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2023-08-31-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 2023

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 - 15
Independent Auditors' Report on the Financial Statements 16 - 20
Consolidated Statement of Financial Activities 21
Consolidated Balance Sheet 22 - 23
Charity Balance Sheet 24 - 25
Consolidated Statement of Cash Flows 26
Notes to the Financial Statements 27 - 58

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2023

Trustees S C Alton
J P Beaty
G Clipson MBE
P A Eeles
V A Hancock
J Meenaghan
Y Y Mellor
A G Stott, Chair
L J Tildsley
T Hamilton-Dick (resigned 15 September 2023)
L D Probert (resigned 20 October 2023)
Company registered
number 02640936
Charity registered
number 1004087
Registered office Robins Wood House
Robins Wood Road
Aspley
Nottingham
NG8 3NH
Company Secretary T De'Ath (appointed 7 December 2023)
S Feneley-Lamb (resigned 7 December 2023)
Key management Chief Executive: P A Eeles
Deputy Chief Executive: S A Forbes
Independent auditors Streets Audit LLP
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
Bankers Natwest
536 Valley Road
Nottingham
NG5 1FL
Solicitors Bates Wells
10 Queen Street
London
EC4R 1BE

Page 1

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2023

The Trustees present their annual report together with the audited financial statements of the Charity for the year from year 1 September 2022 to 31 August 2023. 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 an 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)'.

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SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report

Achievements and performance

a. Main achievements of the Charity

Achievements and performance delivering public benefit

The Charity is dedicated to making a positive impact on people's lives through education and skills-based training. It is guided by values of ethics, professionalism, teamwork, and a commitment to achieving educational, economic, and social advancement for all. The Charity, through its work, provides financial support to learners, access to professional development programmes, and other initiatives to support teaching, learning, assessment, and governance across the further education sector.

Professional Development

The Charity continues to provide high quality professional development programmes, networks, and conferences all of which aim to support the sectors 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, adults, and the communities our members and non-members serve.

Professional development events were attended by 3,350 participants. The demand for in-house/bespoke training continues. Organisations are opting for more in-house delivery, this led to over 716 participants engaging in these types of programmes throughout 2022/23. Furthermore, our professional development services expanded internationally, and is helping to make a real impact in enhancing the quality of teaching and learning in countries like India and Sri Lanka.

The Charity’s Conference also returned in May 2023. The fully booked event attracted over 300 delegates, including staff from across the further education and skills sector, 17 sponsors and exhibitors, and a delegation of international visitors from South Africa. Focusing on the theme of Levelling Up, the conference included keynote speeches, panel sessions, workshops, and an exhibition, with a range of speakers sharing their perspectives on how we can ensure equal opportunities across the country and how the further education and skills sector can contribute to this.

Work to support minority communities also continues in collaboration with the Foreign, Commonwealth and Development Office, Gangmasters and Labour Abuse Authority and the Home Office. This work focuses on increasing awareness within the Romanian community in the UK of their workers’ rights under UK law to prevent labour exploitation. The programme successfully trained 271 members of the community over a four-week period and has been extended through to April 2025 with a target of reaching 4,000 members of the Romanian community.

Skills and Education Group Foundation

The Charity’s Foundation champions social mobility by supporting learners and education providers through grants, advocacy, and recognition. It provides financial support to learners, staff, and providers, with the goal of expanding access to education, accelerating social mobility and building a fairer society. Through the Foundation’s Learner Grants, Action Research Grants and Resource and Facilities Grants, the Charity gave a total of £89,059 in 2022/23.

The Foundation also appointed its first Ambassador, the Rt Hon. the Baroness Morgan of Cotes. Baroness Morgan is the former MP for Loughborough and served in government for eight years, where she held various senior Ministerial and Cabinet roles including Secretary of State for Education. In her role as Ambassador of the Foundation, Baroness Morgan will help champion the work of the Foundation and further strengthen the sectors contribution to social mobility.

Page 3

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

Achievements and performance (continued)

Learner Grants

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 but face financial and/or social adversity. Through 2022/23, we supported and received:

Grants help provide learners with digital equipment like laptops and tablet devices, transportation costs, educational resources and more. This enables learners to advance in their studies and prevents them from being excluded and at a disadvantage in comparison to their peers.

Action Research Grants

Action Research Grants up to £6,000 to support action research projects that improve practice, widen learner participation, and increase social inclusion across a breadth of student demographics. During 2022/23, the Foundation issued:

Projects included activities aimed at helping retention of English and maths students of lower socio-economic backgrounds, improving inclusion for learners with special educational needs and disabilities and more.

