Registered number: 02640936 Charity number: 1004087 SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
SKILLS AND EDUCATION GROUP (A Company Limitad by Guarantee) CONTENTS Page Ref8renc6 and Admlnistratlvo Details of the Charfty, Its Trusteas and Advlsérs Trustèes. Report Indèpendent Audltorn. Rèport on the Flnanclal Statements Consolidat•d Statement of Flnanclal Actfvlties 3-12 13-17 18 Con•olldated Balance Sheet 19-20 Charity Balance Sho•t Consolldatsd Statement of Cash Flows 21-22 23 Notss to the Flnanclal Statements 24-50
SKILLS AND EDUCATION GROUP {A Company Llmitsd by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024 Trustees S C Alton J P Beaty (resigned 10 July 2024) G Clipson MBE (resigned 31 January 2025) P A Eeles (resigned 8 April 2025) V A Hancock (resigned 18 October 2024) J Smith, Chair Y Y Mellor (resigned 18 November 2024) A G Stott (resigned 10 January 2025) L J Tildsley (resigned 23 April 2024) T Hamilton-Dick (resigned 15 September 2023) L D Probert (resigned 20 October 2023) E A Barrett OBE (appolnted 23 April 2024) Y Koursis OBE {appointed 23 April 2024) K J Merry (appointed 23 April 2024) R J Nicholls (appointed 23 April 2024) D Poole (appointed 23 April 2024) Dr R J Gater (appointed 23 April 2024, resigned 30 October 2024) Dr G Scott (appointed 7 February 2025) J F Scorer (appointed 7 February 2026) Company registered number 02640936 Charity reglstared number 1004087 Reglstered offlce Robins Wood House Robins Wood Road Aspley Nottingharn NG8 3NH Company Secretary S Nouman (appointed 26 March 2025) T De'Ath (appointed 7 December 2023, resigned 26 March 2025) S Feneley-Lamb (resigned 7 December 2023) Key management Interim Chief Executive: Y Mellor Independent auditors Streets Audit LLP Tower House Lucy Tower Street Lincoln LN1 1XW Banker5 Natwest 536 Valley Road Nottingham NG51FL Page 1
SKILLS AND EDUCATION GROUP (A Company Umited by Guarantse) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Sollcltors Bates Wells 10 Queen Street London EC4R 1BE Page 2
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees present their annual report tQ9ether wth the audited financial statements of the Charity for the year fromyear 1 September 2023 to 31 August 2024. The Annual Report senies the purposes of both a Trustees, report and a directors, report under company law. The Trustees confirm that the Annual Report and financial ststements of the charitable company comply with the current ststutory requirements, the requirements of the charitable companys governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Objectlves and actlvltles a. Pollcles and objectlves 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.. awarding and assessment services and qualifications regulated by CCEA (Northem Ireland), Ofqual, Qualification Wale5 and SQA (Scotland) on a national and international level awarding Acce5S to HE Diplomas regulated by the Qualifications Approval Agency (QAA> awarding and assessment services for non-regulated skills and education programmes on a national and international level delivering end-point-assessment (EPA) services approved and regulated by the Institute for Apprenticeships and Technical Education (IfATE) and Ofqual the development and delivery of professional development programmes to meet the training needs of teaching and non-teaching staff across the further education sector customised training for colleges and training providers developing programmes to support and develop the professionalisats'on of the further education sector delivery of project-based activities to improve individuals, knowledge on labour exploitation and modem slavery local, regional and national stakeholder engagement to inform and support policy developments and implementation championing social mobllity, supporting leamers with grants and support through a Foundation The Charity's strategic aims adopted in support of these objectives are identified by an annual strateglc planning process culminating in "Arnbition 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 objective8 and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Comrnission relating to public benefft, including the guidance 'Public benefft.. running a charity (P82)'. Achlevements and perforniance a. Maln achlevements of the Charity Achlovements and perfomiance delivering public beneflt 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 ethiGs, professionalism, teamwork, and a commitment to achieving educational, economic, and social advancement for all. The Charity, through its work, provides financial support to learners, acce55 to professional development programmes, and other initiatives to support teaching, leaming, assessment, and governance across the further education sector. Page 3
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Achlevements and performance Icontlnued) Professional Development The Charity continues to provide high quality professional development programmes, nehvorks, and conferences all of which aim to support the sector's workforce. The range of services provided is designed to enable the sector, and the staff that Vrk within it. to enhance the lives of young people, adults, and the communits'es our members and non-members serve. Professional development events were attended by participants in the UK and intemationalty. The increasing demand for in-houselbespoke training continues and events were tailored to meet this demand. The Charity's Conference took place in May 2024. The fijlly booked event attracted over 300 delegates, including staff from across the further education and skills sector, sponsors and exhibitors. The conference included keynote speeches, panel sessions, workshops, and an exhibition, with a range of speakers sharing their perspectives on the further education and skills sector. Work to support minority communltles 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 Wlthin the Romanian community in the UK of their workers, rights under UK law to prevent labour exploitation, Ski118 and Education Group Foundation The Charity's Foundation champions social mobility by supporting leamers 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, acceleraling social mobility and building a fairer society. Through the Foundation's Learner Grants, Actlon Research Grants and Resource and Facilities Grants. The Foundation's Learner Grant helps individuals to overcome social barrierg and advance their skills and education, these grants are for applicants who demonstrate a commitment and willingness to achieve but face financial andlor social adversity. 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 up to £6,000 to support aclion research projects that irnprove practice, widen learner participation, and increase social in¢lu5ion across a breadth of student demographics. Projects induded activities aimed at helping retention of English and maths students of lower SOCiOweconomic backgrounds, improving inclusion for learners with special educational needs and disabilities and more. The Resource and Facilities Grants provide up to £2.000 to deliver material improvements to leaming providers. These grants can be used to fund time-limited projects wth clear physical outcome5, or to renew or improve resources or facilities. They sUPPOrt applicants in mitigating a problem that is negatively affecting the experience of their leamers or the ability of their colleagues to deliver high-quality teaching. Page 4
SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Achlevements and performance (contlnued) Awarding Servlces The Charity's awarding services are delivered through Skills and Education Awards and BIIAB Qualifications Limited (BIIAB). Ski115 and Education Group AvRrds is a leading national awarding organisation with a long- established reputstion for providing high qualty support and services to the education sector regulated by CCEA, Ofqual and Qualrfications Wales. BIIAB is an awarding and end-point assessment organisation of choice for work-based leaming 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. Skills and Education Group Awards portfolio continues to offer qualifications across a range of sectors. All new qualifications are developed in partnership vlith employer$ to ensure they moet industy needs and align to new government reforms. Aslde from qualificatlon delivery, Skills and EdUtIon Group Awards and BIIAB contlnue to grow their end-point as5e55ment portfolio. Skills and Education Group Access continueg to have a strong social purpose to recogni5e 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. b. Fundralslng actlvftles and Income genèratlon The charitable group does not carry out any significant fundraising activities. Page 5
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Flnanclal review a. Golng concem At the year end, in light of the Group's operational circumstsnces, the Trustees considered it necessary to undertake a detailed assessment with external support as to vthether the Group and its subsidiary entities can continue to operate for the foreseeable future. The past year presented significant challenges- however, followtng appropriate enquiries, the Trustees have reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. As a result, the Trustees continue to adopt the going concern basis in preparing the financial statements. Further information on the adoption of the going concem basis is provided in the accounting policies. Thls conclusion is supported by ihe following factors.. Following the year end, under new leadership, a number of strateglc operational and financlal declslons have been taken to course-correct and stabilise the Group's activities.. The organisation is well positioned, with sufficient resources secured and a clear strategic plan in place to mitigate and navigate the challenges ahead., The Trustees have reviewed the Group's financial position, including the level of reserves held, post year- end performanGe, and projected income and expenditure for a period of at least 12 months from the date of approval of these financial statements. Based on these forecasts, which indicate a return to P051tive EBITDA, the Trustee5 are confident that the Group remains a golng concern, b. Reserves pollcy It Is the policy of the Charity that unrestricted funds which have not been designated for a speclfic purpoge should be maintained at a level necessary lo provide a contingency to support day-to-day bu$ine$s activities in the event of reduced income and provide a strategic fund to develop and grow the Charfty. 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 confirrn that this level of reserve has been maintained. It is the Charity's policy to work to building and maintaining reserves to: support the short, medium and long-term objectives of the Charity and it5 subsidiary charities re-invest any surplus funds to support, develop and expand the delivery of high-quality services re-invest any surplus fvnds to support activities that enable social mobility and provide a public benefit maintain sufficient reserves that are readily realisable to sustain operations as and when required cover deficits, when arising, from general reseeS mitigate the risks of unforeseen challenges, emergencies or other unexpected requirement for fvnd5 maintain designated funds that recognise funds that are to be used for a specific purpose cover statutory obligations to close and wind-up the charitable Charity'5 affairs in an orderly manner, when required. Unrestricted funds at the end of the year were £2,555,049 (2023-. £4,794,852), with free reserves which exclude fixed assets and are stated before creditors and liabilities falling due after more than one year in a deficit position of £489,660 (2023.. £1,342,713 surplus). Page 6
