Tower Hamlets Education Partnership Annual Report and Financial Statements Partner 31 March 2024 Charity Registration Number 1173381 IEngland and Wales) Company Limited by Guarantee Regislralion Number 10556338 (England and Walesl
Contents Reports Legal and administrative information Trustees, report Independent auditor's report Financial Statements Statement of financial activities 13 Balance sheet 14 Statement of cash flows Principal accounting policies 16 Notes lo the financial statements Tower Hamlets Education Partnership
Legal and administrative information Trustees Robert Crothers (Chair) Shahanaz Begum Aziz Choudhury Lisa Fraser (from 17.11.23) Michael Keating Zafrin Khan-whealley Nessa McNeela Sir Alasdair Macdonald Owen O'Regan Jon Ryder James Thomas (10 17. 11.23) Olubunkunola Yusuf Executlve Team Tracy Smith, Executive Director Daniel Burton, Director of Secondary Education and Partnerships (to 31.8.23) Ruth Roberts, Director of Operations (from 16.5.23) Alison Gawthrope, Director of Primary Education and Partnerships Reglstered office The Professional Developmenl Centre 229 Bethnal Green Road London E2 6AB Charlty reglstratlon number 1173381 (England and Wales) Company registration number 10556338 (England and Wales) Auditor 8uzzacott LLP 130 Wood Street London EC2V6DL Principal bankers National Westminster Bank Stratford Broadway Gratley House 1-118roadway Strattord E15 4DX Tower Hamlets Education Partnership 1
Trustees, report Year to 31 March 2024 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 I'THE Partnership" or the'charitable company") for the year to 31 March 2024. The report has been prepared in accordance wilh 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 sel 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 Slandard applicable in the United Kingdom and Republic of Ireland IFRS 102). OBJECTIVES AND ACTIVITIES Principal aim8 The principal activity of THE Partnership in the year under review was the advancemenl of education for Ihe public benefil in and through member schools and other educational seltings and initiatives in the United Kingdom, with an initial focus on the London Borough of Tower Hamlets. Review of actlvltles Vislon Our vision is Ihal all childr&n 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. Revlew of the year The long and rich history of collaboration and partnership working in Tower Hamlets continues to provide the foundation for our work with our member schools. The very complex challenges facing schools and school leaders at present require us to strengthen our collaborative approach and to collectively, as Michael Fullan says, 'execute public service with a moral purpose, and develop leaders who 'work in their own schools but a150 participate in the bigger picture,. These traits are writ large in the education and wider community in Tower Hamlets and we feel proud of the exceptional leadership found in our partnership of schools and across the wider system. Both our stralegic plan and our day-to-day work with schools seeks to promote these traits in further developing a collaborative school-led system. Tower Hamlets Education Partnership 2
Trustees, report Year to 31 March 2024 OBJECTIVES AND ACTIVITIES {continuedl Review of activities (continued) Review of the year (continued) Our leaders, teachers, staff, governors and the whole community continue to rise to the challenges facing schools in the current difficult climate and demonstrate remarkable commitment to ensure that our children and young people continue lo learn and achieve. For our part, we continue to support the whole school communily in an increasing variety of ways. We are proud of the part THE Partnership plays in leading the agenda of collaborative, school improvement in Tower Hamlets and in working collectively to build an even stronger community of schools. We have developed greater capacity and brought new insights from the expansion of the excellent consultant team, improving our understanding of how to provide high qualily support and challenge. This has been enhanced through the very effective role of the Headleacher Reference Group who take their role as a critical friend seriously, providing robust scrutiny of our work. We would like to express our thanks for all the support from our member schools, the Local Authority and the wider community and look forward to working with you again next year. 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 regislered 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. The Trustees approve the strategic plan and the budget for each financial year. Management of the day-l04ay operations is delegated to the Executive Direclor, 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 implemenlalion in September 2022 and is under regular review. A Finance and Operations sub-committee meets three limes a year to review financial and operational matters including audit. The Trustees also hold an annual strategy day to consider emerging education policies and praclice 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 ststements. The Trustees have been 5elecled lo include an appropriate mix of educational and Tower Hamlets Education Partnership 3
