Re8iStered number: 02640936 Charity rtumber: MJ04087 SKILLS AND EDUCATION GROUP {A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR ThE YEAR ENDED 31 AUGUST 2020 A45¢MRT* 2210S12021 COMPANIES HOUSE 236
SKIUS A14D EDUCATION GROUP IA company limited bywarnntee) COP4TENTS Pa8e Referente and administratl¥e dètslls of the ctrAritsble c¢xnpany Its Trustesand ad¥ise Trustses, report 2-12 Independent audltor's rewrt on the fiThJKial statements 13-15 Consolidated statrmert of finandal a¢tl¥l 16 Consolidatsd balance sheèt 17-18 Charltatsle ctynpany balance sheet 19-20 Consolidated statèmèfvt of cash flows 21 N4>tèsto thè flnant1315tatemeffls 22-47
SKILLS AND EOUCATION GROUP {A cornpany IlmSted by8uaranteel REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITA8LE COMPANY. ITS TRLISTEES AND ADVISERS FOR THEYEAR ENDED 31 AUGUST 2020 Trustees A G Stott. Chair J P Yarham. Vict Chair LJ findsley JPBeaty T F O'Brien A Foulkes V A Hancock J Meenaghèn P A Eeles J Maher A Khemka DBE Iresigned 30April 20201 G Clipson lappointed 30April 20201 Y Y Mellor lapwnted 14 Ortober 20201 Company re8lstered number 0264LVJ36 Regtsteied offit¢ Robins Wood Housè Robins Wood Road Aspley Nottingham NG8 3NH Company SeCrary S N Fenelelamb Chlef executlve olftcer P A Eeles Indeptndent auditor BHP LLP 2 Rutland Park Sheffield SIO 2PD 8anke NaVeSt 536 Valley Road Nottingham NG5 IFL Solicitors 8r¢rwne Jacobson LLP Mowbray House Casile Meadow Road Nottingham NG2 IBJ Key manalement pernonnel S Foths - Director of Member SeNces and Communication lappointed I September 20201 M White- Director of Awarding 5eM¢es lappointed I September 20201 Pa8e I
SKILLS AND EDUCATION GROUP IA company Ilrnited byguarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31AUGUST 2020 The Trustees (who are also Oirertors for the purpose of company lawl present their annual rem together wlth the audited finantial statèments of the charitable company for the I September 2019 to 31 August 2020. The annual report serves the purpose5 01 both a Trustee5' report and a Direttors, rèport under company law. The Tw5tees confirm that the annual report and finanoal statements of the charitable company comply with the cvrrent statOry requirements. the reqvirements ol the tharitable company's goveming document and the prowsions of the Staiement of Recommended Practice ISORPI applicable to Charities preparing their attovnts in attordance with the Financial Reporting Stzndafd applicable in the UK and Republic of Ireland IFR51021 (issued in October 20191. Since the Broup and the company qualify as small vnder sertion 383 of the Companies Art 2Q)6, the group strate8lC report required of mediurn and large companies undÈT the Companies Art 2006 IStr3te8ic Report ènd Dirertors, Report) Regulations 2013 has been omitted. Oble¢tlves qndfjrtlvltles a Polkles ¥Dd obkcll¥e5 The Charity provides a ran8e of Servi in fvrtherance of its tharitable objective to support-the advancement of skills and education to improve the INes of individuals-. Thest indude.. awarding and assessment serthces and quali11 re8ulated by Ofqual, Qualifficatlgn Wales and CCEA INorthern Ireland) awarding and 35se5sment service5 and qualifications regulated by the Qualifications Approval A8ercy IWI end-point-assessment IEPAI services awardin8 and assessment services for non-re8ulated skills and education pro8rarnmes the development and delivery of continuing professional development ICPOI pro8rammes to meet the existin8 antl ernerging needs of teaching and non-tezching 5tsff ojstomised training for colleges and training providers developing pro8rammes t9 511PPQrt and develop the professionali53tion of the further sertor facilitation ol peer 5UPPtsrt and network to erKourage an eJKthan8e ol knowledge. ideas and working practices collaboratNe projett activities to support teachin& learning and assessment research. mana£emenL leadership and 8overnance local. regional and national stakeholderng¥ement to infomi and support policy developments and implementstion The charis strate8ic aims adopted in 5UPPQrt of th obFectives are identrfied by an annual strategic plannin8 process ulrninatin8 in a five-year strategic plan a8reed and monitored by the Boafd of Trustees and revised as necessary. a. Maln achievernents otthè Charity The first half of 2019120 perfom)ed strongly with actiwty and income perfoming above budget expectations. The opportunity to acquire another awarding or8anisation presented itself at the start of the year and 8ood progress was made with assessing the opportunity. the benefit that this may have to the tharity and its wider membership and beneficiaries. ProÈres5 was also made with finanazl and legal due diliKence. Pa8e 2
SKILLS ANO EDUCATION GROUP IA <ompany Ilmil byBuaiantee} TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Achievements and performance del1ver1 public benefft Itontinwedl The Covi(k19 pandemit and the introduction of nationwide restritiions in March 2020 changed the operational mana8ement of the charity. All stafl sutte55fully mcNed to homeworking znd were quickly set-up with IT and telephone hardwarelsystems enabling them to adopt a -business a5 usual. approath. However. as the extent of the restriction measures and the likely duration of these became dearer. the decision was taken to access support from the Corcnavirus Job Retention Scheme IORSI and 70% of staff were placed on fudough. The remainin8 staff base fomed a "core team- and took responsibility for the on-going management of the charity. its 5eNites and produrts. Staff members were brov8ht oui ol lurlou8h on a 8radual basis and accordin8 to the 8rowin8 needs of the charity. staff had returned to work, on at leasi a flexible basis. by I September 2020. CJRS was accessed as a way to help preserve the tharity and its stsff. Although Some restructuring took place in the sJmmer of 2020 resulting in a small number of redundancies, the chanty emer8ed from the first lockdown in a good finanaal position an¢J with the tertainty of long future. End-of-year finantial perforniance. which had been reforetast at the start of the March 2020 lockdown. exteeded expectations. The charity took the proaetive approath of-leaming from lockdown~ by examining what Wofked well. what did not work as well and what working prartices could be chan8ed to adapt the new envir¢Mment post-covid 19. Key achievements and performance across the different setmtes and acbvities are Identified bÈlLW.' Award0 Ser¥i¢e5 Acces5 to HE activity enable5 individuals without the necessary Qualifications to progress to study at University and by doing so improve their employrnent opportunities and Social rnobility. Work carried out in 2019120 has seen a new college join Certa Access in 2021 and re8istrations should Commen on a new OipEoma in September 2021. As an En(l-wnt Assessment Organisation IEPAOI. the Chty continues to develop a Wrange of Fashion and TelIeS Standards which will be used to assess apprenti5 at the end of their apprenticeship. Development of a new suite of levtl I qualifications has be8un which will include eLeamin8 to enabk learners with few or no appropriate qualifications to gain the tonfidence. skills and knowlèdge needed for progression on to higher level qualilications or provtde an additionality for existin8 Study programmes. This development SUPPOrt5 the Charitvs aim for -the èdvaneement of skn.lls and education to improve the lives of individuals- by developing a ran8e of qualifications dsi8ned to 5UPPOrt progression and motmlity. Other developments durin8 the year induded qualifications to support the motor industry lair condltioningl, manufacturTrng Iwelding and fabrication). Yth and community (youth workl and animal care. A number of the Charity's animal care qualifications gèined endorsement through a membership body and an agreement was secured to endorse our Welding and FabricatTron qualifications by Lincoln Electric. This pro¥ides the assurance thal the qualificatiws are both applicable and nece55ary tor employers and learners. Trustees have agreed, as part Of the strategic Wann1 pr¢Kess. to invest in the development of the qualifications to ensure that thi5 continue to be fit-for-purpose and meet the needs of employers, ntreproviderS and learners. New qualification development will align to turrent and emerging economic and social needs. For example, work has begun on developinB 7 new Level I qualification5 to prwde enrichment to leamers on study programmes. Initial discussions have taken place with the GLAA IGangm3sters and Labour Abuse ALthorityl to develop a new Level I workers, rights qualificatson through a pilot funded by the Home Wice. A new surfce of Level l and Level 2 electric vehicle qualifications will be developed to help support the avtomotive sector with the govemrnenys agenda to phase out the sale of new petrd and diesel tars by 2030. Page 3
SKILLS AND EDUCATION GROUP IA ¢ompany1Smlted byquaranteel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 A¢hlevern¢nts •)d performan¢e dell¥erlnK public benefit (tofttlnuedl Takin8 these examples forward, the Skn"Ils and Education Group will continue to identyfy and respond to emer81 needs through the development of products. support and services. Membershlp and ComrnunicatioTrs Membership remained stable during 2019120. The number of members 8rew from 31 to 46 at the end of 2019120. A new online hub was a150 launthed to support member needs and to create an online community of practitionev5. The number of people who had created profiles on the Hub wa$ 1.020 at the end 012019120. The professional development offer for 2019120 started off strongfy. with an inuease in partitipation, matehing that of the whole of 2018119. Participation continued to inue35e. as we moved the Charity'5 CPD offer tsnlinè as a result of COVID-19. A ran8e of sessions were hosted beeen 31 March and 31 August. that locused on supportin8 practitioners to work remotely. There was also a tx"g f¢xus on wellbeing arttl mental health. The total number of people that participated in CPD during 2019120 was 3.368. The Foundatlon received its rtrst 8rant applications and supported 23 grants totalling £7,090. As a result of the pandemic, gTant artivity was put on hold foi the remainder of 2019120. The Fovndation however invested in a piete of work titled 'IDJ Face5 of Further Education,. A number of interviews were tondurted with leaders. le¥nets. govrnor5 and practitioners from across the Group's membership. This