SKILLS AND EDUCATION GROUP (A Company Limlted by Guarantaa TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Reserve Contingency Pur ose .Sustain business operations .Cover deficits .Mitigate the Tisks of unforeseen challenges andlor emergencies .Cover ststuto obli ations .Support short, medium and long- term objectives .Support grow1h .Invest in research and development for new products and services .Infrastructure development to support strategic growth including IT infrastructure and lications .Re-invest surplus funds to support social mobility and provide public benefit .Designated fund recognising local overnment ension scheme deficit .Funds for a designated purposed defined by contractual agreements with third parties {proJe¢t-based activities et Amount £1,400,000 Strategic £500.000 Social Mobility £140,000 Designated Pension Fund £Nil - per actuary valuation Designated Fund - Third Party Contracts £ioo,000 c. Matsrfal investments poIIcy The Charity holds an ethical investment portfolio of listed securities with Brewin Dolphin. The current risk profile is low to moderate which reflect5 a focus on income over capital gr0h. 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 2024, the portfolio had a value of £nil, all investments were disposed of during the year. (2023: £353,818). d. Princlpal rfsks and uncertainties Trustee5 remain aware of the educational and political environment in whiGh the Charity operates and recognise the challenges facing providers in the further education sector. Key Ti5ks to the Charity are.. A fast-changing political environment that has an impact on education policy and funding to support this Regulatory changes and a failure to respond to these in the way that is needed to ensure continuing compliance Failure to appropriately manage and store personal data leading to a data breach under the General Data Protections regulations. 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 thin 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 w1ghted likelihood and impact scale based on Charity Commission Guidance. Page 7
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guaranta8) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2D24 e. Flnancial perforniance and position The Charity suffered a significant deficit of £2,239,803 (2023.. £76,461 surplus), after taking into account gains and losses on investments, and actuarial losses on the pension scheme liability. Total income was £6,970,347 (2023.. £6,086,650) and totsl expenditure VRS £8,723,573 (2023.. £5,895,065) and reflects the increased costs during the year of 5eTvicing 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 £3,726,682 (2023- £3,203,729). Salaries and associated costs remain the primary cost to the Charity. Net assets at the year end were £2,555.049 compared viith £4,794,852 at 31 August 2023, Structure? govemanco and managem•nt . Constitution The organisatlon Is a charitable company limited by guarantee, whlch 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, vthich includes.. Skllls and Education Group Awards, a charitable company Ilmlted by guarantee.. Company Number 04117784 Charity Number 1086947 Skills and Education Group Access a charitable company limited by guarantee.. Company Number 03773914 Charity Number 1088839 BIIAB Qualifications Limited, a company limited by shares.. Company Number 10054831 The Skills and Education Group delivers its products and sepiices through a brand structure that maintains and protects the profile and reputation of the Charitieslcompanies within its structure. Page 8
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure, govemance and managemont (contlnued) b. Methods of appolntment or electlon of Trustees There was ten changes to the Board during the year: J P Beaty resigned on 10 July 2024 V A Hancock resigned on 18 October 2024 L J Tildsley resigned on 23 April 2024 T Hamilton - Dick resigned on 15 September 2023 L D Probert resigned on 20 October 2023 E A Barrett appointed on 23 April 2024 Y Koursis appointed on 23 April 2024 K J Merry appointed on 23 April 2024 R J Nicholls appointed on 23 April 2024 D Poole appointed on 23 Aprll 2024 Trustees are recruited in accordance wlth the Articles of Association (revised, adopted 12 October 2021) Section 18 - 21 which Govers elected, co-opted, and subsidiary representative Directors. All neY appointed Trustees complete a skills audit to ensure a balance of skills, knowledge, and experience5 to support the development of the Charity. Trustee recruitment reflects ongoing and future skills and knowledge needs. c. Organlsational structure and decision-making polici08 The Board of Trustees meets four tirnes a year. Trustees: support the Chief Executive and Senior Leadership Team (SLT) to determlne the strategic direction of the Charity and review annual strategic plans, busines5 plans and Key Perfonnance Indicators. approve annual budgets, receive and review quarterly management accounts to monitor and challenge performance review and monitor the strategic risk register to ensure that the appropriate controls are in place to mitigate risks ensure that appropriate govemance review mechanisms are in place and that perfomiance is reviewed and that Charity Commission guidance is followed. The Chairs and Chief Executive meet four times a year, wthich 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 performance of the Chief Executive and the Senior Leadership Team financial performance for the Charity and take a holistic view of all entities wthin the Group structure performance against strategic and business plans the Charity and all other entits'es identify opportunities for growth and the approach that may be taken to progress these detemiine longer-teim strategic direction to help shape plans and proposals for all Trustee5 to consider. The Chief Executive is a Trustee of the Ski115 and Education Group. an appointment made under article 20 of the Skills and Education Group Articles. Page 9
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure, governance and management Icontinued) Day-to-day management of the Charrty 15 delegated to the Chief Executs've 15 5UPPOrted by a Deputy Chief Executive. The Executive is supported by a Senior Leadership Team (SLT), who support Ihe Chief Executive and Deputy Chief Executive with operational and strategic matters. The Senior Leadership Team meets on a weekly basis, yth 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 meets'ng is chaired by the Deputy Chief Executive and is used to formerly review regulatory needs across all awarding functs'ons wtthin the Group. The Deputy Chlef Executive act8 as the Data Protectlon Officer across the Group and is supported by members of the Senior Leadershlp Team. d. Pollcles adopted for the inductlon and tralnlng of Trusteos NevAy appointed Trustees receive an induction under the direction of the Chief Executive. This normally indudes 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. Declaration5 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 pollcy for koy management personn81 Remuneration for the Chief Executive is detemilned 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 rlsk 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 af the Group and the Charity, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. Page10
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Plans for future perlods Trustees continue to support "Ambition 2025°, challenging assumptions and using their skills and knoedge to define objectives and associated targets. Ambits'on 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: To support the development and delivery of further education and skills providers and their staff Champion and support the social impact of the further education and skills sector To develop and award industry relevant, high-quality qualifications, accreditations and end-point assessments To be a national leader in Access to HE, awarding high quality Access to HE Diplomas that enable learners to progress into further study andlor employment. Mlssion: The advancement of skills and education to improve the lives of individuals. Vlslon: To provide high-quality services centred on collaboration, responsiveness, and dlverslty, supporting our members and customers to positively impact on the leamers, communitie5, and sectors they serve to achieve their full potential, no matter whattheir age, background or abilty. The plans set annual key performance indicators in the context of a longer-temi objectives.. To see a growth in membership Increase the number of people participating in professional development event5 An increase in the uptake of grants to learners awarded through the Group's Foundation Raise awareness of the charities work, through its Foundation, in widening participalion and social mobility Grow the number of leamers benefltlng from a certificate form at least one of the charity's awarding brands Grow the collective avmrding share Ensure that a surplus is generated Explore intemational opportunities Ensure good staff engagernent and satisfaction. Page11
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantea) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2D24 Statement of Trustees. rgsponslbilities The Trustees (who are also the directors of the Charity for the purposes of company lawl are responsible for preparing the Trustees, Report and the financial statements in accordance wth applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting Practice). Company law require5 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.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP (FRS 1021., make judgments and accounting estimales that are reasonable and prudent., state whether applicable UK Accounting Standards {FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financlal statements on the going concern basis unless it is inappropriats to presume that the Group will continue in busines5. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and di5c105e 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 wth the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. D18cIoguro of Information to audltorn Each of the persons who are Trustees al the time when this Trustees, Report is approved has confim)ed that: so far as that Trustee is aware, there is no relevant audlt Infomiation of which the charitable group's auditors are unaware, and that Trustee ha5 taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information. Approved by order of the members the board and signed on their behalf by.. Trustees on J Smith (Chair of Trustees) Page 12
SKILLS AND EDUCATION GROUP IA Company Umited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Icontlnued) 2.7 Intanglble assots and amortlsatlon 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. Intsngible 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 irnpairment losses. 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 Website Bespoke software Goodwill not depreclated 25 % straight line 20 % straight line 10 UA straight line 2.8 Tangible fixed assets and deprgclatlon Tangible fixed assets costing £500 or more are capitslised and recognised when future economlc 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 condltlon 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 5traight-line method. Depreciation is provided on the following bases.. Property Fixtures and ffttings Office equipment Computer equipment other fixed assets 1.15 % straight line 10_25¢hl straight line 20.330A straight line 20.330 straight line 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 les5 impaimient. Investment gains and losses, vthether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments. in the Consolidated SLitement of Financial Activities. Investments in subsidiaries are valued at cost less provision for impaimient. Page 26
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantea) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policie8 Icontlnued) 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 tsx recoverable in relation to Investrnent income is recognised at the Ilme the Investment income is receivable. Other Income is recognised in the perlod In whlch it is receivable and to the extent the goods have been provided or on completion of the seTVlCe. 2A Expenditure Expenditure is recogni5ed 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 activty are made up of the total of direct cost5 and shared costs, inciuding support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which Gontribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activits'es 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 actlvities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. Ail expenditure is incluslve of irrecoverable VAT. 2.5 Research and d•v•lopmont Development costs are capitslised withln Intangible assets where they can be identlfied with specific produd or project anticipated to produrk 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 vthen 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 yth whom the funds are deposited. Page 25
