OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← The Association Of Colleges Charitable Trust

2022-03-31-accounts

d Y sd oe oe 7 b= aesSy

==> picture [17 x 4] intentionally omitted <==

----- Start of picture text -----
| a
----- End of picture text -----

} ny |

uy y nila

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Contents

Report ofthe Trustees 3
Statement ofTrustees' Responsibilities 10
Report ofthe IndependentAuditorto the Trustees oftheAoC Charitable Trust 11
Statement ofFinancial Activities 15
Statement of Financial Position 16
Statement ofCashflows 17
NotestotheFinancialStatements 18

2

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees

The Trustees present their report and the audited financial statements for the year ended 31 March 2022. The financial statements and Trustees’ report are prepared in accordance with the Charities Act 2011, the Charities Accounts and Reports Regulations 2008, the provisions of the trust deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity's constitution. These financial statements comply with current statutory requirements and with the requirements of the Trust’s governing document, which is the Trust Deed dated 1 August 1994,

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the 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) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The trust constitutes a public benefit entity as defined by FRS 102.

Structure, Governance & Management

Legal and Administrative Details

The Trust was registered with the Charity Commission on 1 August 1994 and is governed by its constitution.

Registered Name: Association of Colleges Charitable Trust Charity Commission Number: 1040631 Office of the Scottish Charity Regulator: $C039064

Trustees:

==> picture [490 x 168] intentionally omitted <==

----- Start of picture text -----
P. Brophy
D. Hughes PO
K. Lord Pe
eM
Resigned 22 November 2021
F. Thouard Pe
M. White (Chair)
J. Edwards Pn
----- End of picture text -----

3

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

Trustee to whom day-to-day running of the charity is delegated by the Trustees is | Munro.

Registered Office: 2-5Stedham Place Statutory Auditor: RSM UK Audit LLP London 25 Farringdon St WC1A 1HU London EC4A 4AB Bankers: Barclays Internal Auditor Mazars LLP 28" Floor Tower Bridge House 1 Churchill Place St Katherine's Way Canary Wharf London London E14 5HP E1W 1DD Solicitors: Eversheds Sutherland 1 Wood Street London EC2V 7WS

Objectives, activities, achievements and performance

The Trust is established for the purpose of advancing the education of members of the public aged over 16 years.

The nature of the governing document is a Trust Deed.

The Trust is devoted to raising funds and overseeing their application for the benefit of post-16 education. The Trustees are appointed from the Association of Colleges’ Main Board, the Association's executive officers and independent representatives. Trustees appointed from the Association’s Board include the Chair, the Chief Executive and the Director of Finance; executive officers include the Trust's Director. Independent representatives are appointed for their knowledge, experience and status in the sector. All appointments require the approval of the Trustees. An informal induction process is carried out. As a minimum, the Trustees meet on a termly basis, although additional meetings are held if required.

The Trustees are satisfied that the programmes operating through the Trust have been effective, given the resources. Representatives are pleased that the Beacon Awards Programme has continued to retain and attract the support of external sponsors in a challenging pandemic year and that the balance for the Beacon Awards is healthy at the end of the 12-month period. The total number of Beacon Awards on offer in 2021/22 was 11.

The AoC Beacon Awards were set up in 1994 to recognise and promote the interdependence of further education colleges and business, professional and voluntary sector organisations to their mutual advantage.

e

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

In the year ended 31 March 2022, 11 Beacon Awards were offered and in the same year four Student of the Year categories were offered.

The Trustees and the Director worked closely with longstanding sponsors who were struggling financially in this exceptional pandemic year and agreed a reduced donation. The Trustees felt it important to maintain the awards programme and continue to highlight and celebrate college and student success.

Following independent assessment and moderation by the AoC Chief Assessor, eleven Beacon award winners were recommended and then ratified by the Trust Board. The winners were announced during at a ceremony in London on the 3 May 2022.

Student of the Year received 120 nomination and following a rigorous judging process 16 progressed to finalist stage. The winners were announced online on 14 February 2022.

