Ark UK Programmes Annual Report and Finaneial Statements 31 August 2023 Q>mpany limited by guarantee registration number 05932797 (Ensland and Wales) Charity registration number 1137932 '766" 2310512024 CCthIPANIES HOUSE A12 4129
Ark UK Programmes Contents Reports Reference and administrative detai]s i Tntees. report Independent auditor's report 12 Financial Statements Statement of financial activities J7 Balance sheet Statement of cash flows 20 Notes to the financial statements 22
Reference and administrative d¢taiLs Truste&s LL)rd Fink Lucy Heller Katie Oliver Company Secretary Eli7abeth Dawson Chief Executive Lucy Heller Rewtered Office The Yellow Building I, Nicholas Road LJ)ndon Wii 4AN Company registration number 05932797 Charity registration number 1137932 Auditor BuzT2cott LLP 130 Wood Street IA)ndon EC2V 6DL Bankers Uoyds Bank plc 95 George Street Croydon CR9 2NS Solicitor Stone King LLP Boundary House 91 Charterhouse Street iL)ndon ECIM 6HR Investm¢nt manager JP Morgan International Bank 25 Bank Street Canary Wharf IA>Ddon Ei4 P
Trustees. report including Strategic Report Yearended 31 August 2023 The trustees. who are also directors of Ark UK Progrdmmes for the purposes of the Companies Act. are pleased to present their report together vrith the audited financial staternents for the year ended 31 August 2023. The financial statements bave been prepared in aecordanee with the aeeounting policies set out on pages 22 to 26 of the attached financial statevnents and cotnply with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reportins Standard applicableto the unit Kingdom and Republic of Ireland (FRS 102). Objectives and principal aCtItieS Ark UK Progrnmmes has the principal objective of advancing the education of the public. It provides a home to mission-aligned organisations. helping them to grow into sustainable entities. often resulting in them becoming independent organisations. In 2022123, the eharity continued to incubate four Ark ventures: Ark Curriculum Pl (AC+). Ark Start, Martingale Postgraduate Foundation and a STEM Excellence Portfolio. The contribution made by tbese ventures to achieve the obitiveS of Ark UK Programmes is dribed frotn page 4. Organisation Ark UK Prograrnmes is a cotnpany limited by guarantee (Company No. 05932797) and a registered charity in England and Wales (Charity No. 1137932). The charity is governed by its MemordnduTn and Articles of Association. It is a fully owned subsidiary of Absolute Return for Kids (ARK) (referred to throughout as 'Ark', charity registration number 1095322, company registration nuTnber 04589451). a cbarity established to improve the life chances of children. One of the directOTS of Ark UK Programmes is also a director ofArk. The Chief Executive and Deputy Chief Executive of Ark UK Programmes were a]so the Chief Executive and Deputy Chief Executive of Ark during the year. In furtheranee of its objects. Ark UK Programrnes works closely with Ark Scbools, a network of 39 schools. Lord Fink and Lucy Heller are also directors of Ark Sehools. The board of trustees. which can have upto ten memltrs, administers the company. The activities of the charity. as determined by the board of trustees. are carried out under the direction of the Chief Executive. Trustees The trustees are also directors of Ark UK Programmes for the purposes of company law. The followingindividuals served as directorsduringthe financial year and up to the date these financial statements were approved: Michael Clark IA)Td Fink Lucy Heller Katie Oliver Resigned i November 2023 Appointed 12 October 2023 All directors served for the full year, except where indicated above.
Trustees. report including Strategic Report Year ended 31 August 2023 Trustees (continued) Lord Fink did not have any beneficial interest in the organisation. nor did he receive any remuneration during the period. Lucy Heller. Michael Clark and Katie Oliver received remuneTation from Ark for their respective roles as Chief Executive. Deputy Chief Executive and Director (Ark Start) (see note 8). New ttee$ may be appointed either by the board or by means of an ordinary resolution of the charity. On agreeing to beeorne a trustee of the charitable company. the trustees are briefed by their eo4irettors on the history of the charitable company. day-to-day management. the restK>nsibilities of trustees. current objectives, and fiiture plans. The trustees are also eneouraged to attend any courses relevant to their role, and to keep up to date with changes in legislation. Key management personnel The trustees consider the board of truste&%, and the senTOT rnanagement team to comprise the key management personnel of the charity ill charge of directins and controlling. running, and operating the charity on a day-to-day basis. The Chief Executive and Deputy Chief Executive make up the senior management team and are remunerated by Ark. Ark UK Programmes, keymanagement salari&s are seton apFK)intrnent and reeWed annually in accordance with the pay review procedures operated by the parent organisation, Ark. The Deputy Chief Executive of Ark approv&s all salaries on appointment and any base salary in excess of £75.000 per annum is also approved by the Chief Executive of Ark. Annual reviews are subject to the same approval. Risk management Ark UK Programmes. management and trStee8 have reviewed and assessed the major risks to which the charity is exposed. and systems have been established to identify and manage those risks. Bsin plans for new ventures address the risks and mitigations and steering groups or shadow boards have been set up for the individual ventures. In addition. the Ark Finance and Risk Comniittee (FRC) formally reviews the Risk Register. The key risks identified to date and mitigations are as follows: Additional competitivepressures, particularlyfor AC+, ineludingthe conversion of Oak National Academy into a new national eurriculum body. To mitigate the risk of this. a full stratesy Teview is underway including a review of PTOST8mme design. Over-relianee on individual funders. To rnitisate this risL programme commitments are limlted to available funds and pledges. The pipeline of potential nderS is in continuous development. Ark Start fails to deliver impact within existing finances due to delayed start up and lack of political focus. To mitigate this risk, Communication with nderS and stakeholders is continuing. This is eombined with an increased focus on impact measurernent and evaluation.
Trusttts. report indudlng Strategic Report Yearended 31 August 2023 Risk management (continued) The effeet of increasing costs, as a result of infiation. especially in staffing. Salary budgets are reviewed and controlled as part of the annual budget setting process. Any in year increases in salaries or new positions are subject to strict review and approval processes. IA)ss of key staff. Teams have been strengthened through the development of recruitment and retention strategies, including succession plans. Safesuardins incident involvingArkStart. Safeguarding policies and procedures are in place, iDcludins a full programrne of training for nursery staff. Achievements* perfornianee. and future plans This year ha5 seen sorne substantial ebanges and developments in the scope of ventures activity. As Ark has grown. many ventleS and initiatives have been tightly associated with schools. They either share lesson5 that are learned from that frontline experience and expertise - as in the case of Ark Cwriculum Plus - or fill identified gaps itt the way that the need for early years support focused on education led to the creation of Ark StarL However, schools are onty part of the story. Over the years, ventures have ranged far over the educational landscape - from extra-curricular support and STEM-focused campaigns to approaches that explore solutions Iwond schools OT address challenges in otber sertors like health and social care. Both school-inspired ventures and these more wide-rangins projects are critical to achieving Arvs mi&8ion. As Ark Lx)ntinues to grow. it is paramount that the eharity does not lose focus by takins on too many projects. Ark's approach has always been to incubate great ideas but then allow individual organisations to flourish independently. In 2023. it was decided that Ark's ineubation activity had reached a point where it had sufficient scale and demand to support the current ventures team to thrive as an independent charity. This Deworganisation- Purposefillventures-was set-up as an independent charity in November 2023, after the year end, and will work to solve intractable challenges in education and society. L£d by Michael Clark, the long-standing Deputy CEO of Ark. it will focus on creating a fairer wiety, where all youns people thrive. The new organisatioll will work d05ely with Ark and other partners to belp tackle a wider range of challenges facing families. children and young people - from incubating a national network of baby banks to supwjrting postgraduate careers in STEM. Lucy Heller. Ark's CEO is a Trustee of PUrsell Venturo%. Ark will continue to create new initiatives that innovate and learn lessons from our schools to addre&s the challenges we learn frotn the frontline. Most immediately this will be with the developTnent of Ark Curriculum Plu5 and Ark Start as well as the excitins completion of Edcity. Further information on these plans is set out below. Alongside the substantial work to shape the new strategy and support the spin-out of Purposeful Ventures. it was a b$Y year for our ventures. Below is a summary of activity for all the ventures supported by Ark UK Programmes tbrough the year.
