2022-03-31-accounts

Enginuity.

Enginuity (formerly Science, Engineering And Manufacturing Technologies Alliance)

Report And Consolidated Financial Statements

for the year ended 31 March 2022

Company Number: 02324869 Chrn-ity Number: 1000328

ENGINUITY REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 CONTENTS Pagg Advisors R&port of the Chaii- Trust88s'IDii-8ctors' Report 4-18 Independent Auditor"s Report 19-22 Consolidated Statement of Financial Activities Ilnoorporoting Incoine ond Expenditui-el 23 Consolidoted Bolonce Sheet 24 Cliarity Balance Sheet 25 Consolidoted Cash Flowstatement 26-27 Notss to the Financiol Stotements 28-44

ENQINUITY ADVISOR8 FOR THE YEAR ENDED 31 MARCH 2022 Audltor Crowe U.K. LLP 4th Floor, St Jaings Hous8 St Jomes Square Clieltenhani GL50 3PR Rag18ter8d Offlco Uiiit 2, The Orieiit Centre Greycaiiie Road Watford WD24 TGP Inv88tment Manog8r8 CCLA Boord Member8 Dtsnie J Hackitt DBE (Cliairl M Evans S Hunter J Lopes S Pomplin M Tai-ry P Birt S Sund18 K Boswell OBE J Wood V Soward P Pei-era D M61-editli (resigned 19/11120211 A Burke Soiiator House 85 Queen Victoria Street London EC4I14ET BNY Mellon Fund Maiiagors Liinitod The Bank of New Voi-k Mollon Centre 160 Queen Victoria Sti-eet London EC4V 4LA Inva8tm8nt AdviBor Portfolio ￿￿Onager Consultaiicy Ltd Woodiwotei- Houg Pynes Hill Exeter EX2 5WR Chlef Exocutive A Wot$on Banker 8arcloy$ Boiik pl¢ 6916? High Street Wotford VIID17 2BT Sollcltor8 DLA Piper U.K. LLP I St. Peter's Squar8 ancliostor M2 3DE Womble Bond Dickinson IUKI LLP 4 Mol-e London Riverside London SE12AU

ENGINUITY REPORT OF THE CHAIR FOR THE YEAR ENDED 31 MARCH 2022 Report of the Chair by Dame Judlth Hackitt DBE Over the last year. the cho116ng&8 w8 foce in the UK ond ocross the world have become even mor8 entrenched and we al-e seeing iiicreasiiigly urgent pressure on tlie oiiginccring and manufacturing sector. In response, we are seeing more innovotion, greater expèrtise, ond increasing flexibility as the sector becomes niore agile: adopting to the d8inonds of Industry 4.0 ond digitoli80tion: the race to Net Zero. the tronsport revolution and a chollenging labour iiiark8t. Engineering oiid nianufocturing businesses ara hungry for skills ot o time when the goveriim8nt's levglling up agenda is relyiiig on the sector to boost productivity ocross oll l-egions of the UK. l ani proLid of tlie role that Enginuity continues to ploy Tn 8UPPOrting engineers and nioiiufactur8r8 to odapt to this fost-paced ohonge. rise to the challenges, ond Inspiro the future work"torce. Over ihe lost veor: our leadersl)ip of the National Monufacturing Sl<ills Toskfor¢9 hos niode a significont contribution to influencing and co-ordinoting o commor) voice, fostering ways for organisations to work togeth8r to boost support for: ond iiivestmeiit in: the devolopment of vital skills. We contiiiue to successfully raise tlie profile of ocliieveiments within engineeriiig and moiiufocturing ond were proud to host the annual Enginuity Skills Avvards in person oiice agaiii to r8cogiiise and colebrote th8 commitmgnt oflgorners and opprentices, troining pi-oviders aiid employersto skills development. This fonto$tio showcose serves to reinforce the vtslue of long-t8rin skilled eniploymaiit in fulfilling careers. Supporting the future tolent pipeline, we hove seen success in the development of our Skills Miner games wliich help to briiig STEM subje¢t8 to life for young people. roising awareness of careers: ond stimulating interest in: ond eiigugeinent wiith: 8ngineering chollenges. Enginuity contiiiues to develop its tecliiiical 8xpertise to desigii innovotive and pro¢tical solutions to solve sector skills challenges. For example, we hovts usod our expertise in doto 8cien¢s to f urther develop digital products ond seriiices that help to identify sl<ills and traiiiing needs and support the recruitiiient of skilled individuols. The Coreer Converter tool hos demonstrated its iialue in highlighting tronsferable skills to iiidividuals, oiid in gnobling eimployers to quickly ond accurotely assess condidot8s that can be fast- tracked into the sector. Moving forward we plan to enable other 01-ganisations to bgnefit from our IP bv licensing this cutting-adge technology to benefit other parts of the sector. We have denionstroted our skills in data onolysis through the Skills Foresighting project forthe High Volue Manufacturing Cotopult wliich is providing rich insiglits into detai18d skills requii-ements and workforce planniiig. We hope tl)at our work to devolop a Comnion Skills Laiigucjge and tlie autoinated processes to generate intuitive data visualisation will help contribute to thé d8velopment of a skilled pipeline of future tolent aligned to the requirements or new monufocturing iechiiologiss. The yeor aheod will bring a renewed focus on our 9r8en product strtstegy in r8sponse to the UK'S Net Zero goals, tlie achievement, of which will depend to a considerable extent on tho ingenuity and productivitv of our engineering ond monufacturing workforce. The team ot Enginuity hu8 proved itself to be highly copoble: flexible: and odaptable ogainst a backdrop of nionientous cliange and emerging issues of incretssing urgency. l um pi-oud of their hord work and resilience. and trust that tha strgngths we hove developed together will enoble tli6 organisotion to continue driving the success of the sector in th8 year ahead.

Looking Ahgad wlth Confidenco Tha eriticol uctivities tliat will secur8 ouI- suniival oiid prosp8rity in the 21st century depend on o robust, high-quolity response from eiigiiieers cind monufocturers. Enginuity uiiderstands thg importanc8 and urg8iicy of dévèloping skilled gngineering tol8nt in the UK aiid supportiiig the future workforce. As port of our ambitioii to secure a sustoinable future for Eiiginuity. the year alieod will see us consolidate our position as on autlioi-itatiiie iioice within the engiiieering ond iiionufoeturing sector, doiiioiistroting thot we hove o deep understuiiding of its skills eholleiiges. aiid eiiabliiig individuals and orgaiiisatioiis to onticipate ond odapt to the technological revolution that wiill doliv¢i- o productive future. Harnessing the power of data in tlie way our industry does so expertly, we will continue to d6v61op liigh- quulity. innoiiatiiie, and i)roctical solutions thut will 9nabl8 tlie sector to understond: process aiid deliiier the skills required to solv8 tli8 iworld's niost pressing problems including the urg8llt ¢liniote eniergencv. Ir) th8 y8ar ahead, we will continue to build on th8 development ond promotioii OF our three pillors.. Ensipre, Eiisiglit, und Enoot, pi-oviding a robust platforni for Enginuity's ambition to coniiect the sector and shore kiiowledge to enable its futui-e growth aiid developiiient. Tljrough Eiispire. we aim to ci-eote Liiiique opportLlI)Ities that iiiill encoui-oge young people to explora potential coreers iii eiigineering through o gi"owiiig l-ange of interoetiiie career iiisights: furtliar èducatioiiol pothwoys, and gamification of tliè iiutioiial curriculum. We will support iiew entrants to the sectoi- tlirougli tlie provision of internships and a new bursary schcme that will enable aspiriiig eiigineers to o¢liieve their onibitioiis. We are coiifident thot these activities will1181p to iiispii-e tlie futui-e pipeliiie of 8ngi1188rs and s6cui-e the future pi-osp8rity of the sector. As wè move fOr￿lOrd. we will addr85s aiid SLipport existing 8ngineers os well as professionol$ witliin porollel sectors through our Ensi9ht tools. We will ei<pertly pull tog8tli¢r o wealth of speciolist knowledge aiid ii)$ights within a siiigls source of data liighligliting tlie skills: Icnowledge: aiid behovioLirs, iiicluding those tliat al-e traiisferable bet￿leen occupations: which enob16 indiiiiduols to folloihi a Ineoniiigful coi-eer poth oiid coiitribute to future productivitv. Tlie third of oui- thr8e pillars, Eiioct: will off&r bespol<e worl<foi-ce plonning servic8S to businesses. orgaiiisatioiis und regioiis based oli tlie skills i-equii-ein8nts witliiii tlieir sti-atogic roadmops in accordonce witli tlieii- technologicol copobilities ond existlllg tolont base. Vlle look forwoi-d to worl<ing 08 port of a Knowledge Tra118f8r Portnersliip with th8 Uiiiiiersity of Teesside to bl-ing the e)Ipertise d9I11S8d tlirougli tlie Enspire oiid Eiisiglit pillars to the morket througli o range of services for regional, sectorol, aiid coi-porote customers. Our long-term ambition is tliot tlie tliree pillars will create value foi- our sector, gnobling the definition of the futui-e CLlI-riculuin ond proiiidiiig o platforir for education estoblisl)nieiits to devise, curate oiid deliv81- exactly wihot the $8ctoi- needs to soliie its skills choll8nges. Entronts to the 81igin8ering woi-kforce ￿1111 benefit f rom refined gdueotioiiol patliways i)reparing theim for theii- future care8rs: wliile experienced individuals fi-oni the pi-ofessioiial workforce will beiiefit tlirougli bitesize modular Study options to muiijtain their copobilities iii evolving teeliiiicol laiidscape. In ordei- to effectively conimunicote our offoi- under these three pillurs we Ol-e working to briiig our sub- brands to life os port of a ra-desigiied website for Engiiiuity which will be built: tested aiid lounched during tlie year aliead. Our plans olso include the launch of the Enginulty Skills Awards for 9093 ond we ore looking forword to hosting ths eiient in o new venue. R8cognising the weolth of talent within the sector in this way provides the perfg¢t 8howcase for our ambitions, os Mie raise the profile of outstoiiding nchievements INithin UK engineering and monufocturing, paving a way for its futur6 success.

ENGINUITV TRUSTEES'IDIRECTORS. REPORT FOR THE YEAR ENDED 31 MARCH 2022 REFERENCE AND ADMINISTRATIVE DEfAILS ENGINUITY is a compony, limited by guaraiitee (company number 023248691 and does not hove shore capital. which is iiicorporotr4d in Englond and Wales under the Companies Aot 2006. It is a registered chority Icliority number 10003981 governed by its memoraiidum ond articl88 of association. The charitv owns 100% of the allotted ordinory shorb copitol of two trading subsidiorigs. The members of the Boord wlio liald office during the year were.. Danie J Hackitt DBE Ichairl M Evans S Hunter J Lopes S Pomplin M Tarrv P Birt3al S Saiid18 K Bosw811 OBE l H Soward5 J Wood P Perera A Burke D Meredith 2&4 (Resigned 19111120211 Member of th8 Investment Committee Member of tlie Audit Coniniittee M8mb8r of th8 Reiiiuneration and Pensi011s Committe9 Meniber aiid Chuirmun of tlie Audit Comniittee Member arid Chairmon of the Investment Coiiiimittee Member aiid Chairmun of the Reniuiieration aiid Pensioiis Con)niittee The Chief Executive: professional odvisors and registered office of thg ¢hai-ity are listed on poga 1. STRUCTURE. GOVERNANCE AND MANAGEMENT The Charity is governed by a Board of employer and trade uiiion repre$8ntotiiies. The niembei-s of thè Board tsre trustees of the charity and also directors for the purposes of compony law. The Board meets quorterly to review progress against the agreed busin8ss plan aiid agree on future strotegy. Responsibility for the monogement of the business is delègottsd to the Cliief Executiva. Tl)ere ore four committees which suk)mit i-eports to the full 80ts1'd.. Iniiestment Committee Audit Committee Remuneration ond Pensions Coinmittee Quolity Assuronce Committee Two further sub committees of the Board In88t os and when required with all members of the Board participating as oppropritste. A Board Standing Committee has delegat8d authority to opprov6 expenditure aiid controcts on behalf of the Boord ond the Noniiiiations Committee considers appointments to the Board and to the role of Chief Ex8¢utive. As directors of the conipony.. the Botjrd members are responsible for ovei-s8eing the company"s business in u monner consistent with its charitab18 objectives. They ore also guarantors to the company.

