Registered number: 04579498 Charity number: 1102186 EDUCATION POLICY INSTITUTE TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
EDUCATION POLICY INSTITUTE CONTENTS Page Reference and Admlnlstratlve Detalls of the Charity, Its Trustees and Advlsers Trustees. Report Independent Auditors, Report on the Flnanclal Statements 8-12 Statement of Flnanclal Actlvltles 13 Balance She&t 14 statement of Cash Flows Notes to the Flnanclal Statements 16-27 The following pages do not form part of the slalulory financial statements, Charlty Detalled Income and Expendlture Account and Summarles
EDUCATION POLICY INSTITUTE REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees Charles Brand, Interim Chair David Laws Baroness Sally Morgan Dr Kitty Stewart Anne-marie Canning MBE (appointed 30 January 2024) Chris Husbands (appointed 30 January 20241 Timothy Charles Leunig lappoinled 30 January 20241 Hardip Begol lappoinled 1 May 20241 Paul Marshall (resigned 1 January 20241 John Nash (resigned 1 January 20241 Company reglstered number 04579498 Charity reglstered number 1102186 Reg Istered offlce 150 Buckingham Palace Road London SW1W 9TR Company Secretary Natalie Perera Chlef Executlve Offlcer Ms Natalie Perera Independentaudltors Calders (1883} LLP Chartered Accounlanls & Statutory Auditors 30 Orange Street London WC2H 7HF Page 1
EDUCATION POLICY INSTITUTE TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees who are also directors are pleased to present their annual report together with the audited financial statements of the charity for the 1 April 2023 10 31 March 2024. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo ¢harilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (effective 1 January 2019). The Trustees Report serves the purposes of both a Trustees, report and a dire¢lors' report under company law. Trustees of the Company are its Directors for the purpose of company law and throughout Ihis report they are collectively referred to as the Trustees. Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been omitted. As a result of providing for unrestricted grants committed in the prior years out of which expenditure has been incurred since the prior year ends, this has contributed to a deficit result on the unrestricted funds for 2024 but over the Iwo year ends 2023 and 2024 there has been an overal increase in lot81 reserves. Oblectlves and actlvltles Pollcles and objectlves Policies and Objectives.. The principal objects of the charity are non-partisan advancement of education of the public in the economic, social and political sciences and their effect on public policy and the policy-making process in the UK and the promotion of objective research, and any olher purposes deemed charitable under the law of England and Wales. There have been no changes in the objectives since our last Annual Report. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit, and the duties set out in Section 1715) ol the Charities Act 2011, including the guidance 'Public Benefit.. Running a Charity" b. Maln actlvltles undertaken to further the charity's purposes for the publlc beneflt Main activities undertaken to further the charity's purposes for the public benefit. Our main activities and how we try lo achieve our principal objectives for the benefit of the public are described below. All our charitable activities focus on the advancement of education of the public in the UK and are undertaken lo further our charitable purposes for the public benefit. Achlevements and performance a. Revlew of actlvlties 1 st April 2023 to 31 st March 2024. The Education Policy Institute is an independent, impartial and evidence-based research institute, which aims to promote high quality education outcomes, regardless of social background. We continue lo use quantitative and other methods lo analyse all phases of education in England, to help policy makers and praclilioners to adopl more effective strategies to improve outcomes. We particularly focus on policy challenges relating lo the long "tail" of low attainment, and we seek to promote policy solutions which close the education gap between vulnerable children and adults. and the rest of the pupil and adult populations. We are also interested in non- attainment related education and child development issues, and we have an important strand ofwork on child wellbeing and menlal health. From January 2024, EPI moved lo a fully-CEO led model and a number of other governance changes took place. The Executive Chair stood down whilst still remaining a trustee and an existing trustee (Charles Brand) Page 2
EDUCATION POLICY INSTITUTE TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achlevements and performance Icontlnuedl stood up as interim chair. The previous Chair, Sir Paul Marshall, stood down from the Board from the 31 sl December 2023 as did Lord Nash and Sir Michael Wilshaw. Anne-marie Canning, Professor Sir Chris Husbands and Dr Tim Leunig joined the Board of Trustees in January 2024 and Hardip Begol joined in May 2024. To ensure a smooth transition lo a fully CEO-led organization, a new Finance Manager was appointed on a permanent basis from October 2023. From JanLtary 2024, new financial management monitoring reports were presented lo Trustees, along with new Key Performance Indicators. EPI has continued to produce a wide variety of outputs across our research areas and has also helped to inform policy making through sitting on