Company registration number 07657235 (England and Wales)
LIGHTHOUSE HARMONIZE EDUCATION TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
LIGHTHOUSE HARMONIZE EDUCATION TRUST
CONTENTS
Page
Reference and administrative details
1 - 2
Trustees' report
3 - 20
Governance statement
21 - 29
Statement on regularity, propriety and compliance
30
Statement of trustees' responsibilities
31
Independent auditor's report on the accounts
32 - 36
Independent reporting accountant's report on regularity
37 - 38
Statement of financial activities including income and expenditure account
39 - 40
Balance sheet
41
Statement of cash flows
42
Notes to the accounts including accounting policies
43 - 60
LIGHTHOUSE HARMONIZE EDUCATION TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
Elsie Hogan-Edem
Alembari Aadum (Appointed 4 November 2023)
Liverpool Lighthouse Limited, represented by Helen Hawley
Love and Joy Ministries Ltd, (Tanidabi Omideyi resigned as representative 17 October 2023)
Modupe Omideyi
Stephanie Murphy (Resigned 4 December 2023)
Isoken Terry Andrew-Okunzuwa (Appointed 4 November 2023)
Trustees
Modupe Victoria Emrica Omideyi (Chair)
Marie McConville (Principal)
Nobert Osemeke
Osoba Otaigbe
Rebecca Latus
Rebecca Jane Ross-Williams
Stephen Allen Harper
Anthony Lawson (Staff)
Senior management team
- Principal
Marie McConville
- Vice Principal
Carl Parkinson
- Assistant Principal
Wynn Ridge
- Assistant Principal
Elizabeth Cunningham
- Assistant Principal
Okaro Onowighose
-
Denise McNeil (resigned 12 November 2024)
- School Business Manager
Lyn Roberts (appointed 13 November 2024)
Company registration number
07657235 (England and Wales)
Registered office
7 Phillimore Road
Liverpool
Merseyside
L6 6DL
Independent auditor
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
Bankers
The Royal Bank of Scotland plc
1 Dale Street
Liverpool
Merseyside
L2 2PP
LIGHTHOUSE HARMONIZE EDUCATION TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 2 -
Solicitors
Bates Wells Braithwaite
10 Queen Street Place
London
EC4R 1BE
LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2023 to 31 August 2024. The annual report serves the purposes of both a trustees' report, and a directors' report and strategic report under company law.

The academy trust operates an academy for pupils aged 13-16 serving a catchment area in Merseyside and Cheshire. From September 2021, the pupil capacity expanded to 150; there was a roll of 140 on the school census in May 2024 and 155 by the end of the summer term.

Structure, governance and management
Constitution

The academy trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust.

Trustees

The trustees of Lighthouse Harmonize Education Trust are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the year, and to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.

Members' liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.

Trustees' indemnities

In accordance with normal commercial practice the Academy has purchased insurance to protect governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance is the EFA Risk Protection Arrangement (RPA) and provides £10 million cover (2023: £10 million) on any one claim and the cost for the year ended 31 August 2024 was £3,450 (2023 £3,150).

Method of recruitment and appointment or election of trustees

In accordance with the Articles of Association, the trust must appoint up to 9 governors (minimum of 3). The Principal is an ex-officio governor. In addition staff and parent governors may be elected, and further governors may be co-opted.

Policies and procedures adopted for the induction and training of trustees

All new governors will undergo an induction. They will be given a tour of the Free School and the opportunity to meet with staff and students. Policies, procedures, minutes, accounts, budgets and other documents will be available to governors to enable them to undertake their role. Induction is informal and tailored specifically to the needs of the individual. Training will be provided in identified areas, and will depend on the needs and existing experience of the governing body.

Organisational structure

The board of governors and administrative details of the Free School are detailed on page 1. Since the Academy opened on 1 April 2013, full Governing Body meetings are held at least once a term to ensure that the Free School is run in an efficient and professional manner. The board has appointed four sub-committees: Quality of Education; Arts and Community; Finance and Resources and Audit (the members of the Finance and Resources Committee meet separately as the Audit Committee). The Pay Committee is convened once a year. Currently, the business of the Arts & Community Committee is included as an item on the agenda of the Quality of Education Committee.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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Arrangements for setting pay and remuneration of key management personnel

In line with national pay scales STPCD (School Teachers’ Pay and Conditions Document); and recommendations by the STRB (School Teachers’ Review Body).

 

Trade union facility time

The Trust has no relevant trade union officials.

Related parties and other connected charities and organisations

Love and Joy Ministries Limited and Liverpool Lighthouse Limited are corporate members of Lighthouse Harmonize Education Trust.

Objectives and activities
Objects and aims

The Academy is an Outstanding Alternative Education School for students in Years 9 – 11. It has a Christian ethos that is based on values of trust, respect, compassion and forgiveness which permeate every aspect of school life.

 

Their aim is to provide every student with a Vision for Life through a personalised curriculum enabling them to fulfil their potential in education, life and employment.

Objectives, strategies and activities

Harmonize Academy aims to provide an outstanding alternative education for Key Stage 3 and 4 students across Merseyside and Cheshire underpinned by Christian values. Harmonize promotes an inclusive community where everyone feels safe, valued and secure; where students achieve their potential both educationally and personally. This is achieved through high quality teaching and learning in a caring, dynamic environment, where a variety of educational pathways exist to enable all students to achieve the academic success and the maturity of character which will enable them to succeed in adult life.

Public benefit

The governors confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Academy's aims, planning strategy and future activities. Our activities in 2023/24 demonstrated in all accepted definitions that Lighthouse Harmonize Education Trust provides charitable services that are of public benefit through the preparation to provide secondary education, to advise and support other providers of such secondary education, and to make available the facilities and resources of the Academy for the local community and other charitable purposes. We continue to hold the delivery of public benefit as both central and fundamental to our core activities.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Strategic report
Achievements and performance

The Trust successfully opened in April 2013 and became one of the first Alternative Provision Free Schools of its kind in the UK. The Academy commands widespread respect and appreciation for its impact on young people and is a popular and credible option for schools and local authorities across Merseyside.

 

In March 2015, the Academy was graded as ‘Outstanding’ by Ofsted and in January 2020, the Academy retained its ‘Outstanding’ status. It has twice been awarded the highest accolade of ‘Outstanding’ by Ofsted and is one of only a handful of secondary schools in Liverpool to achieve this status.

