COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
Ir[ColegauCymru] CollegesWales
CollegesWales / ColegauCymru Limited
Annual Report and Consolidated Financial Statements for the Year Ended 31 July 2023
Charity Number: 1060182 Company Number: 2832103 {England and Wales)
ColegauCymru Uned 7 Cae Gwyrdd Greenmeadow Springs Tongwynlais, Caerdydd CF15 7AB Ff: 029 2052 2500 E: helo@colegaucymru.ac.uk W: www.colegaucymru.ac.uk
CollegesWales Unit 7 Cae Gwyrdd Greenmeadow Springs Tongwynlais, Cardiff CF15 7AB T: 029 2052 2500 E: hello@collegeswales.ac.uk W: www.collegeswales.ac.uk
Annual Report and Accounts for year ended 31 July 2023
COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
Contents
| Page | |
|---|---|
| Annual Report | 3 |
| Report of the Independent Auditors | 19 |
| Consolidated Statement of Financial Activities | 23 |
| Consolidated Balance Sheet | 24 |
| Company Balance Sheet | 25 |
| Cash Flow Statements | 26 |
| Note to the Financial Statements | 28 |
| Income and Expenditure Account | Appendix 1 |
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Annual Report and Accounts for year ended 31 July 2023
COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
ANNUAL REPORT & ACCOUNTS
The Directors/Trustees present their annual report and accounts of Colleges Wales/Colegau Cymru Limited and its subsidiary, fforwm Services Limited for the year ended 31 July 2023.
Structure
ColegauCymru is a post-compulsory education charity that represents 11 further education (FE) colleges and 2 designated FE institutions (FEis) in Wales. The company was originally incorporated in 1993 as Fforwm Limited and on 1 June 2009 changed its name to Colleges Wales/Colegau Cymru Limited and was branded as 'ColegauCymru/CollegesWales'. Fforwm Services Limited was established in 1995 and is a wholly owned trading subsidiary of Colleges Wales/Colegau Cymru Limited.
Charitable Objectives
The ColegauCymru charitable objectives and principal activities remained throughout 2022-23 to promote the advancement of education for the benefit of the general public in Wales. ColegauCymru exists through its work to:
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provide a forum for discussion on matters of common interest conducted by all the FE corporations and other institutions receiving post-16 funding from the Welsh Government; and
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make representations on behalf of its members to persons concerned with education and its funding in Wales.
The charity's prime purpose is to raise the profile of further education with key decision-makers to improve educational opportunities for learners in Wales.
Strategic Priorities
During the financial year, ColegauCymru focused on delivering the following key priorities:
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Providing services to members
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Providing public benefit
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Well governed, resilient and sustainable
Achievements and Performance
ColegauCymru remains focused on building relationships with key stakeholders and ensuring it is a key influencer on issues affecting the sector. Key achievements are as follows:
- Provided services to members to coordinate all strategic groups to respond to strategic priorities for the sector Successfully applied for close to £1.2m Taith and Turing funding on behalf of the FE colleges Organised3 pan-Wales staff mobility visits to Austria to explore the dual-professionalism of vocational education and training (VET) staff; to Spain to integrate overseas opportunities into the new Advanced Skills Baccalaureate Wales qualification and a CPD visit to Thailand to build FE staff confidence when leading learner visits to more remote destinations overseas. Continued to coordinate and support FE participation in the Global Wales 3 programme
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Provided challenge and support to the 13 colleges as they all achieved readiness to take on their new duties under the ALN Act and Code
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Worked with ALN representatives from FEis, LAs, health boards and others to promote consistency and partnership working
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Successfully delivered 12 regional and national online events attended by colleges, LAs and health boards to promote a clear and consistent understanding of post-16 ALN legislation.
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Represented the views of Members through numerous policy position statements and press releases.
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Engaged with political parties, including providing one to one and group briefing on specific policy matters, and providing information to inform Senedd debates.
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Submitted 17 consultation responses on policy matters affecting the decisions of post-16 learners in Wales to Welsh Government, Senedd Committees, and other bodies. Topics covered included: Welsh Government Draft Budget; Promoting and Facilitating Welsh Medium Qualifications; Draft Innovation Strategy; Have Your Say GCSE consultation; Just Transition to New Zero; New registration categories for EWC; Post EU-regional development funding; Full 14-16 Qualifications Offer; and the Welsh Language Education Bill white paper.
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Held regular strategic dialogue meetings with Welsh Government ministers and officials, Senedd Members, and other key stakeholders.
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Built on and developed positive working relationships with our stakeholders in Welsh Government, the Senedd, and the wider sector.
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Continued to work closely with key stakeholders from education and further afield; these include Welsh Government, Sport Wales, British Council, EWC, Estyn, Qualifications Wales, HEFCW, Learning & Work Institute Wales, NTfW (National Training Federation Wales), Coleg Cymraeg Cenedlaethol, Y Ganolfan Dysgu Cymraeg, AoC including developing our participation in the Colleges Alliance, and others and with colleges to ensure that the FE sector was well placed in terms of future developments.
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In line with our commitment to collective bargaining, we continued to work closely with Welsh Government and joint trade union colleagues to facilitate pay negotiations and ensure pay parity for the sector.
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Continued to support social partnership projects including the National Social Partnership steering group which has achieved significant successes through collaborative projects and the strengthening of local social partnership working.
Projects
ColegauCymru has been successful in securing several externally funded projects aimed at enhancing the educational opportunities of learners in Wales. A summary of the range of projects undertaken by the charity, during the period, are outlined below.
International and European partnerships and learning opportunities
CollegesWales International supports the FE colleges in Wales to integrate international activities into the daily lives of learners and staff to enrich and enhance their teaching and learning experiences.
In 2022/23, CollegesWales International successfully applied for Taith and Turing funding on behalf of FE colleges in Wales enabling them to provide training, work and volunteering opportunities overseas for FE learners, apprentices, college leaders, tutors and support staff. The amount of funding secured in 2022/23 to support these activities was close to £1.2m. In addition, CollegesWales International continued to facilities overseas mobilities through its existing Erasmus+ funding and Taith funding that was acquired in 2021/22.
This funding enabled hundreds of FE learners and staff to participate in experiences in 21 countries around the world including Japan, Argentina, United Arab Emirates, Tanzania, Turkey, Sweden and France. Learners and staff from a wide variety of vocational and A level subjects participated in these opportunities.
