Company registration number- 05589479 Charitable company reLiistration number in England & Wales.. 1120354 Charity registration number in Seoiland.. SC051351 C)SWGfL Safe, Secure, Online South West Grid for Learning Trust IA company limited by LFuaranlee) Annual Report and Financial Sialcmenls for Ihe Year Ended .1 I Mmrch 2024 Thompson Jenner LLP Sialulory Audiiors 28 Alexmndra 'l'errace Lxmouth Devon EX8 IBD South West Grid for Learning Trust Contents Reference and Adinini5trative Details I to2 Trustees Report 3tolO Siatement of Truslees, Responsibiltties Independent Audiiors, Report 1210 15 Statement of Financi411 ALlivili¢s 1610 17 Balance Sh¢¢i Statement of Cash l.-lows 19 Notes to Ihe Financial Statements 20to37 Si)uth WL'st Grid for Learning Trust Reference and Administrative Details Tru51ees R Bond A (' ('oghlan (' Mcdonald S Smith A E Brittan J Briscombe l Danie115 11 l.. l)nrter A D l)hippen K Nain (appointed 3 April 2024) Secretary R Bond Senior Management I lJeadership l) Wright CBF., (CEO) 'rtAm C Hayden K ("orish 13 Radanovi M Kcnneally Registered C)ffice Belvedere House Woi)dwatLr Park Pyne% I lill I xL'lcr .X2 5WS The charitable company is incorporated in England and Wales. Page I Soulh West Grid for Learning Trust Reference and Admini$tr#tive Details C'omp4Dy Regisiration iyumber 05589479 ChArilAble company Re2lStrAtion Ntsmber 1120354 Sicotland Charity Registr4tion Number SC051351 Solicitors MiLhelmores LLP Woodwaler House Pynes Hill Lxeler EX2 5WR Bankers l.loyd$ TSB Bank PIC 2.14 1 ligTh Street ExelLr t)evon L.'X4 I£B Auditor 'I'hompson Jenner LLP Sialulory Auditors 28 A IL'xandra Terrace l.-¥mi)Liih l)cv()n I.:X8 IIID Page 2 South West Grid for Learning Trust Trustees. Report for the Year Ended 31 March 2024 The Trustees present their report and the financial statements for the year ended 31 March 2024. The Trustees, who are also directors for the purposes of company law, who served during the year and up to the date of Ihis report are set out on page 1 of the accotjnls. This report details the aclivities undertaken by the South West Grid for Learning Ilhe Trust) team over the course of the year in the delivery of the key objectives contained within the business plan. At the end of 2023, the online safety landscape unde￿ent Iransfomative changes. with SWGfL at the forefront of advocating for a safer online environment in the UK, with the UK Online Safety Bill reaching Royal Assent on 26th October 2023. This WOLJld then go on to impact the work of the charity for 2024. The demand for our online safety services has been oVe￿helMIng and heartening. Notably, our helplines continued to experience a sustained increase in caseloads. The Revenge Porn Helpline alone experienced a 1060/0 rise in cases compared to 2022 and SlopNCII,org seeing nearly 10000A increase in activity. wilh the plaffonn receiving over 572,221 hashes. In conclusion, 2024 wa5 a year of significant successes, challenges, and relentless commitment to online safety by SWGfL. Online Safety Services SWGfL continued to face suslained demand across all ils online safety services, information and support. To articulate this demand Helpline Caseload significantly rose Reports lo the Revenge Porn Helpline increased by 1060/0 in 2023, reaching nearly 19.000 Professionals Online Safety Helpline experienced a 120kn increase in case5, rising to 2,687 cases over the 12 months. o Reports lo Ihe service increased by 310/0 during 2023. totalling 5,101 reports compared to 3,884 in 2022 During this period, the Trust developed specific services and campaigns for example Slo Non- Consensual I n Imale Ima e Abuse- Slo NCII.or SlopNCII.org is the world's first device side hashing technology, that allows any adult who is a victim of non consensual intimate image abuse, anywhere in the world to create 'hashes' of their intimate images that will prevent these from being uploaded across partner plaffoms. This removes the Ihreat to share that many victims suffer from, restoring their control. Over the year, Facebook, Instagram, TikTok. Bumble, Reddil arsd OnlyFans were joined by Aylo, Threads, Snap and Niantic as participating platforms. Since ils inception in December 2021. SlopNCII has 5UPPOrted an impressive total of 238,596 cases, protecting 572,221 images and videos. Moreover, rt has successfully prevented the attempted sharing of 12.271 non-consensual intimate images INCII) online globally These achievements underscore the commitment to combating NCII abuse on a global scale and showcasing SWGfL's leading fole in this critical field. SWGfL was inviled to represent StopNCII.org al a White House Roundtable, Internet Govemance Forum and the United Nations Commission of the Status of Women event where it also announced the important Integration of Microsoft's PhotoDNA hashin9 technology into StopNCII.org Page 3 South West Grid for Learning Trust Trustees, Report for the Year Ended 31 March 2024 Online Safety Tools and services Over the year, SWGfL delivered a total of 158 training sessions 360 degree safe The Trust's flagship school improvement t¢)ol continues to sel standards in school online safety strategy across all four nations. Numbers of schools regislered with any of Ihe 360safe platfoms totals 15.577 schools. representing 540/0 of all UK Schools. The usual annual assessment report highlighting school online safety policy and practice that draws on the 14,508 schools (Englandl. The report continues lo highlight data accessible nowhere else and available lo inform national safeguarding strategy al a governmental