Company registration number 07657235 (England and Wales)
LIGHTHOUSE HARMONIZE EDUCATION TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2025
31 August 2025
LIGHTHOUSE HARMONIZE EDUCATION TRUST
CONTENTS
Page
Reference and administrative details
1 - 2
Trustees' report
3 - 22
Governance statement
23 - 30
Statement of regularity, propriety and compliance
31
Statement of trustees' responsibilities
32
Independent auditor's report on the financial statements
33 - 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 financial statements including accounting policies
43 - 60
LIGHTHOUSE HARMONIZE EDUCATION TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
Elsie Hogan-Edem
Alembari Aadum
Liverpool Lighthouse Limited, represented by Helen Hawley
Love and Joy Ministries Ltd, (Tanidabi Omideyi resigned as representative 17 October 2023)
Modupe Omideyi
Isoken Terry Andrew-Okunzuwa
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
- School Business Manager
Lyn Roberts (appointed 13 November 2024)
- School Business Manager
Denise McNeil (resigned 12 November 2024)
Company registration number
07657235 (England and Wales)
Registered office
7 Phillimore Road
Liverpool
Merseyside
L6 6DL
Independent auditor
Mitchell Charlesworth (Audit) Limited
Suites C,D,E, & F
14th Floor The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
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 2025
- 3 -

The trustees present their annual report together with the financial statements and auditor's report of the charitable company for the year 1 September 2024 to 31 August 2025. 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 136 on the school census in May 2025 and 151 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 financial statements 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 for 2025 (2024: £10 million) on any one claim and the cost for the year ended 31 August 2025 was £3,750 (2024 £3,450).

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 2025
- 4 -
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 Academy 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 2024/25 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 2025
- 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. In May 2025, the Academy retained its ‘Outstanding’ judgement for the third consecutive time—an exceptional achievement and one attained by very few secondary schools, particularly within the Alternative Provision (AP) Free School sector. The Academy’s record of three consecutive Outstanding judgements highlights the sustained excellence and consistency of its provision.

 

From September 2021, the Academy officially increased the number of students from 104 to 150. The expansion was expertly overseen by the Principal. The additional classrooms and learning spaces have now been fully integrated into the curriculum and timetable, and the increased student population has been absorbed seamlessly 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 Liverpool Association of Secondary Headteachers. 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, 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 highly successful year under the leadership and guidance of its Principal, who has twenty-three years of experience in the sector and is now in her eighth year as Principal. She is widely respected for her vision and delivery of opportunities for young people who have fallen out of mainstream schooling. As the Academy enters its thirteenth year of operation, it continues to deliver outstanding outcomes and maintain the strong Christian ethos, vision and values that are reflected in the positive relationships between students and staff. Growth has been managed effectively both in terms of pupil numbers and the development of additional classrooms and learning spaces, while strengthening the Academy’s budgetary position and financial resilience.

 

Students have benefited from an enhanced curriculum provision that engages and promotes academic success. The expansion has allowed additional staff to be employed and has enabled internal progression into leadership positions. CPD remains a critical component in ensuring high-quality teaching and staff retention. Many staff have developed their careers at the school, including teaching assistants who have qualified as teachers and teachers who have gained leadership qualifications and promotion. Staff value the high level of support offered by senior leaders. While the recent application to open a new school was not successful, the Trust is actively exploring other opportunities to work directly with local authorities, beginning with Sefton, Knowsley and Manchester.

 

Student numbers continue to meet and exceed targets, and the school remains highly valued locally and across the wider city region for the opportunities it provides. The curriculum continues to expand, offering qualifications such as art, photography, statistics, psychology and the LAMDA oracy qualification. A key focus this year has been to strengthen both individual and combined outcomes in English and Mathematics. Mathematical achievement significantly exceeded its target for the first time, and the combined outcome increased to 11.5%, up from 10% the previous year. The School Improvement Plan for 2025–26 will now prioritise English, complementing the successful work in Mathematics by offering a Level 2 Functional Skills qualification in English alongside the GCSE.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 6 -

Literacy has been significantly strengthened through the creation of a designated reading area and a whole-school commitment to promoting reading and oracy. Ofsted noted that “reading has a high profile” at the Academy, with pupils having opportunities to develop their reading across the school. Inspectors highlighted that those at the early stages of learning to read receive highly effective support from trained staff, enabling them to catch up quickly. Pupils enjoy reading for pleasure and are developing increasing confidence and fluency, which in turn enhances their performance across the wider curriculum.