Trustees. report induding Strategic Report Year ended 31 August 2023 Achievementsi perforniance. and future plans (continued) Ark Stort Ark Start was founded to transfonn early education for disadvantaged children. It provides highuaLlty. teacher-led early education with a foeus on workins with parents to improve the home learning environrnent for pre-school children. Ark Start is creating a new model of flexible. affordable nursery education and aims to create an exemplar group of nurseries that will accelerate outcomes for the most disadvantaged children and trdnsforni the funding of early years so that the pupils wbo need tbe most support attract the most funding. Achievements andperforniance." Ark Start's two open Durseries are now fully established and at full capacity (Ark Start John Archer in Clapham JuDCtion and Ark Start Oval in Fast Croydon). Ark Start developed a srowins coalition of partners advocating for increased funding in disadvantaged areas. Given the early SUCC and the need to maximise impact on policy makers, Ark Start is pursuing plans to expand to eight nurseries to strengthen its proof of Collpt, with secure plans in place to open at least two additional nurseries this year. Futureplans In 2023124, Ark Start plans to: Launeh the evaluation of Ark Start in partnership with our evaluation partner, sow. Open at least two new nurseries. Build strategic partnerships to support the longer terni expansion of ATk Start. Work with a coalition of partners to continue to influence early years policy within the DfE and aeross the key political parties. Embed the Ark Start offer for UDder-twos in advance of expanding to children aged nine months and upwards. Ark crriCUluM Plus Arkcurriculum Plus (AC+) was forn)edin 2019 following the mergerof Mathemati&s Mastery, a venture sinee 2012, and Englisb Mastery> a venture since 2017. and has since launched new programmes in Science, History, and Geography. AC+ partners with schools to achieve subject excellence. empowering teachers to ensure that every child has the subject knowledge to succeed. Schools follow a five- step irnprovernent process, with support from a subjeet expert at each stage. Teachers are given all the ingredients they need to ensure every Child can access an ambitious curriculum, including comprehensive r&8earch-based curriculum and assessment resources and integrated CPD. The AC+ curriculum pn)grammes are having the greatest impact in schools with a high proportion of inexperienced or non-specialist teachers. helping them reach proficiency as quickly as possible. Ark Curriculum PlS continued to srow steadily this year with over 11,000 teachers supported by our programmes.
Trustees. report including Strategic Report Year ended 31 August 2023 Achievements) perforniance. and future plans (continued) Ark Curriculum Plus (conlinued) Achieuements alperfornIance.' With increasing curriculum resources available free to the sector from the GovernmeDt-fuDded Oak National Academy and otbers, AC+ has renewed its original focus on higher intensity prograTnmes that are shown to enable more sisnificant transformation in schoo]s. Programme numbeTS are expected to grow more slowly) as AC+ seeks a greater impact for each student reached, prioritising sehools with greatest unmet need. In particular this year we: Launched a Geography KS3 programme to the wider sector for the first time. We introduced three-year CPD prograrnrnes for teachers and leaders to build subjert excellence progressively over time. We introdcued a curriculum-aligned. llY standardised assessment solution across maths, science and geography at KS3 as well as primary maths. We developed new English KS3 units to provide richer opportunities for creative N*Titing and choice of texts. Futureplons ATk Curriculum Plus's priorities for 20231¥ are: To launch tbe full 11-16 Scien offer to the wider sector. To complete the Englisb primary pilot for years 3-6. To colltinue the scale up of the maths PriTnary programme. with support from the Education Endowrnent Foundation I'EEF)-managed DfE accelerator fund. To kick off a two-year EEF evaluation of maths at KS2. To conclude a three-year EEF randomised control trial of AC+'s English KS3 programme. To Create, maintain, and deliver programm&8 that have a high impact on pupil prosress and attainment. evidencedby impact studies and data. For ali Ark Sthoo]s to benefit from all AC+ programmes, and for Ark Schools teachers and PrincipaLs to feel part of programtne developments. Martingale Postgraduate Foundation Launched in 2022. the Martinsale Foundation supports talented students facing financial barriers to pursue Masters and PhDs and excel in them. People from low socioeconomic backgrounds are fifteen times less likely to pursue a PhD compared with their privileged p&rs. With postgraduate degrees ineTeasingly associated with academic and career advancernent, tbis leavog many talented indidual5 behind. Through generous sebolarsbips and acce5S to a cotnmunity of pioneering leaders, Martingale enables people from low socioeconomie backgrounds to pursue Masters and PhDs in STEM subjects at leadins UK research institutions.
Ark UK Programmes Trustees. report including Strategic lieport Year ended 31 Au 2023 Achievements, perforniance, and future plans (continued) Martingale Postgraduate Foundation (continued) Achievements andperformance." Since its launch in 2022. Martingale welcomed the inaugural cohort of 21 Martingale Scholars onto the programtne in Septetllr 2023, Studying Mathernatical Sciences across flve founding universities.. Cambridge. Imperial. King's, Oxford and UCL Bristol, Edinburgh and Manchester joined as university partners in 2023. growng our reach out of the south*ast of England. In autumn 2023, Martingale also recruited 32 Scholars-in-principle who are now working hard on their postgraduate applications to our eight partner universities. and are due to cornmenee their Masters this September. All of the Scholars-in-principle for the 2024 hOrt are frotn horn&8 with a combined income of less than É4ok, th 44 percent Coming from homes th a combined income of le&s than £2sk Futhreplans Martingale Foundation is now looking to expand beyond Mathematical Sciences. with ambitions to provide funding for postgraduates from low socioeconomie backgrounds across STEM. The team are also Teviewing the wider role Martingale can playwithin policy and research culture for systemic change within postgraduate higher education. From October 2023. Martingale joined the new spin-out Purpose1 Ventures and will continued to be inclubated by them. Science Technology Engineering and Mrtths (STEM) Exeellence Portfolio This was a priority area identified by the Ark Ventures team and is being carried forward and expanded by the new Purposeful Ventures organisation. The aim of the portfolio is to support projects that help to uncover hidden talents and passions. remove barriers to progression. and support all young people to recognise the potential of STEM-related careers. Too few youns people from under-privileged or under-represented backgrounds excel in Science. Technology. Engineerillg and Maths (STEM). meaning they miss out on this powerful driver of social mobility. The sfEM Lxcellenee portfolio has a focus orA maths as a foundational subject for success in broader sfEM studies. The team is providing ongoing financial and strategic support to charities sueh as Dr Frost IArning, MLSME and Get Further. In June 2023, Ark Ventures launehed the Maths Exeellence Fund and in December 2023 the Fund announced its first grants of £7.om to support four partners to trial and evaluate pry>grdmmes to improve the maths attainment and progression of high- potential students from disadvantaged backgrounds. The STEM Excellence Portfolio is also supporting initiatives focused on some of the most talented young people through a E Talent Fund and by organising the 65th International Mathematics Oljinpiad in July 2024 in Bath, U
Trustees. report induding Strategic Report Year eDded 31 August 2023 Achievements, perfonnance. and tUre plans (continued) MFSME The year started witb Mathematics FAlucation for Social Mobility & Excellen (MESME) becoming an independent charity on i September 2022 (Charity No. 1199281) with the charitable objectives to grow the impact of Maths Circles and similar programm&%. noted above, they o)ntinue to stay closely eonnected to Ark through partnership with the new PuTposefid VeDture3 charity. As of January 2024, it rebranded to Axiom Maths. Financial review Total Ark UK Progrdmmes income during the year was £18.4m (2021122 £5.7m). which is made up of programme income Qrants and donations. programrne fees. and other income from activities le&8 endowment ineome). The split of prograrnme income between the ventures was as follows: 36% (2021122- Nil) to Martillgale Foundation 32%12021122- Nil) to Em Excellence Portfolio 19%12021/22- 69%) toAC+ 13% (2021122 - %) to Ark Start Nil (2021122- 16%) to MESME The principal funding sources for the year have been grants to ventures and schiK)I paytnents to AC+. A]1 expenditure has supported the eharitys key objectives. as described in the review of perfonnance above. The net movement in funds fortheyearwas a surplus of £10.6m [2021122- £0.3m). This included a sain of £o.Im (2021122- loss of £0.2m) on the endowments held as investments for the schools. The eharity had net a&sets at 31 AUgt 2023 of £20.4rn (2021122 É9.8m), comprising £5.Im (2021122 £6.ITll) of endowrnent funds. £15.2m (2021122 £3.7m) of r&8tricted fun<Ls. and £45k (2021122 - £38k) of unr&stricted funds (the free reserves of the Charity). Given the programme-related nature of the chariws activities, which are mainly funded via restricted funds. the trustees consider the level of free reserves to be satisfactory. The significant uplift in levels of funding is primarily driven by securing fonward funding on behalf of the STEM Fcellence Portfolio and Martingale prioT to their spin-off. Reserves Policy New Ark ventures are incubated only when external fimding has been secured or a funding commitment has been made by Ark. For this reason, the eharity's unrestricted reserve leveLs are expected to remain below £iook, with tbe majority of bjnds beins restricted to the iudiNidual venturas. The unTestrieted funds balance at 31 August 2023 was £45k. sufficient to fund more than 12-months' unrestricted expenditure. Within each of the restricted fid balances, the charity will aim to hold sufficient fidS to cover 3-6 months of Core prograrnme operating Costs. Ark UK Programme5 has taken all necessary steps to reduce both the operational and financial impact of the FK)St pandemic environment and other cost pressure5 due to the wider economic eballeng£%.
