2021-08-31-accounts

Company number: 07739831 Charity number : 1148848

TRUSTEES REPORT

AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) CONTENTS Page Reference and administrative details of the Company. its Trustees and advisers Trustees. report 2-15 Independent auditor's report on the financial statements 16-19 Statement of flnanclal actlvltles 20 Balance sheet 21 ststement of cash flows 22 Notes to the financial statements 23-37

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 Trustees S8rah Smith, Chair Selwyn Calvin Martin Chitty (resigned 31 August 20211 Matthew Clemenls-wheeler (resigned 31 August 20211 Laura Williams Philip Davies lappoinled 1 September 20201 David Bolton (appointed 1 September 20201 Paul Stone lappoinled 1 September 20201 Joanna Cooney lappoinled 24 May 20211 Parmjit Singh lappointed 24 May 20211 Company registered number 07739831 Charity registered number 1148848 Registered office Unit 3, Holt Court Holt Street Birmingh8m B7 4AX Company secretary David Alcock Chief executive officer Sharon Bell Independent auditor Cooper Parry Group Limited Chartered Accountants Slatulory Auditor Sky View Argosy Road East Midlands Airport Casue Doninglon Derby DE74 2SA Page 1

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 WHY WE EXIST Our Vision and Mission Setviees for Education is a unique charity that uses the power of leaming and of music to transform and enh8nce the lives of ehildren, young people, adults, 8nd our wider Communities. We bring learning and lo life. Our work encompasses a broad mnge of settings, including". Teaching pupils learning vocal and traditional instruments to build technical and performance skills alongside confidence and creativity, and encourage pursuit of music-based careers Teaching non-traditional instruments andlor musical styles to raise the profile of these approaches and encourage the expansion and diversification of musical experiences Specialist work with SENDldisadvantaged groups- to increase engagement and attainment Specialist work with Early Year settings- lo promote a positive start to life and leaming Our Music School - to support lifelong learning and encourage the love of music amongst young people and adults Working with adults- lo promote wellbeing and positive mental health in later life Bespoke consultancy, advi￿ and professional development programmes enabling school leaders, educators and governors to raise allainment levels, and develop and implement initiatives that improve health, wellbeing, stsndards and outcomes to ensure all children and young people realise their full potential academically, physically and emotionally. To enable schools, wider educational settings, and those organisations working with children and young people to develop safeguarding policy and practice that ensures the needs of all a￿ recognised and met efficienuy and effectively. Support, guidance, and development activities to those in the earliest stages of their teaching career in order to enable them to become highly skilled, leading edge practitioners. Our Values Our values are extremely important lo us as these underpin our vision and mission.. VALUE FOR MONEY SECURE EDVCATION PHILQ%)PHY l¢r hrt•¥pity 8ENEFmNG ¢XJR CUSTOMERS PASSION ¢Jo 151or th• Everythin9 we do li th passK*r4 c•r• kJ•T> Page 2

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 CHAIR'S INTRODUCTION Welcome to our 2020121 Annual Report and Accounts. An incredible year in which, despite all the pressures, we achieved remarkable outcomes lo benefit the young people and citizens of Birmingham. We have transformed ourselves lo deliver our ServI￿S and our support in a virtual environment. And whilst the pandemic has tested us, it has also brought out the very best. As an organisation, we have become more responsive. As a team, we have become more agile - and as partners to our customers, schools and the community, we have become more engaged. 11 is, of course, always encouraging lo witness success - especially when achieved in difficult times. We take pride in the fact that our successes have been endorsed independently. In recent months, we have been honoured to re￿1ve several significant award wins, regionally and nationally including the Music and Drama Education Award for Outstanding Music Education Resource and the Greater Birmingham Chambers of Commerce Award for Excellence in Education and Training. The challenges posed by Covid-19 continue to shape our day-to-day operations. However, we are building on our learnings Sin￿ March 2020 and planning for future growth, extending our reach and continuing to bring music and learning lo life. None of this would have been achievable without the enthusiasm and continuing commitment of our staff, Iruslees, stakeholders and, of course, our donors and funders including Arts Council England. We were fortunate to receive I￿0 grants from the Cultural Recovery Fund which have been pivotal in stsbilising our operations in lurbulenl times. We will never be able lo express sufficient gratitude for those who have supported us- and continue to do so- in a myriad of ways. Sarah Smith Chair of Trustees Page 3

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 TRUSTEES REPORT The Trustees and Directors of Services For Education Limited present their annual and strategic report and audited financial statements for the year ended 31 August 2021. The company trades under the name Services For Education ISFEI and will be referred lo 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 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts and in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland. sin￿ the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Reportl Regulations 2013 is not required. Our Approach to Safeguarding All staff undertake annual safeguarding refresher training. This alternates be￿een fa￿ to face, and the SFE online training course. All Music Staff now receive mid-year face lo facelonline update training lo help keep safeguarding measures live. All new staff are required to undertake the online course before commencing delivery for SFE. The SFE lead for Safeguarding carries out an annual review of all training conlenl lo ensure this is in line with current policy and guidance IKeeping Children Safe in Education and Working Together lo Safeguard Children). SFE has five members of staff who are trained as Designated Safeguarding Leads IDSLI, and who are required to maintain their status through completing bi-annual update training. These five members of staff manage all safeguarding queries and concerns, liaising with schools and external agencies as appropriate. SFE safeguarding policy is reviewed annually. SFE is represented on the Birmingham Safeguarding in Education group to ensure all company practice is aligned to the Birmingham Safeguarding Children Partnership structures and pr0￿dUreS. Our Approach to Fundraising Services For Education is proud lo be registered with the Fundraising Regulator, the independent body which sets and maintains the standards for fundraising in the United Kingdom. We are commilled lo the Fundraising Promise lo ensure our fundraising activities are legal, open, honest, and respectfvi. We work closely with an external fundraising consultant bid writer who supports our grants and trusts activity which is currently our main fundraising income generation stream. Our focus this year has been to keep our trusts and funding bodies up-to-dale about the impact covid has had upon our funded projects. The strategy has been lo build a Ihree-year pipeline of funds which was on track until the pandemic hil, the plan moving forward will be lo rebuild that pipeline. From an individual and community perspective the strategy has been lo create more compelling slory-based and outcome-based communications so that we start to build a relationship with donors rather than just being transactional in our approach. We are continuing to build relationships with corporates, through an approach based around six key ways corporates can support and engage with SFE.. Charity of the year Sponsorship Affinity marketing Payroll Giving Stock Partnerships Strategic Partnerships In 2020121 SFE received no complaints about ils fundraising activity. Page 4

