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2022-03-31-accounts

The National Examination Board in Occupational Safety and Health

Annual Report and Financial Statements for the year ended 31 March 2022

Registered Office

Dominus Way Meridian Business Park Leicester LE19 1QW

Telephone: +44 (0) 116 263 4700 Email: info@nebosh.org.uk

www.nebosh.org.uk

Registered in England and Wales Company Number: 2698100 Registered Charity Number: 1010444

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Contents

A welcome from our Chair & our Chief Executive Officer ................................................................................. 4 Trustees Report .............................................................................................................................................. 6 2021-22: The impact we’ve had on learning .................................................................................................... 6 2021-22: The impact we’ve had in the health and safety community ............................................................ 10 2021-22: The impact we’ve had on the environment ..................................................................................... 13 Financial Review ............................................................................................................................................ 14 Governance Report ........................................................................................................................................ 19 Statement of Financial Activities ............................................................................................................ 33 Balance Sheet .............................................................................................................................................. 34 Statement of Cash Flows .......................................................................................................................... 36 Notes to Financial Statements ................................................................................................................ 37

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A welcome from our Chair & our Chief Executive Officer

NEBOSH is a very special organisation. Our Charitable objects are firmly educational. For more than forty years our colleagues, Learning Partners and many thousands of learners have been united by one thing; through education and the awarding of professional health, safety and environmental qualifications to contribute positively to higher standards of safety and health in the workplace. We explain in this report how NEBOSH has delivered against these charitable objects during 2021-22.

We are delighted that our expertise in furthering learning opportunities within the industry was recognised by our peers when NEBOSH won the Awarding Organisation of the Year at the Federation of Awarding Bodies (FAB) Awards in 2021. A wonderful achievement and welldeserved recognition for our team, who spend their careers dedicated to the advancement of health and safety education.

Everyone has a pandemic story but, for NEBOSH, it was a turning point for the organisation. It gave us the opportunity to transform the way we do things – and what a transformation it’s been. The ability to gain a NEBOSH qualification from almost anywhere in the world has made health and safety education even more accessible; five new countries were represented in our registrations this year and more than 88,000 qualifications were awarded.

Collaboration not competition is our ethos; it focuses us on activities that offer the greatest benefits to the profession, and our collaborative efforts continued in 2021-22. Our relationship with the Health and Safety Executive, Great Britain’s regulator, produced two new qualifications and we partnered with IIRSM to release a risk management qualification that provides a broader approach to risk thinking.

As we enter the second year of our five year strategic intent, the transformation activities so far have provided us with a record financial position. This gives us the resources to continue investing in the future of our charity and further the education of the health and safety profession. In 2021 we used the funds generated by our outstanding qualification performance to invest in even more educational opportunities, including the first NEBOSH Online Conference, the Michael Adamson Diploma Scholarship and the continuation of our Alumni activities. This Annual Report outlines many more of our highlights from the year and the positive impact we have had.

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Thank you, as always, to our learners, Learning Partners, colleagues and partnering organisations for your continued support. The past two years have presented us with the most challenging of circumstances but we have demonstrated this year that working together we have not just survived, but thrived for the benefit of this important and rewarding profession.

Les Philpott, NEBOSH Chair

Andrew Wilkinson-Sharpe, NEBOSH Chief Executive Officer (Acting)

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Trustees Report

Strategic Review

Awarding Organisation of the Year 2021; summing up NEBOSH’s commitment and expertise in just a few words! The FAB (Federation of Awarding Bodies) Awards recognises the contributions made by awarding organisations and their employees to education and skills in the UK over the past year. The Awarding Organisation of the Year Award is a testament to Team NEBOSH and all of our supportive stakeholders. Together we are helping to make the world a healthier and safer place through quality learning.

Out of the unknown of the COVID-19 pandemic has been a transformation to be proud of; NEBOSH and our extended community have trained a record-breaking number of learners, delivered and marked more assessments than ever before, provided increasing educational opportunities and generated a stable financial basis from which to deliver our future ambitions.

This Annual Report looks back on a record-breaking 2021-22, highlights the work we’ve done towards achieving our charitable objects and the impact we’ve had on the communities we’re part of.

2021-22: The impact we’ve had on learning

NEBOSH welcomed a record number of learners this year, all of them demonstrating a desire to develop their knowledge and skills, and contribute to creating safer and healthier workplaces. We recorded more than 220,000 assessments representing 175 countries and territories, resulting in more than 88,000 qualifications being awarded.

Increasing opportunities for professional development

Five new or revised qualifications were launched throughout the year, offering health and safety practitioners the opportunity to continue their professional development with NEBOSH. Of these, three qualifications were developed in collaboration with fellow industry experts.

In addition, our two qualifications assessed by multiple-choice questions – the NEBOSH HSE Certificate in Process Safety Management and the NEBOSH Environmental Awareness at Work Qualification – moved online. Remotely proctored to maintain the integrity of the assessment, this technological change will help us to provide these qualifications to people in more countries and regions.

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Collaboration with IIRSM

Most recent was the launch in March 2022 of the NEBOSH IIRSM Certificate in Managing Risk. In a NEBOSH first, the qualification was launched as an online qualification only making it accessible to anyone in the world with internet access.

Risk management is transferable to any industry, profession, organisation or country. By working together, NEBOSH and IIRSM have combined their expertise in education and risk to deliver a qualification that broadens learners’ thinking beyond their own discipline, enabling them to understand the important relationship between risk management and other business functions.

“The NEBOSH IIRSM Certificate in Managing Risk course was well structured, and the training material was second to none. The relevant examples given throughout helped me gain a better understanding of the concepts covered.”

Paula Ireland, a Senior Health and Safety Manager at Fujitsu

Maintain high standards of existing qualifications

During the year we also updated the specifications for the NEBOSH Environmental Management Certificate and Health and Safety at Work Award.

Designed as a solid introduction to workplace health, safety and risk, the Health and Safety at Work Award is applicable to all industries, and a new assessment – a workplace review – is designed to help learners apply their new knowledge. This makes it a great option for employers too because they can give their workforce practical skills that improve organisational health and safety performance.