Resource and Facilities Grants

The Resource and Facilities Grants provide up to £2,000 to deliver material improvements at learning providers. These grants can be used to fund time-limited projects with clear physical outcomes, or to renew or improve resources or facilities. They support applicants in mitigating a problem that is negatively affecting the experience of their learners or the ability of their colleagues to deliver high-quality teaching. During 2022/23, the Foundation provided:

One of the grants issued in 2022/23 helped create a sensory garden at York College for learners from hard-toreach backgrounds. The purpose of the sensory garden was to create a space and atmosphere that was fun, vibrant, stimulating, relaxing, and educating that provided a calming environment for these learners to complete their studies, engage with nature and leave the stressors of everyday life behind.

Page 4

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

Achievements and performance (continued)

Awarding Services

The Charity’s awarding services are delivered through Skills and Education Awards and BIIAB Qualifications Limited (BIIAB). Skills and Education Group Awards is a leading national awarding organisation with a longestablished reputation for providing high quality support and services to the education sector regulated by CCEA, Ofqual and Qualifications Wales.

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 licence to practice qualifications and the hospitality sector. BIIAB is regulated by CCEA, Ofqual, Qualifications Wales and SQA.

During 2022/23 our awarding services collectively certificated 83,840 qualifications from 100,440 registrations. The collective market share increased, and the Charity’s awarding services became the eleventh largest awarding organisation for regulated delivery in England. The Charity’s awarding services continue to deliver licence to practice qualifications across APLH, CPC, MOT, SCPLH, and Security. BIIAB became the largest market share holder for Door Supervisor qualifications and retained its share of the market for APLH qualifications. Equally, Skills and Education Group Awards continued to be the market leader for MOT qualifications.

Skills and Education Group Awards

Skills and Education Group Awards portfolio continues to offer 259 qualifications across 18 sectors. New sectors for 2022/23 include computing and software, construction and ESOL. It continues to develop and expand upon its current portfolio with new qualifications added in animal care, youth work and more. New qualifications are developed in partnership with employer to ensure they meet industry needs and align to new government reforms.

Skills and Education Group Awards also continue to be market leaders in offering MOT qualifications and training. During 2022/23, 32,989 MOT Testers sat their annual assessment with Skills and Education Group Awards, in addition to this, it helped 3,040 new and existing MOT Testers to progress and start their careers in this industry.

2022/23 was also a year of celebration for Skills and Education Group Awards, as it gained recognition for developing its Level 1 Award in Workers’ Rights and Labour Exploitation. The qualification won Collaboration of the Year Award for its work in developing the qualification with the Gangmasters and Labour Abuse Authority, Boston College, and the University of Nottingham’s Rights Lab. The qualification continues to have significant impact and is helping to prevent 1,000’s of individuals from being victims of labour exploitation on an annual basis.

In numbers, Skills and Education Group Awards delivered the following:

Aside from qualification delivery, Skills and Education Group Awards continue to grow its end-point assessment

Page 5

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

Achievements and performance (continued)

portfolio and it now offers 20 standards. It continues to specialise in a range of sectors, and has developed new resources for learners, employers, and training providers. Skills and Education Group Awards is passionate about apprenticeships and aims to do the very best to ensure apprentices have the very best start to their careers. During 2022/23, it delivered the following:

Wrapping up a busy 2022/23, Skills and Education Group Awards went global. It gained recognition through the Knowledge and Human Development Agency (KHDA) to deliver qualifications and assessments in Dubai and the wider UAE; and gained recognition with the Tertiary and Vocational Education Commission in Sri Lanka.

Skills and Education Group Awards, in association with UK Awards, forged new partnerships with education providers in Dubai, India, Sri Lanka, and Turkey accrediting high quality assessments and Ofqual regulated qualifications allowing Skills and Education Group Awards to reach thousands more learners, and strengthen the bonds between the UK and overseas providers in the pursuit of advancing social mobility.

BIIAB

BIIAB continues to diversify its portfolio in line with government reforms. Its existing portfolio consists of 164 qualifications. The portfolio of qualifications continues to thrive, which led to significant growth across several sectors despite no new qualifications being developed. 2022/23 was a year of restoration, with huge aspects of BIIAB’s portfolio being refreshed and redeveloped.

BIIAB saw significant growth in its security provision. It successfully grew its market share in this area by 12.64% on 2021/22 to become the third largest awarding organisation in this sector. Furthermore, BIIAB became the leading awarding organisation for Door Supervisor qualifications, growing its market share by 10.61%. It went from certificating 10,600 learners in 2021/22 to 29,775 certifications in 2022/23. BIIAB also continued to increase its market share in the delivery of APLH qualifications and remains the number one awarding organisation. All these successes led to BIIAB becoming the fifteenth largest awarding organisation in England.

