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2021-08-31-accounts

Registered number: 02640936 Charity number: 1004087

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the charitable company, its Trustees and advisers 1
Trustees' report 2 - 13
Independent auditor's report on the financial statements 14 - 17
Consolidated statement of financial activities 18
Consolidated balance sheet 19 - 20
Charitable company balance sheet 21 - 22
Consolidated statement of cash flows 23
Notes to the financial statements 24 - 54

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees A G Stott,Chair
J P Yarham,Vice Chair(resigned 22 June 2021)
L J Tildsley
J P Beaty
A Foulkes
V A Hancock
J Meenaghan
T F O'Brien(resigned 25 January2022)
G Clipson
P A Eeles
J Maher(resigned 5 October 2021)
Y Y Mellor(appointed 14 October 2020)
S C Alton(appointed 20 April 2021)
T Hamilton-Dick(appointed 20 April 2021)
L D Probert(appointed 20 April 2021)
Company registered
number
02640936
Charity registered number
1004087
Registered office
Robins Wood House
Robins Wood Road
Aspley
Nottingham
NG8 3NH
Company secretary
S N Feneley-Lamb
Chief executive officer
P A Eeles
Independent auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Natwest
536 Valley Road
Nottingham
NG5 1FL
Solicitors
Browne Jacobson LLP
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ

Page 1

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees (who are also Directors for the purpose of company law) present their annual report together with the audited financial statements of the charitable company for the year 1 September 2020 to 31 August 2021. The annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (issued in October 2019).

Since the group and the company qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Charity provides a range of services in furtherance of its charitable objective to support “the advancement of skills and education to improve the lives of individuals”. These services include:

The Charity’s strategic aims adopted in support of these objectives are identified by an annual strategic planning process culminating in a five-year strategic plan agreed and monitored by the Board of Trustees and revised as necessary.

Achievements and performance delivering public benefit

a. Main achievements of the Charity

The 2020/21 year saw a strong recovery following the uncertainties of the previous year which was more significantly affected by Covid-19. The recovery demonstrates the resilience of the Charity in meeting and adapting to a changing regulatory, social and economic environment. It also demonstrates the resilience of the providers that the Charity works with and the support that is given by both the Charity and providers to learners.

All staff had returned to work from furlough, on at least a flexible basis, by 1 September 2020 and on a full-time basis by October 2020.

Page 2

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance delivering public benefit (continued)

Awarding Services

The Charity developed and launched a total of thirty new qualifications in 2020/21, which included a suite of Level 1 qualifications with eLearning, and the new Transport Manager qualifications for Road Haulage and Passenger Transport. A Level 3 road haulage qualification went on to become the top performing qualification (by income) for the year ending 2021.

A total of 108 qualifications were reviewed between 1 September 2020 and 31 August 2021. This included many of the reviews planned for 2021/22; these were bought forward to allow the product development team the space and time to focus on the review of the BIIAB (a sister company) qualification portfolio in 2021/22.

There were 23,513 registrations against fourteen occupational sectors. Registrations were highest for engineering and manufacturing occupations (37% of all registrations). Other strong performing sectors were Skills for Life, Learning, Employment and Progression (23%) and counselling and therapy (16%).

The Charity has continued to submit applications for approval to deliver additional end-point assessments throughout 2020/21. As a result, it was approved to offer twelve Apprenticeship Standards across three sectors. The Charity was the first (and currently only) end-point assessment organisation (EPAO) to be approved for the new Level 3 Youth Support Worker Apprenticeship Standard.

Development work was carried out during the year on a new awarding management platform prior to a go-live date of autumn 2022. The new platform will be used for awarding management across all aspects of the Group. It provides comprehensive regulatory compliance and an improved customer interface. The platform also has defined governance and risk management modules that will support the work of the Trustees and their responsibilities.

BIIAB Qualifications

Key activities during the reporting period 1 March to 31 August 2021 was on embedding the Company within the wider group structure, supporting staff and on developing the support infrastructure such as finance and IT.

Alongside this, ten new qualifications were developed. These were predominantly a new suite of SIA endorsed security qualifications, and new personal licence holder qualifications for Scotland and the process of qualification reviews. The period ending 31 August 2021 saw the completion of 116 end-point assessments across seventeen Apprenticeship Standards. The Company finished the year with approval to offer end-point assessment for eighteen Apprenticeship Standards.

Page 3

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance delivering public benefit (continued)

Access to Higher Education

The Charity increased its numbers of providers during the year; nineteen in 2020/21 compared with sixteen in 2019/20. Three new Access to HE Diplomas were also developed. These will be available for registration at the start of 2021. There were 2,497 registrations on diploma programmes in 2020/21 (compared with 2,211 in 2019/20). Of this, 1,431 full diplomas were awarded with a further 484 being awarded credits.

Membership and Communications

The Membership and Communications team reported an increase in engagement with Centres during the year, reflecting the recovery from the impact of Covid-19 in 2019/20 and the resilience of both the Charity and its beneficiaries.

The team provided regular briefings and updates to Centres and held drop-in sessions for customers, providing information, advice and guidance. The business development team were restructured, changing the emphasis of the role to relationship management. Relationship managers moved to operating on a regional basis and have a portfolio of customers spanning across the Group., providing a central point of contact for all group-side services. The team are also building with key regional stakeholders, intelligence from which is used to support product development, strategic and business planning.

Professional development events were attended by 3,344 participants. Within this, demand for in-house/bespoke events increased particularly for management and leadership training. Peer-support networks also remained popular. There was an increase in activity for the online hub; a total of 1,465 practitioners used the online platform.

Grants were awarded to 75 learners through the Foundation. These have supported learners to purchase resources, travel to and from college, supported with the costs of childcare and helped provide additional financial support to asylum seekers. The financial support provided to these learners has ultimately enabled them to progress in their studies and has helped to support them to stay within an educational setting

Operations

The Operations team provided finance, IT and HR functions, data protection and the management of premises and health and safety, particularly in the context of Covid-19. Governance and risk management is the responsibility of the Chief Operating Officer who heads up this team.