Health and safety professionals are often tasked with environmental responsibilities too; the protection of people, communities and the planet make them complementary functions. The new NEBOSH Environmental Management Certificate provides a solid technical and practical introduction to the subject, meaning learners are well equipped to make a positive impact in their workplace.

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Working with the UK’s regulator

Our continued relationship with the Health and Safety Executive (HSE), United Kingdom’s regulator, resulted in the launch of two qualifications; the NEBOSH HSE Award in Managing Risks and Risk Assessment at Work in April 2021, followed in February 2022 by the NEBOSH HSE Certificate in Manual Handling Risk Assessment.

The Award in Managing Risks and Risk Assessment at Work is rooted in a proportional approach to risk; it provides the fundamentals needed to build an effective approach to risk management in the workplace that focuses not only on the risk assessment itself, but on the practical actions needed to control and monitor those risks in order to protect people from harm.

Musculoskeletal disorders (MSDs) accounted for 8.9million lost working days in Great Britain in 2019/20, with manual handling estimated to be the main cause. 0.5 million workers suffered from a work-related musculoskeletal disorder in 2020/21. This is a global problem; the World Health Organization estimates 1.71 billion people experience musculoskeletal conditions worldwide. Three in five workers in Europe report MSD complaints and more than half of US adults experience an MSD, which is estimated to cost countries between 0.5-2% of Gross National Product. Our new NEBOSH HSE Certificate in Manual Handling Risk Assessment is a one-day qualification which tackles this significant issue, focusing on practical solutions to help recognise, assess, and manage manual handling risks.

“Many organisations jump straight to providing training on manual handling – how to lift etcetera. In developing this qualification we’re encouraging organisations to take a step back and take the time to effectively risk assess their manual handling activities. By doing so they may be able to eliminate or reduce an activity and, if manual handling is required, then they’ll have all the information they need to protect their workers.”

Matt Powell-Howard, NEBOSH Head of Product Development

A bespoke qualification for the railway industry

Inspired by our bespoke qualification for Health and Safety Executive inspectors, NEBOSH was commissioned by the Office of Rail and Road (ORR) to develop a qualification that could be delivered in-house for its regulatory inspectors. The NEBOSH Diploma in Regulatory Railway Occupational Health and Safety is made up of three units and has been designed to reflect the regulations and requirements of the rail industry in England, Scotland and Wales. The qualification was accredited by SQA Accreditation in March 2022 and is credit rated at

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level 11 on the Scottish Credit and Qualifications Framework (SCWF). Delivery to learners will begin in 2022-23.

Expanding our Learning Partner network

Our network of expert Learning Partners is fundamental to helping NEBOSH qualifications reach a global audience. Their expertise provides great learning experiences and helps NEBOSH learners to develop the skills they need to achieve our qualifications and go on to deliver sound health and safety management in the workplace.

We welcomed 28 new Learning Partners in the last year and our new Business Generate Unit surveyed and spoke to all of our 600-plus Learning Partners to explore how we can continue to work together in the future.. Our continued accreditation of – and collaboration with – quality Learning Partners in more regions will help us to reach more aspiring health and safety professionals.

Developing our Examiner community

Examiners play a key role in the delivery of NEBOSH qualifications. These people are experts from the health, safety and environmental profession who examine NEBOSH assessments, ensuring learners’ work is reviewed and graded by their professional peers.

We welcomed 170 new Examiners in the last year and our Examiners marked nearly 200,000 assessments! We also delivered 19 training workshops to ensure our new and existing Examiners continue to receive support, training and guidance in marking accurately, fairly and consistently. We’d like to publicly thank our valuable Examiner community for their support and expertise.

A new online shop

Our technology developments include the launch of a new online shop. We’ve enhanced the user experience so it’s easier to find and purchase what you need, and it also means that our range of publications is more accessible than before (many NEBOSH publications were previously only available via a Learning Partner).

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2021-22: The impact we’ve had in the health and safety community

Providing educational opportunities for all

Two new initiatives were launched, both designed to give back to the health and safety community, extend our charitable activities and provide more learning opportunities to the profession. These were the Michael Adamson NEBOSH Diploma Scholarship and the NEBOSH Online Conference, both of which we have committed to deliver annually from now on.

We also continued to collaborate with industry experts, organisations and publications to deliver educational webinars. These covered topics including legal updates, manual handling and a discussion on COVID impacts.

Resilience in health and safety

As leaders in the field of health and safety education, NEBOSH wanted to offer a conference that was all about sharing expertise and supporting ongoing learning for the profession. The day’s sessions – all under the conference theme of ‘resilience’ – covered risk management, leadership, careers, human and organisational factors and mental health and wellbeing. There was also a mini mindfulness session during the midday break where delegates joined a short guided meditation.

The conference was free to attend - more than 8,500 people registered for the option to watch live on the day or catch up on-demand and more than 96% of our survey respondents rated the event ‘good’ or ‘excellent’.

Michael Adamson NEBOSH Diploma Scholarship

In June, the winners of the inaugural Michael Adamson NEBOSH Diploma Scholarship were revealed as Chris Brown, Courtney Bayne, Imtiaz Ahmed Khan and Tran Duy Thanh Truc. Named in memory of Michael Adamson, who lost his life in a preventable workplace incident, the scholarship provides paid-for study for the NEBOSH National or International Diploma for Occupational Health and Safety Management Professionals.

The panel of judges was overwhelmed by the response to the scholarship; the depth and breadth of applications showed the incredible heart and purpose of people working in the profession. In recognition of the quality of applications, NEBOSH doubled the number of

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scholarships on offer to four. We have already committed to increase the scholarships on offer in 2022 and ten scholarships will be awarded.

NEBOSH Alumni

The NEBOSH Alumni first launched in 2016. Now heading into its sixth year, this free-to-join community for people who hold a NEBOSH Diploma or Masters qualification grew by more than 600 people this year to over 4,400 members.