Trustees, report Year to 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Trustees Icontinuedl business skills and representation of the local community. Following the resignation of a Trustee in November 2023, a new Trustee was appointed by the Board in November 2023. Induction and training The Trustees have been provided with guidance on their responsibilities as Trustees and new Trustees are 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. Fundralsing The charitable company does not actively solicit donations and therefore is not regislered 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 2023124, the charity received no complaints about fundraising activities. Public benefit The Trustees hav8 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 Truslees will ensure Ihat, in administering the charitable company, they will continue to pay due regard to the Charity Commission guidance on public benefit. Trustees, responsibilities The Trustees (who are also directors of THE Partnership for the purposes of company lawl 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 Praclicel. 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 consislently; 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 RepLtblic of Ireland (FRS 1021., Tower Hamlets Education Partnership 4
Trustees, report Year to 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT {¢ontinued) Trustees, responsibilities Icontinuedl 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 lime 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 deleclion of fraud and other irregularilies. 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 Truslee 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 Ihe 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 S
Trustees, report Year to 31 March 2024 FINANCIAL REVIEW Flnancial report A summary of Ihe year's results can be found on page 13 of the financial statemenls. Tolal income for the year amounted to £1,216,938 (2023 - £1,207,121) and total expenditure amounted lo £1,239,164 (2023 - £1,329,234), re5ulling in a deficit for the year of £22,228 (2023 - £122,113 deficit). Total reserves a131 March 2024 amounted to £569,69612023 £591,924) and the total cash and short-term deposits balance was £841,405 (2023 £911,171). The Trustees consider that this is sufficient to cover the current commitments and continuing activities. Reserves policy and financial position ReseNes policy The Tru5tee5 have reviewed the reserves policy and the need for free reserves, being those unreslricled 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 lo cover a minimum of three months, average expenditure. Al 31 March 2024, the free reserves (unrestricted funds excluding tangible fixed assets) amounted to £551,966 12023-. £548,962), 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 largel level of free reserves in 2023-24. Financial posltlon The balance sheet shows total net assets of £569,696 {2023 - £591,924), all of which relales lo unrestricted funds. The Trustees consider that this is sufficient to cover commitments and lo finance the continued running of activities in accordance with the reserves policy sel out above. Tower Hamlets Education Partnership 6
Trustees, report Year to 31 March 2023 FINANCIAL REVIEW (continued) Risk management The Trustees, together wilh the Executive team, have assessed the major risks to which the charitable company is exposed. The Trustees believe Ihat 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 risk5. The Trustees have identified the key risks as sel out below. Financial risks There are a number of risks lo our long-term viability.. over-dependency on income from limited sources, lack of capacity and capability lo diversify income sources and a failure to convince members of the benefits of diversification and growth. The re-subscription of all our member schools this year, along with significant in-year savings arising from staffing reorganisalions, provides evidence of the active management of these risks. Publlc pollcy rlsks The trustees are aware of risks with regard to political change and take steps to mitigate them. This involved consultation with member schools, identification of the options for potential MAT structures and consideration of these options at a Board Strategy Day. Discussions with the local authority and maintained schools have continued in order to manage the transition of funding for commissioned services from a Department for Education grant to de-delegated schools funding. Servlce dellvery rlsks In times of significant change, there is a constanl requirement for our service offer to be adapted appropriately so that it remains fit for purpose and schools are willing lo relain their membership. 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 and the Executive Team will continue to regularly review our service offer to members. The Board are provided with details of service delivery, current and planned, at each meeting. 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 Iheir capacity to deliver relevant services. This review has resulted in a reorganisation of the Operations Team and changes to some ExecLStive Team roles during 2022-23. Tower Hamlets Education Partnership 7
Trustees, report Year to 31 March 2023 FINANCIAL REVIEW (continued} Risk management (continued) Workforce risks (continued) We remain acutely aware that Ihe loss of key staff, in addition lo creating a risk lo the ongoing operations at least in the short-term, could have an impacl 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 A full review of the 2022-25 Strategic plan was undertaken in April 2024, which identified development needs, which will be taken to a planned strategy planning meeting in June and again in the Aulum for actions to be sel. Approved by the Trustees and signed on their behalf by: Trustee: Date.. Tower Hamlets Education Partnership