Ark UK Programmes Trustees. report induding Strategic Report Year ended 31 August 2023 Reserves Poliey (continued) Costs have been closely monitored to ensure that unrestricted reserves remain sufficient to meet financial commitments and oblisations. Investment Policy s at 31 August 2023, Ark UK Programmes had a portfolio of investments witb a market value of £5.2m (2021122- £6.om). There are no restrictions on the charitrfs power to invest. The iiivestment strategy is set by the trLtstees and Considers ineome requirernents, the risk profile. and the investment mana8er'sviewof the Tnarket prospects in the medium terni. The overall investment policy is to maximise total return throush a diversified portfolio. aiming to provide the level of income advised by the trustees and, at the same time, with a view to ensuins that capital appreciation of the fund exceeds inflation over any five-year peri(xl. Financial derivative products are Sed to ameliorate the risk a&8ociated with holding investments in foreign currencies. A trustee and manasement meet with the investment managers at least annuallyto review the performanceof theportfolio and the investment strategy. The tnLStees are satisfied that their investment policy is being achieved. Public Benefit Ark UK Prograrnmes exists to advance the education of the public. The trustees have paid due regard to the Charity Commi&%ion's publie benefit guidance and are satisfied that the charity complies with Section 4 of the Charities Act 2011. The sections at the beginning of this tnLStees' report dealing with objectives and achievements explain in detail the aCtItieS of tbe charity and how the public. specifically children, benefit from its work. Approach to fundraising Ark fundraises from a defined list of individuab. companies. and charitable trusts and foundations. This list is carefully eonsidered, and approaches are only tnade to those we already have a connection to, or where we think there would be an interest in Ark's work Ark's network of schools conducts their own fidraISing and may use fundraising platfornls to projnote specific school campaigns. including Just Giving. Ark's fundraising is led by a small team of professional ndraIserS and 8UPPOrt staff employed by Ark- we do not out-source fundraising actiNities. Our activity is based on individual relationships with donors. Donor data is handled with care - all information is held on a secure database and filos managed by Ark Ark is a paid member of the Fundraising Regulator. and we comply with the adirice and guidance set by the body. We have not received any ndraiSing complaints.
Ark UK Programmes Trustees, report includtng Strategic Report Year ended 31 August 2023 Statement of trustees, responsibilities The trustees (who are also directOTS of Ark UK Programmes for the pwposes of company law) are responsible for preparing the trLL8tees' report and financial statements in aceordantr with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Companylaw requires thetrustees to prepare financial statements for each financial year which sive a true and fair view of the state of affairs of the charitable cornpany and of the ineome and expenditure of the charitable eompany for that period. In prepariThs these financial statements. the trustees are required to: select suitable accounting policies aDd then apply them consistently. observe the metho(Ls and prineiples in Aecounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS I02). make judgements and estimates that are reasonable and prudent. state whether applicable United Kingdom Accounting Standards bave been followed. subject to any material departures disclosed and explained in the financia] statements. and prepare the financial statements on the going eoneern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible forkeeping proper accounting records that disclose with reasonable accuracy at anytime the financial position of the charitable eompany and enable them to erLsure that the financial statements cornply with the Companie5 Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the trusteos confirnis that: so far as tbe trustee is aware, there is no relevant audit information ofwhieh the charitable company's auditor is unaware" and the trStee has taken all tbe steps that tbey ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the compan5 auditor is awaTe ofthat inforniation. This confinnation is given and should be intereted in accordance with the provisioDS of s418 of the Companies Act 2006. The trustees are responsible for the maintenance and integrity of the company and financial infonnation included on the coMpanS website. i*gislatioD in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by the trustees and signed on their behalf by: io
Trustees, report including Strategic Report Year ended 31 August 2023 Lucy Heller TTUStee Date: 1810312024 li
Independentauditorfs reportto the member of Ark UK Programmes Yearended 31 August 2023 Opinion We have audited the finaneial statements of Ark UK Programmes (the 'charitable company,) for the year ended 31 August 2023 which comprise the statement of financial activities. the balance sbeet, and statemeTht of cash flows, the principal accounting policies. and the notes to the financial statements. The financial reporting frarneworkthat has been applied in their preparation is applicable law and United Kingdom Aecounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom GenerallyAccepted 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 August 2023 and of its income and expenditure for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Aecounting 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 Standar(Ls on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are fijrther 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 requiretnents that are relevant to our audit of the financial statements in the UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit ewdence 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 ttees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfornied. we have not identified any material uncertainties relatins to events or conditions that. individually or collectively, may east significant doubt on the Charitable company's ability to continue as a going concern for a period of at least twelve months from wben the fiuancial statements are authorised for issue. Our resrK)nsibilities and the responsibilities of the tnlstees with respect to going concern are described in the relevant sections of this report. 12
Ark UK Programmes Independentauditorfs report to the member of Ark UK Programmes Year ended 31 Aust 2023 Other inforniation The other information comprises the information included in the annual report and financial statements. other than the financial staternents and our auditor's report thereon. The trustees are responsible for the otljer information contained hqthin the annual rew)rt and financial statements. Our opinion on the financial statements does not cover the other inforniation and, exeept to the extent otherwise explicitly stated in our report. we do not expre any forni of asran conclusion thereon. Our r£spoD5ibility isto readthe other information and. in doing so, consider whether the other inforniation is rnaterially ineonsisient with the financial statetnents, or our knowledge obtained in the course of the audit or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies OT apparent material misstatetnents, we are required to deterrnine whether this sives rise to a material mi&statement in the financial statements themselves. If. based on the work we have performed. we conclude that there is a material misstatement of this otber information, we are required to report that facL We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Aet 2006 In our opinion. based on the work undertaken in the eourse of the audit.. • the inforniation given in tbe trusteos, report, which is also the directors, report for the purwses of company law for the financial year for which the financial statements are prepared is consistent with the financial statements. and the trste&S. report, which is also the dirertors, report for the purposes of company law. has been prepared in aeeordance with applicable legal requirements. Matters on whith we are reqwred to report by exception In the light of the 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 trsteeS. report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion= • adequate aeeounting recorits have not been kept. or returns adequate for our audit have not been received from branches not visited by 8. or • the financial statemetlts are not in agreetnent with the accounting records and returns. or • certain disclosures of trLLStees' remuneration specified by law are not made" or • we have not received all the inforniation 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 tske advantage of the small companies, exernptions in preparing tbe trustees, report and from the requirement to prepare a stTategic report.
