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2022-08-31-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 2022

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 13
Independent Auditors' Report on the Financial Statements 14 - 18
Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20 - 21
Charity Balance Sheet 22 - 23
Consolidated Statement of Cash Flows 24
Notes to the Financial Statements 25 - 56

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees S C Alton
J P Beaty
G Clipson MBE
P A Eeles
A Foulkes (resigned 11 October 2022)
T Hamilton-Dick
V A Hancock
A Hardy (appointed 26 April 2022)
J Meenaghan
Y Y Mellor
P W Price-Hazlehurst (appointed 26 April 2022, resigned 18 November 2022)
L D Probert
S Smith (appointed 26 April 2022, resigned 14 September 2022)
A G Stott, Chair
L J Tildsley
Company registered
number
02640936
Charity registered
number
1004087
Registered office
Robins Wood House
Robins Wood Road
Aspley
Nottingham
NG8 3NH
Chief Executive Officer
P A Eeles
Company Secretary
S Feneley-Lamb
Independent auditors
Streets Audit LLP
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
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 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2021 to 31 August 2022. 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) (effective October 2019).

Objectives and activities

a. Policies and objectives

The Charity provides a range of service 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 “Ambition 2025” setting out the strategy and direction of the charity to August 2025. This is supported by annual process which sets out clear strategic targets for in-year achievement. Plans are agreed and monitored by the Board of Trustees.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 2

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategic report

Achievements and performance

a. Main achievements of the Charity

Achievements and performance delivering public benefit

The Charity has a clear focus on improving the lives of individuals by championing education and skillsorientated organisations, providers and learners. The Charity is guided by ethics, professionalism, teamwork and a drive to achieve educational, economic and social advancement for all. The Charity provides funding opportunities, professional development programmes and initiatives in support of teaching, learning, assessment and governance.

Professional Development

The organisation provides high quality services such as professional development, networks and conference all of which aim to help and support the further education and skills sector workforce. The range of services provided is designed to enable the sector, and the staff that work within it, to enhance the lives of young people and adults.

Professional development events were attended by 3,094 participants. The demand for in-house/bespoke events continues, particularly for the successful “Emerging Leaders” course. Peer-support networks remain popular.

After two years away, the Skills and Education Group Conference returned in May 2022. The Group’s first conference since 2019 also marked its 110-year anniversary, with the roots of the charity dating back to 1912. Following two challenging years for the education sector, the conference was a chance for those working in further education to come together and celebrate our successes. Over 250 people attended the event and benefited from keynote speeches, panel discussions, training seminars, and an exhibition. Inspirational keynotes were delivered by recipients of a Foundation grant including from Mamello Atisa, a learner at the member organisation, Fashion Enter, whose studies have been supported by a grant from the Skills and Education Group Foundation. She spoke about how education helped her to find a new sense of purpose and get back on track after redundancy, saying the grant was a “huge vote of confidence” at a time when redundancy left her “wilting” with questions and doubts.

Skills and Education Group Foundation

The Skills and Education Group Foundation champions social mobility and social inclusion within the further education and skills sector. During the year, the Foundation expanded its range of work, continuing and growing its offer of grants to learners and providing financial aid and support in kind to support staff research and project activities. Grant payments are funded through a dedicated fund agreed by Trustees and is based on a share of surplus by the Charity and its subsidiaries.

The Foundation’s Learner Grant helps individuals to overcome social barriers and advance their skills and education, these grants are for applicants who demonstrate a commitment and willingness to achieve. The Learner Grants programme was strongly administered and received, delivering to 50% more students than we anticipated, and supporting learners with course costs, childcare, travel and living expenses, health, and more. Grant applications were motivated by:

Page 3

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategic report (continued)

Achievements and performance (continued)

The Foundation received 344 applications to the Leaner Grant Programme, of which 149 were approved and received a total of £83,255 in support. The top three uses for Learner Grants were:

In March of 2022, we opened Staff Research Grant applications to our member organisations, offering £3,000 to any staff teams that identified a barrier to the development of their learners and proposed a way of working to address it. We were not let down by the range and quality of applications.

The opportunity to carry out staff research projects was so well received by our members, and these projects have provided the beginnings of strong and interesting work that we are extending this year and moving into our continuing professional development calendar.

Awarding Services

The Charity’s awarding services are delivered through Skills and Education Awards (Awards) and BIIAB Qualifications Limited (BIIAB). Awards is a leading national organisation with a long-established reputation for providing high quality support and services to the education sector. BIIAB is an awarding and End-point Assessment organisation of choice for work-based learning providers, employers and the further education sector with a focus on the hospitality sector.

There were 82,754 qualifications awarded across a portfolio of 268 regulated qualifications for Skills and Education Group and 257 for BIIAB Qualifications Limited. Awards and BIIAB offer 31 End-point assessment standards (EPA) and had 336 registrations during the year. There were 264 EPA achievements (78%). Thirteen new Level 2 and 3 qualifications were developed and launched, all designed to meet employer needs and to provide individuals with the skills, knowledge and confidence to enter the job market.