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In addition to facilitating overseas mobilities, CollegesWales International also coordinated and supported the integration of Wales' FE colleges in the Global Wales 3 programme. The programme is a partnership between Universities Wales, ColegauCymru, Welsh Government, British Council Wales and the Higher Education Funding Council for Wales and provides a strategic, collaborative approach to international higher and further education in Wales.
In April 2023, Global Wales and CollegesWales International organised a visit for a delegation of Principals to Montreal, Canada to sign a Memorandum of Understanding (MoU) with Colleges & Institutes Canada (CICan) with a focus on developing strategic partnerships between institutions in Wales and Canada. There was also a senior level visit to Baden-Wuerttemberg, Germany to explore the regional and national strategies in place for green technologies in the German automotive industry.
CollegesWales International has developed an action plan for its Internationalisation Strategy and continues to monitor its implementation with the support of the International Group that met three times in 2022/23.
Social Partnership
Through collective negotiation at the Wales Negotiating Committee for FE (WNCFE), we commissioned an external consultant to review business support pay scales across FE colleges and to advise on the potential development of a national pay scale. The project is due to report its recommendations in 2023/24.
Credit and Qualifications Framework for Wales (CQFW) Alignment Contract
Welsh Government funding was received from April 2022 - March 2023 and has a Grant Agreement in place for the period April 2023 to March 2024.The aim of this work is to provide advice and support to the Welsh Government to maintain alignment between the CQFW and the other qualification and regulatory frameworks within the UK and the European Qualifications Framework; establish recommendations, a policy position and systems/processes relating to the recognition of skills, qualifications and experience.
During this reporting period, the main activities of work have included updating the 'Qualifications Can Cross Boundaries document; ongoing dialogue with 'The Five Countries Alliance (UK nations and the Republic of Ireland); and engagement with the Net Zero Skills Advisory Forum. In addition, great progress has been made on developing resources and information on using 'Recognition of Prior Learning' (RPL), which has included hosting a whole range of open-source resources on the ColegauCymru website.
Active Wellbeing
In partnership with Sport Wales, ColegauCymru is the lead organisation for sport, physical activity and volunteering in FE colleges in Wales, raising the profile of sport, physical activity and volunteering through college projects and promoting elite college sport.
During 2022/23 further development of Active Wellbeing at a strategic and delivery level continued, this included wider investment from Welsh Government via FE Mental Health and Wellbeing funding.
2022/23 Achievements
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6000+ FE learners participating in project funded activity - unique attendees.
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WG mental health funding supporting growth in project workforce
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Continued investment from Sport Wales agreed for 23/24 of £130k
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Ongoing WG funding for Active Wellbeing national projects (regional forums and events) Managed by CC.
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Regional Active Wellbeing forums in North, South East and South West looking at "next steps" for FE in Wales. Engagement with 250+ staff/ learners and external stakeholders.
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Active Wellbeing "Walk and Breakfast" event at Senedd sponsored by Heledd Fychan MS sharing insight from regional forums and project delviery, 7 MS in attendance with college and sector representatives.
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Engagement work including representation on WG Mental Health in FE / HE group chaired by Lynne Neagle MS
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Inclusive events including FE MultiSport Pembrey {400+ staff and learners), ColegauCymru Outdoor Challenge {130 learners), further partnership work with the Welsh Alliance for Intellectual Impairment, the Outdoor Partnership and Disability Sport Wales.
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New events planned for North Wales int e 23/24 academic year including FE Multisport Rhyl and Ability Counts football competitions.
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Agreement with Youth Sport Trust to host Gold Young Ambassador conferences in FE colleges at a regional level in the Autumn of 2023.
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Representing the FE sector as part of Sport Wales CSAP programme moving to the regionalisation of community sport in Wales.
Welsh and Bilingual Projects
Cymraeg Gwaith
The aim of the Cymraeg Gwaith scheme is to strengthen Welsh language skills in the workplace. The scheme is funded by the Welsh Government and developed by the National Centre for Learning Welsh. The Further Education and Higher Education Welsh Language Scheme is co-ordinated by the Coleg Cymraeg Cenedlaethol in partnership with ColegauCymru.
The aim of this scheme is to give staff in universities and colleges of further education the opportunity to develop their language skills to enable them to increase their use of Welsh in the workplace. The scheme is open (and free) to staff of universities and colleges of further education in Wales of all abilities, whether they are new or advanced learners.
Between 1[st ] April 2022 and 3i[5t ] March 2023, ColegauCymru achieved its project targets. From p[t ] April 2023, the project was transferred to the Coleg Cymraeg Cenedlaethol.
Additional Learning Needs
ColegauCymru, through theWelsh Government funded ALN project, has continued to support and challenge colleges as theimplementation of the Additional Learning Needs and Education Tribunal {Wales) Act became live in September 2023. As part of this, the ALN (Additional Learning Needs) Implementation Lead has been employed. On behalf of Welsh Government, ColegauCymru is also coordinating a series of projects on provision and practice in the Independent Living Skills (ILS) curriculum area. We are working with representatives from colleges and wider stakeholders to further develop guidance on running supported internships as well as promoting effective quality systems within ILS provision.
As part of the support to colleges as they prepare for the implementation of ALNET, ColegauCymru has:
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Worked with Welsh Goverment officers, LAs, FEis, health boards and the third sector within the four regions to promote partnership.
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Delivered several on-line events to support the development of stakeholder policies.
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Worked with partners to deliver training programmes that enhance the skills of ALN staff.
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Worked with the sector and others to improve a national ALN Pathfinder information website.
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Produced and shared a number of key documents to support college ALN development.
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Developed a Hwb project sharing site to ensure all colleges can benefit from the development work going on across the Principality.
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Delivered ALN updates to governing boards and senior management teams across Wales.
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Established cluster groups to support colleges with current and future ALN developments.
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Organised ALN legal workshops to support understanding of the ALN Code and regulations.
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Chaired and supported an all-Wales LA Post-16 Officer group to support consistent approaches to meeting their new duties.
Independent Living Skills (ILS)
ColegauCymru secured grant funding from the Welsh Government to continue the ILS project to support colleges with the roll out of the new curriculum for ILS learners. The project supported the development of a set of standards and guidance for the delivery of supported internships as well as further developing a system of peer review for ILS programmes based on RARPA principles. The project also enabled the continuation of the ILS network to support, share and develop effective curriculum practice and to prepare the sector for the implementation of the ALN Act.