TRUSTEES'/DIRECTORS' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022

ENGINUITY

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

The key subsidiary is E><cellence Achievement & Learning Limited (EAL - cI \locational Awarding Organisc1tion) and Enginuity Skills Limited 1/1/hich commenced trading on 1[st ] October 2021.

After last yeai--end, the Directors of four dormant subsidiaries (being Training Properties Ltd, Training Publications Ltd, 1\/letskill Ltd and National Skills Academy for 1\/lanufacturing Ltd) and the Directors of the parent company had put in place plans to dissolve those entities and strike them from the register. At the date of this report, all e><cept 1\/letskill had been struck off.

The key internal financial control procedures ore summorised as follows:

Control Environment:

There is o clear orgonisotionol structure with well-defined lines of responsibility and delegation of opprop1·iote levels of outhority.

Risk Management:

Business strategy ond business plans are reviewed by the Board. Detc1iled appraisals are undertaken and financicd implications evaluated prior to cill capitol e><penditure and projects. Risk ossessments are considered by the Audit Committee at each meeting and reported back to the Board.

The impact of CO\/ID-19 has been taken into account on structuring and running Enginuity's day to day operations.

Financial Reporting:

A co1i-1prehensive system of budgets and forecasts is in place, with quarterly monitoring and reporting of actual results agoinst targets to the Board.

Control Procedures and Monitoring Systems:

Authority levels, procedures and other systems of internal finc1ncial control are documented, applied and subject to Internal Audit and revie\/1/ by the Audit Co111mittee, \1 hich consists of Board l\/le111bers and other 111embei-s \/\/ho are suitc1bly qualified. The Audit Comrnittee meets t\1 ice each yeai- \1 ith the e><ternal auditors to discuss the audit plan and the results of their audit work. The audito1· con rneet the Audit Committee in privote session as part of this process.

Investment:

lnvest111ent management is delegated to professional investment management firms CCLA and BI\IY 1\/lellon Fund Managers Li111ited, suppo1·ted by an independent advisor Portfolio 1\/lanager Consultancy Ltd. The lnvest111ent Committee's role, chaired by an Enginuity Board 1\/lember and supported by members who are suitobly qualified, is to review the performc1nce of the investment managers and 111ake reco111rnendations to the Board on investment policy.

Remuneration:

Senio1- e><ecutive remuneration is governed by the Remuneration and Pensions Committee which is choired by an Enginuity Boord 111e111ber ond has 111e111bers who are suitobly qualified.

Appointment of Board Members:

The appointment of Board mernbei-s, for a mm<irnum of three terms of three years, is made by members on the recommendation of the Nomination Committee.

New Board me111bers undergo an induction to brief them on thei1- legal obligations unde1- charity and co111pany law, the content of the l\/le1 orandu111 and Articles of Association, Enginuity's strategy and recent financial perfor111ance and the Co111mittees and decision-making process. Board members are encouraged to attend appropriate e><ternal training events \/\/here these \/\/ill facilitate the undertaking of thei1- role.

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ENGINUITY

TRUSTEES' /DI RECTORS' REPORT ( continued) FOR THE YEAR ENDED 31 MARCH 2022

PUBLIC BENEFIT

As a rngistered charity, Enginuity operates for the public benefit. As an organisation, we believe that one engineer can change their world and ours, given the opportunity.

Enginuity provides such opportunity through the creation of practical skills solutions for engineering e111ployers and for individuals who want to see and develop the skills they need to succeed. We do this through the use of un111atched expertise and data.

Enginuity promotes and advances the educotion, training and skills development of individuals e111ployed within the engineering secto1- and those wishing to beco111e e111ployed within the sector.

Enginuity provides public benefit by:

• Supporting Engineering and Manufactu1-ing to drive a positive and growing conti-ibution fro111 the sector both in ter111s of jobs and contribution to GDP

• Supporting e111ployers in identifying future skills require111ents and developing or sou1-cing appropriate education and skills solutions to Lipskill and reskill the existing workforce thereby 111aintaining people in e111ploy111ent for longer whilst also pro111oting the sector as an attractive and worthwhile career

• Ensuring that individuals and e111ployers can access high quality engineering skills training progra111111es, assess111ent and validation to keep thei1- skills and competency relevant, up-to-date and evidenced

• Inspiring individuals with latent talent who 111oy not have considered engineering and help individuals already interested in c1 career in engineering to understand thei1- potential and be given opportunities for develop111ent and progression

• Ensuring that ethics and safety of the public is integrated into all training both directly and through partners to create the right environ111ent for and build trust in engineers to tackle so111e of society's 111ost pressing issues such os cli111ate change."

In agreeing this state111ent of public benefit, the Board confir111 they have paid due regard to the Chrn-ity Co111111ission guidance. The charity's activities and achieve111ents are set out below.

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ENGINUITY TRUSTEE8'1DIRECTOR8' REPORT (contlnued) FOR THE YEAR ENDED 31 MARCH 2022 STRATEQIC REPORT OWECTIVES AND ACTWITIES The objectives ond mission of the charity ore to proactively support amployers in tha engineering and monufocturing sector to inspire and craate the engine8rs, technicians ond scientists of today ond tomoi-roim. Activities include but are not limitad to.. Providing export leadership to employers, Government. educational institutes and industry organisations Promotion of the skills needs for th8 sector. Dovelopmeiit of pi-actical sl<ills solutions to support employers and individuals iii accessing the skills that they need. Uso of t8cliiiology to assist eniployers in the ottraction of new talent as wall as thé up and reskilling of the existing workforce. OLtr Strot89ic Goals as OLltlined in our Stratggy or)d Bvsingss Plan are.. A 8UStainabla charitable gi-oup witli o growing surplus tliat is invested in activities that delivers PLibli¢ benefit and a positive impoct to th8 UK engineerii)g sector. Through our expert strategic insight. ond knowledge of tlie sector alongside use of digitol technologies we develop innovative practicol solutions to solve the sector skills chollenges of today ond tomorrow. Imith tlie custoimer at the lieart of everything wa do, Iwe will beconie the single source for high quality, ii)iiovutive skill$ solutioiis uiiclei-pi1i1i8d by outstaiicling custoinei- sei-vice. A highly expai-t. paople-focus6d ond performonee driiièn group, our peopl8 live tlio 01)61"oting niod81 ond our valugs, culture aiid inclusivity are recogi)ised for this. The Enginuity brand is synonynious within tho sector as the trusted and inclusive skills integrator who morri9s eiigineering expertise with digital technologies to deliver practical skills solutions ond expgrt and iiisightful thought lecidersliip. To aclii8ve this strategy we set out to.. Deliver impoctful int811igence and best practic Creote procticol skills ond toltrnt solution$ Use innovation to delivar new public benefit Co-create cind colloborote for the benefit of the Sector ond moximise public benefit Be a sustoinoble cliaritoble group creoting public benafit into th8 future. Partn8rship8 and Projocts- Forglng Llnkg arKI Bulldlng Ralatlon8hlp8 The last year has seen Enginuityget involved with saveral high-profila projects thot are helping to support ski118 development within engineering and manufocturing. Roepondlng to Governmont Enginuity responded to on intor-deportmantol government consultotion seaking to as8e$s tho manufocturing workforce ond provided o detoiled responso to the Deportniont for Educotion IDfEI-. Department for 8u8iness, Energy ond Industriol Strotegy IDBEIS), ond the DoportmÈnt for Work ond Pensions IDWPI. Its response higlilighted the usa of skills foro-sigliting.. influenced by technology roodiiiaps, that help to build future Workfor￿ skills requiraments across multiple sectors. Enginuity roflactad on the imi)oct of 8rexit ond the pondemic on tho monufocturing workforce and su998Sted woys in which industry Con address skills shortog98 such os digitolisotion ond electrificotion in the tronsport sector.

ENGINUITY TRUSTEE8'IDIRECTORS' REPORT {contlnu•d} FOR THE YEAR ENDED 31 MARCH 2022 In oddition. Enginuity contributod to consultution on the Notional Skills Fund led by the DFE by highlighting the need to focus on upskilling th6 existing workforce ond supporting quolificotions thot enublo individuals to move betW88n Sector8. Enginuity called for greater flexibility in the training off8r including support for free Lev813 qualifications alongside skills bootcomps. Strongthenlng 8klll8 Through Part￿rShIp As a founder of the National Manufacturing Skills Toskforce: Enginuity hos been instrumental in influencing policy as part of a brood group of organisotion$ oper(Jknng in sectors from food ond drink to pharmaceuticals ond life sci8nc88. Enginuity help8d to produco o podcost ond myth-bu8ting fact sheet for 30.000 work coochas in the Departnieiit for Work and Pensions providing ¢ontont for a manufacturing microsite designed to address perceptions of the sector. It olso hi9hlightod the shortoge of HGV drivers raising the profile of the ne¢d for improved working condition8. Alongside the Institute for Apprenticeships ond Technicol Educatioii IlfATEI-. Enginuity supported th implenientation of the new eiigineeriiig and Inanufacturing T Levels due to be ro119d out in Sei)temb8r 2022 for the first tiine. In addition, tlie taskforce coiitributed to the Educotion ond Skill$ Fui)din9 Agency IEFSAI Apprenticeships in Manufacturing group wliich is designed to provide a common rgsponse from industry to plans to grow recruitniont in tliis aroa. Forecastlng Future SWI18 Dota sciei)ce ond dota analytics ware at tha haort of o project supported by Enginuity thot helped the High Value Maiiufocturing Catopult to identify futura skills requirèments based on tgchnical and business drivers ond incorporoting input from 8mploygrs. Funded by the Deportment for Education, 8ki118 foro-sighting methodology was used to identify the sknlls, knowledge oiid behoviours required within the outomotive workforce in the context of digitoli$otion ond 8lectrificotion. The methodology helps to expose skills gops, influencing the content and design of quolific(Jtions. Apprant1￿ShIpS Undorpin Wrtal Ski118 for Scotland Support foropprenti¢e$hips in Scotlond remain8 heolthy with numb6r8 of engineering ond monufocturing opprentices recovering to around 1.200 which Is in Ilne with pre-pandeniic levels. The oppranticeship qualificirtion5: monoged by Skills Developmgnt Scotland: encon)pass8s fronieworks from foundation through to technicol aiid d6gro8 lev61 which con b8 0cc8ssed ot any point on on apprentice's skills journey. Achievemènt rotas ore liigh ot ovar 71 per cant cind recruitment 1$ strong. Hovw8ver, an ageing workforce and o declining demographic for youiig paople means thot skilled Individuols oble to toke on 21. ¢cntury challenges aro in higlier doniand than ever before. Further work is nooded to d8liv8r the skills required to suppoi-t advances iiicluding the digitalisation of manLifocturing ond the decorbonisation of the transport system. Having previously contributed to the design of Modern Apprenticeship Fromeworks, Enginuity is now working with Skills Development Scotlond ond the Notionol Monufacturlng Institute of Scotland to help davelop new franieworks oiid standards for gngineoring ond muoufocturing toking account of best proctice o¢ro8s Europe ond designed with both employee and employers. involvement from the stort.

