The AoC Charitable Trust
Trustees’ report and financial statements for the year ended 31 March 2024
Registered charity numbers: England & Wales 1040631 Scotland SC039064
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Contents
| Report of the Trustees | 3 |
|---|---|
| Statement of Trustees' Responsibilities | 10 |
| Report of the Independent Auditor to the Trustees of the AoC Charitable Trust | 11 |
| Statement of Financial Activities | 16 |
| Statement of Financial Position | 17 |
| Statement of Cashflows | 18 |
| Notes to the Financial Statements | 19 |
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees
The Trustees present their report and the audited financial statements for the year ended 31 March 2024. 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: SC039064
Trustees:
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Trustee Dates
D Adams Appointed 8 February 2024
E Bishop Appointed 1 September 2023
P Brophy
S Frampton Resigned 31 March 2024
S Francis
S Higginson (Vice Chair) Appointed 5 July 2023
D Hughes
J Kapsalis Appointed 8 February 2024
I Munro Resigned 31 August 2023
J Robinson Appointed 8 February 2024
F Thouard Resigned 21 February 2024
M White (Chair)
Secretary Dates
J Edwards
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
Trustee to whom day-to-day running of the charity is delegated by the Trustees is E Bishop.
Registered Office Room 3.06 Statutory Auditor Bishop Fleming LLP Third Floor, The Bloomsbury Building Stratus House 10 Bloomsbury Way Emperor Way London Exeter Business Park WC1A 2SL Exeter EX1 2QS Bankers Barclays Internal Auditor Scrutton Bland LLP 28[th] Floor Fitzroy House 1 Churchill Place Crown Street Canary Wharf Ipswich London E14 5HP IP1 3LG 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 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 when new Trustees join. 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 and that the balance for the Beacon Awards is healthy at the end of the 12-month period.
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. The Student of the Year Awards came within the Trust activities in 2017 following a review of all AoC Awards and the need to ensure consistency and rigour.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
In the year ended 31 March 2024, nine Beacon Awards were offered and in the same year five Student of the Year categories were offered, along with the new AQA Project Excellence Award.
The Director and the Business Development team worked closely with all sponsors to ensure the awards meet their needs and a series of one to one meetings were held. Two awards were dropped for the 23/24 cycle due to low application numbers and no sponsorship. Remaining sponsors are engaged in the process and awards with the Beacon Award sponsors showing commitment through being part of the assessor team. Sponsors agreed with longer lead times and trail of new dissemination activities.
A review of the sponsorship packages and costs has taken place with prices being increased on many of the awards, ensuring that there is a consistent approach with all sponsors. New sponsors are being sought for future awards.
For the Beacon Awards 121 applications were received and following an independent two-stage assessment process through the autumn of 2023 and moderation in February 2024 by the AoC Chief Assessor, ten Beacon award winners were recommended. In one award category there were two winners. These decisions were ratified by the Trust Board. The winners were announced during at a ceremony in London in February 2024.
Student of the Year received 100 nominations and following a rigorous judging process 15 progressed to finalist stage. These awards are a celebration of 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. The six winners were announced at the AoC Annual Conference in November 2023 as well as invited and celebrated at the AoC award celebration event in February.
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, a proposal to reinstate the Gold Awards will be discussed at a forthcoming Board meeting, with hopes to reinstate them in 24/25.
The Trust currently has three live projects that are being manged by the AoC projects Team.
- Delivering green skills to Level 2 Construction students in London through local collaborative projects, funded by JP Morgan Chase Foundation, running October 2022 – August 2025, with a 2-year longitudinal study.
Two college groups have been commissioned to deliver the pilot projects in the London area with a focus on delivering green skills training to Level 2 construction students to help them progress into level 3 Apprenticeships and to support their progression into green jobs in the homes and building sector.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
- Creative Arts in FE, funded by Copyright Licensing Agency and UAL Awarding Body, running January – November 2024.