Review of FE lecturer workload4
ColegauCymru was awarded grant funding from the Welsh Government to continue its coordination of the national social partnership steering group for workload review .. The Workload Phase 4 project included the continuation of the work of the WNCFE to address the recommendations of phase 2; implementation of the local action plans agreed in phase 3; and the development and delivery of collaborative projects to improve well-being and workload.
Future Plans and Activities
ColegauCymru will continue to monitor and influence, as far as possible, the establishment of, and transition of the sector into the Commission for Tertiary Education and Research, following the passage of the Tertiary Education and Research (Wales) Act, along with other emerging legislation or proposals.
Since the UK has left the European Union, Wales must continue to maintain and develop international links by playing an active role in the continuous development of a common framework for improving transparency across European VET (Vocational Educational Training) systems. ColegauCymru has played an active role in advising the Welsh Government on developments in these initiatives to ensure that FE in Wales is connected to key regions and partner organisations across the world.
ColegauCymru will continue to extend its international work through Taith, Welsh Government's international exchange programme and The Turing Scheme, the UK government's mobility programme. The FE sector will also be included in Global Wales 3 programme alongside Higher Education and will continue to explore avenues to achieve some of the aims within its Internationalisation Strategy.
ColegauCymru will continue to work closely with Sport Wales, key stakeholders, and colleges to ensure that the FE sector is well placed in terms of future developments around active wellbeing. This includes facilitating projects funded by Welsh Government to support FE settings to promote physical, mental, and emotional wellbeing through increased access to creative, sporting, and cultural activities.
A key objective for ColegauCymru for 2023/24 will be to align our resources and activities to new and emerging challenges, including the continuing squeeze on public spending, the establishment of the new Commission for Tertiary Education and Research, and to the outcomes of the Vocational Qualifications Review, whilst also looking ahead to how we influence longer term system change. We will work closely with Members over the coming year to continue to enhance our relationships with Ministers and other key stakeholders. ColegauCymru will ensure that Members are kept abreast of key issues and remain focused on delivering Members' priorities for the benefit of learners and the wider communities in Wales.
As the representative body for FE institutions in Wales, we will continue to engage positively and constructively with the Joint Trades Unions, working in social partnership for the benefit of the FE workforce to provide the best possible learning experience for FE learners.
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The ColegauCymru Policy and Communications Team will continue to advocate for position change for learners and staff in the FE sector with consultation responses, briefings, correspondence to and meetings with Ministers, Cross Party Groups and working with a range of other policy organisations.
As a corporate priority in providing public benefit, the Development team will continue to provide a programme that helps colleges to enrich and enhance the post-16 learning experience: by supporting the skills of the FE workforce; through international exchange opportunities; through initiatives that promote the active wellbeing for staff and learners; and by establishing a leadership programme to strengthen leadership capacity across the sector.
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GOVERNANCE REPORT
The Governance Report provides information on the membership of its Board, Committees and recent changes to its constitution and governing document.
Board of Directors
CHAIR -GUY LACEY CEO/PRINCIPAL, COLEG GWENT JOINED: JULY 2018
Guy was appointed CEO/Principal of Coleg Gwent in August 2015. Guy graduated from Oxford Brookes University and has post graduate qualifications in Secondary Education from Bath University. Guy has spent over 25 years in a number of UK schools and colleges and has gained knowledge of a wide range of approaches to the delivery of skills and training to meet the needs of young people and adults. In addition, Guy worked as a GCSE examiner for the University of Cambridge examinations syndicate and worked as a peer Inspector with Estyn for over ten years.
Email address: Guy.lacey@coleggwent.ac.uk Tel: 01495 33501
DEPUTY CHAIR-LISA THOMAS
CEO/PRINCIPAL, THE COLLEGE MERTHYR TYDFIL JOINED: 4 JANUARY 2023
Appointed as Principal and Chief Executive at the College Merthyr Tydfil in September 2018, Lisa joined the FE sector as Assistant Principal in September 2012. Lisa is a qualified teacher and has a Masters Degree in Education. Beginning her career as a History teacher in 1993 Lisa has over 25 years experience of leadership and management roles within secondary and further education and local government.
As a member of Colegau Cymru, Lisa has represented the sector on a number of Welsh Government working groups and played an influential role in shaping government policy regarding the FE sector in Wales. She is also an experienced ESTYN peer inspector
Email address: 1.thomasl@merthyr.ac.uk
DIRECTOR/TRUSTEE-JEFF GREENIDGE CHAIR, LEARNING AND WORK INSTITUTE JOINED: 1 AUGUST 2019
Jeff's career in education and training began as a teacher in the South Wales Valleys, then as a civil servant developing the National Curriculum for Modern Languages. He spent three years training PGCE students at Swansea University followed by a spell in developing European vocational and mobility initiatives at the WJEC. Jeff joined Ufi in 1999 to help set up the first UK national network of learning on line centres (learndirect). After managing the UK online learning delivery, Jeff left learndirect in 2015 to set up coaching and entrepreneurship programmes for Individuals and businesses. He maintains a keen interest in supporting adults in learning and is on the Board of a number of UK Education and Training think Tanks. Since 2021 Jeff is the Director for Diversity jointly for the Education and Training Foundation (ETF) and Association of Colleges (AoC).
Email address: jdgeell@aol.com Tel: 07740064663
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DIRECTOR TRUSTEE - LOUISE CASELLA JOINED: 1 AUGUST 2019 RESIGNED - 21 MARCH 2024
Louise joined the OU in January 2018 as Director of The Open University in Wales where she leads the strategic management, development and growth of the OU in Wales and is a member of the Vice Chancellor's Executive.
Prior to joining the OU Louise worked as an independent management consultant and interim manager, and assignments included periods at Stirling University, and at Wrexham Glyndwr University where she was Pro Vice-Chancellor for 18 months, supporting the university's recovery to a position of financial stability and academic vitality. Louise's substantive career was built at Cardiff University, where she held posts as Head of Planning, Senior Executive and Head of the Vice Chancellor's Office, chairing the professional services group and becoming Director of Strategic Development between 2004 and 2012.