Skills and Education Group Awards

In the last year, the Awards portfolio continued to expand, developing a range of new qualifications and assessments, particularly in the patisserie and confectionery, animal care, and fashion and textiles fields. In

Page 4

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategic report (continued)

Achievements and performance (continued)

addition, we developed e-learning to support the delivery of our fabrication and welding qualifications, and introduced XAMS, a new online exams system.

A partnership with the Gangmaster and Labour Abuse Authority (GLAA), Boston College and the University of Nottingham’s Rights Lab resulted in the development of a qualification to raise awareness of rights in the workplace. The Level 1 qualification was developed in 2021 and saw considerable success in its first full year (2021/22). As one learner noted “the Level 1 Award in Workers Rights and Labour Exploitation is fantastic. It opened my eyes to what’s happening in the world”.

Engagement increased with industry groups, building stronger relationships, and fostering more support for customers and the beneficiaries of the charity’s services. For example, a strong relationship with organisations within the motor industry has enabled us to maintain occupational competency and gain access to specific knowledge and support, including recruitment of expert subcontractors and specialists, as we support training activities. For example, the Auto Care/Fast Fit sector, employs approximately 1,200 people across 2,000 businesses, the end-point assessment of the Autocare Apprenticeship Standard is designed to fit with employer and sector needs and the commitment to train new staff. A trusted partner of the automotive industry, Skills and Education Group Awards has a strong working relationship with the DVSA, and for the last five years we have provided the management of MOT Tester and Manager qualifications.

During the year, 19,200 qualifications were certificated. An ongoing partnership with Advanced Secure Technologies, and the use of blockchain technology helped protect the integrity of award certifications.

BIIAB Qualifications Limited

An awarding and End-Point Assessment Organisation of choice for work-based learning providers, employers and further education colleges, BIIAB offers regulated qualifications and assessments to advance skills, education and career opportunities in the hospitality, health and social care sectors, and more.

In the last year, the review of the product portfolio continued, extending and developing qualifications as required. This included BIIAB L2A for Personal Licence Holders, new qualifications in health and social care, BIIAB L3D in Adult Care and BIIAB L5D in Leadership and Management for Adult Care. BIIAB now offer a wider range of qualifications and assessments than ever before. To support its customers, a new website was launched in November 2021, making it easier to find information, including opportunities that can be accessed across the wider Skills and Education Group.

Passionate about apprenticeships, BIIAB exhibited at the AELP Conference and Annual Apprenticeship Conference and celebrated National Apprenticeship Week and Hospitality Apprenticeships Week.

In a leadership role, a close relationship with the British Institute of Innkeeping (BII) continued. BIIAB supported events such as the BII People Conference, National Innovation in Training Awards and the BII Winter Event. Opportunities were also provided for individuals to gain BII membership and Professional Licensee status by completing BIIAB licensing qualifications.

Matching recovery in the hospitality sector, license to practice qualifications offered by BIIAB saw a significant increase in learner registrations. 60,518 registrations were made during 2021/22.

Industry engagement and partnership remains a key priority for BIIAB and, in this context, the partnership with the British Institute of Innkeeping (BII) continues. BIIAB has also connected with the other sectors that it supports including health and social care, business support and the education and skills workforce.

Page 5

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategic report (continued)

Achievements and performance (continued)

Investment has been made in a new certificate-printing platform providing digital and the more traditional paper certificate. An exam-proctoring service and e-learning platform were also commissioned.

Skills and Education Group Access

Licensed by the Quality Assurance Agency (QAA) to validate and quality assure Access to HE Diplomas, we provide Diplomas that have been specially developed in partnership with higher education and further education experts to offer students a second chance to obtain the skills needed to go on to study for a degree at university. With new centres, new Diplomas and an increased number of learners taking our Access to HE Diploma, it’s a real success. The Access to HE Diploma is a widely recognised Level 3 qualification that provides opportunities for adults to transition to higher education and retrain for a second graduate-entry profession. Delivering locally-devised, flexible courses, the Diploma supports local and national skills needs.

There were 2,848 registrations (2021: 2,497) on diploma programmes and 1,660 diplomas awarded. 75.6% of the learner cohort were female with 40.2% of all learners coming from the 20-24 age group. 33.7% of learners came from an area of disadvantage compared with 26.6% nationwide. The most popular diplomas were Humanities and Social Science. Three new diplomas were developed in clothing and textiles manufacturing, early years and medicine.

Quality Licence Scheme Limited

The Quality Licence Scheme (QLS) helps organisations develop high-quality courses and/or training programmes for the non-regulated market. The courses on QLS are designed to offer training and learning opportunities without using regulated qualifications and can also be used for in-house training and for keeping continuing professional development up to date for qualification memberships.

To participate in QLS, customers have to pass their approval/re-approval audits, which ensure that they comply with the QLS Standard and Guidance and are committed to the quality of their organisation, courses and learners. With a growth in the number of learners accessing online courses, especially during COVID-19 lockdowns, QLS has seen an increase in the number of individuals supported in their educational achievements. In 2021/22 QLS issued 14,982 Certificates of Achievement to individuals completing a course through a QLS endorsed provider.

b. Fundraising activities and income generation

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

Page 6

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Strategic report (continued)

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.