work is yet to be published. The Business Development team Pla a key role in supporring customers and st0@thenIng relatlonships during the lockdown period. The team a150 underwent a restructure. as part of a series of thanges acr05S the Group in Summer 2020. Websites and external. customerfacing platfornis We continualty reviewed. The ABC Awards and Certa Awards websites were combined into one. additional updates were also made to the main Group web51te. Operatlons and Prolert Art•¥tt A focu5 of the Oirectofate was on 5upportine the move to home wNkin8 and on ensuring that the infrastrurture and resources were in place. Thi5 move was successful.. staff have been able to acte5s all applications. folders and files and have been able to keep in contact with eath other and customefs though the Voice Over Internet Protocol IVOIPI telephone system. MS Teams and Zoom were Inea51Th81Y used lor meetings, both internal and with customers. and to support prolessignal development and information webinar5. Board of Trustees meetin8s. by agreement. a150 succefUl moved to the Zoom platfgrm. Projert artivities tontinued to grow in the year. athieving incorne of £1.322k tornpared wrth £944k120191. The growth income was suppgrted by the continuing tontrart with the Edutation and Trainin8 Foundation for the delivery of Strand 4 IKnowledge Hubs) of the T Level Professional Development rrLPDI support offer. Funded by the Department of Education. the TLPD offer is designed to providers offering T Levd programme5 from September. TLPD acttrvitie5 mana8ed by the Skills and Education Group supported 3LYI prwders, 420 teathers and prowded 8rants to develop the way in whith T Levels are taught to 17 providèrs. Delivery of this pro8ramme fU111d the charrfs strategie aims to SUPPOrt its members and the wrfer sèrtor through the development of new teachin& learnin8 and as5es5ment approaches. It also 5UPPOrted the continuin8 professional development of individuals and organisational development. Alon85ide this, the tharity continued delwery of the Educati¢)n and Trainrng Foundation programme "SET for Teathing Suttess~. Entering its f¢)urth year, the programme has supported 83 traIe teather5. 34 of which have completed at a level 5 teachin8 qualification. The remainin8 trainees are due to complete a teathin8 gualification in the 2020121 or 2021122 academic years. Page 4
SKILLS AND EDUCATION GROUP IA company limited by 8u•raMee) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Aihlevements and performance deli¥eriTha publk benèfft Icontinuedl The Qualifitation tenCe Scheme which endorses the qualrty of non-re8ulated professional developmenr courses was re- branded durin8 the yèar and new descriptors introduced for ujurses endorsed by the stherne. A new website was introduced for the Quality Licence Scheme to refftect the new branding. b. Fundraisint standards lThformk• The charitsble group does not tarry out signifitant fundraising acbvitie Finortiolrevffew a. GOI coniern Trustees have worked closely with the Executive Leadership Team to develop 5trate8ic and operational plans that not onlv mitl8ate the imp3rt of Covid-19 but also supported the sustaihed Erowth of the Group and its subsidiary charities. Suth plans included the development of new produtts and 5ervitts as well as the potental for acquisititsn where this omplemented the charitable obiertNes of the Charity and ensured -terni finanoal growlh and viability. The opportunity to acouire BIIAB Qualifitations Limited IBIIABI presenteil itself at the start of the financial year. Trustees tonfirmed their support for progressing the opportunity to the finanoal and legal due diligence stage bèfore making any final decision on whether to proceed with the purchase or not. The Covid-19 pandemic had an impact on the initial purchase timeline. but a benefit of this was that time COLJld be taken to MO fulty understand the business to be atquired and how thi5 may be affected by Covid-19 in the short, medium and long-terrn. Reco8nising that the BIIAB bu5ines5 land the sector it provided 5ervice5 tol was On likety to be irnparted on in the short terrn. Trustees agreed that there were medium to long-terni benefits to the Group. In a8reein8 the purchase. Trustees were keen to protect the financial health of the Group and tts 5ub5idiary charities. A purchase agreement was. therefore. put into place providi a model supportin8 al minimal cash payment on the date of purchase.. and. bl Sted purthase payments linked to profitabilrty ffftr a fN&year period. As part ol going contern considerations, Trustee5 noted that thi5 rnodel ensured that.. with onty z limited call on cash at the point of aquistion. cash levels were protetttd the reserves policy to build and maintain reser¥&to meet da¥-tOaY busi5 needs in the event of reduced income could be met budgèt forecasts suggests that fvture purthast payments could be met by BIIAB surplus natiThg the need to draw on Group cash or reserves there would be residual surplus laftera8reed staged purthase payments) for reIntMeNt into the business andlor to 5UPPOrt Group reserve levels a linking of purchase payments to BIIAB suwus means that suth payments are affordable and minimised finantial risk and irnpaa on cashlcash-flow. Trustees have also looked at-goin8 concern" in the context of Covid-19. the impact of thi5 and th? ways which any impact can be mitigated. Trustees refflain confident that the Charity has the resilien to adapt and develop its strate8ic and operattonal business an$ to meet the needs of its beneficiaries and to find new ways of workin8. Page 5
SKILLS AND EDUUTION GROUP IA company lirnited byguarnnteèl TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 This confidence is based on-. An agile strategic approach that 15 responsive to external fartors Accelerating the developrnent and introduction trlearning applications and other technologie5 to support the launch of new products and servtces The prudent use of the ORS in 2019120to protett the workforce and retain the necessary skills and expertise for the longer tem Detailed analysis of income and expenditure linked to realistic actNity projections that are underpinned by a positive cash flow The acquisition of BIIAB into the Group, the expansion of the ran8e C+1 qualifitations. end.point assessmtnts, products and ser¥ice5 and the opportunity to engage a wide and more diverse customer base Based on this work, trustees have a tofitinuine aSonable expettation that the charity ha5 adequate resources to tontinue in operational existence for the foreseeable future. Consequendyi Ihe trustees tontinue to adopt the going concern basis of accounts in preparin8 the financial statements. Further details on the adoption of the goin8 concern basis can be found in the accounting policies. b. ReSeS polky It is ihe policy of ihe Charity that unrestrirted funds which have not been desi8nated for a specific purpose should be maintained at a level necessary to provide a contingenty to support day-tt>day business activities in the event of redueeil income and provide a Strategic fund to develop and grow the Charity. Trusttrs also wish to build rtstrvès to fvlfil a Group-wide objectNe to support social mobility. In line with best pracbte 8uidance. Trustees review the reserves policy each year and eonfirrn that this level of reser¥È has been maintained. It is the Charitys policy to wwk to buildiwd and mantaining reserves to= support the sho¢ rnedium and lon8-temi objectives of the Charity and its subsidiary charities re-invest any surplus funds to supporL deloP and eypand the delivery of high-quality services re-invest any surplus funds to support activities that support social mobility and provide a public benefit maintain sufficient reserves that are readily realisabie to 5Vstsin optrztions a5 and when required coverdeficits. when arisin& from general reseNes mitigate the risks of unforeseen challenees. emergencies or other unexperted requirernentfor fvnds maintain de5i8nated funds that recognise funds that are to be used for a SPlf1( purp05e coverstatutory obligations to dose down and wind-up the charitable Charitys affairs in an orderly manner, if and when required. Unrestricted funds at the end of the yearwere £3,310K and free reseNes which exdude fixed assets and are stated before the defined benefit pension liability are £2.341K. Tru51ees consider the unrestricted lunds to meet the Charity's reserve policy bv.. Page 6
SKILLS AND EDVCArnN GROUP IA company Ilmlted by 8uatsrrteel TRUSTEES, REPORTicoMfiNUEDI FOR THE YEAR ENDED 31AUGUST 2020 Reser¥e Contingencv Target Amount £1.400,(M)O •Sustain business operations •CLwer deficits •Mitgate the risks of unforeseen challenge5 andlor emergencies •Cover staiuto obligations •Support shoo medium and lon8- tem objeciives •Support growth •lnvest in SearCh and developent for new products and services •lnfr3stnJrture development to support strategic growth including infrastructure and applications •Re-invest surplvs lunds to supwt social mobility and prowde public benefit vDe5ignated fvnd recognising local ovemment nsion Scheme defitit •Funds for a designated purposed defined by contractual agreements with third parties Iprojed-based activities) 5trateEic £633,CO) Sooal Mobility £120.C DesigAatetl Pension Fund E907,CiXJ Designated Fund-Third Party Contracts £250,rx . Flnandal perfonnance and posltlo The CharSty remains in a finanoally healthy ption continues to meet its agreed financial targets. The Charity athieved a deficit of £5.761 12019= surplus of £18.9531 after an artuarial adjustment of £150.OC4) 12019.. £2.c¢)01 on a defined benefit pension stheme. The surplus before this adjustment is £144,23912019.. £308,953). Total income was £4.455.17112019-. £4.12.2L). IrKcKne lines Acce55 to HE. profe$5ional development, MOT Annual Assessments all met bud8et targets set bef the pandemic. thOugh below the budget target income for Awards products and servites at £1.146L ¢Acome was £56k above tht reforetast ptssition agreed in March 2020. Projett income was £1,399k. This was due to a high perfom)ing contract with the Education and Training Foundation the delivery of professional development in sUPPOrt of T Levels. The charity also benefitted frorn aRS grants which protected jobs acr05S the Group and helpe(I support the charity through the early months of the pandemi Total expenditure was £4,289.96512019.. £3,754,0581 and refiects the cost of servicin8 project actwities, including the distribution of funds to FE providers enabling them to devèlop rtrew approathes to teathin& learning and assessment. Stafl tosts for the year were £2.137.39412019- £1,984,719). Following a restructuring of the charity and its subsidiary charities headcount reduced from S5 to 54. Salorie5 and associated costs remain the primary cost to the Charity. Net *sets forthe yearwere E3.309,942 compared with E3,315.703 in 2019. Pa8e 7
