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2023-08-31-accounts

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Company number: 07739831 Charity number : 1148848

TRUSTEES REPORT

AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1
Trustees' report 2 - 16
Independent auditor's report on the financial statements 17 - 20
Statement of financial activities 21
Balance sheet 22
Statement of cash flows 23
Notes to the financial statements 24 - 39

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees Sarah Smith, Chair Laura Williams Philip Davies (resigned 31 August 2023) David Bolton Paul Stone Joa��� Cooney Martin Hall Jory Debenham (appointed 5 April 2023) Jamie Barry (appointed 12 April 2023) - Peter Borg Bartolo (appointed 4 April 2023) Company registered number 07739831 Charity registered number 1148848 Registered office Unit 3, Holt Court Holt Street Birmingham B7 4AX Company secretary David Alcock Chief executive officer Sharon Bell Independent auditor Cooper Parry Group Limited Chartered Accountants Statutory Auditor Cubo Birmingham Office 401, 3rd Floor Two Chamberlain Square Birmingham B3 3AX

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

WHY WE EXIST

Our Vision and Mission

Services for Education is a unique charity that uses the power of learning and of music to transform and enhance the lives of children, young people, adults, and our wider communities.

We bring learning and music to life.

Our work encompasses a broad range of settings, including:

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Our Values

Our values are extremely important to us as these underpin our vision and mission:

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

CHAIR’S INTRODUCTION

Welcome to our 2022/23 Annual Report and Accounts.

It has been a truly exciting year with some fantastic moments across the business, including some wonderful music events which you can read about below and the launch of some new services and partnerships by our School Support team.

This year we have been lucky to create some really strong partnerships with companies like Best Practice Network and we are now able to provide SCITT, the ECF Programme and National Professional Qualifications through them.

This partnership has strengthened our offering and we’ve seen some really strong outcomes because of that. Our School Support team also hosted their first ever on-line Reading Conference for Primary Teachers. This has received fantastic feedback from all attendees and welcomed renowned guest speakers such as Mat Tobin and Pie Corbett.

In our music department, we celebrated the Youth Proms again in style and this year celebrated the King’s Coronation with an outdoor extravaganza at Cannon Hill Park. Our music team also launched Count Me In! This is a fantastic resource for special schools and were featured on local news to talk about the book.

None of this would have been achievable without the enthusiasm and continuing commitment of our colleagues, trustees, stakeholders and, of course, our donors and funders including Arts Council England. Thank you to all of you who support Services For Education, and our work across the city of Birmingham and further afield – we are very grateful.

Sarah Smith

Chair of Trustees

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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 2023. The company trades under the name Services For Education (SFE) 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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.

Since 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 Report) Regulations 2013 is not required.

Our Approach to Safeguarding

All staff undertake annual safeguarding training; for some experienced colleagues this will be refresher training. This is now offered as face-to-face training every year and is supplemented by the SFE online training course for those who cannot attend. All Music Staff also receive on-going face to face/online update training to help keep safeguarding at the forefront of people’s thinking and embed a professional curiosity. All new staff are required to undertake the online course before commencing delivery for SFE. This is the minimum requirement and, this year, we have introduced mid-year face-to-face safeguarding training to these same staff. We have also introduced new podcasts by way of ‘follow up/scenarios that we encounter’ to support all staff. The SFE Heads of Service jointly carry out an annual review of all training content to ensure this is in line with current policy and guidance (Keeping Children Safe in Education and Working Together to Safeguard Children). SFE has six members of staff who are trained as Designated Safeguarding Leads (DSL), two of whom are members of the Senior Leadership Team, and who are required to maintain their status through completing bi-annual update training. These six members of staff manage all safeguarding queries and concerns, liaising with schools and external agencies as appropriate. SFE’s safeguarding policy is reviewed annually to capture all legislative changes.

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 procedures. All colleagues are required to review key policies and guidance on an annual basis and sign to confirm that they have done so.

Our Approach to Fundraising

Services For Education is proud to be registered with the Fundraising Regulator, the independent body which sets and maintains the standards for fundraising in the United Kingdom. We are committed to the Fundraising Promise to ensure our fundraising activities are legal, open, honest, and respectful.

