2021-08-31-accounts

Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto Report to Directors For the year ended 31 August 2021

Contact: Nathan Smith

E: [e-mail] W: randall-payne.co.uk T: 01242 776000

Randall & Payne I Audit Report – Adfecto

At a glance…

The financial statements for Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto include an unqualified audit report for the year ended 31 August 2021.

Our review of systems There were no Despite there being and controls highlighted unadjusted errors adjustments to your no areas for identified during our management accounts improvement during audit work. during the year end the year. accounts preparation process, these were in accordance with the activities of the Company and none were of concern. A full reconciliation is found at section 5 of the report.

The risks identified during the audit are included within section 3 of the report.

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Randall & Payne I Audit Report – Adfecto

Contents

• 1 At a glance… 2 Contents

• 3 1. Purpose – Report to the Board

• 18 5. Adjustments made during Accounts Preparation

• 20 6. Financial performance summary (4 year review)

• 23 7. Unadjusted / Adjusted Misstatements

• 1.1 Introduction

• 1.2 Audit communications

• 25 8. Internal Systems and Controls

• 1.3 Ethical standards

• 1.4 Audit scope

• 27 9. Judgemental Issues

  • 9.1 Depreciation rates

• 6

2. Audit Process

2.1 Year-end meeting and accounts pickup

2.2 Accounts preparation

• 29 10. Audit Opinion

  • 10.1 Statutory audit

• 2.3 Audit planning

• 2.4 Audit fieldwork and completion

• 31 11. Outstanding Matters to Complete the Audit

11.1 Post-balance sheet events

• 8 3. Audit Risks Identified at Planning Stage

• 14 4. Audit Testing Undertaken

  • 11.2 Letter of representation

• 33 12. Contact Programme

• 4.1 Trustees and related party transactions

• 4.2 Fixed assets

• 4.3 Income and debtors

• 4.4 Bank and cash

• 4.5 Purchases and creditors

• 4.6 Provisions

• 4.7 Wages and salaries

• 4.8 Journals

4.9 Client comments

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1. PURPOSE Report to Directors

This document covers the audit of the financial statements for Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto for the year ended 31 August 2021.

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Randall & Payne I Audit Report – Adfecto

1.1 INTRODUCTION

The International Standards on Auditing (UK and Ireland) 260 require us to communicate significant matters arising from our audit to you.

In accordance with our normal practice we have prepared this report to summarise the principal matters that came to our attention during the course of the audit, which may include:

• Key accounting issues impacting on the financial statements

• Outstanding matters to complete the audit

• Our views on accounting systems and controls

Where an audit meeting is to take place, it can also be used as an agenda for the purposes of that meeting.

1.2 AUDIT COMMUNICATIONS

We explained our audit responsibilities and objectives, procedures and limitations in our letter of communications. This letter also explains our approach to reporting audit findings to management, taking account of your requirements as well as our professional responsibilities. This document discusses only the major issues arising from our audit.

1.3 ETHICAL STANDARDS

We are required to, and have complied with, the new and revised Ethical Standards issued by the Financial Reporting Council (FRC) and all threats to our independence, as identified to you in our planning communication letter, have been properly addressed through appropriate safeguards.

Randall & Payne LLP has procedures in place to ensure that its partners and professional staff comply with both the FRC’s Ethical Standards and the Code of Ethics adopted by the Institute of Chartered Accountants in England and Wales.

No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention and we confirm that we are independent and able to express an objective opinion on the financial statements.

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Randall & Payne I Audit Report – Adfecto

1.4 AUDIT SCOPE

The scope of our work has already been communicated to you via our Audit Communications letter dated 1[st] October 2021.

Matters may come to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily detect all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you immediately.

We consider that the audit approach adopted will provide the Directors with the required confidence that a thorough and robust audit has been carried out and can confirm that, at the date of this report, we anticipate no modifications to our audit report as noted in section 10 of the report.

This report has been prepared for the sole use of the Directors and must not be disclosed to any third party, or quoted or referred to, without our prior consent. No responsibilities are accepted by Randall & Payne LLP towards any party acting or refraining from action as a result of this report.

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randall &payne 2. AUDIT PROCESS November 2021 Page 6

Randall & Payne I Audit Report – Adfecto

2.0 AUDIT PROCESS

During the audit process, there are three main sections: Audit planning Audit fieldwork Audit completion

The audit staff involved in the audit process were as follows: Ryan Moore Responsible Individual/Audit Director Nathan Smith Audit Manager

2.1 YEAR END MEETING AND ACCOUNTS PICKUP

The accounts information was uploaded to our secure online portal and a planning meeting held to discuss the year’s activities. We were in contact throughout the year on various matters including budgets, funding and systems, and as such this meeting is more of a catch-up rather than detailed assessment of activities and events. We encourage the company to discuss activities with us through the year so that we are up to date with events at the time of the audit.

2.2 ACCOUNTS PREPARATION

The information was then brought back to Randall & Payne’s offices to be prepared ensuring ethical requirements are met. These were then reviewed ready for the audit planning.

2.3 AUDIT PLANNING

Audit planning commenced once the accounts were prepared and available for review. Using the information obtained from the prior meeting and known activities within the company, a plan for how the audit is to be undertaken was established. Audit planning was then reviewed by Ryan, and an audit planning meeting took place between the team to share knowledge and to discuss and assess audit role and planning on how to approach the assignment.

2.4 AUDIT FIELDWORK AND COMPLETION

Nathan then completed the audit fieldwork on site on 5[th] and 6[th] October 2021. During this time, the finance team within the Company were readily available to assist us in accessing and finding documents and responding to queries.

Audit completion involves pulling together the findings from the audit fieldwork and concluding on the audit overall. Work is undertaken in order to communicate with the company and ensure our overall opinion on the financial statements are reasonable. This work is undertaken in Randall & Payne’s offices following completion of the fieldwork and accounts preparation.

Following the preparation of the audit completion, Ryan reviewed the file, ready for the accounts and Reports to Directors to be distributed prior to a meeting whereby they are then approved and signed.

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3. AUDIT RISKS IDENTIFIED AT PLANNING STAGE

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Areas that we identified during the audit planning stage as being a significant audit risk area, in respect of the financial statements and the audit process, are detailed below.

Revenue recognition	Revenue recognition	Revenue recognition	Revenue recognition
Key area of audit focus	Our approach	Findings	Conclusion
An inherent risk in the company is the recognition of revenue and ensuring that cut-off is appropriately treated. With a large amount of the income being SERCO based, this can be agreed to remittances throughout the period which are clearly dated. However, it is still key to ensure that any other income is appropriately recorded in the accounts.	Obtain external confirmations of the amount of SERCO income expected to be received and assess the source documentation upon which this is based. Ensure that amounts received in the bank agree to payment schedules or income is accrued for accordingly. For other income (i.e. computing hub, science sessions), ensure that any initial documentation triggering the sale (i.e. booking forms) agrees to the invoices being raised and monies received.	Income appears appropriately recognised in the accounts, with accrued income being recognised in order to apportion an appropriate level of income within the accounts. Other income appears to have been appropriately recognised in the accounts, with debtors appearing recoverable, therefore giving satisfaction that the income is indeed free from material misstatements.	Income appears to be appropriately presented in the accounts.

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Management override	Management override	Management override	Management override
Key area of audit focus	Our approach	Findings	Conclusion
Despite there being controls and systems in place, there is always the potential for management and key employees to be able to override the prescribed processes and alter the accounts in a material or fraudulent manner.	A review of the systems and controls was undertaken to ensure that these were sufficient. A walkthrough test on each area was also carried out to ensure that systems were being followed. Journal adjustments through the system were also reviewed. Key accounting estimates will be reviewed for bias in comparison to sector specific items. We will consider whether any of the transactions reviewed at any point of the audit are significant or unusual or outside of the company’s normal course of business.	Review of systems and controls did not highlight any significant errors or issues further to our Interim Systems Review. This has been reviewed further in section 7. Estimates and accounting policies used in the accounts appear reasonable and in line with expectations. No unexpected unusual transactions were identified as part of the audit.	There were no major issues identified through a review of the systems and controls.

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Randall & Payne I Audit Report – Adfecto

Related party transactions	Related party transactions	Related party transactions	Related party transactions
Key area of audit focus	Our approach	Findings	Conclusion
With the growing publicity that academic organisations are receiving, it is important to ensure that related party transactions are disclosed accordingly in the accounts. With Directors of the company also being key management in Academies, highlighting the transactions as a result of this relationshipis vital.	Review the declarations of interest and ensure that any transactions identified have been appropriately approved and disclosed in the accounts. Perform searches on the directors to identify any other entities that the company may have transacted with. Ensure disclosures with related parties are appropriately disclosed.	The related party transactions identified during the year in relation to staff recharges for member schools and working sessions. These were correctly disclosed within the accounts. Also appropriately disclosed were the expenditure transactions incurred on behalf of GITEP , as well as the computing hub income.	Related party transactions appear to have been appropriately disclosed and appear reasonable in the accounts.

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Randall & Payne I Audit Report – Adfecto

Going concern	Going concern	Going concern	Going concern
Key area of audit focus	Our approach	Findings	Conclusion
With income very dependent upon the demand for courses and SBM programmes, income can fluctuate from year to year and therefore can be difficult to forecast. This risk has an effect on the way in which the accounts are prepared and any opinions on the future of the company, and as such is a key area of focus.	Discuss the activities of the company in the current year and how future plans will affect the financial results going forward. Review budgets and forecasts prepared during the year and assess the basis upon which they have been prepared. Flex budgets and forecasts in order to assess how sensitive they are to change and whether this would impact the going concern basis.	The company has a significant amount of reserves built up from operating activities over the years, which allows for sufficient financial headroom to recover any deficits in the future. The next 12 months there are a number of key contracts which will require re- tendering for in order to secure substantial future income, however given the structure of the entity it is not considered to be a significant going concern risk. There is a deficit forecast for 2021/22, however the impact of this on going concern is mitigated by a significant cash at bank and reserves balance.	Despite the deficit forecast in 2021/22, the reserves and cash in hand is deemed sufficient to cover the deficit planned. We therefore consider the company able to continue as a going concern.

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Randall & Payne I Audit Report – Adfecto

Expenditure Cut-Off Key area of audit focus Our approach Findings Conclusion An inherent risk in any organisation A sample of post year-end invoices and bank Overall, based on the sample tested, Expenditure appears to is the recognition of expenditure payments are selected and traced through to expenditure cut-off appears to be be appropriately and ensuring cut-off is supporting documentation and then to the creditor appropriate with no material reflected within the appropriately treated. This in turn and accruals schedules to ensure they are included misstatement of expenditure which financial statements impacts on the completeness and within the correct financial year. appears to be included within the and free from material accuracy of creditor balances. correct financial year. misstatement. Invoices appear to have been allocated to the correct period, with accruals correctly adjusting for any transactions relating to 2021/22, invoiced post yearend.

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randall &payne 4. AUDIT TESTING November 2021 Page 14

Randall & Payne I Audit Report – Adfecto

4.0 AUDIT TESTING

During our audit testing, we split the accounts into defined sections, and undertake various tests on each section accordingly.

