## **Tower Hamlets Education Partnership** 

## **Annual Report and Financial Statements** 

31 March 2022 

Charity Registration Number 1173381 (England and Wales) 

Company Limited by Guarantee Registration Number 10556338 (England and Wales) 



**Contents** 

|**Reports**||
|---|---|
|Legal and administrative information|1|
|Trustees’ report|2|
|Independent auditor’s report|9|
|**Financial Statements**||
|Statement of financial activities|13|
|Balance sheet|14|
|Statement of cash flows|15|
|Principal accounting policies|16|
|Notes to the financial statements|19|



Tower Hamlets Education Partnership 



## **Legal and administrative information** 

|**Trustees**|Robert Crothers (Chair)|
|---|---|
||Shahanaz Begum|
||Aziz Choudhury|
||Michael Keating|
||Zafrin Khan-Wheatley_(from 05.07.21)_|
||Brenda Landers|
||Nessa McNeela_(from 05.07.21)_|
||Sir Alasdair Macdonald|
||Owen O’Regan|
||Stephen Purse_(to 05.07.21)_|
||James Thomas|
||Olubunkunola Yusuf_(from 05.07.21)_|
|**Executive Team**|Tracy Smith, Executive Director|
||Daniel Burton, Director of Secondary|
||Education and Partnerships|
||Brendan Crossan, Director of Operations|
||Alison Gawthrope, Director of Primary|
||Education and Partnerships|
|**Registered office**|The Professional Development Centre|
||229 Bethnal Green Road|
||London|
||E2 6AB|
|**Charity registration number**|1173381 (England and Wales)|
|**Company registration number**|10556338 (England and Wales)|
|**Auditor**|Buzzacott LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Principal bankers**|National Westminster Bank|
||Stratford Broadway|
||Gratley House|
||1-11 Broadway|
||Stratford|
||E15 4DX|



Tower Hamlets Education Partnership **1** 



## **Trustees’ report** Year to 31 March 2022 

The Trustees, who are also the directors for the purposes of company law, present their statutory report together with the financial statements of the Tower Hamlets Education Partnership (“THE Partnership” or the “charitable company”) for the year to 31 March 2022. 

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report which has been prepared to meet the requirements of the Companies Act 2006. 

The financial statements have been prepared in accordance with the accounting policies set out on pages 16 to 18 and comply with THE Partnership’s memorandum and articles of association, applicable laws and the requirements of 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 United Kingdom and Republic of Ireland (FRS 102). 

## **OBJECTIVES AND ACTIVITIES** 

## **Principal aims** 

The principal activity of THE Partnership in the year under review was the advancement of education for the public benefit in and through member schools and other educational settings and initiatives in the United Kingdom, with an initial focus on the London Borough of Tower Hamlets. 

## **Review of activities** 

## _**Vision**_ 

Our vision is that all children and young people in Tower Hamlets will experience the best possible educational opportunities, outcomes and life chances. 

## _**Objectives**_ 

To realise this vision, we are building on the existing culture of collaborative working between our schools and other educational settings enabling them to deliver the best possible education for the public benefit. 

## _**Review of the year**_ 

The work of our schools in rising to meet the challenges of the last two years has been exceptional; they have adjusted to regular lockdowns, designed and delivered remote learning, supported their children, young people and families beyond education and helped to hold our community together in the most difficult of times. 

They have not done this alone; one positive outcome of the pandemic has been the way different organisations and groups have come together to solve problems collectively. Tower Hamlets Education Partnership is proud to have played a leading part in this, working to support schools and school leaders and helping them to navigate this new landscape. 

Tower Hamlets Education Partnership **2** 



## **Trustees’ report** Year to 31 March 2022 

THE Partnership exists to bring the schools of Tower Hamlets together and at a time when we were in some ways more isolated from each other than ever before, the power of collaboration came to the fore. It became clear that connecting and collaborating sustained us in a time of such significant change and turbulence. 

Inevitably, our work over the last year has changed as we responded quickly to new challenges, establishing what worked and what didn’t; we had to be agile and flexible and regularly review our work – our Strategic Plan became a very fluid one! 