In numbers, BIIAB delivered the following:

Like Skills and Education Group Awards, BIIAB continues to deliver high quality end-point assessment services. It has maintained its current portfolio of 19 standards and added one new standard, giving it a total offer of 20 standards. Through BIIAB’s end-point assessment services, it continues to develop and support high end

Page 6

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

Achievements and performance (continued)

hospitality professionals stepping into their first careers across several major reputable brands. During 2022/23 BIIAB supported and delivered the following:

BIIAB is also venturing overseas and supporting the delivery of high quality provision through a unique collaboration with Unifree Dutyfree in Turkey. Through this collaboration BIIAB is endorsing four programmes for individuals working in one of the largest airport duty free outlets across the globe. Individuals accessing this provision gain a BIIAB accredited certificate to certify their ability to work in alcohol, liquor, tobacco, and retail industries.

Skills and Education Group Access

Skills and Education Group Access continues to have a strong social purpose to recognise achievement, particularly for those who have benefitted least from their educational experiences, through its work it supports the needs of individuals, providers, businesses, and communities by enabling progression into higher education through Access to HE Diplomas.

2022/23 has seen several positive developments for Skills and Education Group Access, including growth in the number of customers, and an increase in the number Diploma qualifications it validates. Much of this work has seen the development of a range of new online Access to HE Diplomas, which is now enabling Skills and Education Group Access to offer an alternative mode of delivery that complements the traditional classroombased model and allows greater participation for adults who will benefit from wholly, flexible, remote courses.

Alongside development and growth, Skills and Education Group Access’ priority has been to deliver an excellent service to its customers. It listened to feedback and implemented a new awarding management system and further invested in Access to HE by building a new, highly skilled and developed team. To add to the successes of 2022/23, Skills and Education Group Access reported a significantly higher number of learners achieving their Diploma qualifications than the national average.

Success for Skills and Education Group Access in 2022/23 looked like:

Page 7

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Strategic report (continued)

Achievements and performance (continued)

2023/24 is set to be an exciting year for Skills and Education Group Access as it looks to continue to grow its market share.

b. Fundraising activities and income generation

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 support the sustained growth of the Group and its subsidiaries. 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:

There are no new acquisitions in 2022/23 however the Charity is investing in new products, services, and the development of new markets on an international level to unlock expansion and growth opportunities.

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:

Page 8

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Unrestricted funds at the end of the year were £4,794,852 (2022: £4,718,391).

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 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 pensionscheme 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 Charity 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 2023, the portfolio had a value of £353,818 (2022: £366,760).

Page 9

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

d. Principal risks and uncertainties

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

Key risks to the Charity are:

Trustees are satisfied that the systems and review processes are in place to mitigate and manage the risks. Strategic risks are managed and monitored through risk registers; one for each of the subsidiaries within the Group. Risk registers are reviewed and updated by the Senior Leadership Team monthly and further reviewed by Trustees quarterly.

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

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 £191,585 (2022: £110,537), before taking into account losses on investments and other recognised gains and losses.

Total income was £6,086,650 and total expenditure was £5,895,065 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 £3,203,729. Salaries and associated costs remain the primary cost to the Charity.

Net assets for the year were £4,794,852 compared with £4,718,391 in 2022.

Page 10

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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 was three changes to the Board during the year:

Trustees are recruited in accordance with the Articles of Association (revised, adopted 12 October 2021) section 18 – 21 which covers 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 ongoing and future skills and knowledge needs.

c. Organisational structure and decision-making policies

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

Page 11

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management (continued)

The Chairs and Chief Executive meets four times a year, which 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 Group Awards and BIIAB Qualifications Limited are members of this Group.

The Group meets ahead of 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 Chief Executive, Paul Eeles, who is supported by Scott Forbes, as Deputy Chief Executive.

The Executive is supported by a Senior Leadership Team (SLT), who support the Chief Executive and Deputy Chief Executive with operational and strategic matters. The Senior Leadership Team comprises off:

The Senior Leadership Team meets on a weekly basis, with an extended monthly meeting which focuses on overall Group strategy, finance, and HR matters.

A Senior Management Team (SMT) in addition to SLT meets monthly focusing on operational and departmental matters across the Group. The SMT is chaired by the Deputy Chief Executive and comprises of all SLT members, and Heads of services and functions from across the Skills and Education Group.