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. This year, we have hired a new Fundraising Manager. As a result, moving into 2024, we will be focussing on enhancing our individual and community impact by continuing to create more compelling story-based and outcome-based communications so that we start to build a relationship with our donors rather than just being transactional in our approach.

In 2022/23 SFE received no complaints about its fundraising activity.

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 32,000 children per week, and deliver an extensive portfolio of training and

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

consultancy products to school leaders, it is essential that our customer facing teams keep at the forefront of developments and best practice in their fields.

School Support

Over the last 12 months School Support Services has continued to provide a wide range of products and services using both on-line and some face-to-face delivery. This approach has been informed both by customer feedback, but also taking into consideration the subject matter and what is most appropriate for embedding the learning. Delegate feedback is continuing to be closely monitored to ensure the quality of training and testimonials are received following consultancy work. Colleagues continue to be upskilled in digital delivery, to ensure a highly engaging and interactive learning experience as our online offer continues to grow. We have further developed our partnership with BPN, along with enhancing our bespoke, consultancy offer ensuring that Education Advisors remained current in their knowledge and understanding of present education issues impacting schools. This professional development for the School Support team is provided via half termly CPD. The School Support Service has also developed its work with our music service, providing on-going safeguarding CPD, and quality assurance of this aspect of work and more recently is contributing to the CPD programme for SFE’s music teachers. SFE’s Education Advisors have also received CPD on well-being. We maintain a positive working relationship with BCC through our work on both the Statutory Assessment Duty and SACRE. Our work with Mondelez continues to thrive with our Health For Life programme now working with its twelfth cohort.

Music

We have continued our series of twilight CPD sessions for primary, secondary and special schools. These take place every term and have seen music coordinators sharing best practice with each other and having opportunities to share best practice. Sessions have also seen us supporting them with composition from hub partners Birmingham Contemporary Music Group (BCMG) and singing with our vocal team and Ex Cathedra (hub partners). We delivered our schools’ Music Conference face to face in March at the MAC. We looked at the level of need required from schools and provided CPD for SFE staff and school-based colleagues on:

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

We continue to improve and develop our ‘in house’ CPD with the wider music team. Through PDR conversations, we continue to offer support on training days to all staff and through departmental training. This academic year saw us offering more support on the understandings of pupils and how to get to know children and young people we work with. For example, our Trauma Informed Training and Inclusive Practitioner Training has helped support all staff more.

Customer Feedback

Customer feedback is obtained from all course delegates in School Support Services– response rates have improved by collecting feedback online. Throughout the move to online delivery the feedback from course delegates has remained positive with 97% of delegates rating trainer delivery as excellent (70%) or good, and 96% rating the course overall as excellent (66%) or good.

Please rate your experience of the course:

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. As part of our funding agreement with Arts Council England we receive a quarterly feedback letter. The feedback from Arts Council confirmed that the risk rating for the period April to August 2023 had stayed at a scoring of 5 (minor risk – risk is scored 2-6).

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

OUR ACHIEVEMENTS AND PERFORMANCE

The Trustees/Directors have taken note of the Charity Commission's guidance on public benefit in reviewing the aims and objectives and in planning activities. In particular, the Trustees/Directors 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 services that are valued by the beneficiaries (school, pupils, teachers, parents) and which deliver clear and definable benefit to those beneficiaries.

2022/23

2022/23 is year three of ‘Strategy 2025 – Creating Tomorrow Today’, outlining our roadmap for the next five years.

Our ambitions are:

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

These ambitions will be delivered through six organisation wide themes which all our colleagues can relate to in their work. They are intended to deliver a vibrant, resilient, and agile organisation fully equipped to deliver our vision and charitable purpose.

At the start of year 3 of Strategy 2025, 3 strategic projects were identified, the progress against which is noted below:

  1. To build upon the progress made in 2021/22

The focus in the previous period had been on returning to pre pandemic levels of activity and impact, and intentionally focussing on developing the culture of SFE.

It has been encouraging to see music being firmly re-established in schools, albeit the pressures faced by school budgets results in challenges for SFE as a supplier. We work closely with our school customers to determine the most effective way of providing the service and ensuring the best possible experience for our learners. As noted above, the shape and profile of the School Support offer has altered in order to respond to changes in government policy and ensures that we are meeting the needs of school leaders both in Birmingham and further afield.