Independent auditor's report Year lo 31 Mafch 2024 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'l for the year to 31 March 2024 which comprise the statement offinancial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounling 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 2024 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 IUKI IISAS (UK)) and applicable law. Our responsibilities under those slandards 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 stalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other elhical 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 e1ve months from when the accounts ale authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concern are described in the relevant seclions of this report. Tower Hamlets Education Partnership 9
Independent auditor's report Year to 31 March 2024 Other Information The Trustees are responsible for the other information. The other infofmation comprises the information included in the annual report other than the financial statements and our auditor's report Ihereon. Our opinion on the financial slatements 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 $0, consider whether the other information is materially inconsislent with the financial statements or our knowledge obtained in the audit or otherwise appears to be malerially 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, Oplnions on other matter8 prescribed by the Companles 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 stalemenls; 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 respecl 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, Of returns adequate for our audit have not been received from branches nol visited by us., or the financial statements are not in agreement with the accounting records and returns., or certain disclosures of Truslees, 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 2024 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 Trustee5 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 liquidale Ihe 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 lo 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 Ihal an audit conducted in accordance with ISAS (UK) will always detect material misstatement when it exists. Misslatements 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 laken on the basis of these financialststements. 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 lo 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 lo identify or recognise non- Gompliance wilh applicable laws and regulations., and we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined thal 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 Uniled Kingdom and Republic of Ireland {FRS 102) and the Charities Act 2011) and those that relate to data protection (General Dala Protection Regulation). We assessed the susceptibility of the charity's financial statements to material misstalemenl, 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 Tower Hamlets Education Partnership 11
Independent auditor's report Year to 31 March 2024 Auditor's responsibilities for the audit of the financial statements {continued} considering the internal controls in place to mitigate risks of fraud and non- compliance with law5 and regulations. To address the risk of fraud through management bias and override of conlrols, 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 lo.. reading the minules of meelings 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 Ihe audit procedures required to idenlify 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 misstatemenls 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 Ihe Financial Reporting Council's website al www.frc.org.uklauditorsresponsibilities. 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 slate to the charitable company's members those matters we are required lo slate 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 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 2024 Unffjtrlctsd funds Re5trl¢ted funds Totsl 2024 Total 2023 Notes Incomo from: Granls and donalions Charitable activities Total Income 9,000 9,000 1,207,936 1.216,936 1,207,936 1,207,936 1,207.121 1,207,121 9,000 Expondlturg on.. Charitable activities Total exponditure 1,230,164 1,230,164 9,000 9,000 1,239,164 1,239.164 1,329.234 1.329.234 Net oxpendlture and net movem•nt In fund5 122,2281 122,2281 1122,1131 Reconclllatlon of funds.. Balan¢&s brought foNard at 1 Aprll 2023 8alancg5 carrled forward at 31 March 2024 591,924 569,696 591,924 569,896 714.037 591.924 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 2024 2024 2024 2023 2023 Notes Tangible fixed assets 17,730 42,962 Current assets Debtors Cash at bank and in hand Short term deposits 10 63,364 341,405 500,000 904,769 78,407 411,171 500,000 989,578 Credltors.. amounts falling due within one year {352,8031 1440,6161 Net current assets Totsl net assets 5SI,966 569,696 548.962 591.924 The fund8 of the charity: Unrestricted funds General fund 569,696 569,696 591,924 591,924 Approved by the Trustees of Tower Hamlels Education Partnership, Company Registration No. 10556338 (England and Wales) and signed on their behalf by.. Trustee.. Approved on., Tower Hamlets Education Partnership 14