In addition to SMT, a monthly Scrutiny Group is held. This meeting is attended by the Executive and SLT. The meeting is chaired by the Deputy Chief Executive and is used to formerly review regulatory needs across all awarding functions within the Group.

The Deputy Chief Executive acts as the Data Protection Officer across the Group and is supported by members of the Senior Leadership Team.

Page 12

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Structure, governance and management (continued)

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 where there is an opportunity to meet with key staff to gain a detailed understanding of the Charity and the subsidiaries within this.

Trustees also 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. Trustees are also asked to state any interests at the start of each Board meeting.

e. Pay policy for key management personnel

Remuneration for the Chief Executive is determined by the Chairs of the Skills and Education Group and subsidiaries. The Chief Executive determines the remuneration for all staff, including the Deputy Chief Executive and Senior Leadership Team.

All annual cost of living pay awards for 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 13

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

Plans for future periods

Trustees continue to support “Ambition 2025”, challenging assumptions and using their skills and knowledge to define objectives and associated targets. Ambition 2025 is a strategic plan that articulates ten key priorities that will take the Charity forward. This redefined 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, 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:

2022/23 has seen further progress towards achieving Ambition 2025. 2023/24 will build on these successes, and with the support of Trustees the Executive and Senior Leadership Team will work towards creating a new three-year strategy to 2027.

Page 14

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023

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 2 May 2024 and signed on their behalf by:

................................................ A G Stott (Chair of Trustees)

Page 15

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

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 2023 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 16

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

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:

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(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 18

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:

Page 19

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

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

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. 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

Date: 28 May 2024

Page 20

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 2023

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 on investments
Net losses 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
2023
£
3,151,534
2,876,349
18,282
40,485
6,086,650
2,641,879
3,253,186
5,895,065
191,585
(15,124)
176,461
70,000
(170,000)
-
76,461
4,718,391
76,461
4,794,852		 Total
funds
2023
£
3,151,534
2,876,349
18,282
40,485
6,086,650
2,641,879
3,253,186
5,895,065
191,585
(15,124)
176,461
70,000
(170,000)
-
76,461
4,718,391
76,461
4,794,852		 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

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

The notes on pages 27 to 58 form part of these financial statements.

Page 21

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

CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023

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 liability /
asset
Defined benefit pension scheme liability /
asset
27
Total net assets		 113,900
1,222,129
1,273,878
2,609,907
(1,267,194)		 2023
£
1,577,582
1,889,280
351,947
3,818,809
1,342,713
5,161,522
(269,670)
4,891,852
(97,000)
4,794,852		 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

Page 22

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

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023

Charity funds
Note
Restricted funds
21
Unrestricted funds
21
Total funds		 2023
£
-
4,794,852
4,794,852		 2022
£
-
4,718,391
4,718,391

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 authorized for issue by the Trustees on 2 May 2024 and signed on their behalf by:

................................................ A G Stott (Chair of Trustees) - A G Stott

The notes on pages 27 to 58 form part of these financial statements.

Page 23

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

CHARITY BALANCE SHEET AS AT 31 AUGUST 2023

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
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
20
Net assets excluding pension asset
Total net assets		 935,067
44,254
979,321
(1,320,900)		 2023
£
96,613
1,264,542
1,724,312
3,085,467
(341,579)
2,743,888
(269,670)
2,474,218
2,474,218		 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

Page 24

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

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2023

Charity funds
Note
Restricted funds
21
Unrestricted funds
21
Total funds		 2023
£
-
2,474,218
2,474,218		 2022
£
-
1,862,926
1,862,926

The Charity's net movement in funds for the year was £ 611,292 (2022 - £(166,712)) .

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 authorized for issue by the Trustees on 2 May 2024 and signed on their behalf by:

................................................ A G Stott (Chair of Trustees) - A G Stott

The notes on pages 27 to 58 form part of these financial statements.

Page 25

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2023

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
Repayments of borrowing
Net cash provided by/(used in) 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 27 to 58 form part of these financial statements		 2023
£
458,535
18,282
(379,665)
(269,921)
76,518
(78,700)
-
(633,486)
-
-
(174,951)
1,448,829
1,273,878		 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

Page 26

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 27

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 28

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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:

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

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 29

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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

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 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 30

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 2023
Total 2022		 Unrestricted
funds
2023
£
2,679,318
252,280
219,936
3,151,534
3,456,419		 Total
funds
2023
£
2,679,318
252,280
219,936
3,151,534
3,456,419		 Total
funds
2022
£
2,694,419
333,308
428,692
3,456,419