Ark UK Programmes Independentauditorfs report to the member ofArkUK Programme$ Year ended 31 August 2023 Responsibilities of trustees As explained more fully in the trytees. rdsponsibilities statement, the tee$ (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 forbeing satisfied that they give a true and fair view. and for sucb internal control as the trustees deterniine is necessary to enable the preparation of financial statemelltsthat are free from material misstatement. whether due to fraud or error. In preparing the finaneial statements. the truste are reSpo$1ble for assessing the charitable company's abilityto continue as a goingconcern, disclosing. as applicable, matters related to going concern and usins the going concern basis of accounting unless the trustees either intend to liquidate the charitable eompany or to cease operations. or have no realistTrc alternative but to do so. Auditor's responsibiliti&s for the audit of the finaneial statements Our objectives are to obtain reasonable assurance about whether the financial statements &5 a whole are free from material rnisstatement. whether due to fraud or error, aDd to issue an auditor's report that includes our opinion. Reasonable assuranee 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, indiNidually or in aggregate. they could reasonably be expected to influence the economic deeisions of users taken on the b&sis 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 restrt of irregularities. including fraud. The extent to which our procedures are e2pable of detecting irregularities. including fraud is detailed below: Our approach to identifying and a&se&%illg the risks of material misstatement in respect of irregularities. induding fraud and non-compliance Nith laws and regulations, was as follows: • the engagement partner ensured that the engagement tearn collectively had the appropriate cornpeten. capabilities. and skills to identify or recognise non- compliance with applicable laws and regulations. • we identified the laws and regulations applicable to the charitable company through discussions with trteeS and other snanagernent, and from our knowledge and experience of the sector: + we focused on specific laws and relati0Th$ which we considered nY have a direct Tnaterial effect on the financial statements or the operations of the eharitable company. including the Charities Act 2011, Companies Act 2006, data protection legislation. anti-bribery* employment. and health and safety legislation- • we assessed the extent of complianee with the laws and regulations identified above through making enquiries of management and inspecting legal Correspondence: and 14
Independent auditorfs reporttothe member ofArk iIK Programmes Year ended 31 August 2023 Auditorfs responsibilities for the audit of the financial statements (Continued) • 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 suscepttl)ility of tbe Charitable company's financial statements to material misstatement, ineludiDg obtaining an Undending of how fraud might occur. by: • making enquiries of management as to where they Considered there was susceptibility to fraud. their knowledge of actual, SUspted, and alleged fraud; and • considering the internal controls in place to rnitigate risks of fraud and non- compliance with laws and regulations. To address the risk of fraud througb management bias and override of controls. we". • performed analytical procedures to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions. • assessed whether judgements and assumptions made in determining the accounting estiTnates were indicative of potential bias: and used data analytics to investisate the rationale behind any 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. • reviewing the minutes of meetings of those charged with sovernance. • enquiring of management as to actual and potential litigation and c]aims" and • reviewing any available correspondenee with the eharitable eornpany's lega] advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from finalleial transaetions, the1&8s likely it is that we would become aware of non-eomplianee. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other Malgement and the inspection of regulatory and legal eorrespondence. if any. Material tni&5tatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Ark UK Programmes Independent auditoV$ report tothe menther of Ark UK PrOgranes Yearended 31 Aiigiist 2023 Auditorfs responsibilities for the audit of the financial statements (continued) A rther description of our responsibilities is available on the Firwicial Reporting Couneil's website at www.frc.otg.uklauditorsresponsibilities. This deseription fornis part of our auditor's Tep)rt. Use of our report This report is made solely to the charitable companrfs member. as a Ethy, in accordanee with Chapter 3 of Part 16 of tbe Companies Aet 2006. Our audit work has been undertaken so that we might state to the charitable company's member those matters we are required to state to them in an auditor's report and for no other purpose. To the filllest exteut permitted by law. we do not accept or assume rnsIbIlity to anyone other than the charitable company and the charitable COTnpany's member as a body. for our audit work, for this report. or for the opinions we have fomed. Katharine Patel. Senior Statutory Auditor For and on behalf of Buzzacott LLP. StatutoryAuditor 130 Wood Street IA)ndon EC2V 6DL 21 May 2024
Ark UK Programmes Statement of financial activitie5- Year ended 31 August 2023 Year ended 31 August 2023 Total £'ooo Year ended 31 August 2022 Total £'ooo ttstrided Restrirtgj Endowments £'ooo E'ooo £'ooo Notes Income from: Donafions and lega Grants and donations Charitabk 2Cti*ities Prngramjne fees Other Inrne Investments C£sntinuin8operations Dlscotttifte4 operations Total income J84 15,384 2,205 2b 2b 2,365 120 A27 99 18.387 18J80 4.829 905 5.734 21 18J80 x8y387 Expenditure on: Raising funds Investment Tnanagement 56 56 61 Interest on finance lease Charitableactlties SllptM)rt to progratnmes Gtants from endowments Trdnsfers to M&SME Continuingoperations Discontinued 0ratiOnS Totsl Lrypenditure 6J 6.326 950 496 4.207 950 21 496 6,822 1.007 4269 922 5,191 6,822 1,007 7.829 Net ]nLme (eKpeThditute) before gains (ILs5ts) on investments Gains Oowl r invpstmtnts llss8 (1.007) 10?5s8 $43 9.10 78 78 (224) Net Ie (expenditure) and net Tno%tment in fun iiss8 {929) 10.636 319 Re¢on¢iliatiott of funds Ftsnd$ brotsght forward at A September 2022 Funds earriedforvmrd at3iAu t 2023 38 3,663 6.055 9.756 9A37 15.221 5.Iz6 20.39Z 9.756 There were no recognised gains and losses in the period other than those stated above.
Ark UK Programmes Statement of finaneial activities- Year ended 31 August 2023 Income and expenditure account." Year CoDrinuiDg ended OI18tiOfiS 2023 2022 £'ooo DisConuThuI okratk>n$ Yearended 2022 2022 É'ooo E'ooo operations operations" 202J 203 £'ooo Total intome Totaiexpendttu Nel income (ekTrendIre> fo the year AS87 (6a26) 18.387 {6.822) 4.829 14,2071 905 (9221 5.734 15.129) {496) 12,061 1496) 11.565 62 605 The ineome and expenditure account aEK>ve excludes the tnovement on the endowments fund. It is stated before losses/gains on investments and transfers. The sumrnary income and expenditure account is derived from the statement of financial activities on the previous page which. together with the notes to the financial statements on pages 22 to 38, provides full information on the movements during the year on all the ndS of the charity. Total ineome of £18.387k (2021122 - £5.734k) comprises £7k (2021122 - £ik) in relation to unrestricted funds and £18,38ok 12021122 - £5,733k) in relation to restricted funds. Adetailed analysis of income and expenditureby source is provided in tbe statement of financial activities and the notes to the financial statements. Net income for the year of £ll65k (2021122- net income of £605k) comprises net income of £7k (2021122 - Ei5k net expenditure) in relation to unrestricted ndS and net expenditure of £11,588k (2021/22 - £620k net expenditure) in relation to restricted funds. as shown in tbe statement of financial activities. Note that the aiM)ve includes the olleff transfer in 2023 to MESME.