We are very proud of the work we have done to support schools and school leaders during this period of rapid change and uncertainty.  Our work has included: 

- Introducing executive leadership coaching for all Headteachers. This has been exceptionally welcomed and has supported school leaders in a positive and practical way 

- Increasing the range and number of networks to facilitate collaboration and support, thus allowing classroom teachers and leaders of all levels to connect and share, which has been particularly significant as schools adapt their work to the demands of the last year and continue to do so as we move into a post pandemic world 

- We have continued to develop our Professional Learning offer and our exceptional Leadership Development Programmes, shaping our offer to meet the needs of schools 

- Enhancing our communication strategy and introducing new ways to connect and help schools, from weekly KiT bulletins and virtual coffee mornings to ‘Spotlight’ events and ‘Teach Meets’ 

As an organisation, we have grown and developed, recruiting new members to team as part of our Lead Practitioner initiative where we have built capacity in both primary and SEND work. We have worked hard to increase the contribution from partner schools as part of the schoolled system and have developed a range of programmes ‘in partnership’ with schools or other organisations. 

We have worked closely and positively with the local authority and clarified our respective roles so that we are more efficient and effective in executing the commissioned element of our work. 

Feedback from our annual member survey highlighted the value schools place on being part of THE Partnership. In times of uncertainty and crisis, we are forced to become creative designers, working out how to make the best of the situation thrown at us. Our experiences over the last t wo years have enabled us to question actively and consult on how we can make things better, build on what we have and reinvent where necessary. 

Our work with schools has been characterised by a genuine partnership and we are determined to continue to build on that as we take THE Partnership forward. 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT** 

THE Partnership was incorporated on 10 January 2017 as a company limited by guarantee, company registration number 10556338 (England and Wales), in accordance with the requirements of The School Companies Regulations 2002. It was registered as a charity on 13 June 2017, charity registration number 1173381 (England and Wales). In the event of winding up, each of the members is liable to contribute towards the assets of the charitable company up to the amount of £25. 

Tower Hamlets Education Partnership **3** 



## **Trustees’ report** Year to 31 March 2022 

The Trustees approve the strategic plan and the budget for each financial year. Management of the day-to-day operations is delegated to the Executive Director, subject to appropriate financial limits. The Trustees monitor the activities of THE Partnership at Board meetings which take place three times per year; the Chair meets more regularly with the Executive Director to review progress. A new Strategic Plan 2022-25 was approved by the Trustees in March 2022 for implementation in September 2022. 

A Finance and Operations sub-committee meets three times a year to review financial and operational matters including audit. The Trustees also hold an annual strategy day to consider emerging education policies and practice and to discuss ongoing strategic planning. 

## **Trustees** 

The Trustees who were in office throughout the year, and as at the date of signature of the financial statements are listed at page 1 of these financial statements. 

The Trustees have been selected to include an appropriate mix of educational and business skills and representation of the local community. Following a Trustee recruitment campaign in early 2021, three new Trustees were appointed by the Board in July 2021. 

## **Induction and training** 

The Trustees have been provided with guidance on their responsibilities as Trustees and the new Trustees were provided with a comprehensive induction programme. 

## **Key management personnel** 

The key management personnel of the charitable company comprise the Trustees and the Executive Team (as listed at page 1). The salaries of the Executive Team are reviewed on an annual basis, taking into account external benchmarks and the terms of their contracts. 

No remuneration was paid to any Trustee in connection with his or her services as a Trustee. 

## **Fundraising** 

The charitable company does not actively solicit donations and therefore is not registered with the Fundraising Regulator and does not subscribe to any fundraising codes of practice. When donations from individuals are received, the charity protects personal data and never sells data or swaps data with other organisations. During 2022, the charity received no complaints about fundraising activities. 

## **Public benefit** 

The Trustees have noted the Charity Commission guidance on the public benefit requirement under the Charities Act 2011 and are confident that the activities of THE Partnership comply with this requirement. 

The Trustees will ensure that, in administering the charitable company, they will continue to pay due regard to the Charity Commission guidance on public benefit. 

Tower Hamlets Education Partnership **4** 



## **Trustees’ report** Year to 31 March 2022 

## **Trustees’ responsibilities** 

The Trustees (who are also directors of THE Partnership for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that year. 

In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in 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 United Kingdom and Republic of Ireland (FRS 102); 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Each of the Trustees confirms that: 

- so far as each Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- each Trustee has taken all the steps that he or she ought to have taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information. 