An overview of our testing is as follows.

4.1 TRUSTEES AND RELATED PARTY TRANSACTIONS

No matter on the value, related party transactions are required to be disclosed in the accounts as per the accounting standards. Our work is to ensure that the disclosures are complete and accurate, and it appears that this is indeed the case for the transactions with related parties.

The related party transactions identified during the year were in relation to staff recharges for member schools and working sessions. These were correctly disclosed within the accounts.

There were no trustees remuneration or expenses paid during the year and therefore a £nil disclosure has been made in that respect within the financial statements.

4.2 FIXED ASSETS

Audit work done on fixed assets is to ensure that they are complete, valued appropriately, physically exist and are the ownership of the company.

A sample of fixed assets in the asset register were selected and audit testing did not highlight issues with these items.

Any repairs and renewals and other related costs attributed to the P&L were also reviewed to ensure that they also should not be capitalised, and have been expended in the year.

4.3 INCOME AND DEBTORS

Each month a payment schedule is provided to Adfecto by Serco, detailing the amounts, invoice numbers and order numbers for each transaction. These are then raised on Sage and issued accordingly. STEM invoices are also raised, however these tend to be fixed fees. Invoices are raised and the amounts agreed to the emails from STEM to confirm the correct balances are being invoiced.

Debtors and accrued income were assessed at the year end to ensure recoverability and, therefore, valuations were reasonable. Our sample did not identify any issues in relation to the debtors balances within the financial statements.

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Randall & Payne I Audit Report – Adfecto

4.4 BANK AND CASH

Bank reconciliations are performed by the Finance Manager and the balance per the statement is reconciled to the system with an outstanding transaction report being printed. This reconciliation is then reviewed and authorised by the Business Development Manager.

When reviewing the bank reconciliations, it was clear they had been completed accurately, agreed to the bank statement and were authorised.

As part of the review, the bank balances were agreed to the online banking balance to provide assurances that the statements were valid and accurate.

Petty cash reimbursements were also reviewed for signs of unauthorised payments, of which no issues were identified.

4.5 PURCHASES AND CREDITORS

A sample of purchases made by the organisations were selected and details entered on to the system were agreed to the details of the invoice in order to confirm that classification is appropriate. A check was undertaken to ensure that transactions had followed the appropriate authorisation process and had gone through the tender process where applicable.

4.5 PURCHASES AND CREDITORS cont

Cut-off of expenditure in the accounts appears reasonable with no material issues to note. Post year-end reviews are completed in order to ensure all expenditure is posted within the correct year and any additional creditors are identified.

Creditors were assessed at the year end to ensure no disputes in balances and, therefore, valuations were reasonable. Our sample did not identify any issues and it was confirmed that creditors were appropriately valued within the financial statements.

4.6 PROVISIONS

We reviewed the post balance sheet events to establish whether there are any events that may be disclosable in the 2020 accounts. No items were identified, following confirmation from management (see section 11).

A minutes review was completed during the year and it was pleasing to see a wide range of important topics being discussed and a cohesive Board ensuring that accurate decision making is being made.

It appears that within the sample selected items were appropriately ordered, authorised and entered onto the system, with subsequent payments made through the bank. All items were authorised appropriately and of the transactions tested none appeared contentious.

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4.7 WAGES AND SALARIES

Our payroll sample included testing both the single employee within the payroll system, as well as a sample of recharged salary invoices.

The individual through payroll was reviewed, noting the gross salary and any deductions and employer contributions. This gross salary was then checked to a contract/ salary statement to confirm that the correct amount of salary was being received. It is pleasing to see that there is a clear salary statement letter on file which has been issued to the client and recorded on their file which validates the contracted salary and will prevent any potential disputes.

4.9 CLIENT COMMENTS

Finally employee existence was confirmed by evidence from the personnel files. Therefore no misstatements were identified within the sample selected.

4.8 JOURNALS

As noted in section 3 of this report, management override is a key area that we need to be aware of in all audits. A review of a sample of journals was undertaken to ensure that the financial records had not been altered in such a way to materially impact the figures against the usual activities of the company. Our testing did not appear to highlight issues of this type, as journals posted appear reasonable.

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5. ADJUSTMENTS MADE DURING ACCOUNTS PREPARATION

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Randall & Payne I Audit Report – Adfecto

During the accounts preparation, a number of adjustments were made as follows:

Description	£
Surplus/(Deficit) per TB	(5,061)
Accounting for retrospective change of depreciation policy Additional depreciation charge	(3,216)
Accounting for disposals of fixed assets Loss on disposal of fixed assets	(171)
Deficit per accounts	(8,448)

The above adjustments have been agreed by the Finance Manager and should be adjusted for in the accounts for the period ended 31 August 2021.

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6. FINANCIAL PERFORMANCE SUMMARY (4 YEAR REVIEW)

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GASH summary financial performance

The summary four-year results as shown in the entity's accounting records:

	2020/21	2019/20	2018/19	2017/18
	£	£	£	£
Income
Training courses and
conferences	590,206	641,464	639,521	848,712
Other income	8,100	1,860
Interest received	9,057	9,457	9,436	1,635
Total Income	607,363	652,781	648,957	850,347
Expenditure
Cost of generating funds	-610,430	-597,052	-747,485	-947,205
Support costs	-5,381	-5,449	-8,544	-8,565
	-615,811	-602,501	-756,029	-955,770
(Deficit)/Surplus	(8,448)	50,280	-107,072	-105,423
Reserve brought forward	1,085,766	1,035,486	1,142,558	1,247,981
Reserve carried forward	1,077,318	1,085,766	1,035,486	1,142,558

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Randall & Payne I Audit Report – Adfecto

Summary financial performance for the Gloucestershire Initial Teacher Education Partnership (GITEP)

The summary four-year results as shown in the entity's accounting records:

	2020/21	2019/20	2018/19	2018/19		2017/18
	£	£		£		£
Income	787,692	674,516		653,180		603,678
ITT Bursaries	1,372,000	1,298,750		1,288,291		784,017
SKE Bursaries/Programme	31,850	162,600
Total Income	2,191,542	2,135,866		1,941,471		1,387,695
Expenditure	-2,227,948	-2,143,762		-1,996,466		-1,403,443
(Deficit)/Surplus	-36,406	-7,896		-54,995		-15,748
Reserve brought forward	334,561	342,457		397,452		413,200
Reserve carried forward	298,155	334,561		342,457		397,452

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7. UNADJUSTED / ADJUSTED MISSTATEMENTS

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Randall & Payne I Audit Report – Adfecto

7.0 UNADJUSTED / ADJUSTED MISSTATEMENTS

A summary of the adjusted/ unadjusted errors identified during the course of our work is normally included below, however none were identified during the period. We have not disclosed below those items that we consider to be “clearly trivial” in the context of our audit.

On behalf of the Trustees, I confirm that there were no further transactions which should be adjusted for in the financial statements of the year ended 31 August 2021.

………………………………………………….. ………………………………………………….. Trustee Date

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8. INTERNAL SYSTEMS AND CONTROLS

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8.0 INTERNAL SYSTEMS AND CONTROLS

The purpose of the audit was for us to express an opinion on the financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls. Our audit is, therefore, not designed to identify all control weaknesses and the matters reported below are limited to those deficiencies that we have identified during the audit.

Overall, considering the size and nature of the entity, it is considered that Company has a good overall system of internal control.

There were no deficiencies in internal control identified during the audit process, and overall the level of controls and systems in place appear sufficient to mitigate risks of material misstatement and override.

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randall &payne 9. JUDGEMENTAL ISSUES November 2021 Page 27

Randall & Payne I Audit Report – Adfecto

9.0 JUDGEMENTAL ISSUES

As part of the audit standards and in line with our audit processes, we are required to obtain an understanding as to the rationale behind accounting estimates and judgements. As such, we have reviewed the following areas.

9.1 DEPRECIATION RATES

We have reviewed the rates at which the fixed assets are depreciated, and a review of the useful lives of items and the residual values in the accounts.

There was a change in the depreciation rates per the Finance Policy during the year and therefore a change in accounting policy. Under FRS102, a change in accounting policy can be as a result of two things:

• Change in the standards

• To make the accounts more reliable and relevant

The change in depreciation policy from 33% reducing balance to 4 year straight line is deemed to be a more reliable and relevant policy when considering the useful life of fixed assets.

Per FRS102 a change in accounting policy should be retrospectively applied as if it has always been in place. This has been applied to the financial statements with the impact being summarised to the right.

The impact on the depreciation charge in year has been summarised below:

Asset Type	Previous Depreciation Policy	Depreciation Charge
Fixtures & Fittings	33% reducing balance	610
Office Equipment	33% reducing balance	390
Computer Equipment	33% reducing balance	3,439
Asset Type	Revised Depreciation Policy	Depreciation Charge
Fixtures & Fittings	4 years straight line	802
Office Equipment	4 years straight line	252
Computer Equipment	4 years straight line	6,601

The overall additional depreciation charge during the year was £3,216. This has resulted in the closing net book values within the accounts to change and remove the continual residual balances being held which was the case in the prior policy.

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randall &payne 10. AUDIT OPINION November 2021 Page 29

Randall & Payne I Audit Report – Adfecto

10.1 STATUTORY AUDIT

As a result of the audit work we have undertaken, we have concluded that the financial statements appear to be free from material misstatement. Therefore the report contained within the draft financial statements will become the audit report in the final financial statements, subject to satisfactory clearance of any outstanding matters. This is the standard unmodified audit report. The audit opinion specifically written in the accounts will be as follows:

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustee's Report is inconsistent in any

• material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

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11. OUTSTANDING MATTERS TO COMPLETE AUDIT

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Randall & Payne I Audit Report – Adfecto

11.1 POST-BALANCE SHEET EVENTS

Prior to signing the audit report, we will need to complete an up to date Post Balance Sheet Events Review. Please can you confirm that you are not aware of any events that may impact these financial statements? This assessment should extend to 12 months from the signing of the accounts. This is included in the letter of representation.

11.2 LETTER OF REPRESENTATION

A letter of representation will be issued with the financial statements and we shall forward this for approval by separate cover.

Client Comments

Client Comments

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randall &payne 12. CONTACT PROGRAMME November 2021 Page 33

Randall & Payne I Audit Report – Adfecto

12. CONTACT PROGRAMME

March/April 2022 Completion of interim and systems testing September 2022 Pick-up of accounts information and preparation of year-end accounts Report from Directors provided by organisation for inclusion in the year-end accounts October 2022 Audit planning, audit fieldwork and audit completion Issue of Report to Directors in advance of Directors’ meeting Annex G grant audit fieldwork November 2022 Attendance (if required) of Randall & Payne at Directors’ meeting regarding audit and accounts findings and sign off of the accounts December 2022 Submission of accounts in advance of deadline Completion and submission of Annex G grant for GITEP

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randall-payne.co.uk

t 01242 776000 | e [e-mail] | f 01242 292026 Chargrove House, Shurdington Road, Cheltenham, GL51 4GA

The firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.