The AoC Gold Awards for Further Education College Alumni have been managed by the Charitable Trust since 1996. In 2020 Trustees agreed these would not be offered in 2021/22 and a proposal was written in 21/22, to be discussed by the Trustees in 22/23. Trustees remain committed to offering an award that recognises the contribution of past student achievement but feel further analysis will need to be carried out.

Trust Awards 2022

The Trust intends to use current funds to make awards to winning colleges and to cover the cost of assessment and administration and to promote the Awards.

AoC Beacon Awards - The Beacon Awards remain a central aspect of AoC strategy to celebrate and promote the great work of colleges and their staff. This year the innovation demonstrated by colleges in responding to the challenges from pandemic was impressive and noted in the AoC Chief Assessors report 2021/22.

The proposals agreed by the Trust and AoC Board in 2017 have now been fully implemented; new sponsorship has been attracted whilst maintaining existing sponsors and applications have steadily increased from 80 in 2017, 202 in 2018, 130 in 2019.

However, in the pandemic year 2020/21 107 and for 21/22 106 applications were received, which the Trustees considered to be a significant achievement. Especially given the revised limit of only two applications per college. Colleges meeting the Beacon Standard are profiled on the www.collegeawards.co.uk website and in national media. Several new changes were introduced in 2020/21 and continued in 2021/22. This included a development fund that enables new Beacon Awards to be created to refresh the programme and complement the longstanding and existing award categories. Changes to the assessment process were made in 2020/21 in recognition of Covid-19 and the demands placed on college staff with the assessment process streamlined. In 21/22 we revised the limit to four applications per college in any one year.

5

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

Student of the Year Awards - These awards are managed through the Charitable Trust with great success and celebrate the achievements of exceptional individuals from colleges across England. Colleges provide a fantastic array of opportunities for people to help them achieve their ambitions, maximise their talent and to progress in life, learning and work. This is an opportunity for the Trust to recognise outstanding students who deserve recognition and who. will go on to inspire others and/or who have gone above and beyond, in college, their local community or in extra-curricular activities. This year the winners were announced online on the 14 February 2022.

Risk management policy

During the year, the Trustees have considered major risks on an ongoing basis and taken appropriate steps as deemed necessary. Consideration has been given to a material drop in sponsorship for the Beacon Awards and a contingency plan has been put in place for this. A reduction in sponsorship would result in a reduction in awards available and therefore a reserve fund is being built to cover the possibility of minimal sponsorship and the winding up of the Trust.

Financial review

During the financial year the principal funding sources were the sponsors of the Beacon Awards, as listed in note 7, together with the Association of Colleges which provides funding for the Beacon Awards and the general running of the Trust through the unrestricted fund. Total incoming resources for the year were £146,296.

The bulk of the expenditure during the year relates directly to the management, assessment, promotion of the Beacon Awards programme, with the remainder covering the expenditure associated with the Student of the Year Awards and the research and development of the awards as a whole, Total resources expended for the year were £94,439.

The financial outturn this year provided a net positive balance (surplus) of £51,857 and this has been added to reserves which at 31 March 2022 are £420,216.

Structure, governance and management

The AoC Charitable Trust's Trustees shall be as follows:

The total number of Trustees shall be 11 including ex officio members.

6

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

New Trustees are recruited through a consultation process with the Trust and relevant stakeholders, led by the Chair and senior AoC staff, and their appointments must be approved by a quorate meeting of the Trust.

The term of office for appointed Trustees is four years. Trustees serve a maximum of two fouryear terms, subject to re-appointment by the Trust. Their re-appointment for a second four-year term is not automatic and is formally determined by the Trust at a scheduled meeting. Trustees may only be considered for re-appointment beyond two terms in exceptional circumstances if they have special skills that would be otherwise hard to find; or if their experience on the Trust is required to balance out the relative inexperience of new Trustees, and, in any case, only if they have demonstrated excellent commitment to the Trust in terms of attendance and contribution at meetings.

Ex officio Trustees can be Trustees so long as they remain in post and comply with relevant Charity Commission regulations.

The Chair is ex officio the Chair of the AoC Board, and the Vice-Chair is elected by Trustees ata quorate meeting of the Trust.

