DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 Company number.. 07739831 Charity number.. 1148848 Services For Education TRUSTEES REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 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 2024 Trustees Martin Hall, Chair Sarah Smith Laura Williams (resigned 18 March 20241 Shimri Vachter (appointed 19 March 2024, resigned 20 February 20251 David Bolton Paul Stone Joanna Cooney Jory Debenham Jamie Barry Iresigned 17 July 20241 Peter Borg-Bartolo Company registered number 07739831 Charity registered number 1148848 Registered office Unil 3, Holt Court Holl Street Birmingham B7 4AX Company secretary David Alcock Chief executive officer Sharon Bell Independent auditor Cooper Parry Group Limited Statutory Auditor Cubo Birmingham Two Chamberlain Square Birmingham B3 3AX Page 1 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 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.. Teaching pupils leaming vocal and a diverse range of instruments to build technical and performance skills alongside confidence and creativity, and encourage pursuit of music-based careers, as well as participation in a wide variety of musical experiences. Specialist work with SENDldisadvantaged groups - to increase engagement and allainment Specialist work with Early Year settings- lo promote a positive start lo life and learning Our Music School to support lifelong learning and encourage the love of music amongst young people and adults Working with adults to promote wellbeing and positive mental health in later life Bespoke consultancy, advice and professional development programmes enabling school leaders, educators and governors lo raise attainment levels, and develop and implement initiatives that improve health, wellbeing, standards and outcomes to ensure all children and young people realise their full potential academically, physi￿lIY and emotionally. To enable schools, wider educational settings, and those organisalions working with children and young people lo develop safeguarding policy and practice that ensures the needs of all are recognised and met efficienuy and effe¢lively. Support, guidance, and development activities to those in the earliest stages of their teaching career lo enable them to become highly skilled, leading-edge practitioners. Page 2 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Our Values Our values are extremely important to us as these underpin our vision and mission= VALUE FOR MONEY SECURE EDUCATION PHILOSOPHY E￿￿h•fig dts pfo4id lo •wd tts chNi14bl• intrybty of pwp(¥g• v*d h BENEFITING OUR CUSTOMERS PASSION E%*ythiry vrt do is f(w i Everything we do is with passion and care Page 3 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 CHAIR'S INTRODUCTION Welcome to our 2023124 Annual Report and Accounts. We have enjoyed another incredible year and been encouraged to see the impact of our work across the City of Birmingham and further afield. Some of the greatest memories include the smiles of delighted school children as they come together to make music, the positive response from schools and their staff to our training courses - and the joy we witness in the community when supporting adults facing challenges and disadvantage. These are the reason why we exist. We have been appointed by Arts Council England as one of 43 new Music Hub Lead Organisations in England as part of a national programme lo provide high-quality music education for all children and young people. This is great news for us and Birmingham, and a reflection of the tremendous efforts made by all our staff. Our Music Service has increased the number of free music ensembles to 113 to embrace music of all types and genres. Ensembles enable children lo play music with their peers and perform at concerts including our Youth Proms, Spring and Festive Concerts- all joyous events. In November 2023 our 120-slrong Bimiingham Schools, Symphony Orchestra and our Azaad Dhol Drumming Group performed before an audience of 5,000 proudly representing Birmingham al the Music for Youth Proms al London's Royal Albert Hall. We have been recognised in the Music and Drama Awards where our partnership with Soundaboul was judged overall winner for Excellen￿ in SEND. Our School Support team has further developed its courses, conferences and webinars covering subjects ranging from mental health & wellbeing to slatulory assessment ensuring schools, Iruslees and governors have expert informed resources. Our inaugural Reading Conference for Primary Teachers received great feedback. One delegate, an Assistant Headleacher, paid Iribule lo the "amazing speakers and subject areas to help get a whole array of infomialion about the important and relevant aspects of reading" An impressive 96010 of Headleachers rated our training as meeting or exceeding expectations. Meanwhile, our Health for Life programme, now in its thirteenth year, encouraged 3,000 children and their families lo enjoy a proactive approach to developing a healthy lifestyle. SUPFX)rted by Michelin- trained chef and internet sensation, Poppy O'Toole. We were also delighted lo ￿ judged Training ProviderlEducalional Establishment of the Year in the Midlands Service Excellence Awards - another great accolade lo our staff and their work. l am grateful for all the commitment and enthusiasm of colleagues, trustees. partners and stakeholders as well as donors and funders including Arts Council England, businesses and individuals, without whom our work would not be possible. SW by.. DD4$D Chair of Trustees Page 4 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 TRUSTEES REPORT The Trustees and Directors of Services For Education Limited present their annual and strategic report and audited financial slalemenls for the year ended 31 August 2024. The company trades under the name Services For Education ISFEI and will be referred to as SFE in the rest of this document. The financial ststemenls have been prepared in accordance with the accounting policies set out in note 2 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 Practi￿ applicable lo 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-lo-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 facelonline update training to help keep safeguarding at the forefront of people's thinking and embed a professional curiosity. All new stsff 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 uplscenarios that we encounter, lo support all staff. The SFE Heads of Service jointly carry out an annual review of all training content lo ensure this is in line with current policy and guidance (Keeping Children Safe in Education and Working Together lo SafegLJard Children). SFE has six members of stsff who are trained as Designated Safeguarding Leads IDSLI, two of whom are members ofthe Senior Leadership Team, and who are required to maintain their slalus through completing bi-annual update training. These six members of stsff 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 practi is aligned lo the Birmingham Safeguarding Children Partnership structures and procedures. All colleagues are required lo 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 lo the Fundraising Promise to ensure our fundraising activities are legal, open, honest, and respectful. This year, we reviewed and updated our fundraising policies to ensure that we are aligned with the Fundraising Regulator's set of updated standards. 