We offer a wide range of events and channels for our community to collaborate and continue learning. Highlights from the year include:

Supporting Women in Health and Safety

In March 2022 NEBOSH signed up to the OneWISH Coalition. The Coalition unites organisations and women’s networks which are all working towards the aim of improving the prominence and influence of women in health and safety. As a key member of the health and

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safety community, this is a cause close to our heart; women make up 60% of NEBOSH’s senior leadership team and 65% of all employees.

“Here at NEBOSH we have great female representation; I’m proud to work alongside some passionate and tenacious women that share the same determination I do to be the best they can be. By joining OneWISH it is my hope that NEBOSH will be able to amplify this message of inclusivity. We want to encourage and enable even more women – and people of all gender identities – to achieve their ambitions and contribute towards the progress of the health and safety profession.”

Julia Whiting, Director of Marketing and Communications

Our online community

Our online and digital communities continue to be one of the most accessible ways to share news and information and engage with people from all over the world. Our website provides regular updates as well as providing an extensive range of information, resources and guidance. In 2021-22 we welcomed a record number of visitors to it – 1 million visitors from 228 countries! This was a visitor increase of 17% on the previous year.

Our social media following also continued to grow and more than 290,000 people now follow us. LinkedIn – as in previous years – continues to be our most popular social media channel and we enjoy celebrating our learners’ personal and professional achievements.

The readership for NEBOSH News – our monthly e-newsletter for learners and other subscribers – grew by more 31% to 29,988 in the year. It delivers the latest NEBOSH updates straight to your inbox – subscription is free via our website and for learners who opt-in to receive NEBOSH communications.

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2021-22: The impact we’ve had on the environment

Our continuous improvement approach to our environmental impact continued and 2021-22 marked the fifth anniversary of the introduction of our environmental management system.

Led and inspired by our Green Team – a group of employee volunteers – we’re pleased to report that we’ve made great progress. Since our 2016 baseline, both water and electricity use per employee has reduced, down 91% and 81% respectively. Unfortunately, our gas use per employee did increase in the reporting period as a result of extended office opening hours and cold winters – our gas use is monitored in line with degree days so although our gas use increased it was expected. Our paper use has significantly decreased such that we have not purchased any paper since March 2020!

Carbon reduction pledge

2021’s COP26 summit highlighted the importance of climate action across the UK, and NEBOSH joined 70 Leicestershire businesses in signing up to a year-long carbon emissions reduction programme in partnership with the sustainability platform Zellar. Supported by the Leicester Business Gateway and LLEP, Zellar aims to help Leicestershire businesses reach Net Zero by 2030, well ahead of government targets.

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Financial Review

The Charity recorded its strongest financial results to date for the year 2021/22 with income of £18.6m, almost double that recorded for 2020/21. The positive impact of implementing digitally supported assessments for our biggest qualifications - the National and International General Certificates – continue to drive the majority of the income increase. We continue to expand our product portfolio and revise and update our existing qualifications.

Expenditure for the year was £10.8m compared to £8.6m in 2020/21. Cost and process efficiencies from moving to digital assessments have resulted in higher margins across the product range. Costs relating to premises and travel were contained in the year as we continued to work in an agile manner in response to the ever changing external landscape. Investment in strategic development, mainly in in the areas of technology and transformation, resumed again in the year. The average full-time employees remained consistent - from 114 in 2021/22, 113 in 2020/21. The impact of COVID in 2020, whilst challenging, has provided a platform for investment in the modernisation of the Charity.. The strong financial performance in the year will enable the Charity to grow organically using the reserves that have been generated. Investments performed well in the year despite a very volatile market, resulting in strong compounded growth during the year. After taking into account investment gains and (losses), both realised and unrealised of £1.2m (2021: £2.4m) the fair value of investments was £16.1m at the yearend (2021: £14.4m).

A surplus of £9m, after investment gains, was recorded for the year, a surplus that will be invested in modernisation and into delivering our charity’s objects.

The balance sheet echoes the strong results in the year with reserves of £26.2m, with investments representing £16.1m of the funds. Cash held at the year-end increased significantly to £11.6m. The positive cash inflows allowed us to repay in full the £3m Coronavirus Business Interruption Loan Scheme (CBILS) loan received in 2020/21 in March 2022. Investments include £787k cash held as a short-term deposit.

The reserves include designated funds totalling £6.7m. These are split between £3.5m allocated for strategic investment to fund technology, infrastructure and transformation projects during 2022/23 and £3.2m assigned for an external investment protection fund equating to 20% of our investment fund value held with CCLA.

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Net current assets of £8.8m are detailed on the balance sheet at the year end, which includes £1.9m of deferred income relating to assessments taking place in 2022/23.

Financial key performance indicators that the Trustees consider include performance against budget, and registrations against each qualification. The outcome of these KPIs was better than expected with registrations, income and surplus for the year all outperforming the forecasts produced during the year.

Overall, the Charity’s notably strengthened financial results for the year evidence the continued success of developing digital versions of key qualifications to open up increased access to remote assessments alongside an ever increasing qualification portfolio that it offers. The Charity continues to prepare regular and detailed financial and cashflow forecasts to review any potential current and future impact ongoing from coronavirus and applies feedback from Learning Partners to forecast results following the end of each financial quarter.

The business plan for 2022/23 has a complementary budget to support it and the Trustees consider there are sufficient reserves held at 31 March 2022 to achieve it. Investment in transformation and technology will continue in 2022/23 to support the activity already seen in 2021/22 and strengthen the resource available to deliver the forecast growth over the coming years.

The Trustees believe that the Charity has adequate resources to fund its activities for the foreseeable future. Accordingly, the Trustees are of the view that the Charity is a going concern.

Investment Policy

After giving due consideration to the Charity’s financial position, the Trustees have decided that its investment assets, which comprise its surplus reserves, should be split between two portfolios: short term reserves required to meet the Charity’s short term needs to be held on deposit providing immediate access, and those funds which can be invested for the longer term and are likely to include a mixture of equities, fixed interest and other investments to achieve a balance between capital growth and sustainable income. At the beginning of the year, funds were drawn down to support cashflow.