The term of office for the Chair matches their term of office as Chair of the AoC Board. The term of office for the Vice-Chair matches their term of office as an appointed Trustee. Their reappointment for a second term as Vice-Chair is not automatic and is formally determined by the Trust at a scheduled meeting.

Key management personnel remuneration

The Trustees consider the Board of Trustees as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 3 and note 8 to the accounts.

Trustees are required to disclose all relevant interests and register them with the Board of Trustees and, in accordance with the Trust's policy, withdraw from decisions where a conflict of interest arises.

The pay of the charity's director is initiated by the holding company of the trust, Association of Colleges, and as such is reviewed annually and normally increased in accordance with average earnings and performance. Salary is set and reviewed by Association of Colleges and benchmarked against salaries within the organisation to ensure it is fair and not out of line with that generally paid for similar roles.

Reserves policy

The Trustees have reviewed the financial position at year end. This review encompassed the nature of the income and expenditure. The review concluded that to allow the charity to be managed

7

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

efficiently and to provide a buffer for uninterrupted services, a minimum reserve equivalent to £50,000, excluding restricted funds, should be maintained. This equates to approximately six months of general expenditure and covering costs of awards where sponsorship cannot be obtained but Trustees choose to continue them.

Free reserves are the unrestricted funds (as there are no designated funds within them). The current free reserves are in line with the target with no shortfall and look to be maintained at this level.

During the year, the charity's reserves, including restricted funds, increased from £368,359 to £420,216. As the bulk of the Trust's activities relate to restricted funds, the Trustees feel it is appropriate to maintain reserves to facilitate an orderly wind-up of each separate area of activity should the need ever arise.

Public benefit statement

Within the accounting period, 11 AoC Beacon Awards were provided and 106 applications received. A team of independent assessors worked within a two-stage assessment process between August 2021 and February 2022. The winning colleges were ratified by the Board and were announced in February 2022. The Awards recognise outstanding teaching and learning in colleges and there is potential for all colleges in the sector to benefit from the dissemination of good practice evidenced by the winning college.

This directly benefits the public since colleges can replicate the award-winning practice, thereby enhancing the quality of learning and support given to learners across the country. The Trustees have paid due regard to the Charity Commission's guidance in reviewing the Trust's aims and objectives.

Covid-19

The pandemic and economic challenges meant that some sponsors suffered financial constraints and as a result could not commit to the full sponsorship fees. The Trustees agreed to reduced sponsorship fees in 21/22 which were mitigated by reduced travel and meeting costs during the year. Whilst early discussions with sponsors for 22/23 is strong, with many already secured, the Trust has significant reserves to cover any shortfall in sponsorship, maintaining it’s going concern status.

Statement as to Disclosure of Information to Auditors

The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. The Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

8

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Trustees (continued)

Auditor

RSM UK Audit LLP has indicated its willingness to continue in office.

==> picture [80 x 58] intentionally omitted <==

----- Start of picture text -----
“Ss
P | Brophy
Trustee
----- End of picture text -----

23 August 2022

9

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The laws applicable to charities in England & Wales and Scotland require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the provisions of the trust deed, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

10

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Independent Auditor to the Trustees of the AoC Charitable Trust

Opinion

We have audited the financial statements of The AoC Charitable Trust (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cashflows and notes to the financial statements, including 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 have been appointed auditors under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under section 144 of the Charities Act 2011 and report in accordance with regulations made under those Acts.

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.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

11

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Independent Auditor to the Trustees of the AoC Charitable Trust (continued)

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 contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatementofthis other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of trustees’ responsibilities set out on page 10 the trustees 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.

12

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the independent Auditor to the Trustees of the AoC Charitable Trust (continued)

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 these financial statements.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

13

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Report of the Independent Auditor to the Trustees of the AoC Charitable Trust (continued)

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), the Charities Act 2011 and the charity's governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK Audit LLP

Statutory Auditor

25 Farringdon Street London

EC4A 4AB

==> picture [125 x 27] intentionally omitted <==

----- Start of picture text -----
8 Qibebs Lorn
----- End of picture text -----

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

14

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Statement of Financial Activities for the year ended 31 March 2022