There was a staged re-opening of Charity premises with, in some instance, a move to permanent home working for some staff. For other staff, whose role permits it, flexible working patterns that supported a mix of home and office-based work was introduced. A Covid-19 Risk Assessment was developed in advance of staff returning and updated/maintained to reflect new and emerging guidance. The development of this was supported by a group of staff from different teams and entities within the Group. Health and safety equipment and resources have been purchased to help mitigate the risk of Covid-19 in the workplace.

The “lockdown” period tested the ability of the Charity to work remotely whilst continuing to support customers and maintain business functions. This was, generally, very successful but raised questions about the longer term need to sustain remote working and provide professional online support for customers. It became clear that there is far wider acceptance of online professional development and an increasing willingness to participate in virtual meetings and events. As it was felt that this way of working was likely to continue post-pandemic, IT hardware and other resources needed to support remote working and ensure the growth objectives of the Charity could be met were identified. Investment was made into audio visual equipment supporting virtual and hybrid meetings (a mix of virtual participants and face-to-face).

Page 4

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance delivering public benefit (continued)

The Charity continues to deliver the Education and Training Foundations “SET for Teaching Success” programme. In it’s final year, the programme has supported 83 trainee teachers. A strategic decision was taken to reduce the level of project activities in the year. This reflected recognition of increased awarding activity through Skills and Education Group Awards, Skills and Education Group Access and BIIAB Qualifications Limited and the focus in year at harmonizing IT platforms, financial systems and HR approaches.

Project opportunities will continue to be sought where these fulfill the charity’s strategic aims to support its members and the wider sector through the development of new teaching, learning and assessment approaches.

b. Fundraising standards information

The charitable group does not carry out any significant fundraising activities.

Financial review

a. Going concern

Trustees worked closely with the Executive Leadership Team to develop strategic and operational plans that not only mitigate the impact of Covid-19 but also supported the sustained growth of the Group and its subsidiary charities. Such plans included the development of new products and services, and the identification of resources needed to support current and future planned developments.

The acquisition of BIIAB Qualifications Limited (BIIAB), which presented itself at the start of the previous financial year, was completed in February 2021. This followed detailed financial and legal due diligence. In agreeing the purchase, Trustees were keen to protect the financial health of the Group and its subsidiary charities. A purchase agreement was, therefore, put into place providing a model supporting a) minimal cash payment on the date of purchase; and, b) staged purchase payments linked to profitability over a five-year period. The acquisition of BIIAB significantly extended the portfolio of services offered across the Group, increasing the number of customers and access to market. Trustees are confident that BIIAB will make a positive contribution to the on-going financial growth of the Skills and Education Group.

Trustees have also looked at “going concern” in the context of Covid-19, the impact of this and the ways which any impact can be mitigated. Trustees remain confident that the Charity has the continuing resilience to adapt and develop its strategic and operational business plans to meet the needs of its beneficiaries and to find new ways of working.

Based on this work, trustees have a continuing reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Consequently, the trustees continue to adopt the going concern basis of accounts in preparing the financial statements. Further details on the adoption of the going concern basis can be found in the accounting policies. This confidence is based on:

Page 5

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

b. Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific purpose should be maintained at a level necessary to provide a contingency to support day-to-day business activities in the event of reduced income and provide a strategic fund to develop and grow the Charity. Trustees also wish to build reserves to fulfil a Groupwide objective to support social mobility.

In line with best practice guidance, Trustees review the reserves policy each year and confirm that this level of reserve has been maintained.

It is the Charity’s policy to work to building and maintaining reserves to:

Reserve Purpose Target Amount
Contingency •Sustain business operations
•Cover deficits
•Mitigate the risks of unforeseen challenges and/or emergencies
•Cover statutoryobligations		 £1,400,000
Strategic •Support short, medium and long-term objectives
•Support growth
•Invest in research and development for new products and
services
•Infrastructure development to support strategic growth
includingIT infrastructure and applications		 £500,000
Social Mobility •Re-invest surplus funds to support social mobility and provide
public benefit		 £140,000
Designated Pension Fund •Designated fund recognising local government pension scheme
deficit		 £600,000
Designated Fund - Third Party
Contracts		 •Funds for a designated purposed defined by contractual
agreements with thirdparties(project-based activities)		 £100,000

Unrestricted funds at the end of the year were £4,038k (2020 £3,310k) and free reserves which exclude fixed assets and are stated before the defined benefit pension liability are £1,949k (2020 £2,341k). Trustees consider the unrestricted funds to meet the Charity’s reserve policy.

Page 6

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

c. Financial performance and position

The Charity remains in a financially healthy position and continues to meet its agreed financial targets.

The Charity achieved a surplus of £728,062 (2020: deficit £5,761) after an actuarial gain of £306,000 (2020: £150,000 loss) on the defined benefit pension scheme. The surplus before this adjustment is £423,335 (2020: £144,239).

Total income was £4,060,649 (2020: £4,455,171). Income lines for Access to HE, awarding income and MOT Annual Assessments all met budget targets. Income was £75k above the reforecast position agreed in March 2021. Project income reduced to £205k in the year. This relates to the final year of the Education and Training Foundation for the delivery of "SET for Teaching Success" programme.

Total expenditure was £3,680,728 (2020: £4,289,965) and reflects the cost of servicing project activities, including the distribution of funds to FE providers enabling them to develop new approaches to teaching, learning and assessment.

Staff costs for the year were £2,211,045 (2020: £2,137,394). Salaries and associated costs remain the primary cost to the Charity.

Net assets, excluding the defined benefit pension liability, at the year end were £4,638,004 compared with £4,216,942 in 2020.

d. Risk management

Trustees remain aware of the educational and political environment in which the Charity operates and recognise, in particular, the challenges facing providers in the further education sector.

Key risks to the Charity are:

Trustees are satisfied that the systems and review process are in place to mitigate and manage the risks. Strategic risks are managed and monitored through risk registers; one for each of the charities within the charitable group. Risk registers are reviewed and updated by the Executive Leadership Team on a quarterly basis prior to a review by Trustees.