 

From September 2021, the Academy officially increased the number of students from 104 to 150. The expansion has been expertly overseen by the Principal. The additional classrooms and learning spaces have now been integrated into the curriculum and timetable. The additional increase in student population from 104 to 150 has been seamlessly absorbed whilst maintaining the ethos and care that underpin the values and operation of the Academy.

 

The trust is part of the AP Forum and The Difference and shares best practice with other AP providers; the Principal is a member of the LASH New Headteacher Support Group and has linked up with the new headteacher from Everton Free School to support her. The academy continues to have a high profile both locally and nationally with many individuals and organisations being referred to the school by the DfE as a beacon of excellence in the AP sector. The trust has also established strategic partnerships with Liverpool Hope University, Liverpool John Moores University, Edge Hill University and the University of Liverpool, and provides placements for trainee teachers in English, Maths and Science, and for students of Child and Adolescent Mental Health.

 

Harmonize Academy has once again had a successful year under the leadership and guidance of its Principal who has twenty-two years of experience working in the sector and is now in her seventh year as Principal. She is widely respected for her vision and delivery of opportunities for young people who have fallen out of mainstream schooling. The Academy is headed into its twelfth year of operation and is rated as outstanding by Ofsted, it has experienced a decade of opportunity, achievement, transformation and growth. Its expansion has been successfully managed both in terms of pupil numbers, and the addition of classrooms and other learning spaces through a building programme. At the same time, the budgetary position has been improved and financial resilience increased. This has been done whilst ensuring the Christian ethos, vision and values of the Academy have been maintained for students and staff and this is reflected in the positive relationships between students and staff.

 

Students have benefited from an enhanced curriculum provision that engages and promotes academic success. The expansion has allowed additional staff to be employed and existing staff to be promoted into leadership positions. The wide ranging CPD provision supports all staff whatever stage of their career that they are at. CPD is viewed as critical to the quality of Teaching, staff are proud to work at the school. Many have developed their careers at the school. Some staff who joined as teaching assistants are now qualified teachers. Some teachers have completed leadership qualifications, and have gained promotion. Staff value highly the support that they receive from senior leaders. While the application to open a new school was not successful, other opportunities working directly with local authorities are being explored and this process is ongoing starting with Sefton, Knowsley and Salford.

The evidence presented shows the school commands widespread respect and appreciation for its impact on young people placed in it from across the city region. Student numbers have met and exceeded the targets set. The school is highly valued locally and in the wider city region for the work it undertakes and the opportunities it provides for young people. The curriculum offer continues to expand to provide engagement and qualifications for students as they progress to their next steps. These include art, photography, statistics, psychology and the LAMDA oracy qualification. Mathematical achievement has been brought in line with English through interventions to fill gaps in basic knowledge. In addition, students now sit Level 2 Functional Skills Maths as well as their GCSE. Literacy has been supported by the creation of a quiet reading space and a continued focus on oracy.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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Academic Progress

Students arrive at Harmonize Academy at different times during KS3 and KS4, therefore for us to demonstrate the progress our students make we must compare their starting point or baseline figures. We baseline students using a mixture of GCSE subject papers, reading tests and teacher assessments. 3 levels of progress over 5 years equates to 0.66 levels of progress annually. If students at HA make 0.66 levels of progress as an average annually, they will be making “expected progress”.

Students are assessed by teaching staff every 6 weeks these assessments are based on the GCSE 9 – 1 level. This level is then compared with the student’s baseline level from their entry point at Harmonize, in each subject. From this we work out the full levels of progress since arrival; we can then use this data to produce an average possible progress annually by dividing this figure by number of weeks at Harmonize then multiplying by 38 (Academic weeks in a year).

 

English - 60% met or surpassed their target grade. The average attainment grade is level 3, average baseline as a level 2. Therefore, on average students made 1 level of progress while at Harmonize Academy. This equates to 0.71 levels of progress on average annually in English. 27% of students made 1 level of progress and 12% made 2 levels of progress and 8% made 3 and 4 levels of progress in English.

 

71% LAC or PLAC met or surpassed their target grade with 20% of them achieving a grade 4. For the SEND students 81% met or surpassed their target grades with 27% achieving grade 4 or above in English.

 

Maths – 50% met or surpassed their target grade. The average attainment grade is level 2, average baseline as a level 1.7. Therefore, on average students made 0.55 levels of progress while at Harmonize Academy. 22% of students made 1 level of progress and 5% made 2 levels of progress and 12% made 3 and above levels of progress in maths.

 

70% LAC or PLAC met or surpassed their target grade with 30% achieving a grade 4. 81% of SEN students met or surpassed their target grades with 9% achieving a grade 4.

 

Given the backgrounds of the children who are referred to Harmonize Academy, this represents rapid progress from their starting points on entry to the Academy.

 

Attendance

Achieved 75% attendance above national rate for schools in similar circumstances, currently 82% attendance this year which is back to pre-Covid levels. There is a well-planned system of rewards which provides real incentives for students to improve their behaviour and attendance and stay focused on learning. Each student belongs to one of eight houses and has their own individual mentor with whom they have a timetabled meeting once a week to review achievements, behaviour and to set targets for the following week.

 

Enrichment

Enrichment trips and activities continue to offer high quality learning and enrichment experiences on a daily basis. Throughout the year students benefited from many different learning opportunities and trips to enrich their educational experience, these included:

 

Enrichment Trips and Activities

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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Leavers:

Continuing Professional Development:

Partnerships

Over the past year we have worked successfully with the following organisations:

Barnardos, Catch 22, Family First Knowsley, We Are With You, YPAS

 

The following Awards were achieved:

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -

VIP and Education Visitors and Events 2023-24

Regular Individual Facilitators:

The following schools placed students at Harmonize Academy during 2023-24:

The Alsop High School, Archbishop Beck Catholic College, Archbishop Blanch School, Bellerive FCJ Catholic College, The Belvedere Academy, Birkenhead High School, Birkenhead Park School, Broughton Hall High School, Calderstones School, Cardinal Heenan Catholic High School, Childwall Sports & Science Academy, Clifford Holroyde College, De La Salle School St Helens, Deyes High School, Dixons Broadgreen Academy, Dixons Fazakerley Academy, Gateacre School, The Grange Academy, Halewood Academy, Helsby High School, Hillside High School, Holly Lodge Girls’ College, Holy Family Catholic High School, King’s Leadership Academy Hawthornes, Kings Leadership Liverpool, Kirkby High School, Liverpool College, Liverpool Life Sciences UTC, LIPA, Lord Derby Academy, North Liverpool Academy, Notre Dame Catholic College, Ormiston Bolingbroke Academy, Ormiston Chadwick Academy, Prenton High School for Girls, The Prescot School, Rainhill High School, Sacred Heart Catholic Academy, St Edward’s College, The Academy of Saint Francis of Assisi, St Francis Xavier’s College, St Hilda’s CE High School, St John Bosco Arts College, St Julie’s Catholic High School, The Academy of St Nicholas, The Studio School Liverpool, Upton by Chester High School, Wade Deacon High School, Weatherhead High School, West Derby School, Whitby High School.

