2020-08-31-accounts

Company number.. 07739831 Charity number.. 1148848 Services For Education TRUSTEES REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} CONTENTS Page R8fgrnnc8 and administrative d•tails of the Company, its Trustsas and advisers Tru$tsg$' rop¢rt 2-16 Independent auditors, roport on tho financl*l statèmonts 17-19 Statsment of financial activitios 20 Balance shggt 21 Stat•m•nt of ca$h flo 22 Notes to the financlal statoments 23-42

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020 Trustees Sarah Smith, Chair Sewn Calvin Martin Chitty Matthew Clements-wheeler Eric Williams Iresigned 11 July 2020} Laura Williams Philip Davies (appointed 1 September 20201 David Bolion (appointed 1 September 20201 Paul Stone lappoinled 1 September 20201 Joanna Cooney lappoinled 24 May 20211 Parmjil Singh lappoinle(124 May 20211 Company r¢glstor•d number 07739831 Charlty rnglstsr•d number 1148848 Rogl•tored office Unrt 3, Hott Court Holl Street Birniingham Science Park, Aston Birniingham B7 4AX Company secretary David AJco¢k Chlof ex•cutSva offic8r Sharon Bell Independont auditors MHA Maclntyre Hudson Charte￿d A¢countsnl$ Slalulory Audrtors Rutland Hou$e 148 Edmund Street Birniingham B3 2FD Page 1

WHYWE EXIST Our Vision and Mission Services for Education ISFEI is a unique chanty th81 uses the power of ￿arning and of music lo transform and enhance the INes of chikjren, ytyjng people, aduhs, and our wider communib'es. We bring learning and music to life. Our work encompasses a broad range of settings, including.. Teaching pupils leaming vocal and traditional inslruments-to buil¢Y technical and performance skills alongside confidence and creativity. and encourage pursuit of musitrbased careers Teaching non-tradits'onal instruments andlor musical styles to raise the profile of these approaches and encourage the expansion and diversification of musical experiences Specialist work wrth SENDldisadvantaged groups- lo In¢￿ase engagement and attainment Specialist work wrth Earty Year settings- to promote a positive start to life and leaming Our Music School to support lrfelong leaming and encourage the love of music amongst young people ant1 aduks Working with adults - to promote wellbeing and positive mentsl heallh later in life, through involvement in music and cultural a¢livilies Bespoke consultoncy, advice ar￿ professional development programme$ ~ enabling School leaders, educators and governors to raise attainment levels, and develop and irnplemenl inilialives that improve heallh, wellbeing, $landards and outcomes lo ensure all children and young people realise their full potential academically. physically and emotionally. To enable schools, wder educational seitings. and those organisations working wth children and young people to develop safeguarding policy and prath'¢e that ensure$ the needs of all are recognised and mel efficiently and effeclNely. Support, guidance. and development activities to those in Ihe earliest 5tage$ of their leaching career in order to enable them to become highly skilled, leadin9 edge practitioner5. Our Values Our values are extremely important to us as these untlerpin our vision and mission..

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CHAIR'S INTRODUCtION Welcome to our 2019120 Annual Report and Accounts. It has been an extraordinary year for Services For Educab'on. September 2019 started much like any other year. Hundred$ experien¢ed the joy of leaming a musical instrument for the first time. others conb.nued to build on their progress. Our School Support team were working wth School leaders and teachers from across Birmingham and beyond, and a new intake of Newly Qualffied Teachers were supported as they started their careers in the classroom. We said farewell lo our Chief Executive. Martyn Collin who retired on 30 September 2019. and welcomed his replacement, Sharon Bell on 7 October 2019. In January 2020, as with all organisalions we began to sense that change was coming. Lockdown one and the closure of schools had a signfficant impaci on our organisation. Ovemight. a large number of our colleagues We￿ no longer able to deliver'face lo face, tuition- something which is a passion al the heart of every teacher. The response of colleagues throughout the early months of the pandemic has been incredible. Our training and consultsncy portfolio was transformed, seemingly overnight, to be delivered in the virtual environment., thousands of music kssons were delivered over Microsoft Teams., a virtual learning platform was developed wrth hundreds of hours of video content, and our central leamg adapted lo new ways ofworking from the home environment. That'can do, approach and wllingness to embrace the new challenges ¥thich have emerged al various stages of the pandemic. has been an ongoing lealure in how all colleagues have responded. We couldn't have navigated this year ￿thOut the support of all our colleagues. our schools, our pupils and their parents, numerous stakeholders and supporters across the city of Birmingham and beyond. We are very grateful lo all of them for their support, as well as our major funders, including Arts Council England. I would like to thank my fellow trustees on our 8oard, and particulady acknO￿edge the support and dedication of our outgoing Chair of Trustees, Martin Chity, vtho stepped down as Chair in March 2021. Sarah Smith Chair of Trustees

TRUSTEES REPORT The Trustees and DirectOTS of Services For Education Limited present their annual and strategic report and audited financial slalemenls for the year ended 31 August 2020. The company trades under the name Services For Educabon ISFEI and will be referred to as SFE in the rest of this document. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and A￿oUntIng and Reporb"ng by Charrties." Stslement of Recommended Practice applicable lo charities preparing their accounts and in a¢¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland. Since the company qualifie5 as small under sects.on 383, the strategic report required of medium and large companie5 under The Companie5 Act 2006 IStr8legic RepNt and Directorfs Report) Regulation5 2013 is not required. Our Approach to Safeguarding In 2019 the Charty Commission upd*eO their guidance, underlining Ihat 'AII charity trustees have to ensure that their charrty priorilises the safety of anyone who ￿Me$ into contact Trmlh their charity.. Services For Education 15 committed lo the highest stsndards in promoting the welfare of children and adults and protecting them from hami at all limes. Safeguarding means protecting the rights of children. young people and adults to live in safety. free from abuse and neglect. 11 is about people and organi5alions working together to prevent and Stop both the risk and experience of abuse and neglect. All staff undertake annual safeguarding refresher training. This altemates befv￿en face to lace, and the SFE online training course. All new staff are required to undertake the online course before commencing delivery for SFE. The SFE lead lor Safeguar(Jing carnes out an annual review of all training content lo ensure this 15 in line with current policy and guidance (Keeping Children Safe in Education, and Working Together lo Saleguartj Children). SFE ha$ five members ol stsff who are trained a$ Designated Safeguardin9 Leads IDSLI. and who are required lo maintain their ststus through completing bi-annual update training. These five members ol staff manage all safeguarding queries and concerns, liaising with schools, and external agencies as appropriate for aduts. SFE safeguarding policy 15 reviewed annually. SFE is represented on the Bimiingham Safeguarding in Education group to ensure all company practice is aligned lo the Bimingham Safeguarding Chiltyren Partnership structures and procedures. Our Approach to Fundraising SeNices For Education is proud lo be ￿gIstered th the Fundraising Regulator, the independent body which sets and maintains the slandawds for fvndraising in the Unrted Kingdom. Vve are committed lo the Fundraising Promise to ensure our fundraising activiiies are legal, open, honest and respectful. We work closely we an external fundraising consuttant th'd writer who supports our grants and trusts activity which is currently our main fundraising income generab.on stream. Our focus this year has been lo keep our trusts and funding bodies upttrdate about the impact covid has had upon our funded projects. The strategy has been to build a three•year ￿'peline of fvnds which was on track unts'l the pandemic hrt, the plan moving forward wll be to rebuikl that pipeline. From an individual and communty perspective the strategy has been lo create more compelling story- based and oulcome-based communications so Ihal we start to build a relationship wrf(h donors rather than just being transactional in our approach. In 2019. for the first time at SFE we produced our annual review to support this approach.