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:

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 Group-wide 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:

Unrestricted funds at the end of the year were £4,718,391 (2021: £4,038,004) and free reserves which exclude fixed assets and are stated before the defined benefit pension liability are £1,599,344 (2021: £1,550,948). Trustees consider the unrestricted funds to meet the Charity’s reserve policy.

Page 7

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Reserve Purpose Target Amount
Contingency •Sustain business operations
•Cover deficits
•Mitigate the risks of unforeseen
challenges and/or emergencies
•Cover statutory obligations		 £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 including IT
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		 £Nil - per actuary valuation
Designated Fund - Third Party
Contracts		 •Funds for a designated purposed
defined by contractual agreements
with third parties (project-based
activities)		 £100,000

c. Material investments 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 2022, the portfolio had a value of £366,760 (2021: £397,699).

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.

Page 8

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

e. 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 £680,387 (2021 £728,062) after an actuarial gain of £669,000 (2021: £306,000 gain) and derecognition of pension asset of £70,000 on a defined benefit pension scheme. The surplus before these adjustments and the adjustment for the foreign exchange loss is £81,895 (2021: £423,335).

Total income was £5,420,785 (2021: £4,060,649). Total expenditure was £5,310,248 (2021: £3,680,728) 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 £2,660,981 (2021: £2,211,045). Salaries and associated costs remain the primary cost to the Charity.

Net assets for the year were £4,718,391 compared with £4,638,004 in 2021.

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's 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.

b. Methods of appointment or election of Trustees

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

A Foulkes (resigned 11 October 2022)

Page 9

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

P W Price-Hazlehurst (appointed 26 April 2022, resigned 18 November 2022) S Smith (appointed 26 April 2022, resigned 14 September 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. 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, 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 Director of Product Development and Delivery 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 and extended meeting once a month which focuses on financial performance, compliance and regulation and human resources.

A senior management team (SMT) meets monthly to inform the development and implementation of day-to-day

Page 10

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

business/operational plans and longer-term strategic plans. The SMT is made-up of the ELT and heads of services/functions from across the Group-wide structure.

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 Charities Commission. Scrutiny Group membership is the ELT, and appropriate heads of service/functions.

d. 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 this.

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.

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.

f. Financial risk management

The Trustees have assessed the major risks to which the Group and the Charity are exposed, in particular those related to the operations and finances of the Group and the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Page 11

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 a longer-term objectives

Alongside these, Trustees endorse a focus in 2023 on investing in the charity’s staff and related resources, the development of products and services and in the Foundation and the work that it does.

Page 12

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report including the Strategic 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 year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees on 31 March 2023 and signed on their behalf by:

A G Stott (Chair of Trustees)

Page 13

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS 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 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)

Other information

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

We have nothing to report in this regard.

Opinion 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

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

Page 15

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS 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 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.

Page 16

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Page 17

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED)

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Anderson BSc FCA (Senior Statutory Auditor)

for and on behalf of

Streets Audit LLP

Tower House Lucy Tower Street Lincoln LN1 1XW

N.B. The date of signing should be entered in 'ACCOUNTS COMPLETION' section

Date: 21 April 2023

Page 18

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note
Income from:
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
9
Total expenditure
Net income before net (losses)/gains on
investments
Net (losses)/gains on investments
Net movement in funds before other recognised
gains/(losses)
Other recognised gains/(losses):
Derecognition of pension asset
Acturial (losses)/gains on defined pension schemes
Foreign exchange losses
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
3,456,419
1,918,368
11,203
34,795
5,420,785
1,405,189
3,905,059
5,310,248
110,537
(28,642)
81,895
(70,000)
669,000
(508)
680,387
4,038,004
680,387
4,718,391		 Total
funds
2022
£
3,456,419
1,918,368
11,203
34,795
5,420,785
1,405,189
3,905,059
5,310,248
110,537
(28,642)
81,895
(70,000)
669,000
(508)
680,387
4,038,004
680,387
4,718,391		 Total
funds
2021
£
3,325,077
657,078
10,235
68,259
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

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 25 to 56 form part of these financial statements.

Page 19

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) REGISTERED NUMBER: 02640936

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2022

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Stocks
17
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
Net assets excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
27
Total net assets		 40,696
1,416,522
1,448,829
2,906,047
(942,833)		 2022
£
1,039,805
1,712,482
366,760
3,119,047
1,963,214
5,082,261
(363,870)
4,718,391
-
4,718,391		 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

Page 20

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) REGISTERED NUMBER: 02640936

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022

Note
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 2022
£
-
4,718,391
4,718,391		 2021
£
-
4,038,004
4,038,004

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 were approved and authorised for issue by the Trustees on 31 March 2023 and signed on their behalf by:

A G Stott (Chair of Trustees)

The notes on pages 25 to 56 form part of these financial statements.