Page 31

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

5. Income from other trading activities

Income from non charitable trading activities

Income from trading subsidiaries
Total 2022		 Unrestricted
funds
2023
£
2,876,349
1,918,368		 Total
funds
2023
£
2,876,349
1,918,368		 Total
funds
2022
£
1,918,368

6. Investment income

Dividends receivable from listed investments
Interest Receivable
Total 2023
Total 2022		 Unrestricted
funds
2023
£
13,507
4,775
18,282
11,203		 Total
funds
2023
£
13,507
4,775
18,282
11,203		 Total
funds
2022
£
10,682
521
11,203

7. Other incoming resources

Lettings, admin fees and other income
Total 2022		 Unrestricted
funds
2023
£
40,485
34,795		 Total
funds
2023
£
40,485
34,795		 Total
funds
2022
£
34,795

Page 32

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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		 2023
£
445,744
8,609
984,055
72,391
1,294
1,066,081
63,705
2,641,879		 2022
£
326,997
2,416
308,500
21,279
406
687,567
58,024
1,405,189

9. Analysis of expenditure on charitable activities

Summary by fund type

Learner recognition
Access to HE
Project, membership and CPD
Total 2023
Total 2022		 Unrestricted
funds
2023
£
2,734,419
359,097
159,670
3,253,186
3,905,059		 Total
2023
£
2,734,419
359,097
159,670
3,253,186
3,905,059		 Total
2022
£
2,575,331
396,649
933,079
3,905,059

Page 33

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

10. Analysis of expenditure by activities

Learner recognition
Access to HE
Project, membership and CPD
Total 2023
Total 2022		 Activities
undertaken
directly
2023
£
960,288
159,372
56,773
1,176,433
1,398,922		 Support
costs
2023
£
1,774,131
199,725
102,897
2,076,753
2,506,137		 Total
funds
2023
£
2,734,419
359,097
159,670
3,253,186
3,905,059		 Total
funds
2022
£
2,575,331
396,649
933,079
3,905,059

Analysis of direct costs

Staff costs
Moderator and examiner costs
Centre costs
CPD and project expenses
Certificates
QAA registration
Foundation activities
Total 2023
Total 2022		 Learner
recognition
2023
£
538,237
244,926
9,653
-
64,245
-
103,227
960,288
917,507		 Access to
HE
2023
£
64,400
61,662
-
-
-
33,310
-
159,372
210,068		 Project,
membershi
p and CPD
2023
£
8,472
-
-
48,301
-
-
-
56,773
271,347		 Total
Total
funds
funds
2023
£
2022
£
611,109
779,469
306,588
258,980
9,653
14,247
48,301
210,882
64,245
9,508
33,310
27,581
103,227
98,255
1,176,433
1,398,922
1,398,922

Page 34

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 2023
Total 2022		 Learner
recognition
2023
£
807,355
181,004
65
248,440
28,783
69,711
117,027
10,703
93,126
129,437
2,263
6,600
61,685
17,932
1,774,131
1,657,824		 Access to
HE
2023
£
93,601
35,051
-
10,628
-
3,737
5,217
-
17,092
19,301
16,448
396
(170)
(1,576)
199,725
186,581		 Project,
membershi
p and CPD
2023
£
12,708
11,809
-
8,314
52
12,382
14,109
7,473
(7,519)
10,629
24,678
8,482
3,500
(3,720)
102,897
661,732		 Total
funds
2023
£
913,664
227,864
65
267,382
28,835
85,830
136,353
18,176
102,699
159,367
43,389
15,478
65,015
12,636
2,076,753
2,506,137		 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

11. Auditors' remuneration

2023 2022
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 24,000 24,000

Page 35

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

12. Staff costs

Wages and salaries costs
Social security costs
Pension costs		 Group -
2023
£
2,688,826
249,269
265,634
3,203,729		 Group- 2022
£
2,218,349
229,599
213,033
2,660,981

During the year a total of £2,506 (2022: £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 £nil (2022: £23,600) in the year.

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

Charitable activities
Administration
Management		 Group -
2023
£
53
12
13
78		 Group -
2022
£
40
12
13
65

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

2023 2022
£ £
In the band £60,001 - £70,000 - 2
In the band £70,001 - £80,000 2 1
In the band £140,001 - £150,000 1 1

The total remuneration and benefits received by key management personnel was £377,922 (2022: £449,104). The trustees consider the key management personnel to be the Chief Executive Officer, Deputy Chief Executive Officuer and Chief Operating Officer (the prior year also included the Director of Member Services and Communications and the Director of Awarding Service).

Page 36

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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:

2023 2022
£ £
P A Eeles Remuneration 144,003 143,367
Pension contributions paid 29,543 25,908

During the year, retirement benefits were accruing to 1 Trustees (2022 - 1) in respect of defined benefit pension schemes.