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 General Infomiation 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 cUencY of the entity. Accounting policles 2.1 Basis of preparatlon of financlal Statements The financial statements have been prepared in accordance th 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 Companie5 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 undertaking$. The results of the subsidiaries are consolidated on a line by line basis. The Charty has taken advantage of the exemptlon 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 Golng concem The financial statements have been prepared on a going concern basis. At the year end, the Group reported net current liabilities of £179,660, which necessitated a detailed assessment by the Trustees with external support a5 to whether the Group and its subsidiary entits.es can continue to operate for the foreseeable future. After making appropriate enquiries, the Trustees have a reasonable expectation that the Group ha5 adequate resources to continue in operational existence for the foreseeable future. While the past year has presented significant challenges which did give rise to material uncertainties, the organisation is showing positive signs of recovery. Under new leadership, a number of strategic operational and financial decisions have been taken to course-correct and stsbilise the Group's activities. The organisation is well posits-oned, with sufficient resources and a clear strategic plan, to mitigate and navigate these challenges. The Trustees have reviewed the Group's financial position, including the level of funds held, post year-end results, and the projected income and expenditure for a period of at least 12 months from the date of approving these financial statements. Based on these forecasts, which indicate a retum to positive EBITDA, the Trustees are confident that the Group remains a going concem. For this reason, the Trustees continue to adopt the going conrn basis in preparing the financial statements. Page 24
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantse) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Cash flows from operating actlvltle8 Net cash used in operating activities (541,055) 458.535 Cash flo from Investlng actlviti•s Dividends, interests and rents from investments Purchase of intangible assets Purchase of tangible fixed assets Proceed5 from sale of investments Purchase of investments 14,863 18,282 1733,548) (379,665) (105,210) (269,921) 383,796 76,518 (31,849) (78, 700) Net cash used in investing actlvltlos (471,948) 1633A86) Cash flows from financing actlvltles Net cash provlded by flnancing actlvities Change In cash and cash oqulvalonts In the year Cash and cash equivalents at the beginning ofthe year 11,013,003) 1174,951} 1,273,878 1,448,829 Cash and cash equlvalents at the end of the year 260,875 1,273,878 The notes on pages 24 to 50 form part of these financial statements Page 23
SKILLS AND EDUCATION GROUP IA Company Limitsd by Guarantee) REGISTERED NUMBER: 02640936 CHARITY BALANCE SHEET ICONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Charlty funds Restricted fvnds Unrestricted funds 21 21 1,866,156 2,474,218 Total funds 1,866,156 2,474,218 The Charitys net movement in funds for the year was £(608,062) (2023 - £611,292). The Trustees acknowledge their responsibilities lor complying with the requirements of the Act with respect to accounting records and preparation of financial ststements. The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. J Smlth (Chair of Trustees) The notss on pages 24 to 50 fomi part of these financial statements. Page 22
SKILLS AND EDUCATION GROUP (A Company Limitad by Guarantea) REGISTERED NUMBER: 02640936 CHARITY BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Flxed assets Intangible assets Tangible assets Investments 14 15 16 139,581 1.283,974 1,712,936 96,613 1,264,542 1,724,312 3.136,491 3,085,467 Current o580ts Debtors Cash at bank and in hand 18 1,123,310 5,459 935,067 44,254 1.128,769 979,321 Credttors.. amounts falllng due within one year 19 (1,911,834) (1,320, 900) Not curront Ilabllltigs 1783,065) (341,579) Total assets legs currant liablliti09 2,353,428 2, 743,888 Creditors.. amounts falling due after more than one year 20 (487,2701 (269,670) Net assets excludlng penslon asset 1,866,156 2,474,218 Total net as$ots 1,866,156 2,474,218 Page 21
SKILLS AND EDUCATION GROUP (A Company Llmltad by Guarantee) REGISTERED NUMBER: 02640936 CONSOUDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Charity funds Restricted funds Unrestricted funds 21 21 2.555,049 4. 794,852 Total funds 2,555,049 4, 794,852 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 and signed on their behalf by: J Smith (Chair of Trustees) The notes on pages 24 to 50 form part of these financial ststements. Page 20
SKILLS AND EDUCATION GROUP (A Company Limltsd by Guarantso) REGISTERED NUMBER: 02640936 CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Flxed assets Intangible assets Tangible assets Investments 14 15 16 1,934,282 1,887,697 1,577,582 1,889,280 351,947 3,821,979 3,818,809 Current a$80ts Stocks Debtors Cash at bank and in hand 17 18 29,573 1,355,707 260.875 113,900 1,222, 129 1,273,878 1.646,155 2,609,907 Creditors.. amounts falling due within one year 19 (1,825,816) (1,267, 194) Net currnnt Ilabllltlos l assots (179,660) 1,342, 713 Total a880ts loss current liabilitlas 3,642,319 5, 161,522 Creditors.. amounts falllng due after more than one year 20 (487,270 (269,670) Not assets excludlng pension Ilablllty Defined benefit pension scheme liabilty 3,155,049 (600,0001 4,891,852 (97,000) Totsl net assets 2,555,049 4, 794,852 Page 19
SKILLS AND EDUCATION GROUP IA Company Limlted by Guarantaa) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Unre5trlcted funds 2024 Total fund9 2024 Total funds 2023 Note Income from: Charitable activities 3.721,001 3,162,229 14,863 72,254 3,721,001 3.162,229 14,863 72,254 3, 151,534 2.876,349 18,282 40,485 Other trading activities Investments Other income Total Income 6,970,347 6,970,347 6,086,650 Expenditure on: Raising funds Charitable activities 3,772,107 4,951,466 3,772,107 4.951,466 2, 641,879 3, 253, 186 Total expenditure 8,723,573 8.723,573 5, 895,065 Net lexpendlture)Ilncome before not gainslllos8es) on Investments Net gainsl(losses) on investments N8t movement In funds before other rncognlsed galnsl(losses) 11.753.226) (1,753,226) 16,423 16,423 191,585 (15,124) (1,736,803) {1,736.803) 176,461 Other recognlsed galnsl(losses): Derecognition of pension asset Aduarial gainsl{losses) on defined benefit pension scheme liability 70,000 1503.000) 1503,000 {170,000) Net movement in funds 12,239.803} 12,239,803 76,461 Reconclllation of funds: Total funds brought forward Net movement in funds 4,794,852 {2,239,803) 4,794,852 (2,239.803) 4,718,391 76,461 Total funds carrled forward 2.555.049 2,555,049 4, 794,852 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 24 to 50 fomi part of these financial statement5. Page18
SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) 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 th8 audit of the financial statements Is located on the Financial Reporting Council's website at: w.frc.or .ukJauditor res onsibilities. This description forms part of our Auditors, Report. Uge of our report This report is made solely to the charitable companys members, a5 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 companys 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 a55ume responsibility to anyone other than the charitable company and its member5, as a body, for our audit work, for this report, or for the opinions we have fomied. Robert Andorson Bsc FCA Isenlor Statutory Audltor) for and on behalf of Streets Audit LLP Tower House Lucy Tower Street Lincoln LN1 1XW Date: Page 17
SKILLS AND EDUCATION GROUP (A Company Llmltsd by Guarantee INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED) Auditors, responsiblllties for the audit of the financial statements Our objectives are to obtain reasonable assurance about vthether 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 flnancial sL1tements. Irregularits'es, including fraud, are instances of non-compliance with lavrfs and regulations. We design procedures In line with our responsibilities, outlined above, to detect material misstatements in respect of iegUlaTI.e5, including fraud. The extent to vthlch our procedures are capable of detecting irregularitles, including fraud is detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commerual knowledge and experience of the company and sector in which it operales., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011, Ofqual and Qualifications Wales regulations, Council for the Curriculum, Examinations & Assessment ICCEA) regulations, employment law, General Data Protection Regulation (GDPR), Health & Safety and taxation legislation,. we assessed the extent of compliance wth the laws and regulations identified above through making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to materlal mlsstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud. their knowledge of actual, suspected and alleged fraud., and considering the internal controls in place to mitigate risks of fraud and non-compliance wlth lavts and regulations. To address the risk of fraud through management bia3 and override of controls, we: performed analyts.cal procedure5 to identfy any unusual or unexpected relationships; tested joumal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included. but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with govemance., and enquiring of management as to actual and potential litigation and daims. Page 16
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED Rosponslbilitles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustee5 (who are also the directors of the charrtable company for the purposes of company law) are responsible for the preparation of the ffinancial statements and for being satisfied that they give a true and fair view, and for such internal control as Ihe 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 concem and using the going concem 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. Page15
SKILLS AND EDUCATION GROUP (A Company Limlted by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP {CONTINUED) Other Infomiatlon The other information comprises the infomiation included in the Annual Report other than the financial statements and our Auditors. Report thereon. The Trustees are responsible for the other information contsined 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 infomiation 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 yrk VR have performed, we conclude that there is a material misststement of thls other information, V are required to report that fact. We have nothlng to report In thls regard. Oplnlon on other matters prescrlbed by tha Companles Act 2006 In our opinion, based on the Vrk undertaken in the course of the audit: the information given in the Trustees. Report for the financial year for lch the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the Ilght of our knowledge and understanding of the charitsble company and Its environment obtsined in Ihe course of the audit, we have not identified material misstatements in the Trustees, 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.. the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Page 14
SKILLS AND EDUCATION GROUP {A Company Limitsd by Guarant88) 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 tts subsidiaries (the 'group') for the year ended 31 August 2024 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.. give a true and fair view of the state of the Group's and ofthe parent charitable company's affairs as at 31 August 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance vlth United Kingdom Generally Accepted Accounting Practice., and have been prepared In accordance with the requirements of the Companies Act 2006. Ba819 for opinion We conducted our audit in accordance with Intemational 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 wth 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 basls for our opinion. Conclusions relatlng to golng concern In auditing the financial statements, we have concluded that the Tru5tees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 ompanls ability to continue as a going concern for a period of at least trNelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Twstees with respect to going concern are described in the relevant sections of this report. Page 13