Balance sheet 31 Augiist 2023 2023 É'ooo 2022 É'ooo Notes Fixed a55ets Investment property Investment asseLs 642 5,193 656 6.041 io 835 Debtors Cash at bankand in hand 14.402 3,xx8 3.837 717 A7&20 Creditors: duei¥ithin one year 12 (2*946) (IA64) Net ¢UTrCntats A4,574 3.090 Total assets eurrentliabilities 20.409 9.787 Creditors: amounts dueafter more than oneytar 13 (x7} tsi) Net assets 20.392 9.756 The funds ofthe charity Unrestricted general funds Re%tricted funds Endowment flln&s 38 3,663 6,055 15.221 5.126 Total funds ZO.392 9.756 Approved by the board of trustees and signed on its behalf by: Ly Helkr Date: 1810312024 Company registration no: 05932797 J9
Ark UK Programmes Statement of cash flows Yearto 31 August 2023 2023 £'ooo 2022 £'ooo Noies Cash flow5 from operating activities: Ndcash provided by (uwl in) 0Feralinga¢XitseS Cash provided by (osed in) oper•tinE adivitics 2,323 2,323 {1,838) (1,838) Cash flows from investingartivities: Investment income PrLeeds from thedL$tx ofirtwstments Transfer of endowment funds Jrchase of investments Net ¢•sh prOded by itwe5tiThsartiviti¢s 99 2>571 (950) {1.700) 20 65 2.276 (2,183) 158 Change in cash and cash eqwvalents in the year (1,680) Cash and t8h equivalents ai x September 740 2,515 Chan8t in eash and eash equNalents due to txthan8e rate mov¢ments 41 (95) Cash and cash equivalents 4t3iAugusl 740 Notes to the statement of cash flows for the year to 31 August 2023 A Reconciliation of net movement in fimds to net eash provided by (used in) operating activities 2023 £'ooo 2022 E'ooo Net movement in (Ls per the $tstemertt of fin•Jxeial activiti¢s) Adjustments for: (Gain5) ltssses on irtvesimeots (Gains) Ioss on investment property Expenditurefrom endowmenls Investment income (It)¢ase) in debtors IntrSe {decrease) in crnlitors (exdkndingendowment ¢rulitots} Net cash Prodea by {tys¢d in) operatingactivities 10,636 319 {78) (15) 950 199) (10>565) 1,495 2.324 224 (651 (2.144} {172) (1.8381 B Analysis of cash and cash equivalents 2023 É'ooo 2022 £'ooo Cash at bank and in h•t)d Cash held by inve5tiTieDt maDageTS Total ¢asb nd eash e ivalents 3.118 7L7 3124 740 Cash held by investment manasers relates to the endowments invested with JP Morgan. It is not available for e by Ark UK Prosrammes to further charitable activities. 20
Ark UK Programmes Statement of cash flows Yearto 31 August 2023 Notes to the statement of cash flows for the year to 31 August 2023 (continued) C Analysis of changes in net debt At31 Avgust 2023 £'ooo September 2022 £000 Cash flow5 £'ooo nOnh chango £'ooo Cash at bank and in hand Cash hdd by investment mar•gers 717 2.401 {17) 2.384 3>118 740 3iX24 Finance le2se c&li8atiotL8 Totsl (17) 3,107 709 2.398 21
Ark UK Programrnes Notes to the financial statements Yearto 31 August 2023 Accounting policies Basis ofpreparation These financial statements have been prepared for the year to 31 August 2023. The financial statements have been prepared under tbe historical cost convention th items reeognised at cost OT transaction value unl&%s otherwqse stated in the relevant accounting policies below or the notes to these financial statements. The financial statements have been prepared in accordance th Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in aceordance with the Finaneial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS102) (Charities SORP FRS102). the Charities Act 2011 and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The financial statemerAts are presented in sterling and are rounded to the nearest thousand pounds. itical accounting estimates and areas ofjudgement Preparation of the accounts requires the tteeS and management to make significant judgements and estirnates. The items in the accounts where these judgements and estimates have been made include- Estimating the impact of inflation on the eharity's income and expenditure. and a&%e&sing income from new sales and activities, foT the purpose of preparing cash flow forecasts and budgets to assist in the assessment of going concern. Allocating support costs across charitable actsvities" Timing of income recognition for programme fees; Classification of leases as finance or operating. Deteimining the discount rate for future cash flows. and Measurement of fair values of the invostrnent property. Assessment osgoing concern The trustees have assessed whetber the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this asSrnent in respect to a period of one year from the date of approval of these financial statements. The trStees have considered the impact cost pressures due to the wider eeonornic challenges. The trustees have looked at the financial position. including income, expenditure. and reserves. and have acknowledged that some areas of Work continue to be challenging. for example AC+ activity in UK schools. The trSteeS do not consider the post-pandemic environment or other cost pressures due to wider economic challenges to be a cause for material uncertainty in respect of the ability of the charity to wntinue as a going concern. 22
Ark UK Programmes Notes to the financial statements Yearto 31 Ausnist 2023 Aeeounting polieles (continued) Assessment ofgoing concern (continued) A numberof areas of judgement that affect ttems in the accounts havebeen identified above. In addition. the most signifieant areas that 8ffeet the earrying value of the assets held by the charity in the next aeeounting period (the year ending 31 August 2024) are the level of investment return and the perforn]ance of the investment markets (see the investment policy and the risk management sections of the trustees. rert for more inforniation). The truste£s remain of the opinion that the eharitywill have sufficient resour5 to meet its liabilities as they fall due. In the unlikely event that the charity was unable to meet its liabilities. the parent charity. Ark. would provide the necessary financial support in the forrn of a grant or loan. The trustees have therefore concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the ebarity to eontinue as a goin8 concern. Fund accounting Restricted funds are those which are to be Sed for a specified purpose as stipulated by the donor and agreed by the charity. Unrestricted ndS are those which the donor gives to the charity without stipulatins a specific purpose. They are to be used for the furtherance of the objects of the charity in general and may be applled to specifie projects at the discretion of the trustees to further the charity's pUryse8. The endowment bjnd represents monies invested on behalf of individual Ark academies. Any returns generated on these funds can be used without restriction, but only by the academy in question. and are therefore recognised as restricted ineome. The initial capita] can onlybe used with agreement of the Seeretary of State for Education, unless it is spent OD 'equipment, facilities, accommodation, landscaping. and signage. at the relevant academy. The Ark All Saints Academy endohTnent is a permanent endowment for which Ark UK Programmes has been appointed as the tntee. All income and expenditure is shown in the Statement of Financial Activities. Income Ineorne is recosnised in the period in which the eharity has entitlement to the income, the amount of incorne can be measured reliably, and it is probable that the income 11 be received. Where a service is prosryded over a period that spans more than one accounting period. a judgement is made as to tbe amount of income that should be accrued or deferred. Donated services and facilities promded to the eharity are reeognised in the period when it is probable that the economie benefits will flow to the charity* provided they can be measured reliably. This is normally when the service is provided. An equivalent amount is included as expenditure. Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent enOMiC benefit on the open market. 23
Ark UK PrOgraMeS Notes to the financial statements Year to 31 August 2023 Aeeounting policies (continued) Expenditure Liabilities, including those relating to staff costs and redundancies, are recognised as endIture as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is accounted for on an aecrual basis and has been elassified under headings that aggregate all costs related to the category. Ark UK Programmes is resistered for VAT and reclaims VAT in its bUsIn-related expenditure. Irreeoverdble VAT is ineluded in expenditure when incurred. Costs of raising fidS are those incurred in seeking donations for the charity and in publicising the work of the charity. Expenditure on charitable artItieS comprise expenditure related to the direct rtherance of the Charis objectives. In the accounts of the charity, the award of a grant is recorded as charitable expenditure and the unspent amount is held in the balance sheet as a grant creditor. Alioeation ofoverhead and support costs Support costs are those functlODS that assist the work of the charity but do not directly undertake charitable activbties. Support costs include back-office costs, finance. pa011. and Governance costs which support the charity's programmes and activities. Governance costs are those incurred in connection with the management of the cbariws a&sets. organisationa] administration, and compliance vrith eonstitutional and statutory requirements. Where costs canIiot be directly attributed, they have been allocated to activities. The basis for the allocation of support costs to charitable activiti&s is set out in note 5 to the financial statements. Volunteers and donated se1 With the exception of tntstees, patrons and a small number of advisors who all provide their services on a voluntary basis, the charity does not rely upon volunteers or donated seNices in delivering services. The financial value of semces donated by adNrysors is included as expenditure at an estimated fair value and a corresponding value of incotne is included as an in-kitld donation. Discontinued activities Where a decision has been made to discontinue or terniinate an activity in accordance with the definitions contained wthin FRS 102. income. costs, and obligatioLs associated with tbe discontinuing operation are reeognised within the year. The income. o)sts. and obligations are disclosed separately on the face of the statement of financial activities. Investments Inv£strnents are a form of b&sic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sbeet date. Realised andunrealisedgains (or losses) arecredited lor debited) to the statement of financial aetivities in the year in which they arise.