Note Unrestricted Restricted Total funds Total funds
funds funds 2022 2021
£ £ £ £
Income and Endowments
Donations
Beacon Awards admin. donations - 107,250 107,250 106,500
Student oftheYear - 13,200 13,200 8,455
Othervoluntary income 25,000 - 25,000 25,000
Investment income
Intereston deposits 144 702 846 396
Total income 25,144 121,152 146,296 140,351
Expenditure
Costsofraisingfunds
Printing, postage and couriers - 75 75 -
Beacon Award Prospectus - 350 350 875
Fundraising and Publicity - 7,080 7,080 7,766
Total costs of raisingfunds - 7,505 7,505 8,641
Expenditure on charitable activities 2
BeaconAwards - 73,459 73,459 53,117
Gold Awards - 3,000 3,000 -
Student oftheYear - 4,112 4,112 3,284
Research 6,363 - 6,363 15,152
6,363 80,571 86,934 71,553
Total expenditure 6,363 88,076 94,439 80,194
Net income/(exp.) before transfers 18,781 33,076 51,857 60,157
Transfers - - . -
Net movement offunds 18,781 33,076 51,857 60,157
Reconciliation offunds 4&5
Total funds brought forward 74,307 294,052 368,359 308,202
Totalfundscarriedforward 93,088 327,128 420,216 368,359

The notes on pages 18 to 27 form part of these financial statements. The Trust has no other recognised gains or losses other than the net movement in funds for the period.

15

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Statement of Financial Position as at 31 March 2022

==> picture [477 x 356] intentionally omitted <==

----- Start of picture text -----
Note 2022 2021
£ £
Current assets
Trade debtors 10 22,630 30,500
Amounts owed by Association of Colleges 10 5,528 259
Cash at bank and in hand 411,666 346,394
439,824 377,153
Current liabilities
Creditors: Amounts falling due within 1 year: 11
Trade creditors 3,858 1,794
Accruals 5,750 2,000
Deferred Income 10,000 5,000
19,608 8,794
/
Net assets 420,216 368,359
Funds
a
Unrestricted 93,088 74,307
Restricted 327,128 294,052
Total funds 420,216 368,359
----- End of picture text -----

The notes on pages 18 to 27 form part of these financial statements.

The financial statements on pages 15-27 were approved and authorised for issue by the Board of Trustees 27 July 2022 and were signed on its behalf by:

x ‘ oo) a a in “NR 4 M White Trustee

23 August 2022

The Association of Colleges has the power to amend the financial statements after issue.

16

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

==> picture [122 x 25] intentionally omitted <==

----- Start of picture text -----
||| |---|---| |Statement|of Cashflows| |as at 31|March 2022|

----- End of picture text -----

==> picture [504 x 239] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2022|2021| |Notes|£|E| |Operating|activities| |Cash|generated/(used)|from|operations|9|64,425|(28,506)| |Net|cash|used|in|operating|activities|64,425|(28,506)| |Investing|activities| |Interest|received|846|396| |Net|cash|from|investing|activities|846|396| |Net|increase/(decrease)|in|cash|and|cash| |equivalents|65,272|(28,110)| |Cash &|cash|equivalents|at|beginning|of year|346,394|374,504| |Cash|& cash|equivalents|at end|of year|411,666|346,394|

----- End of picture text -----

17

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (Forming part of the financial statements)

1 Accounting Policies The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Trust's financial statements.

Basis ofPreparation and assessment ofgoing concern

The financial statements have been prepared in accordance with the 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) (second edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The trust constitutes a public benefit entity as defined by FRS 102.

The Trustees have received no indication from any sponsors that they will not continue their sponsorship and therefore forecasted expenditure will be covered by sponsorship for at least the next 12 months. The Trust also has adequate cash balances to settle liabilities as they fall due. Therefore, the Trustees consider that there are no material uncertainties about the Trust's ability to continue as a going concern.

Funds Structure

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed. There are three restricted funds in the Trust, Beacon Awards Fund, Gold Awards Fund and the Student of the Year Fund. Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects.