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. Moving into 2025, we will be focussing on enhancing our individual, corporate and community impact by continuing to create more Page 5 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 compelling slory-based and oulcome-based communications so that we start to build a relationship with our donors rather than just being transactional in our approach. In 2023124 SFE received no complaints aboLJt 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 lo 32,000 children per week and deliver an extensive portfolio of training and 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. These colleagues are supported by several teams of highly skilled individuals without whom their work would not be possible. The importance of quality and continuous improvement is a shared priority across the organisalion. School Support Over the last 12 months School Support Services has continued lo 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 bul also taking into consideration the subject matter and what is most appropriate for embedding the leaming. Delegate feedback is continuing to be closely monitored lo ensure the quality of training and testimonials are received following consultancy work. Colleagues continue lo be upskilled in digital delivery, lo ensure a highly engaging and inleraclive learning experience as our online offer continues to grow. We have maintained our partnership with BPN, along with enhancing our bespoke, consullan¢y offer ensuring that Education Advisors remained Current in their knowledge and understanding of present education issues impacting sch(x)Is. This professional development for the School Support team is provided via half lermly CPD. The School Support servi￿ has also developed ils 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. We maintain a positive working relationship with BCC through our work on both the Statutory Assessment Duly and SACRE. Our work with Mondelez continues to thrive with our Health For Life programme now working with its thirteenth 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 practi￿ 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 IBCMGI and singing with our vocal team and Ex Cathedra (hub partners). We delivered our schools, Music Conference face to face in March al the MAC. We looked at the level of need required from schools and provided CPD for SFE staff and school-based colleagues on.. National Plan For Music Education 2 & Model Music Curriculum staff need to adapt A focus on high-quality leaching and learning and building and developing partnerships, progression and pathways for all young people in Birmingham Annual Safeguarding SFE'S response and how Page 6 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Developing as an inclusive practitioner with practical case-studies from fellow music service colleagues A trauma informed and trauma responsive approach Bimiingham Teaching and Learning Framework and A Common Approach 2.0 WCIT Training - developing pedagogy Introducing School l Area Ensemble Repertoire Bringing music from all sources alive in the classroom Trinity College and Sounds of Intent Accredilalion Creating the ultimate Primary Music Teacher Tool Kil Awards for Young Musicians IAYMI acclaimed Identifying Musical Talent and Potential Composition in Primary Schools Leadershiplmanagemenl training for assistanlslLP with Andy Hind Singing - What is a musical sch￿)1? Technology in the classroom - Charanga training Building a music curriculum- for secondary teachers aligning to NPME2 What the music curriculum looks like in a special school Online resources Support for ECT teachers in Birmingham We continue lo improve and develop our 'in house, CPD with the wider music team. Our whole staff and departmental training days have been tsrgeled around the SFE standards. These are based directly on the Teacher Standards and will help to raise the quality of delivery across the entire team. We have also refined our PDR pr￿SSeS to ensure these are aligned lo these standards and ensure staff are undertaking training and support that is relevant to them. Customer Feedback Custorner feedback is obtained from all course delegates in School Support Servictr response rates have improved by collecting feedback online. Throughout the move to online delivery the feedback from course delegates has remained positive with 980/0 of delegates rating trainer delivery as excellent174 /01 or good, and 970/0 rating the course overall as excellenl1680/0l or good. MOW would you rnre the tiwner dvI1v￿. QualiEy¢f Courde prO￿d￿. Howwdldid the ¢OurgemeeT HOwwOuldyou rare thècourte overall? expectations. Poor ver￿e txcdl•nt Number of completed responses = 1,783 Page 7 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 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 OLJr fLJnding agreement with Arts Council England we receive a quarterly feedback leller. The feedback from Arts Council confimed that the risk rating for the period September to December 2024 had stayed at a scoring of 5 (minor risk}- We have close working relationships with many schools across the city. and feedback from headleachers and school-based staff continues lo be overwhelmingly positive. OUR ACHIEVEMENTS AND PERFORMANCE The TrusleeslDirectors have taken note of the Charity Commission's guidance on public benefit in reviewing the aims and objectives and in planning aclivilies. In particular, the TrusleeslDireclors 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 lo those beneficiaries. TEACFIItyG OVER 32.000 CHILDREN MUSIC, WEE WE BRING MUSIC AND LEARNING TO LIFE PROVIDING OVER 113 FREE MUSIC ENSEMBLES OF HEADTEACHERS IN 2023124 RATED OUR TRAINING AS GOOD OR EXCELLENT SFE OF 2023124 COURSE ATTENDEES RATED OUR TRAINERS AS GOOD OR EXCELLENT 200 £21k RAISED THROUGH DONATIONS MILLION INCOME EMPLOYEES Page 8 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 2023124 2023124 is year four of'strategy 2025 - Creating Tomorrow Today,, outlining our roadmap for the next five years. Our ambitions are.. To revolulionise 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 services and resources To be a key partner for raising standards and attainment in edLJcalion in our city, region and nationally, through being the dislinclive leader in our sector providing agile and collaborative (resourceful, 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 organisalion for the long term that allows us lo support and progress key inilialives To make important contributions to our society and communities, particularly 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 lo in their work. They are intended to deliver a vibrant, resilient, and agile organisation fully equipped to deliver our vision and charitsble purpose. MAXIMISE IMPACT AND RESULTS f)ELIVER SUSTAINABLE GRowfH EXCELLENCE IN PRACTICE DEV'LOP EFFECTIVE STRATEGIC PARTNFRSHIPS INSPIRE AND ENGAGE INNOVATION AND CREATIVITY Page 9 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Al the stsrt of year 4 of Strategy 2025, 3 strategic priorities were identified leach contributing lo the themes outlined above), the progress against which is noted below.. 