ENQINUITY TRUSTEES'/DIRECTORS' REPORT l¢ontinuod) FOR THE YEAR ENDED 31 MARCH 2022 Work iiicludes Inapping 8ki118 requireiiientsto support the adoption of n8W technologies in monufa¢turing ond identifying how individuals cali be supported to goiii iieiN sl<i118. Tliis follows work alreody complèted over the lost yeor that culminated in the lounch of a n8lW t8clini¢ol oppi-erkticèship in 8ngino8ring ond digital manufocturing in Moy 2022. Robert Bruce. s8Ctor devèlopment 8p8ciolist for 8nginoering ond n)anufocturing ot Enginuity sold, "Apprenticeships arg highly regarded in Scotland and well supported by 8mployers, but skills ramoin in 8hort supply. We are focuslng on ways to help indu8try ensure thot appr8nti¢es hovg tlie skills for tomorrow's engingering chollenges and ability to retroin their eKlSting workforce including d8velopirbg core enginegring and nianufocturing standards that con be opplied ocross o wid8 ronge of 8nginggring envii-onments, oiiobliiig iiidividuals to build niultidis¢ipliiiory and odvancèd tèchnology skills thot eon be deployed what0vei- s8Ctoi- they woi-k in from oil aiid gas to ogrlculturol eiigineering. Extsrnolly Funded Proleots The lost year has seen Enginuity involved in several liigh-profile pi-ojects designod to boost U11derstandin9 and oworeness within tli8 skills volue choin. Below ore sonie highlights thot outlin8 progress to datg. Cell & Ganè Th8rnpy Cotopult (C&G) Enginuity appliod mochinè-based learning to tronslot6 froo t9Xt on skills within digitol content creoting o coniinon skills longuage to highliglit ¢omp18mentory occupational profiles thot i)iotch those within vcJc¢in8 monufucturing. The concept was developod to help identify tron$ferobl8 Skills ond ottroct iiidiiiiduals to pursu6 career patliways th8y moy not otligrwi89 hav8 chosen. Th8 proj8Ct overcome ¢liollei)g9s associated with the applicatioii of siiiiilarity iii sernaiitics, creotiiig structured dato ond ei)abliiig horizontal coinpai-isoii between tho Inultii)licity of sl<ills outlined in job cl88criptions. Hlgh Value Manufucturlng Catopult {HVMC} Through on in-dapth eKpo$rtion of the proc8SS8S Within the skills volue chain. Eiiginuity was able to contribut8 to thg HVMC'S 'Monufocturing the Futura Workforce" project. using dota acquisition. consolidotion. ond comporison to provide insights into the skills requirements of the future workForce. Babco¢k 8kills Ag8988mont In tliis i)i-oject, the fii-st exteriial contract via Enginuity Skills Limited, goiiiificotion wo8 used to identify indiiiiduals Iwith divei-se skillsets that may iiot have been re¢ognisod through the trodib'onol apprenti¢esl)ip application aiid interview process, to help bring poopI8 Wlth rolevant oxperi¢nco ond adjacent skills into o wide rtsnge of roles. DRIVES End of 2021. sow the conclusion of the EU-fund8d Development and Research on Innovotive Vocotionol Education Skills IDRIVESI project Twenty-four partners from 11 countries colloborotad to deliv9r humon capital solutions to supply chain SMES through the estoblishment of Automotive S8¢tor Skills Allionee. This will serve to map ond ossess skills gaps and future demand within the sector over the next dgcod8, help to build coiiinion skills fromeworks across the EU and enoble mutual recognition of quoltficotions between iiiember stotes. Acharitablg Focus Skill8 Mlnar The appeal of gaming underpins the Skills Th￿iner platforni wliich cholleiiges 8tud$nt$ to conipletè Ongineering chollenges through ploying Minecroft. Each gome is professlonolly curat8d and built with

ENGINUITV TRUSTEES'IDIRECTORS. REPORT (contlnugd) FOR THEYE4R ENDED 31 MARCH 2022 odvice from industry expert¥ and contains authentic scenorios For exomple. wthin the oerospoce gome. students ore challenged to ¢rgote thgir own sustoinable fuel to power on oircraft ond fix the code thot enables the flight deck to bring it sofely down to lond. A new odition in the Skills Minar sarias was launched to coincide with November 2012'"s Cop 26 Confgren¢a - Skills Miner Home Energy. It brought to life the challenge of upgrading a house to increase its sustoinobility rating while meeting o budget. As well os boing enjoyoble to play, ganies are designed to contribute to learnlng In Ilne with the curriculum. The outconies Ol-e mapped to Gatsby Beiicliiiioi-k8 SO studeiits discov8r coroor opportunitio$ osth8y plov and can download ts certificate to demon8trote the essential lif8 skills thay hoiiè mostered through the èxpai-ignce. Partngr 89rvl In tandem with Skills Miner games, which are mopped to the curriculo of oll four nuttons, Gutsbv Benchniorks ond Skills Builder Essentiol Skills Franiework: Enginuity hos d$velop9d cofflplem8ntary lesson plon& workshegts, ond vid80 tutoriols. Studont$ ore requested to compl8to o survey ot the end of each gome to help evalu(rt8 Its effectiv8n8s8 ond provide fèedbock that contributgs the devèlopm8nt of these free resources for school8. COP 28 Wgb81ts The COP 26 confertsncè ho$tgd in Glo8gow lost Nov8mber promptèd the davelopmènt of o dedicated 'Greei) Skills, website groenskills.enginuity.org which focus8s on the role of engine8ring and manufacturing in l)elping ochieve Net Zero torgets ond highlights the need to recognise the skills required to ochieve the88. Through this w8bsit8, Enginuity con moke o meaningful contribution to conversation obout the route to Net Zero highlighting o doto-led opprooch to defining green $kill8 ond illustroting it8 effectiveness through case studies. During the COP28 confor8nce: Enginuity's doily sentiment tracker sought to oggregote threads of opinion on green skills os they were expressed through social medio: 8iiobliiig focusèd discussion. In total there wer8 1,870 users: with ts total of 4,292 views across the websita and 95% of thoso viewing the site were new users. Englnulty 8klll8 Awarde Star-studded event eèlabrote8 the brillia￿? of our Sector We were delighted to ¢elebrote togeth8r in person for the first timè sinc8 2019 when wg Stog8d the Enginuity Skills Awords In Morch 2022 to re¢ognise the bèst of UK engineering and monufaeturing tolent. More thon 300 people gothgred ot our glittèring owords ceremony held ot 8 Northumbgrland Avenua in London which wo$ ho$tod by Robert Llewellyn. The Skills Awards celebrato tha achievements of a new gcneration of talent which is alroady shaping the futuré of industry. Tliey also recognise the dodicotion ond cominitment of employers iii their critical role of troining and developing the workforce of the future. Nine awards were presented plus thg Best of British Engineering. woii byTom Brookos, Monaging Director of Zzeus Training Ltd. 0 8peciallst firo alarm technicion troining centre bosed in Lincoln. ne engineer who18 changlng the world 10

ENCIINUITV TRUSTEE8'IDIRECTORS' REPORT {contlnued) FOR THE YEAR ENDED 31 MARCH 2022 Tom Brookes, Zzgug Training Ltd Sla118 Champion of the Yeor and Winner of the Best of Brlt18h Englneerlng Award Toin Brookes took his inspiration from tlie Grenfoll ToiAfer fir8 ond iwo8 deterniined to do whatever he could to lielp preveiit sucli a cotastrophe f rom evg1- happgning again. Toin sold, "The Ul< hos a shortage of qLialified f ire ularm eiigineers aiid Grenfell i-eiiiforced the critical IIMportonce of ti-aining iii tlii8 oreo. 2zeus hos ¢i'eoted the coiiditions in vvhich pooplo witliln the fire olorin industry cali gain a forniol quolificotioii. Ws liav8 h8lp6d 1601-iiei-s of all ages to goiii quolificotions including adults who huv8 8njoyed loiig careers in the sector.. Shaping Future Industry Ann Watsoii, Cliief Executive Officer of Enginuity, sold: 'It vvos wonderful to see so Inoiiy brilliant apprentices, learners ond companies collecting awards oiid ¢elebi-atiiig ot the Eiiginuity Skills Awords. We liave a reniarkable depth of the taleiit aiid enthusiosim vvitliiii the engineei-ing ond iiiaiiufactLiriiig sectors and our oimards al-e the perfect opportuiiity to r8cognis8 liow iiidividuols are successfully i-isiiig to tlie cholleiige of chongiiig tlie world. Danie Judith Hackitt, DBE FREng, Chair of Eiigiiiurty.. said, -The Enginuity Skills Aiwords enable us to celebi-cjte the commitinent of 18arnsrs and opprciitioes, troining providers ond employers to skills developnieiit. These owiai-ds are J ci-uciul oppoi-tunity for coiiipaniès of oll size to celebrate tlio new genei-ation of taleiit shaping the future of our iiidustries. Congratulation8 to oll our Award WSnner8 Trainiiig Partiiei- of the Vear Avvai-d spoiisor8d by 8ui-ton and Soutli Derbysl)ii-e College Winner. In-comm Training SME Apprentice of the Year Aword - sponsored by BAE Systems Winner: Jam08 Ashly from Glouce8ter8hire Engineering Trolnlng Diversity in Engineering Aword - sponsored by Enginuitv Winner: Professor Lisa Brodio, tho Univgrsity of West England. Brlstol SME Invastment in Skills Award - sponsored by Jaguar Land Rover Winner. Dan Richardson from Tribosonics Lorge Employer Apprentice of the Year- sponsored by Fuse Universol Winner. Joshua Toa from MTC Apprgnticoghips Ski118 Innovotion of the Year Aword - sponsored by QinetiQ Wlnnor: AutoLlve from North Warwiok8hlre and South L8lc88tsr8hlre College and Covgntry UnSvor8ity EntsrprS898 Ltd. Groduate or Degree Apprentica of the Vaar- sponsored by The Engineer Wlnnar. Ryan Yates of BAE Systoms Ski118 Champion oftheV$or Aword- sponsored by EAL Wlnner: Tom Brook88 of Z28U8 Tralnlng Ltd

ENGINUITY TRUSTEES'/DIRECTORS' REPORT (continugd) FOR THE YEAR ENDED 31 MARCH Digitol Innovation of the Vaor Award - sponsorgd by Dassault Systemas Winner. The Engineering Dovelopmgnt Trust B8St of British Engineering Award - sponsored by Enginuity Wlnnar. Tom Brooke8 of Z28U8 Training Ltd Our People Achiavemonts Wellbeing Looking ofter our people and promotiiig a greot culture remaiiied priorit188 for the year, and as the impact of the pandemic contiiiues to be felt: i)articular empliosis was placed on m8ntul health. Workshops w81'a d8visèd to focus oli Resilienc9 and Coping Through Change. All manogers wer8 provided with troitiiiig to support nientol liealth. aiid 818veii Mentol Heolth First Aidei-s Imere troined to provide oxtro support for eolleogues. In line witl) greater recognition of the impacts of the n)enopouse, colleogucs wore invited to Menopuuse Awareness workshops. Enginuity continues to build on tliis support, woi-king towards becoming accredited as a 'Menopause Friendly Eniployer,. Enginuity's approoch to health ond wellbeing led to Enginuity gaining 'Highly Commended, in th8 'TIiis Con Hoppen Aword8' in 2021. Building our Cultura As an orgaiiisotion based on remote working, we need to mointoin o ¢on¢tsrt8d focus on building culture, conngction, and rapport amongst colleaguss. Dediecited "coffee and chat" sessions encouroged informal social engagements aiid these have be8n extended to include iiienibeTr-s of the leadership team. Our En)ployee Voice Forum coiitinued to provide a cross-orgonisotion opportunity for colleagues to Ine6t ond ideiitify how we can operate more effectively. Virtual "'CEO Live" sgssions boosted visibility of oui" strategic direction as well as providing progress updotes. Wfy were delighted to lounch our Eniployee Volunteei-ing Progronime which enobles co1180gue$ to spend o doy outsids of work giving assistanco or support to local or wid8r conjniunitiès. Values and Behoviours Underpinning our culture is a set of values whicli were lounched as part of the new internal braiidiiig campoign in the sunimei- of 2021. We are proud that more tlian half of our coll8cigues wgre involved in shaping the new values aiid behaviours and they hove been embraced across th8 busi1igSS. Our four volu8S Qr8 desigiigd to 9nsure we are "boldly n)aking a differanee tog8th8r": We Are Bold We Moke a Diffei-ence W8 Ar8 tn it Togeth8r We Vulue All Voices. Through this work. we were delighted to be nomed os a finalist in the Engage Aword8 for'Be$t Use of Voice of the Employa6'. A peer-to-peer recognition scheme linked to values wos olso launched: enabling colleagues to celebrate the successes and contributions of othei-s. 12