Programme will give FE students the change to create their own piece of creative writing, photography, visual art or the spoken word in respond to a brief set by UAL Awarding Body. The project will focus on giving students an opportunity to creatively explore issues and are key to young people and their peers, alongside building their own creative practice and portfolios. Authors and artists interviews will be carried out to inspire and share different creative processes and approaches.
- Creative Writing in FE, funded by Copyright Licencing Agency, running January 2023 – March 2024.
Encouraging students in FE to respond to a brief and submit a piece of creative writing. To allow students the opportunity to be inspired by author interviews, learn alternative processes and approaches, and build confidence to submit their work for inclusion in an anthology.
Trust Awards 2023/24
The Trust intends to use current funds to make awards to winning colleges and to cover the cost of administration and management of the whole award process from inception to completion, this includes the design of awards and criteria, working with sponsors, the launch and publicity, the assessment teams and assessment process, the various reports and guides to support applicants and the celebratory events.
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 skills and training needs of employers and government policy drivers was recognised.
Changes to the assessment process are reviewed annually and improvements made.
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 £403,687.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
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 £334,594.
The financial outturn this year provided a net positive balance (surplus) of £69,093 and this has been added to reserves which on 31 March 2024 are £509,686.
Structure, governance and management
The AoC Charitable Trust’s Trustees shall be as follows:
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Chair
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Vice Chair
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AoC Chief Executive (ex officio)
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AoC President (ex officio)
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AoC Director of Finance and Chief Operating Officer (ex officio)
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Director of the AoC Charitable Trust (ex officio)
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Up to six appointed members with the necessary skills, experience and personal attributes to fulfil the role and responsibilities of being an appointed Trustee.
The maximum permitted number of Trustees shall be 11 including ex officio members.
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. In January 2024 three new Trustees were recruited, with their appointment approved in February 2024.
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 appointed by AoC Board, and the Vice-Chair is elected by Trustees at a quorate meeting of the Trust. The new Vice Chair was elected in November 2023.
The term of office for the Chair is four years, and they may be re-appointed for a second fouryear term, subject to AoC Board approval. Any term of office as Trustee shall not count towards the maximum term of office of the Chair.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
The term of office of the Vice-Chair match 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 efficiently and to provide a buffer for uninterrupted services, a minimum reserve equivalent to £80,000, 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 £440,593 to £509,686. 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.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Trustees (continued)
Public benefit statement
Within the accounting period, 9 AoC Beacon Awards were provided, and 121 applications received. A team of independent assessors worked within a two-stage assessment process between August 2023 and February 2024. The winning colleges were ratified by the Board and were announced in February 2024. 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. Six Student of the Year Awards were provided with 100 nominations.
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.
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.
Auditor
Following a formal tender process, Bishop Flemming have been appointed new external auditors from September 2023. The Trustees would formally like to thank RSM UK Audit LLP for the many years of highly professional and supportive service provided.
M White Chair Date 15 August 2024
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities’ SORP;
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make judgments and estimates that are reasonable and prudent.
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state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Independent Auditor to the Trustees of the AoC Charitable Trust
Opinion
We have audited the �nancial statements of The Association of Colleges Charitable Trust for the year ended 31 March 2024, which comprise the statement of Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows, and the related notes, including a summary of signi�cant accounting policies. The �nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The �nancial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice e�ective for reporting periods beginning on or after 1 January 2015.
In our opinion the �nancial statements:
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give a true and fair view of the state of the Trust’s a�airs as at 31 March 2024 and of the Trust’s incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Trust’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.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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 and Financial Statements other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Trustees' Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 and Reports) Regulations 2008 requires us to report to you if, in our opinion:
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the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
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the charity has not kept sufficient accounting records; or
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the charity financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the financial statements which 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 Trust’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 Trust or to cease operations, or have no realistic alternative but to do so.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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
We have been appointed as auditor under section 152 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following.
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the nature of the sector, control environment and the Charity’s performance;
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results of our enquiries of management and the Trustees, about their own identification and assessment of the risks of irregularities;
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any matters we identified having obtained and reviewed the Charity’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
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the matters discussed among the audit engagement team regarding how and where
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
fraud might occur in the financial statements and any potential indicators of fraud.