Registered number: 02876158 Charity number: 11S2261 GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED {A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED (A Company Limltèd by I>Aarantee) CONTENTS Page Reference and Administrative Detalls of the Company. Its Trustees and Advlsers Trustees. Report Independent Audknrs. Report on the Financlal Statements Statement of Financial Activitks 8-11 12 Balan¢e Sheet 13-14 statement of Cash Flows 15 Note$ to th¢ Financial Statements 16-30

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED IA Company Umtted by G￿rantee> -REFERENCVAND ADMINISTrATIVE"DEfAISTJFTHFCOMPANY."rrThusTEES"AND"ADVISERf . FOR THE YEAR ENDED 31 AUGUST 2021 TrustOOS M Morgan, Chair S Tlrfnell (resigned 1 September 20201 R Elicott S Layhe W Morgan G Walson D Butke lar4)oinled 12 October 20201 K Harr￿on (appointed 1 October 2020. resbjned 1 September 20211 J Maunder {appointed 1 September 20211 Company reglstèred number 02876158 Charity Mglstered number 1152261 Reglslfjrod Unit 23 The Sleadings Business Centre Church Road. Maisemore GIOU￿ster Gloucestershire GL2 8EY Company secrètary A Stokes Independent audltors Randall & Payne LLP Chartered Accountants Shurdinglon Ro*1 Chettenham Glowstershire GL514GA Bankers Irirgin Money 5 Northgale Street Gksucester GL12AH Page 1

GLOUCESTERSHlllE ASSOCIATKIN OF SECONDARY HEADTEACHERS LIMITED (A Company Lwnited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2021 The Trustees present their annual report together wth the audited financial statements of the Company for the 1 September 2020 to 31 August 2021. The Annual Rewrt serves the purposes of both a Tru51ees' report and a directors, report under company law. The Trustees confimi that the Annual Report and financial statements of the charitable company compty with the current statutory requirements, the requirernents of the charitable company's governing dts¢ument and the provisions of the Statement of Recommended Practice ISORP} applicable to charttie$ preparing their accounts in acc0ftlan￿ with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS1021 (elfe(ve 1 January 2019)- Slnce the Company qualifies as small under section 382 of the Companies Act 201%, the Strategic Rep)rt required of medium and large companies under the Companies Act 2006 (Strategic Report and Dire¢tors' Report) Regulats"ons 2013 has been omitted. Obieclives and activities a. Objectives and actlvtties The aims and objectives of the Charity are lo advance the education ol the public in general, in particular amongst primary and secondary schoob, and to prowde initial teacher training and continual professh)nal development. In striving l¢)wards this, the Charity has considered the Charity Commissioners guidan on public benefit and the Charity opeBles in order to ensure the best pjssible provision of edur2tion and seNice$ for young people in GIou￿ster$hlre'8 secondary schools. The Trustees ¢onftrm that due conwderalion ha5 been given lo the Chaws Commission published guidance on the Public Benefll requirement under the Charities Act 2011. b. Strategios for achioving oblectlves The Charity supports schools by offering professional devek)pmenl and advice al little or, preferably, no ¢05110 schools. It also adds capacity to enable schoob to deliver specific projects and aims to be financially self- supporting by working on contracts arKI propct5 reg￿)nalty and natTronally. c. Grant4naklng pollcles The Trustees constder applications for S￿NC grants to support particular projects. Page 2

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED (A Company LknK•d by Guarantee) -TRtISTEE¥ RepoRf(¢ONTINUEDI-_ ' FOR THE YEAR ENDED 31 AUGUST 2021 A¢hi¢Yements and performance a. Main achigvorngnts of the Company In line with ils aims and objectives the trustees and Board of Directors have ach￿Ved the following during the previous 12 months= Initital Teacher Training In 2020121 the Charity continued to support the Gknucesler5hire Initial Teacher Education Partnership IGITEPI School Cenlred Initial Teacher Training IscfFf)- The Charity continu8S to have a partnership with the University of Bristol trj provide the accreditation for the Postgraduate Certificate of Eduration for GrrEP trainees. The Charity continues to guarantee and de￿Ver the tra'nee entitlement including providing parent placements, tsvin pla￿MentS and school-cenlred professional deveknpment. This supwrts trainee progression and provides career development opp)rtunities for schod-based staff fulfil mentor and training manager roles, or are seconded as programme or subject leaders. In 2020121 680A of trainees gained employment either in Gloucestershire or in one of the three GrrEP partner schwls in othef counties. In previous years the Charity has used some of its reseNes to &vard bursaries lo support intemships for undergraduates intefesied in teaching. The first bursaries were awarded in 2017118, following an application process, and six people {50°A of the first cohort) have now undertaken the fvll inib'al lea¢her training programme. The dOSu￿ of schools due to Covid presented signifirant problems for trainee tea¢l&rs in 2020121. The Charity was pleased to support them by providing visualisers to enab￿ trair￿S to teach remotety. With the supp￿1 of GASH Ltd, GITEP SCITT. bid successfulty lo the DIE lo become a provider of subject knowledge enhancement courses. one of 40 national providers. The intention is lo WO￿ mOs￿Y with ap￿IcantS for teacher training in the immediate fegion. CPD Through Adfeclo, a trading name, GASH Ltd has continued to offer professional devek)pmenl opportunib'es for schools. Newly Qualmled Teacher{NQT) Programme There were 110 NQTS regISte￿d for this free pr¢gramme whrh indudes subject sessions, whok school topics and individual rnenloring. Science L9aming Partnership This contract with STEM Learning was extended untrl March 2022. Through the Partnership, CPD and support for science departments 15 offered lo schools in GkIU￿Stershir&, Swindon and Wiltshire. During the year the SLP look on additional resF4)nsiknlity for coordinats'ng other SLPS in the South West. Computlng Hub Pate s Grammar School, working in partnership with Adfecio, leads a Cornputir)g Hub for Gloucestershire, Wiltshire, Swin(bn, Bristol and Bath. AJI programmes continued online thriyjgh Covid-19 school closur85 and r@str￿lon$. Earty Career Framework Adfecto was pleased to work with the tsvo newty de￿gnated leaching school hubs, Balcarras School and Pate's Grammai School, to help sel up the Earty Career Teacher pro9ramme for Gk)ucestershire. Well over 200 Earty Career Teachers are registered on the program1r￿ for 2021122. Page 3

GLOUCESTERSHIRE ASSOC14TION OF SECONDARY HEADTEACHERS UMftED IA cOm￿nY Limited by Guarnntee) FOR THE YEAR ENDED 31 AUGUST 2021 Achievemgnts and performance (continued) Adfecto supported three bids to beco￿￿ a leathing school hub and looks fo￿￿rd to working wilh the successful schools. School Business Managers Adfeclo is part of the SBM Partnership, along wtth Serco and the Institute of SchDd Business Leaders IISBLI. These progrdmmes continued. msty online. throughout 2020r21. b. Key ￿rformanCe indicators Inltlal Teacher Training 11 was a very difficult year to train lo be a teacher. with schLth closed from January to March. Despite Ihis, 97° of trainees due to complete in 2020r21 finished the course. 94Yo are employed in schools, 68% in Gloucestershire or GITEP SCI￿ partner schoo[& Science Leaming Partnèrship The SLP responded well to supporting schools ihrough Covid measures and continues to perfom) well against most measures. Computlng Hub The Compub'ng Hub hit most of its KPIS during Ihe year and is one of the best perlomiing nationalty. School businèss manager programme8 Many of these programmes were alreaty online. Numbers continued to be strong with over 300 participants over the year. ¢. Rgvlgw of activities The principal activities in the year under review were" Initial teacher training Continued professional developrnenl ICPDI School improvement proje¢ls School Business Manager training programmes Flnanclal revlew a. Golng ¢on¢¢m After making appropriate enquiries, the Trustees have a Teasonable expectation that the Company has adequate resources lo continue in operatr)nal existerKe for the foreseeable future. For this reason, they contr.nue lo adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the grHng cOn￿M basis can be found in the accounkn'ng poticies. Page 4

GLOUCESTERSHIRE ASSOCIATK)N OF SECONDARY HEADTEACHERS LIMrrED (A Company Llmiled by Guarantee TRUSTEES. REPORricopmNUEDI-'"" . FOR THE YEAR ENDED 31 AUGUST 2021 b. ReseT¥•S policy As at 31 August 2021, totsl reseTve$ were £1,077.318 (2020.. £1,085,766). The reserve is unresliicted and for use al the discretion of the Trustees lo fulfil th8 Charity's (4)jectives. The Charty aims to hold £500,000 of funds in reserve al the end of the finanaal year to meet all empk)yment osts, in¢luding redundancies, and other business closure costs. The Charity aims to use the surplus lo provide free courses and supp)rt for schwls and leather training in line with their charitable aims. c. Prlncipal risks and uncertainties The tK)ard have from lime to time discussed and assessed the major risks to which the Charity is exposed and considered safeguards that have been and can be implemenled io mitigate Ihose risks. In accordance with the Statement of Recommended Praclice for Charities the Trustees review and update the formal risk assessment annually. d. Financial revlew During the year, the Charity received a total income of £607,363 {2020.' £652.7811 and in¢urred expendllure of £615,811 {2019.' £602,501) which has resulted in a deficit of £8,44812020 surplus.. £50,280) for the year. A$ al 31 August 2021, total lunds stood at £1,077,318 (2020.. £1,085,766) all of which were retained in order to achieve the objectives of the Charity- Structure. gov8rnance and rnanagemenl . Constitullon Gloucestershire ASSo￿allon of se￿ndary Headteachors Limrted is registerpd as a ¢haritable company h'miled by guarar)lee and was sel up by a Trust deed. b. Methods of appolntment or election of Tn￿leeS The management of the Company is the resFrf)nsibility of the Tnjslees who are elected and CO￿pted under the terms of the Trust deed. . Organisational stfucturn and d¢clslonwmaking pollcltts As Gloucestershire ASsocial￿n of SecorKlary Headtethrs Limited wa5 eslablished for the benefit of secondary schools within Gloucestershire and in accordance wlth the Arlirjes of As5Dciation, all members of the Gloucéstershire A$s￿latIOn of Secondary Headteachers are entided lo become mfrmbers of the Charity. Page 5