ENGINUITY TRUSTEES'IDIRECTORS. REPORT {continu6d) FOR THE YEAR ENDED SI MARCH 2022 Dlver81ty and Inclu81on We continue to strive for world-closs diversity aiid inclusion standords, ocliieving "'Bron2e' Standard froni Cleai- Assursd for our eoniniitmeiit to, aiid progress in, equality, divgrsity, ond inclusion. Tliis accreditatior) reflects OLlI- focus on embeddiiig D&1 thi-ougliout our recruitment and onboarding pi-ocesses. iJolicies ond pi-ocedures. and ¢ultLiral develoi)iiient progi-ommes. Achieviiig tlie Bronze staiidard niorks our progi-ess beyond coi)Ipliance towards o cultui-ol shift, where diversity and inclusioii are ei)Ibedded witliiii the day-to-day expei-iences of colleagues. Inductlon and Onboardlng Tlie induction and onboordiiig pi-ocess wos r8-Structured to e115ure o great colleague experience, with iieinf colleagues iiiiiited to atteiid o 'Wel¢ome Inductioii, duriiig wihieli they are given the opportunity to i)ieet tlie execuiive teum os well as tlieir peers froin ocros8 tlie business. These sessions provide an opportuiiity to gciin ali uiiderstoiidiiig of Eiiginuity's culture and values in addition to lielping colleocJuos apprgciatg t118 breadtli of our operotioiis. Looklng Ahead In tlie year ahead wie will be inti-oduciiig o new employee eiigogenient platforiii, Hive HR. to coniplcmeiit our 8XlStiiig 8111ployee voice chaiiiiels. Tliis platforni Iwill 81)oble us to gather aiid listen to feedback. aiid ke coiitinuous iniprovenients ensuriiig that the Enginuity Group reniains a greot plcice to work. Even grèot81- focus on diversity and inclusion will - liopefully- 8ncJble us to achieve Cleai- Assured Silver stondard oecr8ditation. A Thnaiiogenieiit and Lsodership D8volopnient Prograii)In6 Iwill l)e launched to support our lend61-s and nic]nogers in continuously upskilling ond driiiing o grecjt expei-ience for their teoiiis. We will coiitiiius to explore how we can provide the best candidate and eniployee experience tlirough the use of HR systeiiis oiid proc8sses. EAL & Englnulty Sklll8 Llmitgd Together witli our trading subsidiori8s EAL ond Enginiiity Skills Limited we are oble to iiioke o positive difference foi- our benepiciories. EAL supports the Enginuity chority iii the delivery of its objects oiid powiers tlirough tlie developiiioiit: delivery ond validotioii of qualificatioiis ond end poiiit assessiiients via a network of f urther educotion and otliei- traiiiiiig institutioiis, eiiabling individuals to goin nationtsllv recognised qualificatioiis and cgrtificotion. In 2021122 EAL.. rf Ragistared 7T,947 students onto quolificotioiis. rf Issued certificates to 64,109 students recognising their ochievgment8. O Released 12 new qualificatioiis: plus 8iglit EAL Approved courses - o valuoble endorsement whicli serves a kiteiiiark oli the quality of iii-house ti-aiiiing provision. O Aoliioiiod o scoi-c fi"Dlll tIIcii- CLlStoiiici-b 0192.5% rated customgr s8nllce interoctions as 'greotr or'omazing < Processed 121 new centre busing$s18ods ond 30 existing centre business18od8. The Fiiiuncial year 2021122 sawi Eiiginuity Skills Liniited delivei- Its first externol coiitruct to support the cliority. Gomificotion ￿laS used to identify iiidividuals with divei-se sl<illsets that moy iiot liove b8811 recognised tlirough the traditional apprentlcgship application ond iiiterview pi-ocess, to help bl-ing peopla with relevant eKparience aiid adjacent skills iiito a widè raiige of roles. Engilluity's troding $ubsidiori6s pi-ovide.. 13

ENGINUIT TRUSTEES'IDIRECTORS. REPORT (contlnued) FOR THE VEAR ENDED 31 MARCH 2022 o nioin source of funditig for Enginuity by gift aidiiig any surplus. other iioluoble resources which help to sove money. e.g. slioring premises and shored s8rvice functions., opportunitigs to strengthen the qLiolitV, 19ach ond impact of Eiiginuity's work., an effective trading structure to roisg f unds for Enginuitv". a direct woy of furtheriiig our Enginuity's purposes. Further details can be found witliin th8 EAL and Enginuity Skills Liiiiitfjd Annuol Reports for 2021199 of 11 of their key acliievenients and their outlook for the year ohead. l4

ENGINUITY

TRUSTEES' /DI RECTORS' REPORT ( continued) FOR THE YEAR ENDED 31 MARCH 2022

FINANCIAL REVIEW

The Consolidated Statement of Financial Activities for the year ended 31[st ] March 2022 (page 23) shows a net increase in funds of £3,502k (2020/21 increase of £4,234k).

The key drivers of the financiol result were:

• Better than anticipoted financial performonce by both Enginuity ond EAL.

• EAL producing strong incorne growth year-on-year.

• Strong cost control measures.

Investment goins for the year ending 31[st ] March 2022 are £1,985k (2021 gain of £4,707k).

The Charity's funding is derived fro111 the subsidia,·ies' profits, and from delivering projects which address the productivity and skills develop111ent needs of e111ployers and employees within the engineering sector.

The two trading subsidiaries produced a net sut·plus of £3,079k (2020/2021 the net surplus of £1,015k).

The results of the trading subsidiaries are detc,iled in Note 3(b).

RESERVES POLICY

Enginuity holds a prudent level of reserves to suppot·t the ai111s of the chat·ity and to ensure its long term sustainability. The Enginuity trustees believe that a prudent level of held reserves is £30-32111 and any funds ove,· thot amount will be considered by the trustees for investment to further support Enginuity's charitoble octivities.

The Charity will hold free reserves to allow fo,- the continuation of chai-itable work in the event that annual funding from the largest subsidiary (EAL) is unavoiloble as a result of business interruption, necessary invest111ent 01· other circumstances.

The Chority also ai111s to hold reserves at least equal to its share of possible Section 75 liabilities related to the 1TB pension fund (a multi-employer scheme of which Enginuity is a member). At the last available valuation (os of 31st March 2021), Enginuity's share of these liobilities amounted to £13.Srn. To ensure that the charity has sufficient funds to oddress any further increase in pension liabilities 01· the risk of deficit payments following the triennial review which will toke place during 2022 the tt-ustees have agreed to take a consen,ative view and allow for an additional 20%, over and above this valuation, to be included in reserves.

In the unlikely event that the Chcirity should cease to operate, closure costs relating to staff liabilities and facilities costs have also been provided for. The Trustees have allowed for this figure in the calculation of reserves.

Finally, some of the Charity's reserves are invested for the long-term benefit but are e><posed to short term risks. Given the volatile nature of almost all markets around the woi-ld, the Trustees feel that an additional reserve of 20% of the value of the investment fund is an appropriate amount at ony given time.

At 31[st ] March, free reserves were £36.604111 (all rese,·ves cts pet· Note 21, less £25k of fo<ed asset reserves). This is £4.604m above the policy level, which the Board considers to be reasonable. The Boord has committed some use of these reserves to projects in the year to 31[st ] Morch 2023 os part of the annual plc,nning cycle and will continue to review new business cases for 1/\10,·k which furthers the charitable aims.

KEY MANAGEMENT PERSONNEL REMUNERATION POLICY

An ctnnual benchmorking e><ercise is conducted which involves reviewing other organisations within the same/sin,ilor industries and additionally, the Charities and Public sectors. Recommendations are then made to the Remuneration and Pensions Committee where a final decision is made as to the totol reward and remuneration package.

15

TRUSTEES' /DI RECTORS' REPORT ( continued) FOR THE YEAR ENDED 31 MARCH 2022

ENGINUITY

PENSION COMMITMENTS

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Enginuity is a participating employe,- to a defined benefit scheme administered by 1TB Pension Funds. A defined benefit scheme is a pension plan under which the compc,ny pays fo<ed pension to its employees. As a member of the multi-employer scheme where the assets and lic,bilities are not identifiable, Enginuity has accounted fo,- the scheme as a defined contribution scheme to comply with the provisions of FRS 102. Pension contributions are charged to the consolidated Statement of Financial Activities so as to spread the regular cost of the pensions and related benefits over the employees' working lives.

The total cost to the company under both schemes for the year was £233,478 (2021 £251,000).

INVESTMENT POLICY AND PERFORMANCE

The Board's policy, reviewed annually, requires its investments to be managed actively in line with an agreed approach which ensures that appropriate levels of targeted risk is adopted and return is achieved.

The long-term investment return expectations from the portfolio are set as a total return of inflation plus 3.5% per annum, after expenses.

The pe,formance of the portfolio is reviewed quartedy by the Investment Committee in conjunction with the Investment Managern. Market performance is monitored by Portfolio Manager Consultancy Limited who report to the Committee every quarter.

The Investment Fund generated an investment income of £792k (2021 £8llk). The overall Investment Fund increased by £1,985k during 2021/22 (2021 gain of £4,707k).

The impact of world events has impacted mrn·kets and reduced the value of the investrnents in the first two quarters of 2022. As at the end of June, Enginuity's investrnent portfolio had reduced by £1,693k or just over 5%. This is within the bounds set by the Reserves Policy.

DIRECTORS AND OFFICERS LIABILITY INSURANCE

As permitted under the Companies Act 2006 and under the company's articles of association, the choritable co111pc111y has maintained insurance in respect of directors' ond officers' liabilities incu,-red in connection with the discharge of their duties.

FUNDRAISING

The charitable company did not partake in charitable fundraising activities requiring disclosure under S162A of the Charities Act 2011.

16

ENGINUITY TRUSTEES'/DIRECTORS' REPORT (eontlnu8d) FOR THE YEAR ENDED 31 MARCH 2022 RISK REVIEW The Audit Conimittee aiid Board hos coiisid8red the mojor externol business risl<s to which the graup is exposed and wliei-e possiLilg strotggies liov8 been developed to iiiitigate those risks. The Risk Register is regularly reviewed by tlie Audit Coiiimitt8e aiid strategic risks ore repoi-ted to tlie Board. Investrnent risk is moiicJg6d by tlie Investiiient Committ88 in conjunction witli the group's iiivestimeiit mtjiiager tsiid odiiisor. The uncertaiiity ond iiiipacts of th8 recovery of INai-kets tss ts i-esult of the pandemic aiid imorld evei)ts present a key risk to tha Eiigiiiuity Group and this reimaiiis under nioiithly r8vi8w by the Executive teaiii. Tlie poteiitial for oii-goiiig change to sl<ills infi-astructure systeins and process8s could impact on tlie ro16 of Engiiiuity ond EAL. Tlie increosing development by Enginuity of practical solutions uiideri)inned by teohiiology and doto scieiiee is oli ai-ea Iwhere iiew skills aiid ctjijabilities iieed to be deiieloped to m88t tlie iiicreosiiig demond and interest from eniploy8rs. Mitigatiiig actioiis are in placé agaiiist Illl strategic i-isks to help ensure the group remains fintsiieially 178oltliy, ond able to respond to changiiig ext8rnal coiiditions. FINANCIAL RISK MANAGEMENT Tli6 Group aiid the cliai-lty coiiipany arg exposed to a variety of financial risks, the most Slgiiif ioont of wliicli 1$ ii)vestineiit price i-isk wliich ai-lses froiii the volatility iii the mtsrket prices of iniiestiments that are cai-ri8d at fair values. The Group and tlie charity coinpony iiianages exposui-es to price ris1< by moiiitoring the ¢lionges in tli8 niarket pi-ice of tlie iiivestmeiits and. if required: diversifyiiig the iiivestmeiit portfolio in occordoiic8 Wlth sound iiivestnient policv. World ond iiotioiial Bvents vvill eoiitiijue to liaiie o major impact, oll of whicli ore being constontly reviewed and Initlgated by t118 leadersliip teani. STATEMENT OFTRUSTEES (BOARD MEMBERS) RESPONSIBILITIES The ti-ustees Iwlio are olso clii-ectors of Eiigiiiuity foi- tlie PLlI-poses of coiTrpany ILJW) ni'e responsible for pi-eporiiig tlie Trustees Aniiual Report tsiid tlie finuiicial stateiiieiits in accordaiice witli applicable laiw aiid regulations. Coinpony laiNICliarity lovv requires tlie Trustees to prepare linan¢ial stoteiiieiits for eacli riiiancial year in accordance vvitli United l<ingdoiii Generally Accepted Accounting Practice (United l<iiigdom Accounting Standurds oiid opplicable lowl. Under conii)aiiy lawlchority lovv the Trustetts must not approve tlie fiiiaiiciol stutemeiits uiiless tliey ore sotisfied that they give a true and foir view of the state of offoirs of tlie group aiid charity ar)d of tli8 iiicomiiig resources ond application of resources: including th& inconie ond expeiiditure, of th8 gi-oup and chai'ity for tliat period. In prepoi-ing these finat)cial 8tot8rnent8, th& trustees are required to.. Select suituble accounting policies and then apply tlieiii consistentlv=. nAal<e judgenieiits aiid accouiiting estiiiiotes thot ore reasontsljle ond prudent., State whether applicable UK Accounting Stondord$ hove been followed, subject to ony material deiJortures disclosed aiid explained in the financial statenients.. Prepare the financial stat8iMents on tlie goiiig concerii basis unless it is inappropriote to presume that the churitablc group will continue in business. The Trustees are responsibl8 for l<eeping odequote accouiiting records that ore sufficieiit to show ar)d explciin the chority's transactions and disclose witli r¢o8onoble accurcjcy at aiiy time thg fiiiancial positioii of thg ¢hority uiid enoble them to ensure that tlig finoncial stateiiients comply with tlie Compoiiies Act 17