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 Our Approach to Quality We pride ourselves in the quality of our services and the professionalism and skills of our highly talented colleagues. As we teach music to 34,000 children per week, and deliver an extensive portfolio of training and consultancy products to school leaders, il is essential that our customer facing teams keep at the forefront of developments and best practice in their fields. School Support Online delivery continued to be the main delivery vehicle for our published programme and also in school bespoke sessions. As il emerged that this would be a longer-term solution lo the issues raised by the pandemic and lockdown, delegate feedback was closely monitored lo ensure the quality of training was maintained, and any issues with remote leaming identified as quickly as possible. Staff undertook a programme of CPD to develop their skills and approaches lo online training in order to create an experience that was no lesser than the traditional face to face model, and ensure online sessions were as interactive as possible. Al points where face lo face delivery was possible, schools were given the option where possible of returning to physical sessions or remaining online. Music Throughout the pandemic, we have continued our series of ￿llIght CPD sessions for primary, secondary and special schools. These take place every term and have seen music coordinators sharing best practice with each other on how they have coped during COVID-19 and online learning. Sessions have also seen us supporting them with composition from hub partners BCMG and singing with our vocal team and Ex Cathedra (hub partners). We delivered our schools, Music Conference online, which was three evenings of online conlenl for music coordinators across the city. We looked at the level of need required from schools and provided CPD on.. Composition in Primary Schools Singing - What is a musical school? TeChnol￿Y in the classroom Building a music curriculum - using the new Model Music Curriculum as a starter Makaton training Ofsled and Deep Dive support Online resources We continue lo improve and develop our 'in house, CPD with the wider music team. sin￿ January 2021, we have staged weekly twilight 'drop ins, 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 Makaton, behaviour management, managing workload, large group teams lessons, using online whiteboards and playback sofvare. Our Essential Skills ￿llIght session continued lo run online where we provided support for key areas of delivery. We also provided external CPD from the wider 14 Wesl Midlands Music Services- each Service released their in-house training across the Midlands lonlinel and we provided support in WCIT, Looked After Children training, Early Years provision and Curriculum Development and Enhan￿Ment. Where possible, we provided lower level 'drop in, support for staff in the summer term. This was a welcome return for fa￿-tO-faCe visits for Heads of DepartmenL Customer Feedback Customer feedback is obtained from all course delegates response rates 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 schools. Throughout the move lo online delivery the feedback from course delegates has remained positive with 97Qkn of Page 5

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 delegates rating trainer delivery as ex￿lIent 1720/0) or good, and 960A rats'ng the course overall as excellent 1660/0) or good. Over 2300, delegates trained in 2020121_ OF HEADTEACHERS RATE OUR COURSES EITHER QF£(X185E ATtEPIOEES WP GQYRSE MEr EXCELLENT OR GOOD EXPEcfAnoNS Despite continuing to charge our standard fees al a time when there was an excess of free or low-cost online training, we saw no drop off in delegate numbers. As face-lo-face sessions returned there was not a noticeable change in either delegate numbers or responses lo the online offer. Page 6

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 OUR ACHIEVEMENTS AND PERFORMANCE The TrusteeslDirectors have taken note of the Charity Commission's guidan￿ on public benefit in reviewing the aims and objectives and in planning activities. In particular, the TrusteeslDirectors consider how the planned activities contribute to the charity's aims and objectives and they ensure these are carried out for the public benefit by delivering serVI￿S that are valued by the beneficiaries (school, pupils, teachers, parents) and which deliver clear and definable benefit lo those beneficiaries. wr rmpi c>Y 249 7.5 MILLION INCOME EMFiOYEES 221 56% HIGHLY TRAINED TEACHERS DFVFI.OPING TRAINING OVER 616 Nor5 SENiopSAFEGUARDING STAFF EACH YEAR PODCAST DOWNLOADS TO BECOME TEACHING PROVIDING FREE OVER 38.000 WE BRING MUSIC INSTRUMENT5TO ALL OUR MUSIC PUPILS CHILDREN MUSIC, IWEEKLY AND LEARNING TO LIFE The academic year 2020121 is year one of 'Strategy 2025 Creating Tomorrow Today,, outlining our roadmap for the next five years. Our ambitions are.. To revolutionise educational learning to maximise participation, through principleslevidence led educational practices great teachers delivering great learning offering personalised, flexible learning where appropriate supporting the development of employability and skills leading edge ServI￿S and resources To be a key partner for raising standards and allainment in education in our city, region and nationally, through being the distinctive leader in our sector providing agile and collaborative IresoLJrceful, bespoke andlor individualisedl solutions leading and stimulating debate on key issues facing the education sector encouraging widening of participation and development of a love of life-long learning for all ages developing a sustainable organisation for the long term that allows us to support and progress key initiatives Page 7

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 To make important contributions to our society and communities, particularfy through our work with disadvantaged groups and young people, through innovation and application of our expertise making a demonstrable impact positive alumni and stakeholder engagement These ambitions will be delivered through six organisation wide themes which all our colleagues can relate to in their work. They are intended lo deliver a vibrant, resilient, and agile organisation fLJlly equipped to deliver our vision and charitable purpose. MAXIMISE IMPACT AND RESULTS IJELIVtR >usTAINABLi GRowfH tXLELLtNCE IN PRACTICE OEVELOP EFFECTIVE STRATEGIC PAR TNERSHIPS INSPIRE AND ENGAGE INNOVATION AND CREATIVITY Key achievements in each of these streams are highlighted below. m￿ri#11se Impoct and Resulls Our priority during 2020121 has been in maintaining delivery throughout the pandemic across all streams of acb'vity within School Support and Music. Risk assessments have been constantly updated, adapting as necessary for the guid8nce impacting schools. The decision to convene virtual music ensembles was an important foundation for restarting in person post the year end Isep 20211. The decision was taken to remain in our eurrent premises for the next two years, so that we could better understand our ongoing space quirements, considering the impact of Covid-19 on ways of working and customer preferences. The use of our CRM system has been significsntly enhanced during the year, allowing for accurate reporting of the music order book and bespoke School Support products. This means that all our course sales informab'on is now accessible from one centr81 system. Deliver s￿laInable Growth Our focus within Music has been to re-engage schools who may have suspended provision during Lockdown 1, and to make prog￿SS back to pre-pandemic levels of activity. As society continues to navigate Covid-19, this is an ongoing work in progress. The move to online trsining has enabled our footprint to grow, and we have welcomed allendees from across the UK selling in lots12005 course places. Both teams had the opportunity lo deliver a virtual workshop overseas. A new pricing strategy and associated model has been introduced, ensuring the true costs of a bespoke piece of work are CaptU￿d - informed pricing decisions can then be driven by this informab'on. Existing product lines have been reviewed in light of this model. A new safe-guarding subscription service was successfully launched with 55 schools using this product in its first year. Eycellence in Practice National recognition for our work has been received (winner of Outstanding Music Education Resource in the Page 8

