2021-03-31-accounts

Registered number: 06953650 Charity number: 1132122

NEW SCHOOLS NETWORK (A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

NEW SCHOOLS NETWORK

(A company limited by guarantee)

CONTENTS

	Page
Reference and administrative details of the charity, its Trustees and advisers	1 - 2
Trustees' report	3 - 8
Trustees' responsibilities statement	9
Independent auditor's report on the financial statements	10 - 14
Statement of financial activities	15
Balance sheet	16 - 17
Statement of cash flows	18
Notes to the financial statements	19 - 34

NEW SCHOOLS NETWORK (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees	David Ross, Chair of Trustees
	Julie Kirkbride, Vice Chair of Trustees (from 20 April 2021)
	Simon Amess
	Katharine Birbalsingh (resigned 17 September 2021)
	Geoffrey Davies (resigned 30 October 2020)
	David Hall (appointed 28 April 2021)
	Mohamed Isap (resigned 29 June 2021)
	Philip Jones
	Andrew Law (resigned 4 March 2021)
	Sir Nicholas Weller
Company Registered Number 06953650 Charity Registered Number 1132122 Registered Office 71-75 Shelton Street Covent Garden London United Kingdom WC2H 9JQ Company Secretary Alison Mugunthan (to 15 July 2021) Teresa Clack (from 16 July 2021) Senior Management Team Unity Howard, Director (resigned 10 September 2021) Sophie Harrison-Byrne, Director (appointed 15 September 2021) Alison Mugunthan, Director of Finance & Corporate Services (resigned 7 August 2021) Teresa Clack, Head of Finance (appointed 28 June 2021) Samuel Skerritt, Head of Content and Communications Emma Gregory, Head of Academy Ambassadors Samuel Fitzpatrick, Head of Development and Partnerships (appointed 1 April 2020) Hannah Jackson, Head of School Programmes Daniel Howells, Interim Director of Programmes (appointed 1 December 2020, resigned 16 July 2021) Sam Duran, Head of Delivery Services (resigned 4 March 2021) Independent Auditors Streets Audit LLP Chartered Accountants & Statutory Auditor Beaumont Business Centre 6 Snow Hill London EC1A 2AY

Page 1

NEW SCHOOLS NETWORK

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Bankers

Solicitors

Lloyds Bank Plc 25 Gresham Street London England EC2V 7HN Stone King LLP 91 Charterhouse Street Clerkenwell London England EC1M 6HR

Page 2

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report together with the audited financial statements of New Schools Network (the charity or NSN) for the year 1 April 2020 to 31 March 2021.

The Trustees confirm that the Annual report and financial statements of the charity have been prepared in accordance with the accounting policies set out in note 1 to the accounts and 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 (Charities SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, Governance and Management

Constitution

NSN is a charitable company, limited by guarantee, and was set up by a Memorandum of Association on 6 July 2009, with charitable status established on 14 October 2009. It is governed by its Memorandum and Articles of Association, as amended 18 April 2018.

The liability of each member of NSN in the event of winding up is £1. At 31 March 2021, there were seven guarantor members (the Trustees) with two leaving us during this period as noted on page one.

Organisational Structure and Decision Making

The management of the charity is the responsibility of the Trustees who are appointed under the terms of the Articles of Association.

The Trustees are the directors of the charitable company in accordance with the provisions of the Companies Act 2006. The appointment of new trustees is made by resolution of the Trustees. The policies and procedures adopted for the induction and training of new trustees are tailored to their individual needs, commensurate with their experience, ensuring that they understand their obligations and possess a sufficient knowledge as to how to discharge them. The Trustees meet at least four times a year. They are responsible for directing all major strategic decisions of the charity. During this reporting period the Trustees accepted the resignations of Andrew Law and Geoffrey Davis and have accepted the resignation of Mohammed Isap since the year-end. The board wish to thank Andrew, Geoffrey and Mohammed for their services to NSN. David Hall has been appointed to the board on 28 April 2021.