The development of organisational culture continues to be a priority – and there is ongoing investment in coaching for our leadership team, to ensure tailored support is available. The ongoing work focussing on wellbeing and diversity and inclusion form important streams of activity supporting culture development.

  1. To successfully bid for key contracts within School Support and Music

At the start of 2022/23, we were planning our approach for the renewal of two key contracts – the Statutory Assessment Contract with Birmingham City Council and the appointment as the Lead Music Hub for Birmingham in a contract which would be awarded by Arts Council England. We were pleased to be successful in our tender for the Statutory Assessment Contract.

When the timescales were outlined for appointment of Lead Music Hubs across England, the deadline for application was announced as being early October 2023. A thorough piece of work culminated in what we believe to be a strong submission and the outcome will be known in Spring 2024.

  1. To determine our office base for SFE for the medium term

With the lease on our premises at Holt Court due for renewal, this provided an opportunity to review our needs

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

both in terms of office space and training rooms. In addition, we have reviewed the availability of premises locally. The decision has been made to stay in our current premises and negotiations are currently underway with the landlord regarding renewal.

Future Plans

As in previous years, SFE has identified our strategic priorities for 2023/24 which deliver against the organisation wide themes outlined above. These include:

1. Retaining SFE’s status as Hub Lead Organisation (HLO) for Birmingham

In Spring 2024 SFE expects to hear the outcome of the national tendering process which will define how the national music education grant is administered. As the current Music Hub Lead for Birmingham, SFE is seeking to retain this position. The new funding structure will introduce new requirements for the management of the grant funding, which requires SFE to update the existing governance arrangements to ensure that the expectations of Arts Council England are fully met and ultimately exceeded.

2. Re-imagining the School Support priorities

Developments within the external environment have a significant impact on priorities in all areas across SFE, but this is more prevalent within the School Support function. Education policy impacts the product portfolio in a range of ways across course design and delivery, through to consultancy. In addition to responding to planned and anticipated changes in the education landscape, the team are regularly “horizon scanning” to understand where potential options exist to develop or evolve the product portfolio in the longer term. The team will continue to balance opportunities for new developments alongside continuing to build on areas where SFE’s market presence is already strong and highly effective.

3. Building SFE for the future

Whilst changes in education policy will always have an impact on the nature of work delivered by SFE, it is also important for the organisation to continue to develop our enabling infrastructure, ensure the business can function effectively and efficiently and continues to invest in systems and resources for the future. It is our intention to use FY23/24 to undertake further reviews of our requirements for the near term, which can then be developed into future project and priorities to support delivery requirements in future years. This activity will connect with and feed into our thinking and planning around developing the organisational strategy for 2025-2030.

Sustainability

SFE is committed to identifying areas whereby we can reduce the impact on the environment from our operations and service delivery. We will address this through:

During 2022/23 SFE:

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

RISKS AND UNCERTAINTIES

The Directors have assessed 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. A thorough review is undertaken on at least an annual basis, with amendments made during the year as required:

The principal risks identified by the Trustees/Directors are:

mitigated by : working closely with customers to align delivery to their circumstances

mitigated 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.

mitigated by : close monitoring of education landscape and regular meetings implemented with Birmingham City Council to continually understand direction of travel

mitigated by : active management of suppliers and monitoring of costs

mitigated by : Close and frequent cash position monitoring combined with highly proactive invoice payment management and debt collection. During 2022/23 SFE has implemented a robust cash management approach, investing surplus cash balances in fixed term deposit accounts via a savings platform operated by Flagstone Group Ltd. Deposits span a variety of maturity dates (with fixed terms of between 1 and 12 months), ensuring SFE is maximising the potential to earn interest on surplus cash balances, whilst at the same time having sufficient funds available to meet day to day requirements.

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

General

During 2022/23, our Finance team continued to deliver monthly management accounts to a strict reporting timetable with figures provided to the Senior Leadership Team on the 10th working day after each month end. This provided timely and accurate information for decision making. Two budget reforecasts were performed during 2022/23 after production of December and February actuals providing the Board with updated views of the year end position. These were reviewed in detail at meetings of the Audit and Finance Sub-Committee.

There continues 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 at weekly meetings of the Senior Leadership Team and where appropriate customer facing colleagues are engaged in assisting recovery of difficult debts.