government advisory boards and other Commissions. Our work has continued lo have significant impact through the media and other routes and we continued to host a large programme of events, roundtables and conferences. EPI continued its seminal work on measuring the extent of post-covid learning loss, using Renaissance Learning star Assessment data, with furthers report published in May 2023. Complementing this work, EPI also published analysis on post-pandemic absence rates in May and August 2023. For the first lime since before the pandemic, EPI was able to publish il flagship annual report on the disadvantage gap in England in October 2023. Responding lo the external climate, EPI published a report on 'Educalion Priorities in the next General Election" in July 2023, with the aim of guiding political parties towards using evidence-based policies in their manifestos. EPI also carved out a role as the "go to" source of independence and commentary in the late summer of 2023, when il became apparent that hundreds of schools were affected by Reinforced Autoclaved Aerated Concrete IRAACI. Another rnajor milestone was met in February 2024 when EPI published ils online tool for measuring school group effectiveness. This provides an interactive source of benchmarking data to support local aulhorilies, multi academy trust leaders, the Department for Education and Ofsled in understanding the effectiveness of the primary and secondary school system. It is also intended lo provide a ' blue print" for the Labour party's plans to intfoduce a balanced scorecard as part of the school accountability system. Staff have produced numerous research reports and analysis during the year. The major publications include.. Educational outcomes in Glouceslershire, April 2023 EPI local authority analysis.. Report for Essex Education Task Force. May 2023 Six charts that explain the state of the teaching workforce in England, June 2023 Ethnicity and additional needs in the pandemic.. Intersections beeen ethnicity and additional needs111, June 2023 -Atlainmenl gaps for children in social care, July 2023 Ethnicity and additional needs in the pandemic: Additional provision for SEND, ethnicity and atlainmenl {21 August 2023 Ethnicity and additional needs in the pandemic: Additional provision for EAL, ethnicity and allainmenl (3), August 2023 Ethnicity and additional needs in the pandemic.. Conclusions and implications for additional needs,ethnicily and allainment14), September 2023 Variation in pupil inclusion practices across schools.. findings from the second wave of the DEEP survey, September 2023 The influence of headleachers on their schools, October 2023 Four charts which explain the stale of children's mental health in 2023, November 2023 Education.. the fundamentals- Eleven facts about the education system in England, December 2023 Children and young people's mental health services.. Targets, progress and barriers lo improvement, December 2023 What's Cooking? A review of evidence and discussion on the Free School Meals IFSMI measure in the Page 3
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Achievements and performance (contlnuedl National Pupil Database, January 2024 Access to extra-curricular provision and the association with outcomes, February 2024 Recruitment and Retention of Senior School Leaders in Wales, February 2024 Comparing policies, participation and inequalities across UK post-18 Education and Training landscapes, February 2024 How hard is il to recruit senior school leaders in Wales? February 2024 An evidence review into the length of the school day, February 2024 GCSE High Attainers and Progression to Higher Education. February 2024 Schools and air pollution in London, February 2024 Outcomes for young people who experience multiple suspensions, March 2024 In addition to this, EPI also provided its annual analysis of GCSE and A Level results in the summer of 2024. b. Investment pollcy and performance The charity has no investments apart from bank deposits and the Trustees consider this as the appropriale vehicle for holding ils funds. Flnanclal revlew a. Golng ¢onc8rn After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in preparing the financial slatemenls. Further details regarding the adoption of the going concern basis can be found in the accounting policies. b. Future Developments A 5-year business plan will be presented to the Trustees in April 2025 which will span 202510 2030. This will include plans to extend EPI'S research methodologies, seek more core funding from donors and to expand its events and membership offers. c. Reserves pollcy It is the policy of the Trustees that reserves are maintained at a level lo finance forecast future operations of the charity. The charity's unrestiicted reserves are £783,204 al the year end,11 is currently considered appropriate lo maintain reserves al the level of circa £750,000 to £1,000,000 to have sufficient reserves to finance activities in Ihe event that the level of unrestricted donations should fall significantly. The charity's level of reseeS and reserves policy will continue lo be reviewed annually. Note the Trustees have obtained confirmation of ongoing funding support from ils main donor. Page 4
