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2023-08-31-accounts

ANNUAL REPORT

2022/23

COMPANY NUMBER: 867944

CHARITY NUMBER: 270901

INTRODUCTION

The report and accounts for the 12 months ended 31 August 2023 have been prepared in accordance with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ 2019 (Financial Reporting Standard 102), and the Companies Act 2006.

CONTENTS

CHAIR’S REPORT 3
1 OBJECTIVES AND ACTIVITIES IN 2022/23 4
1.1 Vision, purpose and values 4
1.2 Organisational objectives 2022/23 4
1.3 Public benefit 6
2 STRATEGIC REPORT 6
2.1 Strategy 6
2.2 How we work 6
2.3 Educational impact 6
2.4 Safeguarding 12
2.5 Stakeholder engagement 13
2.6 Financial overview 14
2.7 Reserves policy 14
2.8 Investment policy and returns 15
2.9 Energy and carbon reporting 16
2.10 Fundraising 18
2.11 Principal risks 18
2.12 Financial risks 18
2.13 Operational plan 2023/24 19
3 STRUCTURE, GOVERNANCE AND MANAGEMENT 21
3.1 Structure 21
3.2 Governance 21
3.3 Responsibilities of the Board of Trustees 23
3.4 Management 24
3.5 Staff 24
3.6 Risk management and internal control 25
4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS 27
4.1 Charity details 27
4.2 Trustees 27
4.3 Members 27
4.4 President and Vice President 28
4.5 Executive 28
4.6 Bankers and professional advisers 28
5 INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF EDUCATION DEVELOPMENT TRUST 29
6 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 33

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CHAIR’S REPORT

I am delighted to introduce this annual report, which describes the financial results and educational impact of EDT’s global portfolio of activities in the period 2022/23. As an organisation, we seek to improve life chances wherever we work, and this report is testimony to our success in making a measurable positive difference to millions of young people and adults. We achieved income of £91.2m in 2022/23, an increase of £2.1m on 2021/22, exceeding our net income targets for the year by £1.5m and delivering a year-on-year increase in Charity and Group reserves. Our strong financial performance and reserves position provides a foundation for future impact.

The report documents our ‘reach’ and the remarkable number of people who have been involved in our programmes. Just as importantly, we present here some rich data about the changes for the better that have resulted from our interventions.

EDT is unusual in that we work in so many contrasting contexts including the UK, the Middle East and Asia, and countries in Sub-Saharan Africa. Regardless of the setting, we seek to provide evidencebased solutions to educational problems. There have been so many notable success stories this year: transforming the climate for learning in England’s government schools through the Behaviour Hubs programme, completing the highly successful Girls Education Challenge project in some of the most disadvantaged neighbourhoods in Kenya, improving outcomes in core subjects across all the primary schools of Rwanda, exceeding national targets for our adult careers guidance service in several UK regions, and providing cutting edge thought leadership support for education reform in several countries through the What Works Hub project. This just a selection of this year’s achievements and I could have chosen several others.

What is particularly heartening about the stories of impact presented in the strategic report is the way that our impact is underpinned by hard numbers. We need to prove that we are making a difference, and to do this properly we need robust measurement and we need to listen to our partners and beneficiaries.

As we look ahead to 2024, I am incredibly excited about the opportunities we have to grow EDT’s impact still further, with huge potential to transform more lives, reduce social inequality and build brighter futures across the globe. We are always keen to hear from governments and other organisations around the world who share our passion for improving lives through education and look forward to continuing working with like-minded partners in the year ahead. I can’t wait to see what we will achieve next.

I hope you enjoy reading this report and thanks to everyone who made the inspiring stories of change described here possible.

Ilse Howling Chair of Trustees, Education Development Trust

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1 OBJECTIVES AND ACTIVITIES IN 2022/23

1.1 VISION, PURPOSE AND VALUES

Our principal objective, as defined in our Articles of Association, is to advance education for the public benefit .

Our vision

A world where everyone’s life is transformed through excellent education.

Our purpose

We strive to change education for good around the world, supporting leaders to raise standards, improve school performance, develop great teachers and open career pathways.

Our values

1.2 ORGANISATIONAL OBJECTIVES 2022/23

In 2022/23, the second year of our strategy, we focused on three core priorities for the successful management of a commercial contracts business: winning work, delivering effectively and ensuring commercial success, underpinned by the two key supporting functions of technology and people. Achievements during the period under review are summarised against each objective.

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living payment. We made significant progress on our I&D ambitions but fell short of our target for the year. We implemented a new global learning and development platform. We did not achieve our target for employee satisfaction, but we implemented a new methodology for scoring employee satisfaction in 2022/23 using an external provider, Gallup. We are developing action plans to implement in 2023/24 to address the challenges arising from the survey.

Results for the year were tracked in our balanced scorecard, presented below.

NEW BUSINESS
Critical success factor KPI Target Actual
1.1 We achieve our new business targets
(currentyear)		 New business income/contribution
contributingto 2022/23		 £10m/
£1.9m		 £10.2m/
£1.2m
1.2 We achieve our new business targets
(nextyear)		 New business income/contribution
contributingto 2023/24		 £24.3m/
£4.8m		 £25.9m/
£1.9m
1.3 We achieve our client diversification
targets		 Value of contracts won considered
client diversification		 £8.3m £4.2m
COMMERCIAL
Critical success factor KPI Target Actual
2.1 We achieve our income targets 2022/23 income from charitable
activities		 £93.0m £90.3m
2.2 We achieve our financial model targets 2022/23 net contribution from
charitable activities		 2.0% 1.7%
2.3 We achieve our financial reserves targets End of year UK free reserves cover
(projected minus min. reserves)		 £5.8m £7.6m
DELIVERY
Critical success factor KPI Target Actual
3.1 We achieve our reach targets 2021-24 Corporate Strategytargets 100% 100%
3.2 Delivery is good or better according to
client/ independent evaluation		 External evaluation reports grade
deliveryasgood or better		 100% 100%
3.3 We achieve our impact targets Impact metrics for major contracts
meet or exceed targets		 100% 81%
TECHNOLOGY
Critical success factor KPI Target Actual
4.1 We have the capability to manage our
tech		 Complete Transformation Design
Outputs		 100% 100%
PEOPLE
Critical success factor KPI Target Actual
5.1 Colleagues are motivated andproductive Employee satisfaction score 4.1 3.8
5.2 We have a safe working environment that
supports the wellbeingof colleagues		 Sick days absence 2.6% 1.5%
5.3 Improvingour employer brand Number of followers on LinkedIn 110,000 122,000
5.4 We have a diverse and inclusive working
environment		 I&D strategy targets 85% 72%

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1.3 PUBLIC BENEFIT

Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and are satisfied that all of our work is for the public benefit. Our educational performance is summarised in the Strategic Report, and particularly in section 2.3.

2 STRATEGIC REPORT

2.1 STRATEGY

This was the second year of our three-year strategy for 2021–24. The strategy articulates our intent to be world-leading in the design and delivery of high-impact, large-scale education change programmes and identifies the key areas for action for the three years starting in 2021/22.

Over the 3 years, we will work with education ministries to make education systems better, support school leaders to enhance school performance at scale, work with individuals to improve their career prospects, and contribute to the body of global evidence and insight into what works in education – and how, as a global community, we can reduce inequities in education around the world. Internally, as we emerge from the pandemic, we will take the best of what we have learnt from the crisis, and feature more adaptive working, closer collaboration with clients, geographically agnostic teamworking, and more focus on our wellbeing.

We are working on our next strategy for the period 2024-2030, which we aim to publish in August 2024.

2.2 HOW WE WORK

We are organised in four operating activities. We deliver programmes at scale in the UK (‘UK’) and in Africa, Middle East and Asia (‘AMEA’); we conduct research and provide education consultancy services (‘Research and Consultancy’); and we manage private schools (‘Independent Schools’).

We have been researching and delivering programmes to improve education around the world, from early years to post-school careers, since 1968. We develop evidence-informed solutions that draw on our continuous research to bring about real change, raise educational standards, support global efforts to address learning crises and reduce inequalities of opportunity.

2.3 EDUCATIONAL IMPACT

Full information on the impact of all of the programmes listed here is available in our Annual Impact report 2022/23.

Lives we touched this year

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Our impact in UK education, developing teachers and leaders

Across the UK, we empower teachers by providing high-quality professional development opportunities for educators at all levels – from those in pre-reception settings right through to those working with school leavers. We support teachers and leaders at all stages of their professional lives to improve teaching and learning outcomes and transform school cultures.

Our programmes offer teachers evidence-based, flexible training, helping them to thrive. This year, through our delivery of the National Professional Qualifications programme, funded by the UK Department for Education (DfE), we provided targeted support to 4,200 educators, helping leaders and aspiring leaders create positive change and improve pupil outcomes. Participants’ feedback has been consistently positive: 96% of participants on our first specialist programme reported satisfaction.

Meanwhile, we have been working on our DfE-funded National Tutoring Programme, through which we deliver specialist training in tutoring best practice to educators, working to help children catch up after the Covid-19 pandemic. 93% of participants who responded to our survey told us they intend to apply what they have learnt from the training with their students. Among pupils, increased selfefficacy, increased engagement and increased motivation were observed.

We have expertise in supporting new and early careers teachers through the DfE-funded Early Career Professional Development Programme, delivered to 16,000 teachers and mentors across 3,000 schools this year. The programme delivers the Early Career Framework that builds the confidence and skills of early careers teachers, leading to higher retention and better outcomes for pupils. The framework also enables mentors to strengthen skills they can use throughout their careers. 92% of surveyed respondents in our second-year cohort felt that their learning had impacted positively on pupils’ progress, motivation and engagement or closing the gap for disadvantaged students. School leaders reported that participating teachers are resilient, confident and ready earlier for positions of responsibility as a result of the quality of the programme.

This year, our flagship Schools Partnership Programme (SPP) supported 9,000 senior and middle leaders in UK schools. The programme provides continuous professional development training to these leaders within clusters of partnership schools to help them engage in a continuous cycle of self-review, peer review and school improvement. In a three-year evaluation of the programme, released by the Education Endowment Foundation in March 2023, 91% of participants rated the SPP resources as being of very high quality and 77% said that participating in SPP has increased confidence in their leadership team’s capacity to make improvements within their school.

Meanwhile, our DfE-funded Behaviour Hubs teams worked with 474 schools this year, reaching 1,700 leaders at various levels, and facilitating connections between Lead Schools and Partner Schools to share their experiences and successes. The programme seeks to improve student outcomes, teacher wellbeing and retention, and national inspection ratings for schools experiencing challenging behaviour. Since joining the programme (although not exclusively because of it), 15 Partner Schools have gone from a 'requires improvement' to a 'good' Ofsted judgement. 100% of participating schools surveyed agreed that the programme had led to positive change and a positive impact on pupil behaviour.

Our DfE-funded Early Years Professional Development Programme (EYPDP) supports early years practitioners working with children in pre-Reception settings, helping them to improve their practice 7

Company Number: 867944

and children’s outcomes in communication and language, mathematics and personal, social and emotional development. In October 2022, we were awarded a contract by the DfE to continue to deliver the EYPDP, now moving into its third phase and available throughout England. Since then, we have reached 4,400 practitioners and 2,800 leaders of early years settings. 90% of surveyed practitioners who completed the first module of the programme agreed that the programme had helped to improve their everyday practice and 93% felt more confident in supporting children’s communication and language development.

Our impact in UK employability and careers

We know how important it is that young people receive expert, informed advice and guidance as they make the critical transition from school to further learning and employment. This year, our employability and careers teams have worked with 100,000 young people, alongside 3,500 educators to support them as they make critical decisions about their lives and futures.

The Inspiring Careers programme has this year worked with the largest number of schools and colleges in its history, working directly with 18,700 secondary school and college students. 99% of the young people we worked with agreed that they were happy with the support they had received from their careers advisor.

Meanwhile, we continued to raise awareness of and encourage the uptake of apprenticeships among young people through our Apprenticeship Support and Knowledge programme, which provided 100,000 students with a greater understanding of the options available to them through apprenticeships, traineeships and T-levels. As a result of the programme, the percentage of students rating their knowledge of apprenticeships as ‘excellent’ or ‘good’ rose from 26% to 73%.