During the year, an account was opened with Charities Aid Foundation which enabled use of their portal with Flagstone in order to place cash on short term deposit. Interest received via these deposits amounted to £33,102. The balance remaining on deposit at 31 August 2023 stood at £1,894,096.

The statement of financial activities shows a net expenditure for the year of £113,680 (2022: net income of £157,104). The net income on unrestricted funds was £55,961 (2022: £661,603) and there was a net expenditure of £169,641 on restricted funds (2022: net expenditure of £504,499).

Reserves

It is the policy of the Board that cumulative unrestricted funds available to cover operational costs should be maintained at a minimum figure of £1,500,000. In addition, cash balances should be maintained at a minimum of £1,000,000 throughout any financial year in order to cover any immediate operational costs and to enable the Company to respond to changes in government policy and funding streams, with an increased balance at 31 August in any year of £1,500,000 to reflect the seasonal nature of the company’s cash flow. This reserves policy is reviewed annually by the Board in order to ensure its adequacy in relation to the scale of the Company’s operations.

At 31 August 2023 there were unrestricted funds carried forward of £2,660,525 (2022: £2,604,564), therefore the reserves policy level of available funds of £1,500,000 has been reached. Given the general economic uncertainty and the budgetary pressures on our main consumer group (schools) it has been agreed that it is appropriate to maintain reserves at a higher level than the policy requires.

The cash balance at the year ended 31 August 2023 stands at £2,944,847 (2022: £2,768,242), an increase on the prior year of £176,605.

Going Concern

The financial statements have been prepared under the going concern basis. The Directors reviewed and agreed on the budget for the financial year 2022/23 which indicated that, barring unforeseen circumstances, the charity will continue to be able to meet all obligations as they fall due and will over time be able to build suitable reserves. The budget is subject to regular reforecasting during the year which allows for remedial action to be taken if deemed required.

The Directors have paid close attention to the education landscape and the financial pressures faced by schools (the key customer group). School orders have been closely monitored, particularly in view of the current cost of living crisis and the related pressure on school budgets. Music delivery has now exceeded pre pandemic levels, although prices have not risen in line with inflation mindful of the need to ensure affordability. Income within school support is linked to national education policy and priorities, and the delivery portfolio adjusts accordingly. The Directors, therefore, have a reasonable expectation that SFE has adequate resources to continue in operational existence for the foreseeable future.

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

General

Services For Education (formerly S4E Limited) is a registered charity in England and Wales (No. 1148848) and a company (No. 07739831) limited by guarantee. It was set up by a Memorandum of Association on 15 August 2011 and is governed by its Memorandum and Articles of Association.

Services For Education (SFE) 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 learning and music to life.

The principal objects of the company are:

The company continues to focus on the quality of all services provided and to seek to expand both the range 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 bimonthly during the year. Two sub-committees of the Board exist: the Birmingham Music Education Partnership sub-committee and the Finance and Audit sub-committee. Trustees are generally asked to join one of these after a couple of months in role, according to their areas of interest and expertise. New trustees are elected and coopted under the terms of the Articles of Association and following an open recruitment process.

New trustees undertake a comprehensive induction process, which includes meetings with each member of the Senior Leadership Team and follow up meetings as required.

The Board of Trustees, is chaired by Sarah Smith.

Strategic management

Chief Executive

Authority to 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 to govern the organisation.

The Chief Executive is supported by the Senior Leadership Team (SLT) which comprises Lindsay Allen (HR Director); Tracy Carlton (Director of Marketing and Business Development); Stuart Birnie (Head of Music Service); Kirsty Jones (Head 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 longterm planning. A Strategic Oversight Group meets on a fortnightly basis, comprising three members of the Senior Leadership Team and the focus this year has been ensuring the implementation of key processes around costings and recruitment.

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Remuneration Policy for Key Personnel

The remuneration of the Chief Executive is set by the Board of Trustees/Directors based on advice from market recruitment specialists.

The remuneration of senior staff is set by the Chief Executive in consultation with the Chair of Trustees and is based on both advice from market recruitment specialists and on industry benchmarks depending on the discipline of the employee.

Employees

During the FY22-23 period, Services For Education employed 218 staff on average.