SKILL5 AND EDUCATION GROUP IA ts)rnpany linuted byarantee1 TIIUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 d. Rlsk maffiagemènt Trustees remain aware of the educational and political environment in whith the Charity operates and rtctsKnise. in particular, the challen8es facing provider5 in the fvrther educatyon sector. risks to the Charity are: A fast-than8in8 pol¢tical enwronment that has an impact on edti policy and funding to support this ReBulatory changes and a failure to respond to these in the way that is needed to ensure continuing complian Failure to appropriately mana8e and store personal dats leadin8 to a data breach under the General Oata Protertion5 regUlatiLs Trustees are satisfied that the systems and rewew process are in place to mitigate and manage the risk5. Stratesic risks are man38ed and monitored throu8h risk re8lStefS.' one for each ol the charities within the charitable 8roup. Risk registers are reviewed and updated by the Executive Leadershipleam on a quarterly basis prior to a review byTrustees. Risk registers are rated on a wei8hted likèlihood and impacl scale based on tharity Commission guidancè. A Covid 19 Risk Assessment was carried out in AuSt 2020 prior to the olfice fully re-openin8 for èll staff after the first national lockdown. The Risk Assessment identifies the control measures and actions need to ensure compliance with restriction Measures and to ensure a safe working environment. The Risk Assessment is reviewed on a monthly basis andlor when there are changes to the re5trirtions PLtt into place by the Govemment. . Investment The cornpany holds an ethical investment portFoliO gf listed secvritie5 wff(h Brewin Dolphin. The current risk profile is l¢)w to moderaie which reflects a focus on income over capital 8rowth. The Trustees consider the investment to be long tem with an objective to grow the incorne at least in4ine with inflation. A total of £340.5C8 has been invested in an ethical portfolio of listed securities. At the end of August 2020. the portfolio had a value of £353.70812019.' £376.8211. a. Constitut1¢ The or8anisation 15 a charitable cornpJny lirnhted byBuarantee, whith was set-up on 27 August 1991. The company was set-up under a Memorandurn of Association which established the objertives and powers of the tharitable company and is governed under it Articles of Association. Its charitable objective i5-the ao%fancement of skills and education to improve the Iw of indrwduab-. Skills and Education Group 15 the parent tharitsble company of the eroup, which includes: Skills and Edutation Group Awards. z charitable tompany limited by 8uarantee'. Company Number 04117784 Charity Number 1086947 Skills and Education Group Access Ifonnerfy Open College 14etsmrk Yorkshire and Humbtr Re8ionl a charitable tompany limited by guarantee.. Page 8
SKILLSAND EDUCATION GROUP IA ¢ornpany limitèd by Buaranteel TRUSTEE5' REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 $trurtU1 ¥o¥emance and mana¢ement IconliThuedl Company Number 03773914 Charity Number 1088839 On the l Marth 2021. the Ski115 and EducatTron &oup acguired BIIAB QualifKation5 knmited IBIIABI. The Skilts and Education Group 15 the parent company gf 8IiA8'. BIIAB Qualifitations rnited. a private limited company C¢mpany Number 11)054831 The Skills and Edutation Group delivts its products and seN¢es through a brand structure that maintalns and protects the Pfoftle and reputation of the Charitieslcompanies within its stnjcture. b. Method5 of appointment or elertion otTrusttts There were three than8es to the Bo¥d ofTrustets durin8 the year. Darne A Khempka Iresigned 30 April 20201 G Clipson lappointed 30 April 20201 Y Y Mellor lappointed 14 Ottober 20201 Newly appointed trustees were recruited in accordance th*Artides of A55oaation underArticbe 27. "Skills and Education Group member513rtin8 by a majorityl shall be entitled io Ibut not obli8edl to appthnt up to seven dirertors. and rernove any director whom they appoinL by giving notite in writing to the Charitf. Additionally, Article 28 5tates- e Board directors of each subsidiary of the Charity from time to time shall be entided (but not oblieedl tg each appoint on directof of the Charity, and to rem¢)ve the dirertor who is appointe(I, by 8ivin8 notice in writing to the ChariV- The Skills and Education Group's Chair of Trustees is appointed accordirg to Artyde 29 and can under Article 30 appoint the Charitys Chief Executive Offiter ICEOI as a direttor. All newly appointed trustees complete a skilb audit to ensure a balance of skills. knowledge and experiences to SUPPOrt the development of the charity. Trustee retruitrntnt rèflects on-going and future skills and knowledge needs. f. Policiés adopted for thè ihdutt•oTr and trainiry olTrn5ttts Newly appointed trustees te1ve an indurtion under the dirertion of the Chief Exetutivt. Thi5 normally includes an introductory visit to Robins Wood House when the opportunity to meet with key staff to 8ain a detsiled under5tandiThg of the Charity and the subsidiaries within this. In the last year. inductions have been online. Trustees complete a declaration of interest record on appointment. Declarations are noted on Register whlth is reviewed and updated on an annual basis. Page 9
SKILLS AND EWCATION GROUP IA company Ilmittd by ¢uarnnteel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 structure. 8o¥ernan¢e and mwent Icontthued) d. OrgaTrlsalional structure and I$th-wk1AE polodes The Board of Trustees meets four times a year. Trustees: support the CEO and Execubve LeadershipTeam to detemiine the Strateg direction of the charity and appfove and review annual Strat1£ plans. busine$5 plan5 and Key Performance Indicato. approve annual budgets. recei¥e and I4eW quarterly management accounts to monitor and thèllenge performan review and monitor the strategit risk register to ensure that the appropriate tonrrols are in place to mitigate risks ensure that appropriate governance rewew mechanisms are in place and that performance is reviewed and that Charity Commisgon guidance 15 follcvAted The Chairs and CEO Group. established in 2018. was extended in 2019120 to include the Chief Operating Office and then, on appointment I September 2020. the Director of Member se1Ces and Communications and the Dirertor of Awarding Services. The-chairs" membership 15.. Chair. Skill and Education Group Vice-chair. Skills and Education Group Chair, Skills and Education Group Awards Chair, Skills and Education Group Access The group has been renamed the Chairs and Exeojtive Leadership Group and enable the Chairs to have a collective and strategic oversieht of the Charity and its subsidiaries. The group meets prior to quarterly Board of Trustees meetings and provides a structure for the Chair5 of the Charity and its subsidiarie5 to meet with the CEO. The Chairs and CEO Group reviews and monitors.. the performance of the CEO and the Executive Leadership Team financial performan acr055 all Charities within the Charity performance against strate8ic and business plans for all Chariiies Mthin the Charity identify opportunitiès forgrowth and the approach that may be taken to progress thest determine longer-term strztegic direction to help shape plans and proposals for all Trustees to consider Durin8 2019120 a focus of thè Chairs and Executive Leadership Group was on the acquisition of BIIAB Qualifications Limited. The Group also met to monitor and mitsgate the irnpact of the Cwd-19 pandemic on the Charity and its subsidiaries. Finanaal advice and support ss provided by a Trustee who is a finaw4 controller at a lar8e General College of Further Education. Day-to-day management of the Charity is dele8ated tothe CEO, Paul Eeles who is supported by: the Chief Operating Officerlcompany Secretary ICOOI. Simon Feneley-Lamb. Director of Member SeNces and Communications, Scott Forbes Director of Awarding SeNces. Michael White Page 10
SKIUS AND EDUCATION GROUP IA company Ilmhed by waranteel TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENOED 31 AUGUST 1020 Structure. vernan¢t and mana¢ement (contlnuedl The ExecLrtive Leadership Team meet twitr a month. with the first meeting of exh month focused on financial performance. Other discussion items indude.. strategic issues. new opportunities and overall busine perfom)ance rinancial performance and budgets human resources. resources and Suc$510n planning compliance and re8ul3tion. intludin8 Ofquèl, (IL4 CCE4 QualifKation Walescharities Commission and the Information Commissioner5 Officer e. Pay poly for key mana8ement personnel Remuneration for the Chief Executive is determined by the Chairs of the skil and Eduotion Group and subsidiary tharities. The Chief Executive determines the remuneration for all staff. induding the Executive Leadership Team. Annual cost of living pay awards for all other staff are subject to recommendation to and approval of the Board of Trustees. Plans for future periods Trustees approved Strategic and business plans that were intended to svpport a year of development120201211 leadin8 to the introduction of new products. sUPPOrt and Services. The plans reflect the continuing impxt of COVID-19 and assotiated restrictions ihat affett thai way in whsch the charity can operate. The strate8ic objectives for 2020121 are designed to tske the charity forward while continuin8 to support the charitable gbjective.the advancement of s115 and education to improve the lives of indi¥iduals°: Establish a strong de¥elopment offerto support members and their staff as respond to a thanged landscape post Covid-19 Develop a stron8 online offer to underpin the full range of prodvrt5 and services acr055 the Group'5 tharitie5 Invest in and harness tethndo8Y to grow the chariws offer post Covid-19 Continue to invest in the grants programme of the Foundation to support sooal indusion. partitularty focused on the needs that learners may have a result of Covid-19 Demonstrate the social impart of the tharity on its rnembers and customers Learn from operating in a Cowd.19 world and struttu staff. systems, process and phy&cal fesources to minimi5e the impart of Covid-19 and maximise the available opportunities Develop-ambition 2025-. a strategy that builds on the legacy of the tharity and determine its dlrection over the ne¥t four years In 2019120. the Skills Education Group were presented ¥Mth the opwtunity to acquire BIIAB Qualifications Llmited IBIIABI. A lon8-Standing part ol the British Institute of Innkeepith& BIIAB joined the Skills and Education Group on l March 2021. As part of the Group. BIIAB will retain its idents'ty and focu5 on be¢n8 the awarding body of choice for the hospitslity industry. which employs over 3 million ind*viduals. In keeping with its drive to athieve educational. economic. and social advancement for all. the Skills and Education Group will collaboraie with the British Institute of Innkeeping IBIII to continue to raise industry standards and champion the talented individuals working in hoswtaltty4icensed trades. 8IIAB will retsin its services in qualifications and appreniiceships that are available to Bll members. Page 11