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Flnancial revlew (contlnued) d. Summary of Income and oxpenditure The charity's restricted income during the reporting year was £843,454 (2023.. £430,760). At the same time restricted expenditure increased was £783,73612023.' £368,303). The charity's unrestricted income during the reporting year was £945,838 (2023. £930,043). At the same time unrestricted expenditure decreased to £981 ,375 (2023- £1,045,751). Total voluntary income increased lo £879,09312023. £532,549). Income from our research, sponsored events and membership subscriptions increased lo £883,161 (2023.. £822,108). e. Prlnclpal fundlng Ongoing financial management is the responsibility of the Trustees, The annual budget is approved by the Trustees. Statements are presented lo the Trustees, with explanations provided for variations from budget. The principal sources of funding are grants from a number of charitable trusts and sponsorship income for research, events and corporate subscriptions. f. Research Interns 11 is the Inslitule's policy to pay research interns, typically working for between 1 3 months, at the London Living Wage. Structure, governance and management a. Constltutlon Education Policy Institute is a charitable company limited by guarantee, incorporated on 1 sl November 2002 and registered as charity number 1102186 on 19th February 2004. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed by 115 Arlicles of Association. Since May 2016 the operating name and identity has been the Education Policy Inslilute. b. Methods of appolntment or electlon of Trustees Trustees are elected by a simple majority of all the Trustees entitled lo allend and vote al any meeting of the Board. Trustees are appointed by recommendation and informal intetview processing and approval by the full board. There is currently no formal policy of training and induction in place for new Trustees. However, all current Trustees have extensive experience of legal issues relating to charities and are also advised by the Company Secretary on such matters. Should the need for a More formal policy arise, this will be considered by the Trustees. Page 5
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 structure, governance and management (continued) c. Organlsatlonal structure and declslon-maklng policles The current Trustees of the charity are also directors of the charity for the purposes of the Companies Act. The Trustees are responsible for selling the overall strategy of the charity and ensuring that the charitable purposes are adhered to and they relain overall responsibility for the running of the charity and delegation lo relevant committees andlor sub Boards, as appropriate. The Trustees meet quarterly. Members of the Advisory Board provide input and advice on an ad hoc basis. Members of the Advisory Board include academics, commentators, education practitioners and senior parliamentarians. d. Flnanclal rlsk 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 mitigate Ihe exposure lo major risks.. Statement of Truste&s' responslbllltles The Trustees (who are also the directors of the charity for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice}. Company law requires the Trustees to prepare financial statements for each financial Under company law, the Trustees must nol approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the charity and of ils incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial slalements, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 102)., make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements.. prepare the financial statements on the going concern basis unless it is inappropriate lo presume that the charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any lim e the financial position of the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of Informatlon to auditors Each of the persons who are Trustees at the time when this Trustee5' Report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit infomation of which the charitls auditors are unaware, and that Trustee has taken all the steps thal oughl to have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charilvs auditors are aware of that information. Page 6
EDUCATION POLICY INSTITUTE TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Audltors The auditors, Calders {18831 LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors al a meeting of the Trustees. Small companles note The Trustees, Report has been prepared in accordance with the provisions applicable to companies subject to the small companies, regime. Approved by order of the members of the board of Trustees and signed on their behalf by.. Charles Brand Trustee Dale.. 30th January 2025 Page 7
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE Oplnlon We have audited the financial statements of Education Policy Inslilule (the 'charilable company'l for the year ended 31 March 2024 which comprise the Statement of Financial Aclivilies. the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial stalemenls: give a Irue and fair view of the slate of the charitable company's affairs as at 31 March 2024 and of ils incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011 . Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS {UK)l 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 independenl of the charitable company in accordance with the ethical requirements that are relevant lo 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 Ihe audit evidence we have obtained is sufficient and appiopriale lo provide a basis for our opinion. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriale. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability lo continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 8