1. Retain the position of Hub Lead Organisation This was a key strategic objective during the 2023124 financial year. Arts Council England had previously announced a reduction in the number of Hub Lead Organisalions from 116 10 43 from September 2024. Unlike all other areas of the country, the geographical scope of the funding for Birmingham was unchanged but our appointment as Hub Lead Organisalion was confirmed in May 2024 following a competitive tender process. With the new funding agreement comes a more detailed reporting process, with many of the preparatory documents being completed in the period between May and August 2024. Detailed governance and oversight are provided by the Hub Lead Board, independently chaired by Steve Ball. 2. Re-imagining School Support Developments within the external environment have a significant impact on priorities in all areas across SFE, bul 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 lo consultancy. In addition to responding lo planned and anticipated changes in the education landscape, the team are regularly "horizon scanning" lo understand where potential options exist lo develop or evolve the product portfolio in the longer term. The team will eontinue to balance opportunities for new developments alongside continuing lo build on areas where SFE'S market presence is already strong and highly effective. There is a strong focus on utilisation of our advisors and the approach to pricing bespoke work, to ensure that the true cost to the organisation is represented. 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 infraslruclure, ensure the business can function effectively and efficiently and continues to invest in systems and resources for the future. During the year there was a specific focus on 'Fixing The Basics, with associated regular reporting to the Board. Future Plans Following the appointment as the HLO for Birmingham, a key priority for 2024125 is meeting land in time exceedingl the requirements of Arts Council England. This means closely working with our Hub Partners lo ensure that we are all aligned in our delivery priorities. The Importan￿ of diversity is a key theme which runs through the funding agreement- and ensuring that the hub partnerships represent the diversity of Bim)ingham. This diversity should also be represented both in the HLO Board. and the SFE Board of Trustees- as such il will be a focus in the January 2025 recruitment campaigns. Within our School Support work, we are conscious of the potential impact of any changes in education policy introduced by the new government. This is being closely monitored as this has the potential lo impact the requirements of schools. and so the portfolio of work offered by SFE. 2024125 is year 5 of the current strategic plan, and so there will be time spent on reviewing the current plan and considering which priorities need lo be reflected (potentially in a different way) in plans'Beyond 2025., At the core, SFE has a vision to 'Bring music and leaming lo life., This will not change going forward, bul il is important lo take the time to review the external environment and consider the potential influences on the future delivery of the vision. Page 10 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Sustainability SFE is committed lo identifying areas whereby we can reduce the impact on the environment from our operations and service delivery. We will address this through.. Developing colleague engagement and involvement Reviewing our operational activities through the lens of sustainability Working with suppliers to reduce impact During 2023124 SFE= Ensured that only digital programmes were available al all concerts Influenced the packaging of instrument supply to the music education sector through discussions with key suppliers Worked with VeolialpBone Music to explore the possibility of making musical instruments from recycled ABS plastic waste materials Replaced old strip lighting in ground floor kitchenlcafe area at Holt Court with energy efficient LED lighting Replaced old water healers with more modern and efficient equivalents Reduced use of single-use plastics Ensured old electrical equipment and eX￿sS cardboard packaging disposed of responsibly Page11 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 RISKS AND UNCERTAINTIES The Directors have assessed the major risks to whi¢h the company is exposed, in partiCLJlar those related to the operations and finances of the company and are satisfied that systems and procedures are in place to miligale our exposure lo 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 TrusteeslDirectors are.. reductions in demand for music and school support services, caused by budgetary pressures as schools and other establishments respond lo the current economic climate mitigated by.. working closely with customers to align delivery lo their circumstances, regularly monitoring developments in the education sector in order lo respondladapl our approaches redu¢lions in funding for music in schools through the Arts Council Grant andlor reductions in school funding which will result in reduced ability or willingness lo 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 impact of SFE'S services. changes in education policy impacting income streams in the School Support Servi mitigated by.. close monitoring of education 18ndscape 8nd regular meetings implemented with Birmingham 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 through a robust budget planning and management approach 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 invoice payment management and debt collection. During 2023124 SFE has further developed our cash flow forecasting approach which has enabled us to embed and mature our investment strategy and maximise the return on investment of surplus cash balances in fixed term deposit accounts via a savings platform operated by Flagstone Group Ltd whilst interest rates remain strong. Deposits span a variety of maturity dales Iwith fixed terms of be￿een 1 and 12 monlhsl, which allows SFE to balance day to day liquidity requirements alongside realising the benefit of fixed term investments. Page 12 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 FINANCIAL REVIEW AND RESULTS FOR THE YEAR General During 2023124, our