Report of the Independent Auditor to the Trustees of the AoC Charitable Trust (continued)
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, purchase ledger, and identified the greatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We identified and obtained an understanding of the laws and regulations that are of significance to the Charity by discussions with Trustees and by updating our understanding of the sector in which the Charity operates in. Laws and regulations that are of direct significance to the Charity and of which non compliance could result in material misstatement are the Charities Act, Charities SORP and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified for the Trust, as necessary, included the following:
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reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
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reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
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enquiring of Trustees and management concerning actual and potential litigation and claims;
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performing procedures to confirm material compliance with the requirements of the above regulations;
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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reading minutes of Trustee meetings; and
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Report of the Independent Auditor to the Trustees of the AoC Charitable Trust
(continued)
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Munro FCA (Senior statutory auditor) for and on behalf of
Bishop Fleming LLP
Chartered Accountants Statutory Auditors 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS Date: 20 August 2024
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Statement of Financial Activities
for the year ended 31 March 2024
| Note Income and Endowments Donations Beacon Awards admin. donations Gold Student of the Year Green Skills Creative Writing Creative Arts Other voluntary income Investment income Interest on deposits Total income Expenditure Costs of raising funds Printing, postage and couriers Beacon Award Prospectus Fundraising and Publicity Total costs of raising funds Expenditure on charitable activities 2 Beacon Awards Gold Awards Student of the Year Green Skills Creative Writing Creative Arts Research Total expenditure Net income before transfers Transfers Net movement of funds Reconciliation of funds 4 & 5 Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds Total funds 2024 Total funds 2023 £ £ £ £ - 114,500 114,500 118,250 - - - 2,000 - 22,500 22,500 8,000 - 210,478 210,478 5,401 - 4,346 4,346 639 - 289 289 - 1,714 - 1,714 - 499 49,361 49,860 17,479 |
|---|---|
| 2,213 401,474 403,687 151,769 |
|
| - 183 183 675 - - - 285 - 13,795 13,795 10,799 |
|
| - 13,978 13,978 11,741 |
|
| - 91,433 91,433 107,669 - - - 648 - 13,564 13,564 5,294 - 210,478 210,478 5,401 - 4,346 4,346 639 - 289 289 506 - 506 - |
|
| 506 320,110 320,616 119,651 |
|
| 506 334,088 334,594 131,392 |
|
| 1,707 67,386 69,093 20,377 - - - - |
|
| 1,707 67,386 69,093 20,377 93,088 347,505 440,593 420,216 |
|
| 94,795 414,891 509,686 440,593 |
The notes on pages 19 to 28 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.
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Statement of Financial Position
as at 31 March 2024
| Note | 2024 | 2023 | |
|---|---|---|---|
| £ | £ | ||
| Current assets | |||
| Trade debtors | 10 | 12,500 | 17,750 |
| Amounts owed by Association of Colleges | 10 | 222 | 2,081 |
| Cash at bank and in hand | 1,076,157 | 805,559 | |
| 1,088,879 | 825,390 | ||
| Current liabilities | |||
| Creditors: Amounts falling due within 1 year: | 11 | ||
| Trade creditors | - | 550 | |
| Accruals | 4,810 | 2,520 | |
| Deferred Income | 574,383 | 381,727 | |
| 579,193 | 384,797 | ||
| Net assets | 509,686 | 440,593 | |
| Funds | |||
| 5 | |||
| Unrestricted | 94,795 | 93,088 | |
| Restricted | 414,891 | 347,505 | |
| Total funds | 509,686 | 440,593 |
The notes on pages 16 to 29 form part of these financial statements.