During the year ended 31 August 2023, travel and accomodation expenses totalling £ 3,721 were reimbursed or paid directly to 11 Trusteess of the charitable group (2022 - £2,598 to 7 Trustees) .

Included in the above were travel, accomodation and subsistence expenses reimbursed to 5 trustees of the parent charitable company totalling £2,151 (2022: £2,151 to 5 Trustees).

Page 37

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Intangible assets

Group

Cost
At 1 September 2022
Additions
At 31 August 2023
Amortisation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Develop-
ment
£
101,464
291,126
392,590
5,010
13,060
18,070
374,520
96,454		 Bespoke
software
£
26,595
13,619
40,214
4,284
5,889
10,173
30,041
22,311		 Website
£
314,663
74,181
388,844
202,707
40,728
243,435
145,409
111,956		 Goodwill
£
922,220
310,750
1,232,970
113,136
92,222
205,358
1,027,612
809,084		 Total
£
1,364,942
689,676
2,054,618
325,137
151,899
477,036
1,577,582
1,039,805

Page 38

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

14. Intangible assets (continued)

Charity

Cost
At 1 September 2022
Additions
At 31 August 2023
Amortisation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Bespoke
software
£
3,570
13,619
17,189
-
1,284
1,284
15,905
3,570		 Website
£
141,763
47,321
189,084
78,346
30,030
108,376
80,708
63,417		 Total
£
145,333
60,940
206,273
78,346
31,314
109,660
96,613
66,987

Page 39

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Tangible fixed assets

Group

Cost or valuation
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Property
£
2,596,200
-
2,596,200
1,008,091
39,886
1,047,977
1,548,223
1,588,109		 Fixtures and
fittings
£
251,230
222,438
473,668
209,276
25,477
234,753
238,915
41,954		 Office
equipment
£
6,267
6,087
12,354
5,233
1,294
6,527
5,827
1,034		 Computer
equipment
£
275,826
41,396
317,222
194,441
26,466
220,907
96,315
81,385		 Prefab'd
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
3,145,005
269,921
3,414,926
1,432,523
93,123
1,525,646
1,889,280
1,712,482

Page 40

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold
property
£
1,270,284
-
1,270,284
305,955
23,436
329,391
940,893
964,329		 Fixtures and
fittings
£
225,498
222,438
447,936
183,913
25,421
209,334
238,602
41,585		 Computer
equipment
£
201,568
41,396
242,964
132,101
25,816
157,917
85,047
69,467		 Prefab'd
building
£
15,482
-
15,482
15,482
-
15,482
-
-		 Total
£
1,712,832
263,834
1,976,666
637,451
74,673
712,124
1,264,542
1,075,381

Page 41

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

15. Tangible fixed assets (continued)

Group

Property fixed assets consist of freehold property with a net book value of £940,893 (2022: £964,239) and long-term leasehold property with a net book value of £607,330 (2022: £623,780).

16. Fixed asset investments

Group
Cost or valuation
At 1 September 2022
Additions
Disposals
Revaluations
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Listed
investments
£
366,760
78,700
(78,371)
(15,142)
351,947
351,947
366,760

Page 42

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

16. Fixed asset investments (continued)

Charity
Cost or valuation
At 1 September 2022
Additions
Disposals
Revaluations
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Investments
in
subsidiary
companies
£
1,061,615
310,750
-
-
1,372,365
1,372,365
1,061,615		 Listed
investments
£
366,760
78,700
(78,371)
(15,142)
351,947
351,947
366,760		 Total
£
1,428,375
389,450
(78,371)
(15,142)
1,724,312
1,724,312
1,428,375

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

Page 43

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 44

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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 1,996,764 2,146,432 (149,668) 1,546,911
Skills and Education Access 293,484 444,488 (151,004) 669,601
BIIAB Qualifications Limited 2,680,292 2,449,242 231,050 397,521
Quality Licence Scheme Limited 196,057 144,705 51,352 51,352

Page 45

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

17. Stocks

Group Group
2023 2022
£ £
Finished goods and goods for resale 113,900 40,696

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
2023
£
681,458
-
140,237
2
400,432
1,222,129		 Group
2022
£
1,070,699
-
2,154
2
343,667
1,416,522		 Charity
2023
£
26,345
569,051
139,259
-
200,412
935,067		 Charity
2022
£
70,207
368,202
-
-
127,036
565,445