SKILLS AND EDUCATION GROUP {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting pollcies (continued) 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 indudes all direct costs and an appropriate proportion of fixed and variable overheads. 2.11 Dobtor8 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 aGqUi5its-on or opening of the deposit or similar account. 2.13 Liabilltles 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 seNices 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 Flnanclal Instruments The Group only has financial assets and financlal liabilities of a klnd that qualify as basic flnanclal instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value wth the exception of bank loans which are subsequently measured at amortised c05t using the effective interest method. 2.15 Ponsions A charitable company wthin the group (Skills and Education Group Access) previously contributed to the West Yorkshire Pension Scheme (WYPS). a defined benefit scheme, at rates set by the scheme's actuaries. The charity is no longer an active member of the scheme, and therefore provision for the orphan exit charge from the pension scheme is recogni5ed in these financial statements. The charity also contributes to defined contribution schemes for ceriain employees all of which are separately administered from the charity and the charge recognised in the Ststement of Financial Activities. Page 27
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (contlnued 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. Crltlcal accounting e8tlmates and areas of Judgment Estimates and judgments are continually evaluated and a based on historical experience and other factors, Including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estlmates and assumptions: The Charfty makes estimates and assumptions concerning the fijture. The resulting accounting estlmates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustrnent to the carrying amounts of assets and liabilsties within the next financial year are discussed below. The present value of the l+VYPS defined liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in detennining the net costs or income for pensions include the discount rate. Any changes in these assumptions Vlill impact the carrying amount of the liabilty. Income from charitable activities Unr8strlcted funds 2024 Total funds 2024 Total funds 2023 Learner recognition Access to HE Project. membership and CPD 2,933,668 388,066 399,267 2,933.668 388,066 399,267 2,679,318 252,280 219,936 Total 2024 3,721,001 3,721.001 3. 151,534 Total 2023 3, 151,534 3, 151,534 Page 28
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Income from other trading act5vities Income from non charltable trading acllvlties Unre8trlcted funds 2024 Total funds 2024 Total funds 2023 Income from trading subsidiaries 3,162,229 3,162,229 2.876,349 rotal 2023 2, 876,349 2,876,349 Investment Income Unrn8tricted funds 2024 Total funds 2024 Tot81 lunds 2023 Dividends receivable from11sted investments Interest receivable - local cash Interest recelvable - other 9,691 2,833 2,339 9,691 2,833 2.339 13,507 4, 775 Total 2024 14,863 14,863 18,282 Total 2023 18,282 18,282 Other incomlng rasourcos Unrestrlctsd funds 2024 Totsl funds 2024 Total funds 2023 Lettings, admin fees and other income 72,254 72.254 40.485 Total 2023 40,485 40,485 Page 29
SKILLS AND EDUCATION GROUP (A Company Limlted by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Expendlture on raising funds 2024 2023 Cost of sales - BIIAB Cost of sales- QLS Administration expenses - BIIAB Administration expenses - QLS Depreciation - BIIAB Salary recharge8- BIIAB Salary recharges - QLS 449,732 445, 744 8,609 984,055 72,391 1,294 1,066,081 63, 705 1,740,207 1,558 1,580,610 3,772,107 2,641,879 Analysis of exponditure on charltsble actlvltles Summary by fund typo Unrestricted fund• 2024 Total 2024 Total 2023 Learner recognitlon Access to HE Project, membership and CPD 3,504,807 746,865 699,794 3,504,807 746,865 699.794 2,734,419 359, 097 159, 670 Totsl 2024 4,951,466 4,951,466 3,253, 186 Total 2023 3, 253, 186 3,253, 186 Page 30
SKILLS AND EDUCATION GROUP (A Company Llmited by Guarantse NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Analysis of 8xpenditur8 by activities Activiti undertaken directly 2024 Support costs Total fund• 2024 Total funds 2023 2024 Learner recognition Access to HE Project, membership and CPD 1,125,298 280,341 257,239 2,379,511 466,524 442,555 3,504807 746,865 699,794 2,734,419 359,097 159,670 Total 2024 1,662,876 3,288,590 4.951,466 3,253, 186 Total 2023 1,176,433 2,076, 753 3,253, 186 Analysls of dlrect costs ProJe¢( rnembfrrship and CPD 2024 Loamar recognlllon Acce88 to HE 2024 2024 Total fund8 2024 Total funds 2023 Staff costs Moderator and examiner costs Centre costs CPD and prolect expenses Certificates QAA registration Foundation activities 642,967 262,037 24.066 153,953 89,339 92,692 889.612 351,376 24,065 164,547 85.157 37,049 111,070 611,109 306,588 9,653 48,301 64, 245 33,310 103.227 164,547 85,157 37.049 111,070 Total 2024 1,126,296 280,341 257,239 1.662,876 1, 176,433 Total 2023 960,288 159,372 56, 773 1, 176,433 Page 31
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Analysls of oxpondlture by activities (contlnued Analysis of support costs Project, membership and CPD 2024 Learner recognlllon Ac¢es¥ to HE 2024 2024 Total funds 2024 Total funds 2023 Staff costs Depreciation Bad debt Other staff Costs Qualification development Administration Communications and marketing Donations Premises ICT costs Professional fees Bank charges Irrecoverable VAT Govemance costs 964,451 236,769 27,979 302,358 80,157 94,888 131,261 58,721 29,789 201,622 169,033 7,818 50,208 24,457 230,930 49,867 52,834 21,933 139,038 72,959 1,334,419 369,595 80.813 349.033 87,033 104,351 169,619 67,499 48,504 243.668 199,254 9,827 202,579 32,396 913,664 227,864 65 267,382 28,835 85,830 136,353 18,176 102,699 159,367 43,389 15,478 65,015 12,636 24,742 6,876 1,301 17,055 8,778 1,291 5,331 12,805 1,641 147,815 2,923 8,182 21,303 17,424 36,715 17,416 368 4,556 5.016 Total 2024 2,379,511 466,524 442,555 3,288,S90 2, 076, 753 Tot812023 1,774, 131 199, 725 102,897 2, 076. 753 11. Auditors. remuneratlon 2024 2023 Fees payable to the Charitys auditor for the audit of the Charitls annual accounts 24,000 24,000 Page 32
SKILLS AND EDUCATION GROUP {A Company Llmlted by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 12. Stsff costs Group - 2024 Group 2023 Wage5 and Salaries costs Social security costs Pension costs 3,160,437 322.837 243.408 2, 688,826 249,269 265,634 3,726,682 3.203, 729 During the year a total of £50,963 (2023.. £Nil) vms paid in respect of contractual termination and redundancy payments, relating to 8 employees (2023: Nill. During the year a further £2,506 (2023: £2,506) pald in respect of contractual temiinatlon payments which represent 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. The average number of persons employed by the charltable company during the year was as foll0v. Group - 2024 Group - 2023 Charitable activities Administration Management 60 23 13 53 12 13 96 78 The number of employees whose employee benefit5 (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £90,001- £100,000 In the band £140,001- £150,000 In the band £150,001- £160,000 The total remuneration and benefits received by key management personnel was £377,684 (2023: £377,922). The trustees consider the key management personnel to be the Chief Executive Officer, Deputy Chief Executive Officer and Chief Operating Officer. Page 33
SKILLS AND EDUCATION GROUP (A Company Llmited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Trustees. rnmunoration and expenses During the year, one or more Trustees has been paid remuneration or has receNed other beneffts from an employment Viith the Charity for their role as Chief Executive Officer. The value of Trustees, remuneration and other benefits was as follo. 2024 2023 P A Eeles Remuneration Penslon contributions paid 157,357 30.391 144,003 29,543 During the year, retirement beneffts Vre accruing to 1 Trustees (2023 - 1) in respect of defined benefit pension schemes. During the year ended 31 August 2024, travel and accomodatlon expenses totalling £1,657 were reimbursed or paid directly to 2 Trustee5 of the charitable group (2023 - £3, 721 to 11 Tniste8s). Included in the above were travel, accomodation and subsistence expenses reimbursed to 2 trustees of the parent charitable company totalling £1,657 (2023.. £2,151 to 5 Trustees). Page 34
SKILLS AND EDUCATION GROUP (A Company Llmltsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Intanglble as59ts Group Bespoke software Developrn Wabslte Goodwlll Total Cost At 1 September 2023 Addits"ons Disposals 406,441 183,975 (113,473) 40,214 17,863 374,993 155,478 1,232,970 376,232 2,054,618 733,548 (113,4731 At 31 August 2024 476.943 58,077 630,471 1,609,202 2,674,693 Amortlgatlon At 1 September 2023 Charge for the year 18,070 84.442 10,173 9,840 243,435 62,993 205,358 123,297 477.036 280,572 At 31 August 2024 85,315 20,013 306,428 328,655 740,411 Net book value At 31 August 2024 391,628 38,064 224,043 1,280,647 1,934,282 At 31 August 2023 388,371 30,041 131,558 1,027,612 1,577,582 Page 35
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Intangible assets (conllnued) Charfty Bespoke 8oftware W•bslt• Totsl Co•t At 1 September 2023 Addltions 17,189 1,178 189.084 83,377 206,273 84,555 At 31 August 2024 18.367 272,461 290,828 Amortlsation At 1 September 2023 Charge for the year 1.284 3,555 108,376 38.032 109,660 41,587 At 31 August 2024 4,839 146.408 161,247 Net book valua At 31 August 2024 13.528 126,053 139,581 At 31 August 2023 15,905 80, 708 96,613 Page 36
SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Tangible fixed assets Group Flxtures and Ilttlngs Offlco equlpment Computsr equlpment Prefab'd buildlng Property Totsl Cost or valuatlon At 1 September 2023 2,596.200 Additions 473,668 63,319 12.354 475 317,222 41,416 15,842 3,415.286 105,210 At 31 August 2024 2,596,200 536,987 12,829 358.638 15,842 3,520,496 Depreciation At 1 September 2023 1,047,977 Charge for the year 39,886 234,753 31,583 6.527 1.558 220,907 33.766 15,842 1,526,006 106,793 At 31 August 2024 1,087,863 266,336 8,085 254,673 15,842 1,632,799 Net book value At 31 August 2024 1,508,337 270.651 4,744 103,965 1,887,697 At 31 August 2023 1, 548, 223 238,915 5,827 96,315 1,889,280 Page 37
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Tangible fixed assets (continued) Charity Freehold Flxlures and property rittings Computer oqulprnent Prefab'd buildlng Total Cost or valuatlon At 1 September 2023 Additions 1,270,284 447,936 63,319 242,964 40,941 15,842 1,977,026 104.260 At 31 August 2024 1,270,284 511,265 283,905 15,842 2,081.286 Depreclatlon At 1 September 2023 Charge for the year 329,391 23,436 209,334 31,527 157,917 29,865 15,842 712.484 84.828 At 31 August 2024 362,827 240,861 187,782 15,842 797,312 Net book valua At 31 August 2024 917,457 270,394 96.123 1,283,974 At 31 August 2023 940,893 238, 602 85.047 1,264, 542 Group Property fixed assets conslst of freehold property V•ith a net book value of £917,457 (2023: £940,893) and long-term leasehold property wtth a net book value of £590,88012023'. £607,330). Page 38
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 16. Fixed asset Investments Llsled Invastments At 1 September 2023 Additions Disposals 351,947 31,849 (383,796) Net I0k value At 31 August 2023 351,947 Inve•tments In subsldlary companles Ll•ted Investments Totsl Charity Cost or valuatlon At 1 September 2023 Addttions Disposals 1,372,365 376,232 (35,661 351,947 31,849 1383,796) 1,724,312 408,081 (419N57) At 31 August 2024 1.712,936 1,712,936 Net book valu• At 31 August 2024 1.712,936 1,712,936 At 31 August 2023 1,372,365 351,947 1,724,312 Fixed asset investment additions relate to additional costs arlsing from the acquisition of BIIAB Qualifications Limited. Page 39