The financial statements on pages 16 to 29 were approved and authorised for issue by the Board of Trustees on date and were signed on its behalf by:
P Brophy
Trustee
15 August 2024
The Association of Colleges has the power to amend the financial statements after issue
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
| Statement of Cashflows as at 31 March 2024 Notes Operating activities Cash generated/(used) from operations 9 Net cash used in operating activities Investing activities Interest received Net cash from investing activities Net increase/(decrease) in cash and cash equivalents Cash & cash equivalents at beginning of year Cash & cash equivalents at end of year |
2024 £ 220,738 220,738 49,860 49,860 270,598 805,559 1,076,157 |
2023 £ 376,414 376,414 17,479 17,479 393,893 411,666 805,559 |
||
|---|---|---|---|---|
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The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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 of Preparation and assessment of going 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 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.
19
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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 of the 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 of support and governance 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 of raising 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.
20
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
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.
Financial Assets
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 Of Financial Assets 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.
21
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
| 2 Charitable Activities 2024 Beacon Awards Gold Awards Student of the Year Green Skills Creative Writing Creative Arts General 2023 Beacon Awards Gold Awards Student of the Year Green Skills Creative Writing General Governance & support costs Wages and salaries Meetings Other travel expenses Audit Bank charges Governance & support costs Wages and salaries Meetings Other travel expenses Audit Bank charges |
Grants payable £ 696 - 2,252 - - - - |
Consultancy Support costs Project Costs Total 2024 £ £ £ £ 37,182 53,554 = 91,433 - - - - - 11,312 - 13,564 - - 210,478 210,478 - - 4,346 4,346 - - 289 289 - 506 - 506 |
|---|---|---|
| 2,948 | 37,182 65,372 215,113 320,615 |
|
| Grants payable £ 1,773 - 1,350 - |
Consultancy Support costs Project Costs Total 2023 £ £ £ £ 55,561 50,335 - 107,669 - 648 - 648 1,000 2,944 - 5,294 - - 5,401 5,401 |
|
| - | - - 639 639 |
|
| - | - - - - |
|
| 3,123 | 56,561 53,927 6,040 119,651 |
|
| Unrestricted Restricted 2024 300 29,700 30,000 108 27,136 27,244 69 5,199 5,268 25 2,475 2,500 4 357 360 |
||
| 506 64,866 65,372 |
||
| Unrestricted Restricted 2023 - 30,000 30,000 - 19,387 19,387 - 2,146 2,146 - 2,000 2,000 - 395 395 |
||
| - 53,927 53,927 |
22
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
Basis of Apportionment
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 2024 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 (2023: £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 (2023: £nil).
4 Movement of Funds
| Restricted funds Beacon Awards admin. Gold Awards Student of the Year Green Skills Creative Writing Creative Arts Total restricted funds Unrestricted funds Total |
1 April 2023 Income Transfer Expenditure 31 March 2024 £ £ £ £ 313,137 155,883 - 93,040 375,980 20,732 - - - 20,732 13,636 30,478 - 25,935 18,179 - 210,478 - 210,478 - - 4,346 - 4,346 - - 289 - 289 - |
|---|---|
| 347,505 401,474 - 334,088 414,891 93,088 2,213 - 506 94,795 |
|
| 440,593 403,687 - 334,594 509,686 |
Interest received on restricted funds is apportioned across all income streams (excluding projects) based on the income %. This % is also used to apportion certain overheads to the various awards expenditure streams active during the year (excluding projects).
Purpose of Funds
The AoC Beacon Award sponsorship is used to cover the cost of design of the awards and criteria, working with sponsors, launch and publicity, the independent assessment team, administration, publications, and celebration events. An amount is also made available to cover the cost of hosting the finalist announcements at the AoC Annual Conference and the winner’s announcements and celebratory event later in the year.
23
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
The Gold Awards are currently not offered; however, the original programme was independently reviewed in 21/22 and is now under consideration as part of wider review of the overall awards programme. All recommendations will be considered by the Trustees in 2024 to decide if/how the Award should go ahead. This award was designed to raise the profile of the further education sector by rewarding former students at FE colleges who have since gone on to excel in their chosen field or profession.
The Student of the Year Awards are funded through sponsorship. The funding is used for the administration of the awards including assessment, event celebration, prize money and PR. 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 funding for the three current projects is used to deliver the contracted key performance indicators and funding requirements along with covering the project management resources and all expenditure over the life of the projects.