Regular weekly communications include an informal Monday video by the Chief Executive and a weekly written communication (In The Know) issued on a Wednesday. A more formal briefing is issued at the start of each term – either in-person at a training event or virtually. Staff Forum meetings are normally held bi-monthly, with additional meetings as required. Minutes from 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 at any time. Through these methods and local/departmental updates, colleagues have received regular and consistent information on business performance and planned developments. There were opportunities to bring colleagues together at informal social events in July and December 2023 which were warmly received by staff.

70.6% of colleagues completed the staff survey in January 2023 (2022: 75.3%), resulting in an engagement score of 72% (2022: 74%). Working with the external provider to ensure colleague anonymity, the survey structure has enabled the findings to be reviewed through different lenses, including down to departmental level. This has enabled action planning to be built on the results seen at a local level and encourage engagement through departmental managers.

Diversity and Inclusion

SFE is committed 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 to the best of their ability.

Our policy is to provide equality and fairness for all in our employment and in our provision of services, and not to 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. It is our policy to 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 tolerate direct or indirect discrimination against any person on grounds of age, disability, gender/gender reassignment, marriage/civil partnership, pregnancy/maternity, 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.

It is also the responsibility of all employees in their daily actions, decisions and behaviour, to endeavour to promote these concepts, to comply with all relevant legislation and to ensure they do not discriminate against colleagues, customers, suppliers or any other person associated with the business.

In adopting these principles, SFE:

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Directors (who are also Trustees of SFE for the purposes of charity law) 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 Practice).

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 of the state 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:

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 charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors’ report is approved has confirmed:

Approved by order of the members of the board of Trustees and signed on their behalf by:

Sarah Smith Chair of Trustees Date: 18 March 2024

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SERVICES FOR EDUCATION LIMITED

(A 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 (the 'charitable company') for the year ended 31 August 2023 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. 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 to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements 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 matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

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

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

Page 18

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

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

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

Our assessment focussed on key laws and regulations the charitable company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, Charities Act 2011, taxation legislation, data protection, anti-bribery and employment legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial 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 reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to 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.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Page 19

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED (CONTINUED)

Use of our report

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

Glen Bott FCA (Senior statutory auditor)

for and on behalf of

Cooper Parry Group Limited Chartered Accountants Statutory Auditor Cubo Birmingham Office 401, 3rd Floor Two Chamberlain Square Birmingham B3 3AX

Date: 4 April 2024

Page 20

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investment income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
23,431
4,962,447
38,859
5,024,737
4,968,776
4,968,776
55,961
2,604,564
55,961
2,660,525		 Restricted
funds
2023
£
1,896,694
-
-
1,896,694
2,066,335
2,066,335
(169,641)
222,193
(169,641)
52,552		 Total
funds
2023
£
1,920,125
4,962,447
38,859
6,921,431
7,035,111
7,035,111
(113,680)
2,826,757
(113,680)
2,713,077		 Total
funds
2022
£
2,262,867
4,706,399
-
6,969,266
6,812,162
6,812,162
157,104
2,669,653
157,104
2,826,757

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 24 to 39 form part of these financial statements.

Page 21

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee) REGISTERED NUMBER: 07739831

BALANCE SHEET AS AT 31 AUGUST 2023

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one
year
13
Net current assets
Total assets less current liabilities
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 891,124
2,944,847
3,835,971
(1,473,161)		 2023
£
350,267
350,267
2,362,810
2,713,077
2,713,077
2,713,077
52,552
2,660,525
2,713,077		 888,301
2,768,242
3,656,543
(1,293,674)		 2022
£
463,888
463,888
2,362,869
2,826,757
2,826,757
2,826,757
222,193
2,604,564
2,826,757

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

Sarah Smith Chair of Trustees

Date: 18 March 2024

The notes on pages 24 to 39 form part of these financial statements.

Page 22

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

Note
Cash flows from operating activities
Net cash used in operating activities
16
Cash flows from investing activities
Purchase of tangible fixed assets
11
Net cash used in investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
17		 2023
£
192,976
(16,371)
(16,371)
-
-
176,605
2,768,242
2,944,847		 2022
£
222,248
(34,649)
(34,649)
(250,000)
(250,000)
(62,401)
2,830,643
2,768,242

The notes on pages 24 to 39 form part of these financial statements

Page 23

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

1. General information

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, Holt Court, Holt Street, Birmingham Science Park, Aston, Birmingham, B7 4AX.