ENGINUITY TRUSTEE8'IDIRECTOR8' REPORT (eontlnuedl FOR THE YEAR ENDED 31 MARCH 2022 006/Choriti8s Act 2011. Thoy org olso responsible for safeguarding the assets of th8 charity and hence for toking roosonoblg steps for the prevention ond detection of froud ond other irregularitie& Th6 trust8&s ara rasponsible for the maintenance and integrity of the corporate and financial information included on th8 choritoblè company's website. Legislotion in the United Kingdom govarning th8 preparation and dissemination of finonciol $tatam8nt$ moy dtFfer from legislotion in other jurisdiction8. STATEMENT OF TO DISCLOSURE TO OUR AUDITORS In so for as thg trustees ora oware at the time of approwng our trustees, onnual report There is no relevant informotion, being inform¢rtion n88d8d by th8 auditor in connection with preporing their r8POrt, of which tho group's ouditor 1$ unoware_ and The trust8es. hoving made enquiries of fellow directors and the group's auditor thot they ought to have indiwdually token, hove each taken all steps that helshe is obliged to take os a director to Inake themselves awore of any relevant audit information ond to estoblish that the ouditor 18 oware of tliat information. AuD￿oR In accordaiice with the Compaiiies Act 2006, 0 rosolutioii Miill be prop08ed ot the Gcnorol Meeting thot Crowe U.K LLP will bo reappointed a8 auditor to tho chai-ltable company for the ensuing year. This rei)ort, which incorporotgs thg Strotegic Report. wos opproved by the Boord on the 2910912022 and signed on its beholf by.. ckttt Enginuity Unit 2. The Orient Centre Groycaine Rood Wotford WD24 7GP 18

ENGINUITV INDEPENDENT AUD￿01r8 REPORTTO THE MEMBERS OF ENQINUITY FOR THE YEAR ENDED 31 MARCH 2022 Indop8nd8nt Auditorf8 Report to the Member8 of Englnulty Oplnlon We have audited the finoiicial stateineiits of Eiiginuity Itho 'charital)le conipany'l and its subsidiori88 (the 'group"I for the year elided 31 March 2022 which coniprise Consolidated Statenient of Fiiiancial Activities: Consolidated Bolaiice Sheet, Chority Balonce Slieet, Coiisolidated Cash Floim Stotgm8nt aiid notes to the financiol statements, including sigiiificant occouiiting policies. The financicjl roportiiig fromework that lias been opplied in their preporotion is applicable low and United Kingdom Accouiiting Stondards: including Financial Reporting Standard 102 The Financial Reporting Stondard applicoble in the UK and Republic of Irelond (United Kingdom Generally Accepted Accounting Procticel. In our opinion the financial statements- givg Q truo and fciir view of the statg of the group's ond the choritable conipony's offoirs as at 31 March 2022 and of thg group.s incoming r8sources and applicotion of resources, including its in¢oin8 ond expenditure for the v@ar th8n 8iic18cI,, liove been pi-oparly prèpored iii occordanea Injitli Uiiitèd l<iiigdom Geiierally Accaptèd Accounting Pi-octlC8'. ond have been preporad in accordance with tho roquiraiiieiits of the Compuiiies Act 2006. Ba818 for oplnlon We conducted our audit in accordonce With International Standards on Auditing (UK) (ISAS {UK)l ond applicabl8 law. Our responsibilities under thos8 Standards are further describod in tho Auditors respoiisibilit18s for tlie auclit of the finoncial stotenients section of our report. We or8 indepei)dent of th8 group in occordance with the ethicol requirenients that ore relovant to our oudit of the finonciol stotemeiits in tlie UK. including the FRC'S Ethicol Standard, ond we havo fulfillod our other ethical respoiisibilities in occoi-dance with these requiremoiits. Ilve believe that tho audit Bvidenco we have obtuined is suffici61)t ai)d aijpi-opriute to pi-ovide a bosis for our opinion. Conclu¥ion8 relatlng to golng concgrn In ouditiiig the finoiicial stotei)1gnts, we Iiov8 concluded thot tlie trvst88 S US8 of the going concern basis of occounting in the preparotion of the fii)ancial stateinents is opproprio Based on th¢ work w9 havé performed: we hove not ideiitified any niateriol uncertointies relating to events or conditions thot, individuolly or colle¢tivaly, moy cost significant doubt c*) the charitable compony's obility to ¢ontinu8 os o going concern for o period of at leost twelve months from when the fiiioncial stutoments oro outhorised for issue. Our i-88ponsibilities ond tlie responsibilities of the tru8tee8 Wlth ro8PSCt to going concern are d8$cribed in th8 1-8levaiit sectioiis of this report. Other Inforniatlon Tho trust80s ore responsiblè for the othar iiiforniation contoined within the onnuol réport. The other information comprise8 the infom)otion includad in th8 onnual report, other thon tha finonciol stotements ond our auditor's report thereon. Our opinion on tho fiiiancial statenients doo8 not cover the other informotion and. except to th9 extent othenNi$e $Kplicidy Stoted in our report, we do not gKpress ony fomi of o$$urance conclusion thgreon. Our r8spoiisibility is to read the other information and, in doing so, consider wh8ther the other informotion is materially iiiconsistent with the financial statements or our knowledge obtoin8d in thts audit or otlierwisa appeors to be materially niisstated. If we identify such nioterial inconsistenci8$ or apparent motoriol niisstcjtements: we ore required to determiiie whetlier this giiies rise to o mat8rial misstotgment

ENGINUITY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENGINUITY (continued) FOR THE YEAR ENDED 31 MARCH 2022 in the financiol statements themselv6s. If: bosed on tli8 work we have performed, we conclude thot there is o materiol misstatement of this otliar informotion: wa ore required to report that fact. We have nothiiig to report in this regard. Opinlon8 on othar mott8r8 pr88crlbèd by thè Companies Aot 2006 In our opinion based on the work undertakeii in the course of our oudit the iiiforniotion given iii the trustges report. which includes the directors, report oiid tho 8tratogi¢ report preiJar8d for tli8 purpos98 of ¢ompony low, for the fiiiancial yeor for which thc finonciol statements oré pr8par8d is consistent with the finaiicial statenients.. ond the strotegic report and the directors, report included within the trustees, report hove been prepared in accordance with opplicoble legol roquir8ment8. Mattars on which we ar8 roquired to raport by oxcaption In light of the knowledge ond understonding of the charitoble company and their eiivironmeiit obtoined in the course of the oudit: we hove not identified niotcrial misstatements in the strategic report or the directors, report included within tho trustec8' report. We have nothing to report iii rgspect of the following mott6rs in r8lotion to wlii¢h th8 Companies Act 2006 r9quir9S US to report to you if, in our opiiiion.. th8 par8nt company has not kept odequote occounting records.. or th8 pol'ent conipoiiy fiiiancial stat8tkients ore not in ogreement Imith the aecounting rocords ond returiis.. or certain disclosures of trustees, i-emunerotion spè¢ified by loiv or8 not made., or we hcjve not received oll the infomjotion aiid explaiiotions we i-equire for our audit. Rg8ponsibilitio8 of tru8t998 As explained Inore fully in tlie trust8es' responsibilities stateiiieiit set out on page 17, th8 trustges (who are also tlie directors of tlie charitable compony for the purposes of conipaiiy lawl are r8sponsiblg for the preparation of the finaiicial stateinents cjnd for being sotisfied that tliey give o true aiid fair view: oiid for sucli ititernol control as the trustees det8rmin8 is nocessary to enable the preparatioii of financial statements that are free from rnaterial misstat81T18nt, whether due to fraud or error. In preporing thtt finoncial statements. the trLlSte8s ure responsible foi. ossessing the charitable compony"s obility to continug os u going coiicern. disclosing. os opplicable: niotiers reloted to going concern ond using the going concern basis of accounting uiiless the trustees either intend to liquidate the choritobl8 oompony or to coas8 oporations, or have no realistic alternotive but to do so. Auditorfs responsibilitios for the audit of the finan¢ial statements Our objectives ore to obtoin reosonoble ossurance about whether the financial stotements os o whole ore Tree rroni nioteriol Inisstotemeiit: whether due to froud or error, ond to issue an ouditor's report that includes our opinioi). Reosonoble assurance is a liigh level of ossui-ance: but is not a guarantee that ali oudit conducted in occordance with ISAS IUKI will alwoys d8t8¢t o material misstatenieiit wlieii it exists. Misstatements can arise from froud or error and are considered moterial if, individually or in the oggregote, they could reosonobly be expected to influence the 8conomic decisions of users taken on tlie basis of these Pinonciol statements. 20

ENGINUITY

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENGINUITY (continued) FOR THE YEAR ENDED 31 MARCH 2022

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

E><tent to which the audit was considernd capable of detecting irrngulmities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified c1nd assessed the 1·isks of material misstatement of the financial statements from irregulai·ities, whether clue to frnud or error, and discussed these between our audit team mernbers. \/\/e then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient c1nd approp1·iate to provide o basis for our opinion.

We obtained an understanding of the legal ond regulc1tory frnmeworks within which the charitable company and group operates, focusing on those laws c111d regulations that hove a direct effect on the determination of matel'ial amounts and disclosures in the financial statements. The laws and regulations we considered in this conte><t were the Companies Act 2006 together with the Charities SORP (FRS102) 2019. \/\le assessed the required compliance with these laws and regulations as part of our audit procedures on the related finoncial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financiol statements but co111pliance with which 111ight be fundomental to the charitable company's and the group's ability to operate or to avoid o material penalty. We also considered the opportunities and incentives thot may e><t for the UI( operations were tmmtion and employ111ent legislation.

Auditing standards li111it the required audit procedures to identify non-co111pliance with these lows and regulations to enquiry of the Trustees and other 111anage111ent and inspection of regulatory and legol co1Tespondence, if any.

\/\/e identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the tin1ing of recognition of income and the ove1Tide of controls by 111onagement. Our c1udit procedures to respond to these risks included enqui1·ies of management, and the Audit Committee c1bout their own identification and assessment of the risks of irregularities, somple testing on the posting of journals, designing audit procedures over income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Chai·ity Commission and reading minutes of meetings of those charged with governonce.

Owing to the inherent li111itations of an audit, there is an unovoidable risk that we 111ay not have detected some material misstatements in the financial stote111ents, even though we have propedy plonned and performed our audit in accordonce with auditing standards. For e><pected to detect non-compliance with all laws and regulations.

21

ENGINUITY INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ENQINUITY {contlnued) FOR THE YEAR ENDED 31 MARCH 2022 U89 of our rgport This report is mode sololy to the chcjritable company's memb8rs. as a body. in accordance with Chapter 3 of Port 16 of thg Companies Act 2006. Our audit work hos be8n undertaken so thot w8 might state to the charitob19 conipony's mombors thos8 mottors wo uro required to state to them in on auditor'g report ond for no othgr purposa. To tho fullo$t extènt pèrmitted by low, wa do notoccept or assume responsibility to onyone other thon the choritoble ¢ompony ond th8 choritoble compony's members as a body. for our oudit work, for this repor( or for tha opinions wo hov8 form6d. Toro Wèstcott Senior Stotutory Auditor For and on behalf of Crowe U.L LLP Statutory Auditor 4thFloor St Jomes House St Jomes Squoi-e Chelteiihani, GL60 3PR Date.. 17 Ortober 2022 22

ENGINUITY

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure)

FOR THE YEAR ENDED 31 MARCH 2022

INCOME AND EXPENDITURE

Notes Income 3b 8 3a 3a 3b 7 11 21 21 Other trding actil1its Income from trading subsidiaries Investment income Charitable activities E>Other\ **Total income**\ **Expenditure on**\ **_Raising fds_**\ E><penditure of trading subsidiaries Investment managers' fees Total cost of raising funds Chartable acts: Improving access to learing and encouraging people into careei-s in the sector Promoting and representing the sector Developing and supporting occupational standards and learing frameworks Research into skills gaps and shortages Othe,- Total charitable activities Total expenditure Net income/(expenditure) before gains on Investments Net gains on investments Net movements in funds Total funds brought forward Total funds carried forward All activities are continuing.

