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2022-03-31-accounts

REPORT AND ACCOUNTS I APRIL 2021-31 MARCH 2022 education for health SUPPOftTING HEALTH IMPROVEMENT

AT NO TIME HAS APPROPRIATE EDUCATION AND TRAINING BEEN MORE IMPORTANT

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2 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022
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CONTENTS

Message from the Chairman 4
Trustees Report
2021/22 A Year in View 5
Objectives and Activities 6
Achievements and Performance 9
Structure and Board 13
Statement of Trustee Responsibilities 15
Auditors Report 16
Financial Statements 20
Trustees, Offcers and advisors 42

Registered Office: 1 Lowes Lane Business Park, Lowes Lane, Wellesbourne, Warwickshire CV35 9RB Registered in England and Wales

Charity Registration Number: 1048816 Company Registration Number: 03090774

Education for Health is a company limited by guarantee

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 3

MESSAGE FROM OUR CHAIRMAN EDUCATION FOR HEALTH CHAIR’S REPORT 2021-22

2021 was a remarkable year, as the Covid 19 pandemic continued, an unprecedented global vaccination effort was undertaken to arrest it effects.

Despite this it remained a formidable challenge to deliver routine healthcare and with this the ongoing education and training that clinicians need. It is right to acknowledge the extraordinary effort of the team at Education for Health, led by Linda Edwards, who evolved offerings to support the covid effort and healthcare professionals seeking to continue learning. This was achieved by providing the education and skilling people needed in ways most easily accessible to those on the front line of the NHS, by virtual training and short bite size learning.

We acknowledge the core team, our associates, volunteers and partnering organisations who have made this happen. We recognised the agility of approach was exactly what was required to enable people to access training and achieve qualifications. This interactive blended online training makes our accredited and nonaccredited materials accessible to people when they were in a position to study.

We note, in particular the University of Hertfordshire which has been an excellent partner as we consolidate the online offerings and seek to bring new post graduate offerings with an expanding new portfolio of Postgraduate Certificates and Diplomas. These deliver the dual purpose of providing recognised qualifications and disease specific training, to underpin evidence based practice, supporting the care of people with long term conditions.

From a business perspective the degree of uncertainty and change within the field in which we operate and the world in general has led us to fundamentally review our operating model;

this resulted in organisational changes to ensure financial stability for the charity going forward. This, as with the reformulating of the educational offering was a radical process, we thank everyone involved for their endeavour and service to Education for Health and the people we seek to serve.

As the charity looks forward, we recognise the mammoth task facing the NHS in remobilising as it seeks to re-establish guideline quality care.

There is a reality that what we have to offer has never been more needed as the NHS needs to support and skill its work force across all care sectors. We are also mindful of the needs of the non-regulated sector. Our courses are relevant whether it is skilling hospital teams in for example non-invasive ventilation or community diagnostic centre staff to deliver key diagnostic test such as spirometry. Across the long term conditions spectrum whether diabetes, cardiac or respiratory and associated co morbidities, we are committed to aid the remobilisation of services and to enable professionals to have the qualifications and skills to deliver high quality care and the best outcomes for people with these conditions.

Dr Robert Angus, Chairman

March 2022

4 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

2021-22 A YEAR IN VIEW:

ACTIVITIES, ACHIEVEMENTS AND IMPACT

157 COURSES DELIVERED

1,818 HEALTHCARE PROFESSIONALS COMPLETED OUR COURSES

£227,185 BURSARIES AWARDED TO LEARNERS

OUR PEOPLE

The Chief Executive, Dr Linda Edwards, is supported by an Executive Team comprising, Deputy Chief Executive, Becky Harkcom; Director of Partnerships and Customer Experience, Adam Smith; Director of Learning Design and Quality, Ann Saxon; Associate Director of the Marketing and Intelligence Hub, Sarah Brighton (until December 2021) and Stephen Ryan, Director of Innovations (until February 2022).

The organisation comprises of a core staff of 21 supported by a team of clinical and elearning design associates. Together we provide high quality education and training. We are also privileged to work with volunteers from time to time, who add a further dimension to our work.

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 5

OBJECTIVES AND ACTIVITIES: VISION, PURPOSE, OBJECTS AND AIMS

Our vision is a world where people with Long Term Conditions have access to the help and support they need to live healthy and fulfilling lives.

We have 3 ambitions and 3 enablers, which will assist us to achieve our mission over the next 3 years.

The Charity’s objectives are:

1. To promote the health and wellbeing of the general public through the provision of education to those who can influence others, including patients and the public, in such areas as the trustees of the Charity may at their absolute discretion from time to time determine;

2. For the public benefit, to relieve sickness through the promotion of preventative measures, and the provision of excellence in care, treatment and management of disease, and the carrying out of research into such diseases as the trustees of the Charity may at their absolute discretion from time to time determine;

3. The furtherance and pursuance of charitable purposes which are exclusively charitable according to the laws of England and Wales as the trustees of the Charity may at their absolute discretion from time to time determine.

6 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

OUR VISION AMBITIONS AND ENABLERS

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1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 7

OVERVIEW OF OUR ACTIVITIES

ACHIEVEMENTS AND IMPACT

What we intended to do in 2021/22

1

Grow our market share

Our focus is to raise the awareness of the breadth of experience of Education for Health and its applications to all healthcare professionals, to support NHS priorities including disease prevention, mental health, obesity and diabetes.

Build multiple income streams

2

The majority of our sales comes from direct sales through our website or partnerships with commissioners. We have now developed a subscription model to enable access and discussion in specialist areas. A further income stream will be created in 2021 with the launch of our primary care profiling tools.

3 Deliver professional, high quality supported learning

A quality assurance project will be completed in 2021 allowing quality measures to be embedded within our learning material and support services.

4 Stay ahead of the competition

The creation of a marketing intelligence library will help enable our unique offerings to stay ahead of the competition.

5

Improving Health Outcomes

Our newly developed primary care profiling tools are designed to enable practices to target the people most in need.

What we achieved in 2021/22

The ongoing impact of the pandemic, catalysed our shift to;

We developed an Interactive Blended Online Learning (IBOL) model to deliver our portfolio which includes live dedicated support sessions to enable shared learning and individual support.

We created a Covid 19 online resource centre focused on providing the latest information, guidance and expert support. This enabled healthcare professionals to have access to the emerging learning in real time and supported the national vaccination programme.

We temporarily downsized our infrastructure and refocused our portfolio on respiratory conditions with a plan to open this up as soon as the health market began to stabilise.

We created and delivered a new Higher Education Certificate level programme in partnership with NHS England, designed to support healthcare assistants to make the transition into Nursing Associates.

We commence a programme of automation and streamlining to increase efficiencies and create a high quality customer experience.