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 national Music and Drama Education Awards 2021, and Excellence in Training and Education, Greater Birmingham Chambers of Commerce Awards 20211 and improved the external brand reputation and recognition of SFE. Through an integrated marketing campaign, the highest number of recruits since 2014115 were recruited onlo the Initial Teacher Training Programme stsrting in Sept 2021. Key processes have been reviewed highlighting areas for development in the forthcoming year. An outcome of this work will be lo seek greater automation in the month end processes during Autumn 2021. Develop Effective Sirategic Partnerships As the lead oryanisalion for the Bimiingham Music Education Partnership, working in collaboration with Arts Council England and other leading cultural organisalions across the City is key lo our work. We value our relationships with these partners, ensuring that the offer is strong for the children and young people of Birmingham. We work elosely with Birmingham City Council across a number of areas, and il has been encouraging lo see a growth in our work with Virtual School pupils, for whom the access lo music tuition became very important, particulady during Lockdown 1. Inspire und Engage We welcomed five new trustees onlo our Board during the financial year, all who had been inspired by our vision as an organisalion and the impact that we have. In doing so we increased the breadth of experience and diversity of the Board. We have created more opportunities for colleagues lo gel involved in areas which impact all of SFE. Wellbeing Champions and members of a Diversity and Inclusion Group were recruited towards the end of the financial year and we look forward lo their work in 2021122. Innovation and Creativity This has been the theme which has defined the approach to all of our work during the period. Every team has demonslraled continual innovation and creativity to ensure continuity of service, alongside the government guidan￿ in place at any given lime. RISKS AND UNCERTAINTIES The Directors have assessed the major risks to which the company is exposed, in particular those related lo the operations and fInan￿S of the company, and are satisfied that systems and prO￿dureS are in place lo mitigate our exposure to the major risks. A thorough review is undertaken on al least an annual basis, with amendments made during the year as required. The principal risks identified by the TrusteeslDirectors are.. reductions in demand for music and school support services, caused by recurring lockdowns stemming from Covid-19 andlor subsequent P8ndemies mitigated by.. enabling delivery of all our servi￿$ through virtual plaffomis, working closely with customers lo align delivery to their circumstances, enabling all colleagues to work from home when required reductions in funding for music in schools through the Arts Council Grant andlor ￿ductIOnS in school funding which will result in redU￿d ability or willingness to purchase SFE'S services mitigated by. expansion of services both in type of service and the geographical reach of delivery. Advocacy of the benefits and imp8Ct of SFE'S servitss. Page 9

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 changes in education policy impacting income streams in the School Support Service mitigated by.. close monitoring of education landscape and monthly meetings implemented with Bimiingham City Council to continually understand direction of travel significant increases in core costs such as rent, utilities, employment costs, cost of musical instruments purchase and repair. mitigated by.. active management of suppliers and monitoring of costs effective cash management to match the SFE business cycle and episodic revenue profile mitigated by.. Close and frequent cash position monitoring combined with highly proactive Invol￿ payment management and debt collection. During the financial year 2019120, application approved for Coronavirus Business Interruption Loan Scheme in De￿mber 2020. This was drawn down in February 2021 In order lo mitigate against continued Un￿rtaInty during 2020121. FINANCIAL REVIEW AND RESULTS FOR THE YEAR General Monthly management accounts continued to be delivered to a strict reporting timetable with figures provided lo SLT on the 10th working day after each month end. This provides timely information for decision making. A budget reforecast was performed after the production of December actuals, and again during the annual budget process. Close financial monitoring was a priority item on all Board meetings as we continued to navigate the uncertainties caused by Covid-19 reslriclions and associated lockdowns, and their impact in schools. Subsequent to the year-end we have implemented a Finance and Audit Sub - Committee, enabling a subgroup of Trustees to have a more in-depth focus on financial perfotrnan￿ between meetings of the main Board. The￿ continues to be a strict focus on credit control. The aged profile of debtor balances improved during the year and this trend has continued since the year end. Debtor balances are reviewed at weekly meetings of the Senior Leadership Team and where appropriate customer facing colleagues are engaged in assisting recovery of difficult debts. The statement of financi81 activities sh()ws net ineome for the year of £932,885 12020.. £109,059). The net income on unrestricted funds was £446,166 12020.. £80:6831 and there was a net income of £486,719 on restricted funds12020. £28,376). Despite a reduction in unrestricted income year on year of £327,518, predominantly eaused by reduced school orders for music luilion and reduced demand for our training course offer, this was more than offset by a duction in unrestricted expenditure of £693,001. Control of costs was seen as vital in order to navigate the difficulties imposed on our customer base by the Covid 19 pandemic, and the corresponding impact on the charity. Additionally, we were able make use of the flexible nature of the furlough scheme land the extensions Its the duration of this scheme) which boosted CJRS receipts by £105,290 year on year. During 2020121, income from grants were crilieal in supporting the charity lo continue providing their ch8ri18ble activities. Our eore grant was received from Arts Council England lotalling £2,011,62412020". £2,027,567) and then from the Culture Recovery Fund ICRFI tol811ing £709,200 12020." £nill. The Culture Recovery Fund provided emergency funding to support the charity with the financial impact and ongoing uncertainties of the Covid-19 pandemic. Specifically, the Cultural Recovery Fund ICRFI has helped the charity lo support schools who are slowly and cautlously re-introducing music to the curriculum. In a normal year the majority of music orders would have been placed by September, however, schools have been placing orders throughout the year Causing the timetabling of teaching to be less efficient and therefore the charity has incurred greater delivery costs le.g. a greater number of visits being required lo a school setting). The CRF supports project costs incurred until the end of December 2021, and therefore post year end eontinues to support music in an Page 10