The investment objective for the long-term investments is to achieve a balance between generating sufficient income to support the on-going activities of NEBOSH whilst maintaining the real capital value of the investments over the long term. The investment objective for the

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cash deposits is security of capital with easy access and an attractive rate of interest. The Trustees review the charity’s investment policy annually.

The Charity’s Investment Portfolio is entrusted to CCLA, an investment management company solely for not-for-profit organisations, with an investment management agreement. CCLA are leaders in ethical and responsible investment with a highly respected team of specialists dedicated to this area.

Responsible investment: environmental, social and governance (ESG) is built into CCLA’s investment process as the firm believes high standards in these areas are important contributors to the sustainability of income flows and their assessment is an integral factor in the investment decisions. The Trustees have asked CCLA to adopt a benchmark of CPI+4% over rolling 5-year periods for long term performance measurement and to use an appropriate composite benchmark for reviewing annual performance.

Portfolio Review Services have been appointed by the Trustees to conduct regular monitoring of the performance of our investment managers. Our strategy is reviewed on a regular basis. A representative from the investment managers may be invited to a Board meeting as required.

Impact of Ukraine conflict

After the invasion of Ukraine, NEBOSH followed the lead of the English, Scottish and Welsh governments and, in March 2022, suspended all activities with people and organisations based in Russia or Belarus.

These countries represented a relatively small proportion of NEBOSH accredited Learning Partners and learners, resulting in only a slight impact to registrations and income, particularly as this action came towards the end of the financial year.

CCLA ensured we were kept up to date with any potential impact on our investment fund. In terms of theirs and our portfolios, there is no direct exposure to Russia or Ukraine, and although some of their companies have operations in those regions, it is a small proportion of profits. The impact on equity positions in CCLA portfolios was very limited and we anticipate this to remain the case.

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Investment Performance

CCLA looks to meet NEBOSH’s investment objectives with a holding in the COIF Charities Investment Fund. To the 31st March over the last year the fund achieved a return of 11.62%. This reflects the continued recovery in economic activity as the global economy came out of pandemic lockdowns. Right at the end of the period there was a spike in commodity prices particularly oil as a result of Russia’s invasion of Ukraine.

Over the same period the market comparator achieved a return of 11.76%. Over the last five years the COIF Investment Fund has achieved 10.27% per annum against the comparator of 7.35%. The fund continues to be managed so as to protect capital values from inflation over the longer term whilst also delivering sustainable and growing distributions.

Fundraising

The Charity does not fundraise.

Reserves Policy

The Trustees have a standing policy whereby the unrestricted funds not committed or invested in tangible assets (the free reserves) should be available to meet anticipated resources expended and provide funding to expand our range of qualifications. The Trustees consider that in the light of plans to continue to develop charitable activities and manage risks, reserves should equate to no less than 9 months annual expenditure. The Reserves Policy is reviewed annually in March.

At 31 March 2022, the charity had £18.2m of free reserves, after a deduction of £6.7m designated by the Trustees for further development of the Charity’s infrastructure and to protect against investment fund fluctuations, which equates to 20 months annual expenditure based on future levels of expenditure. The Trustees believe that this level of reserves is appropriate at the present time due to planned project costs and the potential volatility of our investments. In addition, NEBOSH operates solely in the field of education in health, safety and environmental management, which is sensitive to fluctuations in demand caused by political and economic factors. The Trustees have borne in mind that NEBOSH has no significant income or prospect of financial support other than that derived from its own fees and charges .

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Donations

Charitable donations totalling £2k were made in the year (2021: nil).

Policy on Payment of Creditors

It is the policy to abide by the terms of payment agreed with its suppliers, either their standard terms or special terms where agreed beforehand.

Policy on Benefits Payable to Key Management Personnel

The key management personnel of the Charity are those having authority and responsibility, delegated to them by the Trustees, for planning, directing and controlling the activities of the charity. Salary for key management personnel is set by the Trustees considering factors including inflation and occasionally benchmarking against similar organisations.

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Governance Report

Governance Report

Legal Status and Constitution

The National Examination Board in Occupational Safety and Health (hereafter referred to as NEBOSH) is a company registered in England (No. 2698100) limited by guarantee and having no share capital. NEBOSH is a registered charity (No. 1010444). As a charity, the company is exempt from corporation tax.

Chief Executive

Mr Andrew Wilkinson-Sharpe FCCA MAAT (appointed 13 July 2022) Dr Chris Payne (resigned 12 July 2022)

Company Secretary

Mrs Laura Wise

Registered Office

NEBOSH Dominus Way Meridian Business Park Leicester LE19 1QW

Auditors

Mazars Chartered accountants 6 Dominus Way Meridian Business Park Leicester LE19 1RP

Bankers

National Westminster Bank plc 5 The Parade Oadby Leicester LE2 5BB

Investment Managers

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

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Governance Report

Trustees

The Trustees serving during this period were as follows -

Mr Les Philpott MSc CPFA FRSA Chair Independent Trustee

Mr Ian Marchant BSc MBA CEng FIMMM Vice Chair Independent Trustee

Mr Satish Mathur BA FCA (resigned 31 May 2022) Independent Trustee

Mr Andrew Johnson BSc (Hons) FIoD Independent Trustee

Mrs Maggie Galliers CBE BA PGCE Independent Trustee Ms Julie Nerney BA Hons MBA CDir FIoD Independent Trustee

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Governance Report

Structure, Governance and Management

Governing Document

NEBOSH, a company limited by guarantee, is governed by its Memorandum and Articles of Association dated 5 March 1992.

The current Articles of Association incorporating the Memorandum of Association were adopted by Special Resolution passed at the Board of Trustees Meeting, dated 26[th] March 2019. NEBOSH is governed by a single Board of Independent Trustees, accountable to all regulators and providing clear strategic leadership.

NEBOSH is registered as a charity with the Charity Commission.

There were 6 registered Members as at 31 March 2022 (2021: 6 Members), each of whom has undertaken to contribute £1 in the event of NEBOSH being wound up.