We worked with pharmaceutical industry partners , Chiesi to provide bursaries for healthcare professionals to access the knowledge and know how they needed.

We wrote clinical content and delivered a range of specialist Learn and Lunch sessions for partner organisations.

We launched our Learning Academy with a series of live webinars. The Learning Academy provides continual professional development opportunities for Healthcare professionals from ‘one off’ webinars in specialist areas through to (CPD) accredited courses.

8 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

ACHIEVEMENTS AND PERFORMANCE

FINANCIAL PERFORMANCE SUMMARY

£’000 Income Expenditure Operating
result		 Net Exceptional
income
2019/20 and
government
grant 2020/21		 Investment
gains/(losses)		 Net
Movement
2021/22 1,315 (1,748) (433) - 114 (318)
2020/21 988 (1,662) (674) 149 405 (119)
Movement 327 (86) 241 (149) (291) (199)

FINANCIAL RESULTS FOR THE YEAR

Income for the year of £1,315k is 33% higher than the previous year (excluding government grant) demonstrating the slow upturn in demand resulting from our adaption of portfolio content and delivery method to meet the changing needs of healthcare professionals. Both years results have been directly impact by Covid-19

Our operating loss and relatively poor investment performamce has led to reduction in reserves of £318k, thus in autumn 2021 we underwent a

programme of organisation change which will lead to an ongoing future reduction in our fixed cost to support the charity’s sustainability.

Investments fell in value during the year by £14k as a result of global political uncertainty , realised gains of £129k were secured in 2021/22 compared to total unrealised and realised gains of £405k achieved in 2020/21.

DESIGNATED RESERVES

Our £0.53m designated reserves are made up of:

3. £0.123m being fixed assets not readily convertible to cash.

1. The designated development fund of £0.15m, is used to fund and support our strategic initiatives.

2. The operating fund of £0.257m reflects our moral obligation to support our existing learners to complete their studies, the reduction from last year reflects the teach out of the undergraduate programme and the change in our business model.

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 9

RESERVES POLICY

As part of the 2021/22 budget setting process, our Finance, Audit and Risk Committee reviewed Education for Health’s Reserves Policy. It was confirmed that the policy agreed previously was still valid and that Education for Health maintained free reserves:

As a result, a target free reserve of £1m was agreed.

At 31 March 2022, unrestricted free reserves of the group, excluding designated reserves, amounted to £0.896m, calculated as follows:

Group
£’000
Total funds 1,427
Less restricted funds –
Less designated reserve (531)
Free reserves 896

LOOKING FORWARD

We operate in an environment of constant change. The NHS and wider health and care system have been under extreme pressure since the start of the Covid pandemic.

Health and care professionals have never experienced such unrelenting pressure; add to this the planned Javid review and we have a system in turmoil. At no time has appropriate education and training been more important, however in general there will be less time for traditional programmes. Access to easily digestible education and training will be paramount during this period, providing

people with access to the vital knowledge and know how to enable them to practice safely. We will diversify and flex our intellectual property to provide learning in ways pertinent to the needs of healthcare professionals throughout this period and beyond.

10 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

GOING CONCERN

The impact of Covid 19 continued to cause uncertainty within the wider environment.

Winter pressures combined with reduced staff numbers led to some staff being unable to be released for training courses. Leading to a growth of licenses purchased but unable to convert to income, which commences when the learner starts their course.

In Autumn 2021 a programme of reorganisation was launched to increase our financial stability and to ensure the longevity of the charity to support our beneficiaries

The aim of the reorganisation structure was to reduce our fixed cost base, and provide the capabilities to deliver our strategic direction and the changes made to our delivery model in 2020/21.

The Trustees continue to closely monitor the financial position of the charity, to ensure that there is sufficient cash to support the financial and moral obligations of the charity in the foreseeable future.

Cash has been maximised and remains stable by:

In April 2022 the Board of Trustees approved a budget which reflects these changes. The budget forecasts that a break-even position will result in 2022/23 reflecting a small increase in sales of our core and partnership products, and reduced costs.

Overarching objectives until 2025 have been agreed, setting plans for a continued growth in income.

With our revised business model and business plans in place, the Board has reviewed the financial sustainability of the group and are of the opinion that Education for Health will continue to have adequate resources and is a going concern.

INVESTMENT POLICY AND PERFORMANCE

Education for Health seeks to produce the best financial return within an acceptable level of risk. On behalf of the Board, the Finance, Audit and Risk Committee monitors the activities and performance of the investment managers EFG Harris ALLday who were appointed in May 2021. Our investment policy states:

ongoing activities of Education for Health. A target income is agreed with the investment manager on an annual basis to enable effective budgeting.

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 11

The Charity monitors investment performances against predetermined criteria and benchmarks. There is currently considerable uncertainty within the markets, as a result of geopolitical factors. This resulted in unrealised losses in the year of £14k (2020/21 gain for the year £255k). Realised gains of £129k were secured in the year compared with £150k in 2020/21. Investment income of £56k (2020/21 £75k) was received.

RISK

Education for Health has defined its strategic risks as those matters which could inhibit the achievement of our charitable objects.

A dynamic process is in place that allows the Board, Senior Leadership Team and all staff to identify events or actions, which may adversely affect the achievement of our strategy.

Once identified, appropriate systems and procedures are put in place to mitigate the risks. The Senior Leadership Team, which equates to our Executive Team, reviews the risks regularly, whilst the Board reviews the risk register at Finance, Audit and Risk Committee and Board Meetings in order to monitor progress made in mitigating the risks.

The major risks identified relate to the long term financial sustainability of the charity:

1. Dependency on a limited number of income sources

2. Ability of reserves to support the charity in the long term

3. Increased risk from cyber security attacks

4. The uncertainty around current trading conditions, due to the pandemic.

We are working closely with third party advisers to minimise the risk of security attacks and to ensure their impact is reduced, should it happen.

We continue to closely monitor the market needs to ensure we are able to provide a flexible response to the currently unknown future conditions.

The Board of Trustees is satisfied that reasonable steps are being taken to limit the probability and impact of these risks.

12 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

STRUCTURE AND BOARD

Education for Health is a Company Limited by Guarantee and a Charity registered with the Charity Commission. The Charity is regulated by its Memorandum and Articles of Association adopted on 30 July 1995 and last amended on 27 September 2016.

The Board of Trustees (who are also Directors) are responsible for the overall governance of the Charity. The Articles specify that there are to be a minimum of five Trustees but no maximum is specified. Trustees are expected to attend a Strategic Planning Day each year where, with the Executive Team, the long-term aims of the Charity are developed. In addition to the Annual General Meeting, the Board meets four times per annum when Trustees review the Charity’s performance, future operating plans and budgets. Extraordinary Board Meetings are also held as required. Meetings are sometimes convened via a teleconference call, to enable wider participation. The Board, Chief Executive and Senior Leadership Team are also involved in a joint annual strategic planning event.