In addition to helping young people to plan their career trajectories, we also work with adult learners and jobseekers in many parts of the UK through other elements of our employability and careers portfolio. Through our work with the DfE-funded National Careers Service, for example, we support increased social mobility, by empowering thousands of customers with the skills and information they need to navigate the learning, employment and skills landscape and become aware of the wide range of learning and work opportunities available to them. This year, we have worked with 82,000 individuals through the NCS. From October 2022 to August 2023, our conversion rate of moving our customers into jobs and/or learning increased to an average of 60% combined across the regions we work in. This is 15% higher than the national 45% target.

In addition, through our North East Ambition programme we have been supporting and advising small and medium-sized enterprises (SMEs) in the northeast of England who are experiencing skills gaps and shortages. The programme is also helping women to enter sectors where they are currently under-represented and supporting SMEs whose work aims to benefit certain groups, such as ex-offenders and families with special educational needs and disability (SEND).

Several of our programme have also specifically supported refugees in the UK. The Making a Difference Programme has been providing onsite employability support for Afghan refugees. In addition, in September 2022, we launched our Ukrainian support team to help those who had been granted the right to live and work in the UK into employment.

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Our impact in the Middle East and Asia

In 2022/23, we worked with system-level partners including the UAE Ministry of Education, Dubai’s Knowledge and Human Development Authority, the Qatar Foundation and the UK Department for Education (for British Schools Overseas) to provide inspection services to 300 schools, impacting 400,000 students and 18,500 teachers. These inspections are designed to help improve teaching and outcomes for students, but this year, there was also a focus on improved care guidance and support. These schools have shown improvement in recent years: this year, 77% of students in Dubai attended private schools rated ‘good’ or better, compared to 70% in 2018/19.

We have also seen improvements in schools thanks to our British Schools Overseas (BSO) and International Schools Quality Mark (ISQM) inspections. Schools reported a high level of satisfaction during inspection: 91% of schools agreed or strongly agreed that the inspection had a positive impact on school improvement three months after the inspection.

Our Alexandria Schools Trust (AST) programme builds the capacity of English teachers and supervisors in Lebanon, Jordan and Egypt to efficiently use English as a medium of instruction and implement the best evidence-based English teaching strategies. This year we worked with the Jordanian and Lebanese Ministries of Education, the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) and three Syrian refugee organisations in Lebanon.

We have also conducted evidence-based supervision training with teachers of Syrian refugees in Lebanon, with a view to improving the quality of English-language education available to 8,100 Syrian refugee children. This is crucial to helping refugee learners to enter the mainstream education system in Lebanon, where English is the language of instruction. In Jordan, 96% of participants reported being satisfied with the training they received. 99% reported acting on the strategies agreed with supervisors and all reported a positive change in learning outcomes as a result.

Meanwhile, in Brunei, we continue to work across 85% of government schools, helping to enhance the English language proficiency of all learners and improve the quality of English language teaching among Bruneian teachers. We have worked closely with the Brunei Ministry of Education to develop curricula, resources and practices that are used on a national level, as well as running national-level training events and programmes. Our 198 teachers have worked directly in classrooms with approximately 17,000 primary, secondary and Sixth Form learners. Learning outcomes for Bruneian students have improved, with the lexile level (measuring students’ reading abilities) rising from 35% to 60% among primary-aged students.

Our impact in Sub-Saharan Africa (SSA)

Across SSA we have supported teachers’ and leaders’ development and connected education professionals across schools and communities to improve learning outcomes for all of their students – including some of the most marginalised. This year, we have worked at scale in Ethiopia, Sierra Leone, and Zimbabwe, in addition to completing large-scale programmes in Rwanda and Kenya, impacting millions of learners.

Teachers are central to improving learning outcomes: high-quality teaching is the single biggest factor in students’ learning and attainment. In all of our programmes across SSA, improving support, training and development opportunities for teachers is a key priority. Our Building Learning Foundations Programme in Rwanda, reached 1,700 teachers with continuous professional

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development courses and 32,000 through our communities of practice, impacting 2.5 million learners this year and 5 million over the lifetime of the programme.

By the end of the programme in 2023 – despite the disruption of the Covid-19 pandemic in preceding years – we had seen a 47 percentage point increase in the number of teachers reaching benchmark competency in English, and a corresponding 63 percentage point increase for mathematics. 59% of Primary 3 pupils were achieving grade-level proficiency in English by endline in 2023 (up from just 17% at baseline) and 46% were achieving this proficiency in mathematics (up from 22% at baseline).

Meanwhile, in Zimbabwe, we have been delivering the teacher development component of the UK Aid-funded Teacher Effectiveness and Equitable Access for All Children programme. In the past year, we have facilitated training for 22,000 teachers and school leaders, who were trained at cluster level to cascade training in their schools to coach and mentor other teachers on foundational literacy, numeracy and pedagogical techniques, reaching one million learners.

In Sierra Leone, we have also been working to improve foundational skills through teacher training, through our Early Grade Reading and Mathematics programme, delivered in partnership with United Nations Children's Fund (UNICEF). This year, 5,600 teachers were trained. Marginalised communities are now showing promising improvements in grade proficiency levels. In grade one, 69% of girls and 67% of boys are performing at grade-proficient level in numeracy, and in literacy, these results are higher at 85% of girls and 72% of boys.

In Kenya, our Wachisana Wetu Wafaulu (Let our Girls Succeed) programme, part of the UK Aidfunded Girls’ Education Challenge, engaged with 2,000 teachers to provide professional development designed to improve learning outcomes. Following the training, pupil assessment scores have improved in literacy and numeracy – endline reports from spring 2023 showed there was an overall increase of 11% in average literacy scores in the intervention group, alongside an increase of 12% in mathematics.

In Ethiopia, our UK Aid-funded programme, Technical Assistance to Reinforce the General Education Quality Improvement Program for Equity (TARGET), has provided leadership support to 97% of the country’s school leaders through its National School Leadership Training. This has included face-toface training, peer learning communities and specialised coaching provided to 92,800 school leaders. The TARGET team has also supported a national drive to increase the proportion of female school leaders, co-creating a strategy with the Ethiopia Ministry of Education.

In Rwanda, our UK Aid-funded Building Learning Foundations programme has also provided school leadership training, both through continuous professional development and professional learning communities for school leaders, facilitating collaboration and peer learning across schools and districts. As a result, the percentage of school leaders meeting expected levels for head teacher competency has increased from 45% at baseline to 90% at endline in August 2023.

Putting our knowledge into practice: Global consultancy

Our global research and consultancy team has continued to provide high-quality support, expertise, guidance and capacity building in many countries for a range of clients this year, including the UK Foreign, Commonwealth and Development Office (FCDO), UNICEF, Dubai Cares, the European Union, the DfE and the Tatweer Company for Educational Services. Beneficiaries of our consultancy work include our direct clients, governments, system-level decision-makers, education organisations,

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non-governmental organisations, donor organisations, members of the education workforce, schools, and learners around the world. Our support to clients in 2022/23 focused on impact reviews, evaluation, research outputs, material development, quality assurance and improvement, and knowledge and skills development.

One of our key projects was on the What Works Hub for Global Education pilot, which received an ‘A’ rating in FCDO’s annual review. Along with our partners, we produced 65 new evidence products which can be used by governments and civil society organisations to improve programming, develop policies and increase evidence uptake around foundational learning issues.

Putting our knowledge into practice: Key research partnerships

This year, we have continued to work with key partners to produce impactful, influential research on pressing issues facing education systems around the world. We worked especially closely with our partner, the International Institute for Educational Planning United Nations Educational, Scientific and Cultural Organization (IIEP-UNESCO), this year to produce a further report, a research brief and a series of documentaries in our project on ‘Teacher management in refugee settings’, in close collaboration with UN Refugee Agency (UNHCR) and Dubai Cares. This research has seen strong engagement from government ministers, with several Kenyan MoE officials seconded to the project. We also had strong government participation at a regional knowledge-sharing event in Uganda.

Putting our knowledge into practice: Our independent schools

We put our knowledge – gained from work in teacher development – into practice through our ownership and management of independent schools: St Andrew’s School and Oakfield Preparatory School in England, and the International School of Cape Town, South Africa.

St Andrew’s School has been ranked 29[th] in the annual Sunday Times ‘Parent Power’ survey of the top 100 UK independent schools and was the winner of the 'Best Educational Environment 2023 (Kent) Award' at the Lux Life Education Awards. The school once again achieved excellent results: Year 6 pupils’ results in Key Stage 2 Standardised Assessment Tests were 20% higher in reading, 22% higher in maths and 23% higher in spelling, punctuation and grammar than the national average. Meanwhile, Oakfield School was rated as ‘excellent’ by the Independent Schools Inspectorate. The quality of teaching has been reflected in pupils’ achievement - including for those of varying abilities or who face additional challenges. Most of the school’s SEND pupils and all English as an additional language pupils have met or exceeded age-related expectations. Moreover, most pupils between Year 2 and Year 6 demonstrated higher or significantly higher performance than average: between 8% and 18% of pupils scored in the ‘very high achievement’ band against the Standard Age Score.

How we do business: Inclusion and Diversity (I&D)

This year, we have maintained our focus as an organisation on inclusion and diversity. Throughout the year, we have had additional focus on our efforts to be an anti-racist organisation, including by offering anti-racism training to colleagues at all tiers of the organisation. The course focused on what it means to be an anti-racist ally and on the impact of unconscious biases. We also provided training on micro-aggression, its impact on individuals, and how we can all become more selfaware and mindful of our attitudes and behaviours.

All awareness-raising activities have been well received and membership of our Inclusion & Diversity taskforce continues to grow. Our inclusion and diversity groups – with a focus on gender, disability,

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neurodiversity, LGBTQ+ issues, and race, respectively – ran throughout the year, with good levels of membership and participation from across the organisation. Outputs from the groups include changes to recruitment procedures and an increasing awareness and understanding of colleagues’ lived experiences.

This year, we were awarded Disability Confident Employer status (level two in the three-part scheme) and are actively working towards reaching Disability Confident Leader status (level 3).

Our UK gender pay gap for this reporting period is a mean of 12.6%, or a median of 7.2%, compared to the education sector averages of 16.1% and 22.2%, respectively (ONS 2022). Although we have seen the gap grow slightly in our schools (reflecting the higher level of female staff in our support roles), our data from the past five years shows an overall trend towards closing our gender pay gap. Across our major delivery areas in the UK – in Employability, Careers Guidance and Education Programme Delivery – we have seen a significant decrease in the gender pay gap.

How we do business: Staff morale and wellbeing

The wellbeing of our colleagues remains a key focus area for us. We utilise the PERMA (Positive emotions, Engagement, Relationships, Meaning, Accomplishment) model of wellbeing, which takes a proactive, holistic approach to maintaining positive wellbeing. For example, this year we have achieved Flexa accreditation as a flexible employer, hosted external subject matter expert-led seminars on financial wellbeing and menopause awareness, and provided access to more than 80 wellbeing-focused resources (videos, eLearning, articles, podcasts etc.) via our internal learning platform.

We also provide access to a number of Employee Assistance Programmes to all colleagues globally, and continue to provide membership of the leading wellbeing app Headspace to all colleagues. Mental health first aiders are regularly trained and are located globally so that employees can access mental health support and signposting to other professionals as relevant to their individual needs. We have partnered with Gallup to benchmark our employee engagement and develop action plans at team and organisational level to ensure that we are responding to feedback and creating a working environment in which all colleagues can thrive and achieve their full potential.

2.4 SAFEGUARDING

Safeguarding underpins all that we do at EDT, ensuring that everyone who comes into contact with us feels safe and respected. This year, our safeguarding work has had an impact on several areas in particular.

Firstly, the International Schools Quality Marker (ISQM) framework safeguarding requirements were strengthened to assist participating international schools in their commitments to improving safeguarding arrangements. This includes the safer recruitment of staff, responses to mental health and wellbeing concerns of pupils and the training of school staff in responding to child protection concerns.