Louise has held a variety of national NED, trustee and advisory roles including being a member of the CBI Wales Council for 10 years, a member of the Audit & Risk Committee for Sport Wales, and a trustee of the Millennium Stadium Charitable Trust. She also served on the Ministerial Review of Higher Education in Wales (2008-09) and has been an NED of the Office of the Independent Adjudicator for Higher Education, a member of the Higher Education Bursary and Scholarship Scheme UK board, a Trustee of Wrexham Glyndwr Students Union.
In September 2020, Louise was appointed by the Education Minister in Wales to Chair the Independent Review of Qualifications in Wales to consider arrangements for summer 2021.
Email Address: ~~_~~ louise.casella@open.ac.uk
Tel: 07808 581145
DIRECTOR/TRUSTEE - DR PAUL SMART JOINED: 4 JANUARY 2021
Vice Chair of Governing Body Coleg y Cymoedd (Chair of Resources Committee)
Having graduated with a BSc and PhD in Engineering, Paul commenced his career in Operational Research in both the gas and steel industries. He subsequently joined the UK manufacturing plant of an International Cosmetics company where he worked as both a Production Manager and Head of Human Resources. He subsequently took a role in the company's headquarters as UK Human Resources Director for Operations, Supply Chain, Finance, and IT.
After 37 years with the company, Paul has now retired but still works part-time as the company's Pension Liaison Manager and as a Pension Fund Trustee.
Paul has been a Governor of several FE colleges over a period of more than 20 years.
Email address: pmsmart@aol.com
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DIRECTOR/TRUSTEE-DR RHIANNON EVANS JOINED: 24 NOVEMBER 2021
Dr Rhiannon Evans is a Senior Lecturer at Cardiff University. She is a member of the executive management team at the DECIPHer research centre, which focuses on the health and wellbeing of children and young people. She has extensive methodological expertise in intervention evaluation research, particularly in educational settings. Her substantive research interests focus on the promotion of mental health and wellbeing, in addition to the prevention of self-harm and suicide. She had led and supported national evaluations of education-based mental health services, including MHFA training for secondary-school staff and counselling provision. She has a particular focus on educational and health inequalities, notably outcomes for care-experienced children and young people.
Email address: EvansRE8@cardiff.ac.uk
DIRECTOR/TRUSTEE -SUZY DAVIES JOINED: 24 NOVEMBER 2021
Following a career in arts marketing, Suzy Davies worked as a solicitor in Mid Wales. Suzy is a former Senedd member where she served for ten years on several Senedd committees including those covering education, skills, Welsh language and Brexit. She was Shadow Education Minister during the passage of the Curriculum Bill and was directly involved in scrutiny of education legislation and policy during her ten years in Cardiff Bay.
Suzy has volunteered and been a board member for several small Welsh charities and been a school governor. A founder member of the Welsh International Film Festival, she is currently a board member of the international Iris Prize LGBT + Film Festival and Chair of the Wales Tourism Alliance. A campaigner for more women in public life, she continues to mentor for Women's Equality Network Wales and Ethnic Youth Support Team.
Email address: suzy.davies.private@gmail.com
No director/trustee held any shares in the company at any time during the year.
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Committees of the Board of Management
Audit Committee
Jeff Greenidge {Chair) resigned July2023, Paul Smart {Chair) appointed September 2023, Lynda Astell, Kathryn Robson, and Sharon Bowker (appointed September 2023).
Search Committee
Jeff Greenidge, Louise Casella and Rachel Cable
The directors of the subsidiary company were appointed by and from ColegauCymru's Board. On 30 November 2020 it was agreed to implement a common board for both companies and this was put into effect on 4 January 2021. The directors of the subsidiary during the period were as follows:
Guy Lacey (Chair) Lisa Thomas (Deputy Chair) Louise Casella Jeff Greenidge Paul Smart Rhiannon Evans Suzy Davies
All directors/trustees give their time voluntarily and receive no personal benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.
Roles and Key Responsibilities
The Board is collectively responsible for the charity's long-term success. The Board sets its strategic aims, monitors the performance of management against the strategic aims, ensures good governance, assesses its risk appetite and ensures that effective controls are in place in the business.
The Chair, Guy Lacey plays a key role in helping to ensure a unified Board, facilitating meetings, and ensuring good governance. Meeting agendas are agreed in consultation with the Chief Executive and Company Secretary, although any Director may request that an item be added to the agenda.
Beyond matters reserved for the Board, the Chief Executive, David Hagendyk has primary responsibility for managing the day-to-day affairs of the charity and is supported by a senior team in implementing strategy and day to day management.
Activities
During 2022-23, the areas of focus for the Board included:
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Review of funding, income, and expenditure to continue to ensure the long-term financial sustainability of the organisation
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Ongoing scrutiny of risk management within the organisation
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Review and update policies to ensure compliance with current statutory responsibilities and a healthy, respectful, and innovative workplace.
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Review of the risk environment and strategic priorities
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Constitution
Under the Articles of Association, the Chair and Deputy Chair of the CEO/Principals' Forum are appointed the Chair and Deputy Chair of the charity Board In accordance with the Articles of Association, the Board comprises of a minimum of five and a maximum of seven Trustees which may include up to two Chairs of Governing Bodies and up to three independent external professionals may be appointed Trustees. If there are vacancies, the Board may Co-opt Trustees provided the total number of Trustees does not exceed seven. The Chair and Deputy Chair shall serve concurrently for two years whilst the other Trustees may serve for an initial three years, with the option to seek re-appointment for a further three-year term. Due to the continuing impact of Covid-19 it was agreed to extend the term of office for the Chair and Deputy Chair to 31 December 2022. The Chair, Guy Lacey, has since been reappointed for a further term of office and a new Deputy Chair, Lisa Thomas, appointed from January 2023.
On the 15[th ] of June 2022, the following resolution was proposed and passed by members at the AGM held on the 11[th ] of June 2023. Members resolved to change the commencement date of the term of office for the Chair and Deputy Chair to run for a period of two years from 1 [st ] of January.
The Chair and Deputy Chair of the Board along with an independent member is responsible for conducting the CEO's annual performance review and make recommendations to the Board, which is responsible for setting the CEO's remuneration package.
A common board for both the charity and its subsidiary company, Fforwm Services Ltd., this was put into effect from 4 January 2021.