SKIL AND EDUCATKIN GROUP IA company Ilmlted byluafanteel TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2020 Plans f¢rfutur¢ pwiods Icontinuedl The acquisition further strengthens the Skills and Education Group'5 POtion in the mathetplace and will build its diverse produrt portfolio to continue to meet local. national. and international ski115 needs. St•ternent of Trust¢es' respon51bi*tiÈs The Trustees (who art atso thè dirertors of the th"table company for the purposes of company lawl are responsible for preparin8 the Trustees, report and the financial Statements in accordance with applicable law and United Kingdom Accguntyng Standard5 (United Kingdorn Generalty Accepted Accounting Prarticel. Company law requires the Trustees to prepare firnanoal statements for exh finantial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they 8ive a true and fair view ol the state of affairs of the group and the charitable company and of their intorning resources and application of re5ource5. including their income and expenditure. for that period. In preparing these financial statements, the Trustees are reqUId to= select suitable accounting poliaes anfl then apply them con51Stently.' observe the method5 and principles of the Charities SORP 2019 IFRS 1021- make jud8ments and accounting estimates that are aSOnable and prudent,. State whether applitable UK Accouhtlllg Standards IFRS 1021 have been followed, subjed to any material departures disclosed and explained in the financial ststements.. prepare the finanoal statements on the 8(Mng concern basi$ it is inappropriate to presume that rhe 8roup will continue in operats"on. The Trustees are responsible for keepin8 adequate accounti records that are Sufficient to show and explain the Grgup and the charitable company's transartions and disclose reasonable accuracy at any time the financial position of the rovp and the charitable Company and enable them to ensure that the financial statements cornply with the Companies Aet 26. They are also responsible for safeguardine the assets of the group and the tharitsble company and hence for taking reasonable step5 for the preventiort and detedion of fraud and other irre8ularitie5. Dlsclosure of Inforn)•tlon toaudilor In so fai as the Trustees are aware.. there 15 no relevant audit information of which the charitsble 8roup'5 aLKlitor is unaware, and the Trustees have tsken all the stÈP5 that they ovght to have tsken to make themselves aware of ary relevant audit information and to establish that the auditor is aware of that information. This report has been prepartd in atcordance with the provisions applicable to companies entitled to the small companies, exemption. Approved by order of th¢ members of the board of Trustees and signed on their behalf by: hll AGStott (Chair ol Trusteès} Date.. May 6. 2021 Page 12
SKILLS ANO EWCATION GROUP (A company Ilmited ty 8rantee> INDEpeNDENfAUDifoR'S REPORTTO THE MEMBERS AND IWSTEES OF SKIUSAND EfJuc4TION GROUP Opinlt)n We hwe audiied the financial ststewrnts of Ski115 and Education Group (the 'parent charitable company'l and its subsidiaries (the 'group'l for the year ended 31 August 2020 whith comprise the consolidated ststement gf financial artivities. the consolidated balance sheet. the tharitsble cornpany balance sheeL the consolidated statement of cash flow5 and the related notes. ifttluding a summary of significant attounting policies. The finantial reporting framework that has been applied in their preparation 15 applicable law and United finBdom Accounting Standard$. includin8 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accountin8 Prartice}. In our ownion the finanoal statements: give a true and fair wew of the state of the group's and of the parent tharitable Company's affair5 as at 31 August 2020 and of the group's incoming rewurce5 and application of resources. Fncluding its incorne and expenditure for the year then ended.. have been properly PTepared in accordanct with United Kingdom Generally Accepted Accounting Practite.. and have been prepared in accordance with the requirements of the Cornpanies Act the Charities Art 2011. We c¢)nducted ¢)ur audit in attordance with Intemational Stèrtdards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's resptsn5ibilities for the audit tsf the financial statements sertion of our report. We are independent of the group and parent tharitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom. including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe thai the audit evidence we have obtsined is sufficieni and appropriate to provide a basis for our opinion. Concluslons rlatlngtO EOi¢tonctrn We have nothing to report in respect of the following matters in relation towhith the I IUKI require us to report to you wherè.. the trusteès, use of the Èoir contem basis of acctyjnting in the preparation of the finantial statements is not appropriate.. tsr the trustees have not disdosed in the financial 5tstements any identifd material uncertainties that rn3y cast significant doubt about the group or parent charitsble companls ability to continue to adopt the qoin8 concern basis of accounting for a period of at least twelve months from the date when the finanoal statements are authorised for issue. Other information The irustees are respongble for the other information. The other information comprises the information included in the Trustees, reporL othèr than the finanaal Statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and. except to the extent othenAfise explicitly stated in our report, we do not express any form of assurance conClon ihereon. In connection with our audit of the finanaal Statements. our responsibility is to read the other information and, in doin8 so, consider whether the other inlorrfiation is materially intonsi5tent with the finanoal stètèments OT our knowledge Page 13
SXILiS AND EDUCATION GROUP IA Compwy Ilrnltsd byguaranteel INDEPENDENT AUOITOR'S REPORT TO THE kW8ERSANDTRUSTEES OF SKIUS AND EDUCATION GROUP {CONnNUEDI obtained in the autlit or otherwise appears to be materially misstated. If we identify such material incon515tencies or appareni material misststemehts. we are reouired to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, bèsed on the WO we have performed, we conclude that there is a material rni5Statement of thi5 Other information. we are required to report that fact. We have nothin8 to report in this regard. Oplnlons on other niatters prexTd>td by the Companies Act 20L In our opinion. based on the work undertaken in the course of the audit= the information given in the trustee5' report lincorporating the directC+f5' reportl foi the financial year for which the financial statèrnents are prepared t5 consistent with the finanoal statements.. and. the directors, report has been prepared in atcordance with applicable legal requirements. Matters on which we are rÈ4uired to rewt by exteoion In the light of gur knowledge and understanding ol the 8roup and parent charitable company and Its environment obtsined in the course ofthe audiL we have not identified material mi55tatements in the dirertors, report. We have nothing to report in respect ol the following matte15 in relation to whith Cofflpanies Art 2006 and the Charities Act 2011 requi us to report to you if. in our opinion.. dequate and 5uffi(ient accountin8 records have not been kept by the parent charitable company. or returns adequate for our audit have not been received from branche5 nol visited by u5: or the parent charitable company's finanoal statements are Th)t in agreement with the accounting records and returns.. or certain disclosures of directors, rernuneration specifd by law are not made: we have not recewed all the infgrmation and explanation5 we requi for our audit- or the trustees were not entitled to prepare the financial statements in accordance wth the small companies regime an(J tske advantage of the small companies. exempuon5 in preparin8 the directors, report and from the requirement to Ppare a stratewc reporL ResponslbS1ities of trustees As explained more fvlly in the trustees. responsibilities statemenL the trustets Iwho are also the direttor5 of the parent aritable cornpany for the purposes of company lawl are responsible for the Preparation of the financial statements and For being satisfied that they give a true and lair vi. and for such internal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misstatemeni, whether due to fraud or error. In preparing the finantièl 5tatemeTrts. the trustees ore responsible for 8sse$5ing the 8roup'5 and parent charitable Company's ability to continue as a going c¢)nt*rn. disclosin& a5 applitablt. matters related to going Concern and using the going toncefn basi5 of atcounting unless the trustees either intend to liqutdate the 8roup or parent tharitable company or to cease operations, or have no realistic altemative but to do so. Page 14