The following Local Authorities placed students at Harmonize Academy during 2023-24:

Liverpool City Council Alternative Provision Team, Liverpool SEN, Liverpool Virtual School, Cheshire West & Chester Council, Cheshire West & Chester Virtual School, Knowsley Metropolitan Borough Council, Wirral SEN.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -

Parent/Carer Support

We were able to host our usual parent/carer review day in July for students in years 9 and 10. This is always a highlight of the year and was a great success with a high turnout of students, parents and carers. A review afternoon for year 11 students and their parents/carers was held earlier in the year. These events were very worthwhile and a model that we will continue to follow. We received many positive comments including the following:

A selection of comments from parents, carers and students during 2023-24:

Feedback from Parents/Carers

Feedback and highlights from students

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -

The following feedback is from others

 

Mr Martyn King, Team Leader, DfE Liverpool City Region, Warrington and Cheshire, North West Regions Group

 

Ms Rachael Fidler, School Trust Leader and Principal, Dixons Broadgreen Academy

 

Mr Andy Keen, Headteacher, Holly Lodge Girls' College, Liverpool

 

Mr E Barford, Headteacher, Whitby High School

 

It was great working with the students today, some real characters and some who really came out of their shells, overall it felt like the sessions were well received. Thank you and your staff for the support in the classrooms too, always fab to have teachers so active in the sessions.

Ms Jeanette Percival, Actor/Voice Over and Freelance Facilitator

 

Dr Sjay Patterson-Craven EdD., SFHEA Assistant Head of Area, Edge Hill University

 

Ms Margaret Kirk, EHAT Team Manager, Early Help Children’s Services

 

Mr David Wilcoxson, Senior SEND Casework Officer, Liverpool City Council

 

Multi Academy Trust Status

LHET submitted a bid in February 2023 as the lead applicant partnering with Sefton Local Authority to open an alternative provision free school in Sefton. An interview by the DFE, which was the second stage of the process, took place on 3rd July 2023. The outcome of the application process was communicated on 6th March 2024. In spite of an earlier indication to the contrary, LHET’s application was not approved. The Trust is still committed to expanding into a MAT, and is exploring doing so through the LA Presumption Process, in partnership with Sefton and other interested local authorities.

 

Key performance indicators

Key Performance Indicators (KPIs) were identified for the period 2023-24 which related to the aims and objectives of the Academy. Each priority area of the Improvement Plan has identified Key Performance Indicators (KPIs). These were used to evaluate the Academy’s success and progress towards achieving these objectives. These included:

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -

Leadership and governance pursue excellence and outstanding provision for all students.

Self-evaluation leads to effective actions, improving learning and outcomes for students.

 

1. Maintain and Increase the Student Roll (Overall Effectiveness)

a. Increase the Academy’s roll to 150 by June 2023

b. Maintain the Academy’s roll at 100 in September 2024 June 2023

 

2. Attendance (Behaviour & Attitudes)

a. Maintain the historical improvements in attendance (at a minimum of 85%) and reduce PA accordingly for students who completing the 6-week trial period and are enrolled at the Academy.

b. Punctuality - Work towards 70% of students being registered present in school by 9.15 am.

 

3. Attainment (Quality of Education - Impact)

a. GCSE Average Point Score total at 200 points based on a cohort of approx. 60 students in Year 11

b. Combined English & Mathematics at Grade 9-4 20%

c. 5 GCSE grades 9-1 or equivalent including English & Mathematics 95%

 

4. Behaviour (Behaviour & Attitudes)

a. 0% Permanent exclusions

b. 2% Fixed term exclusions maximum

c. 90% Student class behaviour records Good or Outstanding

d. 2% Student class behaviour records Serious or Unacceptable maximum

 

5. Progress (Quality of Education - Impact)

a. All students to make one level of progress or better in all subjects in their time at the academy.

b. 60% of students to make one level of progress or better from their baseline assessment on entry to HA in English.

c. 50% of students to make one level of progress or better from their baseline assessment on entry to HA in Mathematics.

 

6. Teaching and Learning (Leadership & Management)

a. Lesson Observations Target - 90% Judged to be Good or better

b. Lesson Observations Target - 45% Judged to be Outstanding

c. Lesson observations Target - 0% Inadequate

 

7. Leadership & Management (Leadership and Management)

a. To maintain the Outstanding Ofsted judgement (Jan. 2020) for the overall effectiveness

b. To continue to support staff on a range of professional development programmes.

 

Community Strategy and Academy Development Targets

  1. To open Harmonize 2 in September 2025 subject to DfE approval.

  2. Work towards the successful application and establishment of a “new” school and MAT growth plan in conjunction with Sefton LA. Tentative opening dates Sept. 2024 or Sept. 2025

  3. Continue to engage with local and regional agencies.

  4. Continue to maintain the already established and effective working relationships with other AP providers including the Everton F. C. Free School.

  5. Continue to develop, implement and strengthen the Academy’s Financial Strategy.

  6. Look to develop a chaplaincy on-site to further support the Christian ethos of the Academy. In addition, look to incorporate the Academy's Christian ethos in Harmonize 2.

  7. Continue to promote and develop the “Move On and Move Up” programme to improve and support the transition and logistical arrangements at 16 +. In addition, continue to engage with former Academy students where possible in both the 16-18 and 18-21 age ranges in order to benefit the current cohort groups at the Academy.

 

Monitoring of the above will take place through the existing management and evaluation procedures in operation at the Academy.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
Going concern

After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.

Financial review

The Trust’s main income is received from the Education and Skills Funding Agency (EFA). This revenue funding is called the general annual grant (GAG) and is received on a monthly basis. This is topped up by income from Liverpool City Council places allocated to provide alternative provision for pupils that have been permanently excluded. Also, we commission places from schools across Merseyside and Cheshire for those pupils in danger of exclusion or for those who cannot cope with mainstream education for a variety of reasons. These schools are invoiced on an individual basis per term.