Risk registers are rated on a weighted likelihood and impact scale based on Charity Commission guidance.

A Covid 19 Risk Assessment was carried out in August 2020 prior to the office fully re-opening for all 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 and/or when there are changes to the restrictions put into place by the Government.

Page 7

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

e. Investment policy

The company holds an ethical investment portfolio of listed securities with Brewin Dolphin. The current risk profile is low to moderate which reflects a focus on income over capital growth. The Trustees consider the investment to be long term with an objective to grow the income at least in-line with inflation. At the end of August 2021, the portfolio had a value of £397,699 (2020: £353,708).

Structure, governance and management

a. Constitution

The organisation is a charitable company limited by guarantee, which was set-up on 27 August 1991.

The company was set-up under a Memorandum of Association which established the objectives and powers of the charitable company and is governed under it Articles of Association. Its charitable objective is “the advancement of skills and education to improve the lives of individuals”.

Skills and Education Group is the parent charitable company of the group, which includes:

The Skills and Education Group delivers its products and services through a brand structure that maintains and protects the profile and reputation of the charities/companies within its structure.

Page 8

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

There were seven changes to the Board of Trustees during the year:

Y Y Mellor (appointed 14 October 2020) S C Alton (appointed 20 April 2021) T Hamilton-Dick (appointed 20 April 2021) L D Probert (appointed 20 April 2021) J P Yarham (resigned 22 June 2021) J Maher (resigned 5 October 2021) T F O’ Brien (resigned 25 January 2022)

Trustees are recruited in accordance with the Articles of Association (revised, adopted 12 October 2021) section 18 – 21 which cover elected, co-opted and subsidiary representative directors.

All newly appointed trustees complete a skills audit to ensure a balance of skills, knowledge and experiences to support the development of the charity. Trustee recruitment reflects on-going and future skills and knowledge needs.

c. Policies adopted for the induction and training of Trustees

Newly appointed trustees receive an induction under the direction of the Chief Executive. This normally includes an introductory visit to Robins Wood House when the opportunity to meet with key staff to gain a detailed understanding of the Charity and the subsidiaries within the group.

Trustees complete a declaration of interest record and skills audit on appointment. Declarations are noted on the Register which is reviewed and updated on an annual basis.

Page 9

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

d. Organisational structure and decision-making policies

The Board of Trustees meets four times a year. Trustees:

A Chairs and ELT Group meets four times a year and enables the Chairs to have a collective and strategic oversight of the Charity. The Chairs of the Charity, Skills and Education Group Access, Skills and Education Awards and BIIAB Qualifications Limited are members of this Group.

The group meets prior to quarterly Board of Trustees meetings and provides a structure for the Chairs to review and monitor:

The Chief Executive is a Trustee of the Skills and Education Group, an appointment made under article 20 of the Skills and Education Group Articles.

Day-to-day management of the Charity is delegated to the Group Chief Executive Office, Paul Eeles, who is supported by:

The CEO, COO and two Directors form the Executive Leadership Team. The COO is the Company Secretary for the purpose of Company Law.

The Executive Leadership Team meets on a weekly basis with one meeting a month having a focus on financial performance. Other discussion items include:

At the end of 2021, a senior management team (SMT) consisting of Heads of Service was created. This reflects the size and diverse nature of the Group of charities/companies. The SMT meet monthly and inform the development and implementation of day-to-day business/operational plans and longer-term strategic plans.

Page 10

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

In addition, a Scrutiny Group meets once a month to formally review regulatory needs across all awarding functions and other regulatory requirements including those relating to the Information Commissioners Officer (ICO), Companies House and the Charity Commission. Scrutiny Group membership is the ELT, Deputy Director of Awarding/Responsible Officer, Head of Access, Head of Compliance and Regulation and the Head of Quality.

e. Pay policy for key management personnel

Remuneration for the Chief Executive is determined by the Chairs of the Skills and Education Group and subsidiary charities. The Chief Executive determines the remuneration for all staff, including 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.

Page 11

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Plans for future periods

Trustees supported the development and adoption of “Ambition 2025”, challenging assumptions and using their skills and knowledge to define objectives and associated targets. Ambition 2025 is a five-year strategic plan that articulates ten key priorities that will take the Charity forward. This re-defined the Charity’s purpose, mission and vision to reflect the expanded Group and the services that this now provides:

Purpose

  1. To support the development and delivery of further education and skills providers and their staff

  2. Champion and support the social impact of the further education and skills sector

  3. To develop and award industry relevant, high-quality qualifications, awards, accreditations and end-point assessments

  4. To be a national leader in Access to HE, awarding high quality Access to HE Diplomas that enable learners to progress into further study and/or employment.

Mission

The advancement of skills and education to improve the lives of individuals.

Vision

To provide high-quality services centred on collaboration, responsiveness and diversity, supporting our members and customers to positively impact on the learners, communities and sectors they serve to achieve their full potential, no matter what their age, background or ability.

The plans set annual key performance indicators in the context of longer-term objectives.

Trustees recognised the importance of the White Paper “Skills for Jobs: Lifelong Learning for Opportunity and Growth" (published January 2021) and continue to consider the future direction of the Charity in the context of further education reforms. Trustees recognise the importance of accessible, responsive, and flexible training and the role that employers have in this. The future plans of the Charity are aligned to the White Paper (much of which has been welcomed by the further education sector) and are reflected in business plans that support Ambition 2025.

Trustees also note, the intent for excellent teaching in further education and the role that the Charity has through its professional development offer in supporting this.

Page 12

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the charitable company and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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

Disclosure of information to auditor

In so far as the Trustees are aware:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies' exemption.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Atholl Stott (Mar 30, 2022 16:50 GMT+1)

A G Stott

(Chair of Trustees) Date: Mar 30, 2022

Page 13

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF SKILLS AND EDUCATION GROUP

Opinion

We have audited the financial statements of Skills and Education Group (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 August 2021 which comprise the consolidated statement of financial activities, the consolidated balance sheet, the charitable company balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable 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 that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Page 14

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF SKILLS AND EDUCATION GROUP (CONTINUED)

Other information

The other information comprises the information included in the trustees' report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the trustees' report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

Page 15

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF SKILLS AND EDUCATION GROUP (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed under the Companies Act 2006 and Section 151 of the Charities Act 2011 and report in accordance with those Acts..