SKILLS ANO EDUCATION GROUP IA compary Ilmlttd by #uaranteel INDEPENOE14T AUDITOR'S REPORTTO THE MEMBELS AND TRUMES OF SKILLS AND EDUCATION GROUP ICONTINUEDI Audltor's responsitiilltleslof thè audlt of thè finafjal statements We have been appointed auditor under the Companies Att 20C6 and settion 151 of the Charities Act 2011 and report in accordance with those Acts. Our objerti¥es are to obtain reasonable assuwce about whether the finarKwl Statents as a whole are frtt from material misstatemeni, whether due to fraud or error. and to issue an auditor's report that include5 our opinion. Reasonable assurance is a high level of assurance. is not a guarantee that an audit conducted in accordance with ISAS ILIKI will always detect a material misstatement when it exists. Misstattments can arise Irom fraud or error and are considered material if. individually or in the ag8regate. they t¢uld reasonably be experted to influence the economic decisions of users t*en on the basis of these financial statements. A further desulption of our responsibilities for the audit of the financial statements is located on thè Financial Reporting Council's webslte at.. .frc.or audi orsres nsibilities. This de5CriPtion forms part of our auijitor's report. Use of réport This report 15 made solely to the tharttable company's membefs. as a body, in accordance with Chapter 3 of Part 16 of the Companies Art 2006, and to the charitsble company's trustees, as a body. in accordance with Part 4 of the Charities (Accounts and Reports1 RegulatsDn5 2LX)8. Our audit work ha5 been undertaken so that we rni8ht state to the charitable company's members and its trustee5 those matters we ale required to state to them in an audittsr's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the haritable company and the tharitable cornpany's rnembers. a5 3 body. and the charitable cornpany'5 tru5tee5, as a bodv. for our audii work, for this repor( orfor the opinions we have formed. Jane Marshall Isenlorstatutory Axlltgrl for and on behalf of BHP LLP 2 Rutland Park Sheffield 510 2PD Date.. May 7. 2021 Pa8e 15
sKILAND EDUCATION GROUP IA cornwy Ilmlted by iuaranteel CONSOUDATED STATEMENTOF FINANCIALAcfMTIES {INCORPORATING IIKOME AND EXPENDMJRE ACCOUNn FOR THE YEAR ENDED 31 AUGUST 2020 Total fvnds 2020 Total funds 2019 funds 2020 Note lffi¢ome from: Charitable atti¥ilies 4.061.351 23.328 16.686 353W6 4.061351 23.328 16.686 353106 3,987.099 29.248 17.923 27.930 Other trading artiwties Irwestmtnts Other income Total Income 4.455.171 4.455.171 4.C62.200 Ex11• t)n: Charitable arti¥ilies 4289.965 4289.96S 3,754,058 Total e¥pendiiure 4289. 4.289. 3.754.058 Net Ilosses116ains on investments 120,967) 120.9671 811 Nel mo¥emerrt In lunds before other recognlsed ylnslllosses) Other re¢o8nised iasrf{10sses): Attuarial Ilossesllgains on defined benefft pension s¢hemes 144239 144.239 308.953 26 {wwi) {Iso,Th)01 1290.0001 movement Sn funds 15.761) 15.7611 18,953 Reeonclliatlon ol fvnds.. Total funds brou8ht forward Net movernent in frjnds 33ts.70a 15.761) 3.315.703 15.7611 3,296,7SO 18.953 Totsi funds orrled tonvard 3,309.942 3.309.941 3,315,703 The Consolidated Statement of financial artivities includes all gains and Ios5e5 recognised in the year. Page 16
SKILLS AND EDUCATION GROUP IA tornpany limiteil by guaranteel REGISTEIIED NUMBER: 02640936 CON50LIDATED BALANCE SMEET ASAT31AUGUST2020 2020 2019 Fbxed assets Intangible assets Tangible assets Investments 123,405 1.752573 353.708 121.988 1,774,936 376,821 14 15 2229.686 2,273,745 Current assets Stocks 16 10.716 309.061 2,325,539 Debtors 17 Cash at bank and in hand 2J03.926 624.264 2.64S.306 Creditws: amounts fallin8 due wthin one year 1637.(#X 1847,3481 P4et curnènt assets IJ87256 1.797,958 Totsl •$5ets less curreni Ilabilitles 4216.942 4,071.703 Net assets exdudlng pension liability 4216.942 4,071.703 Defined benefit pension scheme liability 26 I?.(10) 1756,CO)I Totsl ftet atsets Y309.942 3.315.703 Charlty fvnds Unrestricted funds 19 3309.942 3.315,703 Tgtal fvnds 3309.942 3,315,703 Page 17
SKILiSAND EDUCATION GROUP (A MPanY Ilmoted by guarantee) REGISTERED NUMBER: 02640936 CONSOLIDATED BALANCE SHEETICONllMJEDI AS AT31 AUGUST 2020 The TTUStees acknowledge th1 responsibilitieslw eomplyire with the requbrements of the Att with respett to accounting records and preparation offfinanoal Staments. The financial statement5 hav beeft prepared in cordante wrth the prnwsions applitable to entitie5 subjert to the small tompanies regimè. The linancial statements were approved and authNised for issue bythe Trustees aftd signed on their behall by.. 51e AGStott (Chair of Twsteesl Date.. May 6. 2021 The notès on pages 22 to 47 fomi part of these ffinan(ial statements. Pagè 18
SKILLS AND EDUCATION GROUP IA company Ilmtted byguarantee) REGISTERED NUMOER: 02640936 CHARbTA8LE COMPANY BALANCE SHEET AS AT 31 AUGUST2020 2020 2019 Flxed •55ets Intangible assets Tan8ible assets Investments 67.197 1,076.631 51,957 1,100.782 412,482 14 1,533.197 1.565.221 Current assets Debtors 17 139.056 788.103 231,679 816.538 Cash at bank and in hartd 927.159 1.048,217 Creditors.. amounts falling due within one year (s396) 1723.1231 Net current assets 387J03 325,094 Total a55ets le$5 curreTrt IhbllTrlles 1.920,50D 1,890,315 Total nèt ass 1.920.% 1.890.315 Charityfunds Unrestricted fund5 1.920.% 1,890,315 Total funds 1.920.% 1,890.315 Page 19
SKILLS AND EDUCATION GROUP IA company Ilrnited byÉuarantee} CHAAITABLE COMPANY BAIANCE SHEET ICOP4TII4UED} AS AT 31 AUGUST 2020 The Trustee5 acknowledge their responsibilities for complwn8With the requirements of the Act with respect to atcounting records and preparation of financial statements. The finanaal 5tatèrnents have been prePad in acc¥ydarKe with the provNons applicable to entities subject to the small tompanies regime. The financial statements were approved and authorised forissue by the Trustees and si8ned on their behalf by.. AGStott (Chasr of Tru5teesl Date.. May 6, 2021 The note5 gn pages 22 to 47 fom part of these finanoal statemènts. Page 20
SKILLS AND EDUCATKIN GROUP IA tornpany limited byguarantsel CONSOLIDATED STATEMENT OF CASH FLO FOR THE YEAR ENDED 31 AUGUST 2020 2019 Cash 11gwsfrom arti1e5 Net cash provided by operatin8 artivities 25.183 680,710 Cash flowsfrom thvestlng atit¥tis Dividends. interests and rents fr(bm investments Purchase of iniangible assets Purchase of tan8ible fixed assets PrOed5 from sale ol Trnvestments 16.686 134.0411 IY1.5871 396 154.2SOI 17,923 195,4581 153,6101 86.574 184.3721 Purthast of investments Net C•5h used In invtsth ¥tl¥ttle5 146.7961 1128.9431 Change in 5h and osh e9ui¥alents in thèyEaT 121.6131 551,76Y Cash cash equivalents at the be8innint of the year 2325.539 1.773,772 Cash and eqyi¥alents atthe end olthe al 23 2303.926 2.325.539 Page 21
SKILLS APIO EDUCATION GROUP {A company Ilmiied by ¢uarantee} NOTES TO THf FINANCIALSTATEMElIts FOR THE YEAR E14DED 31 AUGUST 2020 General Inlorrnatwjn The parent tharitable tompany is limited by 8uarantee. incorporated in England and Wales and consequently doès not have shart capital. Each of the Trustees is liable to tontribute to èn amount not exceeding £1 towards the assets of the parent charitable company in the event of liquhlation. 2.1 Btrstsolprepomtlon oljlnolal$tateMe The finaThcial statements have been prepared in actordance with the Charitie5 SORP IFRS 1021 Attountin6 and Reporting by Charities.. Statement of Recomrnended prartI applicable to charities preparing their actounts in accortlance with the Financial Reportin8 Standard applicable in the UK and Republic of Ireland IFRS 1021 Ipubli5hed in Ortober 20191, the Financial Repwtin8 5tsndard applicable in the UK and Repvblic of Ireland IFRS 1021 and the Companies Art 2C•J6. Skills and Education Group meets tht definition of a public benefit entity under FRS 102. Assets and liabilities are initially cognised at historical cost transaction value unless otherwise stated in the relevant attounting policy. The financial statements have been prepared in £ stedin8 whith is the funrtional currenry of the Charity and rounded to the nearest £1. The consolidated 5taternent of finanoal artivities ISOFAI and consolidated balance sheet consolidate the financial staternents of the Group and its 5ubgdk4ry undertskings. The results of the Subsidiaries are consolidated on a line by line basis. The Grtxjp has taken thantage of the exemption allowed under sectK)n 408 01 the Companies Art 2(X16 and has not presented its own ststement of financial actwities in these financial statement 22 concern TnJstees ha¥e looked at 80in8 concern impatt of Co¥id-19 and the ways whith any impact tan be mitigated. Trustees remain confident that the Charity and the group h35 the resilience to adapt and develop its strategic and wotional busine55 plan5 to meet the needs ol its beneficiaries and to find new ways ofworkin8. Thi5 confidence is based on.. An agile stfaiegic approach that is re5ponsiyeto external fartors Accelerating the devdopment and introduction e-leaming applitations and other tethntslo8ies to support the launth of new products and 5ervites The Pfudent use ol the CJRS in 2019120 to protect the workforce and taIn the necessary skills and expertise for the longer term Detailed analy51$ Of income and expenditure linked to fealistic artNity pfoiectsons that are underpinned by a positive tash flt)W The ècquisitioTh of BIIA8 into the Group. the txpansion of the range of qualrfitation5. end-point assessments. products services and theopportunity to en8a8e a wide and more dr¥erse tU5tomer base eased on this work, trustees have a continuin8 reasonable expectatis)n that the 8roup has adeguate resources to tontinue in operational existente for the foreseeable future. Consequendy. the trustees tontinue to adopt the gng concern basis ol accounts in preparing the finanoal ststements. Page 22