In 2020, the board undertook an external governance review, which supported the creation of a new committee structure.

Trustees operate three sub-committees – an audit committee, a remuneration committee, an education committee. Only Trustees are members of the committees.

The day to day management of the charity is the responsibility of the Senior Management Team. The members of the Senior Management Team are considered to be the key management personnel.

The remuneration committee recommends the Director's remuneration as well as monitoring remuneration policies generally. The Director is not a trustee.

Related Parties

The charity requires all Trustees and key management personnel to declare any business interests. Related party transactions are disclosed in the notes to the accounts.

Page 3

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Risk Management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Objectives and Activities

Objectives

The objects of the charity are to promote, through advice and assistance, the advancement of education in maintained charitable schools (within the meaning of the Education Acts) and academies (established in accordance with the Academies Act 2010 and any successor legislation), including by assisting with the creation of new schools of this sort, with a view to improving educational opportunities for young people and in particular those in necessitous circumstances.

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the period.

Activities

The charity continues to be the only charitable organisation providing free, high-quality advice and support to free school applicants and targeted support specifically for open and approved free schools. During the period between 1 April 2020 and 31 March 2021, NSN’s work consisted of four parts:

• Developing a lead generation strategy in anticipation of future free school waves, including identifying areas of potential need and providing advice and guidance to potential applicants.

• Providing intensive support and challenge through our Development Programme to applicants that have the potential to open outstanding new schools through the local authority presumption route;

• work with groups after their schools have been approved to open and during their first years of operation to help them to be as successful as they can be; and

• Recruiting and supporting executive leaders from businesses and the professions as trustees and members to the boards of academy trusts, through the Academy Ambassadors programme.

Due to the global pandemic and the absence of a free school wave, NSN’s Advisory Services throughout this period focussed on supporting applicants to apply to:

• Local Authority presumption competitions; and

• Local Authority commissioned special and alternative provision free schools, wave 2.

Between 1 April 2020 and 31 March 2021, services offered on the Development Programme included:

• a dedicated named adviser;

• a personalised support plan;

• education, governance and finance specialist meetings;

• training events and networking opportunities;

• small funding grants to help with community engagement, and

• • mock interviews.

Page 4

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

NSN’s Delivery Services support free school groups in pre-opening and following their opening. Launched in 2014, NSN has developed and formalised a programme of free support to assist schools in the time before they open, and the months and years that follow. This includes:

• large events at critical points during the period in which schools are in pre-opening;

• opportunities to share and learn best practice through visits to thriving free schools and networking opportunities;

• a dedicated question-and-answer service via telephone and email, as well as tailored surgery sessions for open schools on issues such as education, governance, finance and staff recruitment;

• providing free intensive media and spokesperson training for all open free schools;

• a regular e-newsletter to all open and pre-open free schools highlighting events, policy updates, free school news and case studies; and

• a library of online resources and tools.

Launched in 2017, NSN’s Delivery Programme offers intensive, paid-for support services to trusts with free schools in pre-opening. These focus on ensuring that free schools are prepared to undertake the rigorous preopening process and successfully open their school.

The Academy Ambassadors Programme provides a free, bespoke recruitment service to academy trusts looking to strengthen their boards. The team recruits high-calibre business candidates and professionals with skills in areas such as finance, law, audit, risk, education leadership, change and growth management and introduces these candidates to trusts as potential members, trustees or non-executive directors. Since 2013, the programme has helped trusts to fill over 2,000 board roles.

The programme also provides support to non-executive directors in the form of events, webinars, and induction and support materials. The programme has received in-kind support from a range of partner organisations including KPMG, Lloyds Banking Group, Northern Powergrid, PwC, Rolls-Royce, Barclays, Vodafone and Santander.

Acheivements and Performance

In line with national restrictions, all NSN staff worked remotely throughout the majority of the pandemic. NSN’s customer facing support was adapted to be delivered remotely using video conferencing. The Trustees wish to express their sincere thanks to everyone at NSN for their contribution over a particularly challenging year due to the pandemic, and for adapting so quickly and effectively to new working arrangements. The commitment and flexibility of our people has been the major factor in maintaining and developing our services over this difficult and uncertain period.