 

Many pupils have not attended their previous schools regularly. However, once pupils start here, their attendance improves significantly. Attendance currently stands at 75%, exceeding the AP sector average by 15%. Students, parents/carers and commissioners consistently view the Academy as a safe, nurturing environment where behaviour standards are prioritised to support learning. Ofsted reported that “pupils are given a fresh start at this nurturing school” and that staff “cultivate highly positive and trusting relationships with pupils.” Inspectors noted that pupils are treated with fairness and respect and that “pupils’ behaviour is exceptional.” The quality of teaching is regularly reviewed and continues to show high-quality, outstanding practice that enables students to make exceptional progress.

 

The 2024/2025 academic year saw the Academy achieve its best examination results to date, further reinforcing the effectiveness of the curriculum and teaching. Students continue to progress successfully into college, apprenticeships, training and employment, supported by the “Move On Move Up” programme. Move On supports year 11 leavers as they move on to further education, employment and training and Move Up is a thriving alumni initiative which brings former students back as guest speakers, tutors and mentors. The programme has been highly successful in inspiring current students to pursue their own ambitions and, in turn, become successful alumni mentors themselves—creating a powerful cycle of aspiration, achievement and ongoing support. The Academy has also welcomed a number of high-profile visits this year, including the Lord Mayor of Liverpool and representatives from its German partner school.

 

Staff turnover remains very low, indicating a healthy, supportive and stable organisation. CPD is available to all staff and is integral to maintaining the high standards for which the Academy is known. Staff feel very well supported in relation to their well-being and workload, and they report high morale and strong teamwork across the Academy.

 

Governors and Senior Team Leaders agree that the Academy’s ethos and values of trust, respect, compassion and forgiveness are evident throughout the school. Definitions have now been established for each value and these are communicated by every means possible - through induction of new staff, induction of new leaders and governors, signage (outside and around the school), documentation, website, and presentations. There is clarity about what our values mean and what the expectations are. Our values are demonstrated by staff through symbolic conduct in their everyday interactions with colleagues and students. This develops the moral character of our students and staff going forward.

 

Finally, the Principal, working in partnership with governors and staff, continues to provide life-changing opportunities for the young people placed at Harmonize Academy. She has created a culture of shared beliefs and values expressed through policies and practices that underpin daily operations. The Academy offers an environment that nurtures young people emotionally, spiritually and academically, enabling them to move forward positively and achieve their full potential. Trustees are passionately committed to the ethos of the school. They are highly effective at supporting and holding the school to account. This has supported the school exceptionally well in maintaining and improving standards. Trustees ensure that the decisions they make are always in the best interest of pupils. The Academy enters the next year stronger than ever and committed to continued excellence.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
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LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 8 -
LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 9 -
LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 10 -

Outcomes for SEND and LAC students were also strong:

 

Given the challenging circumstances many students face prior to referral, these outcomes represent rapid and highly positive progress from their starting points.

 

Attendance

 

Attendance is good and improving, especially when contextualising prior student performance in this area. Achieved 75% attendance which is 15% above national rate for schools in similar circumstances. Ofsted noted in May 2025 that ‘Many pupils have not attended their previous school regularly. However once pupils start here, their attendance improves significantly.’ 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

 

 

Harmonize Productions:

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 11 -
LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 12 -
LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 13 -

Partnerships

 

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

 

 

VIP and Education Visitors and Events 2024-25

 

 

Regular Individual Facilitators:

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 14 -

The following schools placed students at Harmonize Academy during 2024-25:

The Alsop High School, Archbishop Beck Catholic College, Bank View High School, Bellerive FCJ Catholic College, The Belvedere Academy, Birkenhead High School Academy,Broughton Hall High School, Calderstones School, Cardinal Heenan Catholic High School, Childwall Sports & Science Academy, Deyes High School, Dixons Broadgreen Academy, Dixons Fazakerley Academy, Gateacre School, The Grange Academy, Halewood Academy, Helsby High School, Holly Lodge Girls’ College, Holy Family Catholic High School, King’s Leadership Academy Hawthornes, Kings Leadership Liverpool, Kirkby High School, Liverpool College, LIPA, Lord Derby Academy, Maghull High School, North Liverpool Academy, Notre Dame Catholic College, Ormiston Chadwick Academy, The Prescot School, Sacred Heart Catholic Academy, St Edmund Arrowsmith Catholic Academy, St Edward’s College, The Academy of Saint Francis of Assisi, St Francis Xavier’s College, St John Bosco Arts College, St Julie’s Catholic High School, St Margaret’s CE Academy, St Michael’s CE Academy, The Academy of St Nicholas, The Studio School Liverpool, Wade Deacon High School, West Derby School, Whitby High School.