SKILLS AND EDUCATION GROUP (A company limited by 8uawantee) NOT£$ TO THE FINANCIALSTATEMENTS FOII THE YEAR ENDED 31 AUGU5T2020 Accountlns pollcles {conllnuedl 2.3 Income All income is rècognisèd once the tharitable torrpany has entttlement to the intomt. it is probable that the income will be reIVed and the amount of income receivable can be measured reliably. Income tax recowerable in relation to investment income is recoEnised at the time the investment intome is receivable. Other income 15 recognised in the period in which it is receNable to the extent the good5 have been provided or on completion of the service. 2.4 Expendlturn Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. it 15 probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliab. Expenditure is tlassified by activity. The costs of each activity are madt up ol the total of direct costs and Shared costs. indudin8 support Costs involved in undertakin8 each artivity. Dirert costs attributsble lo a single activity are 311gcated directly to that activity. Shared costs which ontribute to more than one activity and support costs which are not attributable to a yngle attivity are apportioned between those actiwTies on a basis (C51$tent with the use of resources. Expenditure on chariiable attmties is inturred on dirertty undertaknng the aetivlties whith further the Group's objectives. as wdl as any a550Ciated supwt costs. All expenditure is inclusrve of irrecoverable VAT. 2.5 Interest rtteibvble Interest on fvnds held on deposit 15 induded when receNable and the amount can be measured reliably by the Group- this is normally upon notyfication of the interest paid or payable by the institution with whom the funds are deposited. 2.6 Toxution The tharitable company is considered to pass the tests set ovt in Paragraph I Schedult 6 of the Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the tharitable company is potentially exernpt from taxation in re4)ect of income or capital gains received within cate8ories covered by Chapter 3 Part 11 of the Corporation Tax Att 2010 or Section 256 of the Taxation of Chargeable Gains Art 1992. to the extent that such incoff* or Èains are applied exduswely to tharitable purposes. . 2.7 Int•ngible assets 0ndanti$•tK Intangible assets tosting £5CQ or more are capitali5ed and ietognised when futvrè etonomic benefits are probable and the cost orvalue of the asset can be measured reliably. Intangible asstts are inilialty recognised at cost. After recognition. under the tost rnodel, intangible assets are measured at cost less any accumulated amortisation and any accumulaied impairment1055e5. Pa8e 23
SKILLS ANO EDUCATION GROUP IA rornpany limitd by guarantee) NOTES TO THE FINANCIALSTATEMENWS FOR THE YEAR E14DEO 31 AUGusf2020 Accowtlne policles IcontlThd> 2.7 Intangibleoss¢ts•nrf onwtith {¢ontiThI Amortisation is provided on intanBible assets at rates calculated to write off the cost of each asset on a straieht4ine basis over its expected uselul lile. The estimated useful lives are as follows.. Amorbsaiion is prowded on the followin8 basis.. Website 20 % straight line 2.8 Tortolblefixedassets anddeprttilltlon Tangible fixed assets costin& E5C¥J or mre are capitalised and retogni5ed when future economit benefits are probable and the cost orvalue of the asset be measured reliably. Tangible fixed assets are initialty recognised at COSL After reco8nition. under the cost m¢xlel, tangible fixed assets are measured at cost less accumulated depretiatron and any actumulated impairment1055es. All eosts incurred to bring a tangible fixed asstt into its intended working tondition should be intluded in the measurement of c05t Oepreciaiion is char8ed so as to allocate the cost of tan8ible fixed 355ets less theTrr residual value over their estimated useful live&. OÈpretiation is prNded on the following bases.. Freehd property Fixtvres and equiprnent Computer equipment Prefabricated buildiryd 1- 15% straight Irne 10- 25% straight line 20- 33% straight line 5- 10% straight line 2.9 In¥*stments Fiyed asset in¥estmehts are a fomi of fin•Kial instnjment and are initialty recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in whith case rt is measured at cost less irnpairmenL lTr¥e5tment gain5 and105se5. whether realtsed or unrealised, are combined an4J presented as 'GainsllLossesl on investments. in the consolidated ststement of financial attmties. Investments in subsidiarie5 are valued 3t cost less prNsion for impairment. 110 Stocks Sto£k5 are valued at the lower of cost and net realisable value after makin8 due allowance for obsolete and slow-movir¥ stotks. Cost intludes all dirtrt cost5 and an appropriate proportion of fixed and variablt overhe3ds. Page 24
SKILLS AND EDUCATION GROUP {A company Ilmited by ¢uarantee) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENOED 31 AUGUST 2020 Accountinfj wIl¢ies{kn4dI 111 Debtoffs Trade and other debtors are recogni5ed at the settlement amount after any trade discount offered. Prepayments are valued at the amtyjnt prepaid net ofany trade discounts due. 2.12 Cosh rt I10LIAn hvnd Cash at bank and in hand includes cash and short.terni hiehty liquid investments with è short maturity of three month5 or less from the date of at4uisition or opening of the deposit or similar account. Z13 LkTbilltles Liabilities and Pr11S1oS are recognised when there is an obligation at the balance Sheet date as a result of a past ent, it is probable that a transfer of economic benefit will be required in settlemenL and the amount of the settlement be estimated reliabty. Liabilities are reco8Thised ai the amount that the charitable tompany antiopates it will pay to settle the debt or the amount it has received a5 adVaed payments for the goods or servitss it must wovide. Pmwsions are measured atthe bestestimats of the amounts required to settle the obligation. 2.14 Flnandalln5trunwpts The Group only has financi assets and financial liabilities of a kind that qualify as basic fSnantial instruments. Basic financial instruments are initially reco8nistd at tfansaction value and subsequently rneasured at their settlement Value with tht exceptyon ol bank loans whith are subsequently measured at amortised cost usin8 the effertive interest method. 2.15 Opemtlng leoses Rentals paid under operaiing lèases are Chaed to the con501idated 5tatefflent of financial activities on a straight line basi5 overthe lease term. 2.16 Pensiofts A charitsble company wthin the group Isknlls and Educats"on Group ASsI contributes to the West Yorkshire Pension Scherne IWYPSI. a defined benefit scheme, at rates set by the scheme's actuaries. The charity accounts for the scheme as a defined benefit scheme in attordance with Charities SORP IFR51021. The tharity also contributes in respert ot rtain ernployees to the Teathers. Pension Scheme (TPSI, a statutory, contributory. fjnal salary scheme. The Teathers. Pension Scheme is unable to identify the tharity's share of thè underlying 3S5ets and liabilities on a consistent or reasonable basts. and atcordingly the charity accounts lor its contributi¢Ms w the stheme in accordance with Charities SORP IFRS1021 as if it were a defined contribution stheme. The thafity also contributes to definefl contribution schemes forcertsin employees all of whith are separately administered from the tharFty and the tharge r•crsnised in the Stateff*nt of Financial Activities. Page 25
SKILLS AND EDUCATION GROUP IA company IFmited by yarantee) NOTESTO THE FINANCIALSTATEMEpirs FOR THE YEAR ENDED 31 AUGUST 2020 Accountlng policies Icontiffiued) When employees have rendered services to the tharity. short-tem employee benefits to whlch the employees are entitled are ieco8rMsed at the undisttsjnted amount expected to be paid in exthange for that service. 2.18 FunLlfjccountlJw General fvnds are unrestrirted fvnds which are available for use at the discretion of the Trustees in furtherance of th eeneral objttbves ofthe Grtyjp and whith have not been designated for other purpose5. Crltkalc(countlngestlmrtes qndar¢vsofiudqment Estimates and judgrnents are continually evaluated and are based on historical experience and other factors. indudine expertations of future etsts that are believed tts be reasonable under the tircumstantès. Critical accountir8 estimates and 355umptions'. The charitJle company makes estimates aumptionS concerning the future. The Tesultln8 accounting estimates and assumptions will. by definilion. seldom equal the related actual results. The estimates and assumptions that have a significant risk of causin8 a material adjustment to the tarrying amounts of assets and liabilities within the next finanoal year are discussed below. The present ¥Ve of the WYPS defined liability depends on a number of facwrs that are deterrnined on an actuarial basis using a variety of assumptions. The assumptions used in determinin8 the net costs or income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amoun¢ of the Unrestrirted funds 2020 Total fund5 2020 Total funds 2019 learner reco8nition HE recognition Prgjert. membership and CPO 2.380.635 281,660 1.399.056 2.380.635 281.660 L399.056 2,717.550 253.410 1,016,139 Toto12020 4.061,351 4.061351 3.987.099 Total 2019 3.987,C89 3.987.099 Page 26
SKILLS ANO EOUCATION GROUP IA cornp3ny limited by fjuaranteel NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 IDcorne from othertrading artlvlt Unre5trirttd fvnds 2020 Total .funds 2020 Total funds 2019 Room hi & provision of fxiltties 23.328 23.328 29.248 Totsl 2019 29.248 29.248 Investmerf Income Total fund5 2020 Total funds 2019 fvnds 2020 Dividends receivable from listed investments 11,435 5,251 11.435 5.251 13.398 4,525 Interest receivable 16.686 16,686 17.923 Total 2019 17,923 17,923 Page 27
SKILLS A14D EDUCATION GROUP IA company Ilmlted by 8uar¥ntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Othtr income Total funds 2020 Total fund5 2019 funds 2020 Lettings. admin fee5 and other incoff CJRS income 18.248 335.558 27,930 335,558 353.806 353A06 27.930 Total 2019 27930 27,930 Analys15 of expendhwe on drtsIe a¢ll¥l Unre5trkted fvnds 2020 Totsl funds 2020 Totsl funds 2019 Learner reco8nition HE recognition Project, meMbehIP and CPD 1,513,(M8 251.846 2.525.071 i.Sts.Oq8 251 1,423,370 307,042 2.023.646 2525,071 4.289,96S 4289,965 3.754,058 Total 2019 3.754.058 3.754.058 Page 28
SKILLS AND EDUCATION GROUP IA company limited byyarant*e) NOTES TO THE FINANaAL STATEMEpif5 FOR THE YEAR ENDED 31 AUGUST 2020 Analysls ol expendlture by Ktl undertaken dlredly Support U>Sts 2020 2020 Totsl lunds 2020 Total fund5 2019 Learner recognition HE recognition ProjecL membership and CPD 493.477 95.171 2.121.808 1.019.571 156.675 403.263 I13.1148 251W6 525.071 1.423.370 307.042 2.023.646 2.710.456 1.579,509 4.289.965 3,754,058 Total 2019 2.190.688 1,563,370 3,754.058 Analysis of dlrect Costs ProlecL HE Membetshlp RenitIOn Ilecognition and CPD 2020 2020 2020 Total fund5 2019 fvnds 2020 Staff costs 314,0 91.4C¥) 29,187 34.587 40.184 1.245.371 131.$84 29.187 1,188.392 170.043 37.407 Moderètor and e¥aminers costs Centre costs CPO and proiert expenses Certifi¢3tes 1,225,030 1225.IBO 40.282 18A71 20.131 7%,203 23.096 13.398 2,149 38.753 1,529 18.871 OM re8lstrats.on Finance charges 20.131 493.477 95.171 2.121,808 2.710A56 2,190.688 Total 2019 479,457 117.954 1.593.277 2.190.688 PaÈè 29