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. 

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

Tower Hamlets Education Partnership **5** 



## **Trustees’ report** Year to 31 March 2022 

## **FINANCIAL REVIEW** 

## **Financial report** 

A summary of the year's results can be found on page 13 of the financial statements. 

Total income for the year amounted to £1,424,171 (2021 - £1,503,656) and total expenditure amounted to £1,561,577 (2021 - £1,560,553), resulting in a deficit for the year of £137,406 (2021 - £56,897 deficit). Total reserves at 31 March 2022 amounted to £714,037 (2021 - £851,443) and the total cash and short-term deposits balance was £583,669 (2021 - £1,024,746). The Trustees consider that this is sufficient to cover the current commitments and continuing activities. 

## **Reserves policy and financial position** 

## _**Reserves policy**_ 

The Trustees have reviewed the reserves policy and the need for free reserves, being those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. Having considered the current income streams, committed expenditure and key financial risks, it is felt that such reserves are necessary to cover any temporary shortfalls in income due to timing differences between income and expenditure and to allow for unforeseen reductions in income pending the implementation of action plans to reduce expenditure. After an assessment of risk, the Trustees have approved a target level of free reserves that is sufficient to cover a minimum of three months' average expenditure. At 31 March 2022, the free reserves (unrestricted funds excluding tangible fixed assets) amounted to £659,495 (2021: £786,106), which exceeds the minimum target level when compared to the expenditure in the year then ended. In the light of reduction in expected income, this level of reserves is considered to be sufficient to achieve the target level of free reserves in 2022-23. 

## _**Financial position**_ 

The balance sheet shows total net assets of £714,037 (2021 - £851,443), all of which relates to unrestricted funds. The Trustees consider that this is sufficient to cover commitments and to finance the continued running of activities in accordance with the reserves policy set out above. 

## **Risk management** 

The Trustees, together with the Executive team, have assessed the major risks to which the charitable company is exposed. The Trustees believe that they have established effective systems to mitigate those risks by putting operational plans in place, by monitoring reserve levels, by ensuring that there are adequate controls over key financial systems and by periodically reassessing the operational and business risks. At an early stage, the Trustees acknowledged and recognised the potential impact of the COVID-19 pandemic on the future operations of the charitable company, its beneficiaries, partners and stakeholders and on wider society. As a result, the Trustees regularly considered and reviewed these risks and ensured that appropriate mitigating actions were taken even when the pandemic continued to have an impact for a second year. 

The Trustees have identified the key risks as set out on the following page. 

Tower Hamlets Education Partnership **6** 



## **Trustees’ report** Year to 31 March 2022 

## _**Financial risks**_ 

There are a number of risks to our long-term viability: over-dependency on income from limited sources, lack of capacity and capability to diversify income sources and a failure to convince members of the benefits of diversification and growth. An increase in income from alternative sources this year, along with increased consultation with member schools over our service offer, provides evidence of the active management of these risks. 

## _**Public policy risks**_ 

New national policy in response to Covid-19 in relation to areas such as examinations & assessment, inspection, the Early Career Teacher framework and academisation requires THE Partnership to be agile in the way the risks to ourselves and our member schools are managed. A Schools White Paper was published in April 2022. The implications for THE Partnership are currently under consideration in partnership with the local authority and our member schools. 

## _**Service delivery risks**_ 

In times of significant change, there is a constant requirement for our service offer to be adapted appropriately so that it remains fit for purpose and schools are willing to retain their membership. We have also had to respond to changes in the way that services commissioned by the local authority are funded to ensure clarity in the services being commissioned. 

Service delivery on our behalf by consultants or contractors needs effective quality management systems in place to protect our reputation and membership levels. Feedback from member surveys continues to indicate that these risks are being managed effectively. 

## _**Workforce risks**_ 

We must ensure our people have the necessary skills and motivation to deliver high-quality services and to operate in an efficient and effective way. We have reviewed our staffing structures to ensure they remain appropriate and provided professional development opportunities to enable staff to maintain and enhance their capacity to deliver relevant services. 

We remain acutely aware that the loss of key staff, in addition to creating a risk to the ongoing operations at least in the short-term, could have an impact on the financial and service delivery risks. The actions to mitigate this risk include developing robust systems for the review and appraisal of performance, for personal and professional development and for remuneration. 