We afe also starting lo build relationships wth corporates. through an approach based around six key ways corporates can support and engage with SFE.. Charity of the year Sptsnsorship Affinity marketing Payroll Giving Stock Partnerships Strategic Partherships In 2019120 SFE received no complaints about its fvndraising actNity. Our Approach to Quality We pride ourselves in the qualty of our services and Ihe professionalism and skills of our highly talented colleagues. As we leach mu51c lo 34,000 children per week and deliver an extensive portfolio of training and consultancy products to school leaders. it is essential that our customer lacing teams keep at the forefront of ¢Jevelopmenls and best practice in their fields. School Support The conversion to online delivery dictated much CPD being focused on the technical skills to achieve this. and the diffe￿nI pedagogical approaches and resources required lo create effective remote leaming experiences. Good practice sessions have now become a feature of team meetings where monthly 'CPD Exchange, sessions have been rfrinstsled. In addition, CPD activity has been around significant policy changes in earfy years assessment, and early career framework, with a view lo infoming a new offer in both areas in 2021122. Music Throughout the pandemic, we have Contsnued our series of tw"Iight CPD sessions for primary. secondary and special schoo15. These take place every term and have seen music coordinator5 sharing best practice with each other on how they have cope¢J during COVICk19 and online leaming. Sessions have also seen us supporting Ihem with composition from hub partners BCMG and singing with our vocal team and Ex Cathedra (hub partners). We are working on our schools. Music Conference, which will be happening in June as a series of ￿lIght sessions. We continue lo improve and deveh)p our'in house, CPD with the wder music team. In lockdown 1, we had weekly departmental meetings vthich saw our Heads of Department leading on many differenttypes of activity. Since January 2021. we have staged weekly hvilight 'drop in5, for the music team. These have focussed on rolling out our whole portfolio including WCIT and CMS online during lockdown 3. We also had sessions on Makalon. behaviour management. managing workload, large 9roup teams lessons, using online whiteboards and playback 5011ware. We will be resuming our peer-tO•peer observations in the academic year 2021-22, where staff are able to take advantage of spenfjing haw a day wilh a ¢olleague through their PDR and obsemng their leaching and learning. Customer Feedbock Continuous reflection and improvement are an important part of our approach and this ha5 been particularfy important as we have pivoted to orFline delivery due to Covid-19. Significant improvements were enabled in the early days of lockdown as colleagues became more familiar with the virtual platforms available. Customer feedback is obtsined from all course delegates re5por15e rale5 have improved by collecting feedback online. Our music provision is informally benchmarked in regular conversations with other Music Education Hubs, and we have been leading the way in how we have supported staff, parents and school$.

OUR ACHIEVEMENTS AND PERFORMANCE The TrusteeslDirectors have taken note of the Charity Commission's guidance on public benefit in reviewng the aims and objectives and in planning activities. In particular, the TrusteeslDirectors consider how the planned activities contribute lo the charity's aims and objectives and they ensure these are Carried out for the public benefit by delivering services that are valued by the beneficiaries Ischool, pupils, teachers, parents) and which deliv￿ deal and definable benefit to those beneficiaries. WE EMPLOY 249 7.5 MILLION INCOME EMPLOYEES 221 HIGHLY TRAINED TEACHERS DEVELOPING TRAINING OVER 616 Nors SENIORSAFEGUARDING STAFF EACH YEAR PODCAST TO BECOME DOWNLOADS TEACHING PROVIDING FREE OVER 38,000 WE BRING MUSIC INSTRUMENTSTO ALL OUR MUSIC PUPILS CHILDREN MUSIC. WEEKLY AND LEARNING TO LIFE For those working in education, 18 March 2020 was a defining moment- il was announced that there would be a period of mass closure ol Sch￿Is. the likes of which hadn't been seen since WW2. In an organisalion focussed on teaching music in schools and providing training and development for teachers and school leaders. our w￿￿ suddenly looked very dtherenl_ Reviewing the year ending 31 August 2020. it is easy to focus on the period since March. However before then, colleagues were teaching in sthools. delivering training, providing consuliancy, running our award-winning Health For Lrfe programme. leaching musi¢ - and delivering a fabulous array of concerts all through the festsve period. It is a year in which the creatwty, resilience, and talent of our colleagues shone through.

Highlighted below are some of our key achievements in the period.. Enabling. at short notice. our enbre training and development portfolio to be deliVe￿d in the virtual environment Growth of School Support income from non-Bimiingham customers- representing 12QA of total web sales in 12 months from first l(*kdown. 20,000 on-line music lessons delivered whilst Sch￿13 were closed in Lockdown 1 Sales and Marteting team shortlisted for 'Excellence in Sales and Marketing, in the Greater Birmingham Chambers of Commerce Annual Awards Our inclusion team, shortli5ted in the Music and Drama Education Awards for 'Excellen¢e In SEND, Creation of a Virtual Leaming Platform to support Vthole Class Instrumental Teaching during lockdown, in¢orporab"ng over 850 videos Consistently received &star Trustpilot reviews for our training provision Delivered our first Virtual Youth Proms, covering 4 nights and highlighbng hundreds of our tslented ensemble members. Michelin Stsrred Chel, Glyn Pumell led the 'Health For Life, cookathon as more than 1,000 school Children took part simultaneously in their own sch¢)ols Integration of CRM and e-commerce website Implementation of a new on-line system to manage expenses and mileage claims

OUR FUTURE PLANS A key deliverable during 2019120, has been finalising 'Strategy 2025 ~ Creating Tomorrow Today,. outlining our roadmap for the next five years. The past 12 months have highlighted more than ever before, the need for a strategy to be responsive to changes within the external environment, as well as those of our stakeholders and partners. Our amb￿On$ are.. To revolutionise educational leaming to maximise participation, through principleslevidence led educabonal practices great teachers delivering great leaming offering personalised. flexible learning Whe￿ appropriate supporting the development of employabilrty arKI skills leading edge services and resources To be a key partner for raising standards arKI attainment in education in our cty, region and nationally, through being the distinctive lea¢Jer in our sector providing agile and collaborative Ire50urceful, bespoke andlor individualisedl solutions leading and slimulaling debate on key issues facing the education sector encouraging wdening of participabon and development of a love of life-long learning for all ages developing a sustsinable organisats.on for the long lem that allows us to support and progfe$$ key initiatives To make important contributions lo our society and communities, particularfy Ihrou9h our work with disadvantaged groups and young people, through innovation and application of our expertise making a demonstrable impact positive alumni and stakeholder engagement The$e ambitions wll be delivered Ihrough six organisation wde themes whith all our colleagues Can relate to in their work. They are intended lo deliver a vibrant. resilient, and agile organisation fully equipped lo deliver our vision and ¢hantable purpose. MAXIMISE IMPACT AND RESULTS DELIVER SUSTAINABLE GROWtH EXLELLENLE IN PRACTICE DEVELOP EFFECTIVE STRATEGIC PARTNF_RSHIPS INSPIRE AND ENGAGE INNOVATION AND CREATIVITY