SKILLS AND EtXlCAYION GR(XIP IA tornp¥ny Ilmited bYBuarnntt*l NOTES TO THE FIP4ANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 An3tyS olexpenditure b¥ acti¥ibesltontinuedl Analys01 wpport f05ts HE Membership and CPD 2020 Tgtsl fund5 2020 Totsl funds 2019 2020 Pension linance costs 14.OCLI 789.560 47.866 12,000 796,327 145.924 58.847 21.973 Staff costs 102.463 892.023 121.059 7694 6.147 34.793 34.926 22.975 Other staff costs 68.747 39.919 DeprKiation and amorti5ation Qualification development Administration Is 6,147 2.724 7.716 10.925 959 31.110 24.slo .050 34,780 86,591 59.571 Comrnunication5 and marketin 2.7LXI Donations Premises 15,533 1,942 2.298 630 55.450 82.307 44,472 8.6% .36.CQ2 88.324 115,517 23,281 10,957 85.066 24.212 ICT costs 4L184 16.197 125.433 62.967 9.326 74.145 34,638 Professional fees Bank charge5 Irrecoverable VAT 9.835 Governance costs 34,638 1.019.571 156.675 403.263 1.579.509 1,563.370 Total 2019 943,913 189.088 430,369 1,563.370 stsff costs, dep(latiOn. trustee expenses and audit fets have been allocated by way of directly attributable expenditure. The remainin8 expÈnse5 have been allocated using a percentage of income. io. Audltor's remuneratlo The Auditor's remuneration 3mounts to an audit fee of £20,19012019-. £19,6) and other services of £35012019.. £3501. Page 30
SKIUS AND EDUCATION GROUP (A company Ifimlt byarantee) NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 314UGUST 2020 ii. stsff costs Group 2020 Group 2019 Wz8e5 and salaries Sotial security Costs Pension costs 1.756,790 163,957 216.647 1.634,74S 133.599 216.375 2.137394 1,984,719 During the year a totsl of £2.506 was paid12019'. £2.5061 in pert of contrartual termination payments. This amount is an ongoing annual cost to the parent charitable company in perpetuity until the. death of the indiwduals Covered within this payment. This arrangementwas in place prior io any of the current trustees serving on the board. There were also further redundancy costs 01 £42,376 in the year12019-. £nill. Skills and Education GroupAcce5s incurred redundancy costs of £3.665 during the year12019.. Enill. The average numberof persons employed by the tharitable company durin8 the year was as follows: Gr4 Group 2019 2020 No. Charttsble activities 29 30 Administration 21 21 Management 55 The nurnber ofernployees whose ernpltrieÈ benefits lexduding employer pension c05ts1 Èxceeded £60,CrfXI was: GrP 2020 No. Group 2019 In the baftd £60.Q)1- £70,OC#) In the band £1ClI,l- £IIO,iIXI In the band £IIO.IXII- £120.( The total remuneration and benefits received by key management personnel was £221,94312019'. £304,627). The trustees consider senior management personnel to be the Chief Exetutr¥e Officer. Chief Operating Officer and the thrertor of Awarding Ser¥ices12019 onlvl. Page 31
SKIUS AND EDUCATION GROUP IA c<)mpany Ilmtled by 8u*anteel NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR Ef4DED 31 AUGUST 2020 12. Trustres. rernyneration and expenses Ourin8the year, no Trustee5 received any remuneration or other benefits12019- £NIU. trIng the year ended 31 August 2020. travd expenses totalling £2.302 were reimbursed LV paid diredy to 6 Trustees of the charitable grLwJp12019- £1.404 to 7 Trustee51. Included in the above were travel expenses reimbursed to 3 tlltst of the parent charitable company totalling £1.95112019.. £9931. Intanglble assets Group Cost At I September 2019 Additions 186,391 34,041 At 31 August 2020 220A32 Amortist7tlon At I September 2019 Char8e tor the year 64.403 32.624 At 31 August 2020 97,027 At 31 August 2020 123005 At 31 August 2019 121.988 Page 32
SKIL15 A14D EDUCATION GROUP IA company &mited byaraeel NOTESTO THE FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 AUGUST2020 13. Intawfjble a55ets Icontlnuedl aflty Website Cost At I Septernber 2019 Additions 71.1 29,404 At 31 Au8USt 2Q20 0.$94 At I Septembw 2019 Char8e for the year 19.233 14.164 At 31 August 2020 33397 Pletbook lue At 31 Au8usi 2020 57.197 At 31 August 2Q19 51.957 Paee 33
SKILLS AND EOUCATION GROUP IA tompany Ilmlted byguaranteel NOTE5 TO THE FINANCIALSTATEMEPS FOR THE YEAR ENDED 31 AUGUST 2020 14. Tangiblt flxtd assets Group buildi Total Costorvgluatlon At I Septembèr 2019 Additions 2596> 243375 1.589 166.063 29.998 15.482 3ml.120 31587 At 31 Au8USt 2020 25962th1 244.964 15,4182 3.052,707 Depreclotion Al I September 2019 Charse for the year 130227 11,731 15M2 1246.184 53.950 36,572 5,647 At 31 Au8USt 2020 937.541 205.153 141.958 15,482 1300,134 IVetboDk le At 31 August 2020 L658.659 39Jll 54.103 I,75273 At 31 Au8USt 2019 1.695.231 43.869 35.836 1.774,936 Page 34
SKILLS AND EDUCATION GROUP IA cornpany limitd tsy8uarant*è) NOTES TO THE FINANCIALSTATEMEIITS FOR THE YEAR ENDED 31 AUGUST 2020 Tan¥ible fixed a$5ets Icontinwdl Charlty frtlln equiprntht builili T¢441 Costorwluotlon At I September 2019 Additions 1270284 I1359 110.747 IOA96 15.482 I.61072 11085 At 31 August 2020 1,270284 215.148 43 15,482 1,622.157 Depre(1ot At I September 2019 Charge lof the year 241.169 20.159 169M7 5596 75,9n 10,481 509,290 36236 At 31 August 2020 268328 175263 86A53 545.526 At 31 August 2020 l.(Kll.956 39J85 34.7 1,076.631 At 31 August 2019 1.022.115 43.892 34,775 1.100,782 Page 35
SKILLS AND EDUCAnON GROUP IA Corn¥ Ilmited by guarnnteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 AUGUST 20ZO 15. Hx¢d assét In¥stments listed Group Costw Volu1 At I September 2019 Additions 37621 54.250 {563961 120.%71 Disposals Rèvaluations At31Augu5t2020 353,708 Pletbook volue At31 August2020 353,708 At 31 August 2019 376,821 stsbsidilry timed ¢ornp•les knve5tmemts Total tharhabk cornpany At I September 2019 Additions 3561 37621 54.250 156.3961 120.9671 412A82 54.250 1563961 120.9671 Disposals Revaluations At31 August2020 35.661 353.708 389369 Net tsook bvlue At31 August2020 3561 353,708 389369 At 31 Au8USt 2019 35.661 376.821 412.482 Page 36
SKILLS AND EDUCATION GROUP IA company limited by 8uarantee) NOTES TO THE FINANCIAL STATEMENT5 FOR THE YEAR ENDED 3IAUGUST 2020 15. Fixed aet inv¢sim¢nts {c¢Jnfhwedl The historic cost of investments at 31 Au8USt 2020 amcMJnted to £340.50912019: £335,685)." Induded thin the valuation of the portFdio was a cash balance of £12.682 at the year end12019: £12,642). Investrnents held, exceedin8 5% ofthe portf(Alovae at 31 AL¥USt 2020. comprise of: Link lund sol Ltd trojan income x 5.62% Vanguard Funds PLC S&P 500 ucrrs EfF USD di5 S.27% prtndpal subsldlarSe$ The followi were Subsidiary undÈrtakings of the tharitable company: Narnes CornpaThy Charlty Retstefed ¢)ftke or Prlnclpal artl¥lty numbei rebristration principal place Holdln8 Skills and Edutation Group 04117784 Award5 1086947 Robins Wood House, Robins Wood Road. Advancement of skills lOO% and éducation Nottingham, NG83NH Robins Wood House. Robins Wo¢)d Road, Aspley. Nottin8ham. NG8 3NH Skills and Education Group 03773914 Access 1088839 ancement of edueation leaming and training loo% The financial results of the subsidiaries for the year were= tlames Surplu51 É (Dthitl lorthe Net assets Skills and Education Group Awards Skills and Education Gr¢)up Attess L603.318 330.643 1523268 323 107.050 11419971 1.371,955 53.148 16. Stocks 6voup Group 2019 2020 Finished goods and goods for fesale 24.180 10.706 Page 37
SXILLSANO EDUCATION GROUP IA company Ilmited byvarante*l NOTES TO THE FINANCIALSTATEMfpirs FOR THE YEAR ENDEO 31 AUGUST 2020 17. Otbtors Gr•up 2020 Group 2019 Charlty 2020 Charity 2019 Trade debtors 129264 154.249 17A31 1.141 31,768 121,062 1.410 77,439 Amounts owed by group undertakings Other debtors 3.749 15LI Prepayments and ?rUed intomÈ 160.602 107204 309,(%1 9,056 231,679 Credltors: Amountslalllfvg due wlthln one v 6ro¥+ Group 2019 thavity 2020 Charity 2019 2020 Trade creditors 47.050 88.790 44.653 32.266 681,639 9.511 36,826 23032 469.687 39.801 Other taxation and social Security Other creditors 39254 41.319 26,557 524147 29.779 612,224 Attruals and deferred income 6J7Xrfb8 847.348 539A56 723.123 Group Group 2019 Chority 2020 Charity 2019 Deferred income at I September 2019 Resources deferred during the year Arnounts released from previ¢5 periods 482.ni 243.593 1482.7211 139.703 482.721 1139.7031 459,679 218.218 1459.6791 459.679 179.8841 243593 482,721 218.218 459.679 Dtferred income represents monies recerrfed in advance for leamer re8iStration5. memberships. services and projects. Page 38
SKILLS AND EDUCATION GROUP (A company Iln4ted by 8uardntsel NOTES TO THE FINANCJALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 19. Siatement ollunds Slaternent olfunds- current year alan at I 5egtembeF 2019 r>$/ BalaM¢ •¢31 Inrome Eynthiwe ILossesl August 2020 General funds 4.071.703 {756,(rfxII 4A55.171 14.288.9651 {i.cw) 120.9671 I150,0) 4.216.942 1907.r*)o) Desi8nated pension reserve 3.315.703 4.455.171 14289.9651 1170.%7 3.309.942 Seme offunds- prlor year Balance at I Septembef 2018 8alance at 31 August 2019 Gainsl (Losses) Income . Expendtture Unrestrfrtedfvnds General funds 3.750.750 I454,() 4.062.2 13.742.058) 811 4.071.703 1756,CQOI Designated pension re5er¥e 1290.CX)01 3.296.750 4.(62.2 13.754.058) 1289.1891 3.315.703 20. Swnmary otfvn Swnmaryoflunds- current ar Balafiat i September X119 G•ns1 •t31 IL055esl All$t 2020 General funds 3315.703 4,455.171 14,289.9651 1170,9671 3.309,942 Page 39
SKIUSANDEDUCATION GROUP IA ¢ompany limited byiuarantetl NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGusf2020 20. Summary of funds Icontlnued) Summary oflunds- yior year alance at I Septembef 2018 Balance at 31 AuBUSt 2019 Gainsl ILosse51 Income Expenditure General funds 3.296,750 4,062,2 13.754,0581 1289,1891 3,315,703 21. Analys15 of net a55ets bett¥een fvnds Anatysls of nèt assets beh¥é*n fvnds. curreffl perlod Unrestr4Cted funds 2020 T¢tal funds 2020 Tangible re assets Intsn8ible fixed assets Fixed asset investments 1.752.573 123.405 353,708 2.624.264 1637.CK)81 1907.OC(11 L752573 123A05 353,708 624264 1637,0081 {907,0001 Current a55ets Creditors due within one year Pension reserve Total 3,309.942 3309.942 Pa8e 40
SKILLS AND EDUCATION GROUP {A company lin¥ted byguaraffteè) NOTES TOTHE FINANCIAL5TATEMENTS FOR THE YEAR E14DE0 31 AUGUST 2020 21. Anafysls ol net assets beh¥ten funds Iconfjnuedl Analysls ol net assets belween fvrnls. perkjd Unrestricted funds 2019 Total funds 2019 Tangible fixed assets Intangible Ted assets Fixeil asset invethents 1,774,936 121,988 376.821 2.645.306 1847.3481 1756.WOI 1.774.936 121,988 376.821 2,645.306 1847.3481 1756.(K)01 Current a55ets Creditors due withtn one yèar Pension reserve Total 3.315.703 3,315.703 22. Re¢¢n¢ili•tion ol net movement in funds to netoth frorn optrating •cb¥itles Grc Group 2019 2020 Net income for the period las perstattmertt of Financial Activities) 144239 308,953 Adlustnwntsfvr.. DePClab0n ¢har8es Amortisation tharges Gainslllossesl on investments Dividends, intefests and rents from investsnents Ilncreasel in stotks Decreasellincreasel in dtbtor5 IDecTeaseifinuease in creditors Defined benefit ptnsion scheme finance tost 53.950 32.624 20.967 {16.6861 113A741 I2.13 12103401 47,229 17.551 18111 117,9231 110.7061 122,4851 346.902 12,000 Ivet COshpm¥ldedtyopemtlng aCtI¥iti 25.183 680,710 Page 41