Meanwhile, our TARGET programme in Ethiopia assisted local delivery partners working in schools to develop and implement safeguarding and child protection policies, which on one occasion, enabled a young female pupil to disclose that she was to be married to an older man and removed from

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school. The pupil felt safe in sharing this with the school, which worked with relevant agencies to ensure that she was able to remain unmarried with her family and continue with her education.

Throughout the year, the continuous safeguarding training and enablement provision for EDT staff ensures that we are confident and competent in responding to concerns and disclosures raised with us by pupils and programme participants in a prompt and effective manner.

2.5 STAKEHOLDER ENGAGEMENT

Trustees as directors of the company have a duty to promote the success of the Charity and, in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to various specific factors including:

Day-to-day management and decision-making is delegated to the Chief Executive and Executive Team who are required to act to further EDT’s strategy and to ensure that activities are carried out in compliance with plans and policies approved by the trustees. The trustees receive updates on EDT’s performance and plans at each board meeting. Policies are reviewed periodically by the board or on its behalf by board committees. By ensuring that management act in accordance with the strategy and in compliance with specific policies, the board and its committees obtain assurance that in promoting the success of the charity, due regard is given to the factors set out in Section 172.

We have outlined the key decisions taken by the Board of Trustees in the year that demonstrate how we understand and engage with stakeholders and consider the external impact of our activities:

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2.6 FINANCIAL OVERVIEW

EDT is an international organisation with 1,271 staff worldwide, income of £91.2m, net assets of £32.2m and group free reserves of £21.4m.

Our income is generated by winning education-related contracts from governments and public or private bodies. Our business model is built on the principle of full cost recovery: any activity must recover all its attributable cost. This enables us to be financially sustainable and generate sufficient funds to invest in our sustainability through research and development, innovation and business development, brand building, enabling infrastructure – and in particular our public research.

The year-on-year increase in income of £2.1m was primarily due to new contracts from the UK Government in the UK. We were £1.8m below our target for income from charitable activities and £0.3m below our financial model target for net contribution from charitable activities. However, we delivered a year-on-year increase in Charity and Group reserves.

The Group results for the period show net income before investment, pension and exchange gains and losses of £0.8m (2021/22: £3.3m). Total income is £91.2m, an increase of £2.1m from 2021/22. After gains on investments of £7,000 (2021/22: losses of £0.5m), actuarial losses on defined benefit pension schemes of £5.4m (2021/22: gains of £4.7m) and exchange losses on conversion of subsidiaries of £0.7m (2021/22: gains of £1.1m), and after eliminating the net surplus attributable to minority interests of £0.1m (2021/22: £0.6m) the net decrease in funds for the year is £5.4m (2021/22: net increase of £8.0m).

The actuarial losses on defined benefit pension schemes are due to the derecognition of net pension assets for all defined benefit schemes on the basis that recoverability of the assets in the future is too remote.

The total assets less current liabilities of the Group amount to £32.8m (2021/22: £33.4m). The net assets of the Group are £32.2m (2021/22 £37.9m). For the Charity, net assets of £23.7m are reported (2021/22: £29.1m). After accounting for actuarial losses, the defined benefit pension scheme accounting balance is £Nil (2021/22: an asset of £5.2m).

The Charity and its subsidiaries do not rely on the contribution of unpaid general volunteers and are not dependent on donations in kind or any other intangible income not evaluated or explained in the accounts.

2.7 RESERVES POLICY

Free reserves are defined as unrestricted financial investments plus working capital. They exclude restricted and designated funds, tangible fixed assets and defined benefit pension assets/liabilities; and include minority interests (for the Group). It is the policy of the Board to hold adequate reserves for the following purposes:

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As a charity whose expenditure is driven by contractual delivery requirements, the level of reserves we are able to hold is dependent on our ability to generate a net surplus from our trading activities. In the long run we regulate the level of reserves and remain sustainable by optimising those surpluses and investing amounts not planned to cover minimum working capital and risk requirements in strategic development and / or charitable activities.

The Board of Trustees reviews the reserves policy each year to ensure it remains fit for purpose. The Board reviews actual and planned reserves levels at least twice a year, as part of long-term financial planning, to ensure the level of funds in reserves will remain adequate. The level of reserves required for each purpose fluctuates dynamically in line with changes in composition and performance of our portfolio of contracts and changes to the nature and assessment of the risks we face. Accordingly, our monitoring approach is designed to ensure that throughout our planning horizon reserves will remain adequate and that we have plans to deploy reserves appropriately.

We set a budget and a 3-year plan annually, with the last 3-year plan set to August 2026. The Board of Trustees and the Executive actively monitor financial results against the budget on a monthly basis. Regular forecasts with associated risks and opportunities are produced for the current financial year, to identify actions to optimise financial performance by mitigating risks and realising opportunities.

We monitor solvency by projecting income, net income, free reserves and cash to August 2025. We have reviewed this analysis on a regular basis up to the date of signing the report. We use a range of scenarios to stress test cash and reserves. This testing shows that we have adequate headroom for cash and a strong balance sheet. On this basis, while an amount of uncertainty about the volume and timing of new business exists, this does not pose a material uncertainty that would cast doubt on the Charity’s ability to continue as a going concern.

On 31 August 2023 free reserves were £13.9m for the Charity (2021/22: £13.3m) and £21.4m for the Group (2021/22: £21.1m). These amounts compare with budget figures set at the beginning of the financial year of £12.8m and £19.5m respectively. They were in line with our dynamic financial planning, and so were at a level that is adequate to meet continuously evolving requirements, including a £5m investment in technology planned for 2022/23 to 2024/25. The increase in Charity reserves during the year was driven by proceeds from the sale of shares in Waverley School (Waverley Way) Limited and dividends from subsidiaries.

2.8 INVESTMENT POLICY AND RETURNS

Our investment policy is to align with our reserves policy by balancing the portfolio between capital maintenance with low- to medium-risk returns over the medium term. We manage investment risk by pooling financial investments in two tiers. Tier 1 aims to represent the general funds minimum reserves requirement and is held in cash and cash equivalents. Tier 2 aims to represent the balance of financial resources in general and restricted funds and is held in balanced investment funds.

The Board of Trustees has wide investment powers and has delegated responsibility for the management of the portfolio, within the agreed risk profile, to selected investment managers. Our policy has an ethical component under which, while having regard to the requirements of charity law to maximise returns, we seek to avoid investing in activities contradictory to our objectives. Trustees periodically review implementation of the policy in consultation with the investment 15 Company Number: 867944

managers. The financial performance component of return on investment is measured against benchmark weighted indices. Historic performance against benchmarks is shown in the following table.

table.
Investment manager 1 Year 3 Years 5 Years
Actual Benchmark Actual Benchmark Actual Benchmark
Newton (to 31/08/23) 3.3% 2.7% 7.5% 5.8% 6.3% 4.4%
HSBC (to 31/08/23) 1.6% 0.6% 4.2% 3.9% 2.6% 3.1%

2.9 ENERGY AND CARBON REPORTING

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 require us to disclose our annual UK energy use, greenhouse gas (GHG) emissions, energy efficiency measures undertaken and an energy efficiency ratio.

Energy Use and Carbon Emissions Disclosure

Primary Statement for 2022/23

2022/23 Energy
Consumption
(KWh)		 2022/23
Emissions
(tCO2e)		 2021/22
Emissions
(tCO2e)		 % Change
Electricity 413,729 85.67 86.64 -1%
Gas 453,060 82.88 128.76 -36%
Transport Fuels 198,665 45.42 52.00 -13%
Gross Annual Total 1,065,454 213.97 267.40 20%
IntensityMetric(Headcount) 780 725 8%
Total tCO2e/head 0.27 0.37 -26%
QualifyingGreen Tariffs 408,908 84.67 85.09 0%
Net Annual Total 656,546 129.30 182.31 -29%
These emissions translate to Scope 1,2 and 3 emissions as follows:
GHG Emissions 2022/23 Energy
Consumption
(KWh)		 2022/23
Emissions
(tCO2e)		 2021/22
Emissions
(tCO2e)		 % Change
Scope 1* 466,461 86.08 132.96 -35%
Scope 2(location based) 413,729 85.67 86.64 -1%
Scope 2(market based) 4,821 1.00 1.55 -36%
Scope 3 185,264 42.24 47.80 -12%
Total(location based) 1,065,454 213.99 267.40 -20%
Total(market based) 656,546 129.30 182.31 -29%

This is the fourth year of GHG reporting and is aligned with the 2022/23 financial year. The first year’s report in 2019/20 forms the baseline year. The baseline year was formed during the Covid-19 pandemic and as such comparisons to this and future years may be skewed. We may re-baseline once operations are less volatile.

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We have not developed any carbon targets for the current reporting period. However, a carbon reduction plan to achieve carbon net-zero by 2040 has been developed. The intensity metric chosen is employee numbers (taken as a monthly average). This was chosen as the most suitable metric as the organisation has both schools and offices within the UK and relates well to any changes in the energy consumption and associated carbon emissions.

We have no qualifying carbon offsets during this financial period. Within the UK, all directly sourced electricity that the organisation procures is from REGO-backed or 100% Carbon offset (Kyoto Protocol). We have also taken account of any landlord procured electricity from renewable sources. This has reduced gross emissions from the consumption of purchased electricity via a qualifying green electricity tariff by over 98%, equating to a carbon saving of 84.67 tonnes of CO2e for this financial year.

Energy Efficiency Narrative

During the course of the reporting year we have undertaken the following activity which has or will have a direct Impact on the energy efficiency of the organisation.

Our Research and Consultancy team have continued to research the impact of climate change on education, and the potential role education can play in increasing adaption, resilience and mitigation. This research has been extended from Kenya, where the impact of climate change is more significantly felt than Rwanda.

Preparation for Energy Savings Opportunities Scheme (ESOS) Phase 3 is underway and building energy audits have been during this reporting period. The surveys and associated reports completed as part of Phase 3 ESOS should provide a route map for which energy conservation measures can be implemented cost effectively. To reduce energy consumption, cost and carbon emissions, we will continue our existing good practices and implement further energy conservation measures in the next 12-month period, in line with our Carbon Reduction Plan.

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2.10 FUNDRAISING

Section 162a of the Charities Act 2011 requires us to make a statement on fundraising activities. We do not undertake fundraising activities. Therefore:

2.11 PRINCIPAL RISKS

The top corporate risks facing the Group, and associated measures for managing those, are:

Risk identified Further managing actions
Challenges arising from structural
inefficiency of UK Directorate		 » Integration of UK Directorate with streamlined
leadership and a single business improvement
function
Necessity of positive Ofsted outcomes on all
programmes		 » Continuous improvement process embedded in
Ofsted-inspectedprogrammes
Over-reliance on UK government for funding » Market analysis of diversified client opportunities
» Go to market opportunities identified; exploring
scalabilityand marketpotential
Impact of the challenging economic context
in the UK on staff		 » Monitor staff wellbeing and opportunities for
efficiencysavings
Potential change of UK government in 2024 » Deeper engagement with all parties
» Programme of CEO led events to cultivate key
stakeholder relationships
Potential for introduction of VAT on UK
independent schools		 » Market analysis of price sensitivity of fees
Major safeguarding incident » Continuous focus on safeguarding monitoring
and enhancement
IT security breach » Continued implementation of the IT Security and
Disaster RecoveryAction Plans

2.12 FINANCIAL RISKS

The following sets out the risk management principles applied to certain types of financial risks.

Liquidity

The Group retains sufficient cash funds to meet the day-to-day needs of the organisation and invests its remaining reserves in longer-term investments to maximise returns. The Group’s financing objective is to locate funds that are surplus to operational requirements in the Charity (the parent entity). Subsidiaries provide regular financing plans and proposals for repatriation of surplus funds for approval by the Charity.

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Financial market

The Group’s exposure to market risk arises primarily from the Group’s fixed asset investments: an investment portfolio of stocks and shares managed by two asset management companies and investment properties. The Group’s policy for the investment portfolio is to ensure the investment portfolio is spread between equities and bonds, both in the UK and overseas, and is invested ethically. There are no investments in unquoted stocks, derivatives or unregulated collective investment schemes. The investment managers are also limited on how much they can invest in any one foreign currency or country.