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SKILLS AND EDUCATION GROUP IA Company Limited by Guarantse NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 17. Stocks Group 2024 Group 2023 Finished good5 and goods for resale 29,573 113,900 Dabtors Group 2024 Gmup 2023 Charfty 2024 Chanly 2023 Du• withln one year Trade debtors Amounts owed by group undertakings Other debtors Called up share capital not paid Prepayments and accrued income 1,034,990 681,458 29,610 938,564 614 26,345 569,051 139,259 614 140,237 320.101 400.432 154,522 200.412 1.355.707 1.222, 129 1,123,310 935,067 Page 42
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 19. Credltors: Amounts falllng due wlthln one year Group 2024 Group 2023 Charlty 2024 Chanty 2023 Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred Income 605,581 558,964 158,992 1,432,955 134,349 124.355 61,183 114,442 695,887 64,591 425,530 20,450 540,109 135,685 544,440 206,484 427,073 74, 673 1,825,815 1,267, 194 1,911,834 1,320,900 Group 2024 Group 2023 Charlty 2024 Charity 2023 Deferred income at 1 September 2023 Resources deferred during the year Amounts released from previous periods 30.500 464.032 (30,500) 75,388 30, 500 (75,388) 3,215 38,957 (3,215) 46,580 3,215 (46,580) 464,032 30, 500 38,957 3,215 Deferred income represents monles recelved In advance for leamer registrations, memberships, annual centre fees, services and projeds. 20. Creditors: Amounts falllng due after more than one year Group 2024 Group 2023 Charlty 2024 Chanly 2023 other creditors 487.270 269,670 487,270 269,670 Page 43
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. Ststement of funds Statement of funds - current year Balance at 1 Sfrptember 2023 Galnsl Balance at 31 {LossosI August 2024 Income Expondlture Unrestrlctsd funds General funds - charitable company Skills and Education Group Awards- post acquisition reseNes 2.268,861 445,569 (1,274A59) 16,423 1.456,394 1,511,250 2,903,268 (2,764,711) 1,649.807 Skills and Educatlon Group Access BIIAB Qualifications Limited post aqcuisition reserves Skills and Education Group Acces5 - designated pension reseNe 766,601 464,732 {860,944 360,389 293.788 3,166,778 13,772,107 (311,541) {97,000} (503,000) (600,000 Quality Licence Scheme Limited 51.352 (51,352) 4,794,852 6,970,347 18,723,573) (486,577) 2,555,049 Page 44
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. statement of funds (continued) Statsment of funds - prlor year Balance at I September 2022 Balance at 31 August 2023 Gains/ (Losses) Income Expenditure Unrestricted funds General funds - charitable company Skills and Educatlon Group Awards - post acquisition reserves 1, 749, 791 920,053 (385,859) (15. 124) 2,268,861 1,660,918 1,996, 764 (2,146,432) 1,511,250 Skllls and Educatlon Group Access BIIAB Quallfications Limited - post aqcuisition reserves Skills and Education Group Access- designated pension reserve 920, 605 293,484 (447,488) 766,601 254, 685 2, 680,292 (2,641, 189) 293, 788 3.000 (100.000) (97,000) Quality Licence Scheme Limited 132,392 196,057 (277,097) 51,352 4,718,391 6,086, 650 (5,895,065) (115,124) 4, 794, 852 Page 45
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Summary of funds Summary of funds - current year Balance at 1 September 2023 Gainsl Balance at 31 (Losses) August 2024 Incom• Expendlturo General funds 4,794,852 6,970.347 (8.723,573) (486,5771 2,555,049 Summary of funds - prlor y8ar B81ance at I September 2022 Balance 8t 31 August 2023 G8insl (Losses) Income Expendlture General funds 4, 718,391 6,086,650 (5,895,065) (115,124) 4, 794, 852 23. Anatysls of net assets between fundg Analysis of net assets b8twe8n funds - current period Unre8tr1cled nds 2024 Total fund• 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges 1,887,697 1,887,697 1,934,282 1.934.282 1,846,155 1,646.155 (2,135,815) (2,135,815) (177,270) 1177.270) (600,000) (600,000) Total 2,555,049 2,555,049 Page 46
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 23. Analysls of net assets between funds (continued) Analysls of net assets b8tween funds - prlor period Unrestrict8d funds 2023 Restricted funds 2023 Total funds 2023 Tanglble fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due withln one year Creditors due in more than one year Provisions for liabilities and charges 1,889,280 1,577,582 351,947 2,609,907 (1,267, 194) (269, 670) (97,000) 1, 889,280 1.577,582 351,947 2, 609,907 (1,267, 194) (269,670) (97,000) 4, 794,852 4, 794, 852 Total 24. Reconclliatlon of net movement In funds to net cash flow from opèratlng activltles Group 2024 Group 2023 Net incomelexpenditure for the period (as per Statement of Flnancial Actlvlties) (1,736,803) 176,461 Adjustments for: Depreciation charges Amortisation charge5 Gainsl(losses) on investments Dividends, interests and rents from investments Loss on the disposal of fixed asset5 Decreasel(increase) in stocks Decreasel(increase) in debtors Increa5el(decrease) in creditors Defined benefft pension scheme FRS102 costs 106,793 280,572 (16,423) (14,863) 112,699 84,327 (133,578) 776,221 93, 123 151,899 15,124 (18,282) (73, 204) 184,091 (67,677) (3,000) Net cash provided byl(used In) operating activitie5 (541.055) 458,535 Page 47
SKILLS AND EDUCATION GROUP (A Company Llmitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 25. Analysls of cash and cash equivalents Group 2024 Group 2023 Cash in hand 260,875 1,273,878 Total cash and cash equlvalents 260,875 1,273,878 26. Analysis of changes in net debt At1 September 2023 At 31 August 2024 Cash flow8 Cash at bank and in hand 1,273,878 (1,013,003> 260,875 1,273,878 (1,013,003) 260,875 27. Pen81on commitments 2024 2023 Pension buyout liability 600,000 97,000 600,000 97,000 West Yorkshire Penslon Fund Skills and Education Group Access participated in the West Yorkshire Fund IWYPF), a multf-employer defined benefit scheme, until the final member of the scheme ceased in the period to 31 August 2023. Discussions wth West Yorkshire Pension Fund Vlith regards to the potential buyout value are ongoing, with the most recent available valuation of the buyout value provided by WYPF being £600,000 for an orphan exit. This valuation is dated 31 March 2024, and is at present the most reliable valuation available to Trustees for the potential buyout liability. In addition to negotiations with WYPF, the Trustees are in discussion the pension scheme guarantors, to determine whether some or all ofthe liability could be subsumed by the remaining 4 guarantors who are adively partiGipating in this process. The buyout value is included in these accounts at 31 August 2024 as the most reliable estimate of the liability to the charity at the time af signing off the accounts. It is possible that the liability will be much lower than £600,000, or no liability at all if this were to be subsumed by the guarantors. Page 48
SKILLS AND EDUCATION GROUP IA Company Umlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Operatlng lease commitments The Group and the Charity had no commitrnents under non-cancellable operating leases at 31 August 2024. 29. Relatod party transactions Skllls and Educatlon Group Awards During the year the charity recharged vRges and other costs to its subsidiary, totalling £1,275,485 (2023: £1,228,961). At the year end an amount of £1,432,955 (2022: £695,888) was owed by Skills and Education Group to Skills and Educab"on Group Awards. Skllls and Educatlon Group Access During the year the charity recharged wages and other costs to its subsidiary, totalling £414,970 (2023.. £125,016). At the year end an amount of £314,706 was owed by Ski115 and Educalion Group Access to Skills and Education Group (2023- £3,876). BIIAB Qualifications Limited During the year the charity recharged wages and other costs to its subsidiary, totalling £1,580,810 (2023.. £1,142,694). At the year end an amount of £623,858 (2023- £431,947) was owed by BIIAB Qualrfications Limited to Skills and Education Group. A Stott Advisory Services A G Stott, a trustee during the year, provlded additional advlsory seniices to the Skills and Education Group during the year. Payments of £15,000 (2023.. £Nil) were made during the year in relation to these seNi¢es, wth no amounts outstanding at the year end (2023.. £Nill. Yultan Y Mellor Y Y Mellor, a trustee during the year, provided additional consultancy senlices to the Skills and Education Group during the year. Payments of £23,798 (2023: £Nil) were made during the year in relation to these Services, with no amounts outstanding at the year end (2023.. £Nil). Leicester College V Hancock, a trustee until 18 October 2024, is also CEO and Principal of Leicester College. During the year income of £7,530 (2023.. £4,875) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £2,860 {2023= £25). York College L Probert, a trustee until 20 October 2023. is also CEO and Principal of York College. During the year income of £10,726 (2023: £5,500) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £Nil (2023.. £Nil). Nottingham College J Smith, a trustee, is also CEO and PTinapal of Nottingham College. During the year income of £18,360 (2023.. £4,545) was received from the College for the provision of charitable services. There are amounts outstanding at the year end of £3,000 (2023.. £2401. Buxton and Leek College J Tildsley, a trustee unts-123 April 2024. is also a Principal of Buxton and Leek College. During the year income of £1,920 {2023.' £3,800) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £960 (2023.. £Nil). Page 49
SKILLS AND EDUCATION GROUP (A Company Limltsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 29. Related party transactions (contlnued) Burton and South Derbyshlrn College J Beaty, a trustee until 10 July 2024, is also a Principal of Burton and South Derbyshire College. During the year income of £2,320 (2023- £37) was received from the College for the provision of charitable services, and expenditure of £3,991 (2023.. £210) incurred for the same purpose. There are amounts outstanding at the year end of £960 (2023: £Nil). Action Houslng and Support A G Stott, a trustee during the year, is also CEO of Action Housing and Support. During the year income of £6,314 (2023.. £8,281) was received for the provision of charitable services. There are amounts outstanding at the year end of £Nil. (2023: £727). Bedford Collage Y Koursis, a trustee, is also a director of Bedford College. During the year income of £960 (2023- £Nil) was received for the provision of charitable service8, and expenditure of £4,000 (2023: £Nil) incurred for the same purpose. There are amounts outstanding at the year end of £960 (2023.. £Nil). Inspire Educatlon Group R Nicholls, a trustee, is also CEO of Inspire Education Group. During the year income of £13,590 (2023.. £Nil) was received for the provision of charitable services. There are amount5 outstanding at the year end of £2,060 (2023.. £Nil). Page 50
SKILLS AND EDUCATION GROUP IA Company Umited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies Icontlnued) 2.7 Intanglble assots and amortlsatlon 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. Intsngible 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 irnpairment losses. 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 Website Bespoke software Goodwill not depreclated 25 % straight line 20 % straight line 10 UA straight line 2.8 Tangible fixed assets and deprgclatlon Tangible fixed assets costing £500 or more are capitslised and recognised when future economlc 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 condltlon 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 5traight-line method. Depreciation is provided on the following bases.. Property Fixtures and ffttings Office equipment Computer equipment other fixed assets 1.15 % straight line 10_25¢hl straight line 20.330A straight line 20.330 straight line 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 les5 impaimient. Investment gains and losses, vthether realised or unrealised, are combined and presented as 'Gainsl(Losses) on investments. in the Consolidated SLitement of Financial Activities. Investments in subsidiaries are valued at cost less provision for impaimient. Page 26