The following Local Authorities placed students at Harmonize Academy during 2024-25:

Liverpool City Council Alternative Provision Team, Liverpool SEN, Liverpool Virtual School, Knowsley Council.

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 as the achieve the following outcomes.

1. Establishes good relationships between school and parents/carers

2. Evaluates progress made by students

3. Allows feedback to parents/carers and staff

4. Allows parents/carers to express their views which is then fed into the quality of education strategy

We received many positive comments including the following:

A selection of comments from parents, carers and students during 2024-25:

Feedback from Parents/Carers

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 15 -

 

Feedback and highlights from students

 

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 16 -

 

The following feedback is from others

 

 

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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 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 financial statements. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.

 

Key performance indicators

The Academy identified a set of Key Performance Indicators (KPIs) aligned to the aims and objectives in the School Improvement Plan. These KPIs were used to monitor progress and evaluate the success of actions taken across leadership, teaching, behaviour, attendance and student outcomes. Core priorities included maintaining outstanding leadership and governance, ensuring robust self-evaluation, and continuing to secure excellent provision for all students.

For 2024–25, the Trust monitored four overarching KPIs:

 

  1. Ofsted rating

  2. Student roll target of 150

  3. Examination results and academic progress

  4. Outstanding financial management

 

Targets for 2024–25

 

1. Student Roll

2. Attendance

3. Attainment

4. Behaviour

5. Academic Progress

6. Teaching and Learning

7. Leadership & Management

Community and Development Priorities

Training Requirements

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 18 -
Financial review

The Trust’s main income is received from the Department of Education (formerly the Education and Skills Funding Agency (ESFA)). 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 2025 is £101k (2024 £187k) after depreciation and amortisation charges of £81k (2024 £79k).

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 £123k deficit (2024 £269k).

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 DfE payments, emergencies and other catastrophes. This is sound commercial practice designed to safeguard the quality of education received at the Trust.

In 2025, the value of restricted general reserves is £38k (2024: £191k), unrestricted general reserves is £7k (2024 £6k) and restricted fixed asset reserves is £2,425k (2024: £2,397k).

 

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 (2024 £nil) and this has a neutral 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 2025
- 19 -
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 2025
- 20 -

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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 21 -
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.

 

Students and staff also raised £500 for local charities through awareness raising activities.

Plans for future periods

 

The Improvement Plan sets the strategic direction and focus of the Academy for 2023 -2026. A key area of work will be to map our current self-evaluation (SEF) and strategic plan onto the new Ofsted Inspection Framework (2025), identify any gaps, set priorities, and produce a revised school improvement plan (SIP) with clear milestones and monitoring for each area.

We will invest in staff and governor development so that all understand the new inspection landscape.

We will continue to work to maintain our outstanding standards.

We will continue to seek links with other local authorities across the north west to submit local authority presumption applications to open further AP Free Schools, and convert Harmonize Academy into a MAT.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 22 -
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 15 December 2025 and signed on its behalf by:

Modupe Victoria Emrica Omideyi
Chair
LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2025
- 23 -
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
3
4
Osoba Otaigbe
2
4
Rebecca Latus
2
4
Rebecca Jane Ross-Williams
1
4
Stephen Allen Harper
2
4
Anthony Lawson (Staff)
4
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 2025
- 24 -

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

3

3

Marie McConville

Osoba Otaigbe

Rebecca Jane Ross-Williams

3

0

1

3

3

3

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 25 -

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 2025
- 26 -

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

 

Assets

 

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 27 -

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

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:

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 28 -

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.

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 2024 to 31 August 2025 and up to the date of approval of the annual report and financial statements.

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 2024 to 31 August 2025 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 29 -
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:

 

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

•    Limits of Authorisation

•    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 2024-25. 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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 30 -
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.