Credit

The Group is mainly exposed to credit risk from credit sales. A significant amount of income is derived from major institutional, government and donor funding agencies and so the associated credit risk is modest. However, where it works for private sector clients it assesses the credit risk of new customers and factors the information from these credit ratings into future dealings with the customers. At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.

Foreign exchange

Due to the international nature of its activities, the Group’s reported reserves, net assets and gearing are all affected by foreign exchange movements. By default, currency exposures are minimised by denominating transactions in GBP and / or denominating cash in- and out-flows in the same currency. Net exposures are identified, and appropriate management approaches are put in place on a case-by-case basis. The Group does not currently have any currency derivative instruments in place.

Procurement

Third-party expenditure is governed by a procurement policy and purchases of goods and services of more than a defined amount are subject to a tender process and contracts are put in place.

2.13 OPERATIONAL PLAN 2023/24

As we enter the final year of our 3-year strategic period (2021-24), our ambition is to be worldleading in the design and delivery of high-impact, large-scale educational change programmes, transforming even more lives through the power of education and careers advice and guidance – delivering more and delivering better.

In 2023/24, the final year of our strategy, we aim to:

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Balanced scorecard 2023/24

NEW BUSINESS
Critical success factor KPI Target
1.1 We achieve our new business targets
(currentyear)		 New business income contributing to
2023/24		 £24.3m
1.2 We achieve our new business targets
(nextyear)		 New business income contributing to
2024/25		 £32.4m
1.3 We achieve our client diversification
targets		 Value of contracts won considered
client diversification		 £7.7m
COMMERCIAL
Critical success factor KPI Target
2.1 We achieve our income targets 2023/24 income from charitable
activities		 £86.4m
2.2 We achieve our financial model targets 2023/24 net contribution from
charitable activities		 2.0%
2.3 We achieve our financial reserves targets End of year UK free reserves cover
(projected minus min. reserves)		 £4.7m
DELIVERY
Critical success factor KPI Target
3.1 We achieve our reach targets 2021-24 Corporate Strategy targets 100%
3.2 Delivery is good or better according to
client/independent evaluation		 External evaluation reports grade
deliveryasgood or better		 100%
3.3 We achieve our impact targets Impact metrics for major contracts
meet or exceed targets		 100%
PEOPLE
Critical success factor KPI Target
4.1 Colleagues are motivated and productive Employee engagement score 4.1
4.2 We have a safe working environment that
supports the wellbeingof colleagues		 Sick days absence 2.60%
4.3 Improving our employer brand Number of followers on LinkedIn 134,200
4.4 We have a diverse and inclusive working
environment		 Score on question: ‘I am treated with
fairness and respect’		 4.3
STAKEHOLDERS
Critical success factor KPI Target
5.1 Our key stakeholders have a good
knowledge of who we are and what we do		 Average stakeholder familiarity 4.0
5.2 Our clients and partners believe we are
effective in deliveringfor them		 Perception of organisational
effectiveness		 4.2
5.3 Our brand communications are engaging
andpersuasive		 Web visits per month /
Perception as thought leaders		 30,000
8.0

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3 STRUCTURE, GOVERNANCE AND MANAGEMENT

3.1 STRUCTURE

Education Development Trust is a charity registered in England and Wales and a company limited by guarantee. It has international and UK trading subsidiaries. We deliver education programmes to governments and donor agencies, provide education reform consultancy services, run a small group of independent (private) schools and invest in a programme of education research.

In Brunei, CfBT Education Services (B) Sdn Bhd, a majority-owned subsidiary, is engaged in the supply of education system reform services and English language teachers to the Sultanate’s public school system. The principal activities of the EDT Middle East Educational Consultancy LLC, registered in Abu Dhabi, are to provide educational consultancy and support for schools. The principal objective of Education Development Zimbabwe (Private) Ltd, registered in Harare, is to advance education for the public benefit throughout Zimbabwe. The principal activity of the International School of Cape Town (Pty) Ltd, registered in South Africa is to run an independent school in Cape Town. The principal activity of Waverley School (Waverley Way) Ltd, registered in the UK, is the ownership of a property used as a school.

During the year, we closed a subsidiary in Malaysia. We aim to complete the sale of Waverley School (Waverley Way) Limited in February 2024.

3.2 GOVERNANCE

Education Development Trust was incorporated on 31 December 1965 and received charitable status on 20 February 1976. The Charity is governed by its Articles of Association, last amended in September 2021.

Board structure

The Board of Trustees meets at least 6 times per year to determine strategy and policies and review performance. It is responsible for the approval of budgets, financial statements and new investments, delegating specific responsibilities to its committees. Details of the trustees who served throughout the year (except as noted) are set out in Section 4.

There are four permanent committees of the Board of Trustees which report to the Board on their meetings and activities.

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Each of these committees is comprised of trustees and is attended by executive directors and senior members of staff, as required.

There are two membership committees. The members of these committees, the majority of which must be members who are not also trustees, are appointed by the President:

Current trustee membership of Board committees is indicated against each trustee’s name, as listed in Section 4.

Appointment and role of trustees

Applications for new trustees are sought by public advertisement including the internet, through external advisers and through personal contact. The Nominations Committee interviews all potential trustees and successful applicants are put forward for election by the membership of the charitable company. Trustees serve up to two terms of four years. All new trustees are supported through an induction process, which includes meetings with the Chief Executive, Corporate Governance team and operational Directors, as well as written induction materials and relevant training. Trustees are subject to a performance management process where individual training needs are identified, and the Board carries out a self-evaluation periodically and in line with best practice. Trustees are also encouraged to engage with our operational activities through visits to programmes or knowledgesharing events.

Trustee indemnity insurance

Trustee indemnity insurance provides insurance cover for charity trustees against claims which may arise from their legitimate actions as trustees. As a matter of law, charities require authority to purchase this type of insurance. In the case of EDT, that authority is obtained from our Articles of Association.

Charity Governance Code

The Charity continues to review and apply the principles of the Charity Governance Code. The threeyear Board Development Plan for the period 2022-24 has been further refined by the outcomes of a Board self-evaluation undertaken in 2023 which was structured around the key principles of the Code. Key areas of focus have been as follows:

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UN Global Compact

We summitted our latest Communication on Engagement in August 2023. We were able to demonstrate our commitment to the ten principles of the UN Global through our work, examples of which are detailed in our Impact Report. We ensure that the UN Global Compact and Sustainable Development Goals form part of our strategy, culture and day-to-day operations. Our Letter of Commitment and Communication on Engagement are both available on unglobalcompact.org.

3.3 RESPONSIBILITIES OF THE BOARD OF TRUSTEES

The Board of Trustees is responsible for preparing the Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Board of Trustees is also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In considering its responsibilities, the Board has had regard to the Charity Governance Code.

Charity and company law requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the surplus or deficit of the Charity for that year. As noted above, in preparing those financial statements, the Board of Trustees is required to:

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The Board of Trustees has overall responsibility for keeping proper accounting records that show and explain the Charity’s transactions, disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Companies Act 2006.

Financial statements are published on the Charity’s website in accordance with legislation in the UK governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

The Board of Trustees is also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

All of the current trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Charity’s auditors for the purposes of their audit and to establish that the auditors are aware of that information. The trustees are not aware of any relevant audit information of which the auditors are unaware.

3.4 MANAGEMENT

During the period, the activity of the Charity was organised in four operational areas:

3.5 STAFF

During the period under review, we employed an average of approximately 1,271 staff worldwide, and experienced considerable organisational change as we managed transition within our portfolio of contracts. Considerable attention was given to support staff in the face of significant cost-of-living increases, pay awards took into consideration high rates of inflation, with additional targeted oneoff payments made and signposting to advice given where required.

We are a Disability Confident employer which reinforces our full commitment to undertaking activities that make a real difference to people with disabilities. This includes giving full and fair consideration to applications for employment made by people with disabilities in line with our inclusion and diversity strategy, having regard to their aptitudes and abilities; continuing the employment of, and arranging training for employees who have become disabled while employed; and focusing on the training, career development and promotion of people with disabilities.

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We take a proactive position on employee engagement; this year we have worked in partnership with Gallup to benchmark our employee engagement and develop action plans at team and organisational level to ensure that we are responding to feedback and creating a working environment in which all colleagues can thrive and achieve their full potential. In response to feedback, we have strengthened our continual performance management process and increased staff development opportunities with the launch of a new learning management system.

3.6 RISK MANAGEMENT AND INTERNAL CONTROL

Our Board of Trustees has responsibility for ensuring the appropriate financial and non-financial controls are in place to provide reasonable, but not absolute, assurance against inappropriate use of resources and against the risk of errors or fraud. It also supports the achievement of the organisation’s policies, aims and objectives.

Risk management

The Audit and Finance Committee oversees our risk management framework on behalf of the trustees. Due to the complexity of the organisation, the Board considers risk tolerance in relation to specific areas of sensitivity, rather than setting a generic risk tolerance framework. In our risk management policy, we have set risk tolerance levels for safeguarding risk (very low) compliance risk (low), security risk (medium), and commercial risk (medium).

We operate a formal risk management process which is incorporated within our system of internal control. This is integrated into the organisation, with clear risk ownership at every level to enable management of the risk profile. Operating at all levels of the organisation from individual programmes up to Group level, exposure to risk is regularly reviewed and escalated. Exposures are assessed before and after existing controls, and where these are regarded as inadequate further measures are devised and implemented.

Risks are escalated to the appropriate organisational level based on their scope and significance. Risk management is considered at business review meetings. Reports are made to the Audit and Finance Committee which reviews and provides further challenge. The Board receives reports on strategic risks four times per year.

Internal control

The Audit and Finance Committee provides independent oversight of the effectiveness of the systems of internal control and is responsible for reviewing and approving the annual internal audit programme, reviewing the key findings of the internal audit reports as well as monitoring the implementation of accepted recommendations. The committee also meets at least twice a year with the external auditors, both with and without management, to discuss the annual statutory audit and any internal control weaknesses identified in the management letter.

The key components of our internal control and risk management environment include:

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In particular, we are committed to safeguarding and have zero tolerance for any form of harm, abuse, neglect or exploitation of beneficiaries, staff and all who come into contact with EDT. This accountability rests with the trustees, who have delegated operational responsibility through the Executive and the Corporate Safeguarding Committee.

The Trustees’ Annual Report and Strategic Report was approved by the Board of Trustees on 1 February 2024 and signed on its behalf by:

Ilse Howling Chair 1 February 2024

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4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS

4.1 CHARITY DETAILS

Name Education Development Trust Registered Charity Charity Number 270901 Private Company Limited by Guarantee Company Number 867944 Country of incorporation England and Wales Registered & Principal Office Highbridge House, 16–18 Duke Street, Reading RG1 4RU Website www.edt.org Email enquiries@edt.org Telephone 0118 902 1000

4.2 TRUSTEES

The following trustees served throughout the period to which this report relates unless otherwise indicated. Current membership of Board sub-committees is also indicated.

4.3 MEMBERS

Currently Education Development Trust has 35 members. The members take an active role in our work and share their educational experience and expertise for the benefit of EDT. The membership appoints the trustees and is responsible for reviewing the work of EDT, principally at the Annual General Meeting.

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4.4 PRESIDENT AND VICE PRESIDENT

Sir Jim Rose acted as EDT’s President until he sadly passed away on 9 February 2023. Sara Hodson acted as Vice President throughout the period. She was appointed on 30 April 2015 and re-appointed on 21 May 2020 for a second term of five years.

4.5 EXECUTIVE

The Executive is responsible for the operational management of the organisation and, through the Chief Executive, reports to the Board of Trustees or its committees. Current membership of the Executive is below, with dates indicating members joining within the year or since the year end:

The following were members of the Executive during the year with dates indicating members leaving during the year:

4.6 BANKERS AND PROFESSIONAL ADVISERS

Bankers

Lloyds Bank Plc Auditor Crowe U.K. LLP 24 Broad Street 4[th] Floor, St James House Reading RG1 2BT St James' Square Cheltenham GL50 3PR

HSBC Private Bank (UK) Limited 8 Cork Street London W1S 3LJ

Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF

Legal Advisers Eversheds Sutherland (International) One Wood Street London EC2V 7WS

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5 INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF EDUCATION DEVELOPMENT TRUST

Opinion

We have audited the financial statements of Education Development Trust (the “charitable company”) and its subsidiaries (the “group”) for the year ended 31 August 2023 which comprise Consolidated and Charity Statement of Financial Activities, Consolidated and Charity Balance Sheets and Consolidated Cash Flow Statement and notes to the financial statements, including 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:

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 group 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 financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial

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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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within 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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend

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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.