Page 21

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) REGISTERED NUMBER: 02640936

CHARITY BALANCE SHEET AS AT 31 AUGUST 2022

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 liabilities / assets
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
20
Net assets excluding pension asset
Total net assets		 565,445
125,879
691,324
(1,035,271)		 2022
£
66,987
1,075,381
1,428,375
2,570,743
(343,947)
2,226,796
(363,870)
1,862,926
1,862,926		 660,268
94,547
754,815
(715,698)		 2021
£
75,427
1,081,734
1,291,330
2,448,491
39,117
2,487,608
(457,970)
2,029,638
2,029,638

Page 22

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) REGISTERED NUMBER: 02640936

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022

Note
Charity funds
Restricted funds
21
Unrestricted funds
21
Total funds		 2022
£
-
1,862,926
1,862,926		 2021
£
-
2,029,638
2,029,638

The Charity's net movement in funds for the year was £ (166,712) (2021 - £109,138) .

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 were approved and authorised for issue by the Trustees on 31 March 2023 and signed on their behalf by:

................................................

A G Stott

(Chair of Trustees)

The notes on pages 25 to 56 form part of these financial statements.

Page 23

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from operating activities
Net cash used in operating activities
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
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/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
The notes on pages 25 to 56 form part of these financial statements		 2022
£
(235,990)
11,203
(74,887)
(43,394)
62,842
(228,530)
(200,000)
(472,766)
-
(50,000)
(50,000)
(758,756)
2,207,585
1,448,829		 2021
£
136,574
10,235
(147,402)
(48,905)
31,838
(32,416)
(96,266)
(282,916)
50,000
-
50,000
(96,342)
2,303,927
2,207,585

Page 24

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. General information

The Charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. It's aim is the advancement of the education and training of young people and adults. 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.

The financial statements are prepared in pound sterling which is the functional currency of the entity.

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) (effective 1 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 Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The Charity 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 continue as a going concern.

2.3 Income

All income is recognised once the Charity 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 25

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

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 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the Consolidated Statement of Financial Activities.

2.6 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.

2.7 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.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Page 26

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.7 Intangible assets and amortisation (continued)

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:

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:

Property - 1-15% straight line
Fixtures and fittings - 10-25% straight line
Office equipment - 20-33% straight line
Computer equipment - 20-33% straight line
Other fixed assets - 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.

Page 27

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

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.

2.13 Liabilities and provisions

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

Liabilities are recognised at the amount that the Charity 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. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

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 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.

Page 28

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.16 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.

Investment income, gains and losses are allocated to the appropriate fund.

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 Charity 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
Access to HE
Project, membership and CPD
Total 2022
Total 2021		 Unrestricted
funds
2022
£
2,694,419
333,308
428,692
3,456,419
3,325,077		 Total
funds
2022
£
2,694,419
333,308
428,692
3,456,419
3,325,077		 Total
funds
2021
£
2,677,030
356,207
291,840
3,325,077

Page 29

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. Income from other trading activities

Income from non charitable trading activities

Income from trading subsidiaries
Total 2021		 Unrestricted
funds
2022
£
1,918,368
657,078		 Total
funds
2022
£
1,918,368
657,078		 Total
funds
2021
£
657,078

Room hire income of £18,326 in the prior year has been reclassified to other income for consistency of presentation.

6. Investment income

Unrestricted
funds
2022
£
Dividends receivable from listed investments
10,682
Interest Receivable
521
Total 2022
11,203
Total 2021
10,235		 Total
funds
2022
£
10,682
521
11,203
10,235		 Total
funds
2021
£
10,055
180
10,235

Page 30

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Other incoming resources

Lettings, admin fees and other income
CJRS Income
Total 2022
Total 2021		 Unrestricted
funds
2022
£
34,795
-
34,795
68,259		 Total
funds
2022
£
34,795
-
34,795
68,259		 Total
funds
2021
£
29,697
38,562
68,259

Room hire income of £18,326 in the prior year has been reclassified to other income for consistency of presentation.

8. Expenditure on raising funds

Cost of sales - BIIAB
Cost of sales - QLS
Administration expesnes - BIIAB
Administration expenses - QLS
Depreciation - BIIAB
Salary recharges - BIIAB
Salary recharges - QLS		 2022
£
326,997
2,416
308,500
21,279
406
687,567
58,024
1,405,189		 2021
£
151,054
-
512,106
-
184
-
-
663,344

Page 31

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. Analysis of expenditure on charitable activities

Summary by fund type

Learner recognition
Access to HE
Project, membership and CPD
Total 2022
Total 2021		 Unrestricted
funds
2022
£
2,575,331
396,649
933,079
3,905,059
3,017,384		 Total
2022
£
2,575,331
396,649
933,079
3,905,059
3,017,384		 Total
2021
£
1,618,151
247,474
1,151,759
3,017,384

10. Analysis of expenditure by activities

Learner recognition
Access to HE
Project, membership and CPD
Total 2022
Total 2021		 Activities
undertaken
directly
2022
£
917,507
210,068
271,347
1,398,922
1,097,752		 Support
costs
2022
£
1,657,824
186,581
661,732
2,506,137
1,919,632		 Total
funds
2022
£
2,575,331
396,649
933,079
3,905,059
3,017,384		 Total
funds
2021
£
1,618,151
247,474
1,151,759
3,017,384