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the group and parent charitable company and the sector in which it operates, and considered the risk of such regulations, including fraud. Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to qualification licensing, validating and accessing regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements.We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.

We focussed on laws and regulations relevant to the group and parent charitable company which could give rise to a material misstatement in the financial statements. Our testing included discussions with management and directors with direct responsibility for the compliance of laws and regulations, agreeing financial statement disclosures to underlying supporting documentation, and reviewing legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those

Page 16

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF SKILLS AND EDUCATION GROUP (CONTINUED)

leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members and its trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members, as a body, and the charitable company's trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Apr 4, 2022 14:06 GMT+1)

Jane Marshall (senior statutory auditor) for and on behalf of

BHP LLP

2 Rutland Park Sheffield S10 2PD

Date: Apr 4, 2022

Page 17

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income from:
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income before net gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds before other recognised
gains/(losses)
Other recognised gains/(losses):
Actuarial (losses)/gains on defined benefit pension schemes
29
Loss on foreign exchange
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
3,325,077
675,404
10,235
49,933
4,060,649
663,344
3,017,384
3,680,728
379,921
43,414
423,335
306,000
(1,273)
728,062
3,309,942
728,062
4,038,004		 Total
funds
2021
£
3,325,077
675,404
10,235
49,933
4,060,649
663,344
3,017,384
3,680,728
379,921
43,414
423,335
306,000
(1,273)
728,062
3,309,942
728,062
4,038,004		 Total
funds
2020
£
4,061,351
23,328
16,686
353,806
4,455,171
-
4,289,965
4,289,965
165,206
(20,967)
144,239
(150,000)
-
(5,761)
3,315,703
(5,761)
3,309,942

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

Page 18

SKILLS AND EDUCATION GROUP

(A company limited by guarantee) REGISTERED NUMBER: 02640936

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
26
Creditors: amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Net assets excluding pension liability
Defined benefit pension scheme liability
29
Total net assets
Charity funds
Unrestricted funds
22
Total funds		 39,962
735,328
2,207,585
2,982,875
(973,957)		 2021
£
950,171
1,739,186
397,699
3,087,056
2,008,918
5,095,974
(457,970)
4,638,004
(600,000)
4,038,004
4,038,004
4,038,004		 24,180
296,158
2,303,926
2,624,264
(637,008)		 2020
£
123,405
1,752,573
353,708
2,229,686
1,987,256
4,216,942
-
4,216,942
(907,000)
3,309,942
3,309,942
3,309,942

Page 19

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2021

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Atholl Stott (Mar 30, 2022 16:50 GMT+1)

A G Stott

(Chair of Trustees) Date: Mar 30, 2022

The notes on pages 24 to 54 form part of these financial statements.

Page 20

SKILLS AND EDUCATION GROUP

(A company limited by guarantee) REGISTERED NUMBER: 02640936

CHARITABLE COMPANY BALANCE SHEET AS AT 31 AUGUST 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
20
Total net assets
Charity funds
Unrestricted funds
22
Total funds		 660,268
94,547
754,815
(715,697)		 2021
£
75,427
1,081,734
1,291,330
2,448,491
39,118
2,487,609
(457,970)
2,029,639
2,029,639
2,029,639		 139,151
788,103
927,254
(539,951)		 2020
£
67,197
1,076,631
389,369
1,533,197
387,303
1,920,500
-
1,920,500
1,920,500
1,920,500

Page 21

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

CHARITABLE COMPANY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2021

The charitable company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements. The charitable company's net movement in funds for the year was £64,564 (2020 - £30,185).

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Atholl Stott (Mar 30, 2022 16:50 GMT+1)

A G Stott

(Chair of Trustees) Date: Mar 30, 2022

The notes on pages 24 to 54 form part of these financial statements.

Page 22

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Note
Cash flows from operating activities
Net cash provided by operating activities
25
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of intangible assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Purchase of subsidiary
Net cash used in investing activities
Cash flows from financing activities
Receipt of loan
Net cash provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
26		 2021
£
136,574
10,235
(147,402)
(48,905)
31,839
(32,416)
(96,266)
(282,915)
50,000
50,000
(96,341)
2,303,926
2,207,585		 2020
£
25,183
16,686
(34,041)
(31,587)
56,396
(54,250)
-
(46,796)
-
-
(21,613)
2,325,539
2,303,926

Page 23

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General information

The parent charitable company is limited by guarantee, incorporated in England and Wales and consequently does not have share capital. Each of the Trustees is liable to contribute to an amount not exceeding £1 towards the assets of the parent charitable company in the event of liquidation.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (published in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Skills and Education Group meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements have been prepared in £ sterling which is the functional currency of the Charity and rounded to the nearest £1.

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to conctinue as a going concern.

2.3 Income

All income is recognised once the charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

Page 24

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Taxation

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

2.7 Intangible assets and amortisation

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. Provision is made for any impairment.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.:

Amortisation is provided on the following bases:

Development expenditure - Not depreciated
Goodwill - 10 % straight line
Website - 25 % straight line
Bespoke software - 20 % straight line

Page 25

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property - 1 - 15% straight line
Fixtures and equipment - 10 - 25% straight line
Computer equipment - 20 - 33% straight line
Prefabricated building - 5 - 10% straight line

2.9 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘gains/(losses) on investments’ in the consolidated statement of financial activities.

Investments in subsidiaries are valued at cost less provision for impairment.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 26

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

2.13 Liabilities

Liabilities and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

2.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.15 Operating leases

Rentals paid under operating leases are charged to the consolidated statement of financial activities on a straight line basis over the lease term.

2.16 Pensions

A charitable company within the group (Skills and Education Group Access) contributes to the West Yorkshire Pension Scheme (WYPS), a defined benefit scheme, at rates set by the scheme's actuaries. The charity accounts for the scheme as a defined benefit scheme in accordance with Charities SORP (FRS102).