As we look ahead to 2021122 our Priorities are irffluenced by the necessty to stabilise our posf(ion as we emerge from the pandemic. From 2021122 onwards we wll update on our progress against these six themes as part of this report. RISKS AND UNCERTAINTIES The Dire¢tors have assesseil the major risks to which the company is exposed. in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The principal risks identrfie<l by the TrUstees￿lfectors are". reductions in demand for music and ￿h9O1 support services, caused by recurring Lockdowns stemming from Covi&19 andlor subsequent pandemics mrtwaled by." enabling delivery of all our services through virtual platforms. working closely with customer$ to align delivery to their urcumstances. enabling all colleagues to work from home when required reductions in funding for music in schools through the Arts Council Grant andlor reductions in school funding which will result in reduced ability or willingne$$ lo pU￿hase SFE'S $ervi¢e$ milu8ted by.. expansion of services both in type of service and the geographical reach of delivery. Advocacy of the benefits and Impact of SFE'S services. significant increases in core costs such as rent. utilities. employment costs, cost of musical instruments purchase and repair. mrtig8ted by.. active management of suppliers and monitoring of costs effective ￿$h management to math the SFE bu$ines$ cyde and episodi¢ revenue profile. mitigated by.. Close and frequent cash position monitoring combined with highly proaetive invoice payment management and debt co1￿clI0n. During the financial year 2019r20, application approved for Coronavirus Business IntemJptson Loan Scheme in December 2020. This was drawn down in February 2021 in orderto mitigate against ¢ontinued uncertainty during 2020121. io

FINANCIAL REVIEW AND RESULTS FOR THE YEAR Senerol During 2019120. our Finance team conbnued to embed the improvements and efficiencies that had been put in place the previous year- Monthly management accounts continued to be delivered lo a strict reporting timetable with figures provided to SLT on the 10th working day after each month end. This provides timely inlomiatv)n for decision making. Two budget reforecasts were performed during 2019120 after produthon of December and February actuals. This led to a refining of all budget lines and the abilty to report a more accurate lore¢asl lor Ihe year to the Board. The ongoing un¢ertainlies caused by the Covid-19 pandemic then required reforecasts to be produced on a monthly basis, with key revenue lines monitored weekly. A wee￿Y dashboard system was introduced to Senior Leadership Team meetings, to monrtor key metrics. Cashflow forecast are closely monitored and reported to the Board al each meetsng. There conts'nues to be a strict focus on credit control, and at key points during the year, additional temporary resource has been secured to maintain focus on this area. Debtor balances are reviewed al weekly meetings of the Senior Leadership Team and where appropriate customer facing colleagues are engage(l in assistsng recovery ol drfficull debts. The statement of financial activities shows net income before actuarial gains and losses for the year of £109,05912019.. £750,587). The nel income on unre51ricted fund5 was £80,683 before actuarial gains and losses 12019." £908,067). The prior year Included a one off £932,000 nel income adiuslmenl refleelin9 adiuslmenl for the movements in accounting lor the Local Government Pension Scheme combined with the impad of leaving the Local Government Pension Scheme on 31st Odober 2019 with a £nil liability. Excluding this adjustment then there would have been a net deficit in 2019 on unrestricted funds of £23,933. There was a nel income of £28.376 on restn.cled funds 12019". net expenditure of £1 S7,4801. Reserves 11 is the policy of the Board that cumulative unrestricted fiJnd5 available lo cover operational costs should be maintained at a minimum figure of £1.500.000. In addrtion. cash balances should be maintained al a minimum of £1,000,000 throughout any financial year in order lo ¢over any immediate operational cost$ and to enable the Company to respond to changes in govemment policy and fvnding streams, with an increased balance al 31 August in any year of £1,500,000 to reflect the seasonal nature ol the c¢mpany's eash flow. This reserves policy is reviewed annualty by the Board in order lo ensure Ils adequacy in ￿latIon lo the scale of the Company's operations. Al 31 August 2020 there were unrestricted fvnds carried forward of £1,496,79512019.' £1,416,112). therefore the reserves policy level of available fund5 of £1,500,000 has almost been reached. In 2018. SFE had identified that il needed lo accumulate at least £200k of reserves from surplus each year for the next 3 years and aims to budget accordingly. albeit that it recognises that in the short term. there will be an ongoing impact of recovery from ihe Covid-19 pandemic. The Cash balance at the year ended 31 August 2020 stsn¢Js at £1,399.240 12019.. £1,288,837), an increase on the prior year of £110.403 and it is stsll in excess of the £1 m minimum level set despite the challenges of the last year. li

Going Concern The financial stslemenls have been prepa￿d under the going concem basis. The Directors reviewed and agreed on the budget fr)rthe financial year 2020r21 ￿1¢h indicated that. barring unforeseen circumstances, the charity will continue to be able to meet all obligations as they fall due and will over lime be able to build suitable reserves. The budget is subject to reforecasting quarterty during the year which allows for remedial action to be tsken if deemed required. The Directors have specrfically considere(l the impact of the Covid-19 pandemic on the conts'nuing operations of the charity. Financial projections and cashflow forecasts have been prepared by Senior Leadership Team which have been updated on a weekly basis and reported lo Director5 accordingly. Wni15t il is evident that the Covid-19 pandemic wll conbnue lo have a significant impact on the 2020121 results. il is envisaged that a break-even position will be achieved along with positive albeit reduced cash balances. Future budgets and plans will be set to recoup the impact of Covid-19 pandemic in terms of reserves and cash balance5. The Directors, therefore, have a reasonable expectation that SFE has adequate resources to continue in operational existence for the foreseeable future. STRUCtURE, GOVERNANCE AND MANAGEMENT General Services For Education Iformerty S4E Lwnitedl is a registered charity in England and Wales INO. 11488481 and a company (No. 077398311 limrted by guarantee. It was set up by a Memorandum of Association on 15 August 2011 and is governed by its Memocandum and ￿￿CleS of Association. Services For Education ISFEI is a unique charity that uses the powef of learning and musi¢ to create and build confidence amongst children, young people. adults and Commvnilies. We aim to bring leaming and music to lrfe. The principal objects of the company are.. the advancement of education. particularly through the promotson of high-quality teaching and learning., the advancement of the care, safety and upbringing of children and young people by.. supporting and assisting those in need. their families and carers promots'ng their heallh advancing their education the advancement of the arts and culture, particularty through the promotion an¢J leaching of music. everything we do ig delivered with passion and care. The company Continues lo focu$ on the quality of all $ervi¢es provided and lo seek to expand both the range of services as well as their geographical reach. The Board The Board of Trustee$ is responsible fr)r the overall govemance of Services For Education and meet al least bi-monthty during the year. In the penod since March 2020, until the end of July 2020, they mel almost weekly lo address the ongoing challenges caused by the Covid-19 pandemic. From September 2020, monthly meets'ngs have taken place with additional meetings as required. New trustees are elected and ¢ckopted under the temis of the Articles of As$o¢wtion and followng an open re¢ruilmenl process. 12