level. ProjectEVOLVE ProjeclEVOLVE continues to revolutionise online safety related education in the classroom. Since introducing the registration mechanism in November 2020, the service currently has 15,362 schools wrth 70.785 users. Since launch. ProieclEVOLVE has supported over 3 million assessments through the Knowledge Map mechanism from an estimated 850,000 children TestFiltering Testfiltering.com is a utility that helps schools and organizations easily check the effectiveness of their internet filtering systems. By quickly testing access to specific websites, the tool discloses that filters are working correctly lo block inappropriate content and maintain a safe online environment. Over the 12 months, 265,404 tests were completed Swiggle swiggle.org uk is SWGfL's child-friendly search engine designed to help young people explore the internel safely It provides a secure online environment with age-appropriale search resulls, ensuring that children can discover information and learn online while being protected from hamiful content. It welcomed 1.1 million users and 11 million page views Assisted Monitoring Servlce The Assisted Monitoring SeNice IAMSI. designed to assist schools with the monitoring of user activity within their setting and detect and advise on any serious issues. has established itself as an integral part of the Trust's work during the last 12 months. with a growing number of new schools being onboarded. as well as other individual siles Page 4 South West Grid for Learning Trust Trustees, Report for the Year Ended 31 March 2024 Strategic Work SWGfL has Continued to support Government departments including Department for Education, Home Office. Department Science, Innovation and Technology., as well as the Scottish and Welsh Governments. This support spanned both policy and awareness activities. SWGfL continues to organise and support the safeguarding teams across the four national governments, enabling sharing and collaboration of strategy and policy. SWGfL continued its support of the United Nations Internalional Telecommunications Union {ITU) in their Child Online Protection Initiative. SWGfL continued to contribute as a member of the World Economic Forum, Global Coalition on Digital Safety. SWGFL was nominated by the UK Government to participate in the Council of Europe Committee of Experts on combating technology-facilitated violence against women and girls. The relationship with Ofsted continues to be important and continued to provide online safely specialist training to Ofsted and completed a series of training webinars. UK Safer Internet Centre SWGfL has been a proud partner in the UK Safer Internet Centre, alongside IWF and Childnet, since 2011. The UK Safer Internel Centre activities have spanned six phases and been co-funded by the EU between 20118nd 2022. Since early 2022, Nominet agreed to continue co funding for UK Safer Internel Centre activities through to 2025. For SWGfL. this involves a range of activities including operating the Professionals Online Safety Helpline, Revenge Porn Helpline and ReportHamifulContent platform as well as delivering resources, content and Iraining. Its Online Safety Live programme saw 30 briefing sessions, welcoming 2,476 delegates with 980/0 'feeling better equipped to protect children users and their organisation,. This brings the total of briefing events to 612 since 2013 and the delegates tolalling 33,193., the largest online safety professional development programme in the UK. The important definitions of 'appropriate filtering, and appropriate moniloring,, first published in 2016, saw the iniliation of a significant review in 2023, largely catalysed by recent incidenls and the clear need for improved standards. SWGfL supported the Department for Education in developing new standards for filtering and monitoring in schools in England Building on Ihe UK Safer Internet Centres appropriate filtering and monitoring definitions and following a successful pilot, in January 2024 it released a new accreditation scheme for educational filtering systems, initially accrediting 3 filtering systems. Page 5 South West Grid for Learning Trust Trustees, Report for the Year Ended 31 March 2024 Partnership and Engagement Partnerships and Engagement SWGfL continued its strong growth in Partnerships and Engagement throughout 2023-24. Building on the successes of previous years, SWGfL expanded its visibility, reach, and impact across various initiatives. Over the past year, SWGfL significantly increased its digital presence. with a marked rise in website users and social media engagement, reaching a broad and diverse audience both in the UK and inlernationally. StopNCII.org emerged as a critical tool in combating intimate image abuse, with over 182,000 cases created by adults worldwid￿a nearly 1,000 % increase in activity. The platform's impact was highlighted through international media campaigns and recognized as a finalist in the Equals in Tech Awards. SWGfL's influence was further amplified through participation in high-profile events such as the Online Safety Day at TikTok's London Headquarters, the Internet Governance Forum in Kyoto, and the Safer Internet Forum in Brussels. These engagements underscored our commitment to global collaboration in fostering safer online practices. Its work in the UK was equally impaclful. The Revenge Porn Helpline saw a surge in cases, reflecting the growing need for our services. The Report Harmful Conlenl initiative launched a successful awareness campaign targeting harmful online Content in