The charity also contributes in respect of certain employees to the Teachers' Pension Scheme (TPS), a statutory, contributory, final salary scheme. The Teachers' Pension Scheme is unable to identify the charity's share of the underlying assets and liabilities on a consistent or reasonable basis, and accordingly the charity accounts for its contributions to the scheme in accordance with Charities SORP (FRS102) as if it were a defined contribution scheme.

The charity also contributes to defined contribution schemes for certain employees all of which are separately administered from the charity and the charge recognised in the Statement of Financial Activities.

2.17 Employee benefits

When employees have rendered services to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

2.18 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Page 27

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

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

The present value of the WYPS defined liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net costs or income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the liability.

4. Income from charitable activities

Learner recognition
HE recognition
Project, membership and CPD
Total 2021
Total 2020		 Unrestricted
funds
2021
£
2,677,030
356,207
291,840
3,325,077
4,061,351		 Total
funds
2021
£
2,677,030
356,207
291,840
3,325,077
4,061,351		 Total
funds
2020
£
2,380,635
281,660
1,399,056
4,061,351

Page 28

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

5. Income from other trading activities

Income from non charitable trading activities

Room hire & provision of facilities
BIIAB income
Total 2020
Investment income
Dividends receivable from listed investments
Interest receivable
Total 2021
Total 2020		 Unrestricted
funds
2021
£
18,326
657,078
675,404
23,328
Unrestricted
funds
2021
£
10,055
180
10,235
16,686		 Total
funds
2021
£
18,326
657,078
675,404
23,328
Total
funds
2021
£
10,055
180
10,235
16,686		 Total
funds
2020
£
23,328
-
23,328
Total
funds
2020
£
11,435
5,251
16,686

6. Investment income

Page 29

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. Other income

Lettings, admin fees and other income
CJRS income
Total 2021
Total 2020		 Unrestricted
funds
2021
£
11,371
38,562
49,933
353,806		 Total
funds
2021
£
11,371
38,562
49,933
353,806		 Total
funds
2020
£
18,248
335,558
353,806

8. Expenditure on raising funds

Other trading expenses

BIIAB cost of sales
BIIAB administration expenses
Administration depreciation		 Unrestricted
funds
2021
£
151,054
512,106
184
663,344		 Total
funds
2021
£
151,054
512,106
184
663,344		 Total
funds
2020
£
-
-
-
-

Page 30

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Analysis of expenditure on charitable activities

Learner recognition
HE recognition
Project, membership and CPD
Total 2021
Total 2020		 Unrestricted
funds
2021
£
1,618,151
247,474
1,151,759
3,017,384
4,289,965		 Total
funds
2021
£
1,618,151
247,474
1,151,759
3,017,384
4,289,965		 Total
funds
2020
£
1,513,048
251,846
2,525,071
4,289,965

10. Analysis of expenditure by activities

Learner recognition
HE recognition
Project, membership and CPD
Total 2021
Total 2020		 Activities
undertaken
directly
2021
£
337,430
76,650
650,887
1,064,967
2,710,456		 Support costs
2021
£
1,280,721
170,824
500,872
1,952,417
1,579,509		 Total
funds
2021
£
1,618,151
247,474
1,151,759
3,017,384
4,289,965		 Total
funds
2020
£
1,513,048
251,846
2,525,071
4,289,965

Page 31

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Moderator and examiners costs
Centre costs
CPD and project expenses
Certificates
QAA registration
Finance charges
Total 2021
Total 2020		 Learner
Recognition
2021
£
139,295
132,991
21,614
-
35,771
-
7,759
337,430
493,477		 HE
Recognition
2021
£
11,347
36,501
-
-
7,224
21,578
-
76,650
95,171		 Project,
Membership
and CPD
2021
£
503,981
-
-
146,906
-
-
-
650,887
2,121,808		 Total
funds
2021
£
654,623
169,492
21,614
146,906
42,995
21,578
7,759
1,064,967
2,710,456		 Total
funds
2020
£
1,245,371
131,584
29,187
1,225,030
40,282
18,871
20,131
2,710,456

Page 32

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Pension finance costs
Staff costs
Bad debt
Other staff costs
Depreciation and amortisation
Qualification development
Administration
Communications and marketing
Donations
Premises
ICT costs
Professional fees
Bank charges
Irrecoverable VAT
Governance costs
Total 2021
Total 2020		 Learner
Recognition
2021
£
14,000
938,819
159
41,766
17,777
33,071
45,431
2,358
8,835
13,195
53,440
22,069
-
30,838
58,963
1,280,721
1,019,571		 HE
Recognition
2021
£
-
127,103
-
1,470
19,928
-
855
718
-
13,822
1,463
2,301
516
2,648
-
170,824
156,675		 Project,
Membership
and CPD
2021
£
-
-
-
90,297
44,026
-
29,597
28,677
23,200
68,846
128,535
57,650
9,298
20,746
-
500,872
403,263		 Total
funds
2021
£
14,000
1,065,922
159
133,533
81,731
33,071
75,883
31,753
32,035
95,863
183,438
82,020
9,814
54,232
58,963
1,952,417
1,579,509		 Total
funds
2020
£
14,000
892,023
-
121,059
76,094
3,997
34,793
34,926
22,975
73,133
125,433
62,967
9,326
74,145
34,638
1,579,509

Staff costs, depreciation, trustee expenses and audit fees have been allocated by way of directly attributable expenditure. The remaining expenses have been allocated using a percentage of income.

11. Auditor's remuneration

The Auditor's remuneration amounts to an audit fee of £30,830 (2020: £20,190) and other services of £360 (2020: £420).

Page 33

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 Group
2021
£
1,820,217
166,475
224,353
2,211,045		 Group
2020
£
1,756,790
163,957
216,647
2,137,394

During the year a total of £2,506 was paid (2020: £2,506) in respect of contractual termination payments. This amount is an ongoing annual cost to the parent charitable company in perpetuity until the death of the individuals covered within this payment. This arrangement was in place prior to any of the current trustees serving on the board. There were also further redundancy costs of £9,000 in the year (2020: £42,376). Skills and Education Group Access incurred redundancy costs of £nil during the year (2020: £3,665).