New trustees undertake a comprehensive induction Process, %thich indudes meetings with each member of the Senior Leadership Team and folk)w up meetings as required. The Chair of Trustees. Marbn Chty ￿l￿d folkm.ng the fiscal yearnd. at the Board meeting on 29 March 2021. He has been Teplaced by Sarah Smrth. Strategic management Chief Executive Authority to conduct the day-t¢>day activrties of Services For EdL￿allOn is delegated to the Chief Executive. who is responsible for ensuring that the agreed stregy is implemented. and the necessary controls are in place lo govern the organ15akn"on. Martyn Collin, Chief Executive, left the company on 30 September 2019 and was replaced by Sharon Bell on 7 October 2019. The Chief Executsve is supported by the Senior Leadership Team ISLTI which comprises Lindsay Allen (HR Director)." Tracy Carllon (Marketing and Business Development Director)., Stuart Birnie IHead ol Music Service)., Andrew Cooper (Head of School Support Servicel., Sarah Marshall (Head of Shared Servicesl,. Carl Black (Finance Manager) and Chris Silverton (Head of IT). The Senior Leadership Team meets weekty, with addIt￿nal monlhly ses$K•ns focu$$ing on Strategy and long-lerm planning. Remunerution Policyfor Key Personnel The remuneration oflhe Chief Executive is set by the Board of Trusteesloireclors based on advice from market recruitment specialists. The remuneration of senior staff is set by the Chief Executive in consultation wrth the Chair of Trustees and is based on both advice from market recwrtmenl specialists and on industry benchmarks depending on the discipline of the employee. Employees During the second half of 2019r20, our entireworkforce found themselvesworking from home, a$ Covid- 19 forced schools lo cbse. For many colleagues this was a new expenence. and we focussed on ensuring that everyone had a¢¢e$s lo the systems and equipment lo perfom their role. Self- assessment checklists for temporary homeworking were circulated and act￿ned, as nece55ary. Colleague wellbeing ha$ always been ol key importance. vAth fre$h challenges po$ed by Lockdown and operational changes. Technology enabled frequent virtual team meetings acr055 the organisalion, and regular check-ins were encouraged al all levels. A weekly informal Monday video was implemented by the Chief Executive and is now an embedded part of our weekly communications. Together wth the weekly written Communication Iln The Knowl issued on a Wednesday. colleagues have received regular and ¢onsislenl sources of information during an uncertain period. We are grateful lo the members ofthe Staff Forum who have worked closely wth the Senior Leadership Team, meets'ng monthly throughout the academic year. Our annual colleague survey was conducted in Juty 2020, and we were pleased lo see an increase in the response rate to 64.3% compared to 56.2% in 2019. Overall colleague engagement wa5 recorded as 81%167Qk in 20191. An action pban has been developed in order to address any areas which gave cause for concern. 13

Diversity und Inclusion SFE is committed lo encouraging diversty and eliminating discriminati(m in both its role as an employer and as a provider of services. Our aim is that our employees are truly representative of all sections of society and work in an environment where everyone is respected and able to perform lo the best of their ability. Our policy is lo provide equality and faimess for all in our empbymenl and in our provision of services, and not to discriminate on grounds of gender, marital status, race. ethnic origin, nationality, disability, sexual orientation, religion OT age. SFE opposes all forms of unla￿1 and Unfair discrimination. 11 is our policy to provide a suitable environment for people with disabilities. All reasonable facilities wll be provided for employees with disabl1￿e$ to perform their roles wthoul drfficulty OT disadvantage. We wll not lolerale direct or indirect discrimination against any person on grounds of age. disability. genderlgender reassignment, marriagelcivil partnership, pregnancylmatemity, ra¢e, religion or belief, sex or sexual orientabon, whether in the field of recruitment, terms and conditions of employment, career progression, training, transfer or th'smissal. It is also the responsibilty of all employees in Iheic daily a¢ts'on$. de¢isions and behaviour, lo endeavour to promote these concepts, to comply wth all relevanl legislation and to ensure they do not discriminate against colleagues. customers, suppliers or any other person associated wrth the business. In adopting these principles, SFE.. • will not lolerale acts that breach this policy and all such breaches or alleged brea¢he$ will be taken seriously. fully investigated and may be subject to disciplinary action, where appropriate. fully recognises its legal obligations under all relevant legislation and codes of practice. will allow staff to pursue any matter through the internal procedures which they believe has exposed them lo ineqvitable Irealmenl within Ihe scope of this policy. Copies of these procedures are available lo all Staff through the website. 11 ensure that all managers undersland and maintsin their resFonsibilities and those of their team under this policy. will offer opportunities for flexible %￿r￿n9 pattems, wherever operationally feasible, lo help employees lo ¢ombine a career wth their domestic responsibilities. will provide equal opportunity lo all who appty for vacancies through open competition. wll select candidates only on the basis of their abilty to carry out the job. using a clear and open process. will provide all employees with the training and development they need to carry out their job effectively. will provide all reasonable assistance lo emFdoyee5 are or who become disabled, making reasonable adjustments wherever possible lo provide conb.nued employment. We will ensure an appropriate risk assessment is carried out and that appropriate specialist advice is obtained when necessary. will distribute and publ￿lse this policy statement thrOUg￿)Ut the company. 14

STATEMENT OF TRUSTEES, RESPONSIBILITIES The Directors (who are also Trustees of SFE for the purposes of charity lawl are responsible for prepanng the Oirectors, report and the financial 5ts1ement5 in accordance with applicable law and United Kingdom Accounting Stsndards Iunited Kingdom Generally Accepteil A¢¢ounting Praclicel. Company law requires the Directors to prepare financial statements for each financial year. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view ol the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expendtture, of the Charitsble ￿MpanY for that period. In preparing these financial statements, the Directors are required to.. select suitable accounting pclicies and then apply them consistently.. observe the methods and principles in the Charrties SORP., make judgments and accounting estimates that are reasonable and prudent.. slate whether applicable UK Accounting Standards 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 rt is inappropriate lo presume that the charitable company will continue in operation. The Directors are responsiNe lor keeping adequate accounting records that are sufficient lo show and explain the Charitsble ¢ompany's tfansactions and discksse vAth reasonable accuracy al any lime the financial pcisition of the charitable company and enable them to ensure that the financial staternents comply 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 ind detection of fraud and other irregularitie8. The Directors are responsible for the maintenance and integrity of the corpc*rale and financial information included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and dissemination ol financial stslemenls may drffer from legislation in tslher jurisdictions. 15

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Dls¢losur• ol Inf¢rniatlon to audlto Each of the persons who are Trustees at the time when thi5 Trustee5' report is approved ha5 confirmed Ihal.. so far as that Trustee is aware, there is no relevant audrt infomats.on 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 relevant audrt infofmalion and to estsblish that the charivs auditors are awa￿ of that infomiation. Auditors The auditors, MHA Maclntyre Hu(Json. have indicated their wllingness to continue in office. The designated Trustees will propose a motion reappoinling the auditors al a meetsng of the Tru$lee$. Approved by order of the members of the board of Trustees and signed on their behalf by.. Sarah Smlth Trustee Dale.. 24 May 2021 Page 16

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) Oplnlon We have 8udrf(ed the fin8nci81 statements of Services For Edu¢ab"on Limited (Formedy S4E Limiledl Ilhe 'charitsble company'l for the year ended 31 August 2020 whi¢h comprise the Statement of financial activities. the Balance sheet. the Statement of cash flows and the ￿lated notes. including a summary of significant accounting policies. The finan￿al reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporb'ng Standard applicable in the UK and Republic of Ireland. Iuniled Kingdom Generally Accepted A¢¢ounting Praclicel. In our opinion the financial statements.. give a true and fair view of the Slate of the charilable companls affairs as at 31 August 2020 and of ils incomin9 resources and application of resources. including ils income and expenditure for the year then ended, have been property prepared in accordan￿ vAth United Kingdom Generally Accepted Accounting Practice". and have been prepared in accordance with the requirements of the Companies Act 2006. Ba$1• for oplnlon We conducted our audit in accordance wth Intemational Standards on Auditin9 {UKI IISAS IUKII and applicable law. Our respon5ibililie5 under those Standards are further descnbed in the Auditors, re5ponsibililie5 for the audit of the financial slalemenls secbon of our report. We are independent of the charitable company in accordance with the ethical requirements that a￿ relevant lo our audit of the financial stslemenls in the United Kingdom. including the Financial Reporting Council'$ Elhi¢al Standard. and we have fulfilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons rela￿ng to golng c¢ncem We have nothing lo report in respect of the follow.ng matters in relation lo which the ISAS IUKI require us lo port lo you whe￿". the Trustees, use of the going concem basis of accounting in the preparation of the financial statements is not appropriate". or the Trustees have not disclosed in the financial statements any identsfied material uncertainties that May cast significant doubl about the Chantable company's abilrty to ￿n￿rn￿e lo adopt the going concern basis of accounting for a period of at least Iwelve months from the date %then the financial statements are authori5ed for issue. Page 17