2022 2021 £'000 £'000 10,390 8,121 792 811 711 262 264 196 12,167 9,390 4,216 3,311 56 49 4,271 3,360 3,345 3,881 690 371 1,246 1,188 265 363 833 700 6,369 6,503 10,640 9,863 1 (473) 1,986 4,707 3,502 4,234 33,127 28,893 36,629 33,127

The notes on pages 28 to 44 form part of the accounts.

23

ENGINUITY

CONSOLIDATED BALANCE SHEET

AT 31 MARCH 2022 (Company Number 02324869)

Notes FIXED ASSETS Tangible assets 10 Investments 11 CURRENT ASSETS Stocks 13 Debtors 14 Bank and cash balances CURRENT LIABILITIES Ci-editors: Amounts falling due within one yem 15 Provisions 17 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after one year 16 NET ASSETS 22 FUNDS AND RESERVES Unrestricted reserves 21	2022 £'000 26 32,670 32,696 32 1,864 4,901 6,797 (1,366) �,4 ) 3,933 36,629 0 36,629 36,629	2021 £'000 105 31,686
		31,791
		32 1,695 2,483 4,210 (1,474) �,35 1,361 33,152 (25) 33,127 33,127

The financial statements were approved and authorised for issue by the Born-d on t 29/09/2022 and were signed below on its behalf by: Chair

The notes on pages 28 to 44 form part of the accounts.

24

ENGINUITY

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2022

Cash provided by/ (used by) operating activities Cash flows from investing activities Investment income received Poyments to acquire investments Cash withdrawn from investments Receipts from the sole of investrnents Cash provided by investing activities Cash flow from financing activities Repovments of finance leases in the veor Interest paid on finance leoses Cash not provided by financing activities Net increase in cash Cash and cash equivalents at start of year Cash and cash equivcilents at end of vear Analysis of cash and cash equivalents Cash at bank and in hand Notes a)		2022 £'000 702 792 (36) 1,000 36 1,792 (81) 6 (76) 2,418 2,483 4,901 4,901	2021 £'000 (1,122) 811 (527) 2,001 500 2,785 (81) 5 (76) 1,587 896 2,483 2,483

Refe,- to note b) for the anolysis of changes in net debt.

26

ENGINUITY

CHARITY BALANCE SHEET

AT 31 MARCH 2022 2324869)

(Company Number

FIXED ASSETS Tangible assets Investments Investment in subsidiaries CURRENT ASSETS Debtors Bank and cash balances CURRENT LIABILITIES CREDITORS: amounts falling due Within one year NET CURRENT ASSETS/ (LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS: amounts falling due after one year NET ASSETS FUNDS AND RESERVES Unrestricted funds Notes 10 11 12 14 15 16 22 21	2022 £'000 26 32,670 32,696 4,164 652 4,716 (892) 3,824 36,620 0 36,520 36,520	2021 £'000 105 31,686 31,791
		520 2,483 3,003 ( , -) -,0( ( 626 32,417 (25) 32,392 32,392

In accordance with section 408 of the Companies Act 2006, a separate Statement of Financial Activities for the charity has not been presented. The result for the charity was a surplus £1,917k (2021: surplus £4,194k).

The financial statements were approved and authorised for issue by the Board on the 29/09/2022 � s:gned below on ;ts behalf by, �

J Hackitt

Chair

The notes on pages 28 to 44 form part of the accounts.

25

ENGINUITY

CONSOLIDATED CASH FLOW STATEMENT (continued)

FOR THE YEAR ENDED 31 MARCH 2022

a) Reconciliation of net incoming resources to net cash inflow from operating activities Net mo\/ement in funds ln\/estment income Depreciation Decrease in creditors (lncrease)/Decrease in debtors Net gain on in\/estments Mo\/en1ent in provisions Net cash provided/(used by) by operating activities At beginning of the year £'000 b) Analysis of changes in net debt Cash and cosh equi\/cdents 2,483 2,483 Finance leose obligations due in 1 yeor (25) Finance leose obligations due in more (75) thon 1 year 2,383

Cash flows £'000 2,418 2,418 75 2,493 2022 2021 £'000 £'000 3,502 4,234 (792) (811) 79 82 (59) (119) (169) 429 (1,985) (4,707) 126 (230) 702 (1,122) Non cash At end of movements the year £'000 £'000 4,901 4,901 (25) 4,876

The notes on pages 28 to 44 form part of these accounts.

27

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. GENERAL INFORMATION

Enginuity is a charitable company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006. The address of the registered office is shown on the Advisors page. The nature of the charity's operations and its principal activities are outlined in the Trustees'/Directors' Report.

2. ACCOUNTING POLICIES

The principal accounting policies adopted, judge111ents and key sources of esti111ation uncertainty in the preparation of the financial state111ents are as follows:

Basis of preparation

The financial state111ents have been prepared in accordance with Accounting and Reporting by Charities: State111ent of Reco111111ended Practice c1pplicable to charities preparing their accounts in

accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP 2[nd ] Edition (FRS 102)), the Financial Reporting Standard applicable in the UI( and Republic of Ireland (FRS 102) and the Companies Act 2006.

Enginuity rneets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost o,- transaction \/cilue unless othernvise stc1ted in the rele\/ant accounting policy notes. All of the expenditure incurred by the Enginuity is for charitable purposes.

The presentation currency and functional currency of the Charity is pounds sterling, and is rounded to the nearest thousand pounds.

Parent charitable company disclosure exemptions

In preparing the separate finc111cial state111ents of the parent charitable co111pany, ad\/antage has been taken of the following disclosure exe111ptions a\/ailable in FRS 102:

• No cash flow state111ent has been presented for the parent chai-itable co111pany;

• Disclosures in respect of the parent charitable co111pany's financial instru111ents ha\/e not been presented as equi\/alent disclosures have been pro\/ided in respect of the Group as a whole;

• No disclosure has been gi\/en fo,- the aggregate re111uneration of the key 111anage111ent personnel of the parent charitable co111pany as their ren,uneration is included in the totals for the Group as a whole.

Going concern

The directors ha\/e assessed whether the use of the going concern basis is appropriate and ha\/e 111ade this assess111ent based on forecasts to the end of 1\/lmch 2024. As part of their assess111ent the directors have considered the i111pact of Co\/id-19 and 111arket conditions. The directors ha\/e concluded that there is a reasonable e><pectation that the co111pany has adequate resources to continue in operational existence for the foreseeable future and continue as a going concern, with cash balances re111aining healthy and positive throughout the forecast period. The directors do not consider that there ore any sources of estimation uncertainty at the reporting date that have a significant risk of causing o mate,-ial adjust111ent to the carrying a111ounts of assets ond liabilities within the next repo,-ting period.

Financial statements

The financial statements consolidate the results of Enginuity and its subsidiaries on a line by line basis. Please see accounting note 3 fo,- further details.

28

ENalNUITY NOTE8 TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 MARCH 2. ACCOUNTINQ POLICIES {oontlnued) Incomlng rg8our¢e8 Iiicomo i-opresents the aiiiount i-eceivable for goods and sgriiices foi. the poriod but axcludés volue added tox aiid trode discouiits. All income is recognised once the eharitabb group lia8 eiititloiiigiit to the incoiiig, It 181)robob18 tliat the iiicoine wiill ba received and the amount of income rocoivoble can be nieusui-ed rglioblv. Awarding Orgonisotion Income is recognised at the regi8tration of th9 leuriiers i.e. LIP fi'ont ai)d befora all leorners hove completed tlieir qualificatioiis. TIIis 18 in lin9 Wlth our coiitroetuol comniitments. Inconia from inv8stm6nts represents interest from bank deposits. Int81-8St on funds hgld on d8POSIt is recogiiisèd when receivoble ond the ainount con bo nioasured i-eliably by th9 ¢hority.. this is normally upon notrfication of the interest paid or payoblo by tlie baiik. Dividends are recognised once the dividend h08 been dèclorèd ond notification hos b88n receiv8d of the dividend due. This is normally upon notification by our investmgnt odvisor of th8 dividènd vi8ld of the investment Pt)rtFolio. Gftald The charity owns the whole of the issuad ordinory shore copital of Exceifence Achi8vem8nt & Leorning Limited: ond Enginuity Skills Limited {see note 121. Enginuity is a re9lStered charity ond os stjch is entitled to cartoin tox exemptions on incom8 and profit fi-oim ir)v8St1118nts and surpluses on troding activities carried out in the furthgronce of the Clioi-rty's priiiioi-v objectives if tliese pi-ofits oiid sui-plusas ore opplicd solely for charitable purposes. The UK subStdi￿rY componie$ give oll their taxobl¢ profit$ to the Chority, normally resulting in no liability to corporotioii tox. Gift old is recognised on the oc¢i'u(Jl'$ basis in line with the d¢ed of covenont. Resources axpended Resources eKpended are included in the Statement of Financial Activities on on acerual's basis, inclusive of ony VAT which caniiot be recovored. Certoin eKpeiiditui-e is directly attributable to specific activities ond hos b8811 included In tliese c08t categories. Support costs which caniiot bo directlyollocated ore apportioned ocross tli8 cot8gori88 011 tlig bo$is of ali estimote of tlie proportion of time spent by staff on those activitie Costs of roising funds are costs iiicurr8d in attracting voluntary income ond tho$e in¢urred in trading activities that roise funds. Governonce costs form part of support costs are for the chority. These include the eKternal audit fee and on assessment of the time speiit undertaking company secretoriol resFK)nsibilities. All expenditure is recognised once there is a legal or constructive obligation to tronsfer economic benefit to a third party.. it is proboble thot a transfer of economic benefits will be required in sèttlement ond tha amount of the obligotion con be meosured reliobly. Interest expenses are charged to the Statement of Financial Activ￿1￿8 overthe term of the debt using the effective interest method so that the amount chorged is at o constant rote on the ¢orrying amount. Issue costs ore initially recognised os a reduction in the proceeds of the o&socioted capitol instrument. 29

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022 ACCOUNTINQ POLICIES {continued) Tangible fixed assets Tangible fixed ossets under the cost model are stoted ut historical c05t less accumulat8d dei)reciotion and ony u¢¢uniulotod ii)Ipoirment losses. Historical cost iiielLides expenditure that IS directly uttributab18 to l)ringing the asset to the location and condition necessai-v for it to be capable of operating in the manner int8nded by monogement. Depreciotioii is chorged so os to allocate tlie cost of assets less their residual volue over their 8Stimat8d usefLII Iiv8s, on o r8duciiig balance basis. D8pr8ciatioii is provided on the following basis.. Year8 OFfice furi?iture Equipmeijt 10 The ossets. residuol values: useful lives and depreciation rnethods are rev*e￿Ied. ond odjusted prospectively if appropriate, or if there is cin indication of a significant chang8 sinc8 the lost reporting dote. Gains aiid losses on disposols are determiiied by oomparing the proceeds with the carryiiig amount ond ore recognised in the Statement of Comprehen$ive Income. Fixgd asset investments Investments ui'e stoted ot niorket vulue 0$ at 31 Mor¢h 2022. Reolised oiid unr8alis8d goins ond 10sse8 (Jre released or chtsrgÈd to tlie coi?801idated Statement of Finonciol Activities in the y8ar in which they arise. The investment in subsidiaries is stoted ot the lower of ¢ost ond net QS8et volue. Stock8 Soleable publicotions are valued at tlie lothfer of produciion cost and net reoli8oble volue. Dgbtor8 Short term debtors are nieasured ot transoction price. less any inipoirment. Loans receivable al-e measured initiolly at foir volue, net of transactioii costs, ond ore measured subsequeiitly at oniortised cost using the eff&ctive ii)tei-est method, less ony impoirment. Ca8h Cash is represented by cosh in hand and deposits with financiol institutions repayoble without penalty on notice of not moro than 24 hours. Cr8ditor8 Short terni ci-editors are measured at the transaction price. Other finonciol liobilities. including bank loans, are msasured initially at fair value, net of transaction costs. ond ore meosured subsequently at amortised cost using the effective interest method. 30