Page 32

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Moderator and examiner costs
Centre costs
CPD and project expenses
Certificates
QAA registration
Finance charges
Foundation activities
Total 2022
Total 2021		 Learner
recognition
2022
£
588,207
207,290
14,247
-
9,508
-
-
98,255
917,507
337,430		 Access to
HE
2022
£
130,797
51,690
-
-
-
27,581
-
-
210,068
76,650		 Project,
membershi
p and CPD
2022
£
60,465
-
-
210,882
-
-
-
-
271,347
650,887		 Total
funds
2022
£
779,469
258,980
14,247
210,882
9,508
27,581
-
98,255
1,398,922
1,097,752		 Total
funds
2021
£
654,623
169,492
21,614
146,906
42,995
21,578
7,759
32,785
1,097,752

Page 33

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Bad debt
Other staff costs
Qualification development
Administration
Communications and marketing
Donations
Premises
ICT costs
Professional fees
Bank charges
Irrecoverable VAT
Governance costs
Total 2022
Total 2021
11.
Auditors' remuneration		 Learner
recognition
2022
£
875,505
164,702
25,184
113,711
34,619
74,618
4,356
495
61,418
201,598
43,053
3,602
40,553
14,410
1,657,824
1,280,721		 Access to
HE
2022
£
117,278
25,076
-
666
-
4,756
-
-
16,641
5,669
7,337
403
3,285
5,470
186,581
170,824		 Project,
membershi
p and CPD
2022
£
90,697
24,333
-
110,638
-
29,002
118,352
43,640
31,090
57,098
44,079
8,245
93,257
11,301
661,732
500,872		 Total
funds
2022
£
1,083,480
214,111
25,184
225,015
34,619
108,376
122,708
44,135
109,149
264,365
94,469
12,250
137,095
31,181
2,506,137
1,919,632		 Total
funds
2021
£
1,079,922
81,731
159
100,748
33,071
75,883
31,753
32,035
95,863
183,438
82,020
9,814
54,232
58,963
1,919,632
2022 2021
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 24,000 30,830
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - 420

Page 34

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. Staff costs

Wages and salaries costs
Social security costs
Pension costs		 Group -
2022
£
2,218,349
229,599
213,033
2,660,981		 Group -
2021
£
1,820,217
166,475
224,353
2,211,045

During the year a total of £2,506 (2021: £2,506) was paid in respect of contractual termination payments. This amount is an ongoing annual cost to the parent charitable company in perpetuity until the death of individual's 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 £23,600 (2021: £9,600) in the year.

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

Charitable activities
Administration
Management		 Group -
2022
£
40
12
13
65		 Group -
2021
£
24
12
13
49

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

2022 2021
£ £
In the band £60,001 - £70,000 2 2
In the band £70,001 - £80,000 1 1
In the band £120,001 - £130,000 - 1
In the band £140,001 - £150,000 1 -

The total remuneration and benefits received by key management personnel was £449,104 (2021: £419,484). The trustees consider the key management personnel to be the Chief Executive Officer, Chief Operating Officer, Director of Member Services and Communications and the Director of Awarding Services.

Page 35

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 Charity for their role as CEO. The value of Trustees' remuneration and other benefits was as follows:

2022 2021
£ £
P A Eeles Remuneration 143,367 121,884
Pension contributions paid 25,908 26,401

During the year, retirement benefits were accruing to 1 Trustees (2021 - 1) in respect of defined benefit pension schemes.

During the year ended 31 August 2022, travel and accomodation expenses totalling £ 2,598 were reimbursed or paid directly to 7 Trusteess of the charitable group (2021 - £280 to 2 Trustees) .

Included in the above were travel expenses reimbursed to 5 trustees of the parent charitable company totalling £2,151 (2021: £280 to 2 Trustees).

Page 36

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. Intangible assets

Group
Cost
At 1 September 2021
Additions
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Develop-
ment
£
60,576
40,888
101,464
-
4,779
4,779
96,685
60,576		 Bespoke
software
£
21,541
5,054
26,595
414
3,870
4,284
22,311
21,127		 Website
£
285,717
28,945
314,662
133,773
69,164
202,937
111,725
151,944		 Goodwill
£
754,236
167,984
922,220
37,712
75,424
113,136
809,084
716,524		 Total
£
1,122,070
242,871
1,364,941
171,899
153,237
325,136
1,039,805
950,171

Page 37

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. Intangible assets (continued)

Charity

Cost
At 1 September 2021
Additions
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Bespoke
software
£
-
3,570
3,570
-
-
-
3,570
-		 Website
£
127,562
14,200
141,762
52,135
26,210
78,345
63,417
75,427		 Total
£
127,562
17,770
145,332
52,135
26,210
78,345
66,987
75,427

Page 38

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Tangible fixed assets

Group

Cost or valuation
At 1 September 2021
Additions
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Property
£
2,596,200
-
2,596,200
972,538
35,553
1,008,091
1,588,109
1,623,662		 Fixtures and
fittings
£
247,012
8,862
255,874
210,200
3,720
213,920
41,954
36,812		 Office
equipment
£
1,623
-
1,623
184
572
756
867
1,439		 Computer
equipment
£
241,295
34,531
275,826
164,022
30,252
194,274
81,552
77,273		 Prefab'd
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
3,101,612
43,393
3,145,005
1,362,426
70,097
1,432,523
1,712,482
1,739,186