sports, expanding our outreach and influence. SWGfL'5 achievements were widely recognized, securing the Education and Training Award at the 2023 Charity Awards and receiving multiple nominations for other prestigious awards. Its contributions to shaping online safety policy were highlighted through presentations at the United Nations and the UK Houses of Parliament, where we played a pivotal role in advancing discussions on digital safety. Overall, SWGfL's continued growth in partnerships and engagement has solidified its position as a leader in Ihe global pursuit of a safer online environment, with a focus on both technological innovation and advocacy. Information Security and Data Protection Services Department for Education Cybersecure tool The DfE Cyber Secure Check for Schools, created by SWGfL was released in December 2023, is a free online tool designed lo help schools assess their cybersecurity readiness. It provides schools with a quick and easy way to evaluate their current cybersecurity practices. identify potential vulnerabilities, and receive tailored recommendations to improve their security posture. The tool aims lo ensure that schools are better protected against cyber Ihreats, safeguarding their digital environments for both staff and students. Page 6 South West Grid for Learning Trust Trustees, Report for the Year Ended 31 March 2024 Security product range Working with our partner, Phoenix, SWGfL continues to offer a suite of security products to schools and SMES across the UK. Sales of Soph05 products remain strong. Sales of Bildefender products, available across the UK, have continued to strengthen. Structure, Governance and Management Legal Ststus The Soulh West Grid for Learning Trust was incorporated on 11 October 2005 as a company limited by guarantee and is governed through the Memorandum & Articles of Association. The Trust commenced its activities on 1 December 2006 after the completion of a successful transfer from the previous consortium and was successfully registered as a charity with the Charity Commission in 2006. On the 19th October 2021, SWGfL became a registered charity in Scotland. On 1s1 January 2024, SWGfL completed a change to its constitution upon the adoption of updated Memorandum and Articles. The Trustees consider il appropriate to prepare accounts in accordance with the Charities SORP 2005, the Companies Act 2006 and Charities and Trustee Investment (Scotland) Act 2005. Organisation Structure The Trustee Board is in place to govern and steer the work of the Trust. Representation on the Board has been considered throughout the year alongside the Trust's constitution. The Finance and Audit Sub-committee continues lo effectively support the full Trustee Board in reviewing and scrutinising financial performance and operations. The Chief Executive Officer continues to provide overall leadership and direction for the charity, alongside the Senior Management Team through the creation and embedding of a clear long term strategy. The Senior Management Team who served during Ihe year and up to the date of this report are set out on page 1 of the accounts. Objectives The strategic plan clearly sets out the key obiectives and actions identified to be undertaken by the team over the coming years. Building on the current successes is a central feature of the plan, along with the aim to continue to advance education. safely and security through the services and products offered to schools and the wider learning community. The Trust is a charity dedicaled lo empowering the safe and secure use of technology through innovative services. lools, content and policy, nationally and globally. The Trust's vision is for everyone to be able to benefit from technology, free from harm. The key objeclives for the year ahead are.. 1. To continue lo provide education and training, alongside raising public awareness of such services available., 2. Build on the innovative services, tools and products portfolio provided., 3. Conduct and publish leading edge research into online threats and hams., 4. Work in partnership and collaborate with stakeholders nationally and internationally Page 7 South West Grid for Learnlng Trust Trustees, Report for the Year Ended 31 March 2024 Risk Management The Trust has implemented and conlinues lo review the risk management processes in place. In the context of the changing landscape and market, the Trust has identified that medium to long temi risks require greater analysis and mitigation and consequently a suitable methodology has been put in place. How Activities Deliver Public Benefit The Trustees confim that they have complied with their duty in section 17{5) of the 2011 Charities Act to have due regard to the guidance on public benefit published by the Chanties Commission. The overriding vision and purpose of the Trust is 'the advancement of education andlor the advancemenl of health and the saving of lives, in each case for solely charitable purposes by any means through or otherwise relating lo the effective andlor safe use of infomiation and communication technologies ,in¢luding but not limited to, the provision of broadband connectivity,. e-Learning facilities; education materials., information and knowhow on the effective use of infomiation and communication technologies by educational establishments., infomiation and knowhow relating to online safety issues and relating to information and communication technologies). In delivering that vision. the Trust has continued throughout the 2023124 financial year to.. Deliver on its