The financial statements are prepared in sterling, which is the functional and presentational currency of the Charity. Monetary amounts in these financial statements are rounded to 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.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 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 accounting policy.

2.2 Going concern

The financial statements have been prepared under the going concern basis. The Directors reviewed and agreed on the budget for the financial year 2023/24 which indicated that, barring unforeseen circumstances, the charity will continue to be able to meet all obligations as they fall due and will over time be able to build suitable reserves. The budget is subject to regular reforecasting during the year which allows for remedial action to be taken if deemed required.

The Directors have paid close attention to the education landscape and the financial pressures faced by schools (the key customer group). School orders have been closely monitored, particularly in view of the current cost of living crisis and the related pressure on school budgets. Music delivery has now exceeded pre pandemic levels, although prices have not risen in line with inflation mindful of the need to ensure affordability. Income within school support is linked to national education policy and priorities, and the delivery portfolio adjusts accordingly. The Directors, therefore, have a reasonable expectation that SFE has adequate resources to continue in operational existence for the foreseeable future.

Page 24

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.3 Income

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 services is recognised in the Statement of Financial Activities on a receivable basis on completion of the service.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to 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 between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time 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 Interest receivable

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

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £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 its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Short-term leasehold property - over the term of the lease Fixtures and fittings - 25% on a straight line basis Computer equipment - 33.3% on a straight line basis Music instruments - 10%-13.3% on a straight line basis

Page 25

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

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

2.9 Liabilities and provisions

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

Liabilities are recognised at the amount that the 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 is based on the present value of those amounts, discounted at 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.

2.10 Financial instruments

The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.11 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

Benefits received and receivable 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 pattern of the lessee's benefit from the use of the leased asset.

2.12 Pensions

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

Page 26

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2. Accounting policies (continued)

2.13 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 to 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 to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience 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 concerning 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.

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
23,431
Grants
-
23,431		 Restricted
funds
2023
£
87,501
1,809,193
1,896,694		 Total
funds
2023
£
110,932
1,809,193
1,920,125

Included within Grants there is £1,809,193 from Arts Council England.

Unrestricted
funds
2022
£
Donations
28,757
Grants
-
28,757		 Restricted
funds
2022
£
75,632
2,158,478
2,234,110		 Total
funds
2022
£
104,389
2,158,478
2,262,867

Page 27

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

4. Income from donations and legacies (continued)

Included with Grants there is £1,990,278 from Arts Council England and £168,200 from the Culture Recovery Fund.

5. Income from charitable activities

Unrestricted
funds
2023
£
Music
3,959,890
School support
998,981
Other
3,576
4,962,447		 Total
funds
2023
£
3,959,890
998,981
3,576
4,962,447
Unrestricted
funds
2022
£
Music
3,667,936
School support
1,033,061
Other
5,402
4,706,399		 Total
funds
2022
£
3,667,936
1,033,061
5,402
4,706,399

Included within Other is income of £2,632 claimed under the Government's Coronavirus Job Retention Scheme (CJRS).

6. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Investment income 38,859 38,859 -

Page 28

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

7. Analysis of expenditure by activities

Music
School support
Other		 Activities
undertaken
directly
2023
£
4,684,421
627,818
-
5,312,239		 Support
costs
2023
£
1,498,547
223,233
1,092
1,722,872		 Total
funds
2023
£
6,182,968
851,051
1,092
7,035,111
Music
School support
Other		 Activities
undertaken
directly
2022
£
4,187,190
653,956
-
4,841,146		 Support
costs
2022
£
1,692,165
272,707
6,144
1,971,016		 Total
funds
2022
£
5,879,355
926,663
6,144
6,812,162

Of the total expenditure on charitable activities in the prior year of £6,812,162; £4,073,553 related to unrestricted funds and £2,738,609 related to restricted funds.