Page 46

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

19. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2022
Resources deferred during the year
Amounts released from previous periods		 Group
2023
£
558,964
-
206,484
427,073
74,673
1,267,194
Group
2023
£
75,388
30,500
(75,388)
30,500		 Group
2022
£
212,127
-
165,387
243,615
321,704
942,833
Group
2022
£
255,974
75,388
(255,974)
75,388		 Charity
2023
£
114,442
695,887
64,591
425,530
20,450
1,320,900
Charity
2023
£
46,580
3,215
(46,580)
3,215		 Charity
2022
£
54,316
429,188
88,625
237,115
226,027
1,035,271
Charity
2022
£
219,484
46,580
(219,484)
46,580

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
2023 2022 2023 2022
£ £ £ £
Other creditors 269,670 363,870 269,670 363,870

Page 47

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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
2022
£
1,749,791
1,660,918
920,605
254,685
-
132,392
4,718,391		 Income
£
920,053
1,996,764
293,484
2,680,292
-
196,057
6,086,650		 Expenditure
£
(385,859)
(2,146,432)
(447,488)
(2,641,189)
3,000
(277,097)
(5,895,065)		 Gains/
(Losses)
£
(15,124)
-
-
-
(100,000)
-
(115,124)		 Balance at
31 August
2023
£
2,268,861
1,511,250
766,601
293,788
(97,000)
51,352
4,794,852

Page 48

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

21. Statement of funds (continued)

Statement of funds - prior 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
Gains/
Balance at
31 August
2021
£
Income
£
Expenditure
£
(Losses)
£
2022
£
1,991,927
1,229,229
(1,442,215)
(29,150)
1,749,791
1,634,913
1,900,760
(1,874,755)
-
1,660,918
979,718
372,428
(431,541)
-
920,605
31,446
1,697,151
(1,473,912)
-
254,685
(600,000)
(70,000)
1,000
669,000
-
-
221,217
(88,825)
-
132,392
4,038,004
5,350,785
(5,310,248)
639,850
4,718,391

22. Summary of funds

Summary of funds - current year

Balance at 1 Balance at
September Gains/ 31 August
2022 Income Expenditure (Losses) 2023
£ £ £ £ £
General funds 4,718,391 6,086,650 (5,895,065) (115,124) 4,794,852

Page 49

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

22. Summary of funds (continued)

Summary of funds - prior year

Balance at Balance at
1 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

23. 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
Provisions for liabilities and charges
Total		 Unrestricted
funds
2023
£
1,889,280
1,577,582
351,947
2,609,907
(1,267,194)
(269,670)
(97,000)
4,794,852		 Total
funds
2023
£
1,889,280
1,577,582
351,947
2,609,907
(1,267,194)
(269,670)
(97,000)
4,794,852

Page 50

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

23. 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
Creditors due in more than one year
Provisions for liabilities and charges
Ttl		 Unrestricted
funds
2022
£
Restricted
funds
2022
£
1,712,482
-
1,039,805
-
366,760
-
2,906,047
-
(942,833)
-
(363,870)
-
-
-
4,718,391
-		 Total
funds
2022
£
1,712,482
1,039,805
366,760
2,906,047
(942,833)
(363,870)
-
4,718,391

Total

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 on investments
Dividends, interests and rents from investments
Increase in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Defined benefit pension scheme FRS102 costs
Gains/(losses) on foreign exchange
Net cash provided by/(used in) operating activities		 Group
2023
£
176,461
93,123
151,899
15,124
(18,282)
(73,204)
184,091
(67,677)
(3,000)
-
458,535		 Group
2022
£
81,895
70,097
153,237
28,643
(11,203)
(734)
(681,194)
124,777
(1,000)
(508)
(235,990)

Page 51

SKILLS AND EDUCATION GROUP

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

25. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 Group
2023
£
1,273,878
1,273,878		 Group
2022
£
1,448,829
1,448,829

26. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2022
£
1,448,829
1,448,829		 At 31
Cash flows August 2023
£
(174,951)
£
1,273,878
(174,951)
1,273,878

Page 52

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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:

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.

Page 53

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

27. Pension commitments (continued)

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 2023.

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 2023 (year 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
Mortality rate (in years)
Males retiring today
Males retiring in 20 years
Females retiring today
Females retiring in 20 years		 2023
%
5
4
3
3
2023
Years
21
22
24
25		 2022
%
4
4
3
3
2022
Years
22
23
25
26

Page 54

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

2023 2022
£ £
Sensitivity analysis
Discount rate + 0.1% 19,000 25,000
Discount rate - 0.1% (20,000) (25,000)
Mortality assumption - 1 year increase (54,000) (51,000)
Mortality assumption - 1 year decrease 48,000 51,000

The pension scheme surplus/deficit is based on the actuarial assumptions used as at the 31 August 2023. 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 year 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		 2023
£
2022
£
1,493,000
1,472,000
62,000
72,000
134,000
118,000
84,000
79,000
58,000
74,000
33,000
28,000
1,864,000
1,843,000

The actual return on scheme assets was £75,000 (2022 - £32,000).