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED (A Company Lknited by Guafantse) RUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Structure. governan¢¢ and rnanagement (contlnued d. Pollcle$ adopt¢d for the induction and tralning of Trustees The Trustees are appointed either at the Charivs AGM, under the reeommendalion of th9 majority of members, or in year by the Board. Trustees appointed by Ihe Board relain office until the next AGM when Ihey become eligible for re*lection. In order to ensure the maintenance of the Chaiivs objectives, the board musl have a minimum of 3 members. The board cJJrrenty has 7 Headleacher rr￿rnberS consists'ng ot M Morgan {Chair} R Ellicott W Morgan D Burke K Harri50n G Walson S Layhe The Trustees of Gk)uceslershire AssocialKJn of Sec£Jndary Headleachers Limited may delegate ￿rtain authorlties to specAfic Trustees or other persons as is felt necessary. In the penod. such delegated authority was given to T Connole {ch￿f Executive ex officio). Wh8n.appointing newty elected Trustees, Gloucestershire Assocration of Secondary Headleachers Limited has a policy of induction which includes ensuring that they are fully aware of their responsibilities in relation lo both Companies House and Chartties Commission guidance and the Charitys objectives. Plans for ftrture periods GASH Ltd will continue to devekjp ils work in inthal teacher training. Through Adfeclo tt will continue to provide and develop CPD courses for serving teachers, especially NQTS. During 2021122 we plan to: Support GITEP in embedding the partnership wtth the University of Bristol lo improve the quality of teather training in GIoU￿stershlre', Continue lo invest in professional deveknpm8nt projrammes through Adfe¢to, particulady Shoulder to Shoulder and Practice Matters" Develop the consultancy offered by the Chattty, especialty support for headteachers,. Build on the partnership with STEM Leaming to offer support for scler1￿ and computing teathers across the re9ion,' Develop and markel Ihe School Business Manager pro9rammes through the SBM Partnership., Continue lo work in partnership with the leaching schools in Gbucestershire., in particular GASH Ltd will SUPFKJrt bids for the new teathing school hub5 All plans for 2021122 will have to take into consideth.on the impact of Covi(k19 and the increase in remote leaming al all levels. Page 6

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED IA Company Umited by Guaranl•o) -TRUSIEES"REPORT-ICONTINUED)- FOR THE YEAR ENDED 31 AUGUST 2021 stalemtnt of Trusto•s' responslbilities The Trustees (who are also the directors of the Company for the purposes of company ￿wI are responsible for preparing the Trustees, Report and the financial statements in accordan￿ with applicable Law and United Kingdom Accounting Standards Iunited Kingdom Generaly Accepted Accounkn'ng Practi￿1. Company law requires the Trustees lo prepare finana81 statements for each financial year. Under company law, the TnJstees must not approve the financial statements unless they are Satisf￿ that they give a true and fair view of the state of affairs of the Company and of 115 inwming resour￿ and applicab'on of resOU￿e$, including its in¢ome and expendrture, for that Per￿1. In preparing these financial statenEnts, the Truslees are required to.. select 5uilable accounting p)ll￿e$ and then apply them consistentty,. observe the methods and prinCip￿S of the Charities SORP IFRS 102)" make judgments and accounting eslimales that are reasonable and prudent., stale whether aPP&Cab￿ UK Accounting Standards IFRS 102) have been followed, subject to any material departures disdosed and explained in the financial statements,. prepare the financial statem8nls on the going conc&m basis unless il is inappropriate to presume that the Cornpany will continue in busines& The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Companls transactions and disclose with reasonable ￿uracY at any ts'me the financial position of the Company and enable them to ensure that the finanual statements comply with the Companies Act 2006. They are also responsibb for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and deleth.on of fraud and other irregulariknes. Dlsclosure of information to audltors Each of the persons vlno are Trustees at the time when this Trustees. Report is approved has ¢onfimied Ihat.. so far as that Trustee is aware, there is no rElevant audrt information of which the charitys auditors are unaware, and that Trustee has tsken 811 the steps Ihal ought to have been taken as a Trustee in order to be aware of any relevant audit information and to eslablish that the ¢harity'$ auditors are aware of that infom)alion. Auditors The auditors, Randall & Payne LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors al a n￿trng of the Trustees. Approved ty order of the members of the board ol Trustees and signed on their behalf by.. M Morgan (Chair of Trustees} Date. 4 February 2022 Page 7

GLOUCESTERSHIRE ASSOCIATK)N OF SECONDARY HEADTEACHERS UMITED (A Company UmKed by Guaranteo) ~IptoWNDE-NT AUDrroRS' REPORT TO THE MEMBERS OF GLOUCESTÈRSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED Oplnlon We have audited the fjnancial statements of GIOU￿sterSbIre AssocialM)n of Secondary Headleachers Limited (the 'charilable cDmpany'} for the year ended 31 August 2021 which comprise Ihe Slalemenl of Financial Activities, the BaL4nce Sheet: the Statement of Cash Fk)ws and the related notes, including a summary of significant accounting policies. The finanoal reportsng 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 RepLrLlic of Ireland, {Uniled Kingdom Generalty Accepted Accounting Practice}. In our opinion the financial slalenwnts.. give a ITue and fair view of ihe state of the charitaNe companys affairs as al 31 August 2021 and of its incoming resou￿e$ and applicatb)n of resources, induding its income and expenditure for the year then ended", have been propedy prepared in aL%0rdan￿ with United ￿"ngdorn Generally A¢¢epled Accounting Practice., and have ken prepared in accordance ¥￿th the requirements of the Charities Act 2011. Bas18 for opinlon We conducted our audit in a￿OrdanCe wth Intemational Standards on Auditing IUKI (ISAS (UKII and applicable law. Our responsi￿"lItieS under those standards are further described in the Audrtors, responsibilities for the audit of the financial statements section of our report. We are independent of the Charitab￿ company in ￿COrdanCe with the ethical requirements Ihal are reFevanl to our audit of the financial statemer71s in the United Kingdom, including the Financial Reporting Counal's Eth￿1 Standard, and we have fiJlfiNed our other ethical responsibilities in accordance with these requirements. We beleve that the audrft evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relatlng to golng eon¢ern In auditing the ffinancial staiements. V￿ have conduded that the TfU5tees' use of the going concern basis of accounting in the preparat'on of the financial statements is approprtate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that, individualty or co1￿C￿'V￿y, may cast significant doubl on the charitsble companvs ability lo continue a5 a going concern for a period of at least twefve months from when the finanaal statements are authorised for issue. Our ￿Sponsibl11t1e3 and the resp)nsibilrb'e$ of the Trustees respect to going con¢ern are ée5cribed in the relevant sections of this report. Page 8

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED (A Company Limiled by Guardntee) "INLIEPENDENT AUD￿ORS."REP0RT TOTh&MEMBERSDF"GLThJCESTERSHIREASSOCIATION OP . SECONDARY HEADTEACHERS UMITED ICONTINUEDI Other Inlorniation The other information comprises the infomiation included in the Annual Rep)rt other than the financial slalements and our Auditors, Report thereon. The Trustees are responsible for Ihe 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 explicitty slated in our rewrt, we do not express any fomi of assurance conclusion there(M. Our respon￿bilty is to read the other infomialion and, in doing so. consider whether the other infornalion is rnalerially inconsistent with the ffinanci41 slatements or our knowledge obtained in the ¢ourse of the audit, Dr otherwise appears to ￿ materialty misstated. If we identify such material inconsisten¢ies or apparent malenal misstatements, we are required lo detennine whether this gives rise lo a material misstatement in the ffinancial 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 lo report that fact. We have nothing lo report in this regard. Matters on whlch we are requlred to report by exception We have nothing to report in respect of the fdk)wing matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you rf. in our opinion.. the information given in the Trustees, Report is inc4)nsislent in any material respect vAth the financial slalernerbts,. or suffi¢ienl accounting records have not been keptr, or the finan¢ial statements are not in agreement with the accounting records and returns,. or we have not re￿iVed all the informaton and explanations we require for our awJiL Responsibilities of Trustees As explained more fully in the Trustees. Responsibilrhes Slatemenl the Trustees Iwho are also the directors of the charrtable company for the purposes of cornpany lawl a￿ responsible for the preparat*)n of the financial statements and for being satisfied that they give a tTue and fair view, and for such intemal control as the Trustees determine is necessary lo enable the preparation of financial statemenls that are free from matenal misststement, whether due to fraud or error. In preparing the ffinancial statements: Ihe Trusteas are reswnsible for assessing the charitable Company's ability lo Gonlinue as 8 going concern, disclosing. as applicable, matters related to going concern and USI￿ the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company Cir lo cease operations, or have no realistic alternative but to do so. P4e9

GLOUCESTERSHIRE ASSOCIATN)N OF SECONDARY HEADTEACHERS LIMITED IA Company Limit•d by Guarantee) INDEPENDENT AUDrfoRS' REPORT TO THE MEMBERS OF GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMtTED {CONTINUEDI Auditots. responsibilities for the audit of the financlal statements We have been apwnted as auditor under section 145 of the Charities A¢t 2011 and report in accordance with the Act and relevant regulations made or having effect Ihereunder. Our objectives are to obtain reasonable assuran￿ ab)ut whether the financial statements as a whole are free from material misstatement, whether due lo fraud or ermr, and Io issue an Auditors, Report that includes our opinion. Reasonable assurance is a h￿h level of assuran￿. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI wll a￿ayS detect a m8tenal misslalemenl ￿en il exists. Misslalemenls can arise from fraud or error and are conside￿￿ material if: individualty or in the aggregate, they could reasonably be expected lo inlluence the economic decisions of users taken on the basis ol these financial statements. Irregularities, induding fraud, are instan￿$ of non-complianct wrth laws 2nd regulations. We design pro￿ureS in line with our responsibilities, ouuined atrxjve. to detect material misstatements in respect of irregularities, including fraud. The extent to whth our procedures are capable of delecling irregularits'es, induding fraud is detailed bebvr. we obtained an understanding of the legal and re9ulalory frameworks that are applirable to the Charity. These indude bul are not limited to cr)mpliall￿ with the Companies Act 2008, Financial Reporting Stsndard applicable in the UK and the Charities SORP 2019. WÈ agreed the financial ststement disck)sures to supporting docu￿￿nIation., we made enquiries of managerrEnl- and we reviewed tM)ard minutes Ihroughout the year. A further description of our responsibilits'es for the audit of the financial statements is located on the Financial Reporbng Council's website aL' wyw.frc.o .ukJauditors nsibilities. This description forms part of our Auditors. ReporL Page 10

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED IA Company Limit￿ by Guardnte•) ..-INDEPENDeNTAUDkTORS'"REPORTTOThEMEPABERS OPGLOUCESTERSHIRe"ASSOCIATION'OP" SECONDARY HEADTEACHERS UhlTED ICONTINUEDI Use of our report This report 1$ made solely to the charitat4e companys trustees, as a body, in accordance with Part 4 of the Charities IA¢counts and Rewrts} Regulations 2008. Our audit work has been undertaken so that we might stale lo the charitable company's trustees those matters we are required lo stale lo them in an Auditors, Report and for no other purpose. To the lullest extent pernrtted by Lqw. we do not accept or assume responsibility to anyone other than the charitable company and its members. as a body, for our audrt work, for this report or for the opinions we have forrned. Randall & Payne LLP Chartered Accountants Shurdinglon Road Cheltenham Gloucestershire GL514GA Date.. 7 February 2022 Randall & Payne LLP are eligible to acl as auditors in tenrts of section 1212 of the Companies Act 2006. Page 11