Operational Services & Contractual Obligations Deliver on its Product & Service Portfolio Improve the reputation and visibility of SWGfL site & Edlesa Financial Review Financial Results The results for the year and the Trust financial position al the end of the year are shown in the attached financial statements which show that as at 31 March 2024 the Trust had net assets of £ 2,251,961. An appropriate expenditure and procurement policy is in place to ensure future expenditure continues to represent value, and this policy will be reviewed and updated as required. Reserves Policy The Trust seeks to maintain a level of reserves which is consistent with its responsibilities and liabilities as an employer and to provide a resource to manage future risk in regard to changes in the operating environment. The Trustees assess the appropriateness of this reserves policy on a regular basis to ensure that changes lo the operating environment and their impact are incorporated into the reserves so that the Trust can continue to provide its charitable objectives for Ihe future. The attached financial slatements show an unrestricted reserve of £2,251,961 which is reasonable and con51Stent with the Trust's objectives and reserves policy. Page 8 South West Grid for Learning Trust Trustees, Report for the Year Ended 31 March 2024 Investment Policy Funds held by the Trust are held with banks in short term deposrts which offer reasonable rates of interest and which comply with the credit rating policy adopted by the Trustees. Financial Risk Management Objectives and Policies The charity's principal financial instruments comprise the bank balance, trade creditors, deferred income and trade debtors. The main purpose of these instruments is to raise funds for the charity's charitable objectives. Price Risk, Credlt Rlsk, Llquidlty Risk and Cash Flow Rlsk Funding received in foreign currencies is subject to a price risk management policy through the use of FOREX mechanisms. Trade debtors are managed in respect of credit and cash flow by policies concerning Ihe credil offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditor liquidity risk is managed by ensuring that sufficient funds are available lo meet amounts due. Conclusions Over the last Iwelve months the Trust has continued to deliver ils charitable objectives in an environment of continued pressure on local authorities, schools and the wider public sector. Ongoing successes with projects regionally, nationally and internationally demonstrate the skill and expertise of the team. The Trust has continued to drive improvements within each of the business units, culminating in good customer service as well as the introduction of new products and services and in contractual service delivery. The Trust has delivered good financial performance for the year, capitalising on new opportunities as well as existing charity activity to maintain positive levels of income whilst controlling expenditure and improving the processes for managing the key financial aspects of the operation of the Trust, resulting in a healthy balance sheet. The control over Ihe running costs reflects an ongoing need to ensure all services delivered by the Trust are highly cost effeclive, but has also increased pressures and demands on the team. It is pleasing to note that. despite these pressures, the team have remained focussed, committed and motivated to ensure the continued success of Ihe Trust. They are to be congratulated for Iheir efforts. Page 9 South West Grid for Learnlng Trust Trustees, Report for the Year Ended 31 March 2024 Auditors A resolution proposing Ihal Thompson Jenner LLP be reappointed as auditors of the charity will be put to the Annual General Meeting. The annual report w approved by the Board on • J and signed on its behalf by.. Robert Bond Company Secretary Page 10 South West Grid for Learning Trust Statement of Trustees, Responsibilities The trustees (who are also the directors of South Wesl Grid for Leaming Trnst for the purposes of wmpany law) are responsible for preparing the Irustees, report and the financial statements in aecordance wilh applicable law d United Kingdom Accounting Standards (United Kingdom GLnerally Accepted A¢¢ounting Practice), including FRS 102 'The Financial Reporting Standard applicable in Il?e UK and Republic of Ireland" Company law r¢quires the trustees to prepare financial slalemenls for each financial year. Under company law the trustees musl nol approve Ihe financial stalemenls unless they are satisfied ihal they gpive a true and fair view of the state of affairs of Ihc charitable coinpany and of the incoming resources and application of resources. including 115 income and expenditure, of the charitable ¢ompxny for that p¢riod. In preparing these financial Statements. the Iruslecs are required 10: select suilable accounting policies and apply Ihem consistently,. observe the methods and principles in ihL C harities SORP; make judgements and eslimaies that are reasonable and prudent; state whether applicable accounling staiidards, comprising FRS 102 have been followed, subject lo any material departures disclosed and explained in the financiiil sllilemenls; And prepare the financial slalements on the goingF concLrn b3$15 unl¢ss il Is inappropriate to presume that the chariiable company will ¢ontinue in biisincss. The trustees are responsible for keeping propcr accouniing records Ihal can di￿lOse wilh reasonable accuracy at any lime the financial position of the charitable Company and enable them to ensure ihal Ihe financial statements