## **Future plans** 

Through much of the year, the Trustees have been working with the Executive Team to develop and approve a new strategic plan for 2022-25.  The new plan builds on the successes of the current plan and reflects our ambition to further improve our current work whilst looking for opportunities to develop new work. 

We have based our offer for 2022-23 on feedback from our member schools and an evaluation of the impact previous work.  Having negotiated a new local authority commission, we have reviewed our systems and structures to ensure we can deliver that commission effectively. 

We will maintain a watching brief on any policy changes arising from the Schools White Paper which was published in April 2022 and adapt our strategy accordingly. 

Tower Hamlets Education Partnership 

**7** 



## **Trustees’ report** Year to 31 March 2022 

Approved by the Trustees and signed on their behalf by: 

Trustee: Robert Crothers 

Date: 


Tower Hamlets Education Partnership **8** 



## **Independent auditor’s report** Year to 31 March 2022 

## **Independent auditor’s report to the members of Tower Hamlets Education Partnership** 

## **Opinion** 

We have audited the financial statements of Tower Hamlets Education Partnership (the ‘charitable company’) for the year to 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, 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 March 2022 and of 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 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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. 

Tower Hamlets Education Partnership **9** 



## **Independent auditor’s report** Year to 31 March 2022 

## **Other information** 

The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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. 

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. 

## **Opinions 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; and 

- 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 the 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 the 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 returns; 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 take the small companies’ exemptions from the requirement to prepare a strategic report. 

Tower Hamlets Education Partnership **10** 



## **Independent auditor’s report** Year to 31 March 2022 

## **Responsibilities of Trustees** 

As explained more fully in the Trustees’ responsibilities statement, the Trustees 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. 

## **Auditor’s responsibilities for the audit of the financial statements** 

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations; and 

- we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation). 

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and 

- considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations. 

Tower Hamlets Education Partnership **11** 



## **Independent auditor’s report** Year to 31 March 2022 

## **Auditor’s responsibilities for the audit of the financial statements** (continued) 

To address the risk of fraud through management bias and override of controls, we: 

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; and 

- assessed whether judgements and assumptions made in determining the accounting estimate for the provision for gifts in kind were indicative of potential bias. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

- reading the minutes of meetings of those charged with governance; and 

- enquiring of management as to actual and potential litigation and claims. 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

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


Hugh Swainson, Senior Statutory Auditor 

14 July 2022 

for and on behalf of Buzzacott LLP, Statutory Auditor 

130 Wood Street London EC2V 6DL 

Tower Hamlets Education Partnership **12** 



## **Statement of financial activities (including income and expenditure account)** Year to 31 March 2022 

|Notes<br>Unrestricted<br>funds<br>£<br>Restricted<br>funds<br>£<br>**Income from:**<br>Grants and donations<br>1<br>—<br>5,894<br>Charitable activities<br>2<br>1,418,277<br>—<br>**Total income**<br>**1,418,277**<br>**5,894**<br>**Expenditure on:**<br>Charitable activities<br>3<br>1,555,683<br>5,894<br>**Total expenditure**<br>**1,555,683**<br>**5,894**<br>**Net income and net movement in funds**<br>5<br>**(137,406)**<br>**—**<br>**Reconciliation of funds:**<br>**Balances brought forward at 1 April 2021**<br>**851,443**<br>—<br>**Balances carried forward at** **31 March 2022**<br>**714,037**<br>—|**Total**<br>**2022**<br>**£**<br>**5,894**<br>**1,418,277**<br>**1,424,171**<br>**1,561,577**<br>**1,561,577**<br>**(137,406)**<br>**851,443**<br>**714,037**|Total<br>2021<br>£<br>60,230<br>1,443,426|
|---|---|---|
|||1,503,656|
|||1,560,553|
|||1,560,553|
|||(56,897)<br>908,340|
|||851,443|



All of the charitable company’s activities derived from continuing operations. All funds in the prior year were unrestricted. 

There is no difference between the net movement in funds above and the historical cost equivalent. 