There are two formal sub-committees of the Board of Trustees which are accountable to the Board; the Finance, Audit and Risk Committee and the Nominations Committee. Each committee has its own Terms of Reference and reports to the full Board.

BOARD INDUCTION

The appointment of new Trustees follows advertisements placed with specialist bodies and stakeholders. Applicants are shortlisted against agreed criteria and interviews carried out by a representative panel of Trustees of the Charity. The preferred candidate is invited to join the Board subject to approval by the full Trustee Board and formal vetting. New Trustees are offered an induction and encouraged to become involved in the Charity’s activities and sub-committees.

MANAGEMENT

The Board delegates the power in connection with the day-to-day management and administration of the Charity to the Chief Executive. Performance and risk is measured against strategic objectives, with regular reporting to the Board, so that decisions made under delegated power can be ratified by the full Board. The Chief Executive is responsible for the day-to-day management of the Charity’s affairs and for implementing policies agreed by the Board.

REMUNERATION

The purpose of the Nominations Committee is:-

The remuneration and rewards policy aims to pay all staff fairly and in a way that ensures we attract and retain the right skills to have the greatest impact on delivering the Charity’s objectives. The Board of Trustees determines the salary of the Chief Executive. The Chief Executive recommends salary increases for the Senior Leadership team of the Charity for Board approval. Pay awards are made after taking into account Retail Price Index, the performance of the Charity and the extent to which its objectives have been achieved, and the contribution of the individual to achieving the Charity’s objectives, which is measured through the annual appraisal process. All salaries are

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 13

benchmarked against comparable roles in similar sectors.

For other staff, the Board of Trustees have delegated responsibility to the Internal Remuneration Committee to:

Purpose of the Finance, Risk and Audit Committee is to support Trustees in meeting their responsibilities for risk management, internal controls and efficient and effective use of funds.

The Charity has the following subsidiaries:Education for Health Trading Limited (100% owned), National Respiratory Training Centre Limited (100% owned) dormant since its incorporation, and Respiratory Education UK (100% owned). All subsidiaries were dormant during 2020/21.

We have two Patrons. Mrs Greta Barnes MBE, the Founder of our Charity, and Baroness Julia Cumberlege CBE, DL.

TRUSTEES’ RESPONSIBILITIES

The Trustees (also Directors of Education for Health for the purposes of company law) 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).

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

1. Select suitable accounting policies and then apply them consistently

2. Observe the methods and principles in the Charities SORP

3. Make judgements and estimates that are reasonable and prudent

4. 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 the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the Group and, hence, taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

AUDITORS

The Directors resolved that Dains Audit Limited be reappointed as auditors.

14 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

STATEMENT AS TO THE DISCLOSURE OF INFORMATION TO AUDITORS

The Directors 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. Each of the Directors has confirmed that they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the Auditors.

Approved by the Board on 1st November 2022 and signed on its behalf by:

Robert Angus

Director/Chairman, the Board of Trustees

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 15

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF EDUCATION FOR HEALTH

OPINION

We have audited the financial statements of Education for Health (the ‘charitable company’) and its subsidiary undertakings (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Cash Flow Statement 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 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 group and charitable company 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 group and charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

16 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires 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 14, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

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

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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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and noncompliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

18 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

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.

OTHER MATTERS

The financial statements of the group and charitable company for the year ended 31 March 2021 were audited by RSM UK Audit LLP who expressed an unmodified opinion on these financial statements on 3 August 2021.

USE OF OUR REPORT

This report is made solely to the group’s and charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members Those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Gurney FCCA (Senior Statutory Auditor)

For and on behalf of Dains Audit Limited

Statutory Auditor

Chartered Accountants

Birmingham

Date: 2nd November 2022

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 19

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Consolidated Income and Expenditure Account) for the year ended 31 March 2022

Notes
Income and
Endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Government grants
36
Investments
7
Total Income
Expenditure on:
Raising funds
11
Charitable activities
12
Total Expenditure
Net gains on investments
22
Net Movement in Funds
for the Year
Reconciliation of Funds:
Total funds
brought forward
Total Funds
Carried Forward		 Unrestricted
Fund
£
35,991
1,200,056
-
-
56,506
1,292,553
14,588
1,707,542
1,722,130
114,459
(315,118)
1,742,248
1,427,130		 Restricted
Fund
£
22,500
-
-
-
-
22,500
-
25,372
25,372
-
(2,872)
2,872
-		 12 months to
31/3/2022
Total
£
58,491
1,200,056
-
-
56,506
1,315,053
14,588
1,732,914
1,747,502
114,459
(317,990)
1,745,120
1,427,130		 12 months to
31/3/2021
Total
£
22,978
864,130
26,361
148,679
75,229
1,137,377
27,282
1,634,822
1,662,104
405,038
(119,689)
1,864,809
1,745,120

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

20 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

BALANCE SHEETS

AT 31 MARCH 2022

REGISTERED NUMBER: 03090774

Notes
Fixed Assets:
Intangible assets
21
Tangible assets
20
Investment assets
22
Total Fixed Assets
Current Assets:
Debtors and prepayments
23
Cash at bank and in hand
32
Total Current Assets
Liabilities:
Creditors falling due within
one year
24
Creditors falling due after
one year
24
Fees received in advance
25
Total Net Liabilities
Total Assets less Liabilities
Net Assets
The Funds of the Charity:
Restricted Funds
27
Unrestricted funds
26
Total Charity Funds		 Group
31/03/2022
£
39,747
83,800
2,262,339
2,385,886
198,995
195,453
394,448
284,293
81,667
987,244
1,353,204
(958,756)
1,427,130
1,427,130
-
1,427,130
1,427,130		 Group
31/03/2021
£
46,632
119,427
2,844,524
3,010,583
210,969
331,896
542,865
1,024,131
-
784,197
1,808,328
(1,265,463)
1,745,120
1,745,120
2,872
1,742,248
1,745,120		 Charity
31/03/2022
£
39,747
83,800
2,262,341
2,385,888
199,138
195,359
394,497
284,293
81,667
987,244
1,353,204
(958,707)
1,427,181
1,427,181
-
1,427,181
1,427,181		 Charity
31/03/2021
£
46,632
119,427
2,844,526
3,010,585
211,112
331,802
542,914
1,024,131
-
784,197
1,808,328
(1,265,414)
1,745,171
1,745,171
2,872
1,742,299
1,745,171

The notes on pages 23 to 41 form part of these accounts.