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 increased number of settings in Autumn 2021. Reserves It is the policy of the Board that cumulative unrestricted funds available to cover operational costs should be maintained al a minimum figure of £1,500,000. In addition, cash balances should be maintsined at a minimum of £1,000,000 throughout any financial year. This is to cover any immediate operational costs and to enable the charity to respond to changes in government policy and funding streams, with an increased balance al 31 August in any year of £1,500,000 reflecting the seasonal nature of the cash flow. This reserves policy is reviewed annually by the Board in order to ensure ils adequacy in relation lo the scale of the Company's operations. At 31 August 2021 there were unrestricted funds carried forward of £1,942,961 {2020'. £1,496,795), therefore the reserves policy level of available funds of £1,500,000 has been exceeded. Whilst year end cash levels and reseNes are in excess of those staled within policy, this is felt by Trustees to be a temporary situation whilst Un￿rtaInty remains around the buying behaviour and patterns of school customers in the next 18-24 months. Current forecasts indicate it will take lime before a return to pre pandemic orders. Consequenuy, a deficit budget has been set for 2021122 although through on-going cost control, the aim will be lo break even. Trustees recognise that the increase in unrestricted reserves may support investment which may be an enabler for greater operational efficiency which in turn would support the transition from future deficit forecasts, through to break even. Following the stabilisalion of activity Post pandemic, Trustees will review the Reserves Policy lo ensure that it is fil for purpose. The cash balan￿ al the year ended 31 August 2021 stsnds al £2,830,643 12020.. £1,399,240), an increase on the prior year of £1,431,403 and for the reasons outlined above, is in excess of the £1 m minimum level set despite the challenges of the last year. The cash balan￿ has benefited from the receipt of CU￿Ure Recovery Grants of £709,200 and a loan from Lloyds of £250,000 under the Coronavirus Business Interruption Loan Scheme. These receipts have helped the organisation lo navigate potential cashflow difficulties during the Covid 19 pandemic. Due to the better than originally forecast cashflow situation, the loan of £250,000 was repaid in full to Lloyds in February 2022 before interest became chargeable. The remaining excess cash will support the organisation to invest and grow as the effects of the pandemic diminish. Going Concern The financial slalemenls have been prepared under the going concern basis. The Directors reviewed and agreed on the budget for the financial year 2021122 which indicated that, barring unforeseen circumstsnces, the charity will continue lo be able lo meet all obligations as they fall due and will over time be able lo build suitable resetves. The budget is subject to reforecasting quarterfy during the year which allows for remedial action to be taken if deemed required. The Directors have specifically considered the impact of the Covid-19 pandemic on the continuing operations of the charity. Financial projections and cashflow forecasts have been prepared by Senior Leadership Team which have been updated on a regular basis and reported to Directors accordingly. Whilst il is evident that the Covid- 19 pandemic will continue to have a significant impact on the 2021122 results, with a budgeted deficit. A reforecast performed after the December 2021 actuals has redU￿d this defi'cit. Through careful financial management, a break-even position is likely lo be realised. The Directors, therefore, have a reasonable expectstion that SFE has adequate reSoUr￿S to continue in operational existence for the foreseeable future. STRUCTURE, GOVERNANCE AND MANAGEMENT General Services For Education (formerly S4E Limiledl is a registered charity in England and Wales INO. 11488481 and a company (No. 077398311 limited by guarantee. It was sel up by a Memorandum of Association on 15 August Page11

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 2011 and is governed by ils Memorandum and Articles of Association. Services For Education ISFEI is a unique charity that uses the power of learning and music to create and build confidence amongst children, young people, adults and communities. We aim to bring leaming and music lo life. The principal objects of the company are.. the advancement of education, particularly through the promotion of high-qualily leaching and learning., the advancement of the care, safely and upbringing of children and young people by.. supporting and assisting those in need, their families and carers promoting their health advancing their education the advancement of the arts and culture, particularly through the promotion and teaching of music. everything we do is delivered with passion and care. The company continues to focus on the quality of all services provided and to seek to expand both the mnge of services as well as their geographical reach. The Board The Board of Trustees is responsible for the overall governance of Services For Education and meet at least bi- monthly during the year. More regular Meetings have tsken place when required to address the ongoing challenges caused by the Covid-19 pandemic. New trustees are elected and co-opted under the terms of the Articles of Association and following an open recruitment process. New Iruslees undertake a comprehensive inducts'on process, which includes meetings with each member of the Senior Leadership Team and follow up meetings as required. The Chair of Trustees, Martin Chitty retired at the Board meeting on 29 March 2021 and was replaced by Sarah Smith. Strategic management ChiefExecutive Authority lo conduct the day-to-day activities of Services For Education is delegated to the Chief Executive, Sharon Bell, who is responsible for ensuring that the agreed strategy is implemented, and the necessary controls are in place lo govern the organisalion. The Chief Executive is supported by the Senior Leadership Team ISLTI which comprises Lindsay Allen (HR Director)., Tracy Carlton (Marketing and Business Development Director)., Stuart Birnie (Head of Music Service)., Andrew Cooper IHead of School Support Service)., Sarah Marshall (Head of Shared Services)., and Carl Black (Finance Manager). The Senior Leadership Team meets weekly, with additional monthly sessions focussing on strategy and long- term planning. A Strategic Oversight Group meets on a fortnighlly basis, comprising three members of the Senior Leadership Team and the focus this year has been ensuring the implemenlalion of key processes around costings and recruitment. Remuneration Policyfor Key Personnel The remuneration of the Chief Executive is set by the Board of TrusteeslDireclors based on advice from market recruitment specialists. The remuneration of senior staff is sel by the Chief Executive in consultation with the Chair of Trustees and is Page 12