The Academy’s deficit for 2024 is £187k (2023 surplus £51k) after depreciation and amortisation charges of £79k (2023 £93k).

After accounting for the actuarial gain on the local government pension scheme and the restriction on the pension scheme, the net movement in funds for the year is a £269k deficit (2023 surplus £271k).

A financial strategy document is currently under development.

Reserves policy

The governors review the reserve levels of the Free School annually. This review considers the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves.

 

The governors are looking to develop income streams that would enable the trust to build up reserves to act as a buffer against any changes in funding.

 

They have decided that it is prudent to try and build a reserve of restricted funds approximately equal to 5% of annual income to safeguard against unforeseen circumstances, late ESFA payments, emergencies and other catastrophes. This is sound commercial practice designed to safeguard the quality of education received at the Trust.

In 2024, the value of restricted general reserves is £191k (2023: £411k) and restricted fixed asset reserves is £2,397k (2023: £2,390k).

 

Support staff are members of the Local Government Pension Scheme. The academy has not recognised the surplus in accordance with current guidance on the scheme (2023 surplus £59k) and this has a neutral (2023: positive) impact on the overall reserves position. The current position will be evaluated in line with the triennial valuation. This will be monitored by the Finance & Resources Committee.

Investment policy

The governors have yet to devise a formal investment policy, due to not considering one to be necessary given that the only cash investments are the funds held within bank accounts. However, in the future an investment policy will be considered as a part of the Academy's financial strategy.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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Principal risks and uncertainties

Lighthouse Harmonize Education Trust takes a robust approach to managing risk and maintains a Risk Register to assess its activities and operational risks. This is reviewed on a termly basis.

The risk assessment register is a 'live' document which continually identifies risks and where necessary, agrees and puts in place measures of control and mitigation to manage risk. The Trust's strategic plan makes clear that it is unable to mitigate risks outside of its controls such as adverse economic circumstances.

The following categories are utilised in order that all risks, including the principal risks stated, are subject to governance via the appropriate committee:

 

The Academy Trust has put controls in place to address these risks:

The governors have assessed the major risks to which the Trust is exposed, in particular those related to the strategic planning, operation, finances and reputation of the Trust as well as compliance with legal and regulatory requirements. In as far as they are able, the governors are satisfied that they have put systems in place to identify potential risks and their impact and to mitigate exposure to major risks as well as ensuring changes to legislation are taken into consideration.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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The principal risks and uncertainties facing the charity, as identified by the charity trustees are listed below, along with a summary of their plans and strategies for managing those risks.

 

Risk and impact

Strategies/plans for management and mitigation

Loss of experience, skills and knowledge, including loss of a key member of staff or governance team

Operational impact on key projects and priorities through the loss of key skills from the Academy Trust

Succession planning is in place; systems are documented. Handover periods are agreed wherever possible. Staff are cross-trained to cover skills shortages. The school has a track record of developing staff internally.

Security of assets

Possible loss of assets

The AT has reviewed its assets security arrangements, logged its assets in a fixed asset register, implemented a rolling inspection programme and ensured it has adequate insurance cover.

Server crash or ransomware attack leading to loss or corruption of data.

The AT maintains multiple redundancy sets of data for recovery if required, including on-site systems and an enterprise grade cloud-based system maintained by an external provider. Internet content is filtered, and the Lightspeed Alerts System analyses what users are searching and typing and flags up any concerns.

Destruction of property, equipment or records through fire, flood or similar damage

The AT has a disaster recovery plan and insurance in place. It also has robust fire safety and other H&S inspection and maintenance regimes and preventative measures in place.

Non-compliance with GDPR and associated regulation.

A data breach combined with non-compliance with regulation would expose the Trust to financial sanctions and reputational harm.

A Data Asset Register is held to maintain control of Protected Data Assets.

A Data Protection Officer is appointed as a role within the Academy.

Training is conducted across the Academy at all levels.

An economic event outside of the AT’s control has an adverse impact on the AT, leading to loss or closure.

The risk register is a ‘live’ document updated for changes in legislation and funding.

The AT has a well thought out strategic plan so that if such a risk crystallises it is clear that the event was outside of its control.

Fundraising

The Arts and Community Committee in particular was tasked with the responsibility for initiating fundraising activities.

The following grants and donations were received during the year:

 

 

Harmonize Academy would like to thank all of the organisations and individuals who supported our educational activities this year.

 

During school holidays, Liverpool City Council distributed meals vouchers to families with children eligible for free school meals. We encouraged families who were not already receiving free school meals to apply via their local Council, if they believed they would be eligible.  We provided food parcels and vouchers for any families who were in need or struggling at Christmas.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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Plans for future periods

We have linked up with local authorities to open other AP Free Schools across the north west starting with Sefton, Knowsley and Salford to submit local authority presumption applications

The Improvement Plan sets the strategic direction and focus of the Academy for 2023 -2026. This will be reviewed annually as part of the monitoring and evaluation cycle.

 

The Improvement Plan has 4 priority areas which reflect the new Ofsted Inspection Framework (2019). Each priority area has identified Key Performance Indicators and success criteria which will be used by the leadership team to evaluate the Academy’s progress.

Auditor

In so far as the trustees are aware:

- there is no relevant audit information of which the charitable company's auditor is unaware; and

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

A resolution proposing that Mitchell Charlesworth (Audit) Limited be reappointed as auditor of the charitable company will be put to the members.

The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 18 December 2024 and signed on its behalf by:

Modupe Victoria Emrica Omideyi
Chair
LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
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Scope of responsibility

As trustees, we acknowledge we have overall responsibility for ensuring that Lighthouse Harmonize Education Trust has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the principal, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Lighthouse Harmonize Education Trust and the Secretary of State for Education. The Accounting Officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 4 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Trustees
Meetings attended
Out of possible
Modupe Victoria Emrica Omideyi (Chair)
4
4
Marie McConville (Principal)
4
4
Nobert Osemeke
4
4
Osoba Otaigbe
2
4
Rebecca Latus
3
4
Rebecca Jane Ross-Williams
3
4
Stephen Allen Harper
4
4
Anthony Lawson (Staff)
2
4

For details of governors’ appointments and resignations see page 1.