Ark UK Programmes Notes to the finaneial statements Yearto 31 August 2023 Accounting policies (continued) Investments (continued) A fair value hierarchy that prioritises the inputs to valuation techniques is used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in aetive markets for identical assets or liabilities ([e1 i rneasurernent) and lowest priority to unobservable inputs (I£vel 3 measurement). The levels of fair value hierdrchy are described below. Level i (listed investments)- Unadj5ted quoted process in active rnarkets that are accessible at the measurement date for identical. unrestricted assets. or liabilities- Level 2 (unlisted investments)- Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable either directly or indirectly- and Level 3 (unlisted illvestmeDts)- Prices orvaluation that requires inputs that are both significant to the fair value measurement and unobservable. Investments that trade in marketsthat are not eonsidered to be active but are valued based on quoted rnarket prices for an identical instrument, dealer quotations. or alternative pricing sources supported byobservable inputs are dassified within Level 2. As IEvel 2 investments include positions that are not traded in active markets andlor are subject to transter restrictiOTLS, valuations may be adjusted to reflect illiquRdity andlor non-transferability. which are generallybased on available market information. The main fomi of financial risk faced by the charity is that of volatility in equity rnarkets and investment markets due to wider economic conditions. the attitude of investors to investment risk, and changes in sentiment coneerning equities and within particular sectors or sub-sectors. InUtment Property Investment Property is held by Ark UK ProgramTne5 to earn rentals and for Capital appreciation, rather than for use in the ordinary Course of business. Investment properties are measured at cost and subsequently at fair value at the reportins date. Profe&8ional adce is sought as appropriate to detemine the valuation of investment property. Changes in fair values are reeognised in the statement of financial activities. Investment property is subject to renovations or improvements at regular intervals. The cost of major renovations and improvements is capitalised. The cost of maintenance, repairs, and minor improvements is recognised in the statement of financial activities when occurred. On disposal of an investment property. the difference between the disposal prodS and the Carrying amount is recosnised in the statement of financial activities. Foreign curreneies Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign eurreneies are restated at the rate of exchange ruling at the balanee sheet date.
Ark UK Programmes Notes to the financial Statements YeaTtO 31 August 2023 Accounting policies (eontinued) Operoting lease Operating lease renta]sarecharged on astraight-linebasi5 overthe term of the lease. These are included in the Charitable Activities expenditure in the Statement of Financial Activities. inance lease A finance lease is recognised when it is deterrnined that the lease arrangement transfers substantially all the risks and rewards of ownership to the lessee. At the cOrnrnenMent of tbe lease terni, Ark UK PTogramm&% Tecognises its rights of use and obligations under the finance lease as an asset and a liability in the balance sheet at an amount equal to the fair value of the leased asset or, if lower. the present value of the minimum lease payinents. deterniined at the inception of the lease. Where the implicit rate eannot be determined. the charity's incrernental knrrowing rate is use Any initial direct costs are added to the amount recognised as an asset. Subsequently. the minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability sing the effective interest method, including updating the effective interest rate to reflect the charity's incremental eost of capital. Thts rate was 4.60% (2021122 - 3.20%). Debtors Debtors are recognised at their settlement amount. less any provision for non- recoverability. Prepayments are valued at the aTnount prepaid. They have been discounted to the present value of the tUre cash receipt where such discounting is material. Cash at bank and in hand Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three rnonths from the date of acquisition. DesIts for more than three months but less than one year have been disclosed as short-tern) deposits. Cash placed on deposit for more than one year is disdosed as a fixed asset investmenL Creditors andprovisions CreditOTS and provisions are recognised when there is an oblisation at the balance sheet date as a result of a past event, it IS Probable that a transfer of economie benefit will be required in settlement. and the amount of the settlement be estimated reliably. Creditors and provisions are recognised at the avnount the eharity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash paent when such discounting is material. 26
Notes to the financial statements Year to y Aiigiist 2023 . Grants and Donations During the year. the organisation received the folloming grants and donations: Total È023 fooo Unte5trided Reslricted End¢)MryneT £'ooo £'ooo £'ooo 2023 ArLCurriculum+ Arkstart Martingale Foundation srEM ExttlEence Portfolio 2023 totsl 793 2,198 6.605 5.788 A5a84 793 2,198 6,605 5,788 15.384 Total 2022 £000 unrestrict RÈstrirtÈd Endowments £000 2022 Ark rrIcUlum+ Arkstort MartingaleFoEtndatton Unrestricted Continuing operations Discontinued operntions". MESME 2022 totol 1.455 714 714 2,204 905 3.109 ?,205 905 3.110 b. Ineome from eharitable activities Total 2023 £'ooo 2023 E'ooo £'ooo £'ooo Ark Curriculum+ Arkstart 2.606 171 2,606 171 Other income Ark Curriculum+ Other 120 120 127 2023 totsj 2.897 2.904 Trtal Unrestricted R&stricted Endowments £'ooo 2022 2022 Ark crrICulUm+ Arkstart 2,270 2.270 2.365 Other inwme Ark LrrIculUm+ Arkstort 169 25 25 194 2.559 2022 totol 27
Ark UK Programmes Notes to the financial statements Year to 31 August 2023 3 Investment ineome Total 2023 £'ooo untricted Rt%tricted £'ooo Eooo 2023 ItKome and interest fmm lisied In$1Ments IDcome from investment protwty 2023 total 80 80 19 99 99 Total 2022 £'ooo Unrestritted Restricted £'ooo £000 2022 Incomeond interestfvim ltsted inuestrnents In¢omtfroFn int*srmeiitproperty 2022 totol li 65 In 2009110. Ark UK Programmes was given responsibility for the administration of the endowments held on behalf of individual Ark academies. These funds are invested with JP Morgan and the relationship is set out in a Deed of Gift between Ark UK Programmes. Ark. and the Secretary of State for Education. King Solomon Academy contributed an additional £75ok into its endowment, which is outside of the Deed of Gift. IDJanuary 2015. ArkUKProgrammes was appointed as the trustee of an endowinent held under a Trust Deed for Ark All Saints Academy (formerly St Micbael and All Angels Church of England Acaderny). The value of the endowment transferred into ATk UK Programmes was £607k 4 Analysls of charitable expenditure Grant funding SuptM)rt costs (see note 5) £'ooo Aclitrilies undertaken directly attiwties E'ooo E'ooo Total 2023 £'ooo 2023 Charitable expendA(ure ArkCurriclllum+ Arkstsrt Martingale Foutldation srEM Excellentr PortFdio Endowment progrdmmelNote 6) 2023 10ts1 3.671 1.182 406 654 255 84 47 3tr926 1,266 453 657 974 7,276 950 950 5,929 397 28