Page 29

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Music resources
Performance costs
Venue hire
Project costs
Travel & subsistence
Training
Consultancy
Staff costs
Depreciation
Music resources
Performance costs
Venue hire
Project costs
Travel & subsistence
Training
Consultancy		 Direct costs
- Music
2023
£
4,153,258
122,735
27,463
171,393
116,847
-
42,689
6,605
43,431
4,684,421
Direct costs
- Music
2022
£
3,611,845
123,899
90,382
164,785
104,717
-
41,010
6,970
43,582
4,187,190		 Direct costs
- School
Support
2023
£
528,027
-
-
-
1,376
38,800
-
-
59,615
627,818
Direct costs
- School
Support
2022
£
486,941
-
-
-
2,178
45,796
-
-
119,041
653,956		 Total
funds
2023
£
4,681,285
122,735
27,463
171,393
118,223
38,800
42,689
6,605
103,046
5,312,239
Total
funds
2022
£
4,098,786
123,899
90,382
164,785
106,895
45,796
41,010
6,970
162,623
4,841,146

Page 30

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Other staff costs
Depreciation
Project costs
Travel & subsistence
Training
Office costs
Premises costs
Insurance
Marketing and publicity
Professional fees
Bank charges
Irrecoverable VAT
Governance costs		 Direct costs
- Music
2023
£
784,455
89,818
6,385
62,039
906
29,718
81,713
214,675
23,365
46,670
22,798
1,808
122,757
11,440
1,498,547		 Direct costs
- School
Support
2023
£
104,953
13,010
871
19,123
124
4,052
20,620
29,274
3,186
6,364
3,109
247
16,740
1,560
223,233		 Direct costs
- Other
2023
£
-
-
-
-
-
-
-
-
-
-
-
1,092
-
-
1,092		 Total
funds
2023
£
889,408
102,828
7,256
81,162
1,030
33,770
102,333
243,949
26,551
53,034
25,907
3,147
139,497
13,000
1,722,872

Page 31

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

7. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Music
2022
School
support
2022
£
£
Staff costs
1,056,856
143,616
Other staff costs
85,513
12,162
Depreciation
7,415
1,011
Project costs
67,208
48,244
Travel & subsistence
722
98
Training
30,068
4,100
Office costs
100,313
16,557
Premises costs
132,404
18,055
Insurance
21,871
2,982
Marketing and publicity
49,643
6,770
Professional fees
21,646
2,952
Bank charges
666
91
Irrecoverable VAT
107,720
14,689
Governance costs
10,120
1,380
1,692,165
272,707
8.
Auditor's remuneration
Fees payable to the Company's auditor for the audit of the Company's
annual accounts
Fees payable to the Company's auditor in respect of:
All non-audit services not included above
9.
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Other
2022
£
-
-
-
-
-
-
-
-
-
-
-
6,144
-
-
6,144
2023
£
12,000
1,000
2023
£
4,770,940
392,481
407,272
5,570,693		 Total
funds
2022
£
1,200,472
97,675
8,426
115,452
820
34,168
116,870
150,459
24,853
56,413
24,598
6,901
122,409
11,500
1,971,016
2022
£
10,500
1,000
2022
£
4,528,804
377,307
393,147
5,299,258

Page 32

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SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

9. Staff costs (continued)

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

Music
School support
Administration
Fundraising		 2023
No.
190
9
19
-
218		 2022
No.
189
8
18
1
216

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

2023 2022
No. No.
In the band £60,001 - £70,000 2 1
In the band £70,001 - £80,000 2 -
In the band £80,001 - £90,000 1 2
In the band £90,001 - £100,000 1 1
In the band £100,001 - £110,000 1 -

The total employee benefits received by key management personnel in the year was £636,564 (2022: £610,163).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 August 2023, no Trustee expenses have been incurred (2022 - £NIL).

Page 33

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

11. Tangible fixed assets

Short-term
leasehold
property
£
Cost or valuation
At 1 September 2022
93,406
Additions
-
At 31 August 2023
93,406
Depreciation
At 1 September 2022
93,406
Charge for the year
-
At 31 August 2023
93,406
Net book value
At 31 August 2023
-
At 31 August 2022
-
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Fixtures and
fittings
£
134,421
9,431
143,852
124,667
7,257
131,924
11,928
9,754		 Computer
equipment
£
93,919
-
93,919
93,919
-
93,919
-
-		 Musical
Instruments
£
3,257,621
6,940
3,264,561
2,803,487
122,735
2,926,222
338,339
454,134
2023
£
794,083
3,426
93,615
891,124		 Total
£
3,579,367
16,371
3,595,738
3,115,479
129,992
3,245,471
350,267
463,888
2022
£
804,556
2,650
81,095
888,301