Tower Hamlets Education Partnership **13** 



## **Balance sheet** As at 31 March 2022 

|Notes|**2022**<br>**£**|**2022**<br>**£**|2021<br>£|2021<br>£|
|---|---|---|---|---|
|**Tangible fixed assets**<br>9<br>**Current assets**<br>Debtors<br>10 <br>Cash at bank and in hand<br>Short term deposits<br>**Creditors**: amounts falling due<br>within one year<br>11<br>**Net current assets**<br>**Total net assets**<br>**The funds of the charity:**<br>Restricted funds<br>12<br>Unrestricted funds<br>. General fund|**640,693**<br>**583,669**<br> **—**|**54,542**<br>**659,495**|67,171<br>524,746<br>500,000|65,337<br>786,106|
||**1,224,362**||1,091,917||
||**(564,867)**||(305,811)||
||||||
|||**714,037**||851,443|
|||—<br>**714,037**||—<br>851,443|
|||**714,037**||851,443|



Approved by the Trustees of Tower Hamlets Education Partnership, Company Registration No. 10556338 (England and Wales) and signed on their behalf by: 

Trustee: Robert Crothers 

Approved on: 


Tower Hamlets Education Partnership **14** 



## **Statement of cash flows** Year to 31 March 2022 

|Notes<br>**Cash flows from operating activities:**<br>Net cash provided by operating activities<br>A<br>**Cash flows from investing activities:**<br>Purchase of tangible fixed assets<br>**Change in cash and cash equivalents in the year**<br>**Cash and cash equivalents at 1 April 2021**<br>B<br>**Cash and cash equivalents at 31 March 2022**<br>B|**Year to 31**<br>**March 2022**<br>**£**|Year to 31<br>March2021<br>£|
|---|---|---|
||**(425,134)**|481,397|
||**(15,943)**|(74,691)|
||**(441,077)**<br>**1,024,746**|406,706<br>618,040|
||**583,669**|1,024,746|



## **Notes to the statement of cash flows for the year** 

## **A Reconciliation of net movement in funds to net cash provided by operating activities** 

||**Year to 31**<br>**March 2022**<br>**£**|Year to 31<br>March2021<br>£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**<br>**Adjustments for:**<br>Depreciation charge<br>(Increase) decrease in debtors<br>Increase (decrease) in creditors<br>**Net cashprovided by operating activities**|**(137,406)**<br>**26,738**<br>**(573,522)**<br>**259,056**|(56,897)<br>9,354<br>667,677<br>(138,737)|
||**(425,134)**|481,397|



## **B Analysis of cash and cash equivalents** 

|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2022**<br>**£**<br>**583,669**<br>**—**<br>**583,669**|2021<br>£<br>524,746<br>500,000<br>1,024,746|
|Cash at bank and in hand<br>Short term deposits<br>**Total cash and cash equivalents**|||



## **C Analysis of changes in net debt** 

|**Analysis of changes in net debt**||||
|---|---|---|---|
||At 1 April<br>2021|Cash<br>flows|**At 31 March**<br>**2022**|
|Cash at bank and in hand<br>Short term deposits|524,746<br>500,000|58,923<br>(500,000)|**583,669**<br>**—**|
|**Total**|1,024,746|(441,077)|**583,669**|



Tower Hamlets Education Partnership **15** 



## **Principal accounting policies** Year to 31 March 2022 

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below. 

## **Basis of preparation** 

These financial statements have been prepared for the year to 31 March 2022 with comparative information displayed in respect of the year to 31 March 2021. 

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements. 

The financial statements have been prepared in accordance with 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The charitable company constitutes a public benefit entity as defined by FRS 102. 

The financial statements are presented in sterling and are rounded to the nearest pound. 

## **Critical accounting estimates and areas of judgement** 

Preparation of the financial statements requires the Trustees and management to make significant judgements and estimates. 

The items in the financial statements where these judgements and estimates have been made include: 

- Estimating the useful economic life of tangible fixed assets for the purposes of calculating depreciation; 

- estimating accrued expenditure; and 

- determining the apportionment of expenditure between governance and other support costs and between support costs and the various other categories of expenditure. 

In addition to the above, the impact of the continuing global coronavirus pandemic unpredictable. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, beneficiaries, funders, suppliers and the wider economy. 

As set out in these accounting policies under “assessment of going concern”, the Trustees have considered the impact of the pandemic on the charity and have concluded that although there may be some negative consequences, it is appropriate for the charity to continue to prepare its accounts on the going concern basis. 