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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were Anti-fraud, bribery and corruption legislation, taxation legislation. We also considered compliance with local legislation for the group’s overseas operating segments.

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Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of grant and contract income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Finance Committee about their own identification and assessment of the risks of irregularities, performing sample testing on grant and contract income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Tara Westcott Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor Cheltenham

Date: 07 February 2024

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6 CONSOLIDATED FINANCIAL STATEMENTS AND NOTES CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 August 2023

For the year ended 31 August 2023
Year to Year to
31 August 2023 31 August 2022
Unrestricted Restricted
Funds
Funds		 Total Total
Notes £’000
£’000		 £’000 £’000
INCOME
Income from investments 1d
Dividends receivable 94
140
234		 207
Rental income 407
-
407		 410
Interest income 213
-
213		 50
Income from charitable activities 1d
UK 27,586
9,301
36,887		 32,850
Africa, Middle East and Asia 39,052
-
39,052		 40,477
Research and Consultancy 3,894
112
4,006		 4,923
Independent Schools 10,378 -
10,378		 10,153
Total income 2a 81,624
9,553
91,177		 89,070
EXPENDITURE
Expenditure on raising funds
Investment managers’ fees 1e 20
31
51		 44
Other costs 408
-
408		 409
Expenditure on charitable activities 1e
UK 25,905
9,301
35,206		 30,024
Africa, Middle East and Asia 40,120
-
40,120		 41,100
Research and Consultancy 4,127
370
4,497		 4,438
Independent Schools 10,111
-		 10,111 9,782
Total expenditure 5 80,691
9,702
90,393		 85,797
Total income less total expenditure 933
(149)
784		 3,273
Net gain/ (loss) on investments 8 4
3		 7 (458)
Net income / (expenditure) 2b 937
(146)
791		 2,815
Other recognised gains and losses
Actuarial (loss) / gain on defined benefit pension schemes14 (5,445)
-
(5,445)		 4,650
Exchange (loss) / gainonconversionofsubsidiaries (650) -
(650)		 1,064
Total recognised(losses) /gains for currentperiod (6,095) -
(6,095)		 5,714
Net movement in funds before minority interest (5,158)
(146)
(5,304)		 8,529
Less: Minorityinterest (54) -
(54)		 (554)
Net movement in funds after minority interest (5,212) (146) (5,358) 7,975
Balance brought forward at 1 September 28,926
5,769
34,695		 26,720
Balance carried forward at 31 August 23,714
5,623
29,337		 34,695

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure is derived from continuing activities.

The notes on pages 37 to 59 form an integral part of these financial statements.

Company Number: 867944

33

STATEMENT OF FINANCIAL ACTIVITIES – CHARITY ONLY For the year ended 31 August 2023

For the year ended 31 August 2023
Year to Year to
31 August 2023 31 August 2022
Unrestricted Restricted
Funds
Funds		 Total Total
Notes £’000
£’000		 £’000 £’000
INCOME
Income from investments 1d
Dividends receivable 586
140
726		 510
Rental income 398
-
398		 403
Interest income 116
-
116		 16
Income from charitable activities 1d
UK 27,586
9,301
36,887		 32,851
Africa, Middle East and Asia 18,832
-
18,832		 23,763
Research and Consultancy 3,894
112
4,006		 4,924
Independent Schools 8,089
-
8,089		 7,895
Total income 59,501
9,553
69,054		 70,362
EXPENDITURE
Expenditure on raising funds
Investment managers’ fees 1e 20
31
51		 44
Other costs 408
-
408		 409
Expenditure on charitable activities 1e
UK 27,327
9,301
36,628		 30,825
Africa, Middle East and Asia 19,013
-
19,013		 23,777
Research and Consultancy 4,281
370
4,651		 4,559
Independent Schools 7,970 -
7,970		 7,709
Total expenditure 59,019
9,702
68,721		 67,323
Total income less total expenditure 482
(149)
333		 3,039
Net gain/ (loss) on investments 8 4
3		 7 (458)
Net income /(expenditure) 486
(146)		 340 2,581
Other recognised gains and losses
Actuarial(loss) / gaindefined benefit pensionschemes 14 (5,445) -
(5,445)		 4,650
Total recognised(losses) /gains (5,445) -
(5,445)		 4,650
Net movement in funds (4,959) (146) (5,105) 7,231
Balance brought forward at 1 September 23,304
5,769
29,073		 21,842
Balance carried forward at 31 August 18,345
5,623
23,968		 29,073

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure is derived from continuing activities.

The notes on pages 37 to 59 form an integral part of these financial statements.

Company Number: 867944

34

BALANCE SHEETS
As at 31 August 2023 -----------GROUP------------- -----------CHARITY-----------
As at As at As at As at
31/08/23 31/08/22 31/08/23 31/08/22
Notes
£’000		 £’000 £’000 £’000
FIXED ASSETS
Tangible assets 1f, 7 5,242 5,883 4,216 4,606
Investments 1h, 8 9,444 9,476 9,444 9,476
Investments in Group undertakings 9 - - 203 203
Total fixed assets 14,686 15,359 13,863 14,285
CURRENT ASSETS
Debtors: Amounts falling due within one year 10 18,226 17,081 14,833 13,575
Cash at bank and in hand 21,961 21,666 14,583 13,662
40,187 38,747 29,416 27,237
CURRENT LIABILITIES
Creditors: Amountsfalling duewithinone year 11 (22,058) (20,742) (18,735) (17,038)
Net current assets 18,129 18,005 10,681 10,199
Total assets less current liabilities 32,815 33,364 24,544 24,484
Provision for liabilities and charges 13 (596) (614) (576) (593)
Defined benefit pension schemes 14
-		 5,182 - 5,182
NET ASSETS 32,219 37,932 23,968 29,073
CHARITABLE FUNDS
Unrestricted funds (excluding defined benefit pensions) 23,714 23,744 18,345 18,122
Restrictedfunds 12 5,623 5,769 5,623 5,769
SUB TOTAL FUNDS (excluding pension liabilities) 29,337 29,513 23,968 23,891
Defined benefit pensionasset 14
-		 5,182 - 5,182
TOTAL FUNDS(excluding minority interest) 29,337 34,695 23,968 29,073
Minority interests 2,882 3,237 - -
TOTAL FUNDS 32,219 37,932 23,968 29,073

The notes on pages 37 to 59 form an integral part of these financial statements.

The financial statements were approved by the Board and signed on its behalf by:

Ilse Howling Chair Dated: 1 February 2024

Company Number: 867944

35

CONSOLIDATED CASH FLOW STATEMENT For the year ended 31 August 2023

CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 August 2023
Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Cash flows from operating activities
Net income for the year 791 2,815
Adjustments for:
Depreciation on tangible fixed assets 1,097 1,149
Loss on sale of tangible fixed assets 5 188
Sale of shares in subsidiary (585) (585)
Increase in debtors (1,145) (2,028)
Increase / (decrease) in creditors 1,316 (5,288)
Decrease in provisions (18) (466)
Less dividends receivable (234) (207)
Less interest receivable (213) (50)
Post-retirement benefits adjustment (263) 179
Dividends paid to minority interest (409) (243)
(Gain) / loss on investments (7) 458
Exchange loss / (gain) on fixed assets 250 (22)
Exchange loss / (gain) on conversion of cash 23 (1)
Exchange (loss) / gain on conversion of opening reserves of foreign subsidiaries (650) 1,064
Net cash used in from operating activities (42) (3,037)
Cash flows from investing activities
Interest received 213 50
Dividends received from investments 234 207
Sale of shares in subsidiary 585 585
Purchase of tangible fixed assets (711) (718)
Sale of tangible fixed assets - -
Purchase of fixed asset investments (2,403) (3,912)
Sale of fixed asset investments 2,299 4,089
Net cashgenerated from investing activities 217 301
Net increase /(decrease) in cash and cash equivalents in theyear 175 (2,736)
Cash and cash equivalents at the beginning of the year 21,843 24,578
Change in cash and cash equivalents due to exchange rate movements (23) 1
Total cash and cash equivalents at the end of theyear 21,995 21,843
Cash and cash equivalents:
Cash at bank and in hand 21,961 21,666
Cash at investments managers – money market deposits 34 177
Total cash and cash equivalents 21,995 21,843

The notes on pages 37 to 59 form an integral part of these financial statements.

Company Number: 867944

36

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES

a. Basis of accounting and consolidation

Education Development Trust is a charitable company limited by guarantee, incorporated in England and Wales (Charity Number 270901 / Company Number 867944). The address of its registered office is Highbridge House, 1618 Duke Street, Reading, RG1 4RU. The financial statements have been prepared under the historical cost convention, except for investments which are included at market value. The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The accounts of the Charity have been prepared on a going concern basis.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires the Group’s management to exercise judgement in applying the Group’s accounting policies (see note 1c).

In preparing the separate financial statements of the Charity, advantage has been taken of the following disclosure exemptions available in FRS 102:

All branches are consolidated fully within the Charity. The results and balance sheet of Education Development Trust and its subsidiaries have been consolidated on a line-by-line basis.

The Consolidated Statement of Financial Activities includes the financial activities of the Charity and its subsidiaries up to 31 August. The results of subsidiaries acquired or sold are included in the Consolidated Statement of Financial Activities from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation.

On acquisition of subsidiaries, all of the assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities and the resulting surpluses or deficits that arise after the Group has gained control of the subsidiary are charged to the post-acquisition Statement of Financial Activities.

The Charity meets the definition of a public benefit entity under FRS 102.

A summary of the accounting policies, which have been applied consistently, is set out below.

b. Going Concern

We set a budget and a 3-year plan annually, with the last 3-year plan set to August 2026. The Board of Trustees and the Executive actively monitor financial results against the budget on a monthly basis. Regular forecasts with associated risks and opportunities are produced for the current financial year, to identify actions to optimise financial performance by mitigating risks and realising opportunities.

We monitor solvency by projecting income, net income, free reserves and cash to August 2025. We have reviewed this analysis on a regular basis up to the date of signing the report. We use a range of scenarios to stress test cash and reserves. This testing shows that we have adequate headroom for cash and a strong balance sheet. On this basis, while an amount of uncertainty about the volume and timing of new business exists, this does not pose a material uncertainty that would cast doubt on the Charity’s ability to continue as a going concern. The Board of Trustees therefore considers it appropriate for the accounts to be prepared on a going concern basis.

Company Number: 867944

37

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES (continued)

c. Critical accounting judgements and estimations

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

pension schemes are incorporated in the financial statements in accordance with FRS 102. The actuarial valuation process involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. In applying FRS 102, advice is taken from independent qualified actuaries.

(ii) Recognition of pension scheme asset – in line with FRS102, the Charity only recognises a defined benefit asset to the extent it is considered recoverable through reduced contributions in the future, or through refunds from the scheme. The appropriate accounting treatment is determined for each scheme separately based on review and interpretation of the scheme rules.

membership of the Pension Trust’s Growth Plan (see note 14). FRS 102 requires a liability to be recognised in respect of the present value of future contributions payable under the terms of the deficit recovery plan. The incorporation of this liability in the financial statements involves the exercise of judgement in several areas, including the selection of an appropriate discount rate.

(iv) Bad debts – The estimate for receivables relates to the recoverability of the balances outstanding at the year end. A review is performed on an individual debtor basis to consider whether each debt is recoverable. (v) Tangible Fixed Assets – A review is performed annually for indicators of impairment.

d. Income

In the Statement of Financial Activities, income is split between income received from investments and income received from charitable activities.

Income from investments includes dividend income, rental income and interest income, and is included in the Statement of Financial Activities on a receivable basis.