Signed by Robert Angus

Chairman of Trustees on behalf of the Trustees

Approved by the Trustees and authorised for issue on 1 November 2022

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 21

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash Flows from Operating Activities:
Net cash used in operating activities
31
Cash Flows from Operating Activities:
Dividends and interest from investments
Purchase of tangible fxed assets
Purchase of intangible fxed assets
Proceeds from sale of fxed assets
Proceeds from sale of investments
Purchase of investments
Cash generated/(used in) provided by
Investing Activities
Increase/(decrease) in Cash and Cash
Equivalents in the year
Cash and cash equivalents at the
beginning of the year
Total Cash and Cash Equivalents at the
End of the Year
32		 Group
12 Months to
31/03/2022
£
(879,211)
56,506
(897)
(9,485)
2,506,750
(1,810,106)
742,768
(136,443)
331,896
195,453		 Group
12 Months to
31/03/2021
£
(156,988)
75,229
-
(38,368)
-
1,283,136
(1,157,395)
162,602
5,614
326,282
331,896

22 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

material recourse either to the investment portfolio or to external debt. Based on this, the Trustees consider that adequate resources exist to continue in operational existence for the foreseeable future and that it is appropriate to adopt the going concern basis in preparing the financial statements.

a) Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Education for Health meets the definition of a public benefit entity under the Charities Act, assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). The financial statements are prepared in Sterling which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £, unless otherwise stated.

b) Preparation of the Accounts on a Going Concern Basis

The Charity has prepared detailed forecasts of both income and expenditure and cash on a Group basis. Reserves of the Group currently stand at £1,427k (31 March 2021: £1,745k). Having considered these documents together with risk and reserves policy the Trustees are of the view that the Charity is a going concern. The reserves are represented by investment assets of £2,262k (31 March 2021: £2,845k), cash of £195k (31 March 2021: £332k) and liabilities of £1,353k (31 March 2021: £1,808k).

Taking into account the impact of the COVID-19 pandemic the Trustees have modelled forecasts that show that the charity can absorb deficits within available working capital and without any

c) Group Financial Statements

The financial statements consolidate the results of the Charity and its wholly owned subsidiaries on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006. The Charity has also taken advantage of the exemption available under FRS 102 and has not presented a statement of cash flows for the parent.

d) Fund Accounting

The general fund consists of the accumulated surpluses on the consolidated statement of financial activities, less any funds designated by the Directors for specific purposes.

Designated funds are funds which have been set aside by the Directors for specific purposes. The purpose of the designated funds is set out in the notes to the accounts.

Restricted funds are funds for which the donor has specifically restricted the purpose for which they can be used. The balance in the fund represents the amount still remaining for future expenditure.

e) Fixed Assets and Depreciation

Fixed assets are stated at cost less accumulated depreciation. The cost of minor additions to fixed assets, defined as those costing less than £85 each, is expensed in the year in which the cost is incurred.

Depreciation is provided to write off the cost of assets by equal instalments over their estimated useful lives as follows:-

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 23

Equipment, furniture, fixtures and fittings - 5-20 years

Laptops - 3 years

Other Computer equipment - 5 years

Short leasehold property improvements - over lease term

Costs of raising funds are primarily investment management fees and other expenses incurred in trading activities that raise funds.

Charitable activities expenditure primarily includes costs associated with educational activity, books and resources and research activity. They include both direct and support costs relating to these activities.

f) Investments

Listed investments are included in the accounts at fair value. Gains or losses on revaluation are recognised in the SOFA and credited or debited to the relevant funds.

Investments in subsidiaries are stated at cost.

g) Investment income

Dividends are credited to the SOFA when receivable.

Interest on cash held is accrued on a daily basis and is credited on this basis to the SOFA.

h) Government Grant

The Government grant received are included in the SOFA when legally entitled to the income and there is reasonable assurance all conditions are met.

i) Pension costs

The Charity operates defined contribution schemes available to all of its employees. The schemes’ funds are administered by Trustees and are independent of the Charity’s finances. The Charity’s contributions to the schemes are charged in the accounts as they accrue.

j) Income

All incoming resources are included in the SOFA when the Charity is legally entitled to the income. Course fee income is recognised and included in the SOFA for the financial year in proportion to the total fee by a measure of the course length elapsed and value of services delivered by time and materials.

k) Expenditure and Irrecoverable VAT

All resources expended are accounted for on an accruals basis. Costs are classified under headings that aggregate all similar costs and which can then be related to costs of raising funds and charitable activities.

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities.

Support costs include central functions and governance costs and have been allocated to activity cost categories on a basis consistent with the use of resources by activities irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

l) Research

Expenditure on research is written off as incurred, other than when there is a defined project with certain income.

m) Operating Leases

The rentals payable under operating leases are charged/credited in the SOFA on a straight line basis over the lease term.

n) Intangible Fixed Assets

- Development Costs

Expenditure on developing modules is carried forward to match against future revenue. Following the change in our portfolio the costs brought forward have been amortised in the year. As a result, at 31 March 2022, £ 8,712 (2021: £8,386) has been carried forward.

- Software/Website

Expenditure on software and website development is carried forward to match against expected future benefit. As a result, at 31 March 2022, £ 31,035 (2021: £34,701) has been carried forward. The expenditure is being written off over three years (software) and five years (website).

- Other

The carried forward other intagible asset of £3,545 has been written down to nil at the 31st March 2022 following a policy to write off over 5 years.

24 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

o) Recognition of Liabilities

Liabilities are recognised when either a constructive or legal obligation exists.

p) Basis of Consolidation

The consolidated financial statements incorporate those of Education for Health and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2022.

q) Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

r) Donated services

In accordance with the Charities SORP (FRS 102) the general volunteer time of the Trustees and administration volunteers is not recognised.

s) Critical Accounting Estimates and Judgements

All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In capitalising course development costs and their subsequent amortisation, management makes judgements as to the future viability of courses and the likely life of the courses.

2. LEGAL STATUS

The Charity is a Company Limited by Guarantee incorporated in England and Wales. Linda Edwards (Chief Executive) and all the current Trustees as shown on Page 42 are members of the Charity. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

The address of the Charity’s registered office and principal place of business is 1 Lowes Lane Business Park, Lowes Lane, Wellesbourne, CV35 9RB.

3. FINANCIAL PERFORMANCE OF THE CHARITY

The consolidated statement of financial activities includes the results of the Charity’s wholly owned subsidiaries Respiratory Education UK and Education for Health Trading Limited.