Ark UK Programmes Notes to the financia] statements Yearto 31 August 2023 4 Analysis of charitable expenditure (continued) Actiutttes Crant Supswt underroken fvnding oj costs (see directly ociivities note5) É'ooo rotol 2022 £000 2022 chtable expenditw ATECTrIclm+ Arkstart Martingok Fwttdor Endowmentpro9romme Unrestricted Conrfnuin9 operotions Disconttnued operations." MESME 2022 total 3R44 112 3a56 787 J2 4.020 921 4.941 187 4,207 922 5,129 188 5 Allocation of support costs Other overheads and suptM)rt staff £'ooo Total 2023 £'ooo Finan £'ooo HR Governan £'ooo E'ooo 2023 Charitable exFenditure Ark CleU1rn+ Ark Stxrt Martingale Foundaiion srEM Excellentr Porrfdio Endowment priyamme 2023 total 179 36 255 84 47 40 20 IL8 17 232 397 Finanee, governance and HR costs are allocated on the basis of time spent on each prosramme. Other overheads coTrsist of the desk charse. which is allocated on the basis of the number of desks reserved for each programme. costs. and any reInaiDing core costs. The allocation of support costs to activities in note 4 provides a more accurate picture of the full costs of these activities. It does not represent use of progrnmme funds. Due to a change in allocation rnetho&8 more costs are directly allocated to venture support costs. 29
Ark UK Programmes Notes to the financial statements Yearto 31 August 2023 5 Allocation of support eosts (continued) OtlEer overheads support sroff £000 Total 2022 £000 Finane HR Gotwnonce £000 2022 Choritableerpenditure Ark Curriculum+ Ark Srort MESME Endowynentprogramme Unrestnctal 2022 totol 112 47 57 12 12 102 45 188 6 Analysis of net movement in funds Gains and transfers E'ooo At31 August 2023 É'ooo Sepiember 2022 É'ooo Irtt))me Bxtnditure £'ooo É'ooo 2023 Re8trirted funds Ark Curriculum+ Arkstart IESME (see note 21) Martingale Foundath)n STEM Exttllentt Portfolio Ark SchrKJls eThJowment 2.JOS 556 496 3519 2J69 ts.926) (1.265) 1496) (4531 (6s8) 1,698 1,660 6.605 5.788 6,152 5.130 506 3.663 6.055 (24) (6.822) (1.007) 581 15.221 5.126 2023 totsl Endomryntntfunds Unrestrieted funds General Total funds A8a80 38 9.756 45 20,392 18>387 (7?829) The restricted funds of Ark Curriculum+ have arisen from grants given specifically for use byArk Curriculurn+ plus fees frotn sehooLs signed up to the programmes and via the DCMS. The Ark Start restricted funds have arisen from the receipt of grant income for use SpecIfilY on the respective prosrammes. MESME restricted fullds have arisen from the reeeipt of grant income to support students to achieve mathematical excellence ulldeT the Maths Circles programme following on from the sueee&8 of the model established in Russia and the US. Following independell. which took place on 1st November 2023 all fimds were transferred to the new charity. In 2022123, Martingale launched as a new post%raduate scholarship programme, whose mission will be to find. fund. and support a new generation of STEM postgraduates for whom family income would otherwise be a barrier to the pursuit of academic exllenCe. The first cohort of Martingale Scholars took up places in September 2023. 30
Ark UK ProkTammes Notes to the financial statements Yearto 31 August 2023 6 Analysis of net movement in funds (continued) STEM Excellence Portfolio Restricted Fundsrelated to funds reivedforthe express purposes of meeting the goals of the Maths EX11enCe Fund and delivering the 65 International Mathematies Olympiad. The Ark Sch(¥ols Endowment Interest in restricted funds has arisen from dividen¢ls and interest paid out on the endowment investtnents held by Ark UK Programmes on behalf of Indidual Ark academies. The income is restricted for use by the Ark academyfrom whose endowmentthe income arose. The endowment fund represents monie5 invested on behalf of individual Ark academies. Any returns generated on these fijnds can be used without restriction. but only by the acadetny in question, and are therefore recognised as restricted income. The initial capital can onlybe used with agreement of the Secretary of State for Education. unless it is to be spent on 'equipment. facilitios. accommodation. landscaping. or signage. at the relevant academy. The exception to this is the Ark All Saints Academy endowment for which Ark UK Programmes was appointed the tntee in January 2015. The principal surn of thi5 endowtnent can only be spent with the perrnis5ioTh of the Secretary of State. At 31 Ausust 2023. the balaTr of expendable endowments was £4.263k (2021122- £5,209k) and the balance of pernianent endowmentswas £863k (2021122- £846k). In the year, £57k expenditure was made from endowinents (2021122- £62k); £56k for inve5trnent nwiager fees (2021122- £6ik) and £ik interest on the finance lease (2021/22 - £ik, note 14). An amount of £95ok was also withdrawn and transferred to Ark Schools for capital expenditure projects (2021122 - £nil). Afl SePtemr 2021 Gorns/ (losses)ond rniTtsfvrs £000 At31 August 2022 £'ooo Income ExK*nditure £'ooo 202 Restrtttedfvnds Ark Currrculurn+ Arkstort M&SME MortingoleFoundorion Ark&h( endowment interest 2022 totol Endowmentfvnds Unre5trictedfvnds General Totolfvnds 1&7 3,894 834 (&356) (787) (922) ts5) 2.105 556 496 (13) ts.1 (62) 506 3,663 6.055 3.043 S733 (224) (16) (5,191) 38 9.756 9,437 5.734 (224) Net movement in funds Net movement in funds is ststed after eharging: 2023 £'ooo 2022 £'ooo Statuiory audti fees Ai
Ark UK PrOarnmeS Notss to the financial ststements Yearto 31 August 2023 8 Staff costs and numbers 2023 £'ooo 2022 E'ooo Sa]aries and wages 3,319 371 340 4.030 2A64 279 266 Pension Lyjsts 3,009 No redundancy and ex-gratia severance paents were made in tbe year {2021122 Nil). The average number of staff employed durins the period was: HeAdeouni 2023 2022 Charitable actIti& Supwjrt to actitriti 49 76 54 The number of employees during the period who earned over £60.000 in the year (illcluding benefits) was as follows: 2023 2022 E60,001- £70,000 É70,001- £80,000 £80,001- £90,000 £90.ooi- Eioo.000 Eioo.ooi- Eiio.000 Eiio.001- £120.000 12 The pension Contributions made on behalf of the above employees was £108,392 (2021/22 - £64.535) Key management persotmel of Ark UK Programmes comprise the trustees and the directors as listed on page i. The total amount of employee benefits (ineluding pension and social security Contributio) received by key management personnel was £117.310 (2021122 - £112.047). Key managernent personnel comprise the CEO and Deputy CEO of Ark. they are paid by the parent charity. Ark, by virtue of them being ernployees of the parent charity. 32
Ark UK Programmes Not&$ to the fAnancial statements Yearto 31 August 2023 9 Inv¢stmcnt property tat)d and buildin8S E'ooo Total £'ooo C•st or v31uation: At i September 2022 Drease in fairvalue At 31 Avgiist 2023 656 (14) 656 (14) 642 Callyingamoyntat 31 Au 642 The long leasehold investment property is held at fair value. Q)mpletion of the property was on 20 May 2016. The trustees have perfornied the valuation of the property at 31 August 2023 based on publicty available inforniation. Included in tbe amount for investment property is £16,820 (2021122 - £31,387) relating to assets held under a finance lease (note 14). io Investment assets 2023 £'ooo 2022 £'ooo Listed inveslments Market valueat i September Additions to investments at cost Disw]s at market value- pnxeeds Net ut)ttalised investment I1$) gain Market Ille at 31 August Cash held by inveslmenl managers forreinve5tment 6,018 11700 (3*179) 648 S>x87 0,250 2.183 (2,310) (1051 6,018 23 6.041 5.193 Ctxtof list inTrEstments at 31 4.903 5.631 All listed investments were traded on a recognised stock exchange. Listed investtnents held at 31 August 2023 comprised the following: 2023 £'ooo 2022 £'ooo 0[SeaS ts4Uities Fixwj interest Alternativeassets Mi$12Uan8)u5/fortigtx exchange 3.523 1,889 606 589 5.187 6.018 All investments are held in a portfolio of diveTsified funds. Accordingly. no individual holding is considered to be material when eompared to tbe total va]ue of the listed investment portfolio at 31 August 2023. Foreign excbange foThYard contracts are used to ameliorate the risk associated with holding investments in foreign currencies. These are held by the investment managers and forni part of their strategy for managing risk. 33