Induction and Development
The Trustees receive an information pack on their legal obligations under charity and company law. To assist them in carrying out their duties all Trustees are expected to meet the standards set out in the charity's Corporate Governance Code which aims to promote effective and well-informed governance.
Conflicts of Interest
All Trustees must immediately disclose conflicts, or potential conflicts, of interest. In addition, all Trustees sign an annual declaration and disclose their external appointments. Directors also let the Chairperson and Company Secretary know of any pending appointments and announce any new external appointments at the next Board meeting so that all the Board are made aware.
Board Meetings and Attendance
In 2022-23, the Board held three scheduled meetings. All directors are expected to attend meetings of the Board and of those Committees of which they are a member. When a Director is unable to participate in a meeting, the Chair will seek their views on key items ahead of the meeting so that these can be added to the discussion.
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Risk Management
The Board has overall responsibility for the operation and effectiveness of the charity's system of internal controls and risk management. The system of controls is designed to manage the risk of failure to achieve business objectives, and comprises audited policies and procedures aimed at identifying and managing the most significant risks faced by the business.
The Trustees are of the view, that there is an ongoing process for identifying, evaluating and managing significant risks faced by ColegauCymru and that this process has been in place during the reporting period.
Delegated authority is granted to the following committees that operate under agreed terms of reference:
- Audit Committee to consider detailed reports together with recommendations for the improvement of systems of internal control and management's responses and implementation plans. The Committee meets at least twice a year, with the external auditors in attendance if requested.
Search Committee - the role of the Committee is to review the succession planning for the Board and to put in place processes to address this, reporting to the main Board.
The Board receives reports from the Chief Executive and the Audit Committee regarding risk and control issues and how it plans to address these issues.
Governing Document
ColegauCymru is a charitable company limited by guarantee and registered as a charity in January 1997. The company was established under a Memorandum of Association which establishes the objects and powers of the charitable company and is governed under its Articles of Association.
In the event of the charity being wound up after all its debts and liabilities have been satisfied and there remains any property, it shall not be paid to or distributed among the Members of the charity. Instead, shall be given or transferred to some other charity or charities having similar objects which prohibits the distribution of its income and property by its charity members at or before the time of dissolution and if that cannot be done then to some other charitable object.
Financial Review
Total income for the group was £3,399,140, an increase of £141,708.
The group made a surplus of £297,904 {2022: £712,154) after an actuarial adjustment on the defined benefit pension scheme. A pension liability of £15,000 has been recognised at the end of the year in respect of the minimum funding requirement (2022: No asset or liability recognised).
Principal Funding Sources
ColegauCymru continued to be funded through college subscriptions during the year at a level sufficient to meet the budgetary requirements agreed by the Board. ColegauCymru received £946,755 funding through membership subscriptions from colleges and FE institutions.
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Going Concern Accounting Policy
The financial statements are prepared on a going concern basis. There are no material uncertainties in respect of the charity's ability to continue as a going concern for the foreseeable future, based on latest strategic plans and financial budgets.
Investment Policy
In 2008 it was agreed that an investment should be made by the purchase of new office accommodation more suited to the needs of the charity. This took place on 20 August 2008 and constituted a major investment for the charity. However, the trustees are conscious of the need to also retain funds in a liquid form to meet the requirements of the charity. The trustees closely monitor the returns of the investments.
To secure the funds of the charity all investments are made in the company name. The trustees, having considered the operating requirements of the charity and the reserves policy have, for the purpose of security, adopted the policy of holding funds in an interest-bearing account with the balance placed on treasury deposit with a major clearing bank. The use of treasury deposits seeks to achieve the best interest rate possible for the funds with no risk attached, however due to the low rates of return on the current investment the policy is to be reviewed and updated.
Reserves Policy
ColegauCymru is aware of the need to secure its viability beyond the immediate future and is committed to providing services over the longer term. To continue long term operations, it is necessary to be able to absorb unforeseen setbacks and be able to take advantage of opportunities which arise. To fulfil this requirement, the retention of adequate reserves is necessary. The target level of reserves which ColegauCymru should retain have been identified as follows:
Capital Reserve To provide funds to meet the existing and future capital spend requirements of ColegauCymru.
Critical/Closure Costs To retain funds to meet the closure costs which would be incurred should ColegauCymru cease operations. This would allow for a managed cessation of operations and includes
-
Notice of termination and redundancy costs for staff
-
• servicing equipment leasing arrangements
-
building insurance
• building maintenance until such time as a sale can be agreed. A two-year period has been allowed for the sale of the property. It is proposed that the sale of the property will be used to meet the liabilities of the LGPS (Local Government Pension Scheme) pension scheme.
Strategic Reserve To meet the costing requirements of any strategic items identified within the designated reserves
Free Reserves To target free reserves, equivalent to six months operating costs, currently circa 498,000 to enable the completion or wind up of project and other activities
The ColegauCymru reserves policy is regularly reviewed by the Board of Directors to assess the values contained within and to ensure that it continues to meet the requirements of the charity.
15
Annual Report and Accounts for year ended 31 July 2023
COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
The Directors have recognised the importance to the company of retaining the membership of all the colleges in Wales and of actively pursuing a policy to ensure that the company recognises the needs of the whole sector and caters for them appropriately.
They also recognise the importance to the company of winning bids for projects and research, both in terms of prestige and financial security and conversely the risks involved if the company is unsuccessful in this area.
Post Balance Sheet Events
During October 2023 the group were victim of a cyber fraud resulting in significant cash reserves been misappropriated. Immediate steps were taken to contain the incident, including undertaking response plans and engaging both cyber security experts and legal teams to embark on recovering the lost funds.
This has been treated as a non-adjusting post balance sheet event and there has been no impact on the financial results reported for the year ended 31 July 2023.
To date 21% of the funds have been recovered and the legal team are confident that the unauthorised transactions are covered under Part 7 of the Payment Services Regulations 2014 (PSR 2017) giving grounds to fully recover the funds, we are continuing to engage with our solicitors on this matter.
Fforwm Services Limited
Fforwm Services Limited was established in 1995 and is the charity's trading subsidiary. The company's principal activities include the provision of service contracts in areas relevant to the parent charity, CPD training for college staff and the wider post-16 education sector, property and equipment leasing. 2022/23 was a further year of change for the organisation with a reduction in the previous year's contract service activity in Fforwm Services Ltd. The Directors are satisfied with the overall performance of the company during the year as the global pandemic restricted opportunities to seek out additional income. In future the company plans to continue to participate in contracted services and utilise conference events to provide additional income whilst supporting its policy objectives.