 

Governors’ training and development is a standing item on every full board agenda. New governors complete a skills audit at induction; this is used to identify initial training and development needs. Training needs, responsibilities and interests are reviewed on an ongoing basis, either as a group or one-to-one with the Chair.

 

Challenges which the Board faces include:

 

 

Conflicts of interest

Each meeting is preceded by a declaration of interest by each governor in attendance.

 

We maintain a register of business interests for governors, members and senior leaders which is updated annually and if a declaration is made during the year.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
Governance reviews

Quality of Education Committee

The Quality of Education Committee is a sub-committee of the main Governing Body. Its purpose is:

 

 

Attendance at meetings during the year was as follows:-

Trustee

Meetings attended

Out of a possible

Modupe Victoria Emrica Omideyi

3

3

Anthony Lawson

2

3

Marie McConville

Osoba Otaigbe

Rebecca Jane Ross-Williams

3

0

2

3

3

3

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -

Arts and Community Committee

The Arts and Community Committee is a sub-committee of the main Governing Body. It has been agreed that the Arts and Community Committee will not convene separately and that the business of this committee will be included as an item on the agenda of The Quality of Education Committee until further notice. Its purpose is:

 

In addition, the Free School has ad hoc Committees covering disciplinary and dismissal hearings and appeal hearings in respect of staff.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -

Finance and Resources Committee

The finance and resources committee is a sub-committee of the main board of trustees. Its purpose is to:

 

 

Finance:

 

 

HR

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -

Assets:

 

Disqualification:

Any relevant person employed to work at the school other than as the Principal, when the subject for consideration is the pay or performance review of any person employed to work at the school.

Attendance at meetings in the year was as follows:

Trustees
Meetings attended
Out of possible
Modupe Victoria Emrica Omideyi (Chair)
3
3
Marie McConville (Principal)
3
3
Nobert Osemeke
3
3
Rebecca Latus
2
3
Stephen Allen Harper
3
3
LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -

Audit Committee

The Audit Committee is a sub-committee of the main Governing Body. The terms quoted are those to which the Committee will operate to comply with the Academies Financial handbook and to include the Regularity audit. Its purpose is to:

Attendance at meetings in the year was as follows:

Trustees
Meetings attended
Out of possible
Modupe Victoria Emrica Omideyi (Chair)
3
3
Marie McConville (Principal)
3
3
Nobert Osemeke
3
3
Rebecca Latus
2
3
Stephen Allen Harper
3
3
Review of value for money

As accounting officer, the principal has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes, as well as estates safety and management, achieved in return for the taxpayer resources received.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -

The accounting officer considers how the Academy trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data or by using a framework where appropriate. The accounting officer for the Academy trust has delivered improved value for money during the year by:

 

A full Value for Money Statement can be found at http://www.harmonizeacademy.org/Value-for-Money

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Lighthouse Harmonize Education Trust for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts.

Capacity to handle risk

The board of trustees has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.

The risk and control framework

The academy trust's system of internal control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -

The board of trustees has decided to employ JD Education Finance Services as internal auditor.

 

Internal Control enables Academy Trusts to effectively and efficiently develop systems that adapt to changing business and operating environments, mitigate risks to acceptable levels, and support sound decision making and governance of the organisation. Designing and implementing an effective system of internal control can be challenging and with greater use and dependence on technology. The Internal Control Assessor applies judgment as they monitor and assess the effectiveness of the system of internal control. The internal auditor's role includes giving advice on financial and other matters and performing a range of checks on the academy trust's financial and other systems.

The audit consisted of a high-level compliance review of the key controls in place in relation to the School's finance function. The consistent application of key controls across the School's main financial processes provides on-going assurance over the financial management of the organisation. The Internal auditor's role is in line with the ESFA's requirement included giving advice on financial matters and performing a range of checks on the school's financial systems. In particular the key control areas tested in the current period included:

 

•    Bank reconciliations

•    Cash flows

•    Petty cash

•    Personnel Files / Payroll

•    Amendments to payroll

•    Creditors/Debtors

•    Income

•    Purchasing

•    Purchase card transactions

•    Month end procedures

•    Trial Balance

The trustees have agreed a programme of internal scrutiny for the Trust. The Academy had 3 visits during financial year 2023-24. These occurred in January, May and September. On a termly basis, the internal auditor reports to the board of trustees through the audit and risk committee on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees, and annually prepares an annual summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.

 

Three internal financial assurance and one internal scrutiny report were completed for the year and no material control or other issues were reported.

The Academy trust confirms that the internal auditor has delivered their schedule of work as planned. No significant control issues arose as a result of the internal auditor’s work and remedial action has been taken to rectify minor issues raised.

Review of effectiveness

As accounting officer, the principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:

 

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
Conclusion

Based on the advice of the audit and risk committee and the accounting officer, the board of trustees is of the opinion that the academy trust has an adequate and effective framework for governance, risk management and control.

Approved by order of the board of trustees on 18 December 2024 and signed on its behalf by:

Modupe Victoria Emrica Omideyi
Marie McConville
Chair
Principal
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -

As accounting officer of Lighthouse Harmonize Education Trust, I have considered my responsibility to notify the academy trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding, including for estates safety and management, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academy Trust Handbook 2023, including responsibilities for estates safety and management.

I confirm that I and the academy trust's board of trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academy Trust Handbook 2023.

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA.

Marie McConville
Accounting Officer
18 December 2024
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -

The trustees (who are also the directors of Lighthouse Harmonize Education Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2023 to 2024 published by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare accounts for each financial year. Under company law, the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period.

 

In preparing these accounts, the trustees are required to:

 

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

The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/DfE have been applied for the purposes intended.

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

Approved by order of the members of the board of trustees on 18 December 2024 and signed on its behalf by:

Modupe Victoria Emrica Omideyi
Chair
LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -

Opinion

We have audited the accounts of Lighthouse Harmonize Education Trust for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the accounts, 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), the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency.

In our opinion the accounts:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

-

have been prepared in accordance with the requirements of the Companies Act 2006; and

-

have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024.

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 accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the academy trust’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 other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts 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 accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts 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 the audit:

-

the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and

-

the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the accounts are not in agreement with the accounting records and returns; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the academy's Statement of Financial Activities, (ii) revenue recognition (iii) the overstatement of salary and other costs (iv) the assumptions used in the calculation of the valuation of the surplus or deficit on the defined benefit pension scheme and the movements for the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body, along with the Academies Financial Handbook and Accounts direction.