Page 39

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 September 2021
Additions
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold
property
£
1,270,284
-
1,270,284
286,875
19,080
305,955
964,329
983,409		 Fixtures and
fittings
£
216,636
8,862
225,498
180,249
3,664
183,913
41,585
36,387		 Computer
equipment
£
167,037
34,531
201,568
105,099
27,002
132,101
69,467
61,938		 Prefab'd
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
1,669,439
43,393
1,712,832
587,705
49,746
637,451
1,075,381
1,081,734

Page 40

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. Tangible fixed assets (continued)

Group

Property fixed assets consist of freehold property with a net book value of £964,329 (2021: £983,409) and long-term leasehold property with a net book value of £623,780 (2021: £640,253).

16. Fixed asset investments

Group
Cost or valuation
At 1 September 2021
Additions
Disposals
Revaluations
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Listed
investments
£
397,699
60,546
(62,842)
(28,643)
366,760
366,760
397,699

Page 41

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Fixed asset investments (continued)

Charity
Cost or valuation
At 1 September 2021
Additions
Disposals
Revaluations
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Investments
in
subsidiary
companies
£
893,631
167,984
-
-
1,061,615
1,061,615
893,631		 Listed
investments
£
397,699
60,546
(62,842)
(28,643)
366,760
366,760
397,699		 Total
£
1,291,330
228,530
(62,842)
(28,643)
1,428,375
1,428,375
1,291,330

Fixed asset investment additions relate to additional costs arising from the acquisition of BIIAB Qualifications Limited.

Page 42

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Fixed asset investments (continued)

Principal subsidiaries

The following were subsidiary undertakings of the Charity:

Names Company Charity Registered office or principal Principal activity Holding
number registration place of business
number
Skills and Education Group Awards 04117784 1086947 Robins Wood House, Robins Advancement of skills 100%
Wood Road, Aspley, Nottingham, and education
NG8 3NH
Skills and Education Access 03773914 1088839 Robins Wood House, Robins Advancement of 100%
Wood Road, Aspley, Nottingham, education learning
NG8 3NH and training
BIIAB Qualifications Limited 10054831 N/A Robins Wood House, Robins Advancement of 100%
Wood Road, Aspley, Nottingham, education learning
NG8 3NH and training in the
hospitality sector
Quality Licence Scheme Limited 10051052 N/A Robins Wood House, Robins Advancement of 100%
Wood Road, Aspley, Nottingham, primary and
NG8 3NH secondary education

Page 43

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

16. Fixed asset investments (continued)

The financial results of the subsidiaries for the year were:

Names Income Expenditure Profit/(Loss) Net assets
£ £ / Surplus/ £
(Deficit) for
the year
£
Skills and Education Group Awards 1,900,760 1,874,755 26,005 1,696,579
Skills and Education Access 971,428 430,541 540,887 920,605
BIIAB Qualifications Limited 1,697,151 1,473,912 223,239 358,420
Quality Licence Scheme Limited 221,217 88,825 132,392 132,392

Page 44

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. Stocks

Group Group
2022 2021
£ £
Finished goods and goods for resale 40,696 39,962

18. Debtors

Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Called up share capital not paid
Prepayments and accrued income		 Group
2022
£
1,070,699
-
2,154
2
343,667
1,416,522		 Group
2021
£
495,752
-
2,527
2
237,047
735,328		 Charity
2022
£
70,207
368,202
-
-
127,036
565,445		 Charity
2021
£
44,584
562,812
-
-
52,872
660,268

Page 45

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

19. Creditors: Amounts falling due within one year

Other loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2021
Resources deferred during the year
Amounts released from previous periods		 Group
2022
£
-
212,127
-
139,699
269,303
321,704
942,833
Group
2022
£
255,974
75,388
(255,974)
75,388		 Group
2021
£
50,000
129,800
-
98,469
201,069
494,619
973,957
Group
2021
£
243,593
255,974
(243,593)
255,974		 Charity
2022
£
-
54,316
429,188
62,937
262,803
226,027
1,035,271
Charity
2022
£
219,484
46,580
(219,484)
46,580		 Charity
2021
£
50,000
47,635
-
53,683
195,369
369,011
715,698
Charity
2021
£
218,218
219,484
(218,218)
219,484

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
2022 2021 2022 2021
£ £ £ £
Other creditors 363,870 457,970 363,870 457,970

Page 46

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. 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 Limited -
post aqcuisition reserves
Skills and Education Grouup
Access - designated pension
reserve
Quality Licence Scheme
Limited		 Balance at 1
September
2021
£
1,991,927
1,634,913
979,718
31,446
(600,000)
-
4,038,004		 Income
£
1,229,229
1,900,760
372,428
1,697,151
(70,000)
221,217
5,350,785		 Expenditure
£
(1,442,215)
(1,874,755)
(431,541)
(1,473,912)
1,000
(88,825)
(5,310,248)		 Gains/
(Losses)
£
(29,150)
-
-
-
669,000
-
639,850		 Balance at
31 August
2022
£
1,749,791
1,660,918
920,605
254,685
-
132,392
4,718,391