The company made a loss for the year on ordinary activities of £2,429 (2022: 8,885 profit). A distribution of £1,000 (2022: £8,100) has been made to Colleges Wales / ColegauCymru Ltd.
During the year the company's turnover decreased to £66,543 (2022: £115,340). A decision was taken to hold an annual conference in October 2023 which proved very successful. No CPD events were held during the 2022/23 financial year.
Limited by Guarantee
The company is limited by guarantee and as such has no shareholders. The members of the company are Wales' FE colleges and institutions.
Related Parties
Due to the nature of the organisation, its membership and the composition of the Board, it is inevitable that transactions will take place with company members. All transactions involving subsidiaries, company members or organisations in which a member of the Board may have an interest are conducted at arm's length and in accordance with the organisation's financial regulations.
16
Annual Report and Accounts for year ended 31 July 2023
COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
DIRECTORS' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The Directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law that Directors have elected to prepare the financial statements in accordance with United Kingdom General Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit and loss of the company for that period. In preparing those financial statements, the Directors are required to:
-
select suitable accounting policies and then apply them consistently make sound judgments and estimates that are reasonable and prudent
-
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the company will continue in business
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006 and the Statement of Recommended Practice, Accounting and Reporting by Charities (issued March 2005). 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.
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the Directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each Director has taken all the steps that he ought to have taken as a Director to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Auditors
Subject to a diligent tendering process, Bevan Buckland LLP were appointed external auditors for a three year period, the ColegauCymru Board formally approved their appointment on 17 November 2022 following the option to extend the contract which was actioned in 2020 and a decision taken by the Board to extend the contract for a further one-year period to cover the 2020/21 financial statements due to the continuing restrictions caused by Covid-19.
This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by charities (issued March 2019) and in accordance with the provisions applicable to companies subject to small companies' regime of the Companies Act 2006.
Chairofthe:o Date Guy Lacey
Annual Report and Accounts for year ended 31 July 2023
17
COLEGAUCYMRU LTD I ANNUAL REPORT & ACCOUNTS 2022 - 2023
REFERENCE AND ADMINISTRATIVE INFORMATION
Company Number: 2832103 Registered Charity Number: 1060182 Registered Office and operational address: Unit 7 Cae Gwyrdd Greenmeadow Springs Tongwynlais Cardiff CFlS 7AB Auditors: Bevan Buckland LLP Ground Floor, Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA Solicitors: Capital Law Capital Building Tyndall Street Cardiff CFl0 4AZ Bankers: Barclays Bank pie PO Box 69 Cardiff CFl lSG
18
Annual Report and Accounts for year ended 31 July 2023
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF COLLEGES WALES / COLEGAU CYMRU FOR THE YEAR ENDED 31 JULY 2023
Opinion
We have audited the financial statements of Colleges Wales / Collegau Cymru Limited (parent charity) and its subsidiary (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, Charity Balance Sheet, the consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and parent charitable company's affairs as at 31 July 2023 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and - - a [7 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 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. a
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
Page 19
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF COLLEGES WALES / COLEGAU CYMRU FOR THE YEAR ENDED 31 JULY 2023
In connection with our audit of the financial statements, our responsibility is to read the other information | . and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. 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. . | .
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception on ~ .
In the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
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:
-
adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees Responsibilities, 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'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 charitable company or to cease operations, or have no realistic alternative but to do so.
Our 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 a Report of the Independent Auditors 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.
Page 20
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF COLLEGES WALES / COLEGAU CYMRU FOR THE YEAR ENDED 31 JULY 2023
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
-
enquiring of management, including obtaining and reviewing supporting documentation, concerning the
-
charity's 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 related to fraud or non-compliance with laws and
-
regulations;
• discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas:
• Management override of controls
• obtaining an understanding of the legal and regulatory frameworks that the group operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the group, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.
Audit response to risks identified
In addition to the above, our procedures to respond to risks identified included the following:
-
reviewing the financial statement disclosures and testing to supporting documentation to assess
-
compliance with relevant laws and regulations;
• enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
-
reading minutes of meetings of those charged with governance and reviewing correspondence with
-
HMRC; and
-
in addressing the risk of fraud through management override of controls, testing the appropriateness of
-
journal entries and other adjustments;
-
assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
-
and
• evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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.
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 Report of the Independent Auditors.
Page 21
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF COLLEGES WALES / COLEGAU CYMRU FOR THE YEAR ENDED 31 JULY 2023
Use of our report
This report is made solely to the group'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 group's members those matters we are required to state to them in an auidtors' 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 group and the group's members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Jones (Senior Statutory Auditor) for and on behalf of Bevan Buckland LLP Chartered Accountants And Statutory Auditors Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA
Date: ....09-04-2024........... .