In February 2021, the outcome of Wave 14 was announced. 52% (15/29) of the applications that were approved or approved “in principle” worked with NSN on the Development Programme. Nearly half (45%) of groups on the Development Programme were approved or approved “in principle”.

In June 2020, the outcomes of the Local Authority Commissioned Special and Alternative Provision, Wave 2 were announced. NSN support 19/37 (51%) of all approved applications. Two local authorities who were unable to find a successful sponsor held re-runs in the summer of 2020. NSN supported four groups on the Development Programme to apply for these competitions and a fifth received bespoke interview support.

In the absence of a central wave, NSN continued to plan a lead generation strategy, identifying areas of the country with the highest need for school places and the lowest educational standards. NSN continued to provide a universal service to potential applicants, delivering 88 one-to-one advisory meetings. 100% of those surveyed found the service to be useful and stated the meeting had increased their knowledge of the free school process.

Page 5

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Between April 2020 and March 2021, NSN worked with 17 applicant groups submitting applications to 19 different local authority presumption competitions. Of these, 5 are known to have been approved (for some competitions, NSN supported competing bids).

NSN delivered a series of 5 virtual events in partnership with the Department for Education for new principal designates in January 2021. Across the sessions, 99% of attendees found the events useful or very useful, and would recommend to others. NSN also delivered two separate ‘launch event’ series for trusts approved in the SEN Wave 2 and Wave 14, introducing delegates to the pre-opening process. 100% of delegates for both launch programmes found the sessions useful or very useful.

NSN held virtual ‘Spotlight visits’ at 4 Good and Outstanding free schools between 1 April 2020 and 31 March 2021. 100% of attendees found these sessions useful or very useful.

In September 2020, NSN also launched a networking platform for free school leaders (“the Hub”), through which free school head teachers and principal designates can connect with one another and access tailored content for new free schools. As of March 2021, the Hub had 87 free school leaders on the platform.

The total number of academy trust board appointments made through the Academy Ambassadors Programme in 2019-20 was 420, an increase of 26% on the previous year. We achieved particularly strong performance in regions such as West Midlands and Lancashire and West Yorkshire, which saw the most appointments over the year at 145. 44% of all appointments this year were to trusts identified as ‘high need’. These are trusts which have experienced significant governance or financial challenges and are referred to the programme directly by the DfE.

In November 2020, NSN hosted a virtual Board Development Programme which brought together hundreds of leaders in education and business to learn, network and develop.

Financial Review

NSN generated a very small net reduction in funds of £9,176 over the year 2020-21 (2019-20 reduction in funds of £229,284) and closed the year with net assets of £952,685 (2020 £961,861). Cash balances at year end were £503,227 (31 March 2020 £895,654). Cash balances reduced over the year mainly due to the build-up of accrued income where services had been delivered during the year, but where funds had not been received by NSN pre year end. These amounts have been received post year end and so the post year end cash position has improved.

Due to the impact of the pandemic in reducing activity levels our principal funding streams from the Department for Education have been significantly reduced for 2021-22. The management team have acted swiftly to reduce internal and third party costs to reflect current and planned activity levels. The latest updated budget reviewed by the board indicates a small surplus for the current year 2021-22 and this view is supported by the actual results for the first quarter of 2021-22.

The charity is grateful for the support of our other donors this year.

Financial and Risk Management

Objectives and Policies

The Trustees consider risk during their regular meetings and regularly conduct reviews to ensure that robust systems are in place to assess and mitigate key risks – for example, the pandemic, changes in government policy and the pressure on donors’ charitable giving in the current economic climate.