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE (CONTINUED) Other Informatlon The other information comprises the information included in the Annual Report other than the financial statements and our Auditors, Report Ihereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial slalemenls does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial slalemenls or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required lo 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 lo report that fact We have nothing lo report in this regard. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Trustees, Report is inconsislenl in any material respect with the financial slatemenls., or sufficient accounting records have not been kept; or the financial slalements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. Responslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is neSSary to enable the preparation of financial slatemenls that are free from material misstalemenl, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative bul to do so. Page 9
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE (CONTINUED) Audltors, responslbllltles for the audit of the flnanclal statements We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and to Issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee Ihal an audit conducted in accordance with ISAS (UK) will always delecl a material misslalemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misslalements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below.. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered and undertook the following audit procedures in response.. We obtained an understanding of the legal and regulatory frameworks that are applicable lo the company and determined that the most significant are those that relate lo the reporting frameworks {United Kingdom accounting standards and Companies Act 20061., We obtained an understanding of the nature of Ihe industry and sector, control environment and business performance., The outcome of discussions with management and those charged with governance and any matters we identified having obtained and reviewed the company's documentation of their policies and procedures related lo.. a. Identifying, evaluating and complying with the laws and regulations and whether they were aware of any instances of non compliance or any aclaul or potential litigation or claims b. Delecling and responding to the risk of fraud and whether they have knowledge of any actual, suspected or alleged fraud., c. The internal controls established to mitigate risks of fraud or non-compliance with laws and regulialions The matters discussed during the audit engagement team briefing regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. All engagement team members were advised lo remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Reviewing (he financial statement disclosures and lesling lo supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial slalemenls., Performing analyiical procedures lo identify and unusual or unexpected relationships that may indicate risks of material misstatement due to fraud., Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC and inspection of relevant legal correspondence In addressing the risk of fraud or error through managment override of controls, testing the appropriateness of journal entries and other adjustments by testing manual journal entries, in particular journal entries relating lo management estimates and entries determined lo be large or relating to unusual transactions Assessing whether the judgements made in making accounting eslimales are indicative of potential bias., and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business., Assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's.. a. understanding of, and practical experience with the audit engagements of a similar nature and complexity through appropriate training and participation., b. knowledge of the industry in which the client operates; c. understanding of the legal and regulatory requirements specific to the company including Page10
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE (CONTINUED) the provisions of the applicable legislations the applicable statutory provisions As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the grealest potential for fraud in the areas in which management is required lo exercise significant judgement. We are also required lo perform specific procedures to respond lo the risk of management override. We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of the material amounts and disclosures in the financial statements. Those laws and regulations considered lo have a direct effect on the financial statements include UK financial reporting standards, Company law, Tax and Pensions legislation anLI Charity Law. In addillion, we considered provisions of other laws and regulations that do not have a direct effect on the financial slatments bul compliance with which may be fundamental lo the company's ability lo operate and avoid a material penalty. These included data protection, employment health and safely regulations, competition and anti-bribery laws and environment regulations. With regards lo laws and regulations relating lo the operating aspects of the company, these were discussed with management and were not considered fundamental to the operating of the business therefore should not have a material impact on the financial statements. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in delecling irregularities, the effectiveness of the enlily's controls, and the nature, timing and exlenl of the audit procedures performed Irregularities that result from fraud m ight be inherently more diffucull to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misslalmenls may not be deteded, even though the audit has been planned and performed in accordance with the IASS (UK). A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. ww.frc.or .uklaudilorsres onsibilities. This description forms part of our Auditors, Report. Page11