## **Assessment of going concern** 

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The Trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements. 

The Trustees have concluded that greater financial pressures in the wider education system may, in the longer term, result in greater risk in relation to the fundraising for the charity. 

Tower Hamlets Education Partnership **16** 



## **Principal accounting policies** Year to 31 March 2022 

## **Assessment of going concern** (continued) 

However, they believe that the charity is a going concern on the basis detailed within the ‘Future plans’ section within the Trustees’ report (see page 7). Based on this, the Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the financial statements are detailed above. 

## **Income recognition** 

Income is recognised in the year in which the charitable company is entitled to receipt, it is probable the charitable company will receive the income, and the amount can be measured with reasonable certainty. Income is deferred only when the charitable company has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period. 

Income comprises donations, membership fees, fees for work commissioned by third parties, growth funding from the local authority and income from training and events. 

The membership period is coterminous with the year end. Any membership fees relating to the following year received in advance of the year end are deferred to the following year. 

Fees from work commissioned by third parties and income from training and events are recognised to the extent that it is probable that the economic benefits will flow to the charitable company and the revenue can be reliably measured. 

## **Expenditure and the basis of apportioning costs** 

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to make a payment 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. 

All expenditure is accounted for on an accruals basis. 

Expenditure on charitable activities includes expenditure associated with the primary charitable purposes as described in the Trustees’ report. Such costs include direct costs and an allocation of support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. 

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charitable company it is necessary to provide support in the form of financial procedures, IT, office services and equipment and a suitable working environment. 

They include governance costs which are the costs associated with the governance of the charitable company and the costs associated with the strategic, as opposed to day to day, management of the charitable company’s activities. Support costs are allocated in full to expenditure on charitable activities. 

Tower Hamlets Education Partnership **17** 



## **Principal accounting policies** Year to 31 March 2022 

## **Fixed Assets** 

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation. Appropriate expenditure of £1,000 or more is capitalised. Depreciation is recognised on a straight-line basis so as to write off the cost over the useful lives of fixed assets as follows: 

Computer equipment and software 

over 3 years 

## **Debtors** 

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. 

## **Cash at bank and in hand and short-term deposits** 

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. 

Short term deposits are cash amounts held by the charity with a maturity date of less than one year. They are measured at the cash value of the deposit. 

## **Creditors** 

Creditors 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. Creditors are recognised at the amount the charitable company anticipates it will pay to settle the debt. 

## **Pension costs** 

The pension costs represent payments in respect of individuals seconded to the charitable company. These costs are charged to the Statement of Financial Activities in the period to which they relate. The charitable company’s only obligation is to pay the pension contributions applicable to the periods during which the relevant individuals are seconded to it. 

## **Leased assets** 

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the lease term. 

## **Fund structure** 

Unrestricted funds comprise those monies which are freely available for application towards meeting the charitable objectives of the charitable company at the discretion of the Trustees. 

Restricted funds represent monies which have been raised for a specific purpose or which are subject to restrictions on their use. Once the purposes have been fulfilled, or the funds used in accordance with the conditions, they are released to unrestricted funds. 

Tower Hamlets Education Partnership **18** 



## **Notes to the financial statements** Year to 31 March 2022 

## **1 Donations** 

|**Total**|Unrestricted<br>funds<br>£|Restricted<br>funds<br>£<br>5,894|**Total**<br>**2022**<br>**£**|Total<br>2021<br>£|
|---|---|---|---|---|
||—||**5,894**|60,230|



The donations received relate to the purchase of IT devices for donation to member schools. 

## **2 Income from charitable activities: School improvements** 

||**Year to 31**<br>**March**<br>**2022**<br>**£**|
|---|---|
|Membership fees<br>Training and events<br>Interest received<br>Primary Education support packages<br>Commission for school improvement and other funding from London<br>Borough of Tower Hamlets<br>Other trading activity|**382,734**<br>**185,832**<br>**631**<br>**177,120**<br>**544,763**<br>**127,197**|
||**1,418,277**|