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 based on both advice from market recruitment specialists and on industry benchmarks depending on the discipline of the employee. EMPLOYEES During the FY20-21 period, Services For Education employed 231 staff on average. The financial year involved a further period of school closures, and so there was another period when all our colleagues were working from home. During Lockdown 1 we were able to ensure that everyone had the access lo the systems and equipment to perform their role. Self-assessmenl checklists to confirm the suilabilily of the temporary homeworking environment were re-circulated and aclioned, as necessary. Use was made of the Coronavirus Job Retention Scheme Ifurloughl where insufficient work was available lo meet contracted weekly hours. This was reviewed and updated at least monthly as changes were made to school orders, with use of the scheme peaking around February 2021 before reducing as schools started lo reopen. Regular weekly communications include an informal Monday video by the Chief Executive and a weekly written communication (ln The Knowl issued on a Wednesday. Staff Forum meetings are normally held bi-monthly, but have been held monthly during the pandemic. Minutes fmm all Staff Forum meetings are shared with staff, normally within 2 weeks of the meeting date, and archive copies are available through the SFE Sharepoint pages al any time. Through these methods and localldepartmenlal updates, colleagues have received regular and consistent SoUr￿S of information during an uncertain period. There was an opportunity to bring colleagues together al an informal social in July 2021 which was warmly re￿iVed by staff. We are grateful to the members of the Staff Forum who have worked closely with the Senior Leadership Team during this period and helped us shape the business responses to the challenges that have arisen. 75.2Q/o of colleagues completed the staff survey in May 2021 12020.. 64.30/01, resulting in an engagement score of 75V/o 12020.. 810/01. Working with the external provider, the 2021 survey moved lo using pre-populated demographic dats whilst maintaining colleague anonymity. This has resulted in more granular reporting functionality which has allowed us to identify and respond lo particular areas of good practice andlor COn￿M. Diversity and Inclusion SFE is commilled to valuing diversity, encouraging inclusion and eliminating discrimination 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 fairness for all in our employment and in our provision of services, and not lo discriminate on grounds of gender, marital status, race, ethnic origin, nationality, disability, sexual orientation, religion or age. SFE opposes all forms of unlawful and unfair discrimination. 11 is our policy lo provide a suitable environment for people with disabilities. All reasonable facilities will be provided for employees with disabilities to perform their roles without difficulty or disadvantage. We will not lolerale direct or indirect discrimination against any person on grounds of age, disability, genderlgender reassignment, marriagelcivil partnership, pregnancylmalernity, race, religion or belief, sex or sexual orientation, whether in the field of recruitment, terms and conditions of employment, career progression, training, transfer or dismissal. 11 is also the responsibility of all employees in their daily actions, decisions and behaviour, to endeavour lo promote these concepts, to comply with all relevant legislation and lo ensure they do not discriminate against colleagues, customers, suppliers or any other person associated with the business. In adopting these principles, SFE.. will not tolerate acts that breach this policy and all such breaches or alleged breaches will be taken Page 13

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 seriously, fully investigated and may be subject to disciplinary action, where appropriate. fully recognises its legal obligations under all relevant legislation and codes of pracliTr. will allow staff lo pursue any matter through the internal procedures which they believe has exposed them lo inequitable treatment within the scope of this policy. Copies of these procedures are available lo all staff through the website. will ensure that all managers understand and maintain their responsibilities and those of their team under this policy. will offer opportunities for flexible working pallerns, wherever operationally feasible, lo help employees lo combine a career with their domestic responsibilities. will provide equal opportunity to all who apply for vacancies through open competition. will select candidates only on the basis of their ability 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 theirjob effectively. will provide all reasonable assistance lo employees who are or who become disabled, making reasonable adjustments wherever possible lo provide continued employment. We will ensure an appropriate risk assessment is carried out and that appropriate specialist advice is obtained when ne￿Ssary. will distribute and publicise this policy statement throughout the company. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Directors Iwho are also Trustees of SFE for the purposes of charity lawl are responsible for preparing the Directors, report and the financial statements in accordance with applicable law and United Kingdom Accounting standards (United Kingdom Generally Accepted Accounting Practi￿1. Company law requires the Directors lo prepare financial statements for each financial year. Under company law the Directors musl not approve the financial stslemenls unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Directors are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities 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 it is inappropriate to presume that the charitable company will continue in operation. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitsble company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for the Maintenan￿ and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and disseminats'on of fi'nancial ststemenls may differ from legislation in other jurisdictions. DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who are Directors at the lime when this Directors, report is approved has confirmed.. That so far a5 that Director is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and Page 14

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 that Director has taken all the steps that ought to have been taken as a Director in order to be aware of any information needed by the charitable company's auditor In connection with preparing this report and lo establish that the Charitable companls auditor is aware of that informabon. Approved by order of the members of the board of Trustees and signed on their behalf by.. by. OA652AFEEe41C... Sarah Smith ITrusleel Dale.. 28 April 2022 Page 15

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED Opinion We have audited the financial statements of Services for Education Limited Ilhe 'charilable company'l for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the BalanTr sheet, the Stslemenl of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation Is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial statements.. give a true and fair view of the stale of the charitable company's affairs as at 31 August 2021 and of its Incoming reSoUr￿S and application of resour￿$, including Ils income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice," and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in 8ccord8nce with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Elhieal Standard, and we have fulfilled our other ethical sponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financi81 statements, we have concluded that the Trustees, use of the going COn￿M basis of aceounling in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uneertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability lo continue as 8 going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 16

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED ICONTINUEDI Othgr information The other Infomialion comprises the information included in the Annual report other than the financial statements and our Auditor's report Ihereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicidy stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially Inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we Identify such material Inconsistencies or apparent material misstslements, we are required to determine whether this gives rise to a material misslatemenl in the financial stslements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other mattors prescribod by the Companigs Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Report for the financial year for which the financial statements are prepared Is consistent with the financial statements. the Trustees, Report has been prepared In accordan￿ with applicable legal requirements. Matters on which are required to report by exception In the light of our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misstslemenls in the Trustees. Report. We have nothing to report in respect of the following matters in relation lo which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the financial slalements are not in agreement with the accounting records and returns,. or ertain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for OLJr audit". or the Trustees were not entitled to prepare the financial statements in aceordanee with the sm811 companies regime and lake advantage of the small companies, exemptions in preparing the Trustees. Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustèes, ￿sponSibl11t1eS ststemenl, the Trustees Iwho are also the directors of the ch8ritsble company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the Trustees are ￿spOnSible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, matters ￿lated lo going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic alternative but lo do so. Page 17