EDUCATION POLICY INSTITUTE INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF EDUCATION POLICY INSTITUTE (CONTINUED) Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Part 4 of the Charities {Accounls and Reports) Regulations 2008. Our audit work has been undertaken so that we might state lo the charitable company's members those matters we are required lo slate 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 ils members, as a body, for our audit work, for this report, or for the opinions we have formed. Luf T Badanl (Sonlor Statutory Audltor) for and behalf of Calders {1883) LLP Chartered Accountants & Stalutory Auditors 30 Orange Street London WC2H 7HF Dale: 20 IiJcit4 dKL 2025 Calders (18831 LLP are eligible lo act as auditors in terms of section 1212 of the Companies Act 2006. Page12
EDUCATION POLICY INSTITUTE STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENOITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2024 Restrlcted Unreslrlcted funds funds 2024 2024 Total funds 2024 Total fu17ds 2023 Note INCOME FROM: Donations and legacies Charitable activities Investments 843,454 35,639 883,161 27,038 879,093 883,161 27,038 532, 549 822, 108 6, 146 TOTAL INCOME 843,454 945,838 1,789,292 q, 360, 803 EXPENDITURE ON: Raising funds Charitable activities 238,078 743,297 238,078 1,527,033 136,625 1,277,428 783,736 TOTAL EXPENDITURE 783,736 981,375 1,765,111 1,414,053 NET MOVEMENT IN FUNDS 59,718 135,637) 24,181 (53,250) RECONCILIATION OF FUNDS: Total funds brought foNard Net movement in funds 484,253 69,718 818,741 (35,6371 1,302,994 24,181 1,356,244 (53,250) TOTAL FUNDS CARRIED FORWARD 543,971 783,204 1,327,175 1,302,994 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 16 to 27 form part of these financial slalemenls. Page 13
EDUCATION POLICY INSTITUTE REGISTERED NUMBER: 04579498 BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible assets 10 10,201 12.023 10,201 12.023 CURRENT ASSETS Debtors 577,805 916,013 507, 225 966, 644 Cash at bank and in hand 1,493,818 1,473,869 Creditors.. amounts falling due within one year 12 (176,8441 (182, 898) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS EXCLUDING PENSION ASSET 1,316,974 1,290,971 1,327,176 1,302,994 1,327,175 7,302,994 TOTAL NET ASSETS 1,327,175 1, 302,994 CHARITY FUNDS Reslricled funds Unrestricted funds 543,971 783,204 484,253 818,741 TOTAL FUNDS 1,327,175 1,302,994 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 have been prepared in accordance with the provisions applicable lo entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 30th January 2025 and signed on their behalf by.. Charles Brand Trustee The notes on pages 16 10 27 form part of these financial slalemenls. Page 14
EDUCATION POLICY INSTITUTE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Nel cash used in opeiating activities (72,010) (108,981) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of tangible fixed assets Interest from investments 15,659) 27,038 (11,304) 6,147 NET CASH PROVIDED BYI(USED INI INVESTING ACTIVITIES 21,379 {5,1571 CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR Cash and cash equivalents at the beginning of the year (50,631 I {114,138) 966,644 1,080, 782 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 916,013 966,644 The notes on pages 16 to 27 form part of these financial statements Page 15
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting pollcles 1.1 Basls of preparatlon of flnanclal statements The financial slalemenls have been prepared in accordance with the Charities SORP {FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} leffeclive 1 January 20191. the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Education Policy Institute meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially reco9nised at historical cost or transaction value unless otheise slated in the relevant accounting policy. 1.2 Golng concern The charills main donor has provided confirmation that il will continue to provide financial support to the charity for al least 12 months from the signing of the financial statements. The Trustees therefore consider that il is appropriate to adopt the going concern basis for the preparation of the financial slatemenls. 1.3 Company status The charity is a company limited by guarantee. The members of the company are the Trustees named on page 1 . In the event of the Charity being wound up. the liability in respect of the guarantee is limited lo £1 per member of the charity. 1.4 Fund accountlng General funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the charity and which have nol been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restridions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial slatemenls. Investment income, gains and losses are allocated to the appropriate fund. 1.5 Income All income is recognised once the charity has entitlement lo the 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 Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt. ils recognition is deferred and included in creditors as deferred income. Where enlillemenl occurs before income is received, the income is accrued. Income tax recoverable in relation to investment income is recognised al the time the investment income is receivable. Page 16