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) {CONTINUEDI Other Infomiatlon The Trustees are responsible for the other infomiation. The other infomi8b.on comprises the infomalion included in the Annual ￿POrt. other than the financial statements and our Auditors, report Ihereon. Our opinion on the financial stemenl$ ¢Joes not cover the other informab'on and. except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In Connection wlh our audit of the financial slatemenls. our responsibility is to read the other infomiation and, in doing so, consider whether the other information is materially inconsistent the financial statements or our knovAedge obtained in the audit or othermse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to deterniine whether there is a material misslalemenl In the financial 5talemenls or a material misslalemenl of the other information. If. based on the work we have performed, ￿ conclude that there Is a malenal misslatemenl of this other Inftsmation, we are required to report that fact. We have nothing to report in this regard. Oplnlon on othgr mattgrs pr•s¢rlb•d by thg Companie$ 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 finanaal year for which the financial statements are prepared is consislenl wlh the financial slemenls. the Trustees, report has been prepared in accordance with applicable legal requirements. Matt•r8 on vthlch ￿ ar• r•quir•d to rnport by •xc•ption In the light ol our knowledge and understanding of the charrtable company and its environment obtained in the course of the audrt, we have not identified material misstatements in the Tru$tee$' report. We have nothing to report in respect of the followng matters in relation lo 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 audrt have not been received from branches not visrted by u5.. or the financial statements are not in agreement the accounting records and retum$,' or certain disclosure5 of Trustees. remuneration specified by law are not made", or we have not received all the infomiatson 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 advantsge of the small Companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strategic report. Page 18

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) {CONTINUEDI Rg$pon$lbilitio$ of tru$ts&s As explained more fully in the Trustees. responsibilrties stslement, the Trustees (who are also the directors of the ¢haritsble company for the purposes of company lawl are responsible for the preparation of the financial ststements and for being satisfied that they give a true and fair wew. and for such intemal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstalemenl, whether due to fraud or error. In preparing the financial stslements, the Trustees are responsible for assessing the charitsble ¢ompany's ability to conts'nue as a going concern, disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless the Truslees either intend to liquidate the charitable company or to cease operations, or have no realistic altemats.ve but to do 80. Audllors. re$pon$lblllOe$ for tho audrt of Ihg financial ststsments Our objectives are to obtain reasonable assurance about vthether the financial slalemenls as a whole are free from material misstslement. vthelher due lo fraud or error, and lo issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, bLrt is not a guarantee that an audit conducted in accordance wth ISAS IUKI wll a￿ayS detect a material misstatement vthen it exists. Misstatements can arise from fraud or error and are considered material if. individually or in the aggre9ate, they could reasonably be expected lo Influence the economic decisions of users taken on the basis of these financial slalemenls. A further description of our re$pon$ibilitie$ for the audit of the financial statements 1$ located on the Financial Reporb'n9 Council's websile at.. www.frc.o .uklauditorsres onsibil¢ts'e This description forms part of our Auditors, report. Us• of our r•port This report is made solely lo the charitable company's members. as a body, in aC￿rdance wth Chapter 3 of Part 18 of the Companies Act 2006. Our audrt work has been undertaken so that we might slate to the charitable company's members those matters we are required to state to them in an Auditors, report and for no other purpose. To the fullest extent perniitted 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, lor this report, or for the opinions we have formed. Helen Blundell LLB FCA FCIE DChA IS¢nlor Statutory Audllorl MHA Ma¢lntyro Hud$on Chartered Accountants Statutory Auditors Birmingham, United Kingdom 26 May 2021 Page 19

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} STATEMENT OF FINANCIAL ACTIVITIES {IMCORPORATING INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 AUGUST 2020 R￿trictsd Unrnstrictsd funds funds 2020 2020 Total funds 2020 Total runds 2019 Note Income from: Donations and legacies Charitable aclivibes 2,170,952 20,095 4,739.560 2.191,047 4.739,560 2, 146,291 5,335, 799 Total Incom• Exp•ndlture on: Charitable a¢tiwbes 2,170,952 4,7S9.655 6,930,607 7,482.090 2,142,576 4,678,972 6,821,548 6, 731,503 Tolal gxpgndlturg 2,142.576 4,678.972 6.821,548 6, 731,503 Not movemont In funds boforn other recognisod gainslllossesl Other r•cognls¢d gainsllloss•$): Actuarial lo$se$ on defined benefft pension scheme$ 28,376 80.683 109,059 750,587 19 (342,000) Not movoment Sn funds Roconciliation of funds: Telal funds brought forward Nel movement in funds 28.376 80.683 109,059 408,587 211.597 28,376 1,416.112 80.683 1.627,709 109,059 1,219, 122 408.587 Total funds carrfed forward 239.973 1,496.795 1.736,768 1,627, 709 The Statement of financial adivilies inclL4des all gains and losses recognised in the year. All income and expenditure ¢Jerive from continuing aclivilies. The notes on pages 23 to 42 fomi part of these financial stalements. Page 20

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limited by guarantsel REGISTERED NUMBER: 07739831 BALANCE SHEET AS AT 31 AUGUST 2020 2020 2019 Mole Flx•d assèts Tangible assets Currnnt assets 10 781,660 1,043,448 Debtors Cash al bank and in hand 522,546 1,399,240 677. 156 1,288,837 1.921,786 1,965.993 Creditors.. amounts falling due wlhin one year 12 1966,6781 (1,381,732) Net currnnt a88Ots 955,108 584,261 Totsl assets l•ss current Ilabllltles 1,736,768 1,627, 709 Total not assots 1.736,768 1,627, 709 Charlty funds Reslricled funds Unreslri¢ted funds 13 13 239,973 1,496,795 211,597 1,416,112 Total fundy 1.736,768 1,627, 709 The Trustees acknovledge their responsibilrties for complwng wth the requirements of the Act with respect lo accounting records and preparation of financial stslements. The financial statements have been prepared in accordance vAlh the provisions applicable to entities subject to the small companies regime. The financial ylalemenls were approved and authorised for issue by the Trustees and signed on their behalf by.. Sarah Smith (Chair of Trustees) Date.. 24 May 2021 The notes on pages 23 to 42 form part of these financial statements. Page 21

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 Cash flow4 from oporating a¢tlvities Net cash used in operating activities 216.843 (217,694) Ca$h flo￿ from Invg$lng actlvlllos Purchase oftsngible fixed assets 1106.440} (49,8811 Not cash usod In Invostlng ac15¥ltl 1106,440> 49.8811 Cash IlovA from financin9 actlvltbos Repayments of borrowng f237.331) Not cash provlded byllus•d Inl financSng activltlas 1237,3311 Change In cash and ¢•8h ¢qulvaknts In the year Cash and cash equivalents at the beginning of the year 110,403 1S04.9061 1, 793, 743 1.288,837 Cash and cash •quival•nts at t￿ •nd of th• y￿r 1,399,240 1,288.837 The notes on pages 23 to 42 fom part of these financial stslements Page 22