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED IA Company Llmll•d by Guarantee) STATEMENT OF FINANCIAL ACTtvmES (INCORPORATING INCOME AND ÉXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021 Unrestricted funds 2021 Total funds 2021 Total funds 2020 Income from: Charitable ￿tiVitieS Investments 598,306 9.057 598,306 9.057 643,323 9,457 Total Income Expendlture on: Charitable actwities 607,363 607,363 652, 780 615.811 815￿11 602,501 Total expenditure 615.811 615.811 602,501 Net movemenl In funds (8.4481 (8,4481 50,279 Reconciliation of funds: Total funds brought f0Th￿rd Net nv)vemenl in funds 1.085,765 18,4481 1,085.765 18,4481 1,035,486 50,279 Total funds Carri￿ forward .077.317 1,077,317 1.085, 165 The Statement of Financial Acti¥its'e5 inchjdes all gains and bsses recthjnised in Ihe year. The notes on pages 16 to 30 form part of these financial statements. Page 12

GLOUCESTERSHIRE ASSOCIATKIN OF SECONDARY HEADTEACHERS UMITED {A Company Limited by Guardntee REGISTERED NUMBER: 02876158 BALANCE SHEET AS AT 31 AUGUST 2021 2021 2020 Note Fixed assets Tangible assets 12,235 12,235 Current assets Debtors Cash al bank and in hand 10 89,522 1.049A24 68,856 I,OT8,272 1,138.946 1, 147, 128 Creditors.. amunts falliThJ due within one year 11 166,0371 (73,597) Net ¢urr¢nt assets 1,072,909 1,073,531 Total assets18ss current Ilabililies 1.077.318 1,085, T66 Net assets 1,077.318 1,085, 766 Total not assets 1,OTI.318 1,085,766 Page 13

GLOUCESTERSHIRE ASSOCIATK>N OF SECONDARY HEADTEACHERS LIMrrED (A Company Lknited by Guarantee) REGISTERED NUMBER: 0287615 BALANCE SHEET {CONTINUED) AS AT 31 AUGUST 2021 2021 2020 Note Charity funds Restricted funds Unrestricted funds 13 13 1,077,318 1,085, T66 Total funds 1,077,318 1,085, 766 The enlty was entl￿ed lo exempts'on from audit under section 477 ofthe Companies Act 2006. The Members have not required the entity to obtain an audil for the year in question in accordance with section 476 of the Companies Act 2006. However, an audit is required in accordance with seGlion 145 of the Charities Act 2011. The Trustees acknowledge their resw)nsibilib'e$ for cOMp￿.ng wlh the requirements of the Act with respect to accounting record5 and preparation of financial statements. The financial slaternents have been prepared in accordance the provisions applioable to entities subject lo the sm811 companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behaf by., M￿M￿ M Moryan (Chair of Trusleesl Dale.. 4 February 2022 The notes on pages 16 10 30 form part of these ffinancial statements. Page 14

GLOUCESTERSHIRE ASSOCIATr)N OF SECONDARY HEADTEACHERS LIMrrED IA Company Llmlted by Guarnnteel -STATEPAEpif OPCAsfrfFLOWS" ""_"" "" _ . . "'" FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 Cash flows from operdtlng a¢lMtSes Net cash used in operating actiwties 137,9051 150,077 Cash flows from inV￿ting activiti•s Interest received Purchase of langible r￿ed assets 9,057 9,457 {8,382J Net Cash provided by investing aclivities 9,057 1,075 Cash flows frorn financing activities Net cash provlded by financing activities Change in ¢ash and ¢a$h equfvalents In thè year Cash and cash equivalents at ihe beginning of the year 128.848} 1,078,272 151,152 927, 120 Cash ar￿ cash equlvalents at the end of the year 1,049,424 I,OT8,272 The notes on p￿eS 16 to 30 form part of these ffinancial statements Page 15

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIM￿ED (A Company Limlted by Guarant••) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Generdl InfOrMa￿On Gloucestershire AsscKiation of Secondary Heateachers Lirnitedllhe Chariv) is a registered charity and company limited by guarantee. It is governed by its Men￿randurn and Articles Df Association. The guarantee of each rnem￿r is I'mited to £1. The company was granted charitable status on 3 June 2013. Accounting policies 2.1 Ba$ls of preparation ol flnancial stat8monts The finanaal statements have prepared in accordan￿ with the Charilies SORP IFRS 102) - Accounting and Reporting by Charithes.. Statement of Recommended Practi¢e applicable lo charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} leffeclive 1 January 2015), the Financial Rewrting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Companies Act 2006. Gloucestershire Assoaab'on of Secondary Headteathers Limited meets the definition of a public benefit entity under FRS 102. Assets and liatxlit*s are initialy recognised al historical cost or transaction value unless olherwse staled in Ihe re￿vant accounting policy. 2.2 Golng concern The directors have considered the risks and issues concerning the Char¢ty and its ac1ivti￿S, and conclude that there are no material un￿rtaInt￿eS that may cast doubl about the Charitys ability lo continue as a going concern. 2.3 In¢ome All Income is recognised once the Cornpany has enlrtlement to the income, il is probable that the income will be received and the ar￿Unt of income receivable can be rneasu￿d reliabty. Incorne tax recoverable in relation tr) inveslment income is recognised at the lime the investrnent ir￿l￿e is r￿1vable. 2.4 Expenditure Expendibjre is recognised once there is a legal Of ¢onstructive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obl￿allOn can be measured reliabty. Expenditure is classified by activity. The costs of each acb'vity are made up of the totsl of direct costs and shared cost5, including Sup[￿ costs invofved in undertaking ea¢h acb'vty- Direct costs attributable lo a single activity are allocated directly to that acb'vtty. Shared costs which contribute lo more than on8 activity and support costs which are not attributable lo a single activity are apportioned ￿￿een those aclNib'es on a basis consistent with the use of resources. Central staff costs are allocated on the basis ol ts'me spent, and depreciats'on tharges allc<aled on the portion of the as5eVs use. Expenditure on charitable aclivts'es is incurred on directty undertaking Ihe activities which further the Companys objectives, as well as any assooaled support costs. All expenditure is indvsive of Irrecoverab￿ VAT. Page 16

GLOUCESTERSHIRE ASSOCIATtt)N OF SECONDARY HEADTEACHERS UMITED IA Company Limited by Guarantee) "- 140TE¥TO"THE"FINANCIAL STATEMENTS."" "~"" . "" "'"""" . ""'" "_""" ' . . FOR THE YEAR ENDED 31 AUGUST 2021 Accounting pollcles {contlnued} 2.5 Interest recelvable Irrteresl on funds hekl on deFX)sil is induded when re￿rVable and the amount can be measured reliatAy by the Company,. this ss normalty up)n notsf￿a￿.0n of the interest paid or payable by the institution with whom the hjnds are deposited. 2A Tangible fixed assets and depreclatlon Tangible fixed assets costing £500 or more are Capitalised and recognised when future economi nefils are probab￿ and the cost or value of the a$5et can be measured reliably. TangibFe fixed assets a￿ inthalty recognised at cosL After recognition: under the cost model, tangible fixed assets are Measured at cost less accurnulated depreciation and any accumulated impaim)ent losses. All Costs incurred to bring a tangible fixed asset into its intended working condilton should be included in the measurement of cosL D¢pre¢iation is Charged so as lo ￿loCate the cost of taThJible fixed assets less their residual value over their estimated usefvl lives using the straight-line method. Depre¢ialion is provided on the following bases". Fixtures and fittings Office equipment Computer equipment - 4 years straight Imie 4 years straight line - 4 years straMJhl line There was a change in a￿Unting polry in relalion to an update of the depreciation policies above. In line with FRS102, these revised poI￿leS have been applied retrospeclively and present th8 accounts in a more reliable and relevant manner. 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valwl at the awK)unl prepaid net of any trade discounts due. 2.8 C•sh at bank and In hand Cash at bank and in hand includes cash and short4em) highty liquid inve$lmenls with a short maturity of three months or less from the d*e of a¢qui8ition or opening of the deposit or similar account. Page 17

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED IA Company Llmited by Guarantee) NOTES TO TklE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Accounting pollcle$ Icontinuedl 2.9 LIabilit￿$ •nd provisions Liabilities are recognised when there Is an obligation at the Balance Sheet date as a result of a past event. il 15 probable that a transfer of economic benefft will be required in settlement, and the amount of the settlement can be esb'mated reliabty. Liabilities are re￿gnised at the amount that the Company anticipates Tt will pay to settle the debt or the amount it has r￿1Ved as advanced payments for the gc)d$ or servi¢es it must provide. Provisions are measured at the tst estimate of the amounts required to settle the obligatiorb. Where the effect of the lime value of r￿neY is material, the provision is based on the present value of thos amounts, discounted at the pre4ax discount rate that reflects the risks specific to the liability. The unwinding of the discount is rec4)gnised in the Statemenl of Financial Activrties as a finance cost. 2.10 Flnan¢ial instruments The Cornpany only has financial assets and financial liabilit￿S of a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised al transaction value and subsequendy measured at Iheir settlement value with the ex￿ptIOn of bank loans which are subsequently measured at amortsed t05l using the effects.ve interest method. 2.11 Operating leases Rentals paid under operaiing leases are char9ed to the Statement of Financial Activities on a slraighl line basis over Ihe leas8 te￿. 2.12 Fund accountlng General funds are unresln.cted fvnds whth are available for use at the discretion ol the Trustees in furtherance of the general objectives of the Company and ￿1¢h have not been designateé for other purposes. Investment incom8, gains and losses are allocated to the appropriate fvnd. Incomo from ¢harltable activities Unrestrlct8d funds 2021 Total funds 2021 Training courses and conferences Other income 590.2C 8,100 590,206 8,100 Total 2021 598,306 598,306 Page 18

GLOUCESTERSHIRE ASSOCL4TION OF SECONDARY HEADTEACHERS LIMITED {A Company Limlted by G￿rantee -NOTES TO'THE FINANCIALITATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Income from charitable activities Iconlinued Unrestricted funds 2020 Total funds 2020 Training course and conferences Other incom& 641,463 1,860 641,463 1,860 Total 2020 643,323 643.323 Inv¢$tm¢nt in¢ome Unrestri¢l¢d fund$ 2021 Total fund$ 2021 Investment income- interest 9,057 9,057 Unrestncted funds 2020 Total funds 2020 InVes￿nI income- interest 9,451 9,45T P4e 19

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED (A Compary Llmlted by Guaranieol NOTES TO THE FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31 AUGUST 2021 Analysls of eX￿ndIture on charitable acllvlties Summary by fvnd type Unrestricted funds 2021 Total lunds 2021 Staff and facilitator costs Bank charges Conference costs Consultancy and ¢ontractors Rent and rates Depreciation charges Computer and IT costs Insurances Printing, stationery and office consumables Repairs, renewals and othér premises costs Marketing and Advertising Audit, a¢¢ountancy and other fees 201,851 82 212,746 116.805 27,564 7,655 23,397 3,605 4,124 5,929 6,672 5,381 201,851 82 212,746 116.805 27,564 7,655 23,397 3,605 4,124 5,929 6,672 5,381 Total 2021 615,811 615,611 Page 20

