Registered number: 10288316 Charity number: 1172272 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Feltons Chartered Accountants Birmingham B13JR SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) CONTENTS Page Reference and administrative details of the charity, its Trustees and advisers Trustees. report Independent auditors. report on the financial statements Statement of financial activities 10 Balance sheet statement of cash flows 12 Notes to the financial statements 13-23 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024 Trustees G Walker (appointed 31 October 2016) M Hall (appointed 31 October 2016) A Coley (appointed 11 July 2023) D Loughran (appointed 21 July 2023) Company registered number 10288316 Charity registered number 1172272 Registered office 150 Birmingham Road West Bromwich West Midlands B70 6QT Independent auditors Feltons, Statutory Auditor 8 Sovereign Court 8 Graham Street Birmingham B13JR Bankers Barclays Bank plc PO Box 299 Birmingham B13PF Solicitors The Penninsula Victoria Place Manchester M4 4FB Page 1 SANDWELL VALLEY SCHOOL LIMITED {A company limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The trustees present their report and financial statements for the Period ended 31 August 2024. Objectives and activities The Charity's objects are restricted specifically, and only for the public benefit, to promote and advance the education of people under the age of 25 years in Sandwell and surrounding areas in such ways as the Directors think fit, including by.. The provision and conduct of a day school at the premises known as Sandwell Valley School. For such time as the school accepts young people be￿een the ages of 11 to 19. The Directors have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. The Governors, who served during the period and up to the date of signature of the financial statements, were.- G Walker T Burns D Loughran A Loughran A Coley Achievements and performance during academic year 202312024 There have been numerous areas developed ranging from the physical environment, pastoral intervention, behaviour management strategies and to developments in the curriculum. Below are the definite highlights.. 100 % of Year 11s completed either GCSE or Functional Level qualifications. 100 % of our Y11s and Y12s are progressing to full-time educationltraining with O % NEET (not in education, employment or training). Joint Council for Exams Qualifications (JCQ) also inspected us. We received a very positive report on the inspection for exam preparations for Vocational and General Assessments JCQ 2024 Inspection Report.pdf External Quality Assurance Inspection with local councils resulted in positive outcomes. Principal's regular attendance at West Midlands lieutenancy group to support with education projects School educational trips (Dudley Zoo, Drayton Manor, Careers Conference) The school provided education to the following number of students: Page 2 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee} TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 . 2.1 ADMISSION Number of pupils currently on roll 95 (54Y4J of 175 capacity) 2.1 PUPIL ADMISSION REGISTER Students by Gender EAL & Non-EAL Students Non-EAL 5% Female 43% Male 57% EAL 95% Students by Year Group Year 12 Year7 Year 12% Year 11. 41% Year 9 7% Year 10 29% Page 3 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Apart from Year 12 who can self-refer, young people referred to Sandwell Valley School by councils and schools from Walsall MBC, Sandwell MBC, Birmingham CC, and Worcester MBC. The student body includes vulnerable young people, those with ECHPS and needs, and those students who require a smaller nurturing education environment. Most students require assistance with school meals. SVS has a record of accomplishment of working with students who have missed a significant amount of formal education which has resulted in significant gaps in their attainment, knowledge and skills. Curriculum and reSoU￿eS are planned to meet the needs of students. In particular, support with.. 1) 2) 3) Emotional and wellbeing Gaps in education and attainment Improvement in attendance Outcomes for students Pupil Destinations: Percentage of puplls staying in education or trainlng after Key Stage 4 1000/0 of our Y11s and Y12s are progressing to full-time educationltraining with 00/0 NEET (not in education, employment or training). See details below= SVS Yll & Y12 Full time education Full time training Not in education, training or employment Total 75°A 25° o/ GCSE and Functional Skills Achievement: Our results from the 2023-24 have set a promising foundation for improvement. A totsl of 23 Year 11 and 12s, of which 14 are internal candidates and 9 are transferred candidates, took 86 individual GCSES, covering a range of five subjects- Maths, English, Double Science and Citizenship. Iv. School Development Plan 2023 (Headlines): Our School Development Plan (SDP) outlines our key priorities, and we are making steady progress toward our goals. This year, our focus areas include improving pupil outcome across all key stages and deepening community partnerships. Our mid-term focus is on increasing numbers of students with Education Health Care Plans by working with Sandwell, Walsall MBC and Dudley MBC to recruit students. Financial support towards professional qualifications for staff including National Professional Qualification (NPQ and ECT (Early Career Teacher) Induction programme. Looking to the future, we aim to expand our curriculum further, with plans to introduce new vocational courses that align with local employment