Ark UK Programmes Notes to the financial statements Yearto 31 August 2023 io Investment assets (continued) 2023 £'ooo 2022 £000 Unrealised gain5 included above: On inlMents Totsl uttrtalised 8ains at 31 August 284 284 387 387 Reeonaliation of movements in unrealisedEai Unrealised gain5at i Sepiember l.. in resrttt todiswLs in the JEar Add.. Thet unrealised gains Oftsses) Totsl unrtalised gains at 3IAu 387 (751) 648 284 830 (3381 {1051 387 11 Debtors 2023 £'ooo 2022 £'ooo Tradedebto Prepayments and otherdebtors ACcrUj inwme Amount5 duefroln Absolute Rern for Kids (Ark) (note 17) Amounls due from Abg)lute Relurn for Kids(Ark) for Purwthl Ventur¢s Anwunis due from Ark&h(w)Ls 839 302 315 365 1.924 2.536 10,264 343 X&402 3.265 12 Creditors: Amounts falling due within one year 2023 eooo 2022 É'oo 317 441 798 451 296 Trade creditots DeferrgA income Amounts due to AbsoluteRelurn for Kids (Ark) (nL*e 17) Amounts due toArk&hLx)]s Taxation and seojrity Othercreditors Amounts due to ML8MEas partof traJLsfer (see Jkite21) 690 X7 496 2,946 LA64 Deferred income relates to progrdmme fees for ArkCurricu]um+ received in advance for delivery in the followins financial year. The movements in deferred income are analysed below: fwm preYioii$ Deferrvj in year trrellt year É'ooo £'ooo At3J August 2023 £'ooo At 3IAu8OSt 2022 É'ooo Programme fees Total deferred ineome (090) {690) 79B 798 798
Notes to the financial statements Year to 31 August 2023 13 Creditors: Amounts falling due after more than one year 2023 £'ooo 2022 £'ooo Finantt lease liability 17 14 Finance lease The future minimum finance lease payments are as follows". 2023 £'ooo 2022 £'ooo Nlater than oTheyear" Laterthan oneyearand not laterthan fiveyeats tater than five yea Total gross payments 1£5s.' finarkce charges Carrying amount of ]iabibty "knsewyynenls of£400 are duein noluter t111 one Yr. 300 302 (285) 300 302 1271) The finance lease relates to the investment property (note 9). There are no contingent relltsl. renewal. or purchase option clauses. 15 Analysis of net assets between funds Unrestrict Ceneral Re5trictd Endowment fuT fund5 funds É'ooo £'ooo £'ooo Totsl £'ooo 2023 Fund balances at 31 AIisiLsI 2023 are represented by: Investment assets Current asse Crejito aTnouDts fallingdue within one year crd1t0 amounts fallingdue in mo¢ethan one year Totsl net wets 479 (434) 16,995 {2J54) 75 (187) A7?549 (2,975) (17) S,A26 (17) 20.392 .221 GeI Re5tri(sed Endowmeot fynd fvnds funds Éooo 000 Totol £'ooo 2022 Fund boloFt(X5Qt3iAiigu#2022 ore represenred by.. I$tment (wets Currentossets Cratitors.. omountsfolling duewithin one y Creditors.. omountsfolltng duein more than oneyettr Total FtetQ5sets 6,19J 61 (166) 6.697 4,554 (1,464) 235 (197J 4258 (I,ioi) (3E) 6.055 (31) 9,756 38 3.663
Ark UK Programmes Notes to the financial statements Year to 31 August 2023 16 Trustees, remuneration and expenses The only trustees of the company who received payment or other emolutnents are di5c105ed Note 8 with no expenses being reimbursed to any trustee through Ark UK Programrnes during the current and prior periods. 17 Related party transactions The ellarity is a wholly owned subsidiary of Absolute Return for Kids (Ark). Ark UK Programmes Ilas taken advantage of the exemption available under Section 33 of FRS102 Related Party Disclosure not to disclose group transactions between the cbaTity and its paTent. During the year, tbe organisation had the following transactions witb Ark Schools. Ark SchooIs 15 anArk family member, L&>rd Fink and Lucy Heller are also teeS of Ark Schw]s. IncomefromArkSchoots and indiuidualArk academies.. £138k (2021122 - £118k) towar(b the msts of the Ark Curriculum+ resourees and training and shared supplier accounts. Ewnditure ineurred with Arkschools.. £nil (2021122- £136k) towards rent and semce charges forshared office space with Ark Schools. £nil (2021122 - É32k) towards technology services provided byArk Schools. Amounts due from and to Ark and Ark SchTh)Is are included within notes li and 12 respertively. £0.7rn (2021122 - £o.Im) income was received in the year from The Education Endowment Foundation. Lucy Heller is a trustee of The Education Endowment Foundation and is also a trustee of Ark UK Programmes. 18 Ultimate parent undertaking During the year under review. the company's immediate and ultimate parent undertaking was Absolute Return for Kids (ARK). Ark is registered in England as a charitable company limited by guarantee (eompany registration number 04589451. charity resistration number 1095322). Forthe period under review. Ark has included Ark UK Programmes within its group finaneial statements. eopies of which are available at its registered office: Theyellow Building> i Nicholas Road, London. Wii A9 TaKation Ark UK Programmes has Charitable stat$ (ebarity number 1137932). Given the nature of its activities. the charity will not be subject to income tax or corporation tax on iThcome derivedfrom its cbaritable activities. as it would fall within thevarious exemptions available to registered charities. 36
Ark UK Progranunes Notes to the financial statements YeartQ 31 August 2023 20 Post balance sheet events In response to the significant growth over recent years. the Ark board approved the spin-out of a new organisation tbat would enable Ark UK Programmes, non-sehools ventures to become independent and continue to expand. Accordingly. on i November 2023. the sfEM Excellence Portfolio and the Martingale Foundation oved to Purposeful Ventur&s. In December 2023. £9.9m of funding restricted to these programmes was transferred frorn Ark. For clarity, Ark Curriculum+ and Ark Start remain part of Ark UK Programmes. 21 Discontinued operations On i September 2022. MESME becan)e an independent charity and was included within Ark UK Prograe5 accounts for the last time in filll during the year ended 31 August 2022 as shown below. Year ended 31August 2022 Total £000 Income from: Donations and legacie5". Grants and donations Total incornt 905 Lynditsre on: Charitable3ctiities Supwrt to progtamm¢s Total expeTrditure (922) (922} Restricted fiu)d bthlantt t i Sept¢mber 2021 Net expenditure for the year ended 31 Augusl 2022 Restrided fund b•Jan¢e at31 Au8lLSt 2022 513 (17) 496 The closing balance of £496k has been shown as a transfer out in the 2022123 aeeounts on the fa of the statement of finaneial aetivities. 37
Ark UK Programmes Notes to the financial statements Year to 31 August 2023 Comparative statement of financial activities for continuing operations Year ended 31 August 2022 Toral £'ooo Unresthcttsl Restrth Ethfoujmertts £000 Incornefrom." Donations and legacies.. Grants donation$ IAJnotedservi(Ys Charitable activtties logrornrnefees Other LMefrOM aetivities InStmentS Continuing operotx)n5 Dwntinued t)perations rotal income 2205 2b 2J65 194 65 4.829 905 5,734 828 5.733 Ewditure on.. RtttsiFt9fvnds Instment monogEm¢rtt 61 61 Interestonfinontxleose chOrittle ocTrtriTres Support toprogroroms ik)Aoied serutces C<)ntiRuin9 operot40n5 Dis¢oAttinuedoperotrolls Totol ewditure 16 J91 4.207 2b.4 4,191 4.269 922 5.J91 16 5.113 62 Net inwme (evxndlrÉ)tfftre gtttns eSrn1ets Goins on inLEStments (J5) (02) (224J zo (224) Net in(71me (Èwthture)ortd net infvnds (w (286J Reconciliation offvnds Funds brOughtforuTd ot i Septernber202J Funds carrledforrrd ot3IAu ust2022 6,341 9.437 3.663 6.055 9,756 There were no recosnised gains and losses in the period other than those stated above. 38