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 General infornbation Services For Education Limited Ifomiedy S4E Limiledl is a charitable company limited by guarantee and registered and domiciled in England. The address of the registered office is Unit 3, Holt Court, Holt Street, Bimiingham Science Park, Aston, Binningham, B7 4AX. The financial 51alemenls are prepared in sleding. which is the funth.onal and presentational currency of the Charity. Monetsry amounts in these financial stslements are rounde(I lo the nearest £. Accountlng pollcles 2.1 Going ¢on¢em The financial statements have been prepared on a going concem basis. The Directors have considered relevant infomalion. induding the annu81 budget, forecast future cash flows and thè impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant impacl on the company's operations, Delivery of services ha$ been adapted lo lake a¢¢ounl of the shuldovm bul il is recognised that there wll be an impact on invoiced services and also fundraising income. Steps are being taken to reduce costs and rinances are being closely monitored. In response to the COVIO-19 pandemic, the Directors have performed a robu51 analysis of forecast future Cash flows taking into ae¢ounl the potential impact on the business of possible future scenanos ansing from the impact of COVID-19. This analysis also considers the effeth'veness of available measures lo assist in mrtigaling the impact. Based on these assessments and hawng regard to the resources available to the entity, the Oirectors have concluded that there is no material uncertainty and that they can continue to adopt the going concem basis In prepanng the annual report and accounts. 2.2 8asl$ of preparatlon of financlal ststements The financial statements have been prepared in accordance wth the Charities SORP IFRS 1021 Accounting and Reporting by Chanties.. Stalement of Recommended Practice applicable lo charities preparing their accoun15 in accordance wilh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. Ihe Finanual Reportsng Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Services For Education Limited {forn￿rIY S4E Limited) meets the definition of a public benefit entty under FRS 102. Assets and liabililies are inibally recognised at historical cost or Iransath'on value unless olher%*ise Staled in the relevant accounb.ng policy. 2.3 Company Ststu$ The company is a company limrted by guarantee. The members of the company are the Directors named on page 1. In the event of the company being wound up, the liability in respect of the guarantee 15 limited to £1 per member. Page 23

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.4 Fund accounting General funds are unrestricte(I lunds ￿1¢h are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and vthi¢h have not been designated for other purposes. Restricted fvnd5 are fvnds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for parbcular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each reslricled fvnd is sel out in the noles lo the financial slalements. 2.5 Incom All income is recognised once the Company has enlrtlement to the income, it is probable that the income wll be received and the amount of income receivable can be measured reliably. Income for servi￿8 1$ re￿nised in the Statement of Financial Aclivilie$ on a receivable basis on completion of the service. Grants are included In the Slalemenl of Finanual Activrties on a receivable basis. The balance of income received for specific purposes bui not expended during the period is shown in the relevant funds on the 8alan¢e Sheet. Where in¢ome is received in advance ol enlillemenl of re¢eipt, its rewgnition 1$ deferred and included in creditors as deferred in￿me. Where entf(lement occurs before income is received, the income is accrued. 2.6 Exwndlture Expenditure is re¢ognised on¢e there is a legal or ¢onslruclive obligation lo transfer e¢onomi¢ benefit to a third paty, rt is probable thal 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 the total of direct costs and shared c051s. including support costs involved in undertaking each aclivty. Direct Costs attributable lo a single activty are allocated directty lo that adivty. sha￿ costs which contribute lo more than one activity and $upport costs which are not attributsble to a single a¢tivrty are apportioned tse￿en those activities on a basis consistent wth the split of income. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the po￿.On of the asset's use. Expenditure on charitsble activrties is incurred on d1￿ctlY undertaking the activrties which further the Company's objectives. as well as any associaleil support costs. 2.7 Tangible fixod assots and depreciation Tangible fixed assets c05ting £1,000 or more are capilalised and recognised when future economic benefits a￿ probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are inib'ally 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. Page 24

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.7 Tangible fixed assets and depreciation {continued Depreuatson is Charged so as to all(xate the Cost of tsngible fixed assets less their residual value over their eslimaled useful lives on the foll0v￿n9 bases.. . Short-lem leasehold property Fixtures and fittings Computer equipment Music instruments Over the lem of the lease 25% on a Straight line basis 33.3% on a straight line basis lo￿13.3% on a Straight line basis 2.8 Oporatlng lè•$o$ Rentals paid untler operabng leases are charged to the Statement of financial activrties on a slraighl line basis over the lease lem). 8enefils received and receivable as an incentsve to sign an operating lease are recognised on slraighl line basis over the lease lem. unless another systematic basis is rèpresenlalive of the time pattern of the lessee's beneffit from the use of the leased asset. 2.9 Interest rKolvable Interest on fvnds hdd on deposit is included when receivable and the amount can be measured reliably by the Company., this is nomally upon notifi¢ats"on of the inlere$l paid or payable by the institution wth whom the funds are deposrted. 2.10 Debtor¥ Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaKI net of any trade discounts due. 2.11 Ca•h at bank and In hand Cash at bank and in hand indudes cash and short-temi highly liquid investments wth a short maturity of three months or less from the date ol acquisition or opening of the deposrt or similar account. 2.12 Liabilities and provisions Liabilities are recognised vthen there is an obligation at the Balance sheet date as a result of a past event, rt is probable that a transfer of economic benefil wll be required in settlement, and the amount of the sethement can be e5tsmated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material. the provision 15 based on the present value of those amounts. discounted at the pre-tsx di$￿￿nI rale that ￿lleCt$ the risks specific lo the liabilty- The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. Page 25

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 A¢¢ountlng poll¢l•$ l¢ontlnu•d} 2.13 Financial instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Ba$1¢ finanual instrtjments are initially recognised al transaction value and subsequently measured at their settlement value with the excepts'on of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.14 Pènslons The Company operates a define(I contribution pension scheme and the pension charge represents the amount$ payable by the Company to the fund in respecl of the year. Crltlcal a¢countlng •8tlmat•• and ar•as of ludgom•nt Eslimales and judgements are ￿ntInUalty evaluated and are based on hi$tori¢al experien¢e and other factors, induding expedations of future events that are believed lo be reasonable under the circumstances. Critical accounting eglimales and a$$umplions'. The key assumptions concerning the fLrture an(1 other key sources of estimation uncertainty al the reporting date that have a significant risk of cau$ing a material adjustment to the Carrying amgunts of assets and liabilities within the ne￿ financial year indude depreciation rates for tangible fixed assets and their residual values. Key estimates and judgements in relabon lo the financial statements include., - Allocabon of support costs Cost of instruments originally transferred to the charity in 2013 which were recogni5ed at an estimate of the replacement cost of the instruments a5 adiusled lo rellect age and conditson. Income from donatlon$ and gr4nts Restricted Unrestricted funds funds 2020 2020 Total funds 2020 Donations Arts Council England SACRE 143,385 2,027,567 20,095 163.480 2.027.567 Total 2020 2,170,952 20,095 2,191,047 Page 26

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Income from donations and grants (continued) There are no unfuffilled condrtions or other contingencies attat*ing lo grants recognised in income in the year from government bodies. Reslncted UnK8slncled funds funds 2019 2019 Total funds 2019 Donations Arts Council England SACRE 79,870 2.024. 700 21,470 20,251 100, 121 2.024. 700 21,470 Tol812079 2. 126,040 20,251 2, 146,291 Incomè from charftsbl• a¢tlvltl•s Unr•strlctod funds 2020 Total funds 2020 Mu¥1¢ School support Other 3,371,890 1,150,800 216,870 3,371,890 1,150,800 216.870 Total 2020 4.739,560 4,739,560 Induded within Other is income of £210,960 ctaimed under the Govemment's Coronavirus Job Retention S¢heme ICJRSI. Unrestncted funds 2019 Total funds 2019 Music 3, 714,914 1,617,685 3,200 3, 714,914 1,617,685 3,200 School support Other Total 2019 5,335, 799 5,335, 799 Page 27

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analysis of expenditure by activities Activiti•$ undertaken directly 2020 Support costs 2020 Total funds 2020 Music School support Other 4,522,620 711,860 1.369,012 212,263 5,793 5,891,632 924,123 5.793 Total 2020 5,234,480 1.587,068 6,821,548 Activrtles und8rtaken d1￿CtlY 2019 Support costs 2019 Total funds 2019 Music School support 4.862. 114 1,071, 109 675.653 122,627 5,537.767 1, 193, 736 Total 2019 5.933.223 798,380 6, 731,503 Page 28