Income from charitable activities represents amounts receivable for goods and services provided in the UK and overseas, net of taxes levied on sales.

Income from charitable activities has been split under the four key activities identified to meet the Charity's objectives: UK, Africa, Middle East and Asia, Research and Consultancy and Independent Schools.

Income is included in the Statement of Financial Activities when the Group has entitlement to the funds, the amount can be quantified, and receipt is probable. Specifically:

Company Number: 867944

38

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES (continued)

d. Income (continued)

Any associated expenditure is accounted for according to the accruals concept.

e. Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Expenditure on raising funds includes charges made by the investment managers, Newton Investment Management Limited and HSBC Global Asset Management (UK) Limited for the Group's portfolio management.

Expenditure on charitable activities has been split under the four key activities identified namely: UK, Africa, Middle East and Asia, Research and Consultancy and Independent Schools. Further detail of the work within each of these areas is detailed in the Strategic Report.

Expenditure incurred by subsidiaries is deemed to be direct operating expenditure.

Support, development and governance cost are either directly attributable to charitable activities or where they are not directly attributable they are allocated to activities on a proportion of income basis.

Development expenses, which include marketing expenses, both those of a promotional nature and those specific to negotiating and obtaining future projects, are written off in the period in which the expenses are incurred.

Redundancy, termination, and ex gratia payments are accounted for in full in the year that the departure is agreed.

Where input VAT is not recoverable on work undertaken by the Group it is treated as a cost of that project and reflected in the Statement of Financial Activities.

f. Tangible fixed assets

Tangible fixed assets are stated at cost, less depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life as follows:


traight-line basis over its expected useful life as follows:
Freehold land Not depreciated
Freehold and long-term leasehold buildings 30 years or lease term, whichever is shorter
Building improvements 30 years or lease term, whichever is shorter
Freehold and leasehold improvements 10 years, lease term or remaining contract period,
whichever is shorter
Office furniture and equipment 5 years
Motor vehicles 4 years
Enterprise Resource Planning (ERP) system 10 years
Other computer equipment, software and IT infrastructure 3-5 years

Assets under construction are not depreciated until they are brought into use.

For office furniture, equipment and computer equipment purchased second-hand, the depreciation rate is 2 years straight-line.

Company Number: 867944

39

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES (continued)

f. Tangible fixed assets (continued)

Where assets are held for a specific contract, those assets are written off over the shorter of the estimated life of the asset and the underlying contract.

Where assets are purchased by the Group but are to be handed back to the funder at the end of the contract, ownership is deemed not to have transferred from the funder and the cost is expensed immediately.

The Group policy is not to capitalise items costing under £1,000. VAT is excluded in the cost of the capital item unless it is irrecoverable, in which case it is treated as part of the cost of that asset.

g. Impairment of fixed assets

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

h. Investments

Investments in subsidiaries are measured at cost less accumulated impairment. Other fixed asset investments comprise investment portfolios. The valuations of the investment portfolios at balance sheet bid price were performed by the Group's investment managers, Newton Investment Management Limited and HSBC Global Asset Management (UK) Limited. Gains and losses are recognised in net income/expenditure in the Statement of Financial Activities. All investment income is derived from quoted investments and recorded in the books of the Charity when received.

i. Financial instruments

The Charity only has financial assets and liabilities of a kind which qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Company Number: 867944

40

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES (continued)

j. Pension scheme arrangements

The Charity and its subsidiaries operate defined contribution pension schemes whereby contributions are charged against revenue as they are made.

The Charity contributed to defined benefit pension schemes.

Pension assets and liabilities are recorded in line with FRS 102, with scheme valuations undertaken by independent actuaries. FRS 102 measures the value of pension assets and liabilities at the balance sheet date and determines the benefits accrued in the year and the interest on assets and liabilities.

Current service costs, together with the net interest cost for the year, are allocated to relevant expenditure headings within the Statement of Financial Activities.

Scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term to the scheme liabilities.

or change in the level of deficit attributable to members, is recognised in the Statement of Financial Activities within actuarial gains/losses on defined benefit pension schemes.

recognises assets for its defined benefit pension schemes to the extent that they are considered recoverable through reduced contributions in the future, or through refunds from the scheme.

k. Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement accrued at the balance sheet date.

l. Operating leases

Rentals paid under leases are charged against income on a straight-line basis over the lease term.

m. Foreign currency translation

(i) Functional and presentation currency

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (the ‘functional currency’). The consolidated financial statements are presented in Sterling, which is the Charity’s and the Group’s presentation currency.

Company Number: 867944

41

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

1. PRINCIPAL ACCOUNTING POLICIES (continued)

m. Foreign currency translation (continued)

(ii) Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entity are recognised at the spot rate at the dates of the transactions or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign exchange differences that arise are recognised within ‘Net income/expenditure’ in the Statement of Financial Activities.

(iii) Translation of group entities

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated from their functional currency to Sterling using the exchange rate ruling on the balance sheet date. Income and expenses are translated using an average rate for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising on translation of group companies are recognised within ‘Other recognised gains/losses’ in the Statement of Financial Activities.

n. Restricted funds

The Charity and Group reserves are allocated to two separate types or funds: restricted funds and unrestricted funds. Restricted funds are those relating to income which may only be used for specific purposes. All other funds, including designated funds, are unrestricted.

The Board of Trustees may approve the transfer of funds from unrestricted to restricted funds if operating losses would otherwise result in negative restricted funds being carried forward and it is not anticipated that future operating profits will cover those losses.

Company Number: 867944

42

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

2. SEGMENTAL ANALYSIS

SEGMENTAL ANALYSIS
Year to Year to
(a) Group income relating to operating activities 31 August 2023 31 August 2022
£’000 £’000
An analysis of Group turnover by geographical segment is given below:
United Kingdom 48,649 43,335
South Asia and South East Asia 16,493 15,471
Middle East 6,620 3,745
Africa 19,386 26,435
Europe and other 29 84
91,177 89,070

Within Africa, income of £1.3m (2021/22: £3.8m) relates to the FCDO Girls’ Education Challenge contract.

(b) Net income

3.




 £’000
£’000
An analysis of the net (deficit) / surplus by geographical segment is given below:
United Kingdom
(2,273)
(1,206)
South Asia and South East Asia
1,471
1,389
Middle East
143
95
Africa
1,460
2,471
Europe and other
(10)
66
791
2,815
STAFF AND TEACHER COSTS
Year to
Year to
31 August 2023
31 August 2022
£’000
£’000
Wages and salaries
41,856
37,878
Redundancy, termination or ex gratia payments
695
200
Social security costs
2,472
2,196
Pensions
1,786
1,818
Temporary staff
423
275
47,232
42,367

Redundancy, termination, and ex gratia payments were incurred as part of the ongoing evolution of the business and were accounted for in full in the year that the departure was agreed. The amount payable at 31 August 2023 was £130,279 (2022: £nil) and is included within Creditors.

Details of the amount payable to defined contribution pension schemes in respect of staff are shown in pensions note 14a.

Company Number: 867944

43

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

3. STAFF AND TEACHER COSTS (continued)

Year to Year to
31 August 2023 31 August 2022
Staff members whose total annual remuneration was in the ranges: No. of Staff No. of Staff
£60,000 – £69,999 26 25
£70,000 – £79,999 21 16
£80,000 – £89,999 11 7
£90,000 – £99,999 2 4
£100,000 – £109,999 3 3
£110,000 – £119,999 2 -
£120,000 – £129,999 3 3
£130,000 – £139,999 1 1
£140,000 – £149,999 - 2
£150,000 – £159,999 - 1
£170,000 – £179,999 1 -
£180,000 – £189,999 1 1
£200,000 – £209,999 - 1
£210,000 – £219,999 1 -
£230,000–£239,999 1 -
73 64

Total annual remuneration includes redundancy, termination and ex gratia payments.

For certain roles involved in major programmes in specific overseas territories, total remuneration includes accommodation, travel, medical and life insurance, schooling, taxes and other relevant allowances.

The Chief Executive had total annual remuneration in the £180,000 – £189,999 range (2021/22: £180,000£189,999 range).

Total employer pension contributions for the provision of money purchase schemes totalled £284,807 (2021/22: £234,204) for those staff whose total remuneration was more than £60,000.

Year to Year to
31 August 2023 31 August 2022
No. of Staff No. of Staff
The number of staff whose remuneration was more than £60,000 to whom
retirement benefits are accruing under:
- money purchase schemes 48 39
- defined benefit schemes 2 3
The average monthly number of persons employed by the Group during
the period was: 1,271 1,218

Key management personnel

The total employment benefits of the key management personnel was £1,541,671 (2021/22: £1,045,484) and total employer pension contributions for eight people was £105,225 (2021/22: £76,707 for four people). The Executive team was expanded from 5 to 9 members from 1 March 2022 and this is reflected within the key management personnel figure. Redundancy pay of £260,365 (2021/22: £0) was paid to key management personnel.

Company Number: 867944

44

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023


For
the year ended 31 August 2023
4. NET INCOME Year to Year to
is stated after charging / (crediting) 31 August 2023 31 August 2022
£’000 £’000
Auditors’ remuneration:
Group audit (Charity 2022/23: £58,500, 2021/22: £64,000) 64 67
Other - 4
Audits of international subsidiaries 27 20
Internal audit 36 67
Depreciation (note 7) 1,097 1,149
Remuneration of the Board of Trustees (note 6) 142 129
Exchange differences 72 174
Operating lease rentals: Property 1,151 1,205
Loss on sale of tangible fixed assets 5 188

5. ANALYSIS OF TOTAL EXPENDITURE – GROUP

Materials Other Project
Production Expenditure
Other
Support Staff and Training (including
Support		 Year to Year to
Direct Staff Costs Costs Delivery Premises depreciation) Expenditure 31 August 2023 31 August 2022
£’000 £’000 £’000 £’000 £’000
£’000		 £’000 £’000
Expenditure on charitable activities
UK 17,609 2,650 304 167 12,918
1,558		 35,206 30,024
Africa, Middle East and Asia 15,530 2,709 2,937 443 16,557
1,944		 40,120 41,100
Research and Consultancy 1,739 278 189 - 2,104
187		 4,497 4,438
Independent Schools 5,997 720 26 1,171 2,189 8 10,111 9,782
40,875 6,357 3,456 1,781 33,768
3,697		 89,934 85,344
Investment manager’s fees - - - - - 51 51 44
Other costs - - - - - 408 408 409
Total expenditure 40,875 6,357 3,456 1,781 33,768
4,156		 90,393 85,797

All direct expenditure is charged to the relevant charitable activity on an accruals basis.

Expenditure has been shown under the main categories and split between direct and indirect costs. Other project expenditure includes consultancy fees and other costs incurred in order to meet the Charity's contractual obligations. Other support expenditure includes central finance, human resources, information technology, marketing & communication and governance costs.

Support, governance and development expenditure which is not directly attributable to a charitable activity has been allocated based on the income of that activity as a proportion of the Group income. Governance costs are reported in note 4.

Company Number: 867944

45

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

6. TRANSACTIONS WITH TRUSTEES AND CONNECTED PARTIES

Year to Year to
31 August 2023 31 August 2022
(a) Trustees’ remuneration and transactions
Recipient Nature £ £
I Howling Remuneration 29,167 25,000
R Humphreys Remuneration 15,625 15,500
C Gilbert to 18 May 2023 Remuneration 11,083 15,500
A McFarlane Remuneration 15,625 15,500
J Hutcheon Remuneration 15,625 15,500
J Grant Remuneration 10,125 10,000
T Barron Remuneration 11,707 10,000
J Simons Remuneration 10,125 10,000
N Hemelge from 24 January 2022 Remuneration 10,125 6,048
M Wambugu from 26 January 2022 Remuneration 10,271 6,013
T Coulson from 18 May 2023 Remuneration 3,001 -
142,479 129,061

The trustees were appointed under clauses 14.1 and 14.2 of the Memorandum and Articles of Association.

Trustees are remunerated monthly based on their role as trustee. Trustees with additional responsibilities such as chair to a committee are remunerated at a higher level. The levels of remuneration were approved by the Charity Commission in 2014/15. Trustees do not receive pension contributions or other benefits.