Appointment of Trustees

The Trustees are appointed through an open recruitment process by the Board of Trustees.

The Chair of the Board of Trustees is also appointed as an Independent Trustee. The Chair is appointed for a term of three years and may be re-appointed for two further terms of three years before retiring from office.

The Board of Trustees may appoint a minimum of five and a maximum of ten Independent Trustees. Each Trustee is appointed for a term of three years and may be re-appointed for one further term of three years before retiring from office.

A formal induction process exists for new Trustees. The programme includes familiarisation with the role of NEBOSH in health and safety competence, its charitable objects, structure and governance and the role and responsibilities of a charity trustee.

Additional briefings are arranged from time to time for Trustees on key issues which may impact on the work of NEBOSH or their role.

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Governance Report

Organisation

The affairs of NEBOSH are managed by the Trustees, who during 2021/22 have met regularly. There is a scheme of delegated authorities in place.

The Trustees may delegate any of their powers to sub-committees. Sub-committees have been established to cover Finance, Audit and Risk and Remuneration and Nominations.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of NEBOSH. To facilitate effective operations, the Chief Executive has delegated authority to execute the strategic plan and for all operational matters.

Third Party Indemnity for Trustees

Qualifying third party indemnity provision is in place for the benefit of all Trustees of NEBOSH.

Risk Assessment

The Trustees are responsible for overseeing the establishment and implementation of a sound framework for management of risk by NEBOSH. The Trustees have a formal policy on the Management of Risk which is reviewed annually. The significant risks to NEBOSH include those which threaten our reputation for integrity in the awarding of our qualifications, the political volatility of some of the regions where a high proportion of our candidates are based and the impact of economic uncertainty and recession on the uptake of health, safety and environmental qualifications, made even more prevalent during the remainder of 2021 and into 2022 due to the rising cost of living.

Risk management is an inherent part of the strategy review process and is considered in the formulation of the annual business plan.

The major risks to which NEBOSH is exposed have been systematically reviewed and recorded in a risk register. The management team review risks regularly, identifying new risks arising, the factors impacting on the likelihood and potential severity and review the actions to prevent, control and mitigate those risks. We are committed to continual improvement in management of risk which forms part of our Business Continuity and Risk Contingency plans.

The risk register is reviewed four times per year by the Audit and Risk Committee on behalf of the Trustees, and reviewed by all Trustees at each Board meeting. A report setting out the

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Governance Report

mitigation activities and identifying measures is provided to the Executive team and the Board on a quarterly basis

The Trustees are confident that sufficient steps have been and are being taken to reduce and manage those risks.

Objectives and Activities

Objects

As a UK registered charity (No. 1010444), our core purpose is:

the preservation of health and wellbeing by the promotion of high standards of health, safety and environmental protection at work in particular, but not exclusively through study and competence in risk management.

In setting our objectives and aims and planning our activities, the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance for charities, whose aims include the advancement of education and the guidance for those charities that charge fees.

Aims

NEBOSH’s aims are:

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Governance Report

meet the needs of employment and the requirements of safety and health and environmental legislation;

Strategies for achieving NEBOSH’s Objectives

NEBOSH achieves its objectives by:

Trustees’ Responsibilities

The Trustees, who are also Directors of The National Examination Board in Occupational Safety and Health for the purposes of company law, are responsible for preparing the Report of the Trustees and the incorporated Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

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Governance Report

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

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the National Examination Board in Occupational Safety and Health website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware:

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Report of Trustees’ Approval

Report of Trustees’ Approval

The Report of the Trustees, incorporating both the Strategic Report, the Financial Review and the Governance Report, is approved by the Trustees, by whose authority it is signed below:

Les Philpott Chair of the Board of Trustees

Date: 20[th] September 2022

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Statement of Financial Activities

Independent auditor’s report to the members of the National Examination Board in Occupational Safety and Health

Opinion

We have audited the financial statements of National Examination Board in Occupational Safety and Health (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash flows and notes to the financial statements, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Statement of Financial Activities

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our audit procedures to evaluate the trustees’ assessment of the charity's ability to continue to adopt the going concern basis of accounting included but were not limited to:

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

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

Other information

The other information comprises the information included in the Trustees report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or

Page 28 of 55

Statement of Financial Activities

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Trustees’ Report.

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

Page 29 of 55

Statement of Financial Activities

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 24, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19.

Page 30 of 55

Statement of Financial Activities

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to income recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with

Page 31 of 55

Statement of Financial Activities

management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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

Use of the audit report

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

David Hoose (Oct 3, 2022 17:48 GMT+1)

David Hoose (Senior Statutory Auditor) for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

6 Dominus Way Meridian Business Park Leicester LE19 1RP

Date: Oct 3, 2022

Page 32 of 55

Statement of Financial Activities

Statement of Financial Activities

(Including Income and Expenditure Account)

For the year ended 31 March 2022

Notes
Income from:
Charitable activities:
Operations of Examination Board
Government Grants
3
3
Investments
4
Total
Expenditure on:
Charitable activities:
Operations of Examination Board
5
Total
Net gains on investments
11
Net (expenditure)/income for the year being net movement in
funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
19		 Unrestricted funds
2022
£’000
2021
£’000
18,098
10
8,629
331
443
432
18,552
9,392
10,762
8,627
10,762
8,627
1,218
2,383
9,008
3,148
17,284
14,136
26,292
17,284		 Unrestricted funds
2022
£’000
2021
£’000
18,098
10
8,629
331
443
432
18,552
9,392
10,762
8,627
10,762
8,627
1,218
2,383
9,008
3,148
17,284
14,136
26,292
17,284
9,392
8,627
8,627
2,383
3,148
14,136
17,284