comply wilh th¢ ('ompanics Act 2006. They are also responsible for safcguarding the assets of the charitable oIMpany and hci)cL' tor laking reasoiiable qleps for the prevention and deleLlion of fraiid and other irregularilies. The irustecs are rcspon5ible for Ihe maintenaiice and integrity of the corporate and financial information in¢liided on the charilable company's wcbsilL. Legislation governing the prcparalion and dissemination of rinancial stalemenls may differ Irom leg>islation in other jurisdictions. Disc105ure of informmlion to Mudilor L aLli IruslLL ha5 IdkLI) Stcps tl)dt Ihcy oiight to have iaken as a Iru51ee in order lo make ihem5elves aware of any relevant audit information and to C51ablish il)al Ihe charilablc company's auditor 14 awarc of that infomialion. The Iruslees confimi that ther¢ is no relevant informalion Ihat they know of and of which they know the auditor is unaware. App the trustees of the charitable company on J.1.. 2.¥and signed on 115 behalf by: R Bond Company secreta nd trustee Pagell South West Grid for Learning Trust Independent Auditor's Report to the MembLirs of Si)uth West Grid for Learning Trust Opinion We have audited the financial statemenls of Souih Wc51 Grid for l.eaming Trusl (the 'charilable company,) for the year ended 31 March 2024, which comprise the %tatciiiei)l of [' inancial Activities, Balance Sheet. Statement of c'dsh l.'lows, And Noles to the P inancial Sialemenls, includingTr a summary of significant accoiinting policies. -rhe financial reporting framework that hils been applied in Iheir prepdralion is United Kingdom Accountirkg Siandards, comprisingl Charities SORP - FRS 102 "I'he financial RLporting Standard applicable in the IJK and Republic of Ireland, and applicable law l United Kingdom Generally A¢¢epled Accounting Praciice). In our opinion the financial sialements: give a true 8tkd fair view of th¢ stale of the charitable company's affairs as al 31 Maruh 2024 and of ils incoming rL50urces and application of r¢50urc¢s, including it5 incomc and expenditure. for Ihe year then ended: have been propcrly prepared in accordance with Uniled Kingdom Generally Accepted Accounlin8 Praclicc; and have been pr¢pared in accordance wilh the requirements ol. the Companies Act 2006 and Ihe Charities and Trustee Investment (Scoilandl Act 2005 And regulation 8 of the Charities Accounts Iscoilandl Regulations 2006. IIA$iS for 01)inion WL L()iidiiLILd our audit in accordance wilh International Siandmrds on Auditing (UK) IISAS (UK)) and appliLable law. ()ur rLsponsibililies under ih(1SL %landard5 are furtlicr described in the auditor responsibilities for IhL' dudil of Ihc financiAI 51atemenis 5ccllUI) (if Dur report. Wc arL independent of the charitable coinpany in ÉILcordRnce wilh IhL' ethical requiremen15 Ihal iirc rL.levdnl Ic) c)ur alidil of the financial statements in the UK, including ihe l.'R("5 Lihical Standard. and we have fulfilled our other eihical responsibilitles in accordance with IhL'5L fLquifL'lliLnls. We believe thai the audit Lvidence we have obiained is su(fi¢ienl and appropriate to provide basis for c)ur opinion. C onclusion5 relAlin2 to %oin2 concern In audiliiig ihc finanLial sl4tLttlLnts. wc havc concluded ihai the injstees use of the going concem b￿lS of accounlinbp in thc preparation of the financial st1£ leinenls is appropri411e. Based on thc work we have perfonned, we have nol identified any Inaterial uncertaintie5 relaling lo evenls or condiiions ihai. individual ly or collectively. iiiay cast Signi ficant doubt on the charitable company's ability to Colilinue as a going concern for a period of at Ica5t twclve monih5 trom when ihe original finan¢i&l stat¢menis wirL duthorised for issue. l)ur rcsponsibilities and the re5ponsibililies of Ihe trustees wilh respecl to going concern are described in the rL.ILV41nt seelions of Ihis report. l)ther informAtion The Iruslees are responsible for the other inloriiialion. The other inlor]nation Comprises the infi)riMation in¢luded in Ihe annual report. oihcr than the financial statcments and our aiiditor's r¢port thereon. ()ur opinion on ihe financial slalemenls does noi covcr the other infomialion and, exccpl to the extent otheNise explicitly slated in our report, we do not express any fom of Assurance conclusion Ihereon. Page 12 South West Grid for Learning Trust Independent Auditor's Report to the Members of South West Grid for Learning Trust In connection with our audit of ihe financial statements. our responsibility is lo read the oiher inforniation and. in doing so. consider whether the other infomalion is materially itkconsislent with the financial staiemenls or our knowledge obtained in the audit or oiherwise appears to be materially misstaled. If we idLntify such material inconsislencies or apparent material misslatements, we are required to delerniine whether Ihere 15 a malerial misstalemenl in the findnLial statements or a material misstalement of the oiher information. If, based on the work we have perfomied, we conclude ihal there is a material misstalemenl of ihis other inforniation, we are required lo report that fact. We have noihing 10 report in Ihis regard. Opinion on other matter proscribed by the C.omi)anies Act 2006 In our opinion. based on Ihe work undenak'ei) iii the course ol. Ilie dudil.. the informalion given in the I'ruslees RLPOrt for the financial year for which ihe financial statements are prepared is consislenl with the financial slat¢ments- and Ihe Tru51ees Report has been prepared in accordance with applicable legal requirements. Matters on which