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED ICONTINUEDI Auditorfs responsibilitigs for tho audit of the financial statements Our objectives are lo obtsin reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and to issue an Auditor's report that Includes our opinion. Reasonable assurance is a high level of assuran￿, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will a￿lay$ delect a material misstalemenl when Il exists. Misstatements can arise from fraud or error and are considered material If, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are Instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements In respect of Irregularities, including fraud. The extent lo which our procedures are capable of delecling Irr￿UlaritieS, Induding fraud is detailed below.. Our assessment focussed on key laws and r￿ulationS the charitable company has lo comply wth and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited lo compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, dats protection, anti-bribery and employment legislation. We are not responsible for preventing irregularities. Our approach lo delecling Irregularities included, but was not limited to, the following.. obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company isomplying with that framework, including agreement of financial statement disclosures to underfying documentation and other evidence., obtaining an understanding of the caritsble company's control environment and how the charitable company has pplied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough lesling over key areas,. obtaining an understanding of the caritable company's risk assessment process, including the risk of fraud., reviewing meeting minutes of those charged with governance throughout the year,. and performing audit lesling to address the risk of management override of controls, including testing journ81 entries and other adjustments for appropriateness, evaluating the business rationale of signifi'cant transactions outside the normal course of business and reviewing accounting estimates for bias. Whilst considering how our audit work addressed the detection of irregularities, we also considered the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difficult lo detect than those arising from error. Because of the inherent limitstions of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financi81 statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions flected in the financial statements, as we will be less likely to become aware of InStan￿S of non-compliance. The risk is also greater ￿gardIng irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at". www.frc.or .uk/audilorsres onsibilities. This description forms part of our Auditols report. Page 18

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED ICONTINUEDI Use of our report This report is made solely lo the charitsble company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the charitable company's members those matters we are required to slate lo them In an Audilorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitsble company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Glen Bott FCA (Senior statutory auditor) for and on behalf of Cooper Parry Group Limited Chartered Accountants statutory Auditor Sky View Argosy Road East Midlands Airport Castle Donington Derby DE74 2SA Dale. 28 April 2022 Page 19

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021 Unrestricted funds 2021 Restricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Donations and legacies Charitable activities 45,611 4,386,526 2,784,077 2,829,688 4,386,526 2,191,047 4,739,560 Totsl Income 4,432,137 2,784,077 7,216,214 6,930,607 Expendlture on: Charitable activitie$ 3,985,971 2,297,358 6,283,329 6,821,548 Total expenditure 3,985,971 2,297,358 6,283,329 6,821,548 Net movement in funds 446,166 486,719 932,885 109,059 Reconciliation of funds: Total funds brought forward Nel movement in funds 1,496,795 446,166 239,973 486,719 1,736,768 932,885 1,627,709 109,059 Total fund$ carried forward 1,942,961 726,692 2,669,653 1,738.768 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 23 to 37 form part of these financial statements. Page 20

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) REGISTERED NUMBER: 07739831 BALANCE SHEET AS AT 31 AUGUST 2021 2021 2020 Note Fixed assets Tangible assets 10 561,564 781,660 561,564 781,660 Current assets Debtors Cash al bank and in hand 11 644,789 2,830,643 522,546 1,399,240 3,475,432 1,921,786 Creditors." amounts falling due within one year 12 11,142,343> 1966,6781 Net current assets 2,333,089 955, 108 Total assets less current liabilities 2,894,653 1,736,768 Creditors." 8mounls falling due after more than one year 13 1225,0001 Net assets excluding pension asset 2,669,653 1,736,768 Total net assets 2,669,653 1,736,768 Charity funds Reslricled funds Unrestricted funds 14 14 726,692 1,942,961 239,973 1,496,795 Totsl funds 2,669,653 1,736,768 The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entibes subject lo the small companies regime. The financial stslemenls were approved and authorised for issue by the Trustees and signed on their behalf by.. Oo¢usb￿dty. C3QAB52AFEE641C.. Sarah Smith Ichair of Trustees) Dale.. 28 April 2022 The notes on pages 23 to 37 form part of these financial statements. Page 21

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Cash flows from operating activities Nel cash used in operating activities 1,202,125 216,843 Cash flows from investing activities Purchase of 18ngible fixed assets 120,7221 1106,4401 Net cash used in investing activities 120,7221 1106,4401 Cash flows from flnanclng actlvltles Cash inflows from new borrowing 250,000 Net cash provided by financing activities 250,000 Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 1,431,403 110,403 1,399,240 1,288,837 Cash and cash equivalents at the end ofthe year 2,830,643 1,399,240 The notes on pages 23 to 37 form part of these financial statements Page 22

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 General inft>rmation Services For Education Limited is a charitable company limited by guarantee and registered and domiciled in England. The address of the registered office Is Unit 3, Holl Court, Holt Street, Birmingham Science Park, Aston, Bimiingham, 87 4AX. The financial statements are prepared in sterling, which is the functional and presentslional currency of the Charity. Monetary amounts In these financial statements are rounded lo the nearest £. The company Is a company limited 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 is limited to £1 per member. Accounting policios 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021- Accounting and Reporting by Charities". Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Services For Education Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounb'ng policy. 2.2 Going concern The financial statements have been prepared on a going concem basis. The Directors have conisdered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had a significant imp8Ct on the company's operations. Delivery of services has been adapted to take account of the shutdown but il is recognised that there will be an impact on invoieed ServI￿S and also fundraising income. Steps a￿ being taken to reduce costs and finances are being closely monitored. In response to the COVID-19 pandemic, the Directors have performed a robust analysis of forecast future cash flows taking into account the potenti81 impact on the business of possible futu￿ scenarios arising from the impact of COVID-19. This analysis also considers the effectiveness of available measures to assist in mitigating the impact. Based on these assessments and having regard to the resources available to the entity, the Directors have eoncluded that there is no material uncertainly and that they can continue to adopt the going concern basis in preparing the annual report and accounts. Page 23