12. Debtors

Page 34

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

13. Creditors: Amounts falling due within one year

Trade creditors
Other creditors
Accruals and deferred income
Deferred income at 1 September 2022
Resources deferred during the year
Amounts released from previous periods		 2023
£
121,997
173,667
1,177,497
1,473,161
2023
£
848,989
1,311,958
(1,100,555)
1,060,392		 2022
£
99,301
209,623
984,750
1,293,674
2022
£
814,996
920,004
(886,011)
848,989

Deferred income relates to income received in advance of service delivery for 2023/2024.

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Restricted funds
Arts Council England
Other
Total of funds		 Balance at 1
September
2022
£
2,604,564
166,825
55,368
222,193
2,826,757		 Income
£
5,024,737
1,809,193
87,501
1,896,694
6,921,431		 Expenditure
£
(4,968,776)
(1,976,018)
(90,317)
(2,066,335)
(7,035,111)		 Balance at
31 August
2023
£
2,660,525
-
52,552
52,552
2,713,077

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
Arts Council England
SACRE
Other
Culture Recovery Fund
Total of funds		 Balance at
1
September
2021
£
1,942,961
166,825
5,480
95,187
459,200
726,692
2,669,653		 Income
£
4,735,156
1,990,278
-
75,632
168,200
2,234,110
6,969,266		 Expenditure
£
(4,073,553)
(1,990,278)
(5,480)
(115,451)
(627,400)
(2,738,609)
(6,812,162)		 Balance at
31 August
2022
£
2,604,564
166,825
-
55,368
-
222,193
2,826,757

Arts Council England fund is 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 relating to religious education.

Other restricted funds are an aggregate of smaller donations for specific aspects of our services.

The Culture Recovery Fund provided emergency funding to support the charity with the financial impact of Covid-19 pandemic and to be able to continue it's charitable activities.

15. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
350,267
Current assets
3,783,419
Creditors due within one year
(1,473,161)
Total
2,660,525		 Restricted
funds
2023
£
-
52,552
-
52,552		 Total
funds
2023
£
350,267
3,835,971
(1,473,161)
2,713,077

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����������������������������������������������������������

SERVICES FOR EDUCATION LIMITED (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year
Unrestricted
funds
2022
£
Tangible fixed assets
463,888
Current assets
3,434,350
Creditors due within one year
(1,293,674)
Total
2,604,564		 Restricted
funds
2022
£
-
222,193
-
222,193		 Total
funds
2022
£
463,888
3,656,543
(1,293,674)
2,826,757

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

Net income/expenditure for the year (as per Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Increase in debtors
Increase in creditors
Net cash provided by operating activities
17.
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 2023
£
(113,680)
129,992
(2,823)
179,487
192,976
2023
£
2,944,847
2,944,847		 2022
£
157,104
132,325
(243,512)
176,331
222,248
2022
£
2,768,242
2,768,242

Page 38

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SERVICES FOR EDUCATION LIMITED

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

18. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2022
£
2,768,242
2,768,242		 Cash flows
At 31
August 2023
£
£
176,605
2,944,847
176,605
2,944,847		 Cash flows
At 31
August 2023
£
£
176,605
2,944,847
176,605
2,944,847
2,944,847

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 £407,272 (2022: £393,147).

20. Operating lease commitments

At 31 August 2023 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2023
£
44,536
38,944
83,480		 2022
£
109,246
79,770
189,016

During the year £109,246 (2022: £89,045) has been recognised as an expense in the Statement of financial activities.

21. Related party transactions

During the year, services totalling £78,255 (2022: £53,836) were provided to Birmingham Diocesan MultiAcademy Trust in which Mrs S E Smith and Miss S Bell are also Directors. At the year end £29,625 (2022: £14,397) was due to Services for Education Limited.

During the year, services totalling £6,050 (2022: £6,500) were provided to All Saints Multi-Academy Trust, Birmingham in which Mrs S E Smith is also a Director. At the year end £Nil (2022: £Nil) was due to Services for Education Limited.

Page 39