Finance team continued to deliver monthly management accounts lo a strict reporting timetable with figures provided lo the Senior Leadership Team on the 1 Oth working day after each month end. This provided timely and accurate information for decision making. Two budget reforecasls were performed during 2023124 after production of De￿mber and February actuals providing the Board with updated views of the year end position. These were reviewed in detail al meetings of the Audit and Finan￿ Sub-committee. There continues to be a strict focus on credit control. Debtor balan￿S are reviewed al weekly meetings of the Senior Leadership Team and where appropriate customer facing colleagues are engaged in assisting recovery of difficult debts. A key metric introduced during 2023124 was that of tracking debtor days on a weekly basis. Debtor days have consistently remained around 35 days during the year. During 2023124 we were able to continue placing cash on short term deposit in our Charities Aid Foundation account using their portal with Flagstone. Deposits were placed on a range of terms with an emphasis of maximising return at minimal risk. Interest received via these deposits amounted to £106,66812023.. £33,102). The balance remaining on deposit at 31 August 2024 stood at £ 2,297,287 12023= £1,894.0961. The statement of financial activities shows a net income for the year of £157,52212023.' net expenditure of £113,680). The nel income on unrestricted funds was £169,17312023.. £55,961) and there was a net expenditure of £11,651 on reslricled funds12023: net expenditure of £169,641). Reserves It is the policy of the Board that cumulative unreslricled funds available lo cover six months staff costs should be maintained. 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. During the year ended 31 August 2024, six months staff costs amounted lo £2,730,758. As al 31 August 2024 there were unrestricted funds carried forward of £2,829,69812023.. £2,660,525), which is deemed sufficient lo cover six months stsff costs hence the reserves policy has been mel. The Trustees are comfortable that the current level of available funds would continue lo cover six months staff costs given current stsffing levels. Trustees continue lo take a cautious approach lo reserves given the underlying economic climate and in due course plan lo adopt a risk-based approach to the reserves poliey. Going Concern The financial slalements have been prepared under the going concern basis. The Directors reviewed and agreed on the budget for the financial year 2024125 which indicated that, barring unforeseen circumstances, the charity will continue lo be able to meet all obligations as they fall due and will over time be able lo build suitable reserves. The budget is subject to regular reforecasling during the year which allows for remedial action lo be taken if deemed required. The Directors have paid close allenlion to the education landscape and the financial pressures faced by schools Ilhe key customer group). School orders have been closely monitored, particulady 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 PrI￿S have not risen in line with inflation mindful of the need to ensure affordability. Income within school support is linked lo national education policy and priorities, Page 13 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 and the delivery portfolio adjusts accordingly. The Directors, therefore, have a reasonable expectstion that SFE has adequate resources to continue in operational existence for the foreseeable future. STRUCTURE, GOVERNANCE AND MANAGEMENT General SeNices For Education (formerly S4E Limited) is a registered charity in England and Wales {No. 11488481 and a company (No. 077398311 limited by guarantee. It was set up by a Memorandum of Association on 15 August 2011 and is governed by ils Memorandum and Arbcles 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-quality leaching and learning., the advancement of the care, safety and upbringing of children and young people by.. supporting and assisting those in need. their families and carers promoting their health advancing their education the advancement of the arts and culture, parbcularly 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 lo seek lo 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 bi-monthly during the year. Two sub-committees of the Board exist= the Hub Lead Organisation Board (formerly 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 lo their areas of interest and expertise. New trustees are elected and co-opted under the terms of the Articles of Association and following an open recruitment process. The membership of the Hub Lead Organisation IHLOI Board will increase during 2024125 to include represenlalives from amongst the wider stakeholders of SFE lin addition lo Trustees). This wider membership along with an Independent Chair, are requirements from Arts Council England lo ensure good governance and scrutiny of public funding. Steve Ball was appointed as the Independent Chair al the Board Meeting on 22 January 2024. 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 Martin Hall who took over from Samh Smith. having been appointed al the Board meeting on 16 Sept 2024. Page 14 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Strategic management Chief Executive Authority lo conduct the day-lo-day activities of Services For Education is delegated lo 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 oryanisalion. The Chief Executive is supported by the Senior Leadership Team ISLTI which comprises Lindsay Allen (HR Direclorl,. Tracy Carlton (Director of Marketing and Business Development),. Stuart Birnie (Head of Music Servicel- Kirsty Jones (Head of School Support Servicel- Sarah Marshall {Head of Shared Services)., and Carl Black IFinance Manager). At the end of August 2024. Stuart Birnie left the Music Service after 33-years' service - most recently as its Head and prior lo that Assistant Head. Stuart has been replaced by Richard Mabboll {from 27 August 20241- Richard started his musical career as a chorister before becoming an Assistant Headtescher and Specialist Leader of Education for Music working with schools in Yorkshire and Humber region lo enhan￿ the classroom music offer and build networks of music teachers enabling pedagogical developments. The Senior Leadership Team meets weekly, with additional monthly sessions focussing on strategy and long-lerm 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 implementslion of key processes around costings and recruitment. Remuneration Policy for Key Personnel The remuneration of the Chief Executive is sel by the Board of TrusteeslDirectors 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 advi￿ from market recruitment specialists and on industry benchmarks depending on the discipline of the employee. Employees During the FY23-24 period, Services For Education employed 220 staff on average. Regular weekly communications include an informal Monday video by the Chief Executive and a weekly written communication (ln The Knowl 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 dale, and archive copies are available through the SFE Sharepoint pages al any time. Through these meth(Ids and localldepartmental updates, colleagues have received regular and consislenl information on business performance and planned developments. There were opportunities lo bring colleagues together al informal social events in July and December 2024 which were warmly received by stsff. 