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantea) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policie8 Icontlnued) 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 tsx recoverable in relation to Investrnent income is recognised at the Ilme the Investment income is receivable. Other Income is recognised in the perlod In whlch it is receivable and to the extent the goods have been provided or on completion of the seTVlCe. 2A Expenditure Expenditure is recogni5ed 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 activty are made up of the total of direct cost5 and shared costs, inciuding support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which Gontribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activits'es 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 actlvities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. Ail expenditure is incluslve of irrecoverable VAT. 2.5 Research and d•v•lopmont Development costs are capitslised withln Intangible assets where they can be identlfied with specific produd or project anticipated to produrk 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 vthen 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 yth whom the funds are deposited. Page 25
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 General Infomiation 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 cUencY of the entity. Accounting policles 2.1 Basis of preparatlon of financlal Statements The financial statements have been prepared in accordance th 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 Companie5 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 undertaking$. The results of the subsidiaries are consolidated on a line by line basis. The Charty has taken advantage of the exemptlon 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 Golng concem The financial statements have been prepared on a going concern basis. At the year end, the Group reported net current liabilities of £179,660, which necessitated a detailed assessment by the Trustees with external support a5 to whether the Group and its subsidiary entits.es can continue to operate for the foreseeable future. After making appropriate enquiries, the Trustees have a reasonable expectation that the Group ha5 adequate resources to continue in operational existence for the foreseeable future. While the past year has presented significant challenges which did give rise to material uncertainties, the organisation is showing positive signs of recovery. Under new leadership, a number of strategic operational and financial decisions have been taken to course-correct and stsbilise the Group's activities. The organisation is well posits-oned, with sufficient resources and a clear strategic plan, to mitigate and navigate these challenges. The Trustees have reviewed the Group's financial position, including the level of funds held, post year-end results, and the projected income and expenditure for a period of at least 12 months from the date of approving these financial statements. Based on these forecasts, which indicate a retum to positive EBITDA, the Trustees are confident that the Group remains a going concem. For this reason, the Trustees continue to adopt the going conrn basis in preparing the financial statements. Page 24
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantse) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Cash flows from operating actlvltle8 Net cash used in operating activities (541,055) 458.535 Cash flo from Investlng actlviti•s Dividends, interests and rents from investments Purchase of intangible assets Purchase of tangible fixed assets Proceed5 from sale of investments Purchase of investments 14,863 18,282 1733,548) (379,665) (105,210) (269,921) 383,796 76,518 (31,849) (78, 700) Net cash used in investing actlvltlos (471,948) 1633A86) Cash flows from financing actlvltles Net cash provlded by flnancing actlvities Change In cash and cash oqulvalonts In the year Cash and cash equivalents at the beginning ofthe year 11,013,003) 1174,951} 1,273,878 1,448,829 Cash and cash equlvalents at the end of the year 260,875 1,273,878 The notes on pages 24 to 50 form part of these financial statements Page 23
SKILLS AND EDUCATION GROUP IA Company Limitsd by Guarantee) REGISTERED NUMBER: 02640936 CHARITY BALANCE SHEET ICONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Charlty funds Restricted fvnds Unrestricted funds 21 21 1,866,156 2,474,218 Total funds 1,866,156 2,474,218 The Charitys net movement in funds for the year was £(608,062) (2023 - £611,292). The Trustees acknowledge their responsibilities lor complying with the requirements of the Act with respect to accounting records and preparation of financial ststements. The financial statements were approved and authorised for issue by the Trustees on and signed on their behalf by.. J Smlth (Chair of Trustees) The notss on pages 24 to 50 fomi part of these financial statements. Page 22
SKILLS AND EDUCATION GROUP (A Company Limitad by Guarantea) REGISTERED NUMBER: 02640936 CHARITY BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Note Flxed assets Intangible assets Tangible assets Investments 14 15 16 139,581 1.283,974 1,712,936 96,613 1,264,542 1,724,312 3.136,491 3,085,467 Current o580ts Debtors Cash at bank and in hand 18 1,123,310 5,459 935,067 44,254 1.128,769 979,321 Credttors.. amounts falllng due within one year 19 (1,911,834) (1,320, 900) Not curront Ilabllltigs 1783,065) (341,579) Total assets legs currant liablliti09 2,353,428 2, 743,888 Creditors.. amounts falling due after more than one year 20 (487,2701 (269,670) Net assets excludlng penslon asset 1,866,156 2,474,218 Total net as$ots 1,866,156 2,474,218 Page 21
SKILLS AND EDUCATION GROUP (A Company Llmltad by Guarantee) REGISTERED NUMBER: 02640936 CONSOUDATED BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Charity funds Restricted funds Unrestricted funds 21 21 2.555,049 4. 794,852 Total funds 2,555,049 4, 794,852 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 and signed on their behalf by: J Smith (Chair of Trustees) The notes on pages 24 to 50 form part of these financial ststements. Page 20
SKILLS AND EDUCATION GROUP (A Company Limltsd by Guarantso) REGISTERED NUMBER: 02640936 CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Flxed assets Intangible assets Tangible assets Investments 14 15 16 1,934,282 1,887,697 1,577,582 1,889,280 351,947 3,821,979 3,818,809 Current a$80ts Stocks Debtors Cash at bank and in hand 17 18 29,573 1,355,707 260.875 113,900 1,222, 129 1,273,878 1.646,155 2,609,907 Creditors.. amounts falling due within one year 19 (1,825,816) (1,267, 194) Net currnnt Ilabllltlos l assots (179,660) 1,342, 713 Total a880ts loss current liabilitlas 3,642,319 5, 161,522 Creditors.. amounts falllng due after more than one year 20 (487,270 (269,670) Not assets excludlng pension Ilablllty Defined benefit pension scheme liabilty 3,155,049 (600,0001 4,891,852 (97,000) Totsl net assets 2,555,049 4, 794,852 Page 19
SKILLS AND EDUCATION GROUP IA Company Limlted by Guarantaa) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Unre5trlcted funds 2024 Total fund9 2024 Total funds 2023 Note Income from: Charitable activities 3.721,001 3,162,229 14,863 72,254 3,721,001 3.162,229 14,863 72,254 3, 151,534 2.876,349 18,282 40,485 Other trading activities Investments Other income Total Income 6,970,347 6,970,347 6,086,650 Expenditure on: Raising funds Charitable activities 3,772,107 4,951,466 3,772,107 4.951,466 2, 641,879 3, 253, 186 Total expenditure 8,723,573 8.723,573 5, 895,065 Net lexpendlture)Ilncome before not gainslllos8es) on Investments Net gainsl(losses) on investments N8t movement In funds before other rncognlsed galnsl(losses) 11.753.226) (1,753,226) 16,423 16,423 191,585 (15,124) (1,736,803) {1,736.803) 176,461 Other recognlsed galnsl(losses): Derecognition of pension asset Aduarial gainsl{losses) on defined benefit pension scheme liability 70,000 1503.000) 1503,000 {170,000) Net movement in funds 12,239.803} 12,239,803 76,461 Reconclllation of funds: Total funds brought forward Net movement in funds 4,794,852 {2,239,803) 4,794,852 (2,239.803) 4,718,391 76,461 Total funds carrled forward 2.555.049 2,555,049 4, 794,852 The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 24 to 50 fomi part of these financial statement5. Page18
SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) 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 th8 audit of the financial statements Is located on the Financial Reporting Council's website at: w.frc.or .ukJauditor res onsibilities. This description forms part of our Auditors, Report. Uge of our report This report is made solely to the charitable companys members, a5 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 companys 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 a55ume responsibility to anyone other than the charitable company and its member5, as a body, for our audit work, for this report, or for the opinions we have fomied. Robert Andorson Bsc FCA Isenlor Statutory Audltor) for and on behalf of Streets Audit LLP Tower House Lucy Tower Street Lincoln LN1 1XW Date: Page 17
SKILLS AND EDUCATION GROUP (A Company Llmltsd by Guarantee INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED) Auditors, responsiblllties for the audit of the financial statements Our objectives are to obtain reasonable assurance about vthether 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 flnancial sL1tements. Irregularits'es, including fraud, are instances of non-compliance with lavrfs and regulations. We design procedures In line with our responsibilities, outlined above, to detect material misstatements in respect of iegUlaTI.e5, including fraud. The extent to vthlch our procedures are capable of detecting irregularitles, including fraud is detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commerual knowledge and experience of the company and sector in which it operales., we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011, Ofqual and Qualifications Wales regulations, Council for the Curriculum, Examinations & Assessment ICCEA) regulations, employment law, General Data Protection Regulation (GDPR), Health & Safety and taxation legislation,. we assessed the extent of compliance wth the laws and regulations identified above through making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to materlal mlsstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud. their knowledge of actual, suspected and alleged fraud., and considering the internal controls in place to mitigate risks of fraud and non-compliance wlth lavts and regulations. To address the risk of fraud through management bia3 and override of controls, we: performed analyts.cal procedure5 to identfy any unusual or unexpected relationships; tested joumal entries to identify unusual transactions., assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias,. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included. but were not limited to.. agreeing financial statement disclosures to underlying supporting documentation., reading the minutes of meetings of those charged with govemance., and enquiring of management as to actual and potential litigation and daims. Page 16
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP (CONTINUED Rosponslbilitles of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustee5 (who are also the directors of the charrtable company for the purposes of company law) are responsible for the preparation of the ffinancial statements and for being satisfied that they give a true and fair view, and for such internal control as Ihe 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 concem and using the going concem 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. Page15
SKILLS AND EDUCATION GROUP (A Company Limlted by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP {CONTINUED) Other Infomiatlon The other information comprises the infomiation included in the Annual Report other than the financial statements and our Auditors. Report thereon. The Trustees are responsible for the other information contsined 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 infomiation 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 yrk VR have performed, we conclude that there is a material misststement of thls other information, V are required to report that fact. We have nothlng to report In thls regard. Oplnlon on other matters prescrlbed by tha Companles Act 2006 In our opinion, based on the Vrk undertaken in the course of the audit: the information given in the Trustees. Report for the financial year for lch the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In the Ilght of our knowledge and understanding of the charitsble company and Its environment obtsined in Ihe course of the audit, we have not identified material misstatements in the Trustees, 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.. the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Page 14
