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REGISTERED NUMBER: 13087605 (England and Wales)















CORNERSTONE ALTERNATIVE EDUCATION LTD

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024






CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


CORNERSTONE ALTERNATIVE EDUCATION LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2024







DIRECTORS: A N Smith
N D Brindle





REGISTERED OFFICE: Cornerstone Academy
Warmingham Road
Crewe
Cheshire
CW1 4PP





REGISTERED NUMBER: 13087605 (England and Wales)





AUDITORS: Murray Smith LLP
Chartered Accountants
Statutory Auditors
Darland House
44 Winnington Hill
Northwich
Cheshire
CW8 1AU

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

BALANCE SHEET
31 AUGUST 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 18,186 4,683

CURRENT ASSETS
Debtors 5 83,926 8,481
Cash at bank 78,489 194,649
162,415 203,130
CREDITORS
Amounts falling due within one year 6 132,576 160,437
NET CURRENT ASSETS 29,839 42,693
TOTAL ASSETS LESS CURRENT
LIABILITIES

48,025

47,376

PENSION ASSET 8 - 20,000
NET ASSETS 48,025 67,376

RESERVES
Income and expenditure account 48,025 67,376
48,025 67,376

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2024 and were signed on its behalf by:





N D Brindle - Director


CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1. STATUTORY INFORMATION

Cornerstone Alternative Education Ltd is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 8, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 August 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability. The Company has recognised the pension asset calculated by the actuaries on the basis that this will impact the level of contributions in the future.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on cost
Computer equipment - 25% on cost

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease.

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

2. ACCOUNTING POLICIES - continued

Financial liabilities
A financial liability is recorded at transaction price and is derecognised when the obligation under the liability is discharged or cancelled or expires.

Trade debtors
Trade debtors are recognised at cost less provision for doubtful debts. The recoverability of trade debtors is reviewed on an ongoing basis. A provision for doubtful debtors is established when collection of the full nominal amount is no longer probable. Bad debts are written off as incurred.

Provisions
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period, and are discounted to present value where the effect is material.

Employee benefits
(a) Wages and salaries and annual leave
Liabilities for wages and salaries and annual leave are recognised and are measured as the amount unpaid at the reporting date at current pay rates in respect of employees' services up to that date. They are expected to be settled within one year.

(b) Pensions
The Company contributes towards a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Retirement benefits to employees of the Company are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes.

The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the Company in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The LGPS is a funded multi-employer scheme, and the assets are held separately from those of the Academy Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income/(expenditure) are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the Statement of Financial Activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2023 - 10 ) .

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

4. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 September 2023 - 5,658 5,658
Additions 14,329 2,084 16,413
At 31 August 2024 14,329 7,742 22,071
DEPRECIATION
At 1 September 2023 - 975 975
Charge for year 1,192 1,718 2,910
At 31 August 2024 1,192 2,693 3,885
NET BOOK VALUE
At 31 August 2024 13,137 5,049 18,186
At 31 August 2023 - 4,683 4,683

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 42,774 1,716
Prepayments and accrued income 41,152 6,765
83,926 8,481

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors - 1,815
Amounts owed to group undertakings 96,471 123,769
Social security and other taxes 17,222 16,882
Accruals and deferred income 18,883 17,971
132,576 160,437

7. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Michael Benson (Senior Statutory Auditor)
for and on behalf of Murray Smith LLP

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

8. EMPLOYEE BENEFIT OBLIGATIONS

The Company's employees belong to two principal pension schemes: The Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by the Cheshire Pension Fund. Both are multi-employer defined benefit schemes.

The latest actuarial valuation of the TPS related to the period ended 31 March 2020 and of the LGPS 31 March 2022.

Contributions amounting to £9,438 were payable to the schemes at 31 August 2024 (2023: £7,917) and are included within creditors.

Teachers' Pension Scheme
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary -these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised andmanagement appropriately and the review specifies the level of future contributions.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:

- employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy).
This is an increase of 5% in employer contributions and the cost control result is such that no change in
member benefits is needed
- total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service
to the effective date of £262,000 million and notional assets (estimated future contributions together with
the notional investments held at the valuation date) of £222,200 million, giving a notional past service
deficit of £39,800 million.

The result of this valuation will be implemented from 1 April 2024. The next valuation result is due to be implemented from 1 April 2028.

The employer's pension costs paid to TPS in the year amounted to £59,344 (2023 £38,498).

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.
(https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx)

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the academy trust has taken advantage of the exemption under FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above, the information available on the scheme.

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

Local Government Pension Scheme
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2024 was £26k (2023 £30k), of which employer's contributions totalled £20k (2023 £25k) and employees' contributions totalled £6k (2023 £5k). The agreed contribution rates for future years are 18.2% for employers and between 5.5% and 12.5% for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of an Academy Trust closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on Gov.uk.

The amounts recognised in the balance sheet are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Present value of funded obligations (94,000 ) (67,000 )
Fair value of plan assets 94,000 87,000
- 20,000
Present value of unfunded obligations - -
Surplus - 20,000
Net asset - 20,000

The amounts recognised in surplus or deficit are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Current service cost 16,000 20,000
Net interest from net defined benefit
asset/liability

9,000

3,000
Past service cost - -
25,000 23,000

Actual return on plan assets 9,000 (8,000 )

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

8. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening defined benefit obligation 67,000 66,000
Current service cost 16,000 20,000
Contributions by scheme participants 6,000 5,000
Interest cost 4,000 3,000
Remeasurements:
Actuarial (gains)/losses from changes in
demographic assumptions

-

(3,000

)
Actuarial (gains)/losses from changes in
financial assumptions

(2,000

)

(28,000

)
Obligation other experience 3,000 4,000
94,000 67,000

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Opening fair value of scheme assets 87,000 65,000
Contributions by employer 20,000 25,000
Contributions by scheme participants 6,000 5,000
Assets interest on plan assets 5,000 3,000
Effect of asset ceiling (28,000 ) -
Remeasurements:
Return on plan assets (excluding interest
income)

4,000

(5,000

)
Assets other experience - (6,000 )
94,000 87,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2024 2023
£    £   
Actuarial (gains)/losses from changes in
demographic assumptions

-

3,000
Actuarial (gains)/losses from changes in
financial assumptions

2,000

28,000
Obligation other experience (3,000 ) (4,000 )
Return on plan assets (excluding interest
income)

4,000

(5,000

)
Assets other experience - (6,000 )
3,000 16,000

CORNERSTONE ALTERNATIVE EDUCATION LTD (REGISTERED NUMBER: 13087605)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 AUGUST 2024

8. EMPLOYEE BENEFIT OBLIGATIONS - continued

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit
pension plans
2024 2023
Equities 53% 52%
Bonds 33% 33%
Property 13% 14%
Cash 1% 1%
100% 100%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2024 2023
Discount rate 5.00% 5.20%
Future salary increases 3.35% 3.65%
Future pension increases 2.65% 2.95%

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:
At 31 AugustAt 31 August
20242023
Retiring today
Males20.921.0
Females23.923.9

Retiring in 20 years
Males21.521.6
Females25.525.6

9. ULTIMATE CONTROLLING PARTY

Cornerstone Alternative Education Ltd is a company limited by guarantee.

Youth Engagement Schools Trust is the sole member.