Statement of cash flows Year to 31 March 2024 Year to 31 March 2024 Year lo 31 March 2023 Notes Cash flows from operating actlvities: Net cash lused in) provided by operating activities 166,986) 347,182 Cash flov4B from investSng activltles: Purchase of tangible fixed assets (2,7801 119.8801 Change In cash and cash equlvalents In the year Cash and cash equivalents at 1 Aprll 2023 Cash and cash equlvalents at 31 March 2024 (69,7661 911.171 841,405 327,502 583,669 911,171 Notes to the statement of cash flov for the year A Reconclllatlon of net movement In funds to net cash {used In) provided by operating activities Year to 31 Year to 31 March 2024 March 2023 Net movement in funds la5 per the ststemont of financlal actlvltlesl Adjustments for.. Depreciation charge Decrease in debtors Decrease in creditors Net cash {u8ed inl provlded by operating activltl8S {22,2281 (122,1131 28,012 15,043 (87,813) 166,9861 31,260 562,286 1124,251) 347,182 B Analysis of cash and cash equivalents 2024 2023 Cash at bank and in hand Short term deposits13 months or less) Totsl cash and cash equlvalents 341,405 500,000 841,405 411,171 500,000 911,171 Analysis of changes in net debt At1 April 2D23 At31 March 2024 Cash flows Cash at bank and in hand Short term deposits13 months or less) Totsl 411,171 500,000 911.171 169,7661 341.40S 500,000 841.405 {69,766} Tower Hamlets Education Partnership 15
Principal accounting policies Year to 31 March 2024 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 2024 with comparalive information displayed in respect of the year to 31 March 2023. The financial statements have been prepared under the historical cost convention with items recognised al cost or transaction value unless Othejwise staled in the relevanl 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 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Companies Act 2006. The charitable company conslilutes a public benefit entity as defined by FRS 102. The financial statements are presented in sterling and are rounded lo the nearest pound. Critlcal accountlng estSmat8s 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 thesejudgements and estimates have been made include.. Estimating the useful economic life of langible fixed assets for the purposes of calculating depreciation., estimating accrued expenditure., and determining the apportionment of expenditure belween governance and other support cosls and between support costs and the various other categories of expenditure. 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 respecl 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. However, they believe that the charity is a going concern on the basis of financial forecasts Tower Hamlets Education Partnership 16
Principal accounting policies Year to 31 March 2024 Assessment of going concern (continued) and the budgeted level of reserves which are significantly in excess of the minimum level identified in the reserves policy. Based on this, the Truslees are of the opinion Ihat the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas ofjudgement 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 lo fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is lo 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 thal il is probable that the economic benefits will flow to the charitable company and Ihe revenue can be reliably measured. Expendlture 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 th81 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 aclivities includes expenditure associaled with the primary charitable purposes as described in the Trustees, report. Such costs include direct cost5 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 2024 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 sofvare over 3 years Debtors Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued al the amouni 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 8 maturity of less than three months from the date of acquisition. Short term deposils 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 al th8 balance sheet date as a result of a past event, il is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors are recognised at the amount the charitable company anticipales it will pay to settle the debt. Pension costs The pension cosls represenl payments in respect of individuals seconded lo 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 individua15 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 slraight-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 charilable company at the discretion of the Trustees. Restricted funds represent monies which have been raised for a specific purpose or which are subject to reslriclions on their use. Once the PL¢rposes 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 linancial statements Year to 31 March 2024 Donations Un-reslricled Reslncled funds funds Total 2024 Total 2023 Total 9.000 9.000 Income from charitable actlvities: School improvements Year to 31 Year lo 31 March March 2024 2023 Membership fees Training and events Interest received Primary Education support packages Commission for school improvement and other funding from London Borough of Tower Hamlets Other trading activity 383,724 173,844 13,651 122,080 390,078 189,404 4,774 138,637 449,796 74,841 1,207,936 406,688 77,540 1,207,121 Expendlture on charltable activitios.. School improvements Yearto 31 Mar¢h 2024 Direct Support Consultants Educational materials and data Staff costs Depreciation IT costs Other support costs Total expenditure 2024 338,638 85,551 488,449 26,080 338,638 85.551 643,992 28,012 64,674 78.297 1,239,164 155,543 1,932 84,674 78,297 300,446 938,718 Yearlo 31 March 2023 Direct Support Consultant5 Educational materials and data Staff costs Depreciation IT costs Other support costs Total expenditure 2023 328,744 94,057 564,174 22,613 328,744 94,057 757,483 31,280 42,723 74.9S7 1,329,234 193,309 8,647 42,723 74,967 319,646 1,009.588 Tower Hamlets Education Partnership 19