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Page 33 of 55

Balance Sheet

Balance Sheet

31 March 2022
 Company number: 2698100
2022 2021
Notes £’000 £’000
FIXED ASSETS
Intangible assets 9 108 9
Tangible assets 10 1,292 1,374
Investments 11 16,052 14,392
17,452 15,775
CURRENT ASSETS
Stock 12 27 34
Debtors 13 725 577
Cash at bank and in hand 14 11,586 7,388
12,338 7,999
CREDITORS: amounts falling due within one year 15 (3,498) (3,940)
NET CURRENT ASSETS 8,840 4,059
CREDITORS: amounts falling due after more than one year 16 - (2,550)
TOTAL ASSETS LESS CURRENT LIABILITIES BEING NET 26,292 17,284
ASSETS
REPRESENTED BY:
FUNDS
Unrestricted:
General 19 19,592 17,094
Designated 19 6,700 190
TOTAL CHARITY FUNDS 26,292 17,284

Page 34 of 55

Balance Sheet

The financial statements on pages 32 – 55 were approved and authorized for issue by the Trustees on and were signed on their behalf by:

Leslie Philpott Chair of the Board of Trustees

Ian Marchant Vice Chair of the Board of Trustees

Date: 20[th] September 2022

Page 35 of 55

Notes to Financial Statements

Statement of Cash Flows

For the year ended 31 March 2022

CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR
23b
Notes
NET CASH USED IN OPERATING ACTIVITIES
23a
CASH FLOWS FROM INVESTING ACTIVITIES
COIF investment income
Bank interest receivable
Purchase of tangible fixed assets
Sale of tangible fixed assets
Purchase of intangible fixed assets
Purchase of investments
Proceeds from sale of investments
NET CASH (USED IN)/PROVIDED BY INVESTING
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayments)/Proceeds of new bank loans
NET CASH (USED IN)/PROVIDED BY FINANCING
ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE
YEAR		 7,388
11,586
2022
£’000
7,318
442
1
(60)
47
(109)
(442)
-
(121)
(3,000)
(3,000)
4,198		 1,239
7,388
2021
£’000
2,771
431
1
(2)
28
-
(431)
350
377
3,000
3,000
6,148

Page 36 of 55

Notes to Financial Statements

Notes to Financial Statements

ACCOUNTING POLICIES

General information

The Charity is a company limited by guarantee and has no share capital and is a registered charity at the Charity Commission in England and Wales. The liability of each member in the event of winding up is limited to £1.

The address of the Charity’s registered office and principal place of business is Dominus Way, Meridian Business Park, Leicester, LE19 1QW.

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are prepared in Sterling which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £’000, unless otherwise stated. The National Examination Board in Occupational Safety and Health 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 notes.

NEBOSH owns the whole of the share capital of NEBOSH Learning Ltd, a private limited company registered with Companies House in England and Wales (no. 12201542). Consolidated accounts have not been prepared on the basis that the subsidiary undertaking, Nebosh Learning Ltd, is not considered material to the results of the charity for the year.

Going concern

The financial statements have been prepared on a going concern basis. Having carried out a detailed review of the Charity’s resources and the challenges presented by the current economic climate, the Trustees are satisfied that the Charity has sufficient cash flows to meet

Page 37 of 55

Notes to Financial Statements

its liabilities as they fall due for at least one year from the date of the approval of the financial statements.

The Charity regularly assesses all operations and business plans and continues to develop digital versions of its key qualifications to enable remote assessment.

The cash flow forecast and revised plan shows that the Charity will have adequate reserves and will be able to meet its liabilities. Accordingly, the Trustees do not consider there to be any material uncertainties and continue to adopt the going concern basis in preparing the financial statements as outlined in the Trustees’ Responsibilities Statement.

There are no significant financial uncertainties that the Trustees consider are a significant risk to the ability of the Charity to trade as a going concern in the foreseeable future.

Income

All income is included in the Statement of Financial Activities when the Charity has entitlement to the funds, it is probable that the income will be received and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Expenditure

All expenditure is accounted for on an accruals basis. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure. The following specific policies are applied to particular categories of expenditure:

Page 38 of 55

Notes to Financial Statements

Intangible fixed assets

Research and development

All research and development expenditure is expensed as incurred.

Other intangible fixed assets

Intangible assets are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised on a straight line basis over their useful lives as follows:

Software licences - 4 years MIS Software - 5 years

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Equipment costing less than £1,000 per individual item is recognised as expenditure in the period of acquisition.

Depreciation is calculated so as to write off the cost of an asset to its estimated residual value on a straight line basis over the useful economic life of that asset as follows:

Freehold land - Nil Freehold buildings - 2% on cost Fixtures and fittings - 10% / 25% on cost Office equipment - 10% / 25% on cost Computer equipment - 20% / 25% / 33% on cost Motor vehicles - 25% on cost

Stocks

Stocks which comprise printed and other materials are stated at the lower of cost and estimated selling price less costs to complete and sell which is equivalent to the net realisable value. Provision is made for obsolete and slow-moving items.

Investments

Investments are stated at fair value. Movements in the valuation of investments are included within gains and losses on investment assets in the Statement of Financial Activities. The fair value of the investments is the quoted bid price.

Long term investments are classified as fixed assets. Short term investments are classified as current assets.

Page 39 of 55

Notes to Financial Statements

Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments and are not considered to be of a financial nature. Such financial instruments, except for investments classified at fair value through the Statement of Financial Activities, are initially recognised at transaction value and subsequently measured at their settlement value.

Debtors

Fees receivable are recognised at the settlement amount due after any trade discounts offered.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and monies on short term deposit, at the bank and other short-term liquid investments with original maturities of three months or less.

Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount allowing for any trade discounts due.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against resources on a straight line basis over the lease term.

Pension costs

Contributions in respect of the pensions for staff are charged against resources arising for the year in which they are payable to the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Funds structure

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general charitable objectives.

Designated funds are unrestricted funds that have been set aside by the Trustees for particular purposes. These funds are reviewed annually.

Page 40 of 55

Notes to Financial Statements

Foreign currencies

Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no critical accounting estimates and areas of judgement to note.

Page 41 of 55

Notes to Financial Statements

INCOME FROM CHARITABLE ACTIVITIES

The income was primarily from the operations of the examination board.