## **3 Expenditure on charitable activities: School improvements** 

||Direct<br>£|Support<br>£|**Year to 31**<br>**March**<br>**2022**<br>**£**|
|---|---|---|---|
|Consultants<br>Educational materials and data<br>Staff costs<br>Depreciation<br>IT costs<br>Other support costs<br>**Total expenditure 2022**|487,699<br>103,900<br>612,339<br>19,266<br>1,247<br>—|—<br>—<br>179,124<br>7,472<br>81,243<br>69,287|**487,699**<br>**103,900**<br>**791,463**<br>**26,738**<br>**82,490**<br>**69,287**|
||**1,224,451**|**337,126**|**1,561,577**|



||_Direct_<br>_£_|_Support_<br>_£_|_Year to 31_<br>_March2021_<br>_£_|
|---|---|---|---|
|_Consultants_<br>_Educational materials and data_<br>_Staff costs_<br>_Depreciation_<br>_IT costs_<br>_Other support costs_<br>_Total expenditure 2021_|_490,994_<br>_63,168_<br>_570,881_<br>_4,049_<br>_125,224_<br>_—_|_—_<br>_—_<br>_172,268_<br>_5,305_<br>_52,162_<br>_76,503_|_490,994_<br>_63,168_<br>_743,149_<br>_9,354_<br>_177,386_<br>_76,503_|
||_1,254,316_|_306,237_|_1,560,553_|



Tower Hamlets Education Partnership **19** 



## **Notes to the financial statements** Year to 31 March 2022 

## **4 Support costs** 

||**Year to 31**<br>**March**<br>**2022**<br>**£**|Year to 31<br>March<br>2021<br>£|
|---|---|---|
|Premises costs<br>Staff costs<br>IT costs<br>Depreciation<br>Other expenses<br>Governance costs<br>. Audit and accountancy fees|**37,696**<br>**179,124**<br>**81,243**<br>**7,472**<br>**11,828**<br>**19,763**|35,670<br>172,268<br>52,162<br>5,305<br>21,583<br>19,250|
||**337,126**|306,237|



## **5 Net expenditure** 

This is stated after charging: 

||**Year to 31**<br>**March**<br>**2022**<br>**£**|Year to 31<br>March<br>2021<br>£<br>33,697<br>7,250<br>1,350|
|---|---|---|
|Operating lease costs<br>Auditor’s remuneration:<br>. Statutory audit<br>. Other services: Accountspreparation|**33,967**<br>**7,500**<br>**1,400**||



## **6 Staff costs** 

No individuals were directly employed by the charitable company during the year (2021 – none). Staff costs below represents the costs of individuals seconded to the charitable company during the year: 

||**Year to 31**<br>**March**<br>**2022**<br>**£**<br>**609,459**<br>**73,677**<br>**108,327**<br>**791,463**|Year to 31<br>March<br>2021<br>£|
|---|---|---|
|Wages and salaries<br>Social security costs<br>Pension costs||568,514<br>69,345<br>105,290|
|||743,149|



The average number of staff during the year, calculated on a headcount and full-time equivalent basis was as follows: 

||**2022**<br>**FTE**|**2022**<br>**Headcount**<br>**8**|2021<br>FTE|2021<br>Headcount|
|---|---|---|---|---|
|Seconded staff|**8**||8|8|



Tower Hamlets Education Partnership **20** 



## **Notes to the financial statements** Year to 31 March 2022 

## **6 Staff costs (continued)** 

The number of staff who earned £60,000 or more during the year (including taxable benefits but excluding employer pension contributions) during the year was as follows: 

||**2022**<br>**Number**|2021<br>Number|
|---|---|---|
|£60,001 – £70,000<br>£70,001 – £80,000<br>£80,001 – £90,000<br>£120,001 - £130,000<br>£130,001 –£140,000|**1**<br>**2**<br>**2**<br>**—**<br>**1**|2<br>2<br>1<br>1<br>—|



Employer pension contributions in respect of the above higher earners during the year amounted to £101,267 (2021: £98,112). 

The key management personnel of the charitable company in charge of directing and controlling, running and operating the charitable company on a day-to-day basis comprise the Trustees and the Executive Team. The total remuneration (including taxable benefits, employer's national insurance contributions and employers pension contributions) of the key management personnel for the year was £500,121 (2021: £461,971). 

## **7 Transactions with Trustees** 

No Trustees were remunerated for services provided as Trustees (2021: none). During the year, no Trustees were reimbursed expenses (2021: none). 