The average number of persons employed by the charitable company during the year was as follows:

Charitable activities
Administration
Management		 Group
2021
No.
24
12
13
49		 Group
2020
No.
29
21
4
54

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 2 1
In the band £70,001 - £80,000 1 -
In the band £110,001 - £120,000 - 1
In the band £120,001 - £130,000 1 -

The total remuneration and benefits received by key management personnel was £419,484 (2020: £236,422). The trustees consider the key management personnel to be the Chief Executive Officer, Chief Operating Officer, Director of Member Services and Communication (2021 only) and the Director of Awarding Services (2021 only).

Page 34

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

13. Trustees' remuneration and expenses

During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the charitable company. The value of Trustees' remuneration and other benefits was as follows:

2021 2020
£ £
P A Eeles Remuneration 121,884 117,238
Pension contributions paid 26,401 19,344

During the year ended 31 August 2021, travel expenses totalling £280 were reimbursed or paid directly to 2 Trustees of the charitable group (2020 - £2,302 to 6 Trustees).

Included in the above were travel expenses reimbursed to 2 trustees of the parent charitable company totalling £280 (2020: £1,951 to 3 Trustees).

14. Intangible assets

Group

Cost
At 1 September 2020
Additions
At 31 August 2021
Amortisation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Development
£
-
60,576
60,576
-
-
-
60,576
-		 Bespoke
software
£
-
21,541
21,541
-
414
414
21,127
-		 Website
£
220,432
65,285
285,717
97,027
36,746
133,773
151,944
123,405		 Goodwill on
consolidation
£
-
754,236
754,236
-
37,712
37,712
716,524
-		 Total
£
220,432
901,638
1,122,070
97,027
74,872
171,899
950,171
123,405

Page 35

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14.
Intangible assets (continued)
Charity
Cost
At 1 September 2020
Additions
At 31 August 2021
Amortisation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Website
£
100,594
26,968
127,562
33,397
18,738
52,135
75,427
67,197

Page 36

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Tangible fixed assets

Group

Cost or valuation
At 1 September 2020
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
2,596,200
-
2,596,200
937,541
34,997
972,538
1,623,662
1,658,659		 Fixtures and
fittings
£
244,964
2,048
247,012
205,153
5,047
210,200
36,812
39,811		 Office
equipment
£
-
1,623
1,623
-
184
184
1,439
-		 Computer
equipment
£
196,061
45,234
241,295
141,958
22,064
164,022
77,273
54,103		 Prefabricated
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
3,052,707
48,905
3,101,612
1,300,134
62,292
1,362,426
1,739,186
1,752,573

Page 37

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 September 2020
Additions
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold
property
£
1,270,284
-
1,270,284
268,328
18,547
286,875
983,409
1,001,956		 Fixtures and
fittings
£
215,148
2,048
217,196
175,263
4,986
180,249
36,947
39,885		 Computer
equipment
£
121,243
45,234
166,477
86,453
18,646
105,099
61,378
34,790		 Prefabricated
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
1,622,157
47,282
1,669,439
545,526
42,179
587,705
1,081,734
1,076,631

Page 38

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Fixed asset investments

Group
Cost or valuation
At 1 September 2020
Additions
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
Charitable company
Cost or valuation
At 1 September 2020
Additions
On acquisition of subsidiaries
Disposals
Revaluations
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Investments in
subsidiary
companies
£
35,661
-
857,970
-
-
893,631
893,631
35,661		 Listed
investments
£
353,708
32,416
-
(31,839)
43,414
397,699
397,699
353,708		 Listed
investments
£
353,708
32,416
(31,839)
43,414
397,699
397,699
353,708
Total
£
389,369
32,416
857,970
(31,839)
43,414
1,291,330
1,291,330
389,369

Page 39

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16. Fixed asset investments (continued)

The historic cost of listed investments at 31 August 2021 amounted to £338,384 (2020: £340,509).

Included within the valuation of the portfolio was a cash balance of £10,704 at the year end (2020: £12,682).

Principal subsidiaries

The following were subsidiary undertakings of the charitable company:

Names Company Charity Registered office or Registered office or **Principal activity ** **Principal activity ** Holding
number registration principal place
number of business
Skills and Education Group 04117784 1086947 Robins Wood House, Advancement of 100%
Awards Robins Wood Road, skills and
Aspley, education
Nottingham,
NG8 3NH
Skills and Education Group 03773914 1088839 Robins Wood House, Advancement of 100%
Access Robins Wood Road, education
Aspley, learning and
Nottingham, training
NG8 3NH
BIIAB Qualifications Limited 10054831 N/a Robins Wood House, Advancement of 100%
Robins Wood Road, education
Aspley, learning and
Nottingham, training in the
NG8 3NH Hospitality
Sector
Quality Licence Scheme 10051052 N/a Robins Wood House, Advancement of 100%
Limited (dormant) Robins Wood Road, primary and
Aspley, secondary
Nottingham, education
NG8 3NH
The financial results of the subsidiaries for the year were:
Names Income Expenditure Surplus/ Net assets
£ £ (Deficit) for the £
year
£
Skills and Education Group Awards 1,881,515 1,582,896 298,619 1,670,574
Skills and Education Group Access 392,148 371,578 20,570 379,718
BIIAB Qualifications Limited 657,078 625,632 31,446 135,180

The financial results of the subsidiaries for the year were:

Page 40

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. Stocks
Group Group
2021 2020
£ £
Finished goods and goods for resale 39,962 24,180

18. Debtors

Trade debtors
Amounts owed by group undertakings
Other debtors
Called up share capital not paid
Prepayments and accrued income		 Group
2021
£
495,752
-
2,527
2
237,047
735,328		 Group
2020
£
129,264
-
6,292
-
160,602
296,158		 Charity
2021
£
44,584
562,812
-
-
52,872
660,268		 Charity
2020
£
27,831
1,141
2,975
-
107,204
139,151

Page 41

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

19. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2020
Resources deferred during the year
Amounts released from previous periods		 Group
2021
£
50,000
129,800
98,469
201,069
494,619
973,957
Group
2021
£
243,593
255,974
(243,593)
255,974		 Group
2020
£
-
47,050
39,254
26,557
524,147
637,008
Group
2020
£
482,721
243,593
(482,721)
243,593		 Charity
2021
£
50,000
47,635
53,682
195,369
369,011
715,697
Charity
2021
£
218,218
219,484
(218,218)
219,484		 Charity
2020
£
-
9,511
36,814
23,939
469,687
539,951
Charity
2020
£
459,679
218,218
(459,679)
218,218

Deferred income represents monies received in advance for learner registrations, memberships, services and projects.