Page 47

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Statement of funds (continued)

Statement of funds - prior year

Balance at Balance at
1 September Gains/ 31 August
2020 Income Expenditure (Losses) 2021
£ £ £ £ £
Unrestricted funds
General funds - charitable
company 1,920,500 1,129,908 (1,100,622) 42,141 1,991,927
Skills and Education Group
Awards - post acquisition
reserves 1,336,294 1,881,515 (1,582,896) - 1,634,913
Skills and Education Group
Access 960,148 392,148 (372,578) - 979,718
BIIAB Qualifications Limited -
post aqcuisition reserves - 657,078 (625,632) - 31,446
Skills and Education Grouup
Access - designated pension
reserve (907,000) - 1,000 306,000 (600,000)
3,309,942 4,060,649 (3,680,728) 348,141 4,038,004
Summary of funds
Summary of funds - current year
Balance at 1 Balance at
September Gains/ 31 August
2021 Income Expenditure (Losses) 2022
£ £ £ £ £
General funds 4,038,004 5,350,785 (5,310,248) 639,850 4,718,391
Summary of funds - prior year
Balance at Balance at
1 September Gains/ 31 August
2020 Income Expenditure (Losses) 2021
£ £ £ £ £
General funds 3,309,942 4,060,649 (3,680,728) 348,141 4,038,004

22. Summary of funds

Page 48

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,712,482
Intangible fixed assets
1,039,805
Fixed asset investments
366,760
Current assets
2,906,047
Creditors due within one year
(942,833)
Creditors due in more than one year
(363,870)
Total
4,718,391		 Total
funds
2022
£
1,712,482
1,039,805
366,760
2,906,047
(942,833)
(363,870)
4,718,391

Analysis of net assets between funds - prior year

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

Page 49

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

24. 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
Gains/(losses) on investments
Dividends, interests and rents from investments
Increase in stocks
Increase in debtors
Increase in creditors
Defined benefit pension scheme FRS102 costs
Gains/(losses) on foreign exchange
Net cash provided by/(used in) operating activities		 Group
2022
£
81,895
70,097
153,237
28,643
(11,203)
(734)
(681,194)
124,777
(1,000)
(508)
(235,990)		 Group
2021
£
423,335
62,292
74,872
(43,414)
(10,235)
(15,782)
(439,170)
86,949
(1,000)
(1,273)
136,574
25.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2022
£
1,448,829
1,448,829		 Group
2021
£
2,207,585
2,207,585

Page 50

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

26. Analysis of changes in net debt

Cash at bank and in hand
Debt due within 1 year		 At 1
September
2021
£
2,207,585
(50,000)
2,157,585		 Cash flows
At 31
August 2022
£
£
(758,756)
1,448,829
50,000
-
(708,756)
1,448,829		 Cash flows
At 31
August 2022
£
£
(758,756)
1,448,829
50,000
-
(708,756)
1,448,829
1,448,829

27. Pension commitments

The Group operates a defined benefit pension scheme.

The Charity contributes to defined benefit pesion schemes on behalf of those employees who remain auto-enrolled who are not members of either the West Yorkshire Pension Fund or the Teacher's 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 full-time teachers in academies. 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.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to 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:

Page 51

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

27. Pension commitments (continued)

SCAPE rate is 2.4% above the rate of CPI, assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.

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 (https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx).

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

West Yorkshire Pension Fund

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

The date of the most recent comprehensive acturial valuation was 31 March 2019. The last full acturial valuation of this scheme by a qualified, independent actuary as at 31 March 2019 was updated on an approximate basis to 31 August 2022.

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 2022 (uear to 31 August 2022 - 45%).

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

Key assumptions
Discount rate
Future salary increases
Future pension increases
CPI inflation
Pension accounts revaluation amounts
Mortality rate (in years)
Males retiring today
Males retiring in 20 years
Females retiring today
Females retiring in 20 years		 2022
%
4
4
3
3
3
2022
Years
22
23
25
26		 2021
%
2
4
3
3
3
2021
Years
22
23
25
26

Page 52

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2022 2021
£ £
Sensitivity analysis
Discount rate + 0.1% (25,000) (35,000)
Discount rate - 0.1% 25,000 35,000
Mortality assumption - 1 year increase (51,000) (99,000)
Mortality assumption - 1 year decrease 51,000 96,000

The pension scheme surplus/deficit is based on the actuarial assumptions used as at the 31 August 2022. These can and do change after the year end. The above senistivity analysis shows how the position stated can change significantly based on changes to the actuarial assumptions. A change in the markets is likely to result in an increased pension scheme deficit by the next ytear end. Post year end valuations could be obtained to provide an indication, however it is considered that the cost would outweigh the benefit to the users of the accounts, and would not be value for money.

Asset allocation
Equities
Property
Government bonds
Corporate bonds
Cash and other liquid assets
Other		 2022
£
1,472,000
72,000
118,000
79,000
74,000
28,000
1,843,000		 2021
£
1,549,000
73,000
154,000
85,000
42,000
27,000
1,930,000

The actual return on scheme assets was £32,000 (2021 - £350,000).