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting policios Icontinuedl 2.3 Incomg All income is recognised once the Company has entitlement to the income, it Is probable that the income will be received and the amount of income receivable can be measured reliably. Income for serviTrs is recognised in the Stslement of Financial Activities on a receivable basis on completion of the servi￿. Grants are included In the Statement of financial activities on a re￿1vable basis. The balance of income received for specific purposes bul not expended during the period is shown in the relevant funds on the Balance sheet. Where Income is received in advan￿ of entitlement of reTript, Its recognition is deferred and included in creditors as deferred Income. Where entitlement occurs before income Is received, the income Is accrued. 2.4 Expenditure Expenditure is recognised On￿ there is a legal or constructive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each acb.vity are made up of the total of direct costs and shared costs, including support costs inVo￿ed in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned be￿een those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. 2.5 Tangible fixod assgts and dgprgciation Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into ils Intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following basis.. Short-temi leasehold property- over the temi of the lease Fixtures and fittings 25'/o on a slraighl line basis Computer equipment 33.3'k on a straight line basis Music instruments 10 /9-13.3°￿ on a slraighl line basis 2.6 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Page 24

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting policios Icontinuedl 2.7 Cash at bank and in hand Cash at bank and in hand Includes cash and short-term highly liquid Investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.8 Liabilities and provisions Liabilities are recognised when there is an obligation al the Balan￿ sheet date as a result of a past event, Il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates il will pay to settle the debt or the amount it has received as advanced payments for the goods or ServI￿S it must provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision Is based on the present value of those amounts, discounted al the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount Is recognised in the Statement of financial activities as a finance cost. 2.9 Financial instrumgnts The Company only has financial assets and financial liabilities of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.10 Opgrating 1gaSOS Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease temi. Benefits re￿iVed and re￿1vable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattem of the lessee's benefit from the use of the leased asset. 2.11 Pensions The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company lo the fund in respect of the year. 2.12 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund Is set out in the notes lo the financial statements. Page 25

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Critical accounting ostimates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experien￿ and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The key assumptions conTrrning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year Include depreciation rates for tangible fixed assets and their residual values. Key estimates and judgements in relation to the financial statements include.. Allocation of support costs Cost of instruments originally transferred to the charity in 2013 which were recognised al an estimate of the replacement cost of the instruments as adjusted lo reflect age and condition. Income from donations and logacies Unrostrictod funds 2021 Rgstricted funds 2021 Total funds 2021 Donations Grants 31,861 13,750 63,253 2,720,824 95,114 2,734,574 45,611 2,784,077 2,829,688 Included within Grants there is £2,011,624 from Arts Council England, £709,200 from the Culture Recovery Fund and £13,750 from Birmingham City Council. Unrestricted Restricted funds funds 2020 2020 Total funds 2020 Donations Arts Council England 20,095 143,385 2,027,567 163,480 2,027,567 20,095 2,170,952 2,191,047 Page 26

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Income from charitablg activities Unrestricted funds 2021 Total funds 2021 Music School support Other 2,969,233 1,100,899 316,394 2,969,233 1,100,899 316,394 4,386,526 4,386,526 Included within Other is income of £31 6,250 claimed under the Government's Coronavirus Job Retention Scheme ICJRSI. Unrestricted funds 2020 Total funds 2020 Music School support other 3,371,890 1,150,800 216,870 3,371,890 1,150,800 216,870 4,739,560 4,739,560 Included within Other is income of £210,960 claimed under the Government's Coronavirus Job Retention Scheme ICJRSI. Analysis of expenditure by activities Activities undertaken directly 2021 Support costs 2021 Total funds 2021 Music School support Other 4,136,659 719,940 1,229,365 196,413 952 5,366,024 916,353 952 4,856,599 1,426,730 6,283,329 Page 27

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Analysis of expendituro by activities Icontinugdl ActivitlOS undertaken directly 2020 Support osts 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 5,234,480 1,587,068 6,821,548 Anatysis of direct costs Direct costs School Support 2021 Direct costs Music 2021 Total funds 2021 Staff costs Depreciation Music resources Performance costs Venue hire Project costs Travel & subsistence 3,670,598 224,823 54,761 114,421 9,989 547,750 4,218,348 224,823 54,761 114,421 9,989 72,394 25,806 8,230 129,827 72,394 72 25,734 6,230 30,103 Training Consultancy 99,724 4,136,659 719,940 4,856,599 Page 28

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Analysis of expendituro by activities Icontinugdl Analysis of dirgct costs {continuod) School support 2020 Total funds 2020 Music 2020 staff costs Depreciation Music resources Performance costs Venue hire Project costs Travel & subsistenee 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 35,034 661 53,174 36,351 29,431 150 Training Consultancy Professional fees 79,285 4,522,620 711,860 5,234,480 Analysis of support costs Direct costs - School Direct Costs Support - Other 2021 2021 Direct Costs Musi 2021 Total funds 2021 staff costs Depreciation Project costs Travel & subsistence Training Office costs 855,140 14,076 21,942 3,714 19,740 46,660 103,048 18,036 34,796 29,388 642 116,610 1,919 13,792 507 2,960 24,067 14,052 2,460 4,745 4,007 87 971,750 15,995 35,734 4,221 22,700 70,727 117,100 20,496 39,541 33,395 1,681 81,680 11,710 Premises costs Insurance Marketing and publicity Professional fees Bank charges Irrecoverable VAT Governance costs 952 71,878 10,305 9,802 1,405 1,229,365 196,413 952 1,426,730 Page 29

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Analysis of expendituro by activities Icontinugdl Analysis of support costs Icontinuedl School support 2020 Total funds 2020 Music 2020 Other 2020 staff costs Depreciation Project costs Bad debt expense Travel & subsistence Training Seconded staff 834,424 35,423 101,032 34,672 2,902 21,706 2,981 55,448 94,487 17,499 39,350 44,336 2,848 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 Office costs Premises costs Insuran Marketing and publicity Professional fees Bank charges Irrecoverable VAT Governance costs 31,704 12,884 2,386 5,366 7,410 388 10,174 1,068 5,793 1,369,012 212,263 5,793 1,587,068 Auditorfs remuneration 2021 2020 Fees payable lo the Company's auditor for the audit of the Company's annual accounts 10,500 10,500 Fees payable to the Company's auditor in respect of". All non-audil services not included above 1,000 Page 30