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 15 December 2025 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 2025
- 31 -

As accounting officer of Lighthouse Harmonize Education Trust, I confirm that I have had due regard to the framework of authorities governing regularity, propriety and compliance, including the trust’s funding agreement with the Department for Education (DfE), and the requirements of the Academy Trust Handbook, including responsibilities for estates safety and management. I have also considered my responsibility to notify the academy trust board of trustees and DfE of material irregularity, impropriety and non-compliance with terms and conditions of all funding, including for estates safety and management.

I confirm that I and the board of trustees are able to identify any material irregular or improper use of all funds by the academy trust, or material non-compliance with the framework of authorities.

I confirm that no instances of material irregularity, impropriety or 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 DfE.

Marie McConville
Accounting Officer
15 December 2025
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2025
- 32 -

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 financial statements in accordance with the Academies Accounts Direction 2024 to 2025 published by the Department for Education, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements 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 financial statements, 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 financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on 15 December 2025 and signed on its behalf by:

Modupe Victoria Emrica Omideyi
Chair
LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST
FOR THE YEAR ENDED 31 AUGUST 2025
- 33 -

Opinion

We have audited the financial statements of Lighthouse Harmonize Education Trust for the year ended 31 August 2025 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 2024 to 2025 issued by the Department for Education.

In our opinion the financial statements:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2025 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 2024 to 2025.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the financial statements' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 34 -
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 financial statements are prepared is consistent with the financial statements; and

-

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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.

-

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

-

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

-

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

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

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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 financial statements

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

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

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 35 -
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:

 

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 Trust 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.

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.

LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF LIGHTHOUSE HARMONIZE EDUCATION TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 36 -

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.

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, Statutory Auditor
Accountants
Suites C,D,E, & F
14th Floor The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
15 December 2025
LIGHTHOUSE HARMONIZE EDUCATION TRUST
INDEPENDENT REPORTING ACCOUNTANT'S REPORT ON REGULARITY TO LIGHTHOUSE HARMONIZE EDUCATION TRUST AND THE SECRETARY OF STATE FOR EDUCATION
FOR THE YEAR ENDED 31 AUGUST 2025
- 37 -

In accordance with the terms of our engagement letter dated 31 August 2024 and further to the requirements of the Department for Education (DfE) as included in the extant Framework and Guide for External Auditors and Reporting Accountants of Academy Trusts, we have carried out an engagement to obtain limited assurance about whether anything has come to our attention that would suggest, in all material respects, the expenditure disbursed and income received by Lighthouse Harmonize Education Trust during the period 1 September 2024 to 31 August 2025 have not been applied to the purposes intended by Parliament and that the financial transactions do not conform to the authorities which govern them.

 