 

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 may be fundamental to the academy’s ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection and Safeguarding.

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 35 -
Audit response to risks identified

As a result of performing the above, we identified the presentation of the academy's Statement of Financial Activities, revenue recognition and overstatement of wages and other costs as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -

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.

Philip Griffiths (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth (Audit) Limited
18 December 2024
Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LIGHTHOUSE HARMONIZE EDUCATION TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2024
- 37 -

In accordance with the terms of our engagement letter dated 31 August 2024 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2023 to 2024, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Lighthouse Harmonize Education Trust during the period 1 September 2023 to 31 August 2024 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.

 

This report is made solely to Lighthouse Harmonize Education Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Lighthouse Harmonize Education Trust and ESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lighthouse Harmonize Education Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Lighthouse Harmonize Education Trust's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Lighthouse Harmonize Education Trust’s funding agreement with the Secretary of State for Education dated 31 March 2016 and the Academy Trust Handbook, extant from 1 September 2023, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance, and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2023 to 2024. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Approach

We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.

The work undertaken to draw to our conclusion includes:

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LIGHTHOUSE HARMONIZE EDUCATION TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

Reporting Accountant
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
Dated: 18 December 2024
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 39 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2024
2023
Notes
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
-
8
8
47
Charitable activities:
- Funding for educational operations
4
-
3,185
-
3,185
3,068
Investments
5
3
-
-
3
3
Total
3
3,185
8
3,196
3,118
Expenditure on:
Charitable activities:
- Educational operations
7
-
3,304
79
3,383
3,067
Total
6
-
3,304
79
3,383
3,067
Net income/(expenditure)
3
(119)
(71)
(187)
51
Transfers between funds
14
-
(78)
78
-
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
16
-
4
-
4
220
Adjustment for restriction on pension assets
16
-
(86)
-
(86)
-
Net movement in funds
3
(279)
7
(269)
271
Reconciliation of funds
Total funds brought forward
3
470
2,390
2,863
2,592
Total funds carried forward
6
191
2,397
2,594
2,863
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 40 -
Comparative year information
Unrestricted
Restricted funds:
Total
Year ended 31 August 2023
funds
General
Fixed asset
2023
Notes
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
1
46
47
Charitable activities:
- Funding for educational operations
4
-
3,068
-
3,068
Investments
5
3
-
-
3
Total
3
3,069
46
3,118
Expenditure on:
Charitable activities:
- Educational operations
7
-
2,974
93
3,067
Total
6
-
2,974
93
3,067
Net income/(expenditure)
3
95
(47)
51
Transfers between funds
14
-
(247)
247
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
16
-
220
-
220
Net movement in funds
3
68
200
271
Reconciliation of funds
Total funds brought forward
-
402
2,190
2,592
Total funds carried forward
3
470
2,390
2,863
LIGHTHOUSE HARMONIZE EDUCATION TRUST
BALANCE SHEET
AS AT 31 AUGUST 2024
- 41 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
2,397
2,390
Current assets
Debtors
12
86
79
Cash at bank and in hand
179
475
265
554
Current liabilities
Creditors: amounts falling due within one year
13
(68)
(140)
Net current assets
197
414
Net assets excluding pension asset
2,594
2,804
Defined benefit pension scheme asset
16
-
59
Total net assets
2,594
2,863
Funds of the academy trust:
Restricted funds
14
- Fixed asset funds
2,397
2,390
- Restricted income funds
191
411
- Pension reserve
-
59
Total restricted funds
2,588
2,860
Unrestricted income funds
14
6
3
Total funds
2,594
2,863

The accounts on pages 39 to 60 were approved by the trustees and authorised for issue on 18 December 2024 and are signed on their behalf by:

Modupe Victoria Emrica Omideyi
Chair
Company registration number 07657235 (England and Wales)
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 42 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash (used in)/provided by operating activities
17
(220)
146
Cash flows from investing activities
Dividends, interest and rents from investments
3
3
Capital grants from DfE Group
8
46
Purchase of tangible fixed assets
(87)
(294)
Proceeds from sale of tangible fixed assets
-
1
Net cash used in investing activities
(76)
(244)
Net decrease in cash and cash equivalents in the reporting period
(296)
(98)
Cash and cash equivalents at beginning of the year
475
573
Cash and cash equivalents at end of the year
179
475
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 43 -
1
Accounting policies

Lighthouse Harmonize Education Trust is a charitable company limited by guarantee. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the trustees' report.

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

1.1
Basis of preparation

The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), 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) (Charities SORP (FRS 102)), the Academies Accounts Direction 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

 

Lighthouse Harmonize Education Trust meets the definition of a public benefit entity under FRS 102.

 

The financial statements are presented in sterling which is also the functional currency of the academy trust.

 

Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated.

1.2
Going concern

The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

 

At the balance sheet date the Academy had net assets of £2.60m (2023: £2.86m) after providing for long term pension scheme commitments of £nil (asset position) (2023: £59k asset) in respect of the support staff defined benefit pension scheme and had net current assets of £197k (2023: £414k).

 

The trustees have reviewed and approved budgets and cashflow forecasts for 2024/25 and future years and consider in the light of this review that it is appropriate to prepare the financial statements on a going concern basis.

1.3
Income

All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Grants

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 44 -

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.

Sponsorship income

Sponsorship income provided to the academy trust which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable (where there are no performance-related conditions), where the receipt is probable and it can be measured reliably.

Donations

Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.

Other income

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.

1.4
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds

This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Charitable activities

These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.

1.5
Tangible fixed assets and depreciation

Assets costing £500 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

 

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. Where there are specific conditions attached to the funding that require the continued use of the asset, the related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 45 -

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

Leasehold Land and Buildings
125 years straight line
Leasehold improvements
2% straight line
Computer equipment & software
20-33% straight line
Fixtures, fittings & equipment
5-10% straight line
Motor vehicles
10% straight line

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

1.6
Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.

1.7
Leased assets

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

1.8
Financial instruments

The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.

Financial assets

Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

 

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities

Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

 

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

1.9
Taxation

The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 46 -
1.10
Pensions benefits

Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.

The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust 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. The 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 are 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 or 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.

1.11
Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.

Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the [Department for Education Group].

2
Critical accounting estimates and areas of judgement

Accounting 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 academy trust 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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Critical accounting estimates and areas of judgement
(Continued)
- 47 -

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 or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 16, 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 2019 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.