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies {contlnuedl 1.6 Expenditure Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit to a third party, it is probable that a transfer of economic ber)efils will be required in settlement and the amount of the obligation can be measured reliably. Expendilure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each aclivily. Direct costs atlribulable to a single activity are allocated directly to that activity. Shared costs which contribute lo more than one activity and support costs which are not atlribulable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management. Governance costs are those incurred in connection with adminislralion of the charity and compliance with constilulional and slatulory requirements. Costs of generating funds are costs incurred in attracting voluntary income. Charitable activities 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 activities 1.7 Tanglble flxed assets and depreclatlon Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially reco9nised at cost. After recognition, under the cost model, tangible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their eslimaled useful lives, Depreciation is provided on the following bases.. Fixtures and fittings Office equipmenl 3 years straight line 3 years straight line 1.8 Operating leases Rentals paid under operating leases are charged lo the Statement of Financial Activities on a straight line basis over the lease term. 1.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 17
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policles lcontinuedl 1.10 Cash at bank and In hand Cash at bank and in hand includes cash and shorl-lerm hig hly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 1.11 Llabllitles and provlslons Liabilities are recognised when there is an obligation al the Balance Sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates il will pay to sellle the debt or the amount il has received as advanced payments for the goods or services it musl provide. Provisions are measured at the best eslimale of the amounts required lo settle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounls, discounted at the pre.tax discount rale that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 1.12 Flnanclal Instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. Income from donatlons, grants and legacles Restrlcted Unrestrlcted funds funds 2024 2024 Total funds 2024 Total fui?ds 2023 Donations and Grants Reslricled Grants 35,639 35,639 843,454 101, 789 430, 760 843,454 843,454 35,639 879,093 532,549 Total 2023 439, 760 101,789 532,549 Page 18
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donatlons, grants and legacles Icontlnuedl The Education Policy Institute received grants from three sources during the year for specific projects. The funds are deemed lo be for a restricted purpose and expenditure in these grants are recorded separately. Unbound Philanthrophy which had an unspent grant brought fOard of £6.663 and during the year a further £70,000 was received and £80,494 was expended leaving a carried fomard balance of1£3,831}. The grant was provided in relation to core support of a research program on educational outcomes of vulnerable children. Unbound Philanthropy which had an unspent grant brought foward of £11,833 and during the year £9,581 was expended leaving a carried forward balance of £2,272. The grant was provided lo fund the project on home schooling in England at prevalence, child characlerislics and family motivations. The Stitching Benevolenlia has a grant brought forward of £1,082 bul nothing was reiVed for expended in the year, therefore, the unspent grant caried fotward is £1,082. The grant was issued lo fund a research project exploring the prevalence of managed moves and the local protocols which govern them. Middlesex University has a grant brought fofward balance of1£1,449) during the year a further £2,747 was received and £1,476 was expended with the an amount carried forward being {£1781. The grant was provided to fund the project on developing EY leadership through digitally mediated professional learning. NIESR has a grant brought fotward balance of £5,600. During the year a further £17,188 was received and £18,990 was expended with a balance carried forward of£3,798. This grant was provided lo fund research in relation lo the impact of COVID-19 on educational, language and socioemotional outcomes in key stage 1. The Sequoia Trust had a balance brought fotward of £328,637 and has undertaken to provide a new restricted grant of £400,000. During the year, £290,157 has been expensed in the year with a balance carried fotward of £438,480. The sum of £400,000 was granted to utilise on projects relating to the Disadvantages gap after Covid, Persistent disadvantaged funding, Phonics evaluation, Technical