we Are required io report by exception In the light of our knowledge and undcrsldndin&J of ihc eompany and ils environment obiaiiied in the course of the audit, we have not identified material misstatemenis in the dirc¢lors' report included within the Iruslees rLpi)rt. We have nothing to report in respect of the following malters wh¢re the Companies Act 2006 requires us to report lo you if, in our opinion.. adequate accounting records have not been kcpi, or returns adcquale for our audit have not been received from branches not visited by us. or the financial statements are nol in agreement with the accounting records and returns. or certain di5¢10sures oftrustees remuneration specified by law are nol made: or we have i)ol received all Ihe informalion and explanations we require for our audit. Responsibilities of trustees A5 explained more fully in the Statement of 'l'ruslees' Responsibilities Iset out on page I 1], the trustees are responsible for the preparation of Ihe finanL'idl slalcmcnls dnd for bcing 53tlsfied that they gTrive a true and fair view, and for such inlcrnal conlrol as Ihc Irii8lces determine is necessary lo enable the preparation of financial statements that are free from Illclterial mi5514ilcin¢nl, wheilier due lo fraud or error. In preparing the financial 5taiemen15, the trustees are responsible for assessing the charitable company's ability lo conlinue as a going concern, disclosing, a5 applicable, mallers related to going concern and using the going conLLrn basis of accoui)ling unless tlie Iru.slees eiiher inlend io liquidale the charitable company or to cease opcr8tion5, or have no rcalislic altcrnalive bul lo do so. Page 13 South West Grid for LL'arning Trust Independent Auditor's Rep()rt to the Members of Si)uth We$t Grid for Lcarning Trust Auditor responsibilities for the aullit of the finAncial statements We have been appointed as aiidilor under section 4411 Ilc) ol. Ihe Charities and Trustee Investment {Scoiland) Act 2005 and under the c.ompanies Act 2006 and report in accordance with the Acts and relevant regulations made or having effecl ihereunder. Our objeLiives are io obtain reasonable assurance ab()ul whether the financial statements as a whole are free from material misstalement, whetlier due to fraud or error, and io issue an auditor'5 ￿Port Ihal includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarante¢ that an audit conducled in accordance with ISAS IIJK) will always delect a 111(Il¢rial misslalemenl when it CX15ts. Misstatements can arise froin fraud or error and are considered material if. individually or in Ihe aggrcgale. thcy could reasonably be expeclcd lo influence Ihe ecoiioinic dc¢ision5 of user5 lakcn on Ihe basis of these financial stalcmenls. A5 part of an audil in accordance wilh ISAS (UKI, we exercise professional judgemenl and maintain professional sceplicism throughout the audil. Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We design procedures in line with our responsibililies, outlined aix)ve, to delecl material misstatements in respecl of irregularilies. including fraud. 'fhe extent io which our procedures are Capable of detectin8 irregularities, including frnud is de(3iled b¢low. The ex¢ent to which the Audit WAS coiisidereil c8p4ble OC detecliii% irreEularitie5 IneludinR fraud Our approach lo identifying and &ssessing the risks of material misstatement in respecl of irregularities, including fraud Mnd non-compliance wilh laws and regulaiions. was as follows.. Ihe engag¥Lmenl partner ensured Ihal the engagemeni Icam colleclivcly had the appr()priale compelencc, capabilitie.8 and skills io identify ur reco¥nise non-complianLc with applicable laws and regulations; c identifi¢.d Ihe laws and rcguldli()ns applicable li) Ihc Lc)11)pany through discussions wilh directors and oiher Illdiiagemcni. dnd froin i)ur Lommercial ki)owledgJL Kind experience; ¢ fociisL.d i)n sp¢¢ific law% Mnd rcgjulmtions which wc LoiisicILrLd may have a direct matLrial effecl on thL financial qlalements or Ihc iipLre i)f actual, suspecled 8nd alleged fraud.. and onsid¢ring the internal conlrols in place lo mitigate risks of fraud and non-compliance with laws and regFulaiions. Page 14 S()uth WL'%t (Jrid f()r l.i'arning Trust Independent Auditor's Report l() thc. ML'mhcr• ()f .%()uth West Grid for Learning Trust 'I'o address the risk of fralid ihrough manag¢mcnt hi(Is and override of controls, we.. pertormed analytical procedures Ic) i(ILnli fy any unusual or uncxpecled relationships- teslL.d journal entries to ideiitify uiiuqual IransaLlion5; &4.%essed whether judgements and £￿SUMptIOnS made in determining ihe accounting eslimates were indicative of potential bias: and invcstigaled the rationale behind significant or unusual transactions. In response lo thc risk of irregularities and non-compliance with IdWS dnd regulalions. we designed procedures which included, bul were not limited io.. agreeing financial slalcmLnt discl()sures ttTr underlying 5UPPOrting documentation; reading IhL minuics uf mecling?s ol-Ihi)SC Lhargped with goveriiarice. enquiring of mandgement as tc) acliiic l and potciitial liligalion and claims. and reviewin¥ Lorrcspondcncc wilh I IMR(' relevant rcgulalors and Ihe company's legal advisors. 