This report is made solely to Lighthouse Harmonize Education Trust and the Secretary of State for Education in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Lighthouse Harmonize Education Trust and the Secretary of State for Education 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 the Secretary of State for Education, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of the accounting officer of Lighthouse Harmonize Education Trust 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 and the Academy Trust Handbook, 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 extant Framework and Guide for External Auditors and Reporting Accountants of Academy Trusts. 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 2024 to 31 August 2025 have not been applied for the 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 the DfE, which requires a limited assurance engagement as set out 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 REPORT ON REGULARITY TO LIGHTHOUSE HARMONIZE EDUCATION TRUST AND THE SECRETARY OF STATE FOR EDUCATION (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 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 2024 to 31 August 2025 has not been applied for the purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Reporting Accountant
Mitchell Charlesworth (Audit) Limited
Suites C,D,E, & F
14th Floor The Plaza
100 Old Hall Street
Liverpool
L3 9QJ
15 December 2025
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025
- 39 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2025
2024
Notes
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
2
7
9
8
Charitable activities:
- Funding for educational operations
4
-
3,312
-
3,312
3,142
Investments
5
2
-
-
2
3
Total
2
3,314
7
3,323
3,153
Expenditure on:
Charitable activities:
- Educational operations
7
-
3,343
81
3,424
3,340
Total
6
-
3,343
81
3,424
3,340
Net income/(expenditure)
2
(29)
(74)
(101)
(187)
Transfers between funds
15
-
(102)
102
-
-
Other recognised gains/(losses)
Actuarial losses on defined benefit pension schemes
17
-
(22)
-
(22)
(82)
Net movement in funds
2
(153)
28
(123)
(269)
Reconciliation of funds
Total funds brought forward
5
191
2,397
2,593
2,863
Total funds carried forward
7
38
2,425
2,470
2,594
LIGHTHOUSE HARMONIZE EDUCATION TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025
- 40 -
Comparative year information
Unrestricted
Restricted funds:
Total
Year ended 31 August 2024
funds
General
Fixed asset
2024
Notes
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
-
8
8
Charitable activities:
- Funding for educational operations
4
-
3,142
-
3,142
Investments
5
3
-
-
3
Total
3
3,142
8
3,153
Expenditure on:
Charitable activities:
- Educational operations
7
-
3,261
79
3,340
Total
6
-
3,261
79
3,340
Net income/(expenditure)
3
(119)
(71)
(187)
Transfers between funds
15
-
(78)
78
-
Other recognised gains/(losses)
Actuarial losses on defined benefit pension schemes
17
-
(82)
-
(82)
Net movement in funds
3
(279)
7
(269)
Reconciliation of funds
Total funds brought forward
3
470
2,390
2,863
Total funds carried forward
6
191
2,397
2,594
LIGHTHOUSE HARMONIZE EDUCATION TRUST
BALANCE SHEET
AS AT 31 AUGUST 2025
- 41 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
2,424
2,397
Current assets
Debtors
12
20
86
Cash at bank and in hand
324
179
344
265
Current liabilities
Creditors: amounts falling due within one year
13
(298)
(68)
Net current assets
46
197
Net assets excluding pension asset
2,470
2,594
Defined benefit pension scheme asset
17
-
-
Total net assets
2,470
2,594
Funds of the academy trust:
Restricted funds
15
- Fixed asset funds
2,425
2,397
- Restricted income funds
38
191
Total restricted funds
2,463
2,588
Unrestricted income funds
15
7
6
Total funds
2,470
2,594

The financial statements on pages 39 to 60 were approved by the trustees and authorised for issue on 15 December 2025 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 2025
- 42 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash provided by/(used in) operating activities
18
244
(220)
Cash flows from investing activities
Dividends, interest and rents from investments
2
3
Capital grants from DfE Group
7
8
Purchase of tangible fixed assets
(108)
(87)
Net cash used in investing activities
(99)
(76)
Net increase/(decrease) in cash and cash equivalents in the reporting period
145
(296)
Cash and cash equivalents at beginning of the year
179
475
Cash and cash equivalents at end of the year
324
179
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
- 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 financial statements 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 financial statements 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 2024 to 2025 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 financial statements 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 financial statements.

 

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 2025
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 2025
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 2025
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 2025
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 17, 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 2025. 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 2025 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
2025
2024
£'000
£'000
£'000
£'000
Capital grants
-
7
7
8
Other donations
-
2
2
-
-
9
9
8
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 48 -
4
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2025
2024
£'000
£'000
£'000
£'000
DfE/ESFA grants
General annual grant (GAG)
-
1,511
1,511
1,511
Other DfE/ESFA grants:
- Pupil premium
-
9
9
16
- Teachers pay grant
-
29
29
99
- Teachers pension grant
-
224
224
178
- Core schools budget grant
-
220
220
-
- Others
-
2
2
17
-
1,995
1,995
1,821
Other government grants
Local authority grants
-
167
167
256
Other incoming resources
-
1,150
1,150
1,065
Total funding
-
3,312
3,312
3,142
5
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2025
2024
£'000
£'000
£'000
£'000
Short term deposits
2
-
2
3
6
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2025
2024
£'000
£'000
£'000
£'000
£'000
Academy's educational operations
- Direct costs
2,434
-
185
2,619
2,476
- Allocated support costs
464
144
197
805
864
2,898
144
382
3,424
3,340
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
6
Expenditure
(Continued)
- 49 -
Net income/(expenditure) for the year includes:
2025
2024
£'000
£'000
Operating lease rentals
6
6
Depreciation of tangible fixed assets
81
79
Fees payable to auditor for:
- Audit
10
9
- Other services
3
3
Net interest on defined benefit pension liability
(7)
(6)
7
Charitable activities
2025
2024
All from restricted funds:
£'000
£'000
Direct costs
Educational operations
2,619
2,476
Support costs
Educational operations
805
864
3,424
3,340
Analysis of support costs
2025
2024
£'000
£'000
Support staff costs
464
433
Depreciation
81
79
Technology costs
5
18
Premises costs
63
99
Legal costs
1
1
Other support costs
126
149
Governance costs
65
85
805
864
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 50 -
8
Staff
Staff costs and employee benefits
Staff costs during the year were:
2025
2024
£'000
£'000
Wages and salaries
2,213
2,099
Social security costs
251
209
Pension costs
434
376
Staff costs - employees
2,898
2,684
2,898
2,684
Staff development and other staff costs
12
22
Total staff expenditure
2,910
2,706
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2025
2024
Number
Number
Teachers
25
22
Administration and support
28
35
Management
5
5
58
62
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2025
2024
Number
Number
£60,001 - £70,000
1
3
£70,001 - £80,000
2
-
£80,001 - £90,000
1
1
£100,001 - £110,000
-
1
£110,001 - £120,000
1
-
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 £652,251 (2024: £531,562).

LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 51 -
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 - £110,001 - £115,000 (2024: £100,001 - £105,000)

Employer’s pension contributions paid - £30,001 - £35,000 (2024: 25,001 - £30,000)

 

A Lawson (staff governor and trustee):

 

Remuneration - £45,001 - £50,000 (2024: £45,001 - £50,000)

Employer’s pension contributions paid - £10,000 - £15,000 (2024: £10,000 - £15,000)

 

During the period ended 31 August 2025, no expenses were reimbursed to trustees (2024: £nil).

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 2025 was £3,750 (2024: £3,450). The cost of this insurance is included in the total insurance cost.

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 2024
1,469
1,247
212
176
26
3,130
Additions
-
64
7
37
-
108
At 31 August 2025
1,469
1,311
219
213
26
3,238
Depreciation
At 1 September 2024
249
195
185
99
5
733
Charge for the year
23
25
14
15
4
81
At 31 August 2025
272
220
199
114
9
814
Net book value
At 31 August 2025
1,197
1,091
20
99
17
2,424
At 31 August 2024
1,220
1,052
27
77
21
2,397
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 52 -
12
Debtors
2025
2024
£'000
£'000
VAT recoverable
1
1
Prepayments and accrued income
19
85
20
86
13
Creditors: amounts falling due within one year
2025
2024
£'000
£'000
Trade creditors
1
1
Other taxation and social security
58
48
Accruals and deferred income
239
19
298
68
14
Deferred income
2025
2024
£'000
£'000
Deferred income is included within:
Creditors due within one year
220
-
Deferred income at 1 September 2024
-
-
Resources deferred in the year
220
-
Deferred income at 31 August 2025
220
-
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 53 -
15
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2024
Income
Expenditure
transfers
2025
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
191
1,511
(1,562)
(102)
38
Pupil premium
-
9
(9)
-
-
Other DfE/ESFA grants
-
475
(475)
-
-
Other government grants
-
167
(167)
-
-
Other restricted funds
-
1,152
(1,152)
-
-
Pension reserve
-
-
22
(22)
-
191
3,314
(3,343)
(124)
38
Restricted fixed asset funds
LCC Lease
1,266
-
(23)
-
1,243
DfE group capital grants
644
7
(31)
-
620
Capital expenditure from GAG
487
-
(27)
102
562
2,397
7
(81)
102
2,425
Total restricted funds
2,588
3,321
(3,424)
(22)
2,463
Unrestricted funds
General funds
5
2
-
-
7
Total funds
2,593
3,323
(3,424)
(22)
2,470

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 2025
15
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
2023
Income
Expenditure
transfers
2024
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
411
1,511
(1,653)
(78)
191
Pupil premium
-
16
(16)
-
-
Other DfE/ESFA grants
-
294
(17)
-
277
Other government grants
-
256
(533)
-
(277)
Other restricted funds
-
1,065
(1,065)
-
-
Pension reserve
59
-
23
(82)
-
470
3,142
(3,261)
(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
3,150
(3,340)
(82)
2,588
Unrestricted funds
General funds
3
3
-
-
6
Total funds
2,863
3,153
(3,340)
(82)
2,594
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 55 -
16
Analysis of net assets between funds
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2025 are represented by:
Tangible fixed assets
-
-
2,424
2,424
Current assets
8
336
-
344
Current liabilities
-
(298)
-
(298)
Total net assets
8
38
2,424
2,470
Balance to allocate
(1)
-
1
-
Per balance sheet
7
38
2,425
2,470
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
17
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 2025
17
Pension and similar obligations
(Continued)
- 56 -
Valuation of the Teachers' Pension Scheme

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

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

The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2027.