SKILLS AND EDUCATION GROUP {A Company Limitsd by Guarant88) 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 tts subsidiaries (the 'group') for the year ended 31 August 2024 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.. give a true and fair view of the state of the Group's and ofthe parent charitable company's affairs as at 31 August 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended; have been properly prepared in accordance vlth United Kingdom Generally Accepted Accounting Practice., and have been prepared In accordance with the requirements of the Companies Act 2006. Ba819 for opinion We conducted our audit in accordance with Intemational 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 wth 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 basls for our opinion. Conclusions relatlng to golng concern In auditing the financial statements, we have concluded that the Tru5tees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 ompanls ability to continue as a going concern for a period of at least trNelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Twstees with respect to going concern are described in the relevant sections of this report. Page 13
SKILLS AND EDUCATION GROUP {A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting pollcies (continued) 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 indudes all direct costs and an appropriate proportion of fixed and variable overheads. 2.11 Dobtor8 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 aGqUi5its-on or opening of the deposit or similar account. 2.13 Liabilltles 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 seNices 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 Flnanclal Instruments The Group only has financial assets and financlal liabilities of a klnd that qualify as basic flnanclal instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value wth the exception of bank loans which are subsequently measured at amortised c05t using the effective interest method. 2.15 Ponsions A charitable company wthin the group (Skills and Education Group Access) previously contributed to the West Yorkshire Pension Scheme (WYPS). a defined benefit scheme, at rates set by the scheme's actuaries. The charity is no longer an active member of the scheme, and therefore provision for the orphan exit charge from the pension scheme is recogni5ed in these financial statements. The charity also contributes to defined contribution schemes for ceriain employees all of which are separately administered from the charity and the charge recognised in the Ststement of Financial Activities. Page 27
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (contlnued 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. Crltlcal accounting e8tlmates and areas of Judgment Estimates and judgments are continually evaluated and a based on historical experience and other factors, Including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estlmates and assumptions: The Charfty makes estimates and assumptions concerning the fijture. The resulting accounting estlmates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustrnent to the carrying amounts of assets and liabilsties within the next financial year are discussed below. The present value of the l+VYPS defined liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in detennining the net costs or income for pensions include the discount rate. Any changes in these assumptions Vlill impact the carrying amount of the liabilty. Income from charitable activities Unr8strlcted funds 2024 Total funds 2024 Total funds 2023 Learner recognition Access to HE Project. membership and CPD 2,933,668 388,066 399,267 2,933.668 388,066 399,267 2,679,318 252,280 219,936 Total 2024 3,721,001 3,721.001 3. 151,534 Total 2023 3, 151,534 3, 151,534 Page 28
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Income from other trading act5vities Income from non charltable trading acllvlties Unre8trlcted funds 2024 Total funds 2024 Total funds 2023 Income from trading subsidiaries 3,162,229 3,162,229 2.876,349 rotal 2023 2, 876,349 2,876,349 Investment Income Unrn8tricted funds 2024 Total funds 2024 Tot81 lunds 2023 Dividends receivable from11sted investments Interest receivable - local cash Interest recelvable - other 9,691 2,833 2,339 9,691 2,833 2.339 13,507 4, 775 Total 2024 14,863 14,863 18,282 Total 2023 18,282 18,282 Other incomlng rasourcos Unrestrlctsd funds 2024 Totsl funds 2024 Total funds 2023 Lettings, admin fees and other income 72,254 72.254 40.485 Total 2023 40,485 40,485 Page 29
SKILLS AND EDUCATION GROUP (A Company Limlted by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Expendlture on raising funds 2024 2023 Cost of sales - BIIAB Cost of sales- QLS Administration expenses - BIIAB Administration expenses - QLS Depreciation - BIIAB Salary recharge8- BIIAB Salary recharges - QLS 449,732 445, 744 8,609 984,055 72,391 1,294 1,066,081 63, 705 1,740,207 1,558 1,580,610 3,772,107 2,641,879 Analysis of exponditure on charltsble actlvltles Summary by fund typo Unrestricted fund• 2024 Total 2024 Total 2023 Learner recognitlon Access to HE Project, membership and CPD 3,504,807 746,865 699,794 3,504,807 746,865 699.794 2,734,419 359, 097 159, 670 Totsl 2024 4,951,466 4,951,466 3,253, 186 Total 2023 3, 253, 186 3,253, 186 Page 30
SKILLS AND EDUCATION GROUP (A Company Llmited by Guarantse NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Analysis of 8xpenditur8 by activities Activiti undertaken directly 2024 Support costs Total fund• 2024 Total funds 2023 2024 Learner recognition Access to HE Project, membership and CPD 1,125,298 280,341 257,239 2,379,511 466,524 442,555 3,504807 746,865 699,794 2,734,419 359,097 159,670 Total 2024 1,662,876 3,288,590 4.951,466 3,253, 186 Total 2023 1,176,433 2,076, 753 3,253, 186 Analysls of dlrect costs ProJe¢( rnembfrrship and CPD 2024 Loamar recognlllon Acce88 to HE 2024 2024 Total fund8 2024 Total funds 2023 Staff costs Moderator and examiner costs Centre costs CPD and prolect expenses Certificates QAA registration Foundation activities 642,967 262,037 24.066 153,953 89,339 92,692 889.612 351,376 24,065 164,547 85.157 37,049 111,070 611,109 306,588 9,653 48,301 64, 245 33,310 103.227 164,547 85,157 37.049 111,070 Total 2024 1,126,296 280,341 257,239 1.662,876 1, 176,433 Total 2023 960,288 159,372 56, 773 1, 176,433 Page 31
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Analysls of oxpondlture by activities (contlnued Analysis of support costs Project, membership and CPD 2024 Learner recognlllon Ac¢es¥ to HE 2024 2024 Total funds 2024 Total funds 2023 Staff costs Depreciation Bad debt Other staff Costs Qualification development Administration Communications and marketing Donations Premises ICT costs Professional fees Bank charges Irrecoverable VAT Govemance costs 964,451 236,769 27,979 302,358 80,157 94,888 131,261 58,721 29,789 201,622 169,033 7,818 50,208 24,457 230,930 49,867 52,834 21,933 139,038 72,959 1,334,419 369,595 80.813 349.033 87,033 104,351 169,619 67,499 48,504 243.668 199,254 9,827 202,579 32,396 913,664 227,864 65 267,382 28,835 85,830 136,353 18,176 102,699 159,367 43,389 15,478 65,015 12,636 24,742 6,876 1,301 17,055 8,778 1,291 5,331 12,805 1,641 147,815 2,923 8,182 21,303 17,424 36,715 17,416 368 4,556 5.016 Total 2024 2,379,511 466,524 442,555 3,288,S90 2, 076, 753 Tot812023 1,774, 131 199, 725 102,897 2, 076. 753 11. Auditors. remuneratlon 2024 2023 Fees payable to the Charitys auditor for the audit of the Charitls annual accounts 24,000 24,000 Page 32
SKILLS AND EDUCATION GROUP {A Company Llmlted by Guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 12. Stsff costs Group - 2024 Group 2023 Wage5 and Salaries costs Social security costs Pension costs 3,160,437 322.837 243.408 2, 688,826 249,269 265,634 3,726,682 3.203, 729 During the year a total of £50,963 (2023.. £Nil) vms paid in respect of contractual termination and redundancy payments, relating to 8 employees (2023: Nill. During the year a further £2,506 (2023: £2,506) pald in respect of contractual temiinatlon payments which represent 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. The average number of persons employed by the charltable company during the year was as foll0v. Group - 2024 Group - 2023 Charitable activities Administration Management 60 23 13 53 12 13 96 78 The number of employees whose employee benefit5 (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 In the band £60,001- £70,000 In the band £70,001- £80,000 In the band £90,001- £100,000 In the band £140,001- £150,000 In the band £150,001- £160,000 The total remuneration and benefits received by key management personnel was £377,684 (2023: £377,922). The trustees consider the key management personnel to be the Chief Executive Officer, Deputy Chief Executive Officer and Chief Operating Officer. Page 33
SKILLS AND EDUCATION GROUP (A Company Llmited by Guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Trustees. rnmunoration and expenses During the year, one or more Trustees has been paid remuneration or has receNed other beneffts from an employment Viith the Charity for their role as Chief Executive Officer. The value of Trustees, remuneration and other benefits was as follo. 2024 2023 P A Eeles Remuneration Penslon contributions paid 157,357 30.391 144,003 29,543 During the year, retirement beneffts Vre accruing to 1 Trustees (2023 - 1) in respect of defined benefit pension schemes. During the year ended 31 August 2024, travel and accomodatlon expenses totalling £1,657 were reimbursed or paid directly to 2 Trustee5 of the charitable group (2023 - £3, 721 to 11 Tniste8s). Included in the above were travel, accomodation and subsistence expenses reimbursed to 2 trustees of the parent charitable company totalling £1,657 (2023.. £2,151 to 5 Trustees). Page 34
SKILLS AND EDUCATION GROUP (A Company Llmltsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Intanglble as59ts Group Bespoke software Developrn Wabslte Goodwlll Total Cost At 1 September 2023 Addits"ons Disposals 406,441 183,975 (113,473) 40,214 17,863 374,993 155,478 1,232,970 376,232 2,054,618 733,548 (113,4731 At 31 August 2024 476.943 58,077 630,471 1,609,202 2,674,693 Amortlgatlon At 1 September 2023 Charge for the year 18,070 84.442 10,173 9,840 243,435 62,993 205,358 123,297 477.036 280,572 At 31 August 2024 85,315 20,013 306,428 328,655 740,411 Net book value At 31 August 2024 391,628 38,064 224,043 1,280,647 1,934,282 At 31 August 2023 388,371 30,041 131,558 1,027,612 1,577,582 Page 35
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. Intangible assets (conllnued) Charfty Bespoke 8oftware W•bslt• Totsl Co•t At 1 September 2023 Addltions 17,189 1,178 189.084 83,377 206,273 84,555 At 31 August 2024 18.367 272,461 290,828 Amortlsation At 1 September 2023 Charge for the year 1.284 3,555 108,376 38.032 109,660 41,587 At 31 August 2024 4,839 146.408 161,247 Net book valua At 31 August 2024 13.528 126,053 139,581 At 31 August 2023 15,905 80, 708 96,613 Page 36
SKILLS AND EDUCATION GROUP (A Company Llmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Tangible fixed assets Group Flxtures and Ilttlngs Offlco equlpment Computsr equlpment Prefab'd buildlng Property Totsl Cost or valuatlon At 1 September 2023 2,596.200 Additions 473,668 63,319 12.354 475 317,222 41,416 15,842 3,415.286 105,210 At 31 August 2024 2,596,200 536,987 12,829 358.638 15,842 3,520,496 Depreciation At 1 September 2023 1,047,977 Charge for the year 39,886 234,753 31,583 6.527 1.558 220,907 33.766 15,842 1,526,006 106,793 At 31 August 2024 1,087,863 266,336 8,085 254,673 15,842 1,632,799 Net book value At 31 August 2024 1,508,337 270.651 4,744 103,965 1,887,697 At 31 August 2023 1, 548, 223 238,915 5,827 96,315 1,889,280 Page 37