20. Creditors: Amounts falling due after more than one year

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Other creditors 457,970 - 457,970 -

Page 42

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. Business combinations

On 28 February 2021 the charitable company acquired 100% of the share capital of BIIAB Qualifications Ltd for £900,000. £200,000 was settled in cash. Seven further deferred consideration payments of £100,000 are due with a net present value of £657,970.

Current Assets
Stocks
Debtors
Total Assets
Creditors
Due within one year
Total Identifiable net assets
Goodwill
Total purchase consideration
The goodwill arising on acquisition is attributable to Skills and Education Group.
The results of BIIAB Qualifications Ltd since acquisition are as follows:
Revenue
Profit for the period since acquisition		 Book value
£
8,359
218,272
226,631
(122,897)
103,734		 Fair value
£
8,359
218,272
226,631
(122,897)
103,734
754,236
857,970
Current period
since
acquisition
£
657,078
31,446

Page 43

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

22.
Statement of funds
Statement of funds - current year
Unrestricted funds
General funds - charitable
company
Skills and Education Group
Awards post acquisition reserves
Skills and Education Group Access
BIIAB Qualifications post
acquisition reserves
Designated pension reserve - SEG
Access
Statement of funds - prior year
Unrestricted funds
General funds - charitable
company
Skills and Education Group
Awards post acquisition reserves
Skills and Education Group Access
Designated pension reserve - SEG
Access		 Balance at 1
September
2020
£
1,920,500
1,336,294
960,148
-
(907,000)
3,309,942
Balance at
1 September
2019
£
1,890,315
1,229,243
952,145
(756,000)
3,315,703		 Income
£
1,129,908
1,881,515
392,148
657,078
-
4,060,649
Income
£
2,494,209
1,630,319
330,643
-
4,455,171		 Expenditure
£
(1,100,622)
(1,582,896)
(372,578)
(625,632)
1,000
(3,680,728)
Expenditure
£
(2,443,057)
(1,523,268)
(322,640)
(1,000)
(4,289,965)		 Gains/
(Losses)
£
42,141
-
-
-
306,000
348,141
Gains/
(Losses)
£
(20,967)
-
-
(150,000)
(170,967)		 Balance at 31
August 2021
£
1,991,927
1,634,913
979,718
31,446
(600,000)
4,038,004
Balance at
31 August
2020
£
1,920,500
1,336,294
960,148
(907,000)
3,309,942

Page 44

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

23. Summary of funds

Summary of funds - current year

General funds
Summary of funds - prior year
General funds		 Balance at 1
September
2020
£
3,309,942
Balance at
1 September
2019
£
3,315,703		 Income
£
4,060,649
Income
£
4,455,171		 Expenditure
£
(3,680,728)
Expenditure
£
(4,289,965)		 Gains/
(Losses)
£
348,141
Gains/
(Losses)
£
(170,967)		 Balance at 31
August 2021
£
4,038,004
Balance at
31 August
2020
£
3,309,942

24. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Pension reserve
Total		 Unrestricted
funds
2021
£
1,739,186
950,171
397,699
2,982,875
(973,957)
(457,970)
(600,000)
4,038,004		 Total
funds
2021
£
1,739,186
950,171
397,699
2,982,875
(973,957)
(457,970)
(600,000)
4,038,004

Page 45

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

24. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Intangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Pension reserve
Total		 Unrestricted
funds
2020
£
1,752,573
123,405
353,708
2,624,264
(637,008)
(907,000)
3,309,942		 Restricted
funds
2020
£
-
-
-
-
-
-
-		 Total
funds
2020
£
1,752,573
123,405
353,708
2,624,264
(637,008)
(907,000)
3,309,942

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
(Losses)/ gains on investments
Dividends, interests and rents from investments
(Increase) in stocks
(Increase)/decrease in debtors
(Decrease) in creditors
Defined benefit pension scheme FRS102 costs
(Loss) on foreign exchange
Net cash provided by operating activities		 Group
2021
£
423,335
62,292
74,872
(43,414)
(10,235)
(15,782)
(439,170)
86,949
(1,000)
(1,273)
136,574		 Group
2020
£
144,239
53,950
32,624
20,967
(16,686)
(13,474)
12,903
(210,340)
1,000
-
25,183

Page 46

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

26. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2021
£
2,207,585
2,207,585		 Group
2020
£
2,303,926
2,303,926

27. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1
September
2020
£
2,303,926
-
2,303,926		 Cash flows
£
103,659
(50,000)
53,659		 Acquisition
and disposal
of
subsidiaries
£
(200,000)
-
(200,000)		 At 31 August
2021
£
2,207,585
(50,000)
2,157,585

Page 47

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

28. Related party transactions

Skills and Education Group Access

During the year the charity recharged wages costs to its subsidiary, totalling £160,644 (2020: £66,376), and received payments from this entity totalling £160,577 (2020: £92,055). At the year end an amount of £69 (2020: £107) was owed from Skills and Education Group Access.

Skills and Education Group Awards

During the year the charity recharged wages and other costs to its subsidiary, totalling £1,150,172 (2020: £872,359), and received payments from this entity totalling £1,106,868 (2020: £1,166,878). At the year end an amount of £60,238 (2020: £1,034) was owed from Skills and Education Group Awards.