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Stsff costs 2021 2020 Wages and salaries Social security costs Contribution lo defined contribution pension schemes 4,461,618 344,592 383,888 4,535,650 359,965 460,796 5,190,098 5,356,411 The average number of persons employed by the Company during the year was as follows.. 2021 No. 2020 No. Music 203 227 School support Administration Fundraising 10 18 18 231 257 The number of employees whose employee benefits {excluding employer pension costs) exceeded £60,000 was. 2021 No. 2020 No. In the band £60,001 - £70.000 In the band £70,001 - £80,000 In the band £80,001- £90,000 In the band £90,001- £100,000 Two additional employees are disclosed in the £60k-£70k banding this year. These fv40 employees would have also been disclosed in the previous year however, salaries were redU￿d for all employees by 200A between June and August 2020 as a result of the pandemic. This meant the salaries for the two employees in question fell below £60k. The total employee benefits re￿iVed by key management personnel in the year was £648,217 12020.. £628,410>. Trustees. remuneratlon and expenses During the year, no Trustees re￿iVed any remuneration or other benefils12020 - £NILI. During the year ended 31 August 2021, no Trustee expenses have been incurred12020- £NILI. Page 31

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 10. Tangiblg fixed assets Short-temi leasehold Flxtures and property flttings Computer Muslcal equipment Instruments Total Cost or valuation At 1 September 2020 Additions 93,406 124,839 7,707 93,919 3,211,832 13,015 3,523,996 20,722 At 31 August 2021 93,406 132,546 93,919 3,224,847 3,544,718 Depreciation At 1 September 2020 Charge for the year 93,406 100,246 15,995 93,919 2,454,765 224,823 2,742,336 240,818 At 31 August 2021 93,406 116,241 93,919 2,679,588 2,983, 154 Net book value At 31 August 2021 16,305 545,259 561,564 At 31 August 2020 24,593 757,067 781,660 11. Debtors 2021 2020 Due within one year Trade debtors 585,487 23,698 35,604 433,125 68,651 20,770 other debtors Prepayments and accrued income 644,789 522,546 Page 32

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 12. Creditors: Amounts falling due within one ygar 2021 2020 Bank loans 25,000 37,592 166,047 913,704 Trade creditors other creditors 44,131 147,446 775,101 Accruals and deferred income 1,142,343 966,678 2021 2020 Deferred income at 1 September 2020 ReSoUr￿S deferred during the year Amounts released from previous periods 718,491 935,634 990,932 871,954 1894,4271 11,089,097) 814,996 718,491 Deferred income relates to income received in advance of setviee delivery for 202112022. 13. Creditors: Amounts falling due after more than one year 2021 2020 Bank loans 225,000 The above Bank loan is a CBILS Loan with Lloyds Bank for £250,000 repayable over a period of 60 months commencing 13 months after the drawdown date. The interest rate Is 2.480/. plus the base rate. The amount repayable after more than 5 years is £25,000. After the balance sheet date it was agreed that the CBILS Loan would be repaid in full within 1 year. The loan of £250,000 was repaid in full lo Lloyds in February 2022 before interest became chargeable. Page 33

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 14. ststement of funds ststomont offunds - curront year Balance at 1 Septembor 2020 Balance at 31 August 2021 Income Expenditure Unrestrlcted funds General Funds 1,496,795 4,432,137 13,985,971) 1,942,961 Restricted funds Arts Council England SACRE other Culture Recovery Fund 166,825 5,480 67,668 2,011,624 12,011,624) 166,825 5,480 95,187 459,200 63,253 709,200 135,7341 1250,0001 239,973 2,784,077 12,297,358) 726,692 Total of funds 1,736,768 7,216,214 16,283,329) 2,669,653 Page 34

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 14. ststement of funds Icontinuedl ststomont of funds - prior year Balance at Balance at 31 August 2020 Septembor 2019 Income Expenditure Unrestrlcted funds General Funds 1,416,112 4,759,655 14,678,972) 1,496,795 Restricted funds Arts Council England SACRE other 166,825 5,480 39,292 2,027,567 12,027,567) 166,825 5,480 67,668 143,385 1115,0091 211,597 2, 170,952 12,142,576) 239,973 Total of funds 1,627,709 6,930,607 16,821,548) 1,736,768 Arts Council England fund is core grant funding lo support delivery of the music service. SACRE is funding lo support delivery of statutory religious education duties and school support on matters relating lo religious education. other restricted funds are an aggregate of smaller donations for specific aspects of our servI￿s. The Culture Recovery Fund provided emergency funding lo support the charity with the financial impact of Covid-19 pandemic and to be able lo continue il's charitable activities. 15. Analysis of net assets between funds Analysis of net assets between funds - current year Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year 561,564 2,748,740 11,142,343) 1225,0001 561,564 3,475,432 11,142,343) 1225,0001 726,692 Totsl 1,942,961 726,692 2,669,653 Page 35

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 15. Analysis of net assets botwgen funds {continuodl Analysis of net assets between funds - prior year Unrestricted funds 2020 Restricted funds 2020 Total funds 2020 Tangible fixed assets Current assets Creditors due within one year 781,660 1,681,813 1966,6781 781,660 1,921,786 1966,6781 239,973 Total 1,496,795 239,973 1,736,768 16. Reconciliation of net movement in funds to net cash flow from operating activities 2021 2020 Nel income for the year las per Statement of Financial Acliviliesl 932,885 109,059 Adjustments for: Depreciation charges Decreasellincreasel in debtors Increaselldecreasel in creditors 240,818 1122,2431 150,665 368,228 154,610 1415,0541 Net cash provided by operating activities 1,202,125 216,843 17. Anatysis of cash and cash equivalents 2021 2020 Cash in hand 2,830,643 1,399,240 Total cash and cash equivalents 2,830,643 1,399,240 Page 36

DoGuSign Envelope ID." 8E77B8B8-924744E6-A8FC-9018CED10BA9 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 18. Analysis of changgs in net debt At1 September At31 2020 Cash flows August 2021 Cash at bank and in hand 1,399,240 1,431,403 125,0001 1225,0001 2,830,643 125,0001 1225,0001 Debt due within 1 year Debt due after 1 year 1,399,240 1,181,403 2,580,643 19. Pension commitments The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £383,888 12020.. £333,1821. 20. Operating lease commitments At 31 August 2021 the Company had commitments to make future minimum lease payments under non- Can￿lIable operating leases as follows.. 2021 2020 Not later than 1 year Later than 1 year and not later than 5 years 89,045 113,090 65,000 130,000 202,135 195,000 During the year £65,000 12020.. £65,000) has been recognised as an expense in the Statement of financial activities. 21. Related party transactions There We￿ no related paty transactions during the year12020'. none). Page 37