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

Total amount recognised in the Statement of financial acitivites
Current service cost
Interest cost
Derecognise pension surplus		 2022
£
10,000
10,000
70,000
90,000		 2021
£
10,000
14,000
-
24,000

Page 53

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

At 31 August 2022, the present value of the defined benefit obligation at the reporting date was valued at less than the fair value of plan assets and therefore the plan has a surplus. In accordance with FRS 102, an entity shall recognise a plan surplus as a defined benefit plan asset only to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan. On the basis that the separate triennial valuation is used to calculate future contribution rates on a different valuation basis, there is no realistic expectation that the surplus will be realised or will provide future economic benefit to the trust. As a result the pension asset has not been recognised in the balance sheet of the financial statements. The asset and liability movements as included in the FRS 102 valuation report has been disclosed below for transparency.

Changes to the defined benefit obligation
Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Acturial losses
Benefits paid
Current service cost
Changes to the fair value of assets
Opening fair value of scheme assets
Interest income
Acturial gains/(losses)
Contributions by employer
Contributions by scheme particpants
Benefits paid		 2022
£
2,530,000
42,000
1,000
-
(141,000)
10,000
2,442,000
2022
£
1,930,000
32,000
669,000
21,000
1,000
(141,000)
2,512,000		 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

Page 54

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

28. Operating lease commitments

The Group and the Charity had no commitments under non-cancellable operating leases at 31 August 2022.

29. Related party transactions

Skills and Education Group Awards

During the year the charity recharged wages and other costs to its subsidiary, totalling £1,365,352 (2021: £1,150,712) and received payments from this entity totalling £1,854,778 (2021: £1,106,868). At the year end an amount of £429,188 (2021: 60,238 owed by) was owed to Skills and Education Group Awards.

Skills and Education Group Access

During the year the charity recharged wages and other costs to its subsidiary, totalling £205,122 (2021: £160,644) and received payments from this entity totalling £201,006 (2021: £160,577). At the year end an amount of £4,185 (2021: 69) was owed from Skills and Education Group Access.

BIIAB Qualifications Limited

During the year the charity recharged wages and other costs to its subsidiary, totalling £838,009 (2021: £208,477) and received payments from this entity totalling £1,028,488 (2021: £Nil). At the year end an amount of £323,130 (2021: £513,609) was owed by BIIAB Qualifications Limited.

Quality Licence Scheme Limited

During the year the charity recharged wages and other costs to its subsidiary, totalling £65,130 (2021: £Nil) and received payments from this entity totalling £24,243 (2021: £Nil). At the year end an amount of £40,887 (2021: £Nil) was owed by Quality Licence Scheme Limited.

Leicester College

V Hancock, a trustee, is also CEO and Principal of Leicester College. During the year income of £12,100 (2021: £12,920) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £9,100 (2021: £2,648).

York College

L Probert, a trustee, is also CEO and Principal of York College . During the year income of £6,000 (2021: £3,000) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £3,000 (2021: £Nil).

Nottingham College

J Meenaghan, a trustee, was appointed CEO and Principal of Nottingham College in the year. During the year income of £12,055 was received from the College for the provision of charitable services. There are no amounts outstanding at the year end.

Buxton and Leek College

J Tildsley, a trustee, is also a Principal of Buxton and Leek College. During the year income of £960 (2021: £3,030) was received from the College for the provision of charitable services. There are no amounts outstanding at the year end (2021: £Nil).

Page 55

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

29. Related party transactions (continued)

Sheffield College

A Foulkes, a trustee until their resignation on 11 October 2021, is Principal of Sheffield College. During the period up to their resignation income of £6,000 (2021: £54,320) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £3,000 (2021: £Nil).

Northern College for Residential Adult Education

Y Y Mellor is also a trustee of North College for Residential Adult Education. During the year income of £1,920 (2021: 1,920) was received from the charity for the provision of charitable services. There are no amounts outstanding at the year end (2021: £ Nil).

TEC Partnership - Grimsby Institute

A Hardy, a trustee, is also CEO of the TEC Partnership. During the year income of £5,170 was received from TEC for the provision of charitable services. There are no amounts outstanding at the year end.

Burton and South Derbyshire College

J Beaty, a trustee, is also a Principal of Burton and South Derbyshire College. During the year income of £1,340 (2021: £Nil) was received from the College for the provision of charitable services. There are no amounts outstanding at the year end (2021: £Nil).

Helena Kennedy Foundation

P Eeles, trustee and CEO, is also a trustee of the Helena Kennedy Foundation. During the year expenditure of £6,000 (2021: £Nil) was paid to the Foundation for sponsorship of bursaries. There are no amounts outstanding at the year end (2021: £ Nil).

FSB Partnership Ltd

A Stott, chair of trustees, received an amount £30,000 from the charity during the year, invoiced through his company, FSB Partnership Ltd. This relates to services provided to the charity from April 2020 – March 2022 by A Stott, over and above the role that a trustee would undertake. The payment was made in accordance with s185 of the Charities Act 2011 and approved by the Charity Commission on 28 January 2022.

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