Page 6

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy

At the end of the reporting year, free reserves (i.e. excluding the value of fixed assets and restricted funds) were sufficient to cover over six months running costs, which is consistent with the level required to ensure continuity of services in the event of a loss or delay of funding and to maintain the ability to meet unforeseen costs. The Trustees are committed to maintaining sufficient reserves as are required and designate reserves specifically for this purpose.

Investment Policy

The charity seeks to produce the best financial return with a minimal level of risk.

Plans for the Future

Future Activity

Over the next year we will focus our resources on:

• Growing a pipeline of diverse and innovative applicant groups to open new free schools particularly targeted in left behind communities in England.

• Focus our Academy Ambassador Programme across the country to place high quality candidates on trust boards, particularly those most in need of governance and/or financial improvement.

• Support academy trusts to improve the diversity of their boards’ composition through ensuring a broad and inclusive approach to attracting and screening applicants to the programme

• Providing impactful and high quality services to free schools and academy trusts to safeguard our position as the leading provider of support for free schools, trustee recruitment, and trust development services.

• Diversifying the organisation’s income streams by developing our offer to schools and trusts, growing new services to support the sector, developing corporate partnerships and charity fundraising.

• Promoting NSN as a powerful voice in education: championing reforms to ensure that every child – no matter their background, income or geography – can access a high quality education; advocating for parental choice, breaking the barriers of disadvantage and encouraging innovation in the sector.

Going Concern

Our current funding from the Department for Education is confirmed until 31 March 2022, but the position after that date is uncertain. The Trustees expect to secure significant future funding commitments to enable NSN to continue to operate successfully after that date, and the management team are in dialog with existing funders (including the Department for Education) as well as working to diversify and grow other income streams. In the event that sufficient funding is not confirmed for 2022/23, the Trustees are comfortable that there are sufficient reserves and cash balances available to NSN in order for the charity to continue as a going concern for the foreseeable future, being at least twelve months from the approval of the financial statements.

The Trustees continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Page 7

NEW SCHOOLS NETWORK

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Provision of Information to Auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charity's auditors in connection with preparing their report and to establish that the charity's auditors are aware of that information.

In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the Board of Trustees on 21 September 2021

David Ross Chair of Trustees

Page 8

NEW SCHOOLS NETWORK

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees (who are also the directors of the charity for the purposes of company law) 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 not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) 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 to 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 time the financial position of the charity and enable them to 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.

Approved by order of the members of the board of Trustees on 21 September 2021 and signed on its behalf by:

David Ross Chair of Trustees

Page 9

NEW SCHOOLS NETWORK

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW SCHOOLS NETWORK

Opinion

We have audited the financial statements of New Schools Network (the 'charity') for the year ended 31 March 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its 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 Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 10

NEW SCHOOLS NETWORK

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW SCHOOLS NETWORK (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Trustees' report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Trustees' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.

Page 11

NEW SCHOOLS NETWORK

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW SCHOOLS NETWORK (CONTINUED)

Responsibilities of trustees

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

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the charity through discussions with the Trustees and other management and from our commercial knowledge and experience of the charity and sector in which it operates;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity including the Companies Act 2006, taxation legislation, data protection, anti-bribery and employment legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 12

NEW SCHOOLS NETWORK

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW SCHOOLS NETWORK (CONTINUED)

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

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• reviewed the eligibility to and claim of funding;

• agreed a sample of employees on the charity payroll to existence and agreed the accuracy of their pay;

• assessed and reviewed the appropriateness and effectiveness of the key systems and controls; and

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing any correspondence with HMRC, relevant regulators and the charity’s legal advisors.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 13

NEW SCHOOLS NETWORK

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEW SCHOOLS NETWORK (CONTINUED)