BIIAB Qualifications Limited

During the period from acquisition the charity recharged wages and other costs to its subsidiary, totalling £208,477 (2020: £nil), and received payments from this entity totalling £Nil. At the year end an amount of £513,609 (2020: £nil) was owed from BIIAB Qualifications Limited.

Leicester College

V A Hancock, a trustee, is also the CEO and Principal of Leicester College. During the year the charity invoiced the college £12,920 (2020: £3,000) for provision of charitable services. At the balance sheet date the amount due from Leicester College was £2,648 (2020: £3,000).

York College

L D Probert, a trustee appointed in the year, is also the CEO and Principal of York College. During the year the charity invoiced the college £3,000 (2020: £Nil) for provision of charitable services. At the balance sheet date the amount due from York College was £Nil (2020: £Nil).

New College Stamford (part of Inspire Education Group)

J Meenaghan, a trustee, is also the CEO and Principal of New College Stamford. During the year the charity invoiced the college £1,920 (2020: £1,640) for provision of charitable services. At the balance sheet date the amount due from New College Stamford was £1,605 (2020: £1,640).

Buxton and Leek College (part of the University of Derby)

L J Tindsley, a trustee, is also a Principal of Buxton and Leek College. During the year the charity invoiced the college £3,030 (2020: £1,320) for provision of charitable services. At the balance sheet date the amount due from Buxton and Leek College was £Nil (2020: £nil).

Sheffield College

A Foulkes, a trustee, is also Chief Executive and Principal of Sheffield College. During the year the charity invoiced the college £3,000 (2020: £54,320) for provision of charitable services and incurred project expenditure of £Nil (2020: £22,300). At the balance sheet date the amount due from Sheffield College was £Nil (2020: £3,000).

Northern College for Residential Adult Education

Y Y Mellor is also a trustee of Northern College for Residential Adult Education. During the year, income of £1,920 (2020: £9,730) was received from the charity. There are no amounts outstanding from the charity at the year end (2020: £nil).

Page 48

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

28. Related party transactions (continued)

Loughborough College

J Maher, a trustee who resigned in the current year, is also CEO of Loughborough College. During the year the charity invoiced the college £10,170 for provision of charitable services. At the balance sheet date the amount due from Loughborough College was £nil.

Federation of Awarding Bodies

P Eeles, CEO, was Chair of the Federation of Awarding Bodies until 8 December 2020. In this period the charity invoiced the organisation £4,619 for provision of charitable services. At the balance sheet date the amount due from the Federation of Awarding Bodies was £nil.

Page 49

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

29. Pension commitments

The Group operates a defined benefit pension scheme.

The Charity contributes to defined benefit pension schemes on behalf of those employees who remain auto-enrolled who are not members of either the West Yorkshire Pension Fund or the Teachers' Pension Scheme, which are defined benefit arrangements.

Teachers' Pension Scheme

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

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

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2023.

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

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The group has accounted for its contributions to the scheme as if it were a defined contribution scheme. The group has set out above the information available on the scheme.

Page 50

SKILLS AND EDUCATION GROUP

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

29. Pension commitments (continued)

West Yorkshire Pension Fund

The charity participates in the West Yorkshire Pension Fund (WYPF) which is a muilti-employer defined benefit scheme.

The date of the most recent comprehensive actuarial valuation was 31 March 2019. The last full actuarial valuation of this scheme by a qualified, independent actuary as at 31 March 2019 was updated on an approximate basis to 31 August 2021.

Contributions were paid at rates of 6.5% to 8.5% for employees throughout the year. Employer's contributions were 45% in the year to 31 August 2021 (year to 31 August 2020 - 45%).

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

At 31 August At 31 August
2021 2020
% %
Discount rate 1.70 1.60
Future salary increases 3.95 3.65
Future pension increases 2.70 2.40
CPI inflation 2.70 2.40
Pension accounts revaluation rates 2.70 2.40
At 31 August At 31 August
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 21.9 21.8
- at 65 for a male aged 45 now 22.6 22.5
- for a female aged 65 now 24.7 24.6
- at 65 for a female aged 45 now 25.8 25.7

Page 51

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

29. Pension commitments (continued)

Sensitivity analysis

At 31 August At 31 August
2021 2020
£ £
Discount rate +0.1% (35,000) (36,000)
Discount rate -0.1% 35,000 36,000
Mortality assumption - 1 year increase (99,000) (97,000)
Mortality assumption - 1 year decrease 96,000 95,000

The Group's share of the assets in the scheme was:

Equities
Government bonds
Corporate bonds
Property
Cash and other liquid assets
Other
Total fair value of assets		 At 31 August
2021
£
1,549,000
154,000
85,000
73,000
42,000
27,000
1,930,000		 At 31 August
2020
£
1,283,000
160,000
82,000
71,000
28,000
25,000
1,649,000

The actual return on scheme assets was £360,000 (2020 - £57,000).

The amounts recognised in the Consolidated statement of financial activities are as follows:

Current service cost
Interest cost
Total amount recognised in the Consolidated statement of financial activities		 2021
£
10,000
14,000
24,000		 2020
£
9,000
14,000
23,000

Page 52

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

29. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Actuarial losses
Benefits paid
Current service cost
Closing defined benefit obligation
Movements in the fair value of the Group's share of scheme assets were as follows:
Opening fair value of scheme assets
Interest income
Actuarial gains/(losses)
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2021
£
2,556,000
40,000
1,000
18,000
(95,000)
10,000
2,530,000
2021
£
1,649,000
26,000
324,000
25,000
1,000
(95,000)
1,930,000		 2020
£
2,533,000
45,000
1,000
62,000
(94,000)
9,000
2,556,000
2020
£
1,777,000
31,000
(88,000)
22,000
1,000
(94,000)
1,649,000

Page 53

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

30. Operating lease commitments

At 31 August 2021 the Group and the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Not later than 1 year - 7,499 - 7,499

The following lease payments and changes in lease payments have been recognised in the statement of financial activities:

Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Operating lease rentals 7,499 - 7,499 -

Page 54