Page 22
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES AND CONSOLIDATED INCOME EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2023
| Note | Unrestricted | Restricted | Total | Total | |
|---|---|---|---|---|---|
| funds | funds | 2023 | 2022 | ||
| £ | £ | £ | £ | ||
| INCOME AND ENDOWMENTS FROM | |||||
| Charitable activities: | 2 | ||||
| Annual subscriptions | 946,755 | - | 946,755 | 830,391 | |
| Advancement of education for the | |||||
| benefit of the general public | 8,272 | 2,319,799 | 2,328,071 | 2,293,862 | |
| Other trading activities: | |||||
| Commercial trading operations | 5 | 66,543 | - | 66,543 | 115,340 |
| Investments | 3 | 57,771 | - | 57,771 | 17,839 |
| Total income | 1,079,341 | 2,319,799 | 3,399,140 | 3,257,432 | |
| EXPENDITURE ON | |||||
| Charitable activities | |||||
| Advancement of education for the | |||||
| benefit of the general public | 6 | 669,840 | 2,323,051 | 2,992,891 | 2,966,791 |
| Other trading activities: | |||||
| Commercial trading operations | 5 | 69,345 | - | 69,345 | 106,487 |
| Total expenditure | 739,185 | 2,323,051 | 3,062,236 | 3,073,278 | |
| NET INCOME/ (EXPENDITURE) | 340,156 | (3,252) | 336,904 | 184,154 | |
| Transfers between funds | (3,252) | 3,252 | - | - | |
| OTHER RECOGNISED GAINS/ (LOSSES) | |||||
| Fair Value Adjustment | - | - | - | 160,000 | |
| Actuarial gain / (loss) on defined | |||||
| benefit scheme | (39,000) | - | (39,000) | 368,000 | |
| Net movement in funds in year | 297,904 | 297,904 | 712,154 | ||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 15 | 1,637,372 | - | 1,637,372 | 925,218 |
| TOTAL FUNDS CARRIED | 15 | 1,935,276 | - | 1,935,276 | 1,637,372 |
| FORWARD |
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
Page 23
COLLEGES WALES/ COLEGAU CYMRU LIMITED (Limited by Guarantee) COMPANY NO. 2832103 CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 JULY 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Note | Note £ |
£ £ |
£ | £ | |
| FIXED ASSETS | |||||
| Tangible assets | 10 | 316,625 | 316,071 | ||
| Investment Property | 11 | 275,000 | 275,000 | ||
| 591,625 | 591,071 | ||||
| CURRENT ASSETS | |||||
| Debtors | 13 | 977,217 | 336,948 | ||
| Cash at bank and in hand | 1,474,266 | 2,363,899 | |||
| 2,451,483 | 2,700,847 | ||||
| CREDITORS: amounts falling due | |||||
| within one year | 14 | (1,092,832) | (1,654,546) | ||
| NET CURRENT ASSETS | 1,358,651 | 1,046,301 | |||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 1,950,276 | 1,637,372 | |||
| Defined pension scheme liability TOTAL ASSETS Represented by: FUNDS Unrestricted funds Restricted funds |
20 15 15 |
(15,000) 1,935,276 1,935,276 1,935,276 1,637,372 1,637,372 1,637,372 == |
|||
| These financial statements have been prepared in accordance with the special provisions of Part 15 of the | These financial statements have been prepared in accordance with the special provisions of Part 15 of the | These financial statements have been prepared in accordance with the special provisions of Part 15 of the | These financial statements have been prepared in accordance with the special provisions of Part 15 of the | ||
| Companies Act 2006 relating to small charitable companies. |
The notes on ages 28 to 54 form part of these accounts.
The Finl3'nc· I S atements were approved by the Board of Trustees on their b h by:
- . .. and signed on /_.2;).l>-j
Guy Lacey - Director & Trustee
Page 24
COLLEGES WALES / COLEGAU CYMRU LIMITED Company Number: 2832103 (Limited by Guarantee) CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 JULY 2023
| 2023 Note £ £ _— |
£ | 2022 £ |
|---|---|---|
| FIXED ASSETS Tangible assets Investment Property Investments 9 315,548 11 275,000 12 100 590,648 as |
314,867 275,000 100 589,967 |
|
| CURRENT ASSETS Debtors Cash at bank and in hand 13 1,033,271 1,396,834 a |
684,801 1,969,924 |
684,801 1,969,924 |
| 2,430,105 —— |
2,654,725 | 2,654,725 |
| CREDITORS: amounts falling due within one year 14 (1,079,863) --—-— |
(1,620,135) | |
| NET CURRENT ASSETS 1,350,242 a |
1,034,590 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES 1,940,890 |
1,624,557 | |
| an | ||
| Defined pension scheme (liability) / asset 20 (15,000) —— |
- | |
| TOTAL ASSETS 1,925,890 eer |
1,624,557 | |
| Represented by: FUNDS Unrestricted funds 15 1,925,890 Restricted funds 15 1,925,890 = |
1,624,557 - 1,624,557I |
|
| These financial statements have been prepared in accordance with the special provisions of Part 15 of the | These financial statements have been prepared in accordance with the special provisions of Part 15 of the | |
| Companies Act 2006 relating to small charitable companies. | ||
| The notes n es 28 to 54 form part of these accounts. The Fi / ci St tements were approved by the Board of Trustees on their eh I y: ... ........... Ca |
($(?.'?. ?:-. | . and signed on |
Guy Lacey - Director & Trustee
Page 25
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2023
| Note | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Net cash inflow/ (outflow) from operating activities: | (875,142) | 595,718 | |
| Cash flows from investing activities: | |||
| Interest received | 7,524 | 975 | |
| Capital expenditure | (22,015) | (4,741) | |
| Net cash used in investing activities | (14,491) | (3,766) | |
| Change in cash and cash equivalents in the | (889,633) | 591,952 | |
| reporting period | |||
| Cash and cash equivalents at the beginning of the | 2,363,899 | 1,771,947 | |
| reporting period | |||
| Cash and cash equivalents at the end of the reporting | 1,474,266 | 2,363,899 | |
| period |
Page 26
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
| 1 Reconciliation of net consolidated incoming resources for the year to net |
1 Reconciliation of net consolidated incoming resources for the year to net |
|
|---|---|---|
| cash inflow from operating activities | 2023 | 2022 |
| £ | £ | |
| Net income for the year before taxation | 336,904 | 184,154 |
| Depreciation charge Property Impairment |
21,461 | 27,102 71,293 |
| (Increase)/ Decrease in debtors | (640,269) | (142,745) |
| (Decrease)/ Increase in creditors | (561,714) | 350,889 |
| Interest received | (7,524) | (975) |
| Defined benefit pension scheme contributions | (179,000) | (156,000) |
| Defined benefit pension scheme operating cost | 155,000 | 259,000 |
| Net finance expenses from the pension scheme | 3,000 | |
| Net cash inflow/ (outflow) from operating activities | (875,142) | 595,718 |
| 2 | Analysis of changes in net fund | At 31 July | Cash | At 31 July |
|---|---|---|---|---|
| 2022 | Flows | 2023 | ||
| £ | £ | £ | ||
| Cash at bank and in hand | 2,363,899 | (889,633) | 1,474,266 |
Page 27
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
1 PRINCIPAL ACCOUNTING POLICIES
Basis of Accounting and assessment of going concern
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)' (Effective 1 January 2019), Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.
The financial statements are prepared on a going concern basis. There are no material uncertainties in respect of the group's ability to continue as a going concern for the foreseeable future, based on latest strategic plans and financial budgets.