Use of our report

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

Robert Anderson (Senior statutory auditor)

for and on behalf of

Streets Audit LLP

Chartered Accountants & Statutory Auditor

Beaumont Business Centre 6 Snow Hill London EC1A 2AY

24 September 2021

Page 14

NEW SCHOOLS NETWORK

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note Income from: Donations and legacies 3 Charitable activities 4 Investments 5 Income from other activities 6 Total income Expenditure on: Raising funds 7 Charitable activities 8 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2021 £ 5,000 - 2,823 62,010 69,833 - (840) (840) 70,673 863,677 70,673 934,350	Restricted funds 2021 £ 2,680 2,020,998 - - 2,023,678 - 2,103,527 2,103,527 (79,849) 98,184 (79,849) 18,335	Total funds 2021 £ 7,680 2,020,998 2,823 62,010 2,093,511 - 2,102,687 2,102,687 (9,176) 961,861 (9,176) 952,685	Total funds 2020 £ 52,440 2,240,343 4,454 13,537 2,310,774 77,315 2,462,743 2,540,058 (229,284) 1,191,145 (229,284) 961,861

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

The notes on pages 19 to 34 form part of these financial statements.

Page 15

NEW SCHOOLS NETWORK (A company limited by guarantee) REGISTERED NUMBER: 06953650

BALANCE SHEET AS AT 31 MARCH 2021

Note Fixed assets Tangible assets 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Net assets excluding pension asset Total net assets	759,665 503,227 1,262,892 (316,685)	2021 £ 6,478 6,478 946,207 952,685 952,685 952,685	400,046 895,654 1,295,700 (344,374)	2020 £ 10,535
				10,535 951,326
				961,861
				961,861
				961,861

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NEW SCHOOLS NETWORK (A company limited by guarantee) REGISTERED NUMBER: 06953650

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

Note Charity funds Restricted funds 16 Unrestricted funds 16 Total funds	2021 £ 18,335 934,350 952,685	2020 £ 98,184 863,677
		961,861

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 to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees on 21 September 2021 and signed on their behalf by:

David Ross Chair of Trustees

The notes on pages 19 to 34 form part of these financial statements.

Page 17

NEW SCHOOLS NETWORK

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note Cash flows from operating activities Net cash used in operating activities 20 Cash flows from investing activities Purchase of tangible assets Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 21 The notes on pages 19 to 34 form part of these financial statements	2021 £ (388,787) (3,640) (3,640) (392,427) 895,654 503,227	2020 £ (181,181) (5,036) (5,036) (186,217) 1,081,871 895,654

Page 18

NEW SCHOOLS NETWORK (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

New Schools Network (the charity) is a limited company by guarantee incorporate in England and Wales and a registered charity. The charity's registered office is at 8th Floor, Westminster Tower, 3 Albert Embankment, London, SE1 7SL. The charity's principal activity is improve the quality of education, particularly for the most deprived, by increasing the number of independent, innovate schools within the state sector.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

New Schools Network meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going conern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future, for the reasons set out in the Trustees' Report, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Income

All income is recognised once the charity has entitlement to the income, it 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, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of direct costs. Direct costs attributable to a single activity are allocated directly to that activity.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

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 recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its 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 estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

• Furniture and equipment 25% Straight Line

2.7 Debtors

Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Liabilities

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.10 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.11 Pensions

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

2.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions 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 statements.

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from donations and legacies

Donations Total 2020	Unrestricted funds 2021 £ 5,000 25,500	Restricted funds 2021 £ 2,680 26,940	Total funds 2021 £ 7,680 52,440	Total funds 2020 £ 52,440

4. Income from charitable activities

Government grants Total 2020	Restricted funds 2021 £ 2,020,998 2,240,343	Total funds 2021 £ 2,020,998 2,240,343	Total funds 2020 £ 2,240,343

Grant income relates to funding received from the Department for Education.