qualification reform and MAT Inlervenlion. The balance of the grant was reslricte(J lo the charities operational and financial obligations. In the prior year The Paul Hamlyn Foundation provided a restricted grant with a balance brought fotward of £2,055. During the year £472 was expended with no other income received leaving a carried forward balance of £1,583. The grant provided is a Voice, Influence and Parternship grant where a final report needs lo be submitted once completed. Lord Nash has a grant brought forward balance of £19.721. A further £10,000 was received in the year and £15.605 was expended leaving a carried balance of £14,116. The grant was provided to support research into finding data on the number of children outside of formal education across the country. The Prudence Trust have a grant brought forward forward balance of £80,000. £27,381 was expended in the year leaving a carried fotward balance of £52,619. The grant is to be allocated to the research project "Mapping mental health and wellbeing services across the country The Welsh Government had a carried forward balance £5,706 in relation lo gran15 previously provided. A further £17,500 was received in the year whilst £14,376 was expended leaving a carried forward balance of £8,830. The purpose of the funding is for the charity to carry out scoping research on the incentives for teachers in Wales lo work in challenging circumstances. Garelh Thomas provided a grant previously that now has a brought fonmard balance of £24.651.During the year £19,505 was expended leaving a carried fOard balance of £5,146. The donation is lo support Page 19
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Income from donations, grants and legacles {contlnued) the research into finding data on the number of children outside of formal education across the country, who these children are, the reason they are not in state education and their post secondary outcomes. A grant was committed by the Department of Education where the brought forward balance was {£245). During the year £21,700 was received and £21,390 was expended which left a carried forward balance of £66. The grant was provided so a report can be produced for all secondary schools that analyses each schools outcome in terms of progress 8, allainment 8, grades in key subjects, persistent absence and rale of fixed term exclusions. During the year a grant of £40.000 was received from KPMG in relation to producing a report regarding reducing food poverty in under 5's. Of the £40,000 received £20,010 was expended that leaves a carried foward balance of £19,990. £264,319 was received from Nuffield Foundation during the year in respect of recharges for staff salaries, overheads and other expenses. This was part of a Reslricled income grant and has been treated accordingly. The funding provided are for collaborations on the following research projects.. Comparison of cognitive skills and education allainment across the UK Comparing UK policies, outcomes and inequalities in post 16 education and training Estimating the influence of headteachers on Iheir schools From algorithmic bias to teacher bias In summary, total unspent restricted funds brought foNard w8s £484,254., a further £843,454 of restricted funds was received and £783,736 was expended during the year to give a total balance of £543,972 to carry forward at the year end. The grants are for non-partisan advancement of education Income from charltable actlvltles Unrestrlcted funds 2024 Total funds 2024 Total funds 2023 Conference and events 252,940 487,973 142,248 252,940 487,973 142,248 383, 949 288,275 149,884 Research projects Subscriptions (individual and Gorporale) 883,161 883,161 822, 108 Total 2023 822, 108 822, 108 Page 20
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 MARCH 2024 Investment Incom8 Unrestrlcted funds 2024 Total funds 2024 Total fui?ds 2023 Bank interest received 27,038 27,038 6, 146 Tolal 2023 6, 146 6, 146 Expendlture on ralslng funds Costs of ralslng funds management operatlons, fundralslng and communlcatlons Unrestrlcted funds 2024 Total funds 2024 To¢al fiii?ds 2023 Conferences and events Allocation of support costs (Note 81 150,829 87,249 150,829 87,249 62,037 74,588 238,078 238,078 136,625 Tolal 2023 136, 625 136, 625 Page 21
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Charltable actlvltles Restricted Unrestricted fuiids funds 2024 2024 Total funds 2024 Total fuilds 2023 Unbound grant Nuffield grant Paul Hamlyn grant Prudence Trust Stiching Benevolenlia grant Research fees and Subscriptions Sequoia Trust grant KPMG Grant Middlesex University grant NIESR grant Welsh Government grant Lord Nash grant Gareth Thomas grant Department for Education Allocation of support costs (Note 8) 90.055 264,319 472 27,381 90,055 264,319 472 27,381 36, 556 135, 781 19,945 44,663 14,400 71,363 33,276 33,276 290,157 20,010 1,476 18,990 14,376 15,605 19,505 21,390 710,021 290,157 20,010 1,476 18,990 14,376 15,605 19,505 21,390 12,928 8,150 26, 794 5,279 6, 599 245 894, 726 710,021 783,736 743,297 1,527,033 1,277,429 Total 2023 368, 303 909. 126 1,277,429 Governance costs 2024 2023 Auditors, remuneration Auditors Remuneration (Underprovision for prior yearl Accountancy, payroll fees, aulo-enrolment fees (Including prior year underprovisionl Bookkeeping Legal and professional fees 12,654 4,000 8,000 4,873 8,877 3,011 7,613 8, 743 3, 165 8,475 36,155 33,256 Page 22