Owing to the nature of the charitable company’s operations and the composition of the Board of Trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which a Trustee may have an interest. Membership subscriptions and services paid for by member schools in which a member of the Board of Trustees has an interest are on an arm’s length basis and amounted to £34,968 (2021: £25,126). Supplier payments of £5,823 (2021: £nil) were paid on an arm’s length basis to member schools in which a member of the Board of Trustees has an interest. 

One Trustee is appointed on the basis that they undertake the role of Director of Children’s Services for the London Borough of Tower Hamlets. The individual undertaking this role and, therefore, acting as a Trustee changed on 2 November 2020. In their role with the London Borough of Tower Hamlets they have the ability to influence transactions between the London Borough of Tower Hamlets and the charitable company, subject to such further review and approval as the London Borough of Tower Hamlets may require. In view of the potential conflict of interest (which has been considered and authorised by the other Trustees in accordance with the Companies Act 2006), the other Trustees of the charitable company review and approve transactions with the London Borough of Tower Hamlets. Transactions with the London Borough of Tower Hamlets during the year were as shown in the table which follows. 

Tower Hamlets Education Partnership **21** 



## **Notes to the financial statements** Year to 31 March 2022 

## **7 Transactions with Trustees** (continued) 

||**Year to 31**<br>**March**<br>**2022**<br>**£**|Year to 31<br>March<br>2021<br>£<br>741,879<br>—<br>743,149<br>31,745<br>50,000<br>193,277|
|---|---|---|
|**Income:**<br>Commission for school improvement and other funding<br>Other<br>**Expenditure:**<br>Staff and related costs<br>Premises and other expenses<br>**Amount receivable at 31 March**<br>**Amountpayable at 31 March**|**544,763**<br>**—**<br>**791,463**<br>**40,173**<br>**612,198**<br>**398,876**||



## **8 Taxation** 

The charitable company is a registered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. 

## **9 Tangible fixed assets** 

||**Computer**<br>**equipment**<br>**£**|
|---|---|
|**Cost**<br>At 1 April 2021<br>Additions<br>At 31 March 2022<br>**Accumulated depreciation**<br>At 1 April 2021<br>Charge for the year<br>At 31 March 2022<br>**Net book value**<br>At 31 March 2022<br>At 31 March 2021|74,691<br>15,943|
||**90,634**|
||9,354<br>26,738|
||**36,092**|
|||
||**54,542**|
||65,337|



## **10 Debtors** 

||**2022**<br>**£**|2021<br>£|
|---|---|---|
|Other debtors: Local authority and other funding<br>Trade debtors<br>Prepayments and accrued income|**612,918**<br>**27,775**<br>**—**|50,000<br>17,171<br>—|
||**640,693**|67,171|



Tower Hamlets Education Partnership **22** 



## **Notes to the financial statements** Year to 31 March 2022 

## **11 Creditors: amounts falling due within one year** 

||**2022**<br>**£**|2021<br>£|
|---|---|---|
|Trade creditors<br>Accruals and deferred income<br>VAT payable<br>Other creditors|**37,916**<br>**413,056**<br>**110,270**<br>**3,625**|195<br>204,160<br>89,630<br>11,826|
||**564,867**|305,811|



## **12 Restricted funds** 

The funds of the charitable company include restricted funds comprising the following balances held on trust to be applied for specific purposes. 

||**At 1**<br>**April 2021**<br>**£**|**Income**<br>**£**|**Expenditure**<br>**£**|**At 31**<br>**March 2022**<br>**£**|
|---|---|---|---|---|
|Recycled IT Schools project<br>Connecting Communities|**—**<br>**—**|**894**<br>**5,000**|**(894)**<br>**(5,000)**|**—**<br>**—**|
||**—**|**5,894**|**(5,894)**|**—**|



The total cost of the Recycled IT project was £1,247 of which £353 was met from unrestricted funds. 

## **13 Lease commitments** 

The charitable company occupies its premises under a licence issued by the London Borough of Tower Hamlets and at 31 March 2022 the total related commitments under noncancellable terms were as follows: 

||**2022**<br>**Land and**<br>**buildings**<br>**£**|2021<br>Land and<br>buildings<br>£|
|---|---|---|
|Amounts due:<br>. within one year|**8,492**|8,492|
||**8,492**|8,492|



Tower Hamlets Education Partnership **23**