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED IA Company Limilod by Guarnntee) -NOTESTO THEFINANCIAL"STA'fEMEKr FOR THE YEAR ENDED 31 AUGUST 2021 Analysis of expenditure on charitable activities {contlnued Summary by fund type {continued) UnTrslrict8d fvnds 2020 Tot81 funds 2020 Staff and facilitator costs Bank charges Confer8nce costs Consultancy and contractors 185.609 185,609 179 219,581 124,060 179 219,581 124,060 L il Rent and rates Dep￿￿atIon charges Computer and IT costs Insurances 29,890 3,968 12,205 3,451 5, 124 6,373 6,612 5,449 29.890 3,968 12,205 3,451 5, 124 6,373 6,612 &449 Printing, stationery and Offi￿ consumab￿9 Repairs, renewals arKI other premises costs M8rketin9 and Advertising Audi[ accountancy and other fees Total 2020 602.￿( 602.501 Page 21

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED (A Company Llmlted by GuaAnte•) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Anatysls of expenditurg by activities Actlvities undertaken dlre¢tty 2021 Support costs Total funds 2021 2021 staff and facilitator costs Bank charges Conference costs Consullan¢y and Contractors Rent and rates Depreciation tharges CompLrter and IT costs Insurances Printing, stationery and office consuMab￿S Repairs, renewals and other premises costs Marketing and Advertising Audit. accountancy and other fees 201,851 82 212,746 116,805 27,564 7,655 23,397 3,605 4,124 5,929 6.672 201,851 82 212,746 116,805 27,564 7,655 23,397 3,605 4,124 5,929 6,672 5.381 5.381 Total 2021 610,430 5.381 615,811 Page 22

GLOUCESTERSHRE ASSOCIATK)N OF SECONDARY HEADTEACHERS LIMITED (A Company Llmlled by Guaranlee} - NOTE5"TO THE FINANCIAL STATEIIENTS- _ """'"' _""' _ . . "'""" . '"""' ""'"" FOR THE YEAR ENDED 31 AUGUST 2021 Anatysls of expendllure by o¢ti¥ilies Icontinued) undertaken directly 2020 Support Total fvnds 2020 2020 Staff and kn'litalor costs Bank charges Conference costs 185,609 179 219,581 124,060 29.890 3.968 12,205 3,451 5, 124 6.373 6.612 185,609 179 219,581 124,060 29.890 3, 968 t2,205 3,451 5,124 6,373 6, 612 5,449 Consultancy an¢J contractors Rent and rates Depreciation charges Computer and IT costs Insurances Printing, stationery and offrce ¢onsumables Repairs, renewals and other Premi￿ costs Markeb'ng and Advertising Audrt, accountancy and other fees 5.449 Total 2020 597,052 5,449 602,501 Auditorn. remunÈr•tion 2021 2020 Fees payab￿ to the Companys Auditorfor the audit of the Companrfs annual a¢¢ounls 5,200 5,150 Fees payable to the Company's auditor in respect OTr Al non-audit services not induded above 1.350 ' TNstee8' romuneratlon and ¢xp¢nses During the year, no Trustees receNed any remuneration or other trenefils (2020- £NIU. During the year ended 31 August 2021, no Tnjstee expenses have been incurred (2020- £NILI. Page 23

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED (A Company Umit¢d by Guardntee) NOTES TO THE FINANCIAL STATEMÉNTS FOR THE YEAR ENDED 31 AUGUST 2021 Tangibl¢ rued assets Fixturgs and flttlngs OffKe equipment Computer equlpment Total Cost or valuation Al 1 September 2020 Disposals 16,291 (5,288 12,01S {576) 22.162 {2,3931 50,468 18,2571 At 31 August 2021 11.1)03 11,439 19.769 42,211 DepreclalAon Al 1 September 2020 Charge for the year On disposals 15N45 802 {5.2441 11.702 252 IS151 11.085 6,601 12,326 38,232 7.655 18,0851 At 31 August 2021 11,003 11.439 15,360 37,802 Net book valtse At 31 August 2021 4,4D9 4,409 At3t August 2020 313 11,076 12,235 10. Debtors 2021 2020 Due wthln one y•ar Trade debtors Prepaymen15 and accrued income 78,786 10,736 75. 103 53, 753 89,522 68,856 Page 24

GLOUCESTERSHIRE ASSOCiATION OF SECONDARY HEADTEACHERS LIMtTED {A Company Lknlled by Guarnntee) "_ThOTESTO TrIE HNANCIALETATEMERTS" FOR THE YEAR ENDED 31 AUGUST 2021 11. Creditors: Amounts falllng due wlthln one year 2021 2020 Trade creditors Accruals arid def8rre(l income 47,472 18,S65 29,080 44.517 66,037 73,597 2021 2020 Deferred income al 1 September 2020 Resources deferred during the year Amounts released from prevK)us periods 26,486 5,300 126A861 26,486 5,300 26,486 Deferred income in the year related to Steering Group Funding for 202112022. The prtor year deferred income related to stage payments due to be r￿1ved by trainees on the SBM piogramme. 12. Flnanclal instruments 2021 2020 Financial assets Financial assets measured at fair value through inconk and expenditure 1,049,424 1.078,272 2021 2020 Flnancial liabililies Derivalrve financial instruments rrEasurnd at fair value through income and expenditure held as part of a trading portfolKJ 66,037 73,597 Financial avaets measured at fair vahje through income and expendrture comprise cash al bank and in hand. Financial liabilities measured at fair value through in¢orne and expendrture comprise current liath'lities. Page 25

GLOUCESTERSHIRE ASSOCIATK)N OF SECONDARY HEADTEACHERS LIMITED IA Company Limited by Guardntee) NOTES TO THE FINANCIAL STATÉMENTS FOR THE YEAR ENDED 31 AUGUST 2021 13. Statement of funds statement of funds- current year Balance at 1 September 2020 Balance at 31 August 2021 Income Expenditu Unrestrl¢t¢d funds Reserves Unall¢cated amounts 1,085,766 6Q7,363 1612.4241 1,080,705 13,3871 13,3871 1,08S,766 607,363 1615.8111 1.077,318 Statsm8nl of funds - prfor year Balan￿ at I September 2019 88lano8 at 31 Augusl 2020 Income Exp&nditure Unre$trkted funds Reserves 1,035.486 652,781 {602,50t) 1,085, 766 1& Summary of funds s￿￿rnary of funds - cunent yaar Balance •t 1 September 2020 Balance at 31 August 2021 Income Expenditure General funds 1.085.766 607,363 161S,811) 1,077,318 Page 26

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMITED IA Company Lunlted ty Guarantee) -NOTE5 TO THE￿NANCIAL STATEMEKrs' " """" ""'" "' FOR THE YEAR ENDED 31 AUGUST 2021 14. Summary of lunds (continued) Summary of ￿ndS - prior year Balance at I September 2019 Balancg al 31 August 2020 Expenditure General funds 1,035.486 652,781 (602,501) 7,085. 766 15. Analysls of net assets between ￿ndS Anatysis of net assets bets¥een funds - ¢urrenl year Unrestrlcted funds 2021 Total funds 2021 Tangible fixed assets Current assets Creditors due within one year Difference 4.409 1,138.945 166,03n 4,409 1,138,945 (66,037 TI￿al 1,077,318 1,077,318 Anatysis of net assets b8tW9en funds- prlor year Unresthcfed funds 2020 Total funds 2020 Tangible fixed assets Current assets Creditors due within one year 12.235 1, 147, 128 (T3,597) 12.235 1, 147. 128 (73,597) Total 1,085, 766 1.085, 766 Page 27

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS UMITED {A Company Lunited by Guarantw> NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 16. Reconciliation of net movement In fvnds to not cash Ilow from 0￿ratIng activilles 2021 2020 Nel inco￿leXpendl￿re for the year {as Ststement of Financial Activiliesl 18A48) 50,279 Adjustments for: Depreciation charges Interest received 7,655 19,0571 3,968 (9,457) Loss on the sale of fixed assets Decreasel{increasel In debtors Increaselldecrease) in creditors 120,6661 (7,5601 74,213 31,074 N¢t ¢a$h provided byl{used in) operatlng acllvllies 137,90SI 150.077 17. Anatysis of cash and cash equlvalents 2021 2020 Cash in hand 1,049,424 1,078,2T2 Tolal cash and cash equlvalents 1,049,424 1,078,272 18. Anatysls of Changes in net debt At1 September At31 2020 Cash flows August 2021 Cash al bank and in hand 1.078.272 128,848) 1,049,424 1,078,272 128.848) 1,049,424 Page 28

GLOUCESTERSHIRE ASSOCIATION OF SECONDARY HEADTEACHERS LIMrrED IA Compary Llmlted by Guaranteg) - NOTES TO"THE HNANC14L3TATEAIENTS""""" '""' . "_' ""' "__" FOR THE YEAR ENDED 31 AUGUST 2021 19. Operating lease commitments At 31 August 2021 the Company had commbtments to make fvtufe fTEinimum ￿aSe payments under non- can*llable operating leases as follows". 2021 2020 Not later than 1 year Later than 1 year and not later than 5 yea 34,048 64,0 31,107 24,697 98,048 55, 804 The following 18ase payments have been recogni5ed as an expense in the Statement of Financial Activities.. 2021 2020 Operating lease rentals Changes in lease payments arising ftom COVID-19 related rellt ¢oncessions 27,572 Jo, 166 Page 29

GLOUCESTERSHIRE ASSOCIATK)N OF SECONDARY HEADTEACHERS LIMrrED (A Company Lwnited by Guarantee) NOTÉ￿TO￿E Ff-__ NANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 20. Related party transaclions During the year expendibjre of £28,701 12020- £42,630) was incurred on behalf of GITEP IGlouceslershire Initial Teacher Education Partnership} in relation to staff costs, an entity primarily controlled by GIOu￿$terShIre As5o￿all0￿ of Secondary Headleachers Limited Trustees. This expenditura was re¢harged lo GITEP in full. Ovetheads are abo recharged to GITEP to cover costs incurred by GASH on their behalf. Income during the year totalled £47:591 {2020: £68,911). At the year end, GIOU￿Stershlre Associalion of Headleachers Limited has a balan owing lo GITEP of £5,838 (2020.. £nil} and a balance owing from GITEP of £8.652 (2020: £4,807). During the year computing hub income was re￿iVed of £119,69312020.' £80.625} from Pale's Grammar School. Al the yearend a debtor balance of £53.98512020'. £50,403) was due. During the year there was also an intro subject lesson incurred, loalling expendrture of £100 12020.. £nill. No creditor balance was owing al the yearnd. During the year lunch costs recharge income was re¢eived of £nil {2020.' £154) from Sir Thomas Rich's School. Al the yearond no balan￿S were owing. During the year subject session costs of £nil12019'. £nill were recharged from Sir Thomas Rich's Sthool. At the yearnd no balancs were owing. During the year staff costs of £101,102 12020.. £142,878) were recharged frorn St Peterfs Catholic High School & Sixth Form Cenlre. Al the year*nd a balan￿ of £13,94712020.' £13,701) was owing to Sl Pelets cathol￿ High School. During the year subject session cost$ of £nil 12020.- £150) were recharged from The Co15wold School Academy Trust. At the year-end no balances were owing. During the year subject session ¢osl$ of £350 {2020'. £nil} were recharged from Chosen Hill School. At the year-end no balances were owing. Page 30

Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto Report to Directors For the year ended 31 August 2021

Contact: Nathan Smith

E: [e-mail] W: randall-payne.co.uk T: 01242 776000

Randall & Payne I Audit Report – Adfecto

At a glance…

The financial statements for Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto include an unqualified audit report for the year ended 31 August 2021.