Further details of each fund are disclosed in note 4.

income recognition

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. Donations from sponsors are recognised when the Trust has been notified in writing of the amount and an invoice has been raised to the donor. Where donations are made from individuals or via an auction, income in recognised when received. In the event that a donation is made in a prior financial year to that it is intended, the income is deferred and not recognised until the date the donor has requested, Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

18

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required, and the amount ofthe obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note 2 below. Grants payable are payments made to third parties in the furtherance of the charitable objects of the Trust. They are accrued once the recipient has been notified of the grant award.

Allocation ofsupport andgovernance costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. Governance costs and support costs relating to charitable activities have been apportioned based on the ratio of income in the relevant financial year. The allocation of support and governance costs is analysed in note 2.

Costs ofraising funds

The costs of generating funds consist of fees for printing and posting the Beacon Award prospectus, along with costs marketing fees for the Student of the Year Awards.

Charitable activities

Costs of charitable activities include grants made, governance costs and support costs as shown in note 2.

Taxation

The Trust was registered as a charity in 1993. Under 471-489 of CT Act 2016 and 256 of Chargeable Gains Act 1992 the Trust is not subject to taxation on its charitable activities.

Pension Scheme Arrangements

All employees of AoC Charitable Trust are contractually employed by the parent company (AoC). Therefore, the pension liability has been recorded in the accounts of the parent company. Employees may elect to be members of the London Pensions Fund Authority (LPFA) pension fund. LPFA is a funded defined benefit scheme, whereas the Flexible Retirement Plan is a defined contribution scheme,

Financial Instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.

19

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument and are offset only when the Charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

FinancialAssets

Trade Debtors - Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Financial Liabilities

Trade Creditors - Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Derecognition OfFinancialAssets and Liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

20

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

2
Charitable Activities
2022 Grants Consultancy Support Total 2022
payable costs
£ £ £ cE
Beacon Awards - 36,646 36,813 73,459
Gold Awards - 3,000 - 3,000
Student ofthe Year 1,100 - 3,012 4,112
General - - 6,363 6,363
1,100 39,646 46,188 86,934
2021 Grants Consultancy Support Total
payable costs 2021
£ E ig E
Beacon Awards - 29,127 23,990 53,117
Student oftheYear 1,350 - 1,934 3,284
General - = 15,152 15,152
1,350 29,127 41,076 #1593
Governance & support costs Unrestricted Restricted 2022
Wages and salaries 5,100 24,900 30,000
Meetings 46 12,977 13,023
Other travel expenses 240 77 317
Audit 340 1,660 2,000
Bank charges 43 211 254
Research - 594 594
5,769 40,419 46,188
Governance & support costs Unrestricted Restricted 2021
Wages and salaries 5,400 24,600 30,000
Meetings - (500) (500)
Othertravel expenses - = =
Audit 360 1,640 2,000
Bank charges 41 184 225
Research - 9,351 9,351
5,801 35,275 41,076

21

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

Basis ofApportionment

Governance and support costs are apportioned based on the ratio of income of each fund for the financial year to which it relates. This recognises the amount of relevant expenditure in comparison for each fund.

3 Staff Numbers and Costs

For the year ending 31 March 2022 there were no direct staff within AoC Charitable Trust. There is a recharge of £30,000 from AoC to cover costs relating to admin, finance and management staff that work on behalf of the Trust (2021: £30,000 was paid to AoC).

No Trustees received any remuneration for their role as a Trustee. No Trustee received reimbursement for travel expenses and accommodation (2021: Enil).

4 Movement of Funds

1 April Income Transfer Expenditure 31 March
2021 2022
£ Zi E £
Restricted funds
BeaconAwards admin. 255,377 107,876 - 74,359 288,894
Gold Awards 22,031 - - 3,000 19,031
Student oftheYear 16,644 13,276 - 10,717 19,203
Total restricted funds 294,052 121,152 - 88,076 327,128
Unrestricted funds 74,307 25,144 - 6,363 93,088
Total 368,359 146,296 - 94,439 420,216

Purpose of Funds

The AoC Beacon Award sponsorship is used to cover the cost of independent assessment, administration, publications, events and PR etc. An amount is also made available to cover the cost of hosting the finalist announcements at the AoC Annual Conference and also the winner's announcements and celebratory event later in the year.