 

FRS 102 section 28.22 allows an entity to recognise a surplus within the Local Government Pension Scheme “only to the extent it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan”. The actuarial report as at 31 August 2024 indicates a defined benefit asset position. A calculation has been done to compare the surplus to the present value of future service costs, only where the surplus is lower has the asset position been recognised. This is on the basis that a surplus following the triennial review would result in the employer being able to reduce contributions, much like a shortfall would result in increased contributions.

3
Donations and capital grants
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£'000
£'000
£'000
£'000
Capital grants
-
8
8
46
Other donations
-
-
-
1
-
8
8
47
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 48 -
4
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£'000
£'000
£'000
£'000
DfE/ESFA grants
General annual grant (GAG)
-
1,554
1,554
1,551
Other DfE/ESFA grants:
- Pupil premium
-
16
16
21
- Others
-
17
17
26
-
1,587
1,587
1,598
Other government grants
Local authority grants
-
256
256
325
Special educational projects
-
277
277
100
-
533
533
425
Other incoming resources
-
1,065
1,065
1,045
Total funding
-
3,185
3,185
3,068
5
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£'000
£'000
£'000
£'000
Short term deposits
3
-
3
3
6
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£'000
£'000
£'000
£'000
£'000
Academy's educational operations
- Direct costs
2,251
-
225
2,476
2,154
- Allocated support costs
433
221
253
907
913
2,684
221
478
3,383
3,067
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Expenditure
(Continued)
- 49 -
Net income/(expenditure) for the year includes:
2024
2023
£'000
£'000
Operating lease rentals
6
24
Depreciation of tangible fixed assets
79
81
Loss on disposal of fixed assets
-
12
Fees payable to auditor for:
- Audit
9
8
- Other services
3
2
Net interest on defined benefit pension liability
(6)
4
7
Charitable activities
2024
2023
All from restricted funds:
£'000
£'000
Direct costs
Educational operations
2,476
2,154
Support costs
Educational operations
907
913
3,383
3,067
2024
2023
£'000
£'000
Analysis of support costs
Support staff costs
433
434
Depreciation
79
93
Technology costs
18
15
Premises costs
142
146
Legal costs
1
4
Other support costs
149
153
Governance costs
85
68
907
913
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 50 -
8
Staff
Staff costs and employee benefits
Staff costs during the year were:
2024
2023
£'000
£'000
Wages and salaries
2,099
1,893
Social security costs
209
176
Pension costs
376
330
Staff costs - employees
2,684
2,399
2,684
2,399
Staff development and other staff costs
22
16
Total staff expenditure
2,706
2,415
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2024
2023
Number
Number
Teachers
22
22
Administration and support
35
38
Management
5
5
62
65
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2024
2023
Number
Number
£60,001-£70,000
3
3
£70,001-£80,000
-
1
£80,001-£90,000
1
-
£90,001-£100,000
-
1
£100,001-£110,000
1
-
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Staff
(Continued)
- 51 -
Key management personnel

The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. The total amount of key management personnel employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £531,562 (2023: £491,973).

9
Trustees' remuneration and expenses

One or more of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The principal and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of principal and staff members under their contracts of employment, and not in respect of their services as trustees.

 

The value of trustees' remuneration and other benefits was as follows:

 

M McConville (Principal and trustee):

 

Remuneration - £100,001 - £105,000 (2023: £90,001 - £95,000)

Employer’s pension contributions paid - £25,001 - £30,000 (2022: 20,001 - £25,000)

 

A Lawson (staff governor and trustee):

 

Remuneration - £45,001 - £50,000 (2023: £40,001 - £45,000)

Employer’s pension contributions paid - £5,000 - £10,000 (2023: £0 - £5,000)

 

During the period ended 31 August 2024, travel and subsistence expenses totalling £nil were

reimbursed or paid directly to 1 trustee (2023: £56 to 1 trustee)

10
Trustees' and officers' insurance

In accordance with normal commercial practice, the academy trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £10 million (2023 £10 million) on any one claim and the cost for the year ended 31 August 2024 was £3,450 (2023: £3,150). The cost of this insurance is included in the total insurance cost.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 52 -
11
Tangible fixed assets
Leasehold Land and Buildings
Leasehold improvements
Computer equipment & software
Fixtures, fittings & equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 September 2023
1,683
966
216
167
19
3,051
Transfer
(214)
214
-
-
-
-
Additions
-
67
4
9
7
87
Disposals
-
-
(8)
-
-
(8)
At 31 August 2024
1,469
1,247
212
176
26
3,130
Depreciation
At 1 September 2023
246
150
177
87
1
661
Transfer
(20)
20
-
-
-
-
On disposals
-
-
(8)
-
-
(8)
Charge for the year
23
25
16
12
4
80
At 31 August 2024
249
195
185
99
5
733
Net book value
At 31 August 2024
1,220
1,052
27
77
21
2,397
At 31 August 2023
1,437
816
39
80
18
2,390
12
Debtors
2024
2023
£'000
£'000
Trade debtors
-
12
VAT recoverable
1
7
Prepayments and accrued income
85
60
86
79
13
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Trade creditors
1
-
Other taxation and social security
48
47
Accruals and deferred income
19
93
68
140
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 53 -
14
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
411
1,554
(1,696)
(78)
191
Pupil premium
-
16
(16)
-
-
Other DfE/ESFA grants
-
17
(17)
-
-
Other government grants
-
533
(533)
-
-
Other restricted funds
-
1,065
(1,065)
-
-
Pension reserve
59
-
23
(82)
-
470
3,185
(3,304)
(160)
191
Restricted fixed asset funds
LCC Lease
1,288
-
(23)
-
1,265
DfE group capital grants
689
8
(53)
-
644
Capital expenditure from GAG
413
-
(3)
78
488
2,390
8
(79)
78
2,397
Total restricted funds
2,860
3,193
(3,383)
(82)
2,588
Unrestricted funds
General funds
3
3
-
-
6
Total funds
2,863
3,196
(3,383)
(82)
2,594

General Annual Grant must be used for the normal running costs of the Academy. Under the funding agreement with the Secretary of State, the free school was not subject to a limit on the amount of GAG that it could carry forward at 31st August 2016.

 

EFA Lead in Grant and other EFA grants. These have been received for specific purposes throughout the year and include pupil premium and the lead in grant which was fully spent in the year.