The results of the parent company Education for Health were as follows:

Total Income
Net Expenditure for the Year		 Group
12 Months to
31/03/2022
Total
£
1,315,053
(315,118)		 Group
12 Months to
31/03/2021
Total
£
1,137,377
(119,689)

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 25

4. DONATIONS AND LEGACIES

Covid Programme/Fact Sheet
Sundry Donations		 General
Fund
£
-
35,991
35,991		 Restricted
Funds
£
22,500
-
22,500		 12 months to
31/03/2022
Total
£
22,500
35,991
58,491		 12 months to
31/03/2021
Total
£
22,978
-
22,978

5. INCOME FROM CHARITABLE ACTIVITIES

Educational Activity
Research Activity		 General
Fund
£
1,193,043
7,013
1,200,056		 Restricted
Funds
£
-
-
-		 12 months to
31/03/2022
Total
£
1,193,043
7,013
1,200,056		 12 months to
31/03/2021
Total
£
857,117
7,013
864,130

6. INCOME FROM OTHER TRADING ACTIVITIES

Room hire
Sundry other trading activities		 General
Fund
£
-
-
-		 Restricted
Funds
£
-
-
-		 12 months to
31/03/2022
Total
£
-
-
-		 12 months to
31/03/2021
Total
£
-
26,361
26,361

7. INVESTMENT INCOME

Dividends and interest from listed investments
Interest on cash held
Total		 General
Fund
£
56,506
-
56,506		 Resticted
Funds
£		 12 months to
31/03/2022
Total
£
56,506
-
56,506		 12 months to
31/03/2021
Total
£
- 68,217
- 7,012
~~-~~ 75,229

26 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

8. ANALYSIS OF INCOME RESOURCES

The analysis of the income resources attributable to each
geographical area is as follows:
United Kingdom
Other – European countries
Other – rest of the world		 12 months to
31/03/2022
Total
£
1,303,214
11,549
290
1,315,053		 12 months to
31/03/2021
Total
£
1,134,216
1,945
1,216
1,137,377

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
Staff recruitment costs
Redundancy costs
The average number of employees during the period was
29. They were associated with the following activities:
Educational activity
Research activity
Advocacy work		 12 months to
31/03/2022
£
913,750
87,127
53,612
898
11,448
1,066,835
Headcount
No
28
-
1
29		 12 months to
31/03/2021
£
920,870
83,351
51,588
4,623
16,189
1,076,621
Headcount
No
33
1
1
35

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 27

9. STAFF COSTS (Continued)

The average number of full-time equivalent (FTE)
employees during the period was 25. They were associated
with the following activities:
Educational activity
Research activity
Advocacy work		 12 months to
31/03/2022
FTE No
24
-
1
25		 12 months to
31/03/2021
FTE No
25
1
1
27

During the 12 months to 31 March 2022, no Trustees received reimbursements of personal travel and subsistence expenditure (12 months to 31 March 2021: £Nil).

No Trustees received remuneration during the year (No trustee 12 months to 31 March 2021: £) for qualifying services.

The key management personnel of the parent Charity and the Group in 12 months to 31 March 2022 comprises the Chief Executive, Deputy Chief Executive, Director of Innovations (until February

2022), Director of Partnerships and Customer Experience , Director of Learning and Quality and Associate Director of the Marketing Intelligence Hub ( until December 2021)(12 months to 31 March 2020: Chief Executive, Deputy Chief Executive, Director of Innovations, Associate Director of Strategic Partnerships, Director of Learning and Quality and Associate Director of Marketing Intelligence Hub). The total employee benefits of the key management personnel in 12 months to 31 March 2022 was £ 371K (12 months to 31 March 2021: £347k).

The numbers of employees whose emoluments were in
excess of £60,000 (excluding employers National Insurance
and pension contributions):
£60,000 - £70,000
£70,001 - £80,000
£80,001 - £90,000		 12 months to
31/03/2022
FTE No
-
1
1		 12 months to
31/03/2021
FTE No
1
1
-

Contributions amounting to £9,611 (12 month to 31 March 2021: £19,055) were made to a defined contribution pension scheme for the above employees, in the period.

28 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

10. OUTGOING RESOURCES

This is stated after charging/(crediting)
Auditor’s remuneration – audit
Auditor’s remuneration – other
Trustee’s indemnity insurance
Payments under operating leases – fxtures and fttings
Payments under operating leases – Building
Depreciation of tangible assets
Ammortisation of intangible assets		 12 months to
31/03/2022
Total
£
14,400
-
2,048
-
48,000
36,524
16,370		 12 months to
31/03/2021
Total
£
21,600
-
2,272
15,788
40570
37,070
11,721

11. EXPENDITURE ON RAISING FUNDS

Development costs
Investment management fee
Professional fees
Share of support (note 18)
Sundries		 General
Fund
£
-
14,588
-
-
-
14,588		 Restricted
Funds
£
-
-
-
-
-
-		 12 months to
31/03/2022
Total
£
-
14,588
-
-
-
14,588		 12 months to
31/03/2021
Total
£
704
16,842
9,648
-
88
27,282

12. EXPENDITURE ON CHARITABLE ACTIVITIES

Educational activity (note 13)
Research activity (note 14)
Advocacy work (note 15)		 General
Fund
£
1,645,399
14,461
47,682
1,707,542		 Restricted
Funds
£
25,372
-
-
25,372		 12 months to
31/03/2022
Total
£
1,670,771
14,461
47,682
1,732,914		 12 months to
31/03/2021
Total
£
1,573,360
16,502
44,960
1,634,822

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 29

13. COST OF CHARITABLE ACTIVITIES – EDUCATIONAL ACTIVITIES

Course development
Salaries and staff costs
Redundancy Costs
Lecturer’s fees, travel and
subsistence
Computer consultancy and
support
Printing and stationery
Course accommodation
Postage
Sundries and cleaning
Bank charges
Telephone
Professional charges
Registration fees
Share of support and governance
(note 17)
Subscription
Bad debt provision		 General
Fund
£
34,760
347,389
11,448
128,380
97,119
-
-
497
2,400
6,571
2,493
1,608
187,985
823,937
812
-
1,645,399		 Restricted
Funds
£
-
25,372
-
-
-
-
-
-
-
-
-
-
-
-
-
-
25,372		 12 months to
31/03/2022
Total
£
34,760
372,761
11,448
128,380
97,119
-
-
487
2,400
6,571
2,493
1,608
187,985
823,937
812
-
1,670,771		 12 months to
31/03/2021
Total
£
9,126
697,611
16,189
80,395
59,098
85
-
1,307
2,928
10,521
-
16,597
123,355
556,402
355
(609)
1,573,360

Registration fees represent the cost of registering learners with the University of Hertfordshire, Royal College of General Physicians, Open University and the Association for Respiratory Technology and Physiology for our accredited courses

14. COST OF CHARITABLE ACTIVITIES – RESEARCH ACTIVITY

Wages, salaries and staff costs
Professional fees
Share of support and governance
(note 17)
Miscellaneous		 General
Fund
£
-
-
8,494
5,967
14,461		 Restricted
Funds
£
-
-
-
-
-		 12 months to
31/03/2022
Total
£
-
-
8,494
5,967
14,461		 12 months to
31/03/2021
Total
£
4,730
-
5,796
5,976
16,502