needs. Additionally, we are exploring opportunities to enhance and secure our facilities, particularly setting-up the school gate. Page 4 TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structurej governance and management The charity is a company limited by guarantee. In the event of the company being wound up, the liabilities in respect of the guarantee are limited to £1 per member of the charity. The trust8es. who are also the Directors for the purpose of Gompany law. and who served during the Period and up to the date of signature of the financial statements were: Mr G Walker Mr A J W Simpson (resigned 3010612023) Mr A Coley (appointed 0110612023) Mrs M Hall New or replacement trustees are recruited and appointed by the existing trustees. The Trustees and the Board of Governors meet four times a year to review the operations and performan￿ of the school. A Govemance statement is in place stating the objectives and expectations of govemors. During the July2024 scheduled meeting. all Governors received Board papers outlining and an update on Ofsted regulations, Independent School requirements, JCQ (Joint Council for Qualifications) requirements and DfE (Department for Education) keeping children safe in education. Training is continually updated through scheduled meetings. Safeguardingl PREVENT, Leadershlp and Governance. The purpose of the Board: Ensuring clarity of vision. ethos and strategic direction Holding executive leaders to account for the educational perfomance of the organisation and its pupils, and the performance management of staff. Overseeing the financial perfonmance of the organisation and making sure tts money is well spent. The Trust's Governance Structure is outlined below: The TrLJStees are responsible to detemiine the pay and conditions of key management personnel. This is done in consultation with an external human resources company who provide advice on the comparative positions across the sector. The School's PrincipallCEO (Head Teacher) is responsible for recommending any changes in pay and conditions of the remainder of the paid service. Sandwell Community Caring Trust (SCCT} registered charity number 1086162 is a charity whose Chief Executive Offiter is a Trustee of Sandwell Valley School (SVS). Any transactions be￿een SCCT & SVS are included in a note to the accounts. Disclosure of information to auditor each of the trustees has confirmed that there is no infomiation of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriat8 Steps to identify such relevant information and to establish that the auditor is aware of such information. Approved by order of the members of the board of and signed on their behalf by: Trustees on Z310512r Mrs M Hall Trustee Page 5 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SANDWELL VALLEY SCHOOL LIMITED Opinlon We have audited the financial statements of Sandwell Valley School Limited (the 'charity') for the year ended 31 August 2024 which comprise the Statement of financial activities. the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure for the year then have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 6 SANDWELL VALLEY SCHOOL LIMITED IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SANDWELL VALLEY SCHOOL LIMITED (CONTINUED) Other information The other information comprises the information included in the Annual report other than the financial statements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees, report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums. or certain disclosures of Trustees, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit., or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strategic report. Page 7 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS, REPORTTO THE MEMBERS OF SANDWELL VALLEY SCHOOL LIMITED (CONTINUED) Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditors. responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the eoonomic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. We reviewed the academy's control and risk management procedures and planned our work based on our assessment of those controls and procedures., This review included an assessment of the risk of material misstatement due to errors, fraud and management override of controls for all material areas in the financial statements- We made enquiries of management and the academy's lawyers regarding any actual or potential litigation andlor claims- Financial statements disclosures were reviewed and checked for compliance with applicable laws., Detailed testing was conducted on balances and transactions including unusual items and those of individual significance to the financial statements., Data analytics were used in order to identify unusual or significant trends- Communications with management and those charged with governance regarding relevant matters was undertaken throughout the audit and on completion Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAS (UK), we exercise professional judgement and maintain professional scepticism throughout the audiL We also.. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. design and perform audit procedures responsive to those risks. and obtain audit evidence that is Page 8 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SANDWELL VALLEY SCHOOL LIMITED (CONTINUED) sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion. forgery, intentional omissions, misrepresentations. or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's intemal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. Conclude on the appropriateness of the Trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material un￿rtainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors, report to the related disclosures in the financial statements or. if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors, report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial ststements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings. including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors, report and for no other purpose. To the fiJllest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report. or for the opinions we have formed. QJeÉE(￿I David W Farnsworth (Senior statutory auditor) for and on behalf of Feltons, Statutory Auditor 8 Sovereign Court 8 Graham Street Birmingham B13JR 28 May 2025 Page 9 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Total funds 2024 Total funds 2023 Note Income from: Charitable activities Other trading activities Investments 1,443,315 10,975 33,835 1,443,315 10,975 33,835 896,697 18,350 Total income 1,488.125 1,488,125 915,047 Expenditure on: Charitable activities 1,386.862 1,386,862 1, 187,730 Total expenditure 1,386,862 1.386,862 1, 187, 730 Net movement in funds 101,263 101,263 (272, 683) Reconciliation of funds.. Total funds brought forward Net movement in fvnds 1,492,815 101,263 1,492,815 101,263 1, 765,498 (272, 683) Total funds carried forward 13 1.594,078 1,594,078 1.492,815 The Statement of financial activities includes all gains and losses recognised in the year. All of the company's activities derive from continuing operations during the above financial periods. The notes on pages 13 to 23 form part of these financial statements. Page 10 SANDWELL VALLEY SCHOOL.LIMITED 4.- REGISTERED. NUMBER: 1028831.6.,.. BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Fixed assets Tangible assets 10 127.666 57,608 127,666 57.608 Current assets Debtors Cash at bank and in hand 103.891 1.658,831 431,363 1, 284,495 1,762,722 1,715,858 Creditors: amounts falling due within one year 12 (296,310) (280, 651) Net current assets 1,466,412 1,435,207 Total assets less current liabilities 1,594.078 1.4g2,815 Net assets excluding pension asset 1.594,078 1,492,815 Total net assets 1.594.078 1,492,815 Charity funds Restricted funds Unrestricted funds 1,594,078 1,492,815 Total funds 13 1.594,078 1,492.815 The Trustees acknowledge their responsibilities for complying with the requlrements of the Act with respect lo accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and 8Uthorised for issue by the Trustees on and signed on their behalf by.. The notes on pages 13 to 23 fomi part of th8se financial ststements. Ylrs rf 11(A I I i {,,. Page 11 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 460,825 112,842 Cash flows from investing activities Purchase of tangible fixed assets {86,489) Net cash (used In)Iprovided by investing activities (86,489) Change In cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 374,336 1,284,495 112.842 1, 171,653 Cash and cash equivalents at the end of the year 1,658,831 1,284,495 The notes on pages 13 to 23 form part of these financial statements Page 12 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 General information Sandwell Valley School Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is shown in the reference and administrative details on page 1. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are prepared in Sterling, which is the functional currency of the charity- Monetary amounts in these financial statements are rounded to the nearest £. Sandwell Valley School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Going concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 2.3 Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Page 13 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.4 Expenditure {continued) Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives. as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and cash associated with the strategic management of the charity. 2.5 Interest receivable Interest on fiJnds held on deposit is included when receivable and the amount can be measured reliably by the charity- this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Tangible fixed assets and depreciation Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis: Short-term leasehold propety Motor vehicles Fixtures and fittings Computer equipment 4 /0 Straight line 20 % straight line 20 % straight line 20 % straight line Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities. Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists. the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 2.7 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Page 14 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.8 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.9 Liabilities and provisions Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. 2.10 Financial instruments The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.11 Employee and retirement benefits Employee benefits Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 2.12 Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Investment income. gains and losses are allocated to the appropriate fund. Page 15 SANDWELL VALLEY SCHOOL LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Critical accounting estimates and areas of judgement In the applications of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the Carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Critical accounting estimates and assumptions= The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Critical areas of judgement Useful economic lives of non