ENGINuir NOTES TO THE FINANCIAL STATEMEKfs (continu8d) FOR THE YEAR ENDED 31 MARCH 2022 2. ACCOUNTING POLICIES {contlnuod) Provislon forouolificatlon Costs Prov181on8 Provi$ion8 are r8cognis8d wh8n there is a prosont logol or constructlV8 01)ligatioii as a i-8suIt of a pust event. it is probab18 thot o transfer of economic bengfit will be r8quii-8d to settle the obligotion und a reliable estimote can b8 made of th8 amount of tlie obligotion. Flnonclal In8trum8nts in017ciJlossets Finoiiciol a88ets, othei. thon Inve8tmgnt$, L)re initially m8osured at transaction price (including transactioii cost81 ond $uk)$oqu8ntly held ot cost,108s oiiy inipoir111811t. Finunciul assets that are meosured at cost and amortised cost or8 ossessed ot the end of each reporting period for objective evidence of impuirment. If obje¢tlV8 evideiice of inipoirm8nt is found, on impoirment loss is recognised in th8 consolidated Profit ond Los8 Account. For finaiicial ossets measurod at ainortlS8d cost, the iinpoiringnt loss is nieosured as the difference betwaen an usset's cari-ying amount and tho pr888nt valu9 of gstiniated cash flows discounted at the assot s originol effe¢tivo intgrost l-ate. If a financial asset has a vorioblo interest rat8: tha discouiit rote for iiieasuring aiiy inipaii-ment loss is the current effective iiitei-est rote deterinined under the contract. Financ￿//1￿￿11￿es andequity Finonciol liabilities and equity are classified according to the substance of the financial instrument's controctual obligotions, rather than the financial instrument's legal form. Financial liabilities are initially measured at traiisaction price lincluding transaction costsl and subsequently held at aniortised cost. Fiiiancial assets oiid liabilitias al-e offset and the iiet amount i-aported in tlie Bolaiice Slieet when there is on enforceable right to set off the recognised amounts ond thero is on intention to settle on o net basis or to reolise tha assat and Sett￿ tho liability simultaneouslv. Qrants poyablo Gronts poytsble to othar orgonisotions ore ogra8d as port of the Busin688 Plonning procass. The cost is chargèd to the Statemeiit of Fiiianeiol Activitias in the period to whicli thè gront r8lotes. Fund accounting The genèral Tr-eserve lunrastricted funds) conipri8¢s of those monies thiliicli nioy be usod towai'ds furthering the charitabl¢ obi8Cts. There wo8 o net loss reluting to rostrictgd fuiids which l)08 bgon covered by o movement from tlie unrestricted generol funds. Leo80d 0888t&" Lw800 Ihlh81'$ Qssats or8 firbonced by 18asing ogro8ment8 that give rights opproximoting to ovmership Ifinonc9 Ioos8sI, the osset8 ar8 trecited 0$ If they had been pur¢hosed outright. Tho omount copitolis9d is the pr88gnt volu8 of the niinimuim18ose payiiiei)ts poyoljlo over the term of th8 leo$8. The coi'responding leosing comniitmeiits orts sliown as amounts i)(Jyoblo to the lessor. Doprocicjtion on the r91evant assots is charged to profit or loss over the shorter of 88tinioted useful 8¢ononii¢ life ond the t9rm of the leoso. Finon¢e1gose payments ore onolys8d b8tWe8n ¢opttol and interest components $0 thot the interest alei719nt of the payni8nt is chorg8d to proftt or loss over the t¢m) of the loose and is colculot8d so that it l-gprgs8nt8 o constant pi-oportioii of the balonce of Copitol repoynients out8tonding. The copitul port r()du¢es tlie aniounts puyable to the les80r. All other leoses or8 treated as operating le08e8. Th8ir onnual r8ntal8 ore charged to proflt or108s on 0 8traight-ling basi8. 31

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS {eontinuod} FOR THE Y&4R ENDED 31 MARCH 2022 ACCOUNTING POLICIES (¢ontinuod) Pension8 Th8 company operotes a defined contribution plon for its 8mployges. A defined contribution plon is a peiision ijloii under wliich the compony poys fixed coiitributions into a separate eiitity. Onc& the contributions hove been paid the conipony lias no furth8r poynient obligations. The contribut10118 ore recognised as an expense in the statem8nt of coiiiprehensive inconie thfh8n they fall due. Aniounts not puid ore shown in accruals as a liability in the statement of finoiieiol position. The assets of the plon ore lield separately froni tlie company iii independently adniinistei-ed funds. Enginuity is a porticipating 8171ployerto a defined benefit schem8 odministered by ITB Pension Funds. A definecl beiiefit scheme is a P8nsion plon ui)der ￿1hICh the company pays fixed pension to its eiiiployees. As a rnemljer OT the niulti-employer schenie wliere the assets ond liobilities are iiot identifiuble: Engiiiuity lios uccounted for tli8 scheiiie as a defined contribution schenie to coniplv witl) the provisions of FRS 102. Peiision contributioiis are charged to the consolidated Stutenient of Financial Activities so os to spread the regular cost of the pensioiis aiid related b8iiefits over the employees, workiiig lives. Judgements and kay oroas of 98timatlon uncertainty In preparing these financiol statement8: the tru8tees haiie had to moke the followiiig judgenients.. Provi&ion for Qualification Costs To deterniine the volue of registrations ond framework costs to accrue to the statement of financial position ot yeor end. Tliis decisioii depends on an assessment of tlie amount of outstaiiding quolificotions leorners liove for registei-ed ¢ours8s. It is considered tliat tlie current provision is adequate to support leoriiei's achieve their quolificutions within 5 yeurs. L6a8e8 Determine whether leases eiite1-ed into by the conipony either os a lessor or a lessee are operating leuses or finance leases. Tliese decisions depend on an assessmeiit of wlietlier the risks and rewurds of ownership have been ti-ansferred from the lessor to the18ssee on o lease by lease basis. Impalrm8nt Doterniino whethei- there ore indicotors of impairment OT the company's tongible tsssets. Factors tokon iiito consideration in reachino such o decision iii¢ludc ths economic viobility and expected future financial porfoi-mance of the asset ond where it 18 o component of a lorger cosh-generating unit, the viobility and expected future peiformunce of that unit. Tonglbl8 flxèd 0888ts Tongible fixed 08SOts are dapreciated over their useful lives toking into account residuul iialues, where oppropriote. Tho actuol lives of the ossets oiid residuol volucs are assessed onnually oiid may vory depending on the number of fuctors. In re-ossÈssing u8set lives, factors such as technological innovotion, product lif8 cycles and n)aintenance progroiiirnes ore taken into account. Residuol value oss¢ssment8 consider issues such as future market conditions: the reniaining life of the osset ond projected disposal values. INCOMING RESOURCESAND NET MOVEMENT IN FUNDS a) Analy818 of Income The group h08 Only or)e class of activity. The niajority of groLJP Q¢tivities are conducted in the United Kingdom. Excellence Achievement & Learning Limited IEALI conducted business with centres outside the UK totolling £61,799 in the yecJr12021.. £105,404). 32

ENL41NUITY NOTES TO THE FINANCIAL STATEMENTS {¢ontlnuod) FOR THE YEAR ENDED 31 MARCH 2022 Analy815 of In¢ome Icontlnuod} Externolly funded projects income repi-9$9nts tlie contribution to Enginuity for staff tinie spent on projects funded by the UK governmgnt oiid other stal<eholders, this iiicome totalled £711.164 in the vear12021'. £231,164). Other inconie rèpresents the cliai-gg to EiigiiiLiity custoiiiers for s8rvices provided by tlie cliarity. Thi5 rolotes to incoiiie generated tlirough certification of leoriiers: and deiielopnisnt of Nationa O¢cupotioii stondards for devoliied r)ations. Tliis iiicoiiie totalled £264:272 in the year 12021.. £196,000). Income fi-oiij troding subsidiaries reprosants the turiiover of the eharity's trading subsidiaries included iii Eiiginuity s accounts. 33

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 MARCH 2022 INCOMING RESOURCES AND MOVEMENT IN FUNDS (CONTINUED) b) Re8uIt8 of trading subsidiario$ The chority owns 100% of the allotted ordinary shore capital of the following componie8 which are incorporat8d in the UK.. Excellenee Acliievement & Learning Limited IEALI is thè owording organisation for vocationol qualifications primarily in the engineering sector. Engiiiuity Skills Limited d&liv8rs certoin contracts ond commitment for third porties in the eiigineerir)g and mai)ufacturing séctor$ wliich Enginuity the charity moy iiot be able to entei- Iiito itself. A sunimory of tlie trading results included iii th8 ¢On801idated accounts is shown bèlow. Audited accounts for each subsidiory entity hovo been filed with the Registrar of Compc]nie8. Enginuity Ski118 Limited £'ooo 022 Total £'ooo EAL £'ooo Total £'ooo Income: Income 10269 121 10,390 8.121 Total Incoma: 10269 10.390 8.121 Expenditure: Staff costs 2.808 11 2.819 2.900 Other 01)eroting cliorges 4.410 4.492 4208 Total Expenditure: T218 93 7,311 7.108 Net gurplusl{deficit) Gift Aid to Eiiginuity 3.061 28 8,OT9 1,013 13.0511 {281 13,OT9) 19T3) 34

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS {continu8d) FOR THE YEAR ENDED 31 MARCH 2022 STAFF COSTS Group 2022 £'ooo 2021 £'ooo INages and solories Sociul sgcurity cliargès Othsr pensioii costs 4.983 620 234 4635 509 251 5.737 5,395 Included within wages aiid salaries are agency staff costs of £nil12021 £27,976) for the year. During the yeor tlie groui? Iniide tei-lrination poynieiits of £254:56612021.. £214,319). 35

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS (contlnu8d) FOR THE YEAR ENDED 31 MARCH 2022 STAFF COSTS {continued) The aveTr-ag8 monthly number of persons employed by thg Group during the year wos 0$ follows: 2022 2021 By the Qroup Troiiiing services Support services T4 23 16 9T 103 Charity The parent chority's stoff costs are as follows.. 2022 £'ooo 021 £'ooo Wages and saluries Social security chorges Otlier pension costs 2.492 274 2.351 279 103 2.89T 2.733 Thc aiicroge monthly iiumber of persons employed during the year by tlie parent cliarity was as follows-. 2022 2021 Trainin9 sei-vices Support Services 18 23 39 38 Emolument8 of employ8è8 Tlie nuiiib81- of 81nployees whose emoluments os defined for toxotioii purposes exceeded £60:000 pei- or)num during th& period Iwas os follows-. 2022 2021 £60:001- £TO,000 £70,001- £80,000 £80,001- £90.000 P90.001- £100.000 P100.001- PI10,000 £110,001- £1?0,000 £120.001- £130.000 £140.001- P150.000 £150,001- P160,000 £190.001- 2930.000 £290.001- £220.000 Totol Thè totol of l<oy monog8mtsnt personnel compensation for the year was £818,71012021 £f89:9011. 36

ENGINuir NOTES TO THE FINANCIAL STATEMENTS Icontinuod) FOR THE YEAR ENDED 31 MARCH 2022 STAFF COSTS Icontinuad) Tru8ta68' ramunerotlon During the year, in occordance with the Articles of Association of th9 charity, poyinsnts were made to the Chaii-iiiar) totalling £37,2T312021 £35.0001. Tlie total amount of expenditurè reinibursed to thi-ee Boai-d memljers in respect of é)(p8nses ii)curred on the cliai-ity"s octiiiitigs I￿￿$ £9991?091'.iiill. No other trustees received oiiy r8niung1-ation12021.. £Nill. 6. NET INCOMING RESOURCES Net incoming rasourcgs ore orrived at after chargiiig the following.. 2022 £'ooo 2021 £'ooo Auditor's r&niun8roJtion Audit services Tax compliance $8rvice8 Other non-audit service8 Operating lease reiituls-motor vehicl88 Depreciation 40 51 35 88 47 17 82 Auditors. reniuneratioii includes £4,400 in rospect of tlie audit OF the porgnt charity19021." £21.0001 oiid £11,600 iii respsct of tlie audit of tlio 8ub8idiary undertokiiigs12021.. £19,000). Fees iii relation to noi)-oudit serviceg were £35,00012091 £46:9011. EXPENDITURE ON CHARITABLE ACTIVITIES 2022 Total ¢08ts £'ooo Dlrgct costs Support costs St(rff No'8 £'ooo £'ooo Iiiiproviiig ac¢o8S to leai-ning Pronioting and ropros6ntiiJg the sector Developing ond supportiiig oecupotional stondai-ds aiid leariiiiig fi-anièiNorks R8seorch into skills gops and sliortoges Other charitablo costs 1.880 436 1,465 255 3.346 690 138 1.110 266 1,246 55 833 768 12 3209 3,160 6,369 37