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analysis of expenditure by activities Icontinuedl Analy$l$ of dlr•ct costs School support 2020 Total fund5 2020 Music 2020 Staff costs Depreciation Music resources Perfomiance co$1$ Venue hire Project costs Travel & subsistence Training Con5ullan¢y Professional fees 3,811,991 327,978 49,873 152,503 61,169 596,211 4.408,202 327,978 49,873 152,503 61,838 35,034 53,835 36,351 108,716 150 669 35.034 53,174 36,351 29.431 150 79,285 4,522.620 711,860 S.234,480 School support 2019 Tol81 funds 2019 Mus 2019 Pension cost Staff costs Depreciats'on Music resources Perfomance costs Venue hire 13,200 4.003.451 317, 774 71,457 176. 719 133, 155 21 1,800 806. 198 15,000 4,809,649 317, 774 71,457 176, 719 140,272 43,234 95,693 42,468 220,958 7,117 43,213 22,662 Project costs Travel and subsistence Training Consultancy 73,037 42.468 30,838 190, 120 4.862,114 1.071, f 10 5.933,224 Page 29

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analysis of expenditure by activities Icontinuedl Analys1$ of supp¢rt costs School support 2020 Total fund5 2020 Muslc 2020 Other 2020 Staff costs Depreciation Project costs Bad debt expense Travel & subsislente Training Se¢onded $taff Office costs Premises costs Insurance Marketing and publi¢ty Professional fees Bank Charges Irrecoverable VAT Governance costs 834,424 35.423 101,032 34,672 2,902 21.706 2,981 55,448 94,487 17,499 39,350 44,336 2,B4B 74,612 7,292 113,785 4.830 13,777 4,728 396 2.960 407 948,209 40,253 114,809 39,400 3,298 24,666 3,388 87,152 107,371 19,885 44,716 51,746 9,029 84,786 8,360 31,704 12.884 2.386 5,366 7,410 388 10,174 1,068 5,793 Total 2020 1.369.012 212.263 5.793 1.587,068 Page 30

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analysis of expenditure by activities Icontinuedl Analys1$ of supp¢rt costs Icontlnu•d) School support 2019 Total funds 2019 Mus 2019 Staff costs Depreciation Travel and subsistence Training Seconded staff 179, 134 39,283 3.697 41,981 2,241 24,427 5,356 504 5, 725 306 203,561 44,639 4,201 47,706 2,547 t iii Office costs Premises costs Insurance Marketing ind publicity Professional feeg Bank charges Irrecoverable VAT 71.562 136.425 16,328 70,872 68.467 8,313 29.520 7,830 42,880 15,975 2,226 9,664 9.336 1, 134 4.026 7,068 714,442 152,400 18,554 80,536 77,803 9,447 33,546 8,898 Govemance costs Total 2019 675.653 122.627 798,280 2019 stsff cos1$ include a one off uedit in respect of wthdrabrdl from the Local Govemment Pen8ion Scheme of £1,084,000. This reflects the difference befv￿n the valuation calculated in accordance with the requirements ol FRS102 at 31 August 2019 compared to the liability due on wthdrawal calculated on exil of this scheme. Audltors. r•muneratlon The auditors, remuneration amounts to an auditor fee of £10,50012019- £8,898). Staff costs 2020 2019 Wages and Salaries Social security costs Employerfs pension contributions Nel income on exrt of defined benefit pension scheme 4.53S.650 3S9,965 460,796 4,834.984 419,501 778, 726 (1,020,000) 5.3S6,411 5,013,211 Page 31

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Staff costs (continued} The average number of persons employed by the Company during the year was as follows.. 2020 No. 2019 No. Musi¢ School support Administration Fundraising 227 211 96 10 18 18 257 247 The number of employees vthose employee beneffts {excluding employer pension costs) exceeded £60,000 wa5.. 2020 No. 2019 No. In the band £60.001- £70,000 In the band £70.001- £80.000 In the band £80,001- £90,000 In the band £110,001- £120,000 Thè total ernployee benefft$ received by key management petsonnel in the year wiy £628,410 12019.. £611,047). Tru8t88s' r8munèratlon and 8xp8ns During the year, no Trustees received any remuneration or other benefrts12019- none). During the year ended 31 August 2020, no Trustee expenses have been incurred (2019- none). Page 32

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 10. Tangible fixed assets Short-t•mi leasehold Fixtures and property fitting5 Computer Musical equipment instruments Total Cost or valuation Al 1 September 2019 Additions 93.4106 120,432 4,407 93.919 3,109.799 102.033 3.417,556 106,440 Al 31 August 2020 93,406 124,839 93.919 3,211,832 3,523,996 Dgprecialion At 1 September 2019 Charge for the year 68.4100 25.006 8S,000 15,246 93,919 2,126,789 327,976 2,374,108 368,228 Al 31 August 2020 93,406 100,246 93,919 2,454,765 2,742,336 Not book value At 31 August 2020 24,593 757,067 781,660 Al 31 August 2019 25.c￿6 35,432 983,010 1,043,448 11. D•btors 2020 2019 Due within one year Trade debtors Other debtors Prepayments and accrued income 433.125 68,651 20.770 493.638 13,000 170,518 S22,546 677. 156 Page 33

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 12. Creditors: Amounts falling due within one year 2020 2019 Trade credrtors Other tsxaty'on and social security Other creditors A¢cnJals and deferred income 44.131 133,498 5,022 191,679 1,051,533 147,446 775.101 966,678 1,381, 732 2020 2019 Deferred income at 1 September 2019 Resources deferyeil during the year Amounts released from previous periods 935.634 834, 786 871,954 870,235 11,089,0971 f769,387) 718.491 935,634 Deferred income relates to income received in advance of service delivery. Page 34

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 13. Statement of funds ststem•nt of fund$ - current year Balance at 1 September 2019 Balance at 31 August 2020 Income Expendlturo Unrg$tri¢l8d funds General Funds 1,416.112 4,759.6SS 14,678.9721 1,496,795 R•8trlct•d funds Arts Council England SACRE Other 166.825 S.480 39.292 2,027,567 12,027,567 166,825 5.480 67.668 143.385 {115.0091 211,597 2,170,952 12,142,S76 239,973 Total ol lund* 1,627.709 6,930.607 16,821,548) 1,736,768 Page 35

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 13. Statement of funds Icontinuedl ststem•nt of fund$ - prlor yoar Balance af I September 2018 Balance at 31 August 2019 Gains/ (Lossesj InCOff￿ Exp&ndrtu Unrg$tri¢l8d funds General Funds Pension reserve 1.440.045 1590,000) 5.356.0&1 (5,379.983) 932,000 1,416, 112 (342,000? 850.045 5,356,050 14,447,983 (342,000) 1,476,172 R•strict8d funds Arts Council England SACRE ACE Match Other 166,825 27,897 84,300 90,055 2.024.700 (2,024. 7001 21,470 (43,887) (84,300) (130,6331 166.825 5,480 79,870 39,292 369.077 2,126,040 12,283,5201 21 1,597 Totsl ¢f funds 1.279, 122 7.462.090 (6, 731.5031 (342.000? 1,627. 709 Arts Council England fund ig core grant funding to support delivery of the music service. SACRE is funding to support delivery of statutory religious education duties and school support on matters relats'n9 to religious education. ACE Mal¢h is funding for delivery of the Catslyst." Evolve project. Other reslricled fvnds are an aggregate of smaller donations for specific aspects of our setvices. Page 36