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
| Unrestricted funds Restricted funds Total £ £ £ Fund balances as at 31 March 2024 are represented by: Cash at bank and deposits 94,795 981,362 1,076,157 Debtors - 12,500 12,500 Creditors - - - Net amount owed by group companies - 222 222 Accruals - (4,810) (4,810) Deferred Income - (574,383) (574,383) Total 94,795 414,891 509,686 Unrestricted funds Restricted funds Total £ £ £ Fund balances as at 31 March 2023 are represented by: Cash at bank and deposits 93,088 712,471 805,559 Debtors - 17,750 17,750 Creditors - (550) (550) Net amount owed by group companies - 2,081 2,081 Accruals - (2,520) (2,520) Deferred Income - (381,727) (381,727) Total 93,088 347,505 440,593 |
Unrestricted funds Restricted funds Total £ £ £ 94,795 981,362 1,076,157 - 12,500 12,500 - - - - 222 222 - (4,810) (4,810) - (574,383) (574,383) |
Unrestricted funds Restricted funds Total £ £ £ 94,795 981,362 1,076,157 - 12,500 12,500 - - - - 222 222 - (4,810) (4,810) - (574,383) (574,383) |
|---|---|---|
| 94,795 414,891 509,686 |
||
| Unrestricted funds Restricted funds Total £ £ £ 93,088 712,471 805,559 - 17,750 17,750 - (550) (550) - 2,081 2,081 - (2,520) (2,520) - (381,727) (381,727) |
||
| 93,088 347,505 440,593 |
24
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
6 Audit Services
Fees payable to Bishop Fleming and its associates in respect of both audit and non-audit services are as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Audit services – statutory audit of the charity | 2,500 | 2,000 |
25
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
7 List of Winning (and highly commended) Colleges for 2023-24 (Beacon Awards)
----- Start of picture text -----
Award Name College
Gower College Swansea
The AoC Award for
(Capital City College Group, Lancashire Adult Learning (Nelson and
Widening Colne College Group), New City College)
Participation
The AoC Award for
Excellence in
Governance Joint winners Barnsley College and East Kent Colleges Group
The Careers and
Enterprise
Company Award
for Innovation in Middlesbrough College
Careers and
Enterprise (Basingstoke College of Technology, Coleg Sir Gar, Coleg Ceredigion)
New College Durham
(Capital City College Group, College of West Anglia, East Kent Colleges
Group (EKC Group), Redcar and Cleveland College (Education Training
Collective), Salford City College Group (SCC Group), South Eastern
The City & Guilds
Regional College, Telford College, The Sheffield College, Warrington &
Award for College
Vale Royal College)
Engagement with
Employers
Education Partnership North East
The Edge Award for
Excellence in Real
( Cambridge Regional College, Heart of Birmingham Vocational College,
World Learning The Isle of Wight College, South Eastern Regional College)
The Jisc Award for
Effective Use of
Hull College
Digital Technology
in Further (Cardiff and Vale College, NPTC Group of Colleges, Sunderland College
Education (Education Partnership North East)
Barnsley College
The NOCN Group
Award for Mental
(Barking and Dagenham College, Basingstoke College of Technology, Coleg
Health and Well Cambria, Inspire Education Group, Kirklees College, Salford City College
Being Group, Shrewsbury Colleges Group)
The Inenco Award Suffolk New College
for Education for
Sustainable (New City College, Shipley College, Solihull College & University
Development Centre, Weymouth College)
The RCU Award for Bridgwater & Taunton College
Support for
Students (Coleg Cambria, College of West Anglia)
----- End of picture text -----
26
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
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 managed by the Trust Manager and 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, becoming a finalist, or winning an Award are ratified by the Trust Board.
The assessor team is refreshed each year by inviting the previous year’s winning college of an award category to nominate a member of staff to join the team. The team also include a sponsor assessor.