30 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

15. COST OF CHARITABLE ACTIVITIES – ADVOCACY

Wages, salaries and staff costs
Share of support and governance
(note 17)		 General
Fund
£
30,694
16,988
47,682		 Restricted
Funds
£
-
-
-		 12 months to
31/03/2022
Total
£
30,694
16,988
47,682		 12 months to
31/03/2021
Total
£
27,572
17,388
44,960

16. ANALYSIS OF GOVERNANCE AND SUPPORT COSTS

Salaries and staff costs
Redundancy
Rates
Heat and light
Travel and subsistence
Computer consultancy and equipment
Rent
Printing and stationery
Postage
Telephone
Staff development
Professional fees
Property maintenance
Sundries
Bank interest, charges
Foreign Exchange (gain)/loss
Subscriptions
Depreciation
Insurance
Audit		 Support
£
640,484
11,448
2,533
466
94
10,260
57,636
8,297
2,208
2,171
8,712
20,917
8,988
4,336
-
9
828
49,603
3,591
-
832,581		 Governance
£
-
-
-
-
-
-
-
-
-
-
-
390
-
-
-
-
-
-
2,048
14,400
16,838		 12 months to
31/03/2022
Total
£
640,484
11,448
2,533
466
94
10,260
57,636
8,297
2,208
2,171
8,712
21,307
8,988
4,336
-
9
828
49,603
5,639
14,400
849,419		 12 months to
31/03/2021
Total
£
330,519
-
4,193
5,917
21
71,727
51,132
7,336
1,732
5,565
100
12,859
-
8,749
3,856
(841)
1,040
48,029
6,052
21,600
579,586

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 31

17. ALLOCATION OF COSTS OF SUPPORT AND GOVERNANCE

Allocated to:
Educational activity
Books and resources
Research activity
Advocacy
Generating funds		 General
Fund
£
823,937
8,494
16,988
849,419		 Restricted
Funds
£
-
-
-
-		 12 months to
31/03/2022
Total
£
823,937
8,494
16,988
849,419		 12 months to
31/03/2021
Total
£
556,402
-
5,796
17,388
-
579,586

18. TOTAL EXPENDITURE

Expenditure on Raising
Funds:
Investment management
fees
Other expenses
Expenditure on Charitable
Activity:
Educational activity
Books and resources
Research activity
Advocacy
Total Expenditure
Reconciliation to other
Notes to the Accounts:
Items in costs of support
(note 16)
(prior to allocation)
Per Note 9		 Staff
osts
£
-
-
384,209
-
30,694
414,903
414,903
651,932
1,066,835		 Depreciation
and
Amortisation
£
-
-
34,760
-
-
34,760
34,760
49,603
84,363		 Support
Costs
£
-
-
823,937
8,494
16,988
849,419
849,419		 Other
£
14,588
-
14,588
427,865
5,967
-
433,832
448,420		 12 months to
31/03/2022
Total
£
14,588
-
14,588
1,670,771
14,461
47,682
1,732,914
1,747,502		 12 months to
31/03/2021
Total
£
16,842
10,440
27,282
1,573,360
16,502
44,960
1,634,822
1,662,104

The expenditure was £1,747,502 (2021: £1,662,104) of which £1,722,130 was unrestricted (2021: £1,641,998) and £25,373 was restricted (2021: £22,978).

32 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

19. TAXATION

No tax has been provided in the accounts of Education for Health because it is a registered Charity and much of its activity is within the exemption granted by Section 505 of the Income and Corporation Taxes Act 1988, and no taxation is due for payment. The Charity has borne VAT on expenditure where appropriate.

20A. TANGIBLE FIXED ASSETS

Group
At cost: 01 April 2021
Additions
Disposals
Balance: 31 March 2022
Depreciation: 01 April 2021
Charge for period
Disposals
Balance: 31 March 2022
Net book values:
31 March 2022
31 March 2021		 Equipment,
Fixtures and
Fittings
£
191,820
897
-
192,717
72,393
36,524
-
108,917
83,800
119,427		 Total
£
191,820
897
-
192,717
72,393
36,524
-
108,917
83,800
119,427

20B. TANGIBLE FIXED ASSETS

Charity
At cost: 01 April 2021
Additions
Disposals
Balance: 31 March 2022
Depreciation: 01 April 2021
Charge for period
Disposals
Balance: 31 March 2022
Net book values:
31 March 2022
31 March 2021		 Equipment,
Fixtures and
Fittings
£
185,925
897
-
186,822
66,498
36,524
-
103,022
83,800
119,427		 Total
£
185,925
897
-
186,822
66,498
36,524
-
103,022
83,800
119,427

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 33

21. INTANGIBLE FIXED ASSETS – DEVELOPMENT COSTS

Group:
At cost: 01 April 2021
Additions
Balance: 31 March 2022
Amortised: 01 April 2021
Additions
Balance: 31 March 2022
Net Book Value
31 March 2022
31 March 2021		 Contract
Related
Intangibles
£
140,276
-
140,276
140,276
-
140,276
-
-		 Course
Development
Costs
£
592,505
3,617
596,122
584,119
3,291
587,410
8,712
8,386		 Software
and Website
Development
£
237,065
5,868
242,933
202,364
9,534
211,898
31,035
34,701		 Social
Impact
£
23,588
-
23,588
20,043
3,545
23,588
-
3,545		 Total
£
993,434
9,485
1,002,919
946,802
16,370
963,172
39,747
46,632
Charity:
At cost: 01 April 2021
Additions
Balance: 31 March 2022
Amortised: 01 April 2021
Charged in the period
Balance: 31 March 2022
Net Book Value
31 March 2022
31 March 2021		 Course
Development
Costs
£
592,505
3,617
596,122
584,119
3,291
587,410
8,712
8,386		 Software
and Website
Development
£
237,065
5,868
242,933
203,364
9,534
211,898
31,035
34,701		 Social
Impact
£
23,588
-
23,588
20,043
3,545
23,588
-
3,545		 Total
£
853,158
9,485
862,643
806,526
16,370
822,896
39,747
46,632

Amortisation of intangibles is charged within charitable activities.