5. Investment income

Unrestricted funds 2021 £ Bank interest 2,823 Total 2020 4,454	Total funds 2021 £ 2,823 4,454	Total funds 2020 £ 4,454

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Income from other activities

Delivery of services Hire of facilities Total 2020 7. Expenditure on raising funds Costs of raising voluntary income Fundraising expenses Total 2020	Unrestricted funds 2021 £ 62,010 - 62,010 13,537 Unrestricted funds 2021 £ - 77,315	Total funds 2021 £ 62,010 - 62,010 13,537 Total funds 2021 £ - 77,315	Total funds 2020 £ 12,783 754 13,537 Total funds 2020 £ 77,315

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure on charitable activities

Summary by fund type

Charitable activities Total 2020	Unrestricted funds 2021 £ (840) 214,591	Restricted funds 2021 £ 2,103,527 2,248,152	Total funds 2021 £ 2,102,687 2,462,743	Total funds 2020 £ 2,462,743

Unrestricted costs show an overall net income due to the release of specific accruals and the refund of prior year costs.

9. Analysis of expenditure by activities

Support to "Free School" proposers Total 2020	Activities undertaken directly 2021 £ 2,102,687 2,462,743	Total funds 2021 £ 2,102,687 2,462,743	Total funds 2020 £ 2,462,743

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs Depreciation Office costs Other direct costs Governance costs	Total funds 2021 £ 1,185,645 7,697 204,819 697,026 7,500 2,102,687	Total funds 2020 £ 1,293,855 8,328 225,982 923,471 11,107 2,462,743

10. Auditor's remuneration

Fees payable to the charity's auditor for the audit of the charity's annual accounts Fees payable to the charity's auditor in respect of: All non-audit services not included above Staff costs Wages and salaries Social security costs Contribution to defined contribution pension schemes	2021 £ 5,000 13,872 2021 £ 982,826 99,097 103,722 1,185,645	2020 £ 5,000 5,050
		2020 £ 1,084,732 101,578 107,545
		1,293,855

11. Staff costs

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11. Staff costs (continued)

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

Management and Advisory Administration	2021 No. 28 3 31	2020 No. 31 3
		34

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

		2021	2020
		No.	No.
In the band £60,001	- £70,000	1	-
In the band £70,001	- £80,000	-	2
In the band £80,001	- £90,000	1	-

Key Management Personnel, being the Senior Management Team listed on page 1, received aggregate remuneration of £472,203 (2020 - £364,195). There were a number of appointments to and resignations from the Senior Management Team during the year.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, no Trustee expenses have been incurred (2020 - £NIL) .

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NEW SCHOOLS NETWORK (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Tangible fixed assets Cost or valuation At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year On disposals At 31 March 2021 Net book value At 31 March 2021 At 31 March 2020 14. Debtors Due within one year Accrued income Prepayments	2021 £ 758,646 1,019		Office equipment £ 42,853 3,640 (35,522) 10,971 32,318 7,697 (35,522) 4,493 6,478 10,535 2020 £ 325,405 74,641
	759,665		400,046

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Creditors: Amounts falling due within one year

Other taxation and social security Other creditors Accruals and deferred income Deferred income Deferred income at 1 April Amounts released from previous periods Deferred income at 31 March	2021 £ 54,493 16,708 245,484 316,685 2021 £ 235,073 (2,680) 232,393	2020 £ 53,971 9,495 280,908 344,374 2020 £ 252,029 (16,956) 235,073

Income deferred at the year end relates to the Barclays Development Programme where funding is to be applied in future periods when appropriate groups are identified.

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds

Statement of funds - current year

Unrestricted funds Designated funds Contingency Fund General funds General Funds Total Unrestricted funds Restricted funds Government Grants Barclays Development Programme Grant Other Restricted Donations Total of funds	Balance at 1 April 2020 £ 863,677 - 863,677 81,914 - 16,270 98,184 961,861	Income £ - 69,833 69,833 2,020,998 2,680 - 2,023,678 2,093,511	Expenditure £ - 840 840 (2,096,702) (2,680) (4,145) (2,103,527) (2,102,687)	Balance at 31 March 2021 £ 863,677
				70,673
				934,350
				6,210 - 12,125 18,335
				952,685