(b) Expenses reimbursed to, and paid on behalf of, the Board of Trustees Year to Year to
Number of Board Members 31 August 2023 31 August 2022
2022/23 2021/22 £ £
Nature of expense
Travel expenses 6 2 7,265 2,417
Subsistence / meals / hospitality 10 10 1,327 375
Hotels / accommodation 3 8 1,082 2,163
Otherexpenses 10 10 650 2,995
10,324 7,950

(c) Transactions with connected parties

(i) Subsidiary undertakings

The following management and other fees were charged by the Charity to its subsidiaries:

Year to Year to
31 August 2023 31 August 2022
£’000 £’000
CfBT Education Services (B) Sdn Bhd 1,306 1,152
EDT Middle East Educational Consultancy LLC 398 183
International School of Cape Town (Pty) Ltd 31 12

During the year Education Development Zimbabwe (Private) Ltd charged the Charity £3,205,948 (2021/22: £nil) in relation to work performed for the Charity.

Company Number: 867944

46

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

6. TRANSACTIONS WITH TRUSTEES AND CONNECTED PARTIES (continued)

The following balances were owed to / (owed by) the Charity at the year-end date:

Year to Year to
31 August 2023 31 August 2022
£’000 £’000
CfBT Education Services (B) Sdn Bhd 801 801
EDT Middle East Educational Consultancy LLC (140) (140)
International School of Cape Town (Pty) Ltd 920 920
Education Development Zimbabwe (Private) Ltd (157) -

The above balances are repayable to the Charity; however, provisions have been made against balances where repayment is doubtful.

(ii) Other connected parties

Education Development Trust stepped down as a sponsor and member of Anthem from 9 May 2022. Prior to that EDT appointed two trustees to the Board of Anthem Schools Trust and services purchased and agreed prior to that date are treated as related party transactions of the Charity. All transactions between the parties were made on an arms-length basis.

The related party transactions during the period were:

he related party transactions during the period were:
Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Charge for Education Development Trust services supporting Anthem Schools Trust - 9
Services provided to Anthem Schools Trust Schools within normal Education
Development Trust business - 11

Company Number: 867944

47

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

7. TANGIBLE FIXED ASSETS

Freehold Long term Leasehold Motor Office IT Systems Assets Under Total
Property Leasehold Improvement Vehicles Fixtures & Construction
Property Computers
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Group
Cost
As at 1 September 2022 3,373 1,196 4,898 426 1,741
5,063
336		 17,033
Additions 32 - 7 - 78
258		 336 711
Transfer - - 282 - 188
-		 (470) -
Disposals (39) - (18) - (294)
(936)		 - (1,287)
Exchange adjustment (233) - (48) (41) (35)
(62)		 - (419)
As at 31 August 2023 3,133 1,196 5,121 385 1,678
4,323		 202 16,038
Depreciation
As at 1 September 2022 1,252 986 3,068 407 1,332
4,105		 - 11,150
Charge for year 22 40 304 8 184
539		 - 1,097
Eliminated on disposal (38) - (18) - (294)
(932)		 - (1,282)
Exchange adjustment (22) - (28) (36) (33)
(50)		 - (169)
As at 31 August 2023 1,214 1,026 3,326 379 1,189
3,662		 - 10,796
Net book value at
31 August 2023 1,919 170 1,795 6 489
661		 202 5,242
Net book value at
31 August 2022 2,121 210 1,830 19 409
958		 336 5,883
Freehold Leasehold Motor Office IT Systems & Assets Under Total
Property Improvement Vehicles Fixtures Computers Construction
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Charity
Cost
As at 1 September 2022 2,349 4,653 105 1,420
4,607		 336 13,470
Additions - - - 55
238		 336 629
Transfer - 282 - 188
-		 (470) -
Disposals (39) (13) - (109)
(783)		 - (944)
Exchange adjustment - (7) (15) (3)
(9)		 - (34)
As at 31 August 2023 2,310 4,915 90 1,551
4,053		 202 13,121
Depreciation
As at 1 September 2022 1,069 2,940 87 1,048
3,720		 - 8,864
Charge for year 49 283 6 166
503		 - 1,007
Eliminated on disposal (38) (13) - (109)
(779)		 - (939)
Exchange adjustment - (7) (11) (3)
(6)		 - (27)
As at 31 August 2023 1,080 3,203 82 1,102
3,438		 - 8,905
Net book value at 31 August 2023 1,230 1,712 8 449
615		 202 4,216
Net book value at 31 August 2022 1,280 1,713 18 372
887		 336 4,606

Company Number: 867944

48

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

8. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Portfolio structure ----------------------------Group and Charity----------------------------
------31 August 2023------ ------31 August 2022------
% £’000 % £’000
Fixed income 12.6% 1,188 12.6% 1,194
Equities 31.1% 2,941 29.3% 2,781
Multi Asset Funds 51.5% 4,862 51.2% 4,853
Other 4.4% 419 5.0% 471
Cash held by investment managers 0.4% 34 1.9% 177
Market value as at 31 August 100% 9,444 100% 9,476
Movement in market value of investments 2022/23 2021/22
£’000 £’000
Opening market value as at 1 September 9,476 9,979
Additions 2,403 3,912
Disposals (2,299) (4,089)
Gains / (losses) 7 (458)
(Decrease) / increase in cash (143) 132
Closing market value as at 31 August 9,444 9,476
Historical cost of investment portfolio --------Group and Charity-------- --------Group and Charity--------
2023 2022
£’000 £’000
Costs as at 31 August 7,180 7,348

Company Number: 867944

49

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

9. INVESTMENTS IN SUBSIDIARIES

The Charity holds investments in principal undertakings as follows:

% Holding of
Address /Country of Company No Issued Share Turnover Expenditure Net Assets
Registration Capital £’000
£’000		 £’000
Africa, Middle East and Asia
CfBT Education Services (B) Unit 5-6, Block D, Kiarong Complex, n/a 55% 16,230
15,845		 5,515
Sdn Bhd Lebuhraya Sultan Haji Hassanal Bolkiah,
Bandar Seri Begawan BE1318
Brunei Darussalam
EDT Middle East Educational 603, Shk. Rashid Bin Saeed St. n/a 49% 5,504
5,280		 2,003
Consultancy LLC Al Nahyan, Post Box No. 22229
Abu Dhabi, UAE
Education Development 99 Churchill Avenue, Gunhill 11145/2022 100% 3,206
3,057		 149
Zimbabwe (Private) Ltd Harare, Zimbabwe
Independent Schools
International School of Cape Woodland Heights, 4 Edinburgh Close, 2002/026764/07 100% 2,377
2,314		 985
Town (Pty) Ltd Claremont, 7806, South Africa
Waverley School (Waverley Highbridge House, 16-18 Duke Street, 3181579 100% -
40		 170
Way) Ltd Reading, RG1 4RU, UK

The Charity has a 49% shareholding in EDT Middle East Educational Consultancy LLC, a company which delivers education and training services in the United Arab Emirates. The Charity has effective control of the subsidiary and as such the subsidiary is fully consolidated within the Group.

On 28th June 2022, a UK subsidiary of the Charity, League for the Exchange of Commonwealth Teachers, was dissolved.

On 18 February 2022, Education Development Trust entered into an arrangement to sell its shares in Waverley School (Waverley Way) Limited in three stages over a period of two years. The second stage of the sale completed during the current financial year. As at 31 August 2023 the Charity still has effective control of the subsidiary and as such the subsidiary is fully consolidated within the Group.

On 19th May 2022, Education Development Zimbabwe (Private) Ltd was incorporated in Zimbabwe.

On 25th May 2023, a subsidiary of the Charity based in Malaysia, CfBT Multimedia Education Sdn Bhd, was dissolved.

Transactions with subsidiaries are detailed in the related parties note 6c.

INVESTMENTS

Subsidiary
CHARITY Investment Total
£’000
Cost as at 1 September 2022 and 31 August 2023 203

Company Number: 867944

50

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

10. DEBTORS

DEBTORS
Amounts falling due within one year
Trade debtors
Amounts owed by Group undertakings
Other debtors
Prepayments
Accruedincome		 Group
As at
As at
31/08/23
31/08/22
£’000
£’000
6,793
7,539
-
-
1,925
1,704
1,362
747
8,146
7,091		 Charity

As at
As at
31/08/23
31/08/22
£’000
£’000
5,405
5,106
1,583
1,721
532
566
472
454
6,841
5,728
18,226
17,081		 14,833
13,575

11. CREDITORS

CREDITORS
Amounts falling due within one year
Trade creditors
Amounts owed to Group undertakings
Monies held on behalf of third parties
Taxation and social security
Other creditors
Accruals
Deferredincome		 Group
As at
As at
31/08/23
31/08/22
£’000
£’000
1,788
3,892
-
-
713
708
1,587
1,289
2,503
2,600
4,480
4,324
10,987
7,929		 Charity

As at
As at
31/08/23
31/08/22
£’000
£’000
1,755
3,849
372
195
713
708
1,369
1,034
453
507
3,509
3,346
10,564
7,399
22,058
20,742		 18,735
17,038
Movement in deferred income
Opening balance at 1 September
Utilised in the year
Income deferredinthe year		 Group
As at
As at
31/08/23
31/08/22
£’000
£’000
7,929
8,276
(7,929)
(7,418)
10,987
7,071		 Charity

As at
As at
31/08/23
31/08/22
£’000
£’000
7,399
7,819
(7,399)
(6,961)
10,564
6,541
Closingbalance at 31 August 10,987
7,929		 10,564
7,399

Deferred income relates to tuition fee and contract income received in advance of related services being provided and to performance related grants where income is received in advance of entitlement.

Company Number: 867944

51

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

12.
 RESTRICTED FUNDS

Grants from
League for the
European
the UK
Other
Alexandria
Exchange of
Total
Social Fund
Department
Restricted
Schools
Commonwealth
Restricted
Grants
for Education
Grants
Trust
Teachers
Funds
£’000
£’000
£’000
£’000
£’000
£’000
Balance at 31 August 2021
-
-
30
6,134
3
6,167
Income
5,716
736
-
126
-
6,578
Expenditure
(5,716)
(736)
(30)
(210)
(3)
(6,695)
Netlosses on investments
-
-
-
(281)
-
(281)
Balance at 31 August 2022
-
-
-
5,769
-
5,769
Income
7,306
1,995
112
140
-
9,553
Expenditure
(7,306)
(1,995)
(112)
(289)
-
(9,702)
Net gains on investments
-
-
-
3
-
3
Balance at 31 August 2023
-
-
-
5,623
-
5,623
Restricted Fund Balance Sheet as at 31 August 2023
Investments
-
-
-
5,655
-
5,655
CurrentLiabilities
-
-
-
(32)
-
(32)
Net assets as at 31 August 2023
-
-
-
5,623
-
5,623
Restricted Fund Balance Sheet as at 31 August 2022
Investments
-
-
-
5,773
-
5,773
CurrentLiabilities
-
-
-
(4)
-
(4)
Net assets as at 31 August 2022
-
-
-
5,769
-
5,769

Grants from the UK Department for Education relate to the Behaviour Hubs programme.

Restricted grants are used for specific purposes as stipulated by the donor.

The assets of Alexandria Schools Trust were transferred to Education Development Trust on 1 April 2014. As part of the transfer agreement the former trustees of Alexandria Schools Trust placed restrictions on the use of the funds and therefore the fund is still treated as restricted in the Charity.

The charitable objectives of the League for the Exchange of Commonwealth Teachers are narrower than those of Education Development Trust.

Company Number: 867944

52

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

13. PROVISION FOR LIABILITIES AND CHARGES

GROUP

GROUP
Pension deficit
Dilapidations Other reduction Total
payments
£’000 £’000 £’000 £’000
As at 1 September 2022 561 41 12 614
Utilised during the year - - (5) (5)
Charge / (release)forthe year 8 (21) - (13)
As at 31 August 2023 569 20 7 596
CHARITY
As at 1 September 2022 561 20 12 593
Utilised during the year - - (5) (5)
Charge / (release)forthe year 8 (20) - (12)
As at 31 August 2023 569 - 7 576

Provisions due in over one year

Within the figures reported for both the Group and the Charity the following provisions are due after one year:

Pension deficit
Dilapidations Other reduction Total
payments
£’000 £’000 £’000 £’000
Due after oneyear 533 - 2 535

The provision for dilapidations is a best estimate of the Group’s liability as tenant for the repair and redecoration of leased buildings on termination of the leases. The timing of potential payments will be in line with the exit dates from leasehold properties.