The employer's pension costs paid to the TPS in the period amounted to £336k (2024: £205k).

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.

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 18.4% until 31 March 2026. The employee contribution rates start at 5.5% increasing to 12.5% depending on earnings.

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
2025
2024
£'000
£'000
Employer's contributions
116
113
Employees' contributions
37
37
Total contributions
153
150
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
17
Pension and similar obligations
(Continued)
- 57 -
Principal actuarial assumptions
2025
2024
%
%
Rate of increase in salaries
4.1
4.1
Rate of increase for pensions in payment/inflation
2.7
2.7
Discount rate for scheme liabilities
6.2
5.0
Inflation assumption (CPI)
2.6
2.6
The current mortality assumptions include sufficient allowance for future improvements in mortality rates.  The assumed life expectations on retirement age 65 are:
2025
2024
Years
Years
Retiring today
- Males
20.6
20.8
- Females
23.3
23.4
Retiring in 20 years
- Males
21.7
22
- Females
24.7
25.1
Sensitivity analysis

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

2025
2024
£'000
£'000
Discount rate + 0.1%
-18
-21
Discount rate - 0.1%
18
22
Mortality assumption + 1 year
22
29
Mortality assumption - 1 year
-22
-28
CPI rate + 0.1%
18
22
CPI rate - 0.1%
-18
-21
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
17
Pension and similar obligations
(Continued)
- 58 -
The academy trust's share of the assets in the scheme
2025
2024
Fair value
Fair value
£'000
£'000
Equities
864
698
Government bonds
64
63
Other bonds
19
22
Cash/Liquidity
28
20
Property
173
148
Other assets
409
361
Total market value of assets
1,557
1,312
Restriction on scheme assets
(415)
(86)
Net assets recognised
1,142
1,226
The actual return on scheme assets was £119,000 (2024: £99,000).
Amount recognised in the statement of financial activities
2025
2024
£'000
£'000
Current service cost
98
93
Interest income
(69)
(62)
Interest cost
62
56
Administration expenses
3
3
Total amount recognised
94
90
Changes in the present value of defined benefit obligations
2025
£'000
At 1 September 2024
1,226
Current service cost
98
Interest cost
62
Employee contributions
37
Actuarial (gain)/loss
(257)
Benefits paid
(24)
At 31 August 2025
1,142
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
17
Pension and similar obligations
(Continued)
- 59 -
Changes in the fair value of the academy trust's share of scheme assets
2025
£'000
At 1 September 2024
1,312
Interest income
69
Actuarial gain
50
Employer contributions
116
Employee contributions
37
Benefits paid
(24)
Effect of non-routine settlements and administration expenses
(3)
At 31 August 2025
1,557
Restriction on scheme assets
(415)
Net assets recognised
1,142
Restriction of pension scheme assets

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.

18
Reconciliation of net expenditure to net cash flow from operating activities
2025
2024
Notes
£'000
£'000
Net expenditure for the reporting period
(as per the statement of financial activities)
(101)
(187)
Adjusted for:
Capital grants from DfE and other capital income
(7)
(8)
Investment income receivable
5
(2)
(3)
Defined benefit pension costs less contributions payable
17
(15)
(17)
Defined benefit pension scheme finance income
17
(7)
(6)
Depreciation of tangible fixed assets
81
80
Decrease/(increase) in debtors
66
(7)
Increase/(decrease) in creditors
229
(72)
Net cash provided by/(used in) operating activities
244
(220)
LIGHTHOUSE HARMONIZE EDUCATION TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
- 60 -
19
Analysis of changes in net funds
1 September 2024
Cash flows
31 August 2025
£'000
£'000
£'000
Cash
179
145
324
20
Long-term commitments
Operating leases
At 31 August 2025 the total of the academy trust's future minimum lease payments under non-cancellable operating leases was:
2025
2024
£'000
£'000
Amounts due within one year
16
14
Amounts due in two and five years
37
26
53
40
21
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.

22
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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