ENGINuir NOTES TO THE FINANCIAL STATEMENTS {contlnued) FOR THE YEAR ENDED 31 MARCH 2022 EXPENDITURE ON CHARITABLE ACTIVITIES ICONTINUEDI 2021 Total ¢08ts Direct sts £'ooo Supp¢Yt costs Staff No's £'ooo £'ooo Improving ocees8 to leorning Proi))oting ond represeniing the sector Developing and supporting occupational stondords aiid leorning fromewoi-ks Reseai-ch iiito skills gops ond sliortages Otlier choritable costs 1429 189 1,452 182 3,881 280 908 363 T5 1188 363 700 825 16 3.523 Z980 6,603 Support costs hove been allocoted ooross tho charituble octivities based on average full-tiine gquivalent heodcount in the chority, os tl)i$ bosis is consistent with the use of the resources. Goiiernance costs are included within support costs and totalled £63.69112021 £75,0001 for the pei-iod. Governance costs eoiisist of Clioirinon's remuneration, group's audit re8s ond expenses reimbursed to Boord 1nen)bers iii respe¢t of sxpens8s incurred on the chority's activit18S. 8. INVESTMENT INCOME 2022 £'ooo 2021 È'ooo Income from fixed osset iniiestinents 792 811 9. TAXATION Enginuity is o registered chority and therefore is not lioble for iiicome tax or corporation tax on incon)e dei-ived from its charitable actiiiities: as it folls withiii th8 vorious exeniptions ovoilable to registered elitsrities. 10. TANGIBLE FIXED ASSETS Office furniture & equipment £'ooo Total £'ooo Group Cost At1 April 2021 1,026 1,028 At 31 Marcli 2022 1,026 1,026 Depreciation At1 April 2021 Charge in year 921 79 921 At 31 Morch 2022 1,000 1,000 Net Bookvalue At 01 Marcli 2022 26 26 At 31 Morcli 2021 105 38

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 MARCH 2022 10. TANGIBLE FIXED ASSETS (continued) Offlc furnlture èqulpmant £'ooo Total £'ooo Charitv Cost At1 Api'il 2021 794 724 At 31 Marcli 2022 794 724 Depraci(rtion At l Api-il 2021 Chorge in year 619 819 79 At 31 Marcli 2022 698 898 Net Bookvalue At 31 Morcli 2022 26 28 At 31 Morcli 2021 105 106 The net book value of tangible fixed assets held under a fiiiaiice19a$8 for tl)6 group ond thg chai-ity ios £25,06412021.. £100,7351. 11 FIXED AS8Ef INVESTMENTS 2022 £'ooo 2021 £'ooo £'ooo COIF BNY Charity Mollon Funds £'ooo Group ond Charlty Bolonce1 April 2021 at Inarl<et valu8 Additioiis Disposols Unrealisod 9oin on revoluotion 22,864 36 1361 1,985 5.686 28,550 38 {36) 1.985 30.535 23,817 527 15001 4.TOT 8.551 Cash awaiting investmeiit .135 2,136 3,135 8olon¢e ot 31 March 2021 ot iiiarket value 32,670 31,686 Historicol cost of inv88tnients 30,254 31,217 The iiet gLJiTri on r6voluotion wias £1,985k1gOQI £4:707kl. Enginuity lias iiiv6Stiiients in the COIF Choi-ity Funds totalling £24.5M equivalent to1.2TT.292.38 units at yeor snd. Th8 investnient is only avoilob18 to charities within tli8 meaniiig of section 1111 of the Charit18s Act 9011. 39

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022 11. FIXED ASSET INVESTMENTS (oontlnuadl 2022 É'ooo 24.849 2021 £'ooo 22,884 COIF Cl)arities iiivestment fund income units COIF Cliorities deposit fund BNV Mellon Raol R6turn fund Newiton Inst. Shor¢$1 lin¢1 5,686 12 INVESTMENTS IN SUBSIDIARIES 2022 E'OOO 2021 £'ooo Charity Shores at cost Long term loan 61 5,980 51 Impairment provlslon Balunce at1 April 20?1 and 31 March 2022 161) 18: (511 Thg iinpairmgnt provision is to write down Engir)uity investment iii its subsidiary componies. Thg chority owns 100% of the allotted ordiiiory shore capital of the following subsidiaries, oll of which ore registergd in Englond Wale8'. Exco11once Achievemont & Learning Llmltod (company ragistrotlon no 02TOOT80) A compoiiy regist9red in England cind Wales which pi-ovides tlie assessment systems for awording vocational quolifiootions primorily in the engineering sector and octs as the awarding body for those quolif icotions. Enginulty Skllls Llmlted (Compuny roglstratlon no12Tt26301 A compony regist8r8d in Englaiid and VVal8s wIIos8 priiicipal uctivity is the provision of projects for spgcif ic commèrciol partn8rs within t118 8ngin8ering sector. Metskill Limitod (company registration no 024666T41 A coiiipaiiy r8gist8r8d in England and Wa18s whos8 principal activity is the provision of uppreiitice traiiiing services to itliprove perforimance of businesses in tlie 8ngineering ond Imonufacturing sectors. The companyceased trading on 31 July 2020. National Sknll$ Academy for Manufacturing Limited {company registration no 02T07096) A compoiiy registered iii Englond ond Woles whicli develops and impl8m8nts national standards for nianufocturiiig ski115 delivery. The company ceas8d active trading 31 March 9020. Training Propgrtie$ Limitod {¢ompony regi$tration no 023n840) A conipony registei-ed in Etiglaiid atid Wales wliich operates as a property managei- within Great Britaiii. The company ceased trading 18 June 2018. Training Publications Limited (company registrotion no 027007841 A company i-trgistered in Eiigland and Wales which operates as a publishing and printing op8ration within Great Britain and ceosed active ti-ading on 31 Thlarch 2005. All the subsidiories: except for Excellence Achievement a Learning Limited aiid Enginuity Skills Limited. al-e doi-nioiit. The registered office of ull of the above subsidiories is Unit 2, The Orient Centre: Greycaine Road: Wtstford. WD24 TGP.

ENGINuir NOTES TO THE FINANCIAL STATEMENTS {contlnugd) FOR THE YEAR ENDED 31 MARCH 2022 13. STOCKS Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Resaluble i)ublications 32 32 14. DEBTORS Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Amounts falling due withln one yaar Trade clebtors Aiiiouiits owed by SLibsidiory uiid81-takiiigs oEhei- debtoi-s Pi-eijayiiieiits Acci-ued iiicoii)e 1.294 927 3.T35 82 481 205 81 234 205 160 226 1,864 1695 4.164 520 Bad d8bt recognised for the group dui-iiig tlie year os on expensg iwos £13,36212021.. £2001- 16. CREDITORS: amounts falling due withln one y&ar Group 2022 £'ooo Chority 2022 £'ooo 2021 £'ooo 2021 £'ooo Trade ci-8ditors Taxotion und socicil security Other creditoi-s Acci-uols Finaii¢e leose liabilitie5 Defei-red in¢oiiie Inote 181 Aniount owgd to subsidiary uiidertakings 318 448 383 358 256 340 32 262 296 358 51 994 75 201 1,172 494 25 24 326 75 201 1.386 1.474 892 2,377 Dui-iiig the yeor iiitercompany loan balances were Iwritteii orf to the value of £Nil12021 £Nill. All otlier balances ure interest fl-ee aiid repoyable on demaiid. 16. CREDITORS: amounts falling due aftgr ono yoor Group 2022 £'ooo Charity 2022 £'ooo 2021 £'ooo 2021 £'ooo Finance lease liobilit18S 26 25 25 95 41

ENGINUITY

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022

17. PROVISION FOR LIABILITIES Balance at 1stApril Amount released to costs Amount provided Balance at 31 March	Group 2022 £'000 1,376 (1,376) 1,499 1,499 Charity 2021 2022 2021 £'000 £'000 £'000 1,605 (1,606) 1375 1,376

This provision represents the costs onticipated to support students who have registered with EAL ond still have units of leorning or exominotions to complete to achieve their qualifications, over the next 5 years.

In the accounts for the year to 311\/lmch 202·1, this liability 1/1/CIS shown os Deferred Income. It was reclassified in the year to 31 1\/lrn·ch 2022.

18. DEFERRED INCOME

DEFERRED INCOME Balance at 1 April Amount released to income Amount deferred in the period Balance at 31 1larch	Group 2022 £'000 201 (201) 24 24	2021 £'000 201 201 Charity 202 £'000 201 (201) 4 4 2021 £'000 201 201	2021 £'000 201 201 Charity 202 £'000 201 (201) 4 4 2021 £'000 201 201
			201

Defe1-red income of £23,500 (2021: £200,549) relates to externally funded projects both from customers within and outside of UI< with deliverables between 1 to 3 years.

19. FINANCE LEASE AGREEMENTS

The group had the following finance leases in relation to IT equiprnent:

Due in: Less than one yeor One to five years 2022 £'000 25 25	2021 £'000 75 25 100

20. OBLIGATIONS UNDER OPERATING LEASE AGREEMENTS

At 31 1\/lorch 2022 the group has future minimum lease commitments os follows:

Expiry date Less than one year One to five years 2022 £'000 20 10 30	2021 £'000 244 318 562

42

ENGINUITY NOTES TO THE FINANCIAL STATEMENTS Icontlnugdl FOR THE YEAR ENDED 31 MARCH 2022 21. FUNDS AND RESERVES 022 £'ooo 2021 £'ooo GBnoral unrestricted reservg Group At l April Realised ond Unr8alised gains on iniiestments Incoino r8ceii18d Expenditure 33,12T 1,986 12,167 (10.6401 28,893 4,T07 9,390 19,8631 At 31 March 36.629 33.12T Charity At l April Realised & Unrealis8d gains on investments Income Received Expenditure 32.392 8,T87 1.767 (6.426) 28,198 9,503 1,238 16.5471 At 31 Morch 36.620 32,392 22. NET ASSETS/LIABILITIES Group Chority Unra8trict8d Unrostricted Unr98tricted Unrestricted funds funds fund8 fund$ 2022 2021 2022 2021 £'ooo £'ooo £'ooo £'ooo Tangible fixed asséts Iiivestiii8nts Curi-ent assets Cui-i-&nt liabilities Non-current liabilities Provisioiis 105 31.686 4,210 11.4751 1251 11:3T41 26 32,670 4,716 (8921 105 31.686 3,003 12,3TTI 1251 32,6TO 6,79T 0,365} (1,4991 36,629 33,127 36,620 32,392 43

ENGINUITY

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022

23.	FINANCIAL ASSETS AND LIABILITIES	2022	2021
		£'000	£'000
	Group
	Financial assets measured at fair value
	through profit or loss	30,535	28,551

Financial assets measured at fair value through profit or loss include the investments.

24 LIABILITY OF MEMBERS

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up members are required to contribute an amount not exceeding £1.

25. RELATED PARTYTRANSACTIONS

Due to the nature of the charity, most trustees will be associated with organisations which may have a financial relationship with the chmity. Opportunity is given for disclosure of any financial or other interest pt·ior to any Board discussions.

All transactions involving ot·ganisations in which a member of the Key 1\/lanagement may have an interest are conducted at am1's length and in accordance with Group's financial regulations and normal procurement procedures.

During the year the group incurred cost in relation to consultancy services amounting to £8 (2021 £1,015) provided by Anthony Watson. The consultant is a close family member of the Group's Chief Executive Officer.

During the year the group incurred cost in relation to consultancy services amounting to £1,125 (2021: £0) provided by Rob Townsend. The consultant is a close family member of Group's Chief Executive Officer.

During the year the group incurred cost in relation to services amounting to £17,500 (2021: £30,675 from Get 1\/ly First Job. One of a number of shareholders of Get 1\/ly First Job is a close family member of the EAL's Chief Operating Officer.

At the year end there were no balances outstanding to or from related parties.

44