,246 163,697 19,950 78,246 163,697 19,9SO 9,643 6,000 2,586 10,312 91S,596 41,654 264. 197 10,290 60,032 9,643 6,000 2,586 10,312 915.596 910,808 280.791 925,239 1.206,030 1,286.981 To1812021 361,777 914,914 1,276,691 Govèrnanc8 costs 2022 2021 Auditors, remuneration (including prior year under provision) AGcountancy, payroll fees, aulo-enrolmenl fees Accountancy and advice prior yèar under provision Bookkeeping Legal 8nd professional fees 7,679 3.739 2,723 3,125 6,346 9, 748 2,827 3,333 q.357 23,612 23,613 Page 20
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Support costs Costs of generating Charitable futtds activities 2022 2022 Total fund5 2022 Total runds 2021 Office costs Website and IT costs Miscellaneous Bank charges Advertising and promotional Wages and salaries National insurance Pension costs Restricted Èxpenditure Unbound (Note 8} Restricted expenditure- Nuffield (Note 61 Restrieted expendrture- Stiching Benevolenlia (Notè 61 Restricted expenditure- Dyson foundation (Note 61 Restricted expenditure- Middlesex Universty (Note 8) Reslricled expènditure- NIESR (Nole 61 Govemance costs (Nole 71 Depreciation 7,539 1,468 365 67,855 13,198 3,286 298 319 5.761 6,401 5,094 917,124 985,394 951,094 95,086 100,091 100,996 67.490 71,042 118,708 178,2461 178,2461 (41,654) 1163,6961 1163,6961 (264, 197J 75.394 14.664 3.651 330 73,529 15,501 32 640 48,270 S,005 3,552 119.9501 119,9501 (10.290J 16.000) 16,0001 12,5861 {10,3121 21,251 5,037 12,5861 110,3121 23,612 5,598 2,361 561 23,523 9,104 Total 69,791 915.596 985,387 981,827 Page 21
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Support costs Icontinuedl All support cosis except for wages 8nd Nl are apportioned between costs ol generaliw funds and charitable activities on a 100A '. 90/0 time basis respectively. Wages and salaries are also apporttoned on a time basis as fOlls., 5¥. 95% beeen costs of genfjrating funds and charitable actwilies. Stsff costs 2022 2021 Wagas and salaries So¢lal security costs Contribution to defined contribution pension scheme 965.393 100,091 71,042 994.538 100.996 75,264 1,136,526 1, 170,798 Thè average number of persons employ bythe charity during the year was as folbws.. 2022 No 2021 No Management. research 8nd adminislralive 21 22 The number of employees whose employee bÈnefrts (excluding employer p¢nsion costs) exeded £60,000 was.. 2022 No 2021 No In the band £60,001- £70.000 In the band £70,001- £80.000 In the band £80,001-.£90,000 In thtr band £90,001- £100,000 No Iruslees re¢eThied remuneration or expenses in the year12021.. £Nill. Totsl key management remuneration for the year was £174,806 {2021.' £192,293). Page 22
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Tanglblè fixed assets Fixtures and fitting5 Office equlpment Total Cost or valuation Al 1 April 2021 AddilKJns 8,196 41,139 3,729 49,335 3,729 At 31 March 2022 8,196 44.868 53,064 Deprèclatlon Al 1 April 2021 Charge for the yéar 7,955 241 33,250 5,357 41,205 5.598 At 31 March 2022 8,196 38,607 48,803 Net book value At 31 March 2022 6,261 6,261 At 31 March 2021 241 7,889 8, 130 11. Debtors 2022 2021 Due within one year Trade debtors Other debtors Prepaytnenls and accrued income Tax recoverable 68.925 31.912 356,454 246 178,702 31,612 17.510 6, 774 457,S37 2S4,598 Page 23
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 12. Creditors.. Amounts falling due within one year 2022 2021 Trade creditors other taxation and social security Other ¢reditors Accruals and'deferred income 31,3SO 63,613 20,213 73.180 14,683 90,114 17,469 39.024 188,336 161,290 2022 2021 Other taxation and social security PAYE I Nl control VAT control 31,732 31,881 33,265 56,849 63.613 90,114 Deletred income relates to the 2022123 el&m#nt of annual corporate partnerships and subscriptions invoiced in the year ended 31 March 2022. 13. Reconclllatlon of net movement In funds to nel Gash flow from operating activities 2022 . 2021 Nel inoomelexpendilure for the year las per Stslement of Financiaj Actwitiesl 447,30S (41,828) Adjustments for: Depreciation charges Interest received Ilncreasel I decrèase in debtors Increase I Idecreasel in creditors 5,598 17261 222,9391 27,046 9, 104 (291) 4,172 (17,823) Net cash provided byllused Inl operating actlvltiès 256.284 (46,726). Page 24
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. Analysls of ¢ash and cash equivalents 2022 2021 Cash in hand 1,080.782 827,501 Total cash and Cash equivalents 1,080.782 82T,501 15. Analysls of changes In ngt debt At 1 April 2021 Cash flows Al 31 March 2022 Cash at bank and in hand 827,501 253,281 1,080,782 827,501 253,281 1,080,782 16. Penslon commitments The company contributes to cèrtain directors and ernployèès d$fined contribution schemes and the pension charge represents the amounts paid by the company lo the funds and arnounted lo £71,042 12021- £75,264) There was a balance of £Nil12021 - £Nill outstanding at the b818nce sheet dale. 17. Opèratlng 18asè ¢ommitments AI 31 DAarch 2022 the charity had commitments lo make fuiure minimuTn lease payments under non-. cancellable operaling lèases as follows.. 2022 2021 Mot later than 1 year Later than 1 year and not later than 5 years 52,451 38,224 43,683 52.451 81,907 18. Relaled party transactions During the year the charity received donations of £200,00012021- £350,000), and comitted lo prowde restricted gran15 of £336,00012021- £NILI from The Sequoia Trust. ol which Mr Paul Marshall 1$ also a Trustee. The Charity reIved donations of £20.00012021- £20,0001 from Lord Nash who is 8150 a truste&. Page 25