SKILL5 AND EDUCATION GROUP (A company limlted by yarantèe} NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Analys55 of cash and eqylvalents Group 2020 Group 2019 Cash in hand 2303,926 2,325.539 Totolcosh ondcosh eqUIlert$ 2J03.916 2,325,539 24. Analysls of changes in net debt Atl September 2019 C•5h fl(¥w5 Al 31 August 2020 Cash at bank and in hanij 2325.539 12L61JI 2303.926 2325J39 121,6131 2303.926 25. Related party transartlons Wls and Edutatlon Gfoup Attess Ouring the year the chanty retharged wa8es costs to its subsidiary, totallin6 £66.376 12019.. £89,238), and received payments Irom this entrty totsllinÈ £92.05512019.. £80.6431. At the year end an amount of £10712019.. £14.0501 was owed from Skills and Education Group Acc. S11$ and Edu¢aiion GMupAwards Durin8 the year the charity recharged wages and other costs to its subsidtary. tOtsllin8 £872.339 12019= £2.079A521. and received payments from thi5 entity totalling £1.166,87812019'. £2.9.6711. At the year end an amount of £1,03412019.. £107,0121 was ¢)wed from Skn'115 and Education Group Awards. Leicerter Colleoe VA Hancocl a trustee. is also the CEO and Prinupal of Leicesier College. During the year the charity invoiced the tolle8e £3,C(Q12019= £7.9201 for provision of charitsble services. At the balance sheet date the amount due from Leitèster Colle8e wa5 £3.C¥JO12019.' £3.{1. Pa8e 42
SKILLSANO EDUCATION GROUP IA company limlted by guarnnteel NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Related partytransartions Icominued) New Colge Startrf¢wd J Meenaghan. a trustee. is also the CEO and Principal of New College Stamford. During the year the tharity inveiced the college £1.640 12019.. £9601 for provision of charitable service5. At th balance sheet date the amount due frorn New Colle8e Stamford was £1.64012019.- £9601. Bumton and Leek C1¥* L l Tindsley. a trustee, is also a Principal of Buxton and Leek clege. During the year the charity invoiced the college £1,32012019'. EI.9401 for provision of charitable seryices. At the balance sheet date the amount due from Buxton and Leek Colle8e was £nil12019= £nill. Boston Collège J Maher, a trustee, is also the CEO, Prtnupal and Director of Boston College. During the year the charity Invoiced the coll4è £3,42012019-. £3,096) for Prowsion of tharitable services and incurred projett expenditure Costs ol £40.6OJ12019: £10.c¥xII . At the balance sheet date the amount due from Boston College was £1.920 12019.. £1.5481. •urtoTh arrfl South Dethshire Colle J 8eaty. a trustee. is alw Deputy Principal of 8urton and sguth Derbyshire Cdlege. During the year the charity invoiced the college £nil12019-. £1.9201 for prowyon of tharitae servi. At the balance sheet date the amount due ffom Burton and South Derbyshire Colle8e was £nil12019.. £nill. Sheffield Colk A Foulkes. a tfUStee. is also Chief Executive and Principal ol Sheffield College. Durin8 the year the charity invoiced the colle8e £54,320 12019.. £3.8401 for provision of charitable services ond incurred project expenditure of £22,3l2019.. £17.2501. At the balance sheet date the amount due from Sheffield Collegè was £3.ocKI12019.. RNN Group A Stott. a trustee. is also thair of RNN Group. During the year the tharity invoiced £25,984 12019: £nill lor provision of tharitsble seThices. At the balance sheet the amount due from RNN Group was £1.92012019-. Northern Cdlrye ft>r Resldentlal Athlt Edurallon Y Y Mellor is a15ts a trustee of Northern Colle8e for Residential Adult Education. During the year. income of £9,730 12019.. £nill wa5 received Irom the charity- There art no arnounts outstanding from the tharrty at the year end {2019.. £nill. 26. Penslon tommltments The Charity contyibutes to defined benefit pension sthemes on behalf of those employees who remain auto-enrolled who are not member5 of either the West Yorkshire Pension Fund or the Teachers, Pension Scheme, Pa8e 43
SKILLS ANO EDUCATION GROUP IA company limited by guantel NOTES TO THE FINANCIALSTATEMEPI FOR THE YEAR ENDED 31 AUGUST 2020 26. nsloh t)mmrtinÈnts (clInUed1 which are defined benefrt arrangements. rexhers. Penslon Stheme The Teathers, PÈnsion Stheme (rpsi is a statutory, contributory. defined benefit scheme. 8ovemed by the Teachers, Pension Stheme Regulations 2014. Membership 15 automztit for tezchers. All teachers have the option to opt-out ol the TPS following enrolment. The TPS is an unfunded scherne to which l)oth the mernber and employer makes contributions, as a percentage of salary - these contributions a crediied to the Extheouer. Retirement and other pension benefits are paid by public funds provided by Parliament. The Government Aetuary. using nomal actuarial principles. conducts a formal actu¥ial review of the TPS in accordance with the Public Sèryice Pensions IValuation5 and Employer Cost Capl Directions 2014 published by HM Treasury every 4 years. The aim of the reeW L5 to 5pe(ify the level ol futUTe contributbons. Actvarial 5theme valLta¢ions are dependent on assumptions about the value gf future costs. destgn of benefits and many other fadors. The latest actuarial valuatitsn of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequtnt consultation are.. employer contribution r5 Set at 23.68% 01 Pensable pay (including a 0.08% administration levyl total scheme liabilities (pensions currently in payment and the e5tirnated cost of future benefits) for serwce to the effective date of £218,ICQ million and notional assets lesiimated future contributions iogetherwith the notional investments held at the valuation datel of £196.10) million, giving a notional past service deficit of £22.0 million the SCAPE rate. set by HMT. is used to determine the notional Investment return. The current SCAPE rate is 2.4% above the rate of CPI. assumed real rate of return is 2.4% in extess of prices and 2% in excess of eamings. The rate of real earnings 8rowth is assumed to be 2.2%. The a55umed nominal rate of return including earniTr8$ 8rowth is 4.45%. The next Wdluation resutt 15 due to bt irr4)lemtnted from l April 2023. A copy of the valuation report and supportin8 documentation ts on the Teatherg. Pensions website. Under the definitions set out in FR5 102, the TPS is an unfunded multiemployer pension stheme. The group has accounted for its contributions to the stherne as if it were a defined Contriblon scheme. The 8roup has set out above the information availablè on the stheme. Wesi Yorkshire Penslon Fund The charfty participates tn the West Yorkshire Pension Fund IWYPFI whith is a muilti-employer def6ned benefit stheme. The date of the rn05t recent comprehenstve artuarial valuation was 31 March 2019. The last fvll actuarial valuation of this scheme by è qualified. independent attuary as at 31 Marth 2019 was updated on an approximate basis to 31 Av8U5t 2020. Contributions were paid at rates of 6.5% to 8.5% for employees throu8hout the year. Employer's contributions were 45% in the year to31 Au8llSt 2020 (year to 31 August 2019- 45%1. Page 44
SKILLS AND EDUCATION GROUP IA t¢mpany limited bysuardntee) NOTES TO THE FINANaALSTATEMEP4T5 FOR THE YEAR ENDED 31 AUGUST 2020 26. Pension comrnitments Itontinuedl Principal actuarial assumptr.ons at the balan sheet date lexpressed as weighted averaÈes1'. At 31 August At 31 August 2020 2019 Discount rate 1.80 Future sa13ry incre85eS Future pension increases CPI inflatson 3.65 3.35 2.20 2A0 2.20 Pension accounts revaluatign r 2.20 At JI At 31 August 2020 2019 Years Years Mortality rates lin years) - for 3 male aeed 65 now - at 65 for a male aged 45 now - for a female aged 65 now - at 65 for a female aged 45 now 22 23 23 25 25 26 27 ' SenSitity anafysi5 At31 Aw# At 31 Au8USt 2020 2019 Oistount rate +0.1% {36.0(101 36,000 197.OODI 95.0th) 135.0001 35,000 186,0001 87.OtKJ Discount rate -0.1% Mortality assumption- l year increase Mortality a5sumption- l year decrease P4t 45
SKILiS AND EDUCATION GROUP IA company lirnited by guaranteè NOTES TO TIIE FINANCIAL5TATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 26. P$10 t¢)mmitrnents Icontinued) The Group'5 Share of the a55ets in the stheme wa5.. At 31 August At 31 August 2020 2019 Equities Govemment bonds Corporate bonds Property Cash and other liquid as5*ts Other 1.283.IXID 160.ty)0 1,378,000 187,000 78.000 34.000 20.000 28,000 25.000 rotoifvirwl¥eoA¢Tssets 1.649.000 1.777.000 The actual retum on stheme assets was £5?.xIl2019- £87.OCQI. The amounts retognised in the Consolidatèd statement of finala1 activities are as follows: 2020 2019 Current service cost 8.000 5.000 Past service cost Interest cost 141 12.000 23.1M)O 25,000 Movements in the present value of the defined benefit obliqation were a5 foll¢yw5'. 2020 2019 Openin8 defined benefit obligation Interest tost 2533mO 45mO 2,250,IXIO 59,000 I,C#JO 330.000 1120,0001 5.000 8.000 Contributions by stheme participants Artuarial10$5es 62.000 194.0001 Benefits paid Past seNct costs Current service cost 9,000 C1051nq definedlxnefftobllqodon 2.SS6.000 2.533.000 Page 46
SKILLS AND EDUCATION GROUP IA tompany Ilmited byguarantet) NOTES TO THE FINANCIALSTATEMEpirs FOR TME YEAR ENDED 31 AUGUST 2020 Z6. Penslon toffimltmeDtsltontlnuedl Movernents in the fwr value of tht Grtyjp's share of stheme assets We as follow5.' 2020 2019 Opening fair value of sthemE assets Interest income 1.7ll.000 JIJ 188.0001 I,M,oco 47.OC4) 40,000 13.lJC¥J 1,000 1120.OC¥JI Actuarial Ilossesllgain5 Contribution5 by emplLryer C*)ntribution5 by %heme participants Benefits paid iy,000) Cfoslnololr Valueolsdrne •ssets 1.649mO 1,777,OCKI 27. operati lease c¢xnmitin¢nts At 31 August 2020 the Group and the Charitale company hzd commitments to make future minirnurn lease payments under non-cancellable operatin8 leases as follow5: Group 2019 Charlty 2020 Chaiity 2019 Not later than I year 7.499 6,588 The following lease payrnents have been rec£8nised as an expenst in the statemÈni of finènclal activities: GrP Group 2019 Charity 2020 Charity 2019 Opefatin6 lease renials 7.499 7.430 7.499 7.430 Page 47