£7,000 provision as at 31 August 2023 (2022: £12,000) shown above represents the present value of contributions payable by Education Development Trust that result from the terms of the deficit recovery plan.

Company Number: 867944

53

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

14. PENSIONS

The Group operates both defined contribution and defined benefit pension schemes. All pension liabilities and costs relate to unrestricted funds in the current and prior years.

a. Defined contribution schemes

The assets of these schemes are held separately from those of the Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £1,292,857 (2021/22: £1,150,347). Contributions totalling £231,510 (2021/22: £207,380) were payable to the fund at the year end and are included in creditors.

The Group also participates in the Pension Trust’s Growth Plan. This is a funded, multi-employer scheme with defined benefit characteristics. As it is not possible to identify on a consistent basis the share of underlying assets and liabilities belonging to an individual employer, this scheme is treated as a defined contribution scheme. Contributions payable in the year, amounted to £4,682 (2021/22: £14,200). The results of the Growth Plan scheme valuation as at 30 September 2020 showed a deficit of £31.6m. A recovery plan has been established which aims to eliminate the funding deficit over a period of 2 years and 10 months from April 2022. The additional employer contributions required from Education Development Trust as part of this recovery plan are £0.005m per annum. In line with the requirements of the SORP and FRS 102, the present value of contributions payable under the terms of this recovery plan must be recognised as a liability and this is detailed at note 13 to the consolidated

b. Defined benefit scheme

The Charity participates in a local government pension scheme (LGPS) operated by The London Pension Fund Authority providing benefits based on final pensionable salary. The Charity also participates in both the Prudential Platinum Pension and the Mercer DB Master Trust Plan (formerly the Federated Pension Plan) which are multiemployer schemes. In both schemes the assets of each employer are kept entirely separate. The Charity is the principal employer of the Educational Exchanges Pension Scheme which is a closed scheme.

The pension cost of each scheme is determined on the advice of independent qualified actuaries. As required by FRS 102, the defined benefit liabilities have been measured using the projected unit method.

The assets of the defined benefit schemes are held separately from those of the Group.

Derivation of figures

The figures disclosed below have been derived by approximate methods from the latest full actuarial valuation of the funds. Each actuarial valuation was carried out by a qualified actuary independent of the plan's sponsoring employer. The latest actuarial valuations were carried out as at 31 March 2022 for the LGPS, as at 1 April 2021 for the Educational Exchanges Pension Scheme, as at 31 December 2020 for the Prudential Platinum scheme and as at 5 April 2021 for Mercer DB Master Trust Plan.

There is no provision for unitising the assets of a fund under the LGPS. The assets of each fund as a whole are allocated to participating bodies on a consistent and reasonable basis. The assumptions used in calculating defined benefit assets and liabilities are shown in the following table:

Company Number: 867944

54

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

14. PENSIONS (continued)

Derivation of figures (continued)

ation of figures (continued)
2022/23 2021/22
Assumptions
RPI 3.30%-3.50% 3.20%-3.50%
CPI 2.30%-3.10% 2.20%-3.20%
Salary increases per annum 2.80%-3.85% 2.70%-4.20%
Pensions increases per annum 2.30%-3.10% 2.20%-3.30%
Discount rate per annum 5.30%-5.50% 4.20%-4.30%

Mortality assumptions

Each fund uses assumptions appropriate to that fund. The LGPS uses Club Vita tables with a long cohort projection and 1.25% improvement. The Educational Exchanges Pension Scheme, Prudential Platinum Scheme and Mercer DB Trust Plan all use the S3PA tables, long cohort with a 1.25% improvement.

Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Composition of assets and liabilities
Equities 6,320 6,245
Gilts 4,103 2,386
Other bonds / property 2,982 2,420
Cash / other 2,254 2,862
Plan assets at fair value 15,659 13,913
Derecognitionofsurplus* (6,125) -
Asset value recognised 9,534 13,913
Presentvalue of fundedliabilities (9,534) (8,731)
Net asset recognised - 5,182

*The trustees believe that there is a significant uncertainty in the valuation of the pension scheme assets as many of the assumptions that are leading to the net asset position could quite plausibly unwind, which increases the uncertainty on whether the net asset will ever be recovered. Consequently, we consider the recoverability of a net pension asset to be uncertain and therefore falls below the recognition threshold required under FRS 102.

Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Reconciliation of the present value of liabilities
Opening present value of liabilities 8,731 12,679
Current service cost 143 279
Past Service costs, including curtailments - 55
Interest cost 367 206
Contributions by participants 24 32
Net benefits paid out (357) (294)
Recognition of insured annuity 1,893 -
Actuarialgains (1,267) (4,226)
Closing present value of liabilities 9,534 8,731

Company Number: 867944

55

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

14. PENSIONS (continued)

IONS (continued)
Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Reconciliation of the fair value of assets
Opening fair value of assets 13,913 13,390
Interest income 590 217
Re-measurement (losses) / gains:
Return on scheme assets excluding
interest income (531) 424
Other actuarial losses (56) -
Contributions by employer 256 224
Contributions by participants 24 32
Net benefits paid out (357) (294)
Recognition of insured annuity 1,893 -
Administration expenses (73) (80)
Closing fair value of assets 15,659 13,913
Return on assets
Actual return on assets 59 641
Amount recognised in the SOFA
Current service cost 143 279
Past service costs, including curtailments - 55
Administration expenses 73 80
Netinterestincome (223) (11)
(Income)/ expense recognised (7) 403
Year to Year to
31 August 2023 31 August 2022
£’000 £’000
Analysis of actuarial (loss) / gain recognised within the
SOFA gains and losses category
Actual return less interest income included in net interest income
(531)		 424
Other actuarial losses on assets (56) -
Experience gains and losses arising on the scheme liabilities (382) 87
Changes in assumptions underlying the present value of scheme
liabilities 1,649 4,139
Derecognitionofsurplus (6,125) -
Total actuarial (losses) / gains (5,445) 4,650

Company Number: 867944

56

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

15. OPERATING LEASE COMMITMENTS

OPERATING LEASE COMMITMENTS
At 31 August there were annual commitments under non-cancellable
operating leases expiring as follows: At 31 August At 31 August
2023 2022
£’000 £’000
Land and buildings
Group
Within one year 2,303 2,299
Within two to five years 2,972 3,079
After five years 7,791 7,052
13,066 12,430
Charity
Within one year 783 760
Within two to five years 2,512 2,626
After five years 7,791 7,052
11,086 10,438

The land and building lease commitment figure for both the Charity and the Group includes a total of £1.8m (2021/22: £2.2m) relating to properties which are sub-let to another organisation.

Future amounts receivable under non-cancellable subleases are as follows:

At 31 August At 31 August
2023 2022
£’000 £’000
Land and buildings
Group and Charity
Within one year 401 389
Within two to five years 1,370 1,604
After five years - 167
1,771 2,160

16. CONTINGENT LIABILITIES

CONTINGENT LIABILITIES
At 31 August At 31 August
2023 2022
£’000 £’000
Guarantees
CfBT Education Services (B) Sdn Bhd 482 750
EDT MiddleEastEducationalConsultancyLLC 64 54
546 804

The bank guarantees are issued in favour of clients and overseas government departments based on the above group entities’ contractual obligations and would crystallise only on default of these obligations.

Company Number: 867944

57

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

17. PRIOR YEAR COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

---------------GROUP---------------------- ---------------GROUP---------------------- ---------------GROUP---------------------- ------------------CHARITY------------------------ ------------------CHARITY------------------------ ------------------CHARITY------------------------
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2021/22 Funds Funds 2021/22
£’000 £’000 £’000 £’000 £’000 £’000
INCOME
Income from investments
Dividends receivable 81 126 207 384 126 510
Rental income 410 - 410 403 - 403
Interest income 50 - 50 16 - 16
Income from charitable activities
UK 26,398 6,452 32,850 26,399 6,452 32,851
Africa, Middle East and Asia 40,477 - 40,477 23,763 - 23,763
Research and Consultancy 4,923 - 4,923 4,924 - 4,924
Independent Schools 10,153 - 10,153 7,895 - 7,895
Total income 82,492 6,578 89,070 63,784 6,578 70,362
EXPENDITURE
Expenditure on raising funds
Investment managers’ fees 17 27 44 17 27 44
Other costs 409 - 409 409 - 409
Expenditure on charitable activities
UK 23,539 6,485 30,024 24,343 6,482 30,825
Africa, Middle East and Asia 41,100 - 41,100 23,777 - 23,777
Research and Consultancy 4,255 183 4,438 4,376 183 4,559
Independent Schools 9,782 - 9,782 7,709 - 7,709
Total expenditure 79,102 6,695 85,797 60,631 6,692 67,323
Total income less total expenditure 3,390 (117) 3,273 3,153 (114) 3,039
Netlosses on investments (177) (281) (458) (177) (281) (458)
Net income /(expenditure) 3,213 (398) 2,815 2,976 (395) 2,581
Other recognised gains and losses
Actuarial gain on defined benefit 4,650 - 4,650 4,650 - 4,650
pension schemes
Exchange gainonconversionofsubsidiaries 1,064 - 1,064 - - -
Total recognised gains for period 5,714 - 5,714 4,650 - 4,650
Net movement in funds before minority
interest 8,927 (398) 8,529 7,626 (395) 7,231
Less: minority interest (554) - (554) - - -
Net movement in funds after minority
interest 8,373 (398) 7,975 7,626 (395) 7,231
Balance brought forward at 1Sept 2021 20,553 **6,167 ** 26,720 15,678 **6,164 ** 21,842
Balance carried forward at 31 Aug 2022 28,926 5,769 34,695 23,304 5,769 29,073

Company Number: 867944

58

NOTES TO THE FINANCIAL STATEMENTS (continued) For the year ended 31 August 2023

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

---------------GROUP---------------------- ---------------GROUP---------------------- ---------------GROUP---------------------- ------------------CHARITY------------------------ ------------------CHARITY------------------------ ------------------CHARITY------------------------
Unrestricted Restricted Minority Total Unrestricted Restricted Total
Funds Funds Interest Funds Funds
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Tangible assets 5,242 - - 5,242 4,216 - 4,216
Investments 3,789 5,655 - 9,444 3,992 5,655 9,647
Net current assets / (liabilities) 15,279 (32) 2,882 18,129 10,713 (32) 10,681
Provisions for liabilities and charges (596) - - (596) (576) - (576)
Defined benefit pensionschemes - - - - - - -
Net Assets as 31 August 2023 23,714 5,623 2,882 32,219 18,345 5,623 23,968
Tangible assets 5,883 - - 5,883 4,606 - 4,606
Investments 3,703 5,773 - 9,476 3,906 5,773 9,679
Net current assets / (liabilities) 14,772 (4) 3,237 18,005 10,203 (4) 10,199
Provisions for liabilities and charges (614) - - (614) (593) - (593)
Defined benefit pensionschemes 5,182 - - 5,182 5,182 - 5,182
Net Assets as 31 August 2022 28,926 5,769 3,237 37,932 23,304 5,769 29,073

19. FINANCIAL INSTRUMENTS

Financial assets held at amortised cost
Financial assets held at fair value
Financial liabilities held at amortised cost		 Group
As at
As at
31/08/23
31/08/22
£’000
£’000
38,825
38,000
9,444
9,476
9,484
11,524		 Charity
As at
As at
31/08/23
31/08/22
£’000
£’000
28,944
26,783
9,444
9,476
6,802
8,605

Financial assets held at amortised cost comprise cash and debtors excluding prepayments.

Financial assets held at fair value are investments.

Financial liabilities held at amortised cost comprise creditors excluding taxation and deferred income.

Company Number: 867944

59