Our review of systems There were no Despite there being and controls highlighted unadjusted errors adjustments to your no areas for identified during our management accounts improvement during audit work. during the year end the year. accounts preparation process, these were in accordance with the activities of the Company and none were of concern. A full reconciliation is found at section 5 of the report.

The risks identified during the audit are included within section 3 of the report.

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Randall & Payne I Audit Report – Adfecto

Contents

• 1 At a glance… 2 Contents

• 3 1. Purpose – Report to the Board

• 18 5. Adjustments made during Accounts Preparation

• 20 6. Financial performance summary (4 year review)

• 23 7. Unadjusted / Adjusted Misstatements

• 1.1 Introduction

• 1.2 Audit communications

• 25 8. Internal Systems and Controls

• 1.3 Ethical standards

• 1.4 Audit scope

• 27 9. Judgemental Issues

  • 9.1 Depreciation rates

• 6

2. Audit Process

2.1 Year-end meeting and accounts pickup

2.2 Accounts preparation

• 29 10. Audit Opinion

  • 10.1 Statutory audit

• 2.3 Audit planning

• 2.4 Audit fieldwork and completion

• 31 11. Outstanding Matters to Complete the Audit

11.1 Post-balance sheet events

• 8 3. Audit Risks Identified at Planning Stage

• 14 4. Audit Testing Undertaken

  • 11.2 Letter of representation

• 33 12. Contact Programme

• 4.1 Trustees and related party transactions

• 4.2 Fixed assets

• 4.3 Income and debtors

• 4.4 Bank and cash

• 4.5 Purchases and creditors

• 4.6 Provisions

• 4.7 Wages and salaries

• 4.8 Journals

4.9 Client comments

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1. PURPOSE Report to Directors

This document covers the audit of the financial statements for Gloucestershire Association of Secondary Headteachers Limited T/A Adfecto for the year ended 31 August 2021.

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Randall & Payne I Audit Report – Adfecto

1.1 INTRODUCTION

The International Standards on Auditing (UK and Ireland) 260 require us to communicate significant matters arising from our audit to you.

In accordance with our normal practice we have prepared this report to summarise the principal matters that came to our attention during the course of the audit, which may include:

• Key accounting issues impacting on the financial statements

• Outstanding matters to complete the audit

• Our views on accounting systems and controls

Where an audit meeting is to take place, it can also be used as an agenda for the purposes of that meeting.

1.2 AUDIT COMMUNICATIONS

We explained our audit responsibilities and objectives, procedures and limitations in our letter of communications. This letter also explains our approach to reporting audit findings to management, taking account of your requirements as well as our professional responsibilities. This document discusses only the major issues arising from our audit.

1.3 ETHICAL STANDARDS

We are required to, and have complied with, the new and revised Ethical Standards issued by the Financial Reporting Council (FRC) and all threats to our independence, as identified to you in our planning communication letter, have been properly addressed through appropriate safeguards.

Randall & Payne LLP has procedures in place to ensure that its partners and professional staff comply with both the FRC’s Ethical Standards and the Code of Ethics adopted by the Institute of Chartered Accountants in England and Wales.

No additional facts or matters have arisen during the course of the audit that we wish to draw to your attention and we confirm that we are independent and able to express an objective opinion on the financial statements.

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Randall & Payne I Audit Report – Adfecto

1.4 AUDIT SCOPE

The scope of our work has already been communicated to you via our Audit Communications letter dated 1[st] October 2021.

Matters may come to light during the course of our normal audit tests which are designed to assist us in forming our opinion on the financial statements. Our tests may not necessarily detect all errors or irregularities and should not be relied upon to do so. However, if any irregularity did come to our attention during our audit tests, we would, of course, inform you immediately.

We consider that the audit approach adopted will provide the Directors with the required confidence that a thorough and robust audit has been carried out and can confirm that, at the date of this report, we anticipate no modifications to our audit report as noted in section 10 of the report.

This report has been prepared for the sole use of the Directors and must not be disclosed to any third party, or quoted or referred to, without our prior consent. No responsibilities are accepted by Randall & Payne LLP towards any party acting or refraining from action as a result of this report.

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randall &payne 2. AUDIT PROCESS November 2021 Page 6

Randall & Payne I Audit Report – Adfecto

2.0 AUDIT PROCESS

During the audit process, there are three main sections: Audit planning Audit fieldwork Audit completion

The audit staff involved in the audit process were as follows: Ryan Moore Responsible Individual/Audit Director Nathan Smith Audit Manager

2.1 YEAR END MEETING AND ACCOUNTS PICKUP

The accounts information was uploaded to our secure online portal and a planning meeting held to discuss the year’s activities. We were in contact throughout the year on various matters including budgets, funding and systems, and as such this meeting is more of a catch-up rather than detailed assessment of activities and events. We encourage the company to discuss activities with us through the year so that we are up to date with events at the time of the audit.

2.2 ACCOUNTS PREPARATION

The information was then brought back to Randall & Payne’s offices to be prepared ensuring ethical requirements are met. These were then reviewed ready for the audit planning.

2.3 AUDIT PLANNING

Audit planning commenced once the accounts were prepared and available for review. Using the information obtained from the prior meeting and known activities within the company, a plan for how the audit is to be undertaken was established. Audit planning was then reviewed by Ryan, and an audit planning meeting took place between the team to share knowledge and to discuss and assess audit role and planning on how to approach the assignment.

2.4 AUDIT FIELDWORK AND COMPLETION

Nathan then completed the audit fieldwork on site on 5[th] and 6[th] October 2021. During this time, the finance team within the Company were readily available to assist us in accessing and finding documents and responding to queries.

Audit completion involves pulling together the findings from the audit fieldwork and concluding on the audit overall. Work is undertaken in order to communicate with the company and ensure our overall opinion on the financial statements are reasonable. This work is undertaken in Randall & Payne’s offices following completion of the fieldwork and accounts preparation.

Following the preparation of the audit completion, Ryan reviewed the file, ready for the accounts and Reports to Directors to be distributed prior to a meeting whereby they are then approved and signed.

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3. AUDIT RISKS IDENTIFIED AT PLANNING STAGE

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Areas that we identified during the audit planning stage as being a significant audit risk area, in respect of the financial statements and the audit process, are detailed below.

Revenue recognition	Revenue recognition	Revenue recognition	Revenue recognition
Key area of audit focus	Our approach	Findings	Conclusion
An inherent risk in the company is the recognition of revenue and ensuring that cut-off is appropriately treated. With a large amount of the income being SERCO based, this can be agreed to remittances throughout the period which are clearly dated. However, it is still key to ensure that any other income is appropriately recorded in the accounts.	Obtain external confirmations of the amount of SERCO income expected to be received and assess the source documentation upon which this is based. Ensure that amounts received in the bank agree to payment schedules or income is accrued for accordingly. For other income (i.e. computing hub, science sessions), ensure that any initial documentation triggering the sale (i.e. booking forms) agrees to the invoices being raised and monies received.	Income appears appropriately recognised in the accounts, with accrued income being recognised in order to apportion an appropriate level of income within the accounts. Other income appears to have been appropriately recognised in the accounts, with debtors appearing recoverable, therefore giving satisfaction that the income is indeed free from material misstatements.	Income appears to be appropriately presented in the accounts.

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Randall & Payne I Audit Report – Adfecto

Management override	Management override	Management override	Management override
Key area of audit focus	Our approach	Findings	Conclusion
Despite there being controls and systems in place, there is always the potential for management and key employees to be able to override the prescribed processes and alter the accounts in a material or fraudulent manner.	A review of the systems and controls was undertaken to ensure that these were sufficient. A walkthrough test on each area was also carried out to ensure that systems were being followed. Journal adjustments through the system were also reviewed. Key accounting estimates will be reviewed for bias in comparison to sector specific items. We will consider whether any of the transactions reviewed at any point of the audit are significant or unusual or outside of the company’s normal course of business.	Review of systems and controls did not highlight any significant errors or issues further to our Interim Systems Review. This has been reviewed further in section 7. Estimates and accounting policies used in the accounts appear reasonable and in line with expectations. No unexpected unusual transactions were identified as part of the audit.	There were no major issues identified through a review of the systems and controls.

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Randall & Payne I Audit Report – Adfecto

Related party transactions	Related party transactions	Related party transactions	Related party transactions
Key area of audit focus	Our approach	Findings	Conclusion
With the growing publicity that academic organisations are receiving, it is important to ensure that related party transactions are disclosed accordingly in the accounts. With Directors of the company also being key management in Academies, highlighting the transactions as a result of this relationshipis vital.	Review the declarations of interest and ensure that any transactions identified have been appropriately approved and disclosed in the accounts. Perform searches on the directors to identify any other entities that the company may have transacted with. Ensure disclosures with related parties are appropriately disclosed.	The related party transactions identified during the year in relation to staff recharges for member schools and working sessions. These were correctly disclosed within the accounts. Also appropriately disclosed were the expenditure transactions incurred on behalf of GITEP , as well as the computing hub income.	Related party transactions appear to have been appropriately disclosed and appear reasonable in the accounts.

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Going concern	Going concern	Going concern	Going concern
Key area of audit focus	Our approach	Findings	Conclusion
With income very dependent upon the demand for courses and SBM programmes, income can fluctuate from year to year and therefore can be difficult to forecast. This risk has an effect on the way in which the accounts are prepared and any opinions on the future of the company, and as such is a key area of focus.	Discuss the activities of the company in the current year and how future plans will affect the financial results going forward. Review budgets and forecasts prepared during the year and assess the basis upon which they have been prepared. Flex budgets and forecasts in order to assess how sensitive they are to change and whether this would impact the going concern basis.	The company has a significant amount of reserves built up from operating activities over the years, which allows for sufficient financial headroom to recover any deficits in the future. The next 12 months there are a number of key contracts which will require re- tendering for in order to secure substantial future income, however given the structure of the entity it is not considered to be a significant going concern risk. There is a deficit forecast for 2021/22, however the impact of this on going concern is mitigated by a significant cash at bank and reserves balance.	Despite the deficit forecast in 2021/22, the reserves and cash in hand is deemed sufficient to cover the deficit planned. We therefore consider the company able to continue as a going concern.

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Randall & Payne I Audit Report – Adfecto

Expenditure Cut-Off Key area of audit focus Our approach Findings Conclusion An inherent risk in any organisation A sample of post year-end invoices and bank Overall, based on the sample tested, Expenditure appears to is the recognition of expenditure payments are selected and traced through to expenditure cut-off appears to be be appropriately and ensuring cut-off is supporting documentation and then to the creditor appropriate with no material reflected within the appropriately treated. This in turn and accruals schedules to ensure they are included misstatement of expenditure which financial statements impacts on the completeness and within the correct financial year. appears to be included within the and free from material accuracy of creditor balances. correct financial year. misstatement. Invoices appear to have been allocated to the correct period, with accruals correctly adjusting for any transactions relating to 2021/22, invoiced post yearend.