'J'hcrc arc inhLrciil limitations in our audil pri)ccdurcs dcscrihcd above. The more rcmovcd thal laws and rLgriilalj(In5 arL fr()m findl)Lial IrdnsdLlic)ns. IIIL less lik'Lly il 1% Ihnised once there 15 a leg. l or conslruclive obligation to that expendilure, il is probable setilemenl is required and the amounl cdn bL' mea5ufL.d rLliably. All costs are allocaled lo the applicable expLndilure headinb Ihal dBgregMIc similar cost.s to thal catebFOry. Where costs cannot be directly allribuled to particular headings they have been allocated 01) a basis consislenl wilh the use of resources, wilh Lenlral slaff costs allocated on the basis of lime spent, and depreciation charb?es allocated on the portion of the asset's use. Other support cosls are ulloLatcd based on the spfLad of Staff ¢ostS. Charilable aclivilie5 Charilmble expcnditure comprises Ihose costs incurred by Ihe charily in the delivery of its a¢tivilies and services for ils beneficiaries. li include5 1)oih costs thal can be allocated directly to such activities and th05e ¢0515 of an indirccl nalure necessary lo support Ihem. Page21 South West Grid for Learning Trust Notes to the Financial Statements for the Year Ended 31 March 2024 Supi)ort C4)sts Resources expended are allocated lo the particular activily wh¢r¢ the Cost relates directly lo thal activity. F4owever. the cost uf i)verall direction and admirki5tration of each activity, comprising the salary and overhead osls of the Central funclion, 15 apportion¢d on th¢ following basis which are an e5timale, ba5cd on stsff time. of the amounl allribulahle to each activity. 2024 2023 Online Safely Barefoot 93% 800/0 Licencing, Schools Inlemet Service 5/0 Governance eosls These include the costs attributable to the charilable company's Lomplian¢e with constilulional and statutory requiremenls, including audil, strategic mana&Fcmenl and tru51ee5 mc¢lin8s and reimbursed expenses. TAxHlion l-hc cliarilable comp(1ny is considered to Pllss the tests Sel oul in PAragpraph I Schedule C) of Ihe Finance Act 2010 and ihcr¢f(Trri il meets the definition of a charilable Lc)Inpany for UK corporalion lax purposes. According¥ly, the charilable company is poIL'niially exempi from laxalion in respect of incoine or capilal gain5 received wiihiii calegyciries covered by ChaplLr .1 Part I l of IhL Ci)rp()ralion Acl 201 O or Se¢lion ?56 of the T&xalion of ("har&FL'ablc Gains Acl 1992, lu IhL exlenl ihal such incoine or gains are applied exclusively to charilablc purpos¢s. IntAnRihle #sset% Inlang>ible assL'ls arL Staled in the BdldnLc %IiLLI al cosl Icss accLtmuliiled amortisalion and impairmenl. They are amortised on a straight line basis ovcr Iheir csliinated useful liv¢s. T8n%ible fixed *5.set5 Individii£il fixcd a55L15 Costing £250.00 or more are inilially recorded al ¢osi, less any subsequent 8¢¢umulated deprecialion and subsequent accumulaled impairnient1055es. Amorti$4tiaii Ainort15ation is provided on inlangiblc fixcd i18qcls so as to write off the cost. less any estiinated residual value. ovcr Ih¢ir ¢'xp¢cl¢.d y%eful economic life as folliiws.. A55et class CompulLr software Aillorti58tion method And rate Straight linc basis Depreciation and amortisation Deprccimiion is provided on tangTible fixed dtsSLls so as to write oif Ihe cost or valuation. less any eslimat¢d residual value, over their expected useful ecoilomic life as follow5- Asset class FixlLtres and fittings l)epreci*tion method #nd rate 330/0 Strdighi line b￿15 Page 22 South West Grid for Learning Trust Ni)tes to the Financial Statenients for the Year F.nded 31 March 2024 Business combinations Ilusiness cc)mbinalions are accounted for under the purchase Ineihod. Where necessary. adjuslmenls are made to the financial slalemenls of subsidiaries lo bring the acLouniinb policies used into line with Ih05e used by the charilable company. All inlra-group Iransdclions. balances, income and expense5 are eliminalcd on consolidation. In accordance with S¢¢lion .35 of i.-RS 102, Sc¢lion 19 of FRS 102 has not been applied in these rinancial stalemenls in respecl of business ¢ombinalions effected prior lo Ihe dale of Iransilion. 'rr#de debtors Trdde debtors are amounts due from customers for merchandise sold or services perfornied in the ordinary ioursL uf bu5inL%S. 'rradc debiors are reco¥niscd initially at ihe trnnsaclion price. They are subsequently measured Ai amortised cost U.5ing Ihe effective interesl meihod, less provision for impairnicnt. A provision for the impairnicnt af irade debiors is eslahlished when there is objcctivc evidence thal Ilie charilahle company will not be able lo collecl all amounls due according to the original teriiis of Ihc receivablcs. c.ash And cA5h tquivaltnts C'a.%h dnd Lasl) L4UIVdlenls compri5L cash ()n hdnd ai)d cull dLp().4il%. and other shc)rt-lenn highly liquid invL.%lmen15 ihat arL' fLadily convertiblL to d knowi) aii)uunt of Cdsl) and are subjeci to dn insignific4ml risk or cliaiigJL' in value. rade creditors 'rrade creditors &re obligations lo pay for goods or services Ihal hi( ve been acquired in Ihc ordinary course of business from suppliers. Accounts payable arc clas5ificd as currenl liabilitie5 if the charilablc company does not have an uncondili()nal rigyhi, al the end ()f the rLporting period. lo defer setilemenl of the creditor for ai le351 twelve monihs after the reporting dale. If there is an unconditional rigl?t lo defer seltlemenl for al le&51 Iwelve months after the reporting date, they arc presented as non-current liabilities. Trade creditors are recognised initially al the transaction price and subsequenily measured al amoff ised ¢051 using the effective interest method. oreiRn exehmnge ransaclions in foreign currencies are recorded at the rdie of exchangye at the date of the transmclion. Monetary assels and liabilili¢s dcnominaled in l<)r¢ib>i) Lurrcncies at thL bal2( ncc sheet dale are reported at the rates of CXLhangic prevailin¥ al thal date. Other exchangFe differences are recognised in the statement of financial activities in the period in which they arise except for.. I l exchange differences on transaclions enlered into lo hedge certain foreign curyency risks (see above). 