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 (2023: £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 (2023: £30,000). Accommodation charges for the Trust are met by the Association. A recharge of £2,500 was made
to the Trust from AoC to cover audit costs (2023: £2,000). £5,958 of staff expenses were charged to the Trust from AoC during the year (2023: £4,634). A recharge of £45,630 was made to the Trust from AoC to cover salary costs for Philip Parle who is working on the Green Skills project (2023: £4,274).
AoC Services provides assistance at the Association’s annual conference for the announcement of the finalists for the Beacon Awards and winners of the Student of the Year awards. The costs for this are covered by sponsorship secured by AoC Services as part of the overall annual conference programme. However, accommodation recharges totalled £2,250 (2023: £NIL). AoC Services managed the Celebratory event for the first time in the spring for which a recharge of £8,650 has been taken (2023: £NIL). A recharge to AoC Services of £90 was incurred for attendance at the English & Maths conference as part of ongoing project work within the Trust (2023: £90).
27
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
| 10 Debtors: amounts falling due within one year Trade debtors Amounts owed by group Total 11 Creditors: amounts falling due within one year Trade creditors Accruals & Deferred Income Total 9 Reconciliation of net income to net cash generated from Net income Interest receivable Decrease in trade and other debtors Increase in trade and other creditors Cash generated by operations Cash and cash equivalents Cash and cash equivalents represent:- Cash at bank |
operations 2024 £ 69,093 (49,860) 7,109 194,396 |
operations 2024 £ 69,093 (49,860) 7,109 194,396 |
operations 2024 £ 69,093 (49,860) 7,109 194,396 |
2023 £ 20,377 (17,479) 8,327 365,189 |
2023 £ 20,377 (17,479) 8,327 365,189 |
|---|---|---|---|---|---|
| 220,738 1,076,157 |
376,414 805,559 |
||||
| 2024 £ 12,500 222 |
2023 £ 17,750 2,081 |
||||
| 12,722 | 19,831 | ||||
| 2024 £ - 579,193 |
2023 £ 550 384,247 |
||||
| 579,193 | 384,797 |
There is an increase in deferred income as the Trust has three projects underway that will span over into 24/25, hence income has been deferred to cover expenditure incurred in 24/25.
28
The AoC Charitable Trust Trustees’ report and financial statements for the year ended 31 March 2024
Notes (continued)
| 12 | Statement of financial activity 2023 breakdown | Statement of financial activity 2023 breakdown | ||
|---|---|---|---|---|
| Unrestricted | Restricted | Total funds | ||
| funds | funds | 2023 | ||
| £ | £ | £ | ||
| Income and endowments | ||||
| Donations | ||||
| Beacon Awards admin. donations | - | 118,250 | 118,250 | |
| Gold | - | 2,000 | 2,000 | |
| Student of the Year donations | - | 8,000 | 8,000 | |
| Green Skills | - | 5,401 | 5,401 | |
| Creative Writing | - | 639 | 639 | |
| Investment income | ||||
| Interest on deposits | - | 17,479 | 17,479 | |
| Total income | - | 151,769 | 151,769 | |
| Expenditure | ||||
| Costs of raising funds | ||||
| Printing, postage and couriers | - | 675 | 675 | |
| Beacon Award Prospectus | - | 285 | 285 | |
| Fundraising & publicity | - | 10,799 | 10,799 | |
| Total costs of raising funds | - | 11,741 | 11,741 | |
| Expenditure on charitable activities | ||||
| Beacon Awards | - | 107,669 | 107,669 | |
| Gold Awards | - | 648 | 648 | |
| Student of the Year | - | 5,294 | 5,294 | |
| Green Skills | - | 5,401 | 5,401 | |
| Creative Writing | - | 639 | 639 | |
| - | 119,651 | 119,651 | ||
| Total expenditure | - | 131,392 | 131,392 | |
| Net | income before transfers | - | 20,377 | 20,377 |
| Transfers | - | - | - | |
| Net | movement of funds | - | 20,377 | 20,377 |
| Reconciliation of funds | ||||
| Total funds brought forward | 93,088 | 327,128 | 420,216 | |
| Total funds carried forward | 93,088 | 347,505 | 440,593 |
29