Notes to the financial statements Year to 31 March 2024 Support costs Year to 31 March 2024 Year to 31 March 2023 Premises costs Staff costs IT costs Depreciation Other expenses Governance costs Audit and accountancy fees 38,582 155,543 64.674 1,932 17,075 38,371 193,309 42.723 8,647 14,731 22,640 300,446 21,865 319,646 Net expenditure This is slated after charging.. Year to 31 March 2024 Yearto31 March 2023 Operating lease costs Auditor's remuneration.. Statutory audit Other services.. Accounts preparation 33,967 33.967 9,150 1,600 8,625 1,540 Staff costs No individu8ls were directly employed by the charitable company during the year (2023 none). Staff costs below represents the costs of individuals seconded to the charitable company and other staff costs including agency staff, during the year.. Year to 31 March 2024 Yearto 31 March 2023 Wages and salaries Other staff costs Social security costs Pension costs 479,983 18,177 57,644 88,188 643,992 564,393 19,108 72,157 101,825 757,483 The average number of staff during the year, calculated on a headcount and full-time equivalent basis was as follows.. 2024 2024 FTE Headcount 2023 2023 FTE Headcount Seconded staff Tower Hamlets Education Partnership 20
Notes to the financial statements Year to 31 March 2024 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.. 2024 Number 2023 Number £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90,001- £100,000 £130,001- £140,000 Employer pension contributions respect of the above higher earners during the year amounted to £57,284 (2023., £95,854). The key management personnel of the charitable company in charge of directing and conlrolling, running and operating the charitable company on a day-to-day basi5 comprise the Trustees and the Executive Team. The total remuneration (including laxable benefits, employerfs national insurance contributions and employers pension contributions) of the key management personnel for the year was £379,53512023'. £481,129). 7 Transactlons with Trustees No Trustees were remunerated for services provided as Trustees (2023.. none). During the year, no Trustees were reimbursed expenses (2023.. 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 organisalions, 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 £23,062 12023, £19,984). Supplier paymenls of £10,173 (2023.. £6,182) 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. In their role with the London Borough of Tower Hamlets they have the ability to influence Iransa¢tions beeen the London Borough of Tower Hamlets and the charitable company, subject to such further review and approval as the London Borough of Tower Hamlels 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 Acl 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 2024 7 Transactions with Trustees (continued) Year to 31 March 2024 Year to 31 March 2023 Income.. Commission for school improvement and other funding Other Expenditure: Staff and related costs Premises and other expenses 450,091 407,288 625,937 44,696 738.375 47,780 Amount receivable at 31 March Amount payable at 31 March 22,404 291,933 14.900 178,757 8 Taxation The charitable company is a regi51ered charity and therefore is not liable for income tax or corporation tax on income derived from its charitable activities, as il falls within the various exemptions available to regislered charities. 9 Tanglble fixed asset$ Computer equipment C05t At 1 April 2023 Additions Disposals At 31 March 2024 110.314 2,780 153,541 59,644 Accumulated depreclation At 1 April 2023 Charge for the year Disposals Al 31 March 2024 67.352 28,012 153,5411 41.914 Net book value At 31 March 2024 At 31 March 2023 17,730 42,962 10 Debtors 2024 2023 Other debtors.. Local authority and other funding Trade debtors Prepayments and accrued income 22,404 40.960 16,046 52,538 9,823 78,407 63,364 Tower Hamlets Education Partnership 22
Notes to the financial statements Year to 31 March 2024 11 Creditors: amounts falling due within one year 2024 2023 Trade creditors Accruals and deferred income VAT payable Other creditors 147,806 166,376 20,247 18,374 3S2,803 206,074 216.886 17.656 440,616 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. A11 April 2023 At31 Expenditure March 2024 Income Stsnding Advisory Council on Religious Education Post 16 1,000 8,000 9,000 11,000) (8,000 19,0001 The Standing Advisory Council on Religious Education {SACRE) funding was received from Culham Sl Gabriel's Trust to fund the Lived World Views project which was undertaken by a THEP consultant on behalf of SACRE. The Post 16 funding was received from the Local Authorily lo set up and run post 16 subject neOrkS for school staff. 13 Lease commltments The charitable company occupies its premises under a licence issued by the London Borough ofTower Hamlets and at 31 March 2024 the total related commitments under non- cancellable terms were as follows: 2024 Land and buildings 2023 Land and buildings Amounts due.. within one year 8,492 8.492 8,492 8,492 Tower Hamlets Education Partnership 23