Income for Assessments
UK
Outside UK
Income from Learning Partners
UK
Outside UK
Income from Publications
UK
Outside UK
Government Grants - Income from CJRS
Government Grants – First time support
Total		 2022
£’000
5,984
11,364
17,348
210
279
489
86
175
261
-
10
18,108		 2021
£’000
1,769
6,182
8,261
223
333
556
45
77
122
331
-
8,960

Page 42 of 55

Notes to Financial Statements

INVESTMENT INCOME

COIF investment income
Dividend income
Bank interest receivable		 2022
£’000
28
414
1
443		 2021
£’000
20
411
1
432

OPERATIONS OF EXAMINATION BOARD

Costs directly allocated to
activities:
Staff costs
Other costs
Support costs allocated to
activities:
Staff costs
Premises costs
Office administration
Travel
Legal and professional
Marketing
Computing
Development – strategic
Depreciation and amortisation
Support costs total
Total		 Examinations
£’000
Course
Providers
£’000
Publications
£’000
Total
2022
£’000
Total
2021
£’000
2,896
1,008
11
3,914
3,404
2,997
206
7
3,210
1,757
1,535
43
23
1,602
2,150
158
4
2
165
118
84
2
1
87
79
22
1
-
23
5
268
8
4
280
114
-
-
-
-
110
868
24
13
905
743
449
13
7
469
18
102
3
2
107
128
3,487
98
53
3,638
3,466
9,379
1,312
71
10,762
8,627

Support costs are allocated on a basis consistent with the use of resources.

Page 43 of 55

Notes to Financial Statements

NET INCOME/(EXPENDITURE) IS STATED

AFTER CHARGING/(CREDITING):

Depreciation on owned assets
Gain on disposal of assets
Amortisation
External auditor’s remuneration – for audit services
External auditor’s remuneration – for tax advisory services
External auditor’s remuneration – for other services
Operating lease rentals:
- plant and machinery
Trustee indemnity insurance
PLOYEES
Staff costs consist of:
Wages and salaries
Principal examiners
Social security
Temporary staff
Pension costs (note 16)
Apprenticeship levy
Redundancy costs		 2022
£’000
96
(2)
11
24
-
3
278
5
2022
£’000
4,386
1
453
94
355
5
-
5,294		 2021
£’000
122
(11)
6
26
2
4
256
10
2021
£’000
4,200
4
395
146
372
5
122
5,244

EMPLOYEES

Page 44 of 55

Notes to Financial Statements

7. EMPLOYEES (CONTINUED)

The number of employees whose emoluments (salaries and benefits in kind) in excess of £60,000 for the year fell within the following bands:

r fell within the following bands:
2022 2021
No. No.
£60,000 to £69,999 6 3
£70,000 to £79,999 1 1
£80,000 to £89,999 - -
£90,000 to £99,999 - 1
£100,000 to £109,000 2 -
£110,000 to £119,999 1 -
£140,000 to £149,999 1 -

During the year the Charity paid money purchase pension contributions in respect of the above higher paid individuals amounting to £103,398 (2021: £45,445).

The key management personnel of the charity are those having authority and responsibility, delegated to them by the trustees, for planning, directing and controlling the activities of the charity. The total employee benefits of the key management personnel, including employers’ national insurance contributions and employers’ contributions to the pension scheme, were £552,003 (2021: £754,699)

The average number of full time equivalent
employees during the year was as follows:
Governance, finance and office administration
Qualification development, assessment administration /
logistics setting, marking and accreditation		 2022
No.
25
89
114		 2021
No.
26
87
113

The average number of employees by headcount during the year was 118 (2021: 119).

Page 45 of 55

Notes to Financial Statements

TRUSTEES’ EMOLUMENTS

The Trustees of NEBOSH received no remuneration for their services as Trustees. During the year, travel, accommodation and incidental expenses amounting to £990 were reimbursed to 3 Trustees (2021: £187 to 2 Trustees).

During the year, travel, accommodation, subsistence and incidental expenses amounting to £5,596 were paid directly to third parties on behalf of the Trustees (2021: £Nil).

INTANGIBLE FIXED ASSETS

Cost
At 1 April 2021
Additions
At 31 March 2022
Amortisation
At 1 April 2021
Charge for year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Software
licences
£’000
151
109
260
142
11
153
108
9		 MIS
£’000
248
-
247
248
-
247
-
-		 Total
£’000
399
109
508
390
11
400
108
9

Page 46 of 55

Notes to Financial Statements

TANGIBLE FIXED ASSETS

Cost
At 1 April 2021
Additions
Disposals
At 31 March
2022
Depreciation
At 1 April 2021
Charge for year
Disposals
At 31 March
2022
Net book value
At 31 March
2022
At 31 March
2021		 Freehold
land and
buildings
£’000
Fixtures
and
fittings
£’000
1,678
215
-
-
-
(1)		 Office
equipment
£’000
208
4
(72)		 Computer
equipment
£’000
182
56
(63)		 Motor
vehicles
£’000
Total
£’000
87
2,370
-
60
(66)
(202)
1,678
214		 140 175 21
2,229
444
206
30
4
-
(1)		 127
22
(42)		 151
27
(53)		 68
996
12
96
(61)
(156)
474
209		 107 125 19
935
1,205
5		 33 50 2
1,292
1,234
9		 81 31 19
1,374

Page 47 of 55

Notes to Financial Statements

INVESTMENTS

COIF deposit
account
COIF accumulation
units fund
Historical cost		 Fair
value at
01/04/21
Deposits
received
Transfers
Withdrawals
Net
gain
Fair
value at
31/03/22
£’000
£’000
£’000
£’000
£’000
£’000
344
442
-
-
-
787
14,048
-
-
-
1,218
15,265
14,392
442
-
-
1,218
16,052
2022
2021
£’000
£’000
6,560
6,118

All of the above investments are held primarily to provide capital growth for the Charity.

The net gain above is split as follows:

2022
£’000
Realised gain on disposal -
Unrealised gain on revaluation 1,218

The charity owns the whole of the share capital of NEBOSH Learning Limited, its trading subsidiary, which is a private limited company registered with Companies House in England and Wales (no. 12201542).