63.90/0 of colleagues competed the staff survey in January 202412023.. 70.60/., 2022.. 75.301.>, resulting in an engagement score of 73°/012023'. 72 % 2022.. 74°/0}. Working with the external provider to ensure colleague anonymity, the survey structure has enabled the findings lo be reviewed through different lenses, including down lo departmental level. This has enabled action planning to be built on the results seen at a local level and encourage engagement through departmental managers. Page 15 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 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 the communities we engage with and work in an environment where everyone is ￿SpeCted and able to perform lo the best of their ability. Our policy is to provide equality and faimess for all in our employment and in our provision of services, and not to discriminate on grounds of gender, marital status, mce, ethnic origin, nationality, disability, sexual orientation, religion or age. SFE opposes all forms of unlawful and unfair discrimination. It is our policy lo provide a suitable environment for people with disabilities. All reasonable facilities will be provided for employees with disabilities lo perform their roles wilhoul difficulty or disadvantage. SFE is also supportive of our neurodiverse workforce and are continually developing our approach to ensuring all colleagues feel able to adjust their working arrangements to suit their needs, be this in connection with neurodiveisity, menopause or other factor. We will not tolerate direct or indirect discrimination against any person on grounds of age, disability, genderlgender reassignment, marriagelcivil partnership, pregnancylmaternity, 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, lo endeavour to promote these concepts, lo 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.. will not tolerate acts that breach this policy and all such breaches or alleged breaches will be taken seriously, fully investigated and may be subject to disciplinary action, where 8ppropriate. fully recognises ils legal obligations under all relevant legislation and codes of practice. will allow staff to pursue any matter through the internal procedures which they believe has exposed them to inequitable treatment within the scope of this policy. Copies of these pro¢edures are available to 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 patterns, wherever operationally feasible, to help employees to combine a career with their domestic responsibilities. will provide equal opportunity lo 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 their job effectively. will provide 811 reasonable assistance to 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 necessary. will distribute and publicise this policy statement throughout the company. Page 16 DoGusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Directors (who 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 AccouNling Practice). Company law requires the Directors lo prepare financial slalements for each financial year. Under company law the Directors musl not spprove the financial statements unless they are satisfied that they give a true and fair view of the stste 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 ststemenls, the Directors are required lo.. select suitable accounting policies and then apply them consistently., 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 lo any material departures disclosed and explained in the financial stslemenls., prepare the financial statements on the going concern basis unless il is inappropriate lo presume thst the charitsble company will continue in operation. The Directors are responsible for keeping adequate accounting records that are sufficient lo show and explain the charitable company's transactions and disclose with reasonable accuracy al 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 goveming the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. DISCLOSURE OF INFORMATION TO AUDITORS Each ofthe persons who are Directors at the time when this Directors, report IS approved has confirmed.. That so far as that Director is aware, there is no relevant audit information of which the charitable company s auditor is unaware. and that Director has taken all the steps that ought to have been taken as a Director in order lo be aware of any information needed by the charitsble company's auditor in connection with preparing this report and lo establish that the charitable company's auditor is aware of that information. Approved by order of the members of the board of Trustees and signed on their behalf by.. Swby.. Martinvalf Chair of Trustees DD4$D Date.. 24 March 2025 Page 17 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 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 Limiled Ilhe 'charilable companll for the year ended 31 August 2024 which comprise the Statement of financial activities, the Balan￿ 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 Acwunting Practice). In our opinion the financial statements.. give a true and fair view of the slate of the charitable companls affairs as at 31 August 2024 and of ils incoming resources and application of resources, including ils income and expenditure for the year then ended., have been property prepared in accordance with United Kingdom Cenerally 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 accordan￿ 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 Ethical Standard, and we have fulfilled OLJr other ethical responsibilities in accordan￿ 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 aLJdiling 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 identrfied any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable companls ability lo 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 lo going concern are described in the relevant sections of this report. Page 18 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SERVICES FOR EDUCATION LIMITED ICONTINUEDI other information The other information comprises the information included in the Annual report other than the financial slalemenls and our Auditor's report thereon. The Trustees are responsible for the other infom)alion contained within the Annual report. Our opinion on the financial slalements does not cover the other information and, eX￿p1 lo the exlenl otherwise explicitly slated 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 misslalements, we are required lo determine whether this gives rise to a material misslatemenl 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 lo report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work Undertaken in the course of the audit= the infom)alion given in the Trustees, Report for the financial year for which the financial statements are prepared is consislenl with the financial statements. the Trustees. Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and 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 to which Companies Act 2006 requires us lo report lo you if, in our opinion.. adequate accounting records have not been kept, or retums 8dequate for our audit have not been received from branches not visited by us,. or the financial slalemenls are not in agreement with the accounting records and returns., or certain disclosures of Trustees. remuneration specified by law are not made., or we have not received all the infomialion and explanations we require for our audit., or the Trustees were not entitled lo prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. 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 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 internal control as the Trustees determine is necessary lo 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 companls ability to continue as a going concern, disclosing, as applicable, mallers related 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 to do so. Page 19 **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: - obtaining an understanding of the legal and regulatory framework applicable to the charitable company and how the charitable company is complying with that framework, including agreement of financial statement disclosures to underlying documentation and other evidence; - obtaining an understanding of the charitable company’s control environment and how the charitable company has applied relevant control procedures, through discussions with Trustees and other management and by performing walkthrough testing over key areas; - obtaining an understanding of the charitable company’s risk assessment process, including the risk of fraud; - reviewing meeting minutes of those charged with governance throughout the year; and - performing audit testing to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. 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 20 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 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 charitable companls trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit wort( has been undertaken so that we might slate to the charitable companls trustees those mallers we are required lo 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 lo anyone other than the charitable company and ils members, as a body, for our audit work, for this report, or for the opinions we have formed. Glen Bott FCA (Senlor statutory audltorl for and on behalf of Cooper Parry Group Llmlted Stslulory Auditor Cubo Birmingham Two Chamberlain Square Bimingham B3 3AX Dale.. 4 April 2025 Page 21 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Total funds 2023 Note Income from- Donations and legacies Charitable activities Investment income 14,466 4,946,857 119,843 2,023,131 2,037,597 4,946,857 119,843 1,920,125 4,962,447 38,859 Total income 5,081,166 2,023,131 7,104,297 6,921,431 Expenditure on: Charitable activities 4,911,993 2,034,782 6,946,775 7,035,111 Total expenditure 4,911,993 2,034,782 6,946,775 7,035,111 Net movement In funds 169,173 111,6511 157,522 {113,6801 Reconciliation of funds.. Total funds brought forward Nel movement in funds 2,660,525 169,173 52,552 111,6511 2,713,077 157,522 2,826,757 {113,6801 Total funds carried fonNard 2,829,698 40,901 2,870,599 2,713,077 The Ststement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 25 to 40 form part of these financial statements. Page 22 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) REGISTERED NUMBER: 07739831 BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Fixed assets Tangible assets 227,237 350,267 227,237 350,267 Current assets Debtors 12 692,136 3,312,437 891,124 2,944,847 Cash at bank and in hand 4,004,573 3,835,971 Creditors.. amounts falling due within one year 13 11,361,211> 11,473,161> Net current assets 2,643,362 2,362,810 Total assets less current Ilabllltles 2,870,599 2,713,077 Net assets excluding pension asset 2,870,599 2,713,077 Total net assets 2,870,599 2,713,077 Charlty funds Restricted funds Unrestricted funds 14 40,901 2,829,698 52,552 2,660,525 14 Total funds 2,870,599 2,713,077 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 entities subject lo the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. CE33AAAA9DDN$D. Martin Hall Chair of Trustees Dale.. 24 March 2025 The notes on pages 25 to 40 fom) part of these financial statements. Page 23 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Note Cash flows from operating activities Nel cash used in operating activities 16 374,554 192,976 Cash flows from Investlng actlvltles Purchase of tangible fixed assets 16,9641 116,3711 Net cash used in investing activities 16,9641 116,3711 Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 367,590 176,605 2,944,847 2,768,242 Cash and cash equivalents at the end of the year 17 3,312,437 2,944,847 The notes on pages 25 to 40 fomi part of these financial stslemenls Page 24 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 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 Unil 3, Holt Court, Holl Street, Birmingham Science Park, Aston, Birmingham, B7 4AX. The financial slalements are prepared in sterling, which is the functional and presenlalional 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 10 £1 per member. Accounting policies 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. servI￿s For Education Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise slated 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 2024125 which indicated that, barring unforeseen circumstances, the charity will continue lo be able lo meet all obligations as they fall due and will over time be able to build suitable reserves. The budget is subject lo regular reforecasling during the year which allows for remedial action to be taken if deemed required. The Directors have paid close allenlion lo the education landscape and the financial pressures faced by schools Ithe key customer group). School orders have been closely monitored, particularly in view of the current cost of living crisis and the related pressure on sch(iol budgets. Music delivery has now ex￿eded pre pandemic levels, although pri￿S 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 25 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.3 Income All income is recognised once the Company has enlillemenl lo the income, il is probable that the income will be received and the amount of income receivable can be measured reliably. Income for services is rewgnised in the Statement of Financial Activities on a receivable basis on completion of the servi￿. Grants are included in the Ststemenl of financial activities on a receivable basis. The balan￿ of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balan￿ sheet. Where income is received in advan￿ of entitlement of receipt, ils recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is re￿ived, the income is accrued. 