21 exchange differences arising on gain5 Qr losses on non-monetary items which ar¢ recognised in other comprehensive income. Fund Structure LlnrestriLied ii)come funds are general funds Ihal are available for use al the trustees discretion in furtherance of the objectives of the charilable company. Page 23 South West Grid for Learning Trust Notes to the Financial (itatements for the Year F.nded 31 March 2024 Pensi011s aiid other p05t retirement obli%Ations The charity opL'riiles a defincd conlriblilion pension plan. A defined contribution plan is a pension plan under which fixed contribuiions are paid into a pension fund and the charilable company has no legyal or construclive obligation to pay furtl)er contribuiions even if the fund does not hold su￿1Clent assets to pay all employees the benefits relaling to Lmployee servicc in the Cu￿ent and prior periods. Conlribulions lo defined contribution plans arc recognised as cniployee benefii expense whLn ihey are due. If conlribulion paymeiils exceed Ihe conlribution due for s¢rvi¢e, Ihe ¢xc¢ss is recognised as a prepayment. Financial instruments Clai.sifii'allOII l-he C harily only has financial assets and financial liabilities of a kind thal qualify &$ basic financial inslrumenls. Basic financial inslrun)cniS are iniiially rLcognised al transaLlion price and subscqu¢nily mcasured at their seiilemenl valuc. 3 Inromt from chAritAble Metivities [lJire¥tricted fuiic15 (JcnerAI Restricted TolAI 2024 Totgl 2023 Online Safely 13arefool Liccnciiig ehools InlernL%l Service OpL'ralional 725.581 9,583 54,400 68,347 1.19.S,095 1,920,676 9.-58.3 .54,400 2,691,886 48,069 174.124 449.209 1,545 857.911 I, i ()S.0()5 2,053,006 3,364,8.33 The prior year'5 total income from charitable activities of £3.-164,83.I included unreslricled funds of £1.075.383 and restricted funds of £2,289.4.f O. 4 Investment Income [InreslrIct￿I fun 129,144 47,648 44,705 35,413 202.922 i 0,000 254,101 460,032 Page 30 South West Cirid for Learning Trust Note5 to the Financial Statements for the Year F.nded 31 March 2024 16 Creditors: amounts falling due wiihin one year 2024 2023 Trade credilors Other taxation and social security Other ¢r¢dilors Accruals Deferred income 64,931 24,881 300,547 371.050 203.575 22.257 677.803 279,16.5 715,260 1.274.685 2024 2023 D¢fcrred income ai l April 2023 Resources defe￿ed in the period Amounts released from previous periods 677,801 27.3.565 {672,203) 634,698 431,820 1388,715 Deferrcd income al ycar end 279,165 677,803 17 Oblig*tion5 under lethses And hire purchase contract5 Operating lea%e commitments Tol of intimate image buse and supportiii&F viclims. Home oifice {RP) funding relates lo funding lo the support work in combatting violence againsl women and girls. Home Office 114SBSS) funding relales to funding lo support SWGfL aid safeguarding professionals on tackling harnilul sexual bcliaviour. DCMS Mincrva project funding relale5 lo funding to support SWCIfl, in improving the lives of disadvantaged woincn and &Tirls. Page 35 South West Grid for Learning Trust Notes to the Financial Statements for the Year Ended 31 March 2024 20 Analysis of net Assets belween funds [Inrestricted fund. CpenerAI Total fund8 At 31 Illarrh 2024 Restricted funds Inlangible fixed assets Tai)gible fixed assels l.'ix¢d a55el investments C￿￿ent a55¢15 c'u￿ent liabilities 816 10,332 816 10.332 2,910,245 1669,4.33) 45.827 145,827) 2,956,072 1715.260) .1 otal nei &ssels 2,251,961 2,251.961 Ilnrestricted 'rotxl funds at 31 MArch 2023 Restricted funds ljenerxl Intangible fixed assels Tangible fixed &ssel ' ixed asset inveslmenls C.uTheni &sselS Current liJbiliiies 2.601 19,633 2,601 19.633 3.393,936 11.044.792) 229,893 (229,893} 3,623.829 (1.274.685 Total net assels 2.371.379 2,371.379 21 Analysis of net funds At l April 2023 Fin*ncin2 ealsh nows At 31 MArch 2024 Cash at bank and in hand 3,16.3,797 1462.026 2.701,771 Net debt 3,163,797 1462,026 2.701.771 At l April 2022 Financing cash flows At 31 March 2023 Cash al bank and in hand .3,211,438 47,641 3,163,797 Net debi 3,163,797 Page 36 South West Cjrid for Learning Trust Notes to the Financial StatL'ments for the Year F.nded 31 March 2024 22 Related party Ir8nsActions Other relAied parly transarlions The -I'rusl's governing document was amended during Ihe year and as a result of this Local Authorities no longer meet th¢ definition of a relatcd pmrty as of Jdlllldry 2024. Due lo the nature of the Trust's operation5 procuring services on behal f of the Local Auihorilies and the board or truslecs including represenialives from ihe Local Authorilies. transactions inevilably take place be(we¢n ihe trust and organisdlions in which the Irustees have an interest. All transactions arL cunducled al anns length and no specific transactions have o¢¢urred in which a trustee has an individual intcresl. Thc total reslriclLd lunds receivcd for cach I,ocal Authorily relating to broadband growth and mainlcnance wlii¢h is unspenl ill IIIL year end is as follows; 2024 2023 Devon 112,193 12,193 110,363 3,403 12,447 Gloucester Plymouth Swindon 3.403 12.447 Torbay Wiltshire 7,578 7.578 As Ihese servic&8 are no longer offered by South West Grid for Learning Trust, the funds are now included within other creditors. In the previous period these were reportcd as deferred income. Page 37