The Gold Awards are currently not offered. However, if they are re-introduced they will be funded through a donation from the Association of Colleges. £3k was spent in 21/22 on a consultant to carry out a review of the current process and how it can be improved. This will be used by the Trustees in 22/23 to decide if/how the Award should go ahead. They are designed to raise the profile of the further education sector by rewarding former students of FE colleges who have since gone on to excel in their chosen field or profession. (Please see page 5; Report to Trustees).

22

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

The Student of the Year Awards are funded through sponsorship. They are designed to celebrate the work of colleges in supporting students of all ages and abilities and to raise the profile of the further education sector by rewarding students of FE colleges who have overcome significant personal challenges.

The unrestricted funds are those funds that the Charity has received that were not for specific purposes and as such are held as unrestricted funds.

5 Analysis of Net Assets between Funds

==> picture [466 x 370] intentionally omitted <==

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted|Total| |funds|funds| |&|£|£| |Fund|balances|as|at 31|March|2022|are|represented|by:| |Cash|at bank|and|deposits|93,088|318,578|411,666| |Debtors|-|22,630|22,630| |Creditors|-|(3,858)|(3,858)| |Net amount owed|by group|companies|-|5,528|5,528| |Accruals|-|(5,750)|(5,750)| |Deferred|Income|-|(10,000)|(10,000)| |Total|7|93,088|327,128|420,216| |Unrestricted|Restricted|Total| |funds|funds| |£|£|£| |Fund|balances|as|at|31|March|2021|are|represented|by:| |Cash|at|bank and|deposits|74,307|272,087|346,394| |Debtors|-|30,500|30,500| |Creditors|2|(1,794)|(1,794)| |Net amount|owed|by group|companies|-|259|259| |Accruals|-|(2,000)|(2,000)| |Deferred|Income|-|(5,000)|(5,000)| |Total|74,307|294,052|368,359|

----- End of picture text -----

6 Audit Services

Fees payable to RSM UK Audit LLP and its associates in respect of both audit and non-audit services are as follows:

==> picture [472 x 42] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2022|2021| |£|£| |Audit services|- statutory|audit|of the|charity|2,000|2,000|

----- End of picture text -----

23

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

7 List of Winning Colleges for 2021-22 (Beacon Awards) May 3 2022

==> picture [459 x 337] intentionally omitted <==

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |The AoC Award|for Widening|Participation|South|Eastern|Regional|College| |Burton|&|South|Derbyshire| |The|British|Council Award|for|Internationalism|College| |The|British|Council Award|for|Internationalism|Isle|of Wight College| |The|Careers and|Enterprise|Company Award|for| |Innovation|in|Careers|and|Enterprise|Weston|College| |The|Copyright|Licensing Agency Award|for|Excellence|in| |Supporting|Creativity|Grimsby|Institute| |The|City & Guilds Award|for|College|Engagement|with| |Employers|Exeter|College| |The|Edge Award|for|Excellence|in|Real|World|Learning|_| Walsall|College| |The Jisc Award|for|Effective|Use|of|Digital|Technology|in| |Further|Education|Weston|College| |The|National|Centre|for|Diversity Award|for|Inclusive| |Learning|Leadership|Cardiff and|Vale|College| |The|NOCN|Group Award|for|Mental|Health|and|Well| |Being|Chichester|College|Group| |The|Nous|Group Award|for|Education|for|Sustainable| |Development|South|Devon|College| |The|RCU Award|for|Support|for Students|South|Devon|College|

----- End of picture text -----

The Awards are made to winning colleges following a rigorous two-stage application and moderation process, this includes an assessor team (virtual) visit to the finalist colleges. The team of independent assessors is overseen by the Chief Assessor and Trust Director; a lead assessor for each award is appointed and supported by either an additional assessor and/or sponsor assessor. Each application is assessed by the lead assessor and team; the lead will detail their team’s observations, grade the applicants at each stage and submit to the Chief Assessor. Following moderation at each stage, those being commended, becominga finalist or winning an Award are ratified by the Trust Board.