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		 2023
£
2022
£
5,000
10,000
(3,000)
10,000
(70,000)
70,000
(68,000)
90,000

Page 55

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

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		 2023
£
1,773,000
72,000
1,000
117,000
(104,000)
5,000
1,864,000
2023
£
1,843,000
75,000
(53,000)
5,000
1,000
(104,000)
1,767,000		 2022
£
2,530,000
42,000
1,000
(669,000)
(141,000)
10,000
1,773,000
2022
£
1,930,000
32,000
-
21,000
1,000
(141,000)
1,843,000

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.

At 31 August 2023, the present value of the defined benefit obligation was valued higher than the fair value of plan assets, and therefore the plan has a liability at the reporting date.

The last member of the scheme has now ceased. Discussions have commenced with West Yorkshire Pension Fund with regards to the potential buyout value. The current value cannot at present be reliably estimated.

Page 56

SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

28. Operating lease commitments

The Group and the Charity had no commitments under non-cancellable operating leases at 31 August 2023.

29. Related party transactions

Skills and Education Group Awards

During the year the charity recharged wages and other costs to its subsidiary, totalling £1,228,961 (2022: £1,365,352) and received payments from this entity totalling £1,495,661 (2022: £1,854,778). At the year end an amount of £695,888 (2022: 429,188) 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 £167,313 (2022: £209,147) and received payments from this entity totalling £163,506 (2022: £205,122). At the year end an amount of £3,876 (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 £1,357,169 (2022: £838,009) and received payments from this entity totalling £1,248,352 (2022: £1,028,488). At the year end an amount of £431,947 (2022: £323,130) was owed by BIIAB Qualifications Limited.

Quality Licence Scheme Limited

During the year the charity recharged wages and other costs to its subsidiary, totalling £75,206 (2022: £65,130) and made payments to this entity totalling £17,136 (2022: £24,243 received from the entity). At the year end an amount of £133,229 (2022: £40,887) 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 £4,875 (2022: £12,100) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £25 (2022: £9,100).

York College

L Probert, a trustee until 20/10/2023, is also CEO and Principal of York College . During the year income of £5,500 (2022: £6,000) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £Nil (2022: £3,000)

.

Nottingham College

J Meenaghan, a trustee, is also CEO and Principal of Nottingham College. During the year income of £4,545 (2022: £12,055) was received from the College for the provision of charitable services. There are amounts outstanding at the year end of £240 (2022: £Nil).

Buxton and Leek College

J Tildsley, a trustee, is also a Principal of Buxton and Leek College. During the year income of £3,800 (2022: £960) was received from the College for the provision of charitable services. There were no amounts outstanding at the year end (2022: £Nil).

Page 57

(A Company Limited by Guarantee)

SKILLS AND EDUCATION GROUP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023

29. Related party transactions (continued)

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 £800 (2022: 1,920) was received from the charity for the provision of charitable services. There were no amounts outstanding at the year end (2022: £ Nil).

TEC Partnership - Grimsby Institute

A Hardy, a trustee, is also CEO of the TEC Partnership. During the year income of £1,600 (2022: £5,170) was received from TEC for the provision of charitable services. There are no amounts outstanding at the year end (2022: £Nil).

Burton and South Derbyshire College

J Beaty, a trustee, is also a Principal of Burton and South Derbyshire College. During the year income of £37 (2022: £1,340) was received from the College for the provision of charitable services, and expenditure of £210 (2022: £Nil) incurred for the same purpose. There are no amounts outstanding at the year end (2022: £Nil).

North Warwickshire and South Leicester College

T Hamilton-Dick, a trustee until 15/09/2023, is also Deputy Principal of North Warwickshire and South Leicester College. During the year income of £4,850 (2022: £Nil) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £960 (2022: £Nil).

DN College Group

S Smith, a trustee until 14/09/2022, is also Deputy Principal of DN College Group. During the year income of £3,800 (2022: £Nil) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £360 (2022: £Nil).

Action Housing and Support

A Stott, chair of trustees, is also a trustee of Action Housing and Support. During the year income of £8,281 (2022: £Nil) was received for the provision of charitable services. There are amounts outstanding at the year end of £727 (2022: £Nil).

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