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randall &payne 4. AUDIT TESTING November 2021 Page 14

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4.0 AUDIT TESTING

During our audit testing, we split the accounts into defined sections, and undertake various tests on each section accordingly.

An overview of our testing is as follows.

4.1 TRUSTEES AND RELATED PARTY TRANSACTIONS

No matter on the value, related party transactions are required to be disclosed in the accounts as per the accounting standards. Our work is to ensure that the disclosures are complete and accurate, and it appears that this is indeed the case for the transactions with related parties.

The related party transactions identified during the year were in relation to staff recharges for member schools and working sessions. These were correctly disclosed within the accounts.

There were no trustees remuneration or expenses paid during the year and therefore a £nil disclosure has been made in that respect within the financial statements.

4.2 FIXED ASSETS

Audit work done on fixed assets is to ensure that they are complete, valued appropriately, physically exist and are the ownership of the company.

A sample of fixed assets in the asset register were selected and audit testing did not highlight issues with these items.

Any repairs and renewals and other related costs attributed to the P&L were also reviewed to ensure that they also should not be capitalised, and have been expended in the year.

4.3 INCOME AND DEBTORS

Each month a payment schedule is provided to Adfecto by Serco, detailing the amounts, invoice numbers and order numbers for each transaction. These are then raised on Sage and issued accordingly. STEM invoices are also raised, however these tend to be fixed fees. Invoices are raised and the amounts agreed to the emails from STEM to confirm the correct balances are being invoiced.

Debtors and accrued income were assessed at the year end to ensure recoverability and, therefore, valuations were reasonable. Our sample did not identify any issues in relation to the debtors balances within the financial statements.

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4.4 BANK AND CASH

Bank reconciliations are performed by the Finance Manager and the balance per the statement is reconciled to the system with an outstanding transaction report being printed. This reconciliation is then reviewed and authorised by the Business Development Manager.

When reviewing the bank reconciliations, it was clear they had been completed accurately, agreed to the bank statement and were authorised.

As part of the review, the bank balances were agreed to the online banking balance to provide assurances that the statements were valid and accurate.

Petty cash reimbursements were also reviewed for signs of unauthorised payments, of which no issues were identified.

4.5 PURCHASES AND CREDITORS

A sample of purchases made by the organisations were selected and details entered on to the system were agreed to the details of the invoice in order to confirm that classification is appropriate. A check was undertaken to ensure that transactions had followed the appropriate authorisation process and had gone through the tender process where applicable.

4.5 PURCHASES AND CREDITORS cont

Cut-off of expenditure in the accounts appears reasonable with no material issues to note. Post year-end reviews are completed in order to ensure all expenditure is posted within the correct year and any additional creditors are identified.

Creditors were assessed at the year end to ensure no disputes in balances and, therefore, valuations were reasonable. Our sample did not identify any issues and it was confirmed that creditors were appropriately valued within the financial statements.

4.6 PROVISIONS

We reviewed the post balance sheet events to establish whether there are any events that may be disclosable in the 2020 accounts. No items were identified, following confirmation from management (see section 11).

A minutes review was completed during the year and it was pleasing to see a wide range of important topics being discussed and a cohesive Board ensuring that accurate decision making is being made.

It appears that within the sample selected items were appropriately ordered, authorised and entered onto the system, with subsequent payments made through the bank. All items were authorised appropriately and of the transactions tested none appeared contentious.

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Randall & Payne I Audit Report – Adfecto

4.7 WAGES AND SALARIES

Our payroll sample included testing both the single employee within the payroll system, as well as a sample of recharged salary invoices.

The individual through payroll was reviewed, noting the gross salary and any deductions and employer contributions. This gross salary was then checked to a contract/ salary statement to confirm that the correct amount of salary was being received. It is pleasing to see that there is a clear salary statement letter on file which has been issued to the client and recorded on their file which validates the contracted salary and will prevent any potential disputes.

4.9 CLIENT COMMENTS

Finally employee existence was confirmed by evidence from the personnel files. Therefore no misstatements were identified within the sample selected.

4.8 JOURNALS

As noted in section 3 of this report, management override is a key area that we need to be aware of in all audits. A review of a sample of journals was undertaken to ensure that the financial records had not been altered in such a way to materially impact the figures against the usual activities of the company. Our testing did not appear to highlight issues of this type, as journals posted appear reasonable.

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5. ADJUSTMENTS MADE DURING ACCOUNTS PREPARATION

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Randall & Payne I Audit Report – Adfecto

During the accounts preparation, a number of adjustments were made as follows:

Description	£
Surplus/(Deficit) per TB	(5,061)
Accounting for retrospective change of depreciation policy Additional depreciation charge	(3,216)
Accounting for disposals of fixed assets Loss on disposal of fixed assets	(171)
Deficit per accounts	(8,448)

The above adjustments have been agreed by the Finance Manager and should be adjusted for in the accounts for the period ended 31 August 2021.

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6. FINANCIAL PERFORMANCE SUMMARY (4 YEAR REVIEW)

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GASH summary financial performance

The summary four-year results as shown in the entity's accounting records:

	2020/21	2019/20	2018/19	2017/18
	£	£	£	£
Income
Training courses and
conferences	590,206	641,464	639,521	848,712
Other income	8,100	1,860
Interest received	9,057	9,457	9,436	1,635
Total Income	607,363	652,781	648,957	850,347
Expenditure
Cost of generating funds	-610,430	-597,052	-747,485	-947,205
Support costs	-5,381	-5,449	-8,544	-8,565
	-615,811	-602,501	-756,029	-955,770
(Deficit)/Surplus	(8,448)	50,280	-107,072	-105,423
Reserve brought forward	1,085,766	1,035,486	1,142,558	1,247,981
Reserve carried forward	1,077,318	1,085,766	1,035,486	1,142,558

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Randall & Payne I Audit Report – Adfecto

Summary financial performance for the Gloucestershire Initial Teacher Education Partnership (GITEP)

The summary four-year results as shown in the entity's accounting records:

	2020/21	2019/20	2018/19	2018/19		2017/18
	£	£		£		£
Income	787,692	674,516		653,180		603,678
ITT Bursaries	1,372,000	1,298,750		1,288,291		784,017
SKE Bursaries/Programme	31,850	162,600
Total Income	2,191,542	2,135,866		1,941,471		1,387,695
Expenditure	-2,227,948	-2,143,762		-1,996,466		-1,403,443
(Deficit)/Surplus	-36,406	-7,896		-54,995		-15,748
Reserve brought forward	334,561	342,457		397,452		413,200
Reserve carried forward	298,155	334,561		342,457		397,452

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7. UNADJUSTED / ADJUSTED MISSTATEMENTS

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7.0 UNADJUSTED / ADJUSTED MISSTATEMENTS

A summary of the adjusted/ unadjusted errors identified during the course of our work is normally included below, however none were identified during the period. We have not disclosed below those items that we consider to be “clearly trivial” in the context of our audit.

On behalf of the Trustees, I confirm that there were no further transactions which should be adjusted for in the financial statements of the year ended 31 August 2021.

………………………………………………….. ………………………………………………….. Trustee Date

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8. INTERNAL SYSTEMS AND CONTROLS

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8.0 INTERNAL SYSTEMS AND CONTROLS

The purpose of the audit was for us to express an opinion on the financial statements. The audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal controls. Our audit is, therefore, not designed to identify all control weaknesses and the matters reported below are limited to those deficiencies that we have identified during the audit.

Overall, considering the size and nature of the entity, it is considered that Company has a good overall system of internal control.

There were no deficiencies in internal control identified during the audit process, and overall the level of controls and systems in place appear sufficient to mitigate risks of material misstatement and override.

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randall &payne 9. JUDGEMENTAL ISSUES November 2021 Page 27

Randall & Payne I Audit Report – Adfecto

9.0 JUDGEMENTAL ISSUES

As part of the audit standards and in line with our audit processes, we are required to obtain an understanding as to the rationale behind accounting estimates and judgements. As such, we have reviewed the following areas.

9.1 DEPRECIATION RATES

We have reviewed the rates at which the fixed assets are depreciated, and a review of the useful lives of items and the residual values in the accounts.

There was a change in the depreciation rates per the Finance Policy during the year and therefore a change in accounting policy. Under FRS102, a change in accounting policy can be as a result of two things:

• Change in the standards

• To make the accounts more reliable and relevant

The change in depreciation policy from 33% reducing balance to 4 year straight line is deemed to be a more reliable and relevant policy when considering the useful life of fixed assets.

Per FRS102 a change in accounting policy should be retrospectively applied as if it has always been in place. This has been applied to the financial statements with the impact being summarised to the right.

The impact on the depreciation charge in year has been summarised below:

Asset Type	Previous Depreciation Policy	Depreciation Charge
Fixtures & Fittings	33% reducing balance	610
Office Equipment	33% reducing balance	390
Computer Equipment	33% reducing balance	3,439
Asset Type	Revised Depreciation Policy	Depreciation Charge
Fixtures & Fittings	4 years straight line	802
Office Equipment	4 years straight line	252
Computer Equipment	4 years straight line	6,601

The overall additional depreciation charge during the year was £3,216. This has resulted in the closing net book values within the accounts to change and remove the continual residual balances being held which was the case in the prior policy.

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randall &payne 10. AUDIT OPINION November 2021 Page 29

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10.1 STATUTORY AUDIT

As a result of the audit work we have undertaken, we have concluded that the financial statements appear to be free from material misstatement. Therefore the report contained within the draft financial statements will become the audit report in the final financial statements, subject to satisfactory clearance of any outstanding matters. This is the standard unmodified audit report. The audit opinion specifically written in the accounts will be as follows:

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

• the information given in the Trustee's Report is inconsistent in any

• material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

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11. OUTSTANDING MATTERS TO COMPLETE AUDIT

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11.1 POST-BALANCE SHEET EVENTS

Prior to signing the audit report, we will need to complete an up to date Post Balance Sheet Events Review. Please can you confirm that you are not aware of any events that may impact these financial statements? This assessment should extend to 12 months from the signing of the accounts. This is included in the letter of representation.

11.2 LETTER OF REPRESENTATION

A letter of representation will be issued with the financial statements and we shall forward this for approval by separate cover.

Client Comments

Client Comments

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randall &payne 12. CONTACT PROGRAMME November 2021 Page 33

Randall & Payne I Audit Report – Adfecto

12. CONTACT PROGRAMME

March/April 2022 Completion of interim and systems testing September 2022 Pick-up of accounts information and preparation of year-end accounts Report from Directors provided by organisation for inclusion in the year-end accounts October 2022 Audit planning, audit fieldwork and audit completion Issue of Report to Directors in advance of Directors’ meeting Annex G grant audit fieldwork November 2022 Attendance (if required) of Randall & Payne at Directors’ meeting regarding audit and accounts findings and sign off of the accounts December 2022 Submission of accounts in advance of deadline Completion and submission of Annex G grant for GITEP

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randall-payne.co.uk

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