34 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

22. FIXED ASSET INVESTMENTS

Group:
Listed investments
Fair value as at 01 April 2021
Additions
Disposals proceeds
Realised and unrealised gains
Fair value at 31 March 2022
Historical cost at 31 March 2022
Fixed asset investments are represented by:
UK listed investments
Non UK listed investments		 2022
£
2,844,524
1,810,106
(2,506,750)
114,459
2,262,339
2,245,068
2,262,339
-
2,262,339		 2021
£
2,565,227
1,157,395
(1,283,136)
405,038
2,844,524
2,673,418
2,128,240
716,284
2,844,524

The following represented more than five percent of the fair value of investments at:

31/03/2022 31/03/2021
Number Description £ £
939 IShares CR GBP CRP SHS (GBP) 142,540
21,851 IShares II PLC Core UK Gilt UCITS ETF GBP 299,796
UBS ETF SICAV MSCI EMU SOC RES CLA EUR
11,247 UBS ETF PLC MSCI UK SOC RES UCITS ETF 179,300
1,572 UBS ETF SICAV MSCI USA SOC RESP UCIT USD 144,243
114,887.5 Charities Property Income Units
23,401 Pimco funds UK corp bd FD inst shs 247,817
32,093 UBS IRL ETF PLC MSCI USA SOC RESP A USD 317,992
140,000 Rathbone ethical bond 134,148
3,350 BMO Responsible glb eq fund 223,009
39,296 FP WH-EB Sustainabilty 113,696
60,000 Liontrust sus fut gbl 163,266
78,437 Polar Capital 133,735
135,000 Regnan Uk Sust wtrt WGSLE 136,755
88,390 Greencoat UK wind 134,706
140,000 Octopus renewables 156,800
75,000 AHFM Defned returns fund B 129,338

Charity: Investments held by the Charity also include an additional £2 (2021: £2) investment in the whollyowned subsidiary company Education for Health Trading Limited (Company number 03281397) at cost. The Charity also owns 100% of National Respiratory Training Centre Ltd (Company number 05630081) and Respiratory Education UK (Company number 03632077, Registered Charity number 1073428) for which there is no cost of investment.

All subsidiaries are incorporated in England. Education for Health Trading Limited and National Respiratory Training Centre were dormant throughout the year and prior year.

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 35

23. DEBTORS AND PREPAYMENTS

Trade Debtors
Other debtors
Amounts owed by Group undertakings
Prepayments and other accrued income		 Group
31/03/2022
£
134,380
5
64,610
198,995		 Group
31/03/2021
£
139,313
6
71,650
210,969		 Charity
31/03/2022
£
134,380
5
143
64,610
199,138		 Charity
31/03/2021
£
139,313
6
143
71,650
211,112

24. CREDITORS

24. CREDITORS
Creditors falling due within one year
Trade Creditors
Taxation and social security costs
Other creditors
Loan
Accruals
Creditors falling due after more
than one year
Loan		 Group
31/03/2022
£
66,737
24,072
26,219
18,333
148,932
284,293
Group
31/03/2022
£
81,667
81, 667		 Group
31/03/2021
£
101,294
24,951
26,779
613,339
257,768
1,024,131
Group
31/03/2021
£
-
-		 Charity
31/03/2022
£
66,737
24,072
26,219
18,333
148,932
284,293
Charity
31/03/2022
£
81,667
81,667		 Charity
31/03/2021
£
101,294
24,951
26,779
613,339
257,768
1,024,131
Charity
31/03/2021
£
-
-

Included within other creditors is an amount of £19,878 owed to UKIG (2021: £19,878), in relation to funds held on their behalf.

Group Group
Charity
Charity
31/03/2022 31/03/2021
31/03/2022
31/03/2021
Carrying amount of fnancial assets £ £
£
£
Debt instruments measured at amortised cost 134,380 139,313
134,380
139,313
Measured at fair value 1,470,492 1,755,630
1,470,492
1,755,630
Carrying amount of fnancial liabilities
Measured at amortised cost 341,888 999,180
341,888
999,180

A loan which was repaid during the year was in the form of a loan secured against the investment portfolio, with a variable 1.75% above LIBOR interest rate until 18/2/21 when rate reduced to 1.5% above LIBOR. The current loan is a CBIL which was taken out in April 2021 , interest free in first 12 months.

36 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

25. FEES RECEIVED IN ADVANCE

EES RECEIVED IN ADVANCE
At 01 April 2021
Released during period
Deferred during period
At 31 March 2022		 Group
£
784,197
1,219,254
1,422,301
987,244		 Charity
£
784,187
1,219,254
1,422,301
987,244

26. UNRESTRICTED FUNDS

Group
General fund
Trading subsidiaries
Designated funds:
Equipment, furniture, fxtures and fttings
fund
Intangible fxed assets
Operating fund
Resource management reserve
Strategic development fund
Total designated reserves
Unrestricted reserves		 1 April
2021
£
981,240
(51)
981,189
119,427
46,632
200,000
45,000
350,000
761,059
1,742,248		 Net Incoming
Resources/
(Resources
Expended)
in Year
£
(272,606)
-
(272,606)
(35,627)
(6,885)
-
-
-
(42,512)
(315,118)		 Transfers
£
188,000
-
188,000
-
-
57,000
(45,000)
(200,000)
(188,000)
-		 31 March
2022
£
896,634
(51)
896,583
83,800
39,747
257,000
-
150,000
530,547
1,427,130

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 37

26. UNRESTRICTED FUNDS (Continued)

Charity:
General fund
Designated funds:
Equipment, furniture, fxtures and fttings
fund
Intangible fxed assets
New educational
technologies/IT systems
Development fund
Operating fund
Resource management reserve
Strategic development fund
Total designated reserves
Unrestricted reserves		 1 April
2021
£
981,240
119,427
46,632
200,000
45,000
350,000
761,059
1,742,299		 Net Incoming
Resources/
(Resources
Expended)
in Year
£
(272,606)
(35,627)
(6,885)
-
-
-
(42,512)
(315,118)		 Transfers
£
188,000
-
-
57,000
(45,000)
(200,000)
(188,000)
-		 31 March
2022
£
896,634
83,800
39,747
257,000
-
150,000
530,547
1,427,181

The strategic development fund is to support the period of change the charity is currently undergoing. With the intention to ensure infrastructure, resource and products are fully aligned to enable delivery of our strategic aims over the next three years. The operating fund is the amount required to allow learners to complete programmes of study. The increase reflects that there has been an increase in the number of Masters programme learners. Fixed assets and intangible assets reserves reflect assets not readily converted to cash.