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Tangible fixed assets (continued) Charity Freehold Flxlures and property rittings Computer oqulprnent Prefab'd buildlng Total Cost or valuatlon At 1 September 2023 Additions 1,270,284 447,936 63,319 242,964 40,941 15,842 1,977,026 104.260 At 31 August 2024 1,270,284 511,265 283,905 15,842 2,081.286 Depreclatlon At 1 September 2023 Charge for the year 329,391 23,436 209,334 31,527 157,917 29,865 15,842 712.484 84.828 At 31 August 2024 362,827 240,861 187,782 15,842 797,312 Net book valua At 31 August 2024 917,457 270,394 96.123 1,283,974 At 31 August 2023 940,893 238, 602 85.047 1,264, 542 Group Property fixed assets conslst of freehold property V•ith a net book value of £917,457 (2023: £940,893) and long-term leasehold property wtth a net book value of £590,88012023'. £607,330). Page 38
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 16. Fixed asset Investments Llsled Invastments At 1 September 2023 Additions Disposals 351,947 31,849 (383,796) Net I0k value At 31 August 2023 351,947 Inve•tments In subsldlary companles Ll•ted Investments Totsl Charity Cost or valuatlon At 1 September 2023 Addttions Disposals 1,372,365 376,232 (35,661 351,947 31,849 1383,796) 1,724,312 408,081 (419N57) At 31 August 2024 1.712,936 1,712,936 Net book valu• At 31 August 2024 1.712,936 1,712,936 At 31 August 2023 1,372,365 351,947 1,724,312 Fixed asset investment additions relate to additional costs arlsing from the acquisition of BIIAB Qualifications Limited. Page 39
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SKILLS AND EDUCATION GROUP IA Company Limited by Guarantse NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 17. Stocks Group 2024 Group 2023 Finished good5 and goods for resale 29,573 113,900 Dabtors Group 2024 Gmup 2023 Charfty 2024 Chanly 2023 Du• withln one year Trade debtors Amounts owed by group undertakings Other debtors Called up share capital not paid Prepayments and accrued income 1,034,990 681,458 29,610 938,564 614 26,345 569,051 139,259 614 140,237 320.101 400.432 154,522 200.412 1.355.707 1.222, 129 1,123,310 935,067 Page 42
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 19. Credltors: Amounts falllng due wlthln one year Group 2024 Group 2023 Charlty 2024 Chanty 2023 Trade creditors Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred Income 605,581 558,964 158,992 1,432,955 134,349 124.355 61,183 114,442 695,887 64,591 425,530 20,450 540,109 135,685 544,440 206,484 427,073 74, 673 1,825,815 1,267, 194 1,911,834 1,320,900 Group 2024 Group 2023 Charlty 2024 Charity 2023 Deferred income at 1 September 2023 Resources deferred during the year Amounts released from previous periods 30.500 464.032 (30,500) 75,388 30, 500 (75,388) 3,215 38,957 (3,215) 46,580 3,215 (46,580) 464,032 30, 500 38,957 3,215 Deferred income represents monles recelved In advance for leamer registrations, memberships, annual centre fees, services and projeds. 20. Creditors: Amounts falllng due after more than one year Group 2024 Group 2023 Charlty 2024 Chanly 2023 other creditors 487.270 269,670 487,270 269,670 Page 43
SKILLS AND EDUCATION GROUP (A Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. Ststement of funds Statement of funds - current year Balance at 1 Sfrptember 2023 Galnsl Balance at 31 {LossosI August 2024 Income Expondlture Unrestrlctsd funds General funds - charitable company Skills and Education Group Awards- post acquisition reseNes 2.268,861 445,569 (1,274A59) 16,423 1.456,394 1,511,250 2,903,268 (2,764,711) 1,649.807 Skills and Educatlon Group Access BIIAB Qualifications Limited post aqcuisition reserves Skills and Education Group Acces5 - designated pension reseNe 766,601 464,732 {860,944 360,389 293.788 3,166,778 13,772,107 (311,541) {97,000} (503,000) (600,000 Quality Licence Scheme Limited 51.352 (51,352) 4,794,852 6,970,347 18,723,573) (486,577) 2,555,049 Page 44
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. statement of funds (continued) Statsment of funds - prlor year Balance at I September 2022 Balance at 31 August 2023 Gains/ (Losses) Income Expenditure Unrestricted funds General funds - charitable company Skills and Educatlon Group Awards - post acquisition reserves 1, 749, 791 920,053 (385,859) (15. 124) 2,268,861 1,660,918 1,996, 764 (2,146,432) 1,511,250 Skllls and Educatlon Group Access BIIAB Quallfications Limited - post aqcuisition reserves Skills and Education Group Access- designated pension reserve 920, 605 293,484 (447,488) 766,601 254, 685 2, 680,292 (2,641, 189) 293, 788 3.000 (100.000) (97,000) Quality Licence Scheme Limited 132,392 196,057 (277,097) 51,352 4,718,391 6,086, 650 (5,895,065) (115,124) 4, 794, 852 Page 45
SKILLS AND EDUCATION GROUP (A Company Limited by Guarantso) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 22. Summary of funds Summary of funds - current year Balance at 1 September 2023 Gainsl Balance at 31 (Losses) August 2024 Incom• Expendlturo General funds 4,794,852 6,970.347 (8.723,573) (486,5771 2,555,049 Summary of funds - prlor y8ar B81ance at I September 2022 Balance 8t 31 August 2023 G8insl (Losses) Income Expendlture General funds 4, 718,391 6,086,650 (5,895,065) (115,124) 4, 794, 852 23. Anatysls of net assets between fundg Analysis of net assets b8twe8n funds - current period Unre8tr1cled nds 2024 Total fund• 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Provisions for liabilities and charges 1,887,697 1,887,697 1,934,282 1.934.282 1,846,155 1,646.155 (2,135,815) (2,135,815) (177,270) 1177.270) (600,000) (600,000) Total 2,555,049 2,555,049 Page 46
SKILLS AND EDUCATION GROUP IA Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 23. Analysls of net assets between funds (continued) Analysls of net assets b8tween funds - prlor period Unrestrict8d funds 2023 Restricted funds 2023 Total funds 2023 Tanglble fixed assets Intangible fixed assets Fixed asset investments Current assets Creditors due withln one year Creditors due in more than one year Provisions for liabilities and charges 1,889,280 1,577,582 351,947 2,609,907 (1,267, 194) (269, 670) (97,000) 1, 889,280 1.577,582 351,947 2, 609,907 (1,267, 194) (269,670) (97,000) 4, 794,852 4, 794, 852 Total 24. Reconclliatlon of net movement In funds to net cash flow from opèratlng activltles Group 2024 Group 2023 Net incomelexpenditure for the period (as per Statement of Flnancial Actlvlties) (1,736,803) 176,461 Adjustments for: Depreciation charges Amortisation charge5 Gainsl(losses) on investments Dividends, interests and rents from investments Loss on the disposal of fixed asset5 Decreasel(increase) in stocks Decreasel(increase) in debtors Increa5el(decrease) in creditors Defined benefft pension scheme FRS102 costs 106,793 280,572 (16,423) (14,863) 112,699 84,327 (133,578) 776,221 93, 123 151,899 15,124 (18,282) (73, 204) 184,091 (67,677) (3,000) Net cash provided byl(used In) operating activitie5 (541.055) 458,535 Page 47
SKILLS AND EDUCATION GROUP (A Company Llmitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 25. Analysls of cash and cash equivalents Group 2024 Group 2023 Cash in hand 260,875 1,273,878 Total cash and cash equlvalents 260,875 1,273,878 26. Analysis of changes in net debt At1 September 2023 At 31 August 2024 Cash flow8 Cash at bank and in hand 1,273,878 (1,013,003> 260,875 1,273,878 (1,013,003) 260,875 27. Pen81on commitments 2024 2023 Pension buyout liability 600,000 97,000 600,000 97,000 West Yorkshire Penslon Fund Skills and Education Group Access participated in the West Yorkshire Fund IWYPF), a multf-employer defined benefit scheme, until the final member of the scheme ceased in the period to 31 August 2023. Discussions wth West Yorkshire Pension Fund Vlith regards to the potential buyout value are ongoing, with the most recent available valuation of the buyout value provided by WYPF being £600,000 for an orphan exit. This valuation is dated 31 March 2024, and is at present the most reliable valuation available to Trustees for the potential buyout liability. In addition to negotiations with WYPF, the Trustees are in discussion the pension scheme guarantors, to determine whether some or all ofthe liability could be subsumed by the remaining 4 guarantors who are adively partiGipating in this process. The buyout value is included in these accounts at 31 August 2024 as the most reliable estimate of the liability to the charity at the time af signing off the accounts. It is possible that the liability will be much lower than £600,000, or no liability at all if this were to be subsumed by the guarantors. Page 48
SKILLS AND EDUCATION GROUP IA Company Umlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Operatlng lease commitments The Group and the Charity had no commitrnents under non-cancellable operating leases at 31 August 2024. 29. Relatod party transactions Skllls and Educatlon Group Awards During the year the charity recharged vRges and other costs to its subsidiary, totalling £1,275,485 (2023: £1,228,961). At the year end an amount of £1,432,955 (2022: £695,888) was owed by Skills and Education Group to Skills and Educab"on Group Awards. Skllls and Educatlon Group Access During the year the charity recharged wages and other costs to its subsidiary, totalling £414,970 (2023.. £125,016). At the year end an amount of £314,706 was owed by Ski115 and Educalion Group Access to Skills and Education Group (2023- £3,876). BIIAB Qualifications Limited During the year the charity recharged wages and other costs to its subsidiary, totalling £1,580,810 (2023.. £1,142,694). At the year end an amount of £623,858 (2023- £431,947) was owed by BIIAB Qualrfications Limited to Skills and Education Group. A Stott Advisory Services A G Stott, a trustee during the year, provlded additional advlsory seniices to the Skills and Education Group during the year. Payments of £15,000 (2023.. £Nil) were made during the year in relation to these seNi¢es, wth no amounts outstanding at the year end (2023.. £Nill. Yultan Y Mellor Y Y Mellor, a trustee during the year, provided additional consultancy senlices to the Skills and Education Group during the year. Payments of £23,798 (2023: £Nil) were made during the year in relation to these Services, with no amounts outstanding at the year end (2023.. £Nil). Leicester College V Hancock, a trustee until 18 October 2024, is also CEO and Principal of Leicester College. During the year income of £7,530 (2023.. £4,875) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £2,860 {2023= £25). York College L Probert, a trustee until 20 October 2023. is also CEO and Principal of York College. During the year income of £10,726 (2023: £5,500) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £Nil (2023.. £Nil). Nottingham College J Smith, a trustee, is also CEO and PTinapal of Nottingham College. During the year income of £18,360 (2023.. £4,545) was received from the College for the provision of charitable services. There are amounts outstanding at the year end of £3,000 (2023.. £2401. Buxton and Leek College J Tildsley, a trustee unts-123 April 2024. is also a Principal of Buxton and Leek College. During the year income of £1,920 {2023.' £3,800) was received from the College for the provision of charitable services. There were amounts outstanding at the year end of £960 (2023.. £Nil). Page 49
SKILLS AND EDUCATION GROUP (A Company Limltsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 29. Related party transactions (contlnued) Burton and South Derbyshlrn College J Beaty, a trustee until 10 July 2024, is also a Principal of Burton and South Derbyshire College. During the year income of £2,320 (2023- £37) was received from the College for the provision of charitable services, and expenditure of £3,991 (2023.. £210) incurred for the same purpose. There are amounts outstanding at the year end of £960 (2023: £Nil). Action Houslng and Support A G Stott, a trustee during the year, is also CEO of Action Housing and Support. During the year income of £6,314 (2023.. £8,281) was received for the provision of charitable services. There are amounts outstanding at the year end of £Nil. (2023: £727). Bedford Collage Y Koursis, a trustee, is also a director of Bedford College. During the year income of £960 (2023- £Nil) was received for the provision of charitable service8, and expenditure of £4,000 (2023: £Nil) incurred for the same purpose. There are amounts outstanding at the year end of £960 (2023.. £Nil). Inspire Educatlon Group R Nicholls, a trustee, is also CEO of Inspire Education Group. During the year income of £13,590 (2023.. £Nil) was received for the provision of charitable services. There are amount5 outstanding at the year end of £2,060 (2023.. £Nil). Page 50