NEBOSH Learning Limited is currently dormant and has net assets of £100. The accounts have not been consolidated due to the level of materiality.

Page 48 of 55

Notes to Financial Statements

STOCK

OCK
General stationery
Publications		 2022
2021
£’000
£’000
1
-
26
34
27
34

DEBTORS

Fees receivable
Prepayments and accrued income		 2022
2021
£’000
£’000
347
318
378
259
725
577

CASH AT BANK AND IN HAND

Bank current and business reserve accounts
Cash balance		 2022
2021
£’000
£’000
11,585
7,387
1
1
11,586
7,388

Page 49 of 55

Notes to Financial Statements

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans and overdrafts (note 17)
Trade creditors
Taxation and social security
Accruals
Deferred income -
Assessment fees and Learning Partner fees received in
advance		 2022
2021
£’000
£’000
-
450
338
299
119
93
1,131
502
1,909
2,596
3,498
3,940
Movement on deferred income:
Deferred income brought forward
Released in year
Deferred in year
Deferred income carried forward
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£’000
Bank loans and overdrafts (note 17)
-
-		 Movement on deferred income:
Deferred income brought forward
Released in year
Deferred in year
Deferred income carried forward
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2022
£’000
Bank loans and overdrafts (note 17)
-
-		 2022
£’000
2,596
(2,596)
1,909
1,909
2021
£’000
2,550
- 2,550

Page 50 of 55

Notes to Financial Statements

BORROWINGS

This note provides information about the contractual terms of the Charity’s interest-bearing loans and borrowings, which are measured at amortised cost.

Creditors falling due within less than one year
Bank loan
Creditors falling due after more than one year
Bank loan		 2022
2021
£’000
£’000
-
450
-
450
2022
2021
£’000
£’000
-
2,550
-
2,550

On 5 June 2020 the Charity obtained a £3,000,000 Coronavirus Business Interruption Loan Scheme loan. The loan was repaid in full in March 2022.

PENSION CONTRIBUTIONS

The Charity contributes to a money purchase Group Personal Pension Scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity to the fund.

2022 2021
£’000 £’000
Contributions payable by the Charity for the year 355 372

Page 51 of 55

Notes to Financial Statements

RECONCILIATION OF MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated funds
Strategic Investment
Fund
Investment Protection
Fund
Development Fund
Total funds		 At 1 April
2021
Income
£’000
£’000
17,094
18,552		 Expenditure
£’000
(10,762)		 Investment
gains
£’000
1,218		 Transfers
At 31
March
2022
£’000
£’000
(6,510)
19,592
-
-
-
-
190
-		 -
-
-		 -
-
-		 3,500
3,500
3,200
3,200
(190)
-
190
-		 - - 6,510
6,700
17,284
18,552		 (10,762) 1,218 -
26,292

Development Fund – The purpose of this fund is to fund the replacement of the current management information system.

Investment Protection Fund - the purpose is to protect the reserves from any potential decline in investment fund valuation by designating 20% of the portfolio value

Strategic Investment Fund - the purpose is to set aside funds for strategic investments including individual strategic projects

Page 52 of 55

Notes to Financial Statements

19. RECONCILIATION OF MOVEMENT IN FUNDS (CONTINUED)

At 31
At 1 April Investment March
Prior year 2020 Income Expenditure gains Transfers 2021
£’000 £’000 £’000 £’000 £’000 £’000
Unrestricted funds
General fund 13,946 9,392 (8,627) 2,383 1,536 17,094
Designated funds
Development Fund
Total funds		 190
-		 - - -
190
190
-		 - - -
190
14,136
9,392		 (8,627) 2,383 -
17,284

Page 53 of 55

Notes to Financial Statements

FINANCIAL COMMITMENTS

The total future minimum lease payments under non-cancellable operating leases for plant and machinery are set out below:

Amounts due within 1 year
Amounts due within 2-5 years		 Plant and machinery
2022
2021
£’000
£’000
124
169
3
17
127
186		 Plant and machinery
2022
2021
£’000
£’000
124
169
3
17
127
186
186

RELATED PARTY TRANSACTIONS

No Trustees received a payment in their capacity as an Examiner, (2021: No Trustees) as permitted by the Charity’s Articles of Association. The Trustees of NEBOSH received no remuneration for their services as Trustees (note 8).

During the year, the Charity sold a vehicle to a key management personnel staff member for £8,300. This was based on the valuation obtained for the vehicle by a third party.

NEBOSH owns 100% of the share capital of NEBOSH Learning Limited, a private limited company registered with Companies House in England and Wales (no. 12201542).

Transactions with NEBOSH Learning Limited were as follows:

2022 2021
£ £
Grant to NEBOSH Learning Limited - 100
Purchases transferred to NEBOSH - 21,414

CAPITAL COMMITMENTS

As at 31 March 2022, the Charity had no contractual capital commitments (2021: £nil).

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Notes to Financial Statements

NOTES ON THE STATEMENT OF CASH FLOWS

2022
£’000
(a)
Reconciliation of net income/(expenditure) to net cash flow
from operating activities
Net (expenditure)/Income for the year
9,008
Adjustments for:
Investment income
(443)
Gains on investments
(1,218)
Depreciation (note 10)
96
Amortisation (note 9)
11
Gain on disposal of tangible fixed assets
(2)
Decrease/(increase) in stock
7
(Increase)/decrease in debtors
(148)
Increase in creditors
8
Net cash provided by operating activities
7,319
(b)
Analysis of cash and cash equivalents
2022
£’000
Cash at bank and in hand
11,586
Total cash and cash equivalents
11,586
Net debt analysis
At 1 April 2021
Cash flows
At 31 March 2022
£’000
£’000
£’000
Cash
7,388
4,198
11,586
Loans
(3,000)
3,000
-		 2021
£’000
3,147
(432)
(2,383)
122
6
(11)
(19)
335
2,006
2,771
2021
£’000
7,388
7,388

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