24

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

8 Related Party Transactions

The Association of Colleges (Company number 03216271), the ‘parent’ company which is also the ultimate controlling party and representative body for further education and sixth form colleges in England, Wales and Northern Ireland, together with its trading subsidiaries AoC Services Ltd and AoC Sport, make up the group. The Association of Colleges (AoC) was created in 1996 as the single voice to promote the interests of incorporated further education and sixth form colleges in England and Wales. Details of the principal activities are provided in the AoC Strategic Report. AoC exists to represent and promote the interests of colleges and to provide members with professional support services. The Association of Colleges donated £40,000 to the Trust (2021: £40,000).

All employees are employed by the Association of Colleges and recharged to the respective entities. A recharge of £30,000 was made to the Trust from AoC to cover staff costs (2021: £30,000). Accommodation charges for the Trust are met by the Association. A recharge of £2,000 was made to the Trust from AoC to cover audit costs (2021: £2,000). A recharge of £594 (2021: £7,426) was made to the Trust from AoC to cover costs for G Whitworth to work on the development of the awards. £686 of staff expenses were charged to the Trust from AoC during the year (2021: £234).

AoC Services provides assistance at the Association’s annual conference for the announcement of the finalists for the Beacon Awards. The costs for this are covered by sponsorship secured by AoC Services as part of the overall annual conference programme. AoC Awards team now manage the Celebratory event in the spring of each year. AoC Services events team manage the Beacon Awards best practice webinars for which a recharge of £9,000 has been taken (2021: Nil).

Trustee | Samuels works for the Edge Foundation who sponsored a Beacon Award and related administration for 2022, totalling £15,000 (2021: £15,000). Trustee S Frampton personally sponsored the new Green Student of the Year award £2,000 (2021: Nil). No other Trustees have related party transactions.

9 Reconciliation of net income to net cash generated from operations

2022 2021
£ £
Net income 51,857 60,157
Interest receivable (846) (396)
Increase/(decrease) in trade and otherdebtors 2,601 (30,759)
Decrease in trade and other creditors 10,814 (57,508)
Cash generated by operations 64,426 (28,506)
Cash and cash equivalents
Cash and cash equivalents represent:-
Cashatbank 411,666 346,394

25

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

10 Debtors: amounts falling duewithin oneyear
2022 2021
£ £
Trade debtors 22,630 30,500
Amounts owed bygroup 5,528 259
Total 28.198 30,759
11 Creditors: amounts falling due within oneyear
2022 2021
£ £
Accruals 5,750 2,000
Trade creditors 3,858 1,794
Deferred Income 10,000 5,000
Total 19,608 8,794

The Trust has an increase in accruals due to additional consultant fees outstanding at the end of the year relating to 21/22 activity. There is an increase in creditors at the year-end as the Trust received an invoice from the venue for the Beacon Award ceremony, this did not take place in 20/21. There is an increase in deferred income as the Trust received payment from a sponsor relating to the 22/23 awards, this was not received in the previous financial year.

26

The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2022

Notes (continued)

==> picture [482 x 509] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |12|Statement of financial|activity 2021|breakdown| |Note|Unrestricted|Restricted|Total funds| |funds|funds|2021| |£|£|£| |Income|and|endowments| |Donations| |Beacon Awards|admin.|donations|-|106,500|106,500| |Student|of the Year|donations|-|8,455|8,455| |Other voluntary|income|25,000|:|25,000| |Investment|income| |Interest|on|deposits|71|325|396| |Total|income|25,071|115,280|140,351| |Expenditure| |Costs|of raising funds| |Printing,|postage|and|couriers|-|-|-| |Beacon|Award|Prospectus|-|875|875| |Fundraising &|publicity|234|7,532|7,766| |Total|costs|of raising funds|234|8,407|8,641| |Expenditure|on|charitable|activities| |Beacon|Awards|-|53,117|53,117| |Student|of the|Year|-|3,284|3,284| |General|15,152|-|15,152| |19,152|56,401|71,553| |Total|expenditure|15,386|64,808|80,194| |Net income|before transfers|9,685|50,472|60,157| |Transfers|-|-|-| |Net movement|of funds|9,685|50,472|60,157| |Reconciliation|of funds| |Total|funds|brought forward|64,622|243,580|308,202| |Total funds|carried|forward|74,307|294,052|368,359|

----- End of picture text -----

27