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds Designated funds Contingency Fund General funds General Funds Total Unrestricted funds Restricted funds Government Grants Other Restricted Donations Barclays Development Programme Grant Total of funds	Balance at 1 April 2019 £ 950,000 162,092 1,112,092 54,528 24,525 - 79,053 1,191,145	Income £ - 43,491 43,491 2,240,343 9,984 16,956 2,267,283 2,310,774	Expenditure £ - (291,906) (291,906) (2,212,957) (18,239) (16,956) (2,248,152) (2,540,058)	Transfers in/out £ (86,323) 86,323 - - - - - -	Balance at 31 March 2020 £ 863,677
					-
					863,677
					81,914 16,270 - 98,184
					961,861

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Funds detail

Unrestricted Funds

As levels of donations may be variable and there is no commitment to ongoing donations, the Trustees have established a Contingency Fund so as to ensure continuity of the charity's charitable activities. Included within the Contingency Fund are some unspent funds relating to resources received from donors. Some of the Contingency Fund was released in the prior year to cover the in year deficit in General Funds.

General Funds are resources available for use towards the fulfillment of any of the charity's charitable objectives at the discretion of the Trustees.

Restricted Funds

Government Grants represents funds received from the DfE to support free school proposers and the Academy Ambassadors programme. The balance sheet carry forward represents the net book value of fixed assets acquired from the funds and other prepaid expenses.

Other Restricted Donations include donations received where the donor has specified which part of the charity's activities are to benefit, or where funds have been raised as part of a specific fundraising campaign aimed at a specific part of the charity's activities.

Barclays Development Programme Grant represents funds donated by Barclays Bank plc to be used towards the "Development Programme".

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Summary of funds

Summary of funds - current year

Designated funds General funds Restricted funds Summary of funds - prior year Balance at 1 April 2019 £ Designated funds 950,000 General funds 162,092 Restricted funds 79,053 1,191,145	Balance at 1 April 2020 £ 863,677 - 98,184 961,861 Income £ - 43,491 2,267,283 2,310,774	Income £ - 69,833 2,023,678 2,093,511 Expenditure £ - (291,906) (2,248,152) (2,540,058)	Expenditure £ - 840 (2,103,527) (2,102,687) Transfers in/out £ (86,323) 86,323 - -	Balance at 31 March 2021 £ 863,677 70,673 18,335 952,685
				Balance at 31 March 2020 £ 863,677 - 98,184 961,861
Designated funds General funds Restricted funds

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted funds 2021 £ Tangible fixed assets 268 Current assets 1,250,767 Creditors due within one year (316,685) Total 934,350	Restricted funds 2021 £ 6,210 12,125 - 18,335	Total funds 2021 £ 6,478 1,262,892 (316,685) 952,685

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets Current assets Creditors due within one year Total	Unrestricted funds 2020 £ 3,262 969,716 (109,301) 863,677	Restricted funds 2020 £ 7,273 325,984 (235,073) 98,184	Total funds 2020 £ 10,535 1,295,700 (344,374) 961,861

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

21.

Net expenditure for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Increase in debtors Increase/(decrease) in creditors Net cash used in operating activities Analysis of cash and cash equivalents Cash at bank Total cash and cash equivalents	2021 £ (9,176) 7,697 (359,619) (27,689) (388,787) 2021 £ 503,227 503,227	2020 £ (229,284) 8,328 (2,717) 42,492 (181,181) 2020 £ 895,654 895,654

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NEW SCHOOLS NETWORK

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Analysis of changes in net debt

Cash at bank and in hand	At 1 April 2020 £ 895,654 895,654	Cash flows £ (392,427) (392,427)	At 31 March 2021 £ 503,227 503,227

23. Pension commitments

During the year employer pension contributions paid into a defined contribution scheme amounted to £103,722 (2020 - £107,545). Of this amount, £16,708 (2020 - £9,495) remained due at the year end.

24. Operating lease commitments

At 31 March 2021 the charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

	2021	2020
	£	£
Amounts payable:
Not later than 1 year	-	66,960

25. Related party transactions

During the year £5,000 (2020 - £1,754) was donated by the Trustees or related entities upon which no conditions were attached.

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