27. RESTRICTED FUNDS

----- Start of picture text -----
Net Incoming
Resources/
(Resources
1 April Expended) 31 March
Charity and Group: 2021 in Year Expenditure 2022
£ £ £ £
Restricted fund 2,872 22,500 (25,372) -
----- End of picture text -----

38 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

28. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group:
Restricted Funds
Unrestricted funds:
Designated
General
Charity:
Restricted Funds
Unrestricted funds:
Designated
General		 Tangible &
Intangible
Fixed Assets
£
-
-
123,547
123,547
-
123,547
123,547		 Investments
£
-
530,547
1,731,792
2,262,339
-
530,547
1,731,794
2,262,341		 Net Current
Assets /
(Liabilities)
and Provisions
£
-
-
(958,756)
(958,756)
-
(958,707)
(958,707)		 31/03/2022
Total
£
-
530,547
896,583
1,427,130
-
530,547
896,634
1,427,181		 31/03/2021
Total
£
2,872
761,059
981,189
1,745,120
2,872
761,059
981,240
1,745,171

29. COMMITMENT UNDER OPERATING LEASES

Land and Buildings
Within one year
Within two to fve years
Within fve to ten years
Fixtures and fttings:
Within one year
Within two to fve years
Within fve to ten years		 Group
31/03/2022
£
48,000
192,000
122,322
362,322
15,367
33,179
48,546		 Group
31/03/2021
£
48,000
192,000
170,322
410,322
19,095
44,916
-
64,011		 Charity
31/03/2022
£
48,000
192,000
122,322
362,322
15,367
33,179
48,546		 Charity
31/03/2021
£
48,000
192,000
170,322
410,322
19,095
44,916
-
64,011

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 39

30. CAPITAL COMMITMENTS

On 31 March 2022, the Group and Charity hadvintangible capital commitment of £3,960 (March 2021: £Nil). On 31 March 2022 there were no tangible capital commitments (March 2021: £Nil).

31. RECONCILIATION OF NET INCOME (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the year
Add back depreciation charge
Add amortisation intangible assets
Deduct investment income
Add losses/deduct (gains) on investments
Proft/(Loss) on disposal
Decrease in stock
Decrease (increase) in debtors
Decrease in creditors and provisions
Net cash used in operating activities		 Group
31/03/2022
£
(317,990)
36,524
16,370
(56,506)
(114,459)
11,974
(455,124)
(879,211)		 Group
31/03/2021
£
(119,689)
37,070
11,721
(75,229)
(405,038)
-
-
66,734
327,443
(156,988)

32. RECONCILIATION OF NET INCOME (EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Analysis of cash and cash equivalents:
Cash in hand at 31/03/2021
Movement in year
Cash in hand at 31/03/2021		 £
331,896
(136,443)
195,453

33. LOANS

A coronavirus business interruption loan of £100,000 was taken out on 22 April 2021 with a 12 month interest free period until 22 April 2022.

34. RELATED PARTY TRANSACTIONS

There were no Related Party Transactions in the period ending 31 March 2022.

35. CONTINGENT LIABILITY

Education for Health and REUK are party to a group VAT registration effective from 01 March 2015. At 31 March 2022, there was a VAT liability of £2,769 (31 March 2021: £1,137).

40 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

36. GOVERNMENT GRANTS

The interest on the first year of the CBIL received year ending 31 March 2022 was deemed immaterial and not reflected in the SOFA. A government grant in the form of Government job retention scheme of £148,679 was received in the year ending 31 March 2021.

37. COMPARATIVE INFORMATION – CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

IES
Income and Endowments from:
Donations and legacies
Charitable activities
Other trading activities
Surplus on disposal of assets
Government Grant
Investments
Total Income
Expenditure on:
Raising funds
Charitable activities
Exceptional charitable activities
Total Expenditure
Net (losses) gains on investments
Net Movement in Funds for the
Reconciliation of Funds:
Total funds brought forward
Total Funds Carried Forward		 Unrestricted
Fund
£
-
864,130
26,361
-
148,679
75,229
1,114,399
27,282
1,641,716
1,641,998
405,038
(122,561)
1864,809
1,742,248		 Restricted
Fund
£
22,978
-
-
-
-
22,978
-
20,106
20,106
-
2,872
-
2,872		 12 months to
31/3/2021
Total
£
22,978
864,130
26,361
148,679
75,229
1,137,377
27,282
1,634,822
1,662,104
405,038
(119,689)
1,864,809
1,745,120		 12
months
to
Total
£
3,505
1,695,023
15,182
457,152
85,638
2,256,500
21,802
2,322,655
95,707
2,440,164
(269,318)
(452,982)
2,317,791
1,864,809

1 APRIL 2021 – 31 MARCH 2022 | REPORT AND ACCOUNTS | 41

REFERENCE AND ADMINISTRATION DETAILS

REGISTERED CHARITY NO: 1048816 COMPANY NO: 03090774 VAT NO: GB210922057

Nominations Committee:

Board of Trustees:

Mr Gary Parkinson (resigned 3/5/22) Dr Robert Angus

Dr Robert Angus (Chairman) Mr Robert Strange Mr Gary Parkinson (resigned 3/5/22) Mrs Aileen Muir Mr Christopher Rowles Mr Mike Attwood Dr Cathy Winfield (appointed 12/5/2021 Mr Stephen Landrey (appointed 12/5/2021 Mrs Aileen Miur retire and being eligible offers herself for re-election .

Finance, Audit and Risk Committee:

Mr Robert Strange Mr Gary Parkinson (resigned 3/5/22) Mrs Aileen Muir Mr Mike Attwood (resigned 3/5/22)

Patrons:

Mrs Greta Barnes MBE Baroness Julia Cumberlege CBE, DL

Chief Executive:

Legal Advisors:

Dr Linda Edwards

Wright Hassall and Co Olympus Avenue Leamington Spa Warwickshire CV34 6BF

Senior Leadership Team, assisting Chief

Executive:

Mrs Rebecca Harkcom, Deputy Chief Executive Mrs Ann Saxon, Director of Quality and Learning Mr Stephen Ryan, Director of Innovations Unit (until 28 February 2022) Mr Adam Smith, Director of Strategic Partnerships (until 22 July 2022) Mrs Sarah Brighton , Associate Director of Marketing and Market Intelligence Hub (until 31 December 2021)

Shakespeare Martineau Brideway House Stratford on Avon, CV37 6YX

Investment Advisors:

EFG Harris Allday (appointed April 2021) 33 Great Charles Street Birmingham B33JN

Company Secretary:

Mrs Rebecca Harkcom

Bankers:

Barclays Bank plc PO Box 1352 25 High Street Coventry CV1 5QZ

Registered Office and Principal Address:

1 Lowes Lane Business Park, Lowes Lane Wellesbourne, CV35 9RB

Website: www.educationforhealth.org

Auditors:

Dains Audit Limited 15 Colmore Row Birmingham B3 2BH

42 | REPORT AND ACCOUNTS | 1 APRIL 2021 – 31 MARCH 2022

TOGETHER WE CAN HELP IMPROVE THE LIVES OF PEOPLE LIVING WITH LONG TERM CONDITIONS

1 Lowes Lane Business Park, Lowes Lane, Wellesbourne, Warwickshire CV35 9RB T: +44 (0)1926 493313 | E: info@educationforhealth.org

www.educationforhealth.org