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Support costs Costs of generating Charltable funds actlvltles 2024 2024 Total funds 2024 Tolal liii?ds 2023 Office Costs SMP Reclaimed Website and IT costs Miscellaneous 9,267 (445) 1,810 881 34 59,849 5,763 5,685 42 83,405 18,469) 16,286 7,932 307 1,137,133 109,500 108,013 377 (90,055) 92,672 18,914) 18,096 8,813 341 1,196,982 115,263 113,698 419 81,590 19,004 4, 728 337 1,002, 180 105,824 75,481 9,676 (36, 556) Bank charges Wages and salaries National insurance Pension costs Advertising and Promotional Reslricled expenditure Unbound (Note 6) Reslricled expenditure - Stiching Benevolenlia (Note 61 Reslricled Expenditure- KPMG (Note 6) Reslricled Expenditure - Nuffield {Nole 8} Restricted expenditure- The Prudence Trust (Note 6) Restricted expenditure - Middlesex University (Note 6} Restricted expenditure - NIESR (Note 6) Restricted Expenditure - Sequoia Trust (Note (90,055 (44,663) <20,010) 120,010) 1264,319) 1264,319) (135, 781) (27,381) {27,381 } 11,476) (18,990) {1,4761 (18,990) (12,928) (8, 150) 6) (290,157) (290,157) (7t,363) Reslricled Expenditure - Department for Education (Note 61 Reslricled Expenditure - Paul Hamlyn Foundation (Note 61 Restricted Expenditure - Gareth Thomas (Note 6) Restricted Expenditure - Lord Nash (Note 6) Restricted Expenditure - Welsh Government (Note 61 Governance costs (Note 7} Depreciation (21,390) (21,3901 (244) (472) (4721 (19,945) (19,505) <15,605) (19,505) 115,605) (6,599) (5,279) (14,376) 32,540 6,733 (14,376) 36,155 7,481 (26, 794) 33, 256 5, 540 3,615 748 Total 87,249 710,021 797,270 969,314 Page 23
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Support costs (continued) All support costs except for wages and Nl are apportioned between costs of generaling funds and charitable activities on a 10 10 . 90 % time basis respectively. Wages and salaries are also apportioned on a time basis as follows. 5 % '. 95 /0 between costs of generating funds and charitable aclivilies. Staff costs 2024 2023 Wages and salaries Social security costs Contribution to defined contribution pension scheme 1,196,982 115,263 113,697 7,002,180 105, 824 75,481 1,425,942 1, 183,485 The average number of persons employed by the charity during the year was as follows.. 2024 No 2023 Management, research and adminislralive 25 21 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 No In the band £60,001 £70,000 In the band £70,001 £80,000 In the band £80,001 £90,000 In the band £90,001 £100,000 In the band £100,001 £150,000 No trustees received remuneration or expenses in the year related to their trusteeship {2023'. £Nil). Total key management remuneration for the year was £125,239 (2023= £170,083). Page 24
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. Tanglble flxed assets Flxtures and f ittlngs Offlce equlpment Total Cost or valuatlon At 1 April 2023 Additions 8,196 56,172 5,659 64,368 5,659 At 31 March 2024 8,196 61,831 70,027 Depreclatlon At 1 April 2023 Charge for the year 8,196 44,147 7,482 52,343 7,482 At 31 March 2024 8,196 51,629 59,825 Net book value At 31 March 2024 10,202 10,202 At 31 MarGly 2023 12,024 12,024 Debtors 2024 2023 Due wlthln one year Trade debtors Other debtors Prepayments and accrued income 104,147 34,830 438,828 75,080 31,612 400, 533 577,805 507, 225 Page 25
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. Creditors: Amounts falling due withln one year 2024 2023 Trade creditors Other taxation and social security Other creditors Accruals and deferred income 28,522 51,609 16,469 80,244 4, 103 63, 132 1,264 7 14,399 176,844 782,898 2024 2023 Other taxatlon and soclal securlty PAYE I Nl control VAT control 35,441 16,167 30,246 32,886 51,608 63,132 Deferred income relates to the 2024125 element of annual corporale partnerships invoiced in the year ended 31 March 2025. 13. Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltles 2024 2023 Net incomelexpenditure for the period (as per Statement of Financial Activities} 24,181 (53, 250) Adjustments for: Depreciation charges Interest received (Increase) I decrease in Debtors Increase l (Decrease) in Creditors 7,482 127,039) 170,580) 16,054) 5,540 (6, 746) (49,687) (5,437) Net cash used In operatlng actlvltles (72,010) (108,980) Page 26
EDUCATION POLICY INSTITUTE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. Analysis of cash and cash equlvalents 2024 2023 Cash in hand 916,013 966,644 Total cash and cash equlvalents 916,013 966,644 15. Analysls of changes In net debt At 1 Aprll 2023 Cash flows At 31 March 2024 Cash at bank and in hand 966,644 (50,631) 916,013 966,644 (50,631) 916,013 16. Operatlng lease commltments At 31 March 2024 the charity had commitments to make future minimum lease payments under non- cancellable operating leases as follows.. 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 54,356 178,750 233,106 The company entered into a 5 year lease on 5 April 2023. 17, Related party transactlons During the year the charity had additional commilled grants of £400,000 from Sequoia Trust12023'. £168,000}. Mr Paul Marshall is also a Iruslee of The Sequoia Trust and wa5 a trustee of EPI for part of the year until he resigned on 1 January 2024. The Charity received donations of £10,000 (2023- £20,000) from Lord Nash who was also a trustee but fesigned on 1 January 2024. The Charity also received Conference sponsorship income of £6,325.83 from Fair Education Alliance who Natalie Perera is a trustee of. Page 27