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 14. Analysis of net assets between funds Analys1$ of n•t assets b•twn fund$- curr•nt p•rlod Restricted Unrestricted funds funds 2020 2020 Total funds 2020 Tangible fixed a$sel$ Current assets Creditors due wrthin one year 781,660 1.681,813 1966,67BI 781,660 1,921,786 1966.6781 239,973 Total 239,973 1,49S,795 1,736,768 Analysls of n•t a**èts fund¥- prlor porlod Restiycted Unrest17Ct8d funds funds 2019 2019 Total funds 2019 Tangible fixed assets Current assets Creditors due wthin one year 1.043,44B 1,043,448 1,754,397 1,965,994 11,381,7331 (1,381, 7331 211,597 Totsl 211,597 1,416,112 7,627, 709 15. Rg¢on¢lllallon of net movement In fvnd$ to ne¢ ¢a$h flow from opgrallng actlvlllg$ 2020 2019 Net income for the period las per Statement of Finarrial Activib'esl 109,059 750,587 Adjustments lor- Dep￿Cia￿.0n charges Decrease in debtors 368,228 154,610 1415.054} 441. 760 56,326 (455.023) f932.000) Decrease in creditors FRS 102 Pension adjustments Net cash provided byllused inl operating activities 216,843 (138,350) Page 37

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 16. Analysis of cash and cash equivalents 2020 2019 Cash in hand 1.399.240 1,288,837 Totsl cash and cash oquivalènts 1,399,240 1,288,837 17. Analysis of chang88 in nat debt At1 Septombor A131 2019 Cash flo￿ Augu812020 Cash al bank and in hand 1,288.837 110.403 1,399,240 1,288.837 110,403 1,399,240 Rglatsd party tran$a¢tlon$ There were no related party transacb'ons during the year.12019.' none) 19. Pension commitments The Company operates a defined ￿ntribUtIon pension scheme. The a$set$ of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represen15 contributsons payable by the company to the fund and amounted lo £333,18212019.' £52,315) The Company has previously participated in the followng defined benefit pension schemes prior lo ¢easing to participate in both schemes on 31 October 2019.. T￿cherS. Ponsion Schomg Introdu¢tion The Teachers. Pension Scheme ITPS) is a statutory. unfunded, defined benefit occupational scheme, govemed by the Teachers. Pension Scheme Regulations 2014. These regulations apply to teachers in schools and other educatsonal establishments. Membership is automatic for full-time teachers from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract. Teachers are able lo opt out of the TPS. Atthough members may be employed by various bodies. their retirement and other pension benefits a set out in regulations made under the Superannuation Act119721 and Public Setvice Pensions Act120131 and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a 'pay as you go, basis- contributions from members, along with those made by employers are credf(ed to the Exchequer. Retirement under arrangements governed by the above Acts. Page 38

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 19. Pension commitments (continued) The Teachers, Pen$ion$ Regulation$ require an annual a¢￿unt. the Teachers, Pension Budgets'ng and Valuation Account, to be kept of receipts and expenditure {including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rale of return, which is equivalent lo assuming that the balance in the Account is invested in nob.onal Investments that produced that real rale of return. Valuation of T8ach&rs' Pension SC￿m• The latest valuation of the Teachers, Pension Scheme has r￿1 taken place. in line with directions issued by HM Treasury and using membership data as at 31 March 2016. As a re5uII of this valuation TPS employer5 will pay an increased contribub.on rale of 23.68% from September 2019 (this includes an administration levy of 0.8%). The b.ming of the implementation is to align ils Introduction wlh employers, budget planning cycles. Untsl then, employers pay Ihe current rale of 16.48%. The employerf$ pensi¢)n costs paid to TPS in the period amounted to £132,735 {2019- £535,113). A Copy of the valuation report and supporting documentation is on the Teachers, Pensions wèbsite lwvrn.teacherspen8ions.c0.u￿newsIemPIoyersI2019I04IteacherS-pensiOns-va1UatiOn-report.aspXI. Sch8me chang8s The arrangements for a reformed Teachers. Pension Scheme, in line with the recommendations made by Lord Hutton, in parts'cular the introduth'on of a Career Average Revalue Earnings ICAREI scheme, were implemented from 1 April 2015. In December 2018, the Court of Appeal held that transrtional protection provisions contained in the reformed judicial and firefighter pension schemes. introduced as part of public service pension reforms in 2015, gave rise to direci age discrimination and were therefore unlawful. The Supreme Court, in decision made in June 2019, have rejected the Government's application for permission to appeal the Court of Appeal's ruling. The Case wll now be referred lo an Employment Tribunal for a decision regarding the remedy which wll need to be offered lo those membern of the ts¥o schemes bvho we subject to the age discrimination. HM Treasury are clear that the ruling has implications for Ihe other public service schemes, including the Teachers. Pension Scheme. Those implicalions are currently being considered and any impact on the Scheme cost5 15 expected to be looked at vthhin the next scheme valuab"on, which 13 currently scheduled lo be based on April 2020 dale and implemented in April 2023. Local Govemm8nt Panslon Schame The LGPS is a funded defined benefft scheme, WTth a5set5 held in separate truslee-admini5tered fvnds. The total contribution made for the year ended 31 August 2020 was £20.83212019.. £149,396), of which employees contributions tolale(1 £15.552 12019." £110.9931 and empbyees, contributions lotaled £5.280 12019 £38,402). On 31 October 2019 the charity ceased to participale in both the Local Government Pension Scheme and the Teachers, Pension Scheme. Page 39

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 19. Pension commitments Icontinuedl Principal actuarial assumptions at the Balance sheet dale (expressed as weighted averages).. At 31 At 39 August August 2020 2019 Discount rale Future salary increases Future pension increases NIA 1.85 3.75 NIA NIA 2.25 At 31 At 37 August August 2020 2019 Y*ars Y8ars Mortality rates lin years) for a male aged 65 now - at 65 for a male aged 45 now - for a lemale aged 65 now - It 65 for a female aged 45 now NIA NIA NIA 20.9 22,6 NIA 25.1 The Company's share of the assets in the scheme was.. At 31 At 37 August Augu¥t 2020 2019 Equities Gilts Other bonds Propety Cash and other liquid asset$ Other 3,404,000 536,000 214,000 462.000 204,000 841,000 Totsl falr valu• of assets 5,661.000 The actual retum on s¢heme assets was £Nil (2019- £394.CXXI). Page 40

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 19. Pension commitments Icontinuedl The amounts recognised in the Stslement of finanual aCtiV￿e$ are as follows.. 2020 2019 Current seNice cost Past Service ¢o$l Interest cost Setdemenl on exit from Scheme f168.000) (64,OQO) (15,0001 1,084.000 Totsl amount re¢ogni$gd in thg Statsment of finan¢l•l •¢llvlllo¥ 837,900 Movements in the present value of the defined benefil obligation were as follows.. Movements in the fair value of the Company's share of scheme assets were as follows.. 2020 Actuarial gains Settlement on exit from Scheme Contributions by employer Return on assets less interest Contributions by employer in¢lLKling unlunded Contributions by scheme participants Conlnbutions by scheme participants Contributions by scheme participants Page 41

SERVICES FOR EDUCATION LIMITED (FORMERLY S4E LIMITED) IA company limitsd by guarants•} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Amounts for the current and previous period are as follows.. 2020 2019 Defined benefft pension scheme Defined benefit obligation Scheme assets Dollclt Experience •dju51ments on scheme liabilities Experience adjustments on scheme assets 548,000 (206.000) 20. Opgrating lease ¢<)mmltsnents At 31 August 2020 the Company had commitments to make frJture minimum lease payments under non- cancellable operating leages as follows.. 2020 2019 Not later than l year Later than 1 year and not later than S years 65,000 130,000 41,250 195,000 41,250 Page 42