2.4 Expenditure Expenditure is recognised once there is a legal or Constructive obligation lo transfer ewnomic benefit to a third paty, it is probable that a transfer of economic benefits will be required in selllemenl and the amount of the obligation can be measured reliably. Expenditure is classified by aclivily. The costs of each activity are made up of the totsl of direct costs and shared costs, including support costs involved in undertaking each adivity. 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 allributsble lo 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 Companls 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 tho funds are deposited. 2.6 Tangible fixed assets and depreciation Tangible fixed assets costing £1,000 or more are capilalised 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, tsngible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement of wsl. 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 propety- over the term of the lease Fixtures and fittings 25.10 on a straight line basis Computer equipment 33.3 % on a straight line basis Music instruments 10 /0-13.3 10 on a slraighl line basis Page 26 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.7 Debtors Trade and other debtors are recognised al the selllemenl amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. 2.8 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm 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 al the Balance sheet dale as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised at the amount that the Company anlicipales il will pay to settle the debt or the amount it has received as advanced payments for the goods or servi￿8 it must provide. Provisions are measured al the best estimate of the amounts required lo 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 diswunt rate that reflects the risks specific lo the liability. The unwinding of the discount is recognised in the Slalement 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 al transaction value and subsequently measured al 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 in￿ntiVe lo sign an operating lease are recognised on a slraighl 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 repres8nls the amounts payable by the Company lo the fund in respect of the year. Page 27 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.13 Fund accounting General funds are unreslricled 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 charyed against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial slalements. Investment income, gains and losses are allocated to the appropriate fund. Critical accounting estimates and areas of judgment The Company makes estimates and assumptions Con￿rning the future. The resulting accounting eslimales and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the Carrwng amounts of assets and liabilities within the next financial year are discussed below. Eslimales 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 ￿n￿rnIng the future and other key sources of estimation uncertainly at the reporting date that have a significant risk of Causing a material adjustment lo the carrying amounts of assets and liabilities within the next financial year include depreciation rates for tangible fixed assets and their residual values. Income from donations and legacies Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Donations 14,466 53,402 1,969,729 67,868 1,969,729 Grants 14,466 2,023,131 2,037,597 Included within Grants there is £1,969,729 from Arts Council England. Page 28 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Income from donations and legacies (continued) Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Donations Grants 23,431 87,501 1,809,193 110,932 1,809,193 23,431 1,896,694 1,920,125 Included with Grants there is £1,809,193 from Arts Council England. Income from charltable actlvltles Unrestricted funds 2024 Total funds 2024 Music School support other 4,183,255 763,227 375 4,183,255 763,227 375 4,946,857 4,946,857 Unrestricted funds 2023 Total funds 2023 Music School support Other 3,959,890 998,981 3,576 3,959,890 998,981 3,576 4,962,447 4,962,447 Page 29 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Investment income Unrestricted funds 2024 Total funds 2024 Investment income 119,843 119,843 Unrestricted funds 2023 Total funds 2023 Investment income - local cash 38,859 38,859 Analysis of expenditure by activities Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Music 4,600,118 564,136 1,552,654 228,960 907 6,152,772 793,096 907 School support Other 5,164,254 1,782,521 6,946,775 Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Music 4,684,421 627,818 1,498,547 223,233 1,092 6,182,968 851,051 1,092 School support other 5,312,239 1,722,872 7,035,111 Page 30 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysis of expenditure by activities (continued) Analysis of direct costs Direct costs - School Support 2024 Direct costs Music 2024 Total funds 2024 Stsff costs Depreciation Music resources 4,041,779 124,003 32,187 181,046 131,501 490,032 4,531,811 124,003 32,187 181,046 131,851 37,800 38,992 5,260 81,304 Performance costs Venue hire 350 Project costs Travel & subsistence 37,800 38,992 5,260 45,350 Training Consultancy 35,954 4,600,118 564,136 5,164,254 Direct costs - School Support 2023 Direct costs Music 2023 Total funds 2023 Staff costs 4,153,258 122,735 27,463 171,393 116,847 528,027 4,681,285 122,735 27,463 171,393 118,223 38,800 42,689 6,605 103,046 Depreciation Music resources Performance costs Venue hire Project costs Travel & subsistence Training Consultancy 1,376 38,800 42,689 6,605 43,431 59,615 4,684,421 627,818 5,312,239 Page 31 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysis of expenditure by activities (continued) Analysis of support costs Direct costs School Direct costs Support Other 2024 2024 Direct costs Music 2024 Total funds 2024 Stsff costs Other staff costs 818,141 105,750 5,272 35,927 2,992 42,518 91,736 213,426 24,673 55,824 27,382 4,198 111,835 12,980 111,565 14,421 719 929,706 120,171 5,991 54,283 3,400 48,316 108,022 242,529 28,038 63,436 31,116 5,678 127,085 14,750 Depreciation Project costs Travel & subsistence Training Office costs 18,356 408 5,798 16,286 29,103 3,365 7,612 3,734 573 15,250 1,770 Premises costs Insurance Marketing and publicity Professional fees Bank charyes Irrecoverable VAT 907 Governance costs 1,552,654 228,960 907 1,782,521 Page 32 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysis of expenditure by activities (continued) Analysis of support costs (continued) School support 2023 Total funds 2023 Music 2023 Other 2023 Staff costs Other staff costs 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 11,440 104,953 13,010 871 889,408 102,828 7,256 81,162 1,030 33,770 102,333 243,949 26,551 53,034 25,907 3,147 139,497 13,000 Depreciation Project costs Travel & subsistence Training Office costs 19,123 124 4,052 20,620 29,274 3,186 6,364 3,109 247 Premises costs Insurance Marketing and publicity Professional fees Bank charges Irrecoverable VAT Governance costs 1,092 16,740 1,560 1,498,547 223,233 1,092 1,722,872 Auditorfs remuneration 2024 2023 Fees payable lo the Companys auditor for the audit of the Companys annual accounts 13,500 12,000 Fees payable lo the Company's auditor in respect of.. All non-audil services not included above 1,250 1,000 staff costs 2024 2023 Wages and salaries Social security costs Contribution to defined contribution pension schemes 4,697,080 370,996 393,441 4,770,940 392,481 407,272 5,461,517 5,570,693 Page 33 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 staff costs {continued} The average number of persons employed by the Company during the year was as follows.. 2024 No. 2023 No. Music 190 190 School support Administration 21 19 Fundraising 220 218 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2024 No. 2023 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 In the band £100,001 - £110,000 The total employee benefits received by key management personnel in the year was £614,347 {2023'. £636,564). 10. Tru$te&s' rgmungration and expenses During the year, no Trustees re￿iVed any remuneration or other benefils12023 - £NILI. During the year ended 31 August 2024, expenses tolalling £42.70 were reimbursed or paid diredy lo 1 Truslee12023 - £Nill. This related to a reimbursement of travel expenditure. Page 34 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 11. Tangible fixed assets Short-temi leasehold Fixtures and property fittings Computer Musical equipment Instruments Total Cost or valuatlon At 1 September 2023 Additions 93,406 143,852 6,227 93,919 3,264,561 737 3,595,738 6,964 At 31 August 2024 93,406 150,079 93,919 3,265,298 3,602,702 Depreciation At 1 September 2023 Charge for the year 93,406 131,924 5,991 93,919 2,926,222 124,003 3,245,471 129,994 At 31 August 2024 93,406 137,915 93,919 3,050,225 3,375,465 Net book value At 31 August 2024 12,164 215,073 227,237 At 31 August 2023 11,928 338,339 350,267 12. Debtors 2024 2023 Due within one year Trade debtors 578,643 1,444 112,049 794,083 3,426 93,615 Other debtors Prepayments and accrued income 692,136 891,124 Page 35 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Creditors: Amounts falling due within one year 2024 2023 Trade creditors other creditors Accruals and deferred income 79,328 173,663 1,108,220 121,997 173,667 1,177,497 1,361,211 1,473,161 2024 2023 Deferred income at 1 September 2023 Resources deferred during the year Amounts released from previous periods 1,060,392 848,989 1,052,040 1,311,958 11,192,4241 11,100,555) 920,008 1,060,392 Deferred income relates to income received in advance of service delivery for 202412025. Page 36 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Statement offunds statement of funds - current year Balance at 1 September 2023 Balance at 31 August 2024 Income Expenditure Unrestricted funds General Funds - all funds 2,660,525 5,081,166 14,911,993) 2,829,698 Restrlcted funds Arts Council England other 1,969,729 53,402 11,969,729> 165,0531 52,552 40,901 52,552 2,023,131 12,034,782) 40,901 Total of funds 2,713,077 7,104,297 16,946,775> 2,870,599 Page 37 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Statement of funds (continued) statement of funds - prior year Balance at Balance at 31 August 2023 September 2022 Income Expenditure Unrestricted funds General Funds - all funds 2,604,564 5,024,737 14,968,776) 2,660,525 Restrlcted funds Arts Council England other 166,825 55,368 1,809,193 87,501 11,976,0181 190,3171 52,552 222,193 1,896,694 12,066,335> 52,552 Total of funds 2,826,757 6,921,431 17,035,111> 2,713,077 Arts Council England fund is cor8 grant funding to support delivery of the music service. other restricted funds are an aggregate of smaller donations for specific aspects of our services. 15. Analysis of net assets between funds Analysis of net assets between funds - current period Unrestricted funds 2024 Restricted funds 2024 Total funds 2024 Tangible fixed assets Current assets 227,237 3,963,672 11,361,211) 227,237 4,004,573 11,361,211) 40,901 Creditors due within one year Total 2,829,698 40,901 2,870,599 Page 38 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Analysis of net assets between funds {continuedl Analysis of net assets between funds - prior period Unrestricted Restricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year 350,267 3,783,419 11,473,161) 350,267 3,835,971 11,473,161) 52,552 Total 2,660,525 52,552 2,713,077 16. Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltles 2024 2023 Nel incomelexpendilure for the period las per Statement of Financial Acliviliesl 157,522 {113,6801 Adjustments for: Depreciation charges Decreasellincreasel in debtors Increaselldecreasel in creditors 129,994 198,988 1111,9501 129,992 12,8231 179,487 Net cash provided by operating activities 374,554 192,976 17. Analysis of cash and cash equivalents 2024 2023 Cash at bank and in hand 3,312,437 2,944,847 Total cash and cash equivalents 3,312,437 2,944,847 Page 39 Docusign Envelope ID.. DE149A08-08364070-A8DD-52AA757BBDC6 SERVICES FOR EDUCATION LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. Analysis of changes in net debt At1 September At31 2023 Cash flows August 2024 Cash at bank and in hand 2,944,847 367,590 3,312,437 2,944,847 367,590 3,312,437 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 £393,441 12023.- £407,272). 20. Operating lease commitments At 31 August 2024 the Company had commitments lo make fLJture minimum lease payments under non- cancellable operating leases as follows.. 2024 2023 Not later than 1 year Later than 1 year and not later than 5 years 94,487 90,457 44,536 38,944 184,944 83,480 During the year £44,536 12023= £109,246} has been recognised as an expense in th8 Statement of financial activities. 21. Related party transactlons During the year, services lolalling £63,931 12023.. £78,255) were provided to Birmingham Diocesan Mulli- Academy Trust in which Mrs S E Smith and Miss S Bell are also Directors. Additionally, services lotalling £1,750 12023.. £Nill were purchased from Birmingham Diocesan Mulli-Academy Trust. Al the year end £30,81512023'. £29,625) was due lo Services for Education Limited. During the year, services tolalling £4,63812023.' £6,050) were provided lo All Saints Mulli-Academy Trust, Bim)ingham in which Mrs S E Smith is also a Director. Al the year end £Nil 12023.. £Nill was due to Services for Education Limited. Page 40