 

Local Authority Grants consist of various support grants received from Liverpool City Council and other schools, for which pupils have been transferred to LHET.

 

EFA Capital Grant for the building renovation and infrastructure. Depreciation of assets capitalised is to be matched against this income in line with accounting policy.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
14
Funds
(Continued)
- 54 -
Comparative information in respect of the preceding period is as follows:
Balance at
Gains,
Balance at
1 September
losses and
31 August
2022
Income
Expenditure
transfers
2023
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
531
1,551
(1,424)
(247)
411
Pupil premium
-
21
(21)
-
-
Other DfE/ESFA grants
-
26
(26)
-
-
Other government grants
-
425
(425)
-
-
Other restricted funds
-
1,046
(1,046)
-
-
Pension reserve
(129)
-
(32)
220
59
402
3,069
(2,974)
(27)
470
Restricted fixed asset funds
LCC Lease
1,311
-
(22)
-
1,289
DfE group capital grants
712
46
(69)
-
689
Capital expenditure from GAG
167
-
(2)
247
412
2,190
46
(93)
247
2,390
Total restricted funds
2,592
3,115
(3,067)
220
2,860
Unrestricted funds
General funds
-
3
-
-
3
Total funds
2,592
3,118
(3,067)
220
2,863
15
Analysis of net assets between funds
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2024 are represented by:
Tangible fixed assets
-
-
2,397
2,397
Current assets
6
259
-
265
Current liabilities
-
(68)
-
(68)
Total net assets
6
191
2,397
2,594
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
15
Analysis of net assets between funds
(Continued)
- 55 -
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
2,390
2,390
Current assets
3
551
-
554
Current liabilities
-
(140)
-
(140)
Pension scheme asset
-
59
-
59
Total net assets
3
470
2,390
2,863
16
Pension and similar obligations

The academy trust'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. Both are multi-employer defined benefit schemes.

 

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

There were no outstanding or prepaid contributions at either the beginning or end of the financial year.

Teachers' Pension Scheme
Introduction

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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Pension and similar obligations
(Continued)
- 56 -
Valuation of the Teachers' Pension Scheme

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, has been implemented from 1 April 2024.

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, is due to be implemented from 1 April 2024.

The employer's pension costs paid to the TPS in the period amounted to £204,647 (2023: £177,120).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

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 in FRS 102 and has 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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Pension and similar obligations
(Continued)
- 57 -
Local Government Pension Scheme

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The employer contribution rate is 19.0% until 31 March 2026. The employee contribution rates start at 5.5% increasing to 12.5% depending on earnings.

 

As the scheme is in deficit the academy trust has entered into an agreement with the scheme trustees to make additional contributions of £45,100 per year in 2023/24 in addition to normal funding levels. These additional contributions are expected to continue for the foreseeable future.

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

Total contributions made
2024
2023
£'000
£'000
Employer's contributions
113
93
Employees' contributions
37
32
Total contributions
150
125
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
4.1
4.3
Rate of increase for pensions in payment/inflation
2.7
2.9
Discount rate for scheme liabilities
5.0
5.4
Inflation assumption (CPI)
2.6
2.8
The current mortality assumptions include sufficient allowance for future improvements in mortality rates.  The assumed life expectations on retirement age 65 are:
2024
2023
Years
Years
Retiring today
- Males
20.8
20.8
- Females
23.4
23.3
Retiring in 20 years
- Males
22
22.1
- Females
25.1
25.1
Sensitivity analysis

Scheme liabilities would have been affected by changes in assumptions as follows:

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Pension and similar obligations
(Continued)
- 58 -
2024
2023
£'000
£'000
Discount rate + 0.1%
-21
-18
Discount rate - 0.1%
22
18
Mortality assumption + 1 year
29
23
Mortality assumption - 1 year
-28
-22
CPI rate + 0.1%
22
18
CPI rate - 0.1%
-21
-17
The academy trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£'000
£'000
Equities
698
564
Government bonds
63
62
Other bonds
22
20
Cash/Liquidity
20
12
Property
148
130
Other assets
361
297
Total market value of assets
1,312
1,085
Restriction on scheme assets
(86)
-
Net assets recognised
1,226
1,085
The actual return on scheme assets was £99,000 (2023: £20,000).
Amount recognised in the statement of financial activities
2024
2023
£'000
£'000
Current service cost
93
118
Interest income
(62)
(44)
Interest cost
56
48
Administration expenses
3
3
Total amount recognised
90
125

The net gain recognised on scheme assets has been restricted because the full pension surplus is not expected to be recovered through refunds or reduced contributions in the future.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Pension and similar obligations
(Continued)
- 59 -
Changes in the present value of defined benefit obligations
2024
£'000
At 1 September 2023
1,026
Current service cost
93
Interest cost
56
Employee contributions
37
Actuarial loss/(gain)
33
Benefits paid
(19)
At 31 August 2024
1,226
Changes in the fair value of the academy trust's share of scheme assets
2024
£'000
At 1 September 2023
1,085
Interest income
62
Actuarial (gain)/loss
37
Employer contributions
113
Employee contributions
37
Benefits paid
(19)
Effect of non-routine settlements and administration expenses
(3)
At 31 August 2024
1,312
Restriction on scheme assets
(86)
Net assets recognised
1,226
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 60 -
17
Reconciliation of net (expenditure)/income to net cash flow from operating activities
2024
2023
Notes
£'000
£'000
Net (expenditure)/income for the reporting period (as per the statement of financial activities)
(187)
51
Adjusted for:
Capital grants from DfE and other capital income
(8)
(46)
Investment income receivable
5
(3)
(3)
Defined benefit pension costs less contributions payable
16
(17)
28
Defined benefit pension scheme finance (income)/cost
16
(6)
4
Depreciation of tangible fixed assets
80
81
Loss on disposal of fixed assets
-
12
(Increase) in debtors
(7)
(22)
(Decrease)/increase in creditors
(72)
41
Net cash (used in)/provided by operating activities
(220)
146
18
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£'000
£'000
£'000
Cash
475
(296)
179
19
Related party transactions

Owing to the nature of the free school’s operations and the composition of the Board of Governors being drawn from local public and private sector organisations, transactions may take place with organisations in which the trust has an interest. All transactions involving the such organisations are conducted at arm’s length and in accordance with the free school’s financial regulations and normal procurement procedures.

 

No related party transactions took place in the period of account other than certain trustees' remuneration and expenses already disclosed in notes 9 and 10.

20
Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.

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