Basis of consolidation
The financial statements consolidate the results of the charity and its wholly owned subsidiary Fforwm Services Ltd 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.
Incoming Resources
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Subscription fee income is accounted for on an accruals basis and is recognised in the period of membership.
Income from courses and conferences is recognised when the respective event occurs.
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.
Allocation of support costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Charity's activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.
Resources expended
Expenditure is recognised on an accrual basis as a liability is incurred. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities, and its services for its beneficiaries. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fee and costs linked to the strategic management of the charity. All costs allocated between the expenditure categories of the SOFA are on a basis designed to reflect the use of the resources. Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Charity's activities. A note of these costs are detailed in note 6.
Page 28
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
PRINCIPAL ACCOUNTING POLICIES - (Cont'd)
Tangible Fixed Assets
The cost of tangible fixed assets is their purchase cost, together with any incidental costs of acquisition.
Depreciation is calculated so as to write off the cost of tangible fixed assets, less their estimated residual values, on a straight line basis over the expected useful economic life of the assets as follows:
| Buildings | 50 years* |
|---|---|
| Computer equipment | 3 years |
| Office equipment | 5 years |
| Fixtures and fittings | 10 years |
- Buildings - The building was subject to an impairment charge in 2014/15. Following this the revised value of the property was depreciated on a straight line basis over the remaining 43 years.
Investment property
Mixed use property are required to be shown between freehold property and Investment property, the proportion of Investment property has been valued based on a square foot use and then adjusted to its fair value.
Investment property are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the statement of comprehensive income.
Investment properties are derecognised when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal
Financial Instruments
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic Financial Assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of Financial Liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Page 29
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
PRINCIPAL ACCOUNTING POLICIES - (Cont'd)
Basic Financial Liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Pension
Pension costs are accounted for on the basis of charging the cost of providing pensions over the period during which the company benefits from the employees services. The Charity pension scheme is a defined benefits scheme.
The Charity participates in the Cardiff and Vale of Glamorgan Pension Fund, a defined benefit scheme for employees. The assets of the scheme are held separately from those of the charity. Many of the key financial assumptions are derived from the yields on AA rated corporate bonds or from yields on Government bonds with the objective of reflecting a best estimate of future experience.
The fund is valued at least every three years by a professionally qualified independent actuary with the rates of contribution payable being determined by the trustees on the advice of the actuary. In the intervening years, the actuary reviews the progress of the scheme. Pension scheme assets are valued at the market value at the balance sheet date. The pension scheme deficit is recognised in full on the balance sheet.
Fund accounting
The various types of funds for which the Charity is responsible and which require separate disclosure, are as follows:
Unrestricted funds
Funds which are expendable at the discretion of the directors in furtherance of the objects of the charity.
Restricted funds
Subscriptions and grants whose use is restricted to purposes specified by the donor. Such purposes are within the overall aims of the organisation.
Irrecoverable VAT
All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Foreign Currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Page 30
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) | NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
PRINCIPAL ACCOUNTING POLICIES - (Cont'd)
Leases
Rentals receivable under operating leases are charged to the income statement on a straight-line basis over the term of the relevant lease.
Legal Status of the charity
The Charity is a company limited by guarantee and has no share capital. 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.
Taxation
The Company is registered as a Charity and as such tax exemption applies to the income arising from and expended on charitable activities and to its investment income and gains.
Its subsidiary company, Fforwm Services Limited, gifts their surplus to its holding company. Any surplus remaining is subject to corporation tax.
Employee Benefits
The group provides a range of benefits to employees, including paid holiday arrangment and defined benefit and defined contirbution pension plans.
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
Accounting estimates and key judgements
Critical accounting estimates and judgements - 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. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
(i) Retirement benefit liabilities - as disclosed in note 20. Year end recognition of the liabilities under these schemes and the valuation of assets held to fund these liabilities require a number of significant assumptions to be made, relating to levels of scheme membership, key financial market indicators such as inflation and expectations on future salary growth and asset returns. These assumptions are made by the Charity in conjunction with the schemes' actuaries. For each 0.1 % change in the discount rate net of inflation, the carrying amount of pension obligations would change by an estimated £56,000.
Page 31
COLLEGES WALES I COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
| 2 Charitable Activities - Group |
Unrestricted | Restricted | Total | Total |
|---|---|---|---|---|
| funds | funds | 2023 | 2022 | |
| £ | £ | £ | £ | |
| Annual subscriptions: | ||||
| General subscriptions EU/International subscription Sports subscription |
820,483 65,117 61,155 |
- - - |
820,483 65,117 61,155 |
704,119 61,155 65,117 |
| Advancement of education for the | ||||
| benefit of the general public: | ||||
| Representational Activities Research/Project Activities Training Activities |
6,923 1,349 - |
- 2,319,799 - |
6,923 2,321,148 - |
5,192 2,288,670 - |
| 955,027 | 2,319,799 | 3,274,826 | 3,124,253 | |
| 3 Investments - Group | Unrestricted | Restricted | Total | Total |
| funds | funds | 2023 | 2022 | |
| Gain on Asset Disposal | 150 | - | 150 | - |
| Bank Interest | 7,524 | - | 7,524 | 975 |
| Exchange Rate Gain | 26,379 | - | 26,379 | - |
| Rental Income | 23,718 | - | 23,718 | 16,864 |
| 57,771 | - | 57,771 | 17,839 |
4 Results of the Parent Company
A separate statement of financial activities and income and expenditure account are not presented for the charity itself following the exemptions afforded by section 408 of the Companies Act 2006 . The parent company's gross income and deficit for the year are as follows:-
| charity itself following the exemptions afforded by section 408 of the Companies Act 2006 . The parent company's gross income and deficit for the year are as follows:- |
charity itself following the exemptions afforded by section 408 of the Companies Act 2006 . The parent | charity itself following the exemptions afforded by section 408 of the Companies Act 2006 . The parent |
|---|---|---|
| 2023 | 2022 | |
| Gross Income | 3,325,884 | 3,143,060 |
| Surplus before actuarial gains/(losses) on pension scheme | 315,483 | 289,366 |
Page 32
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
5 Commercial trading operations and investment in trading subsidiary
The company has a wholly owned trading subsidiary, Fforwm Services Limited incorporated in England and Wales, which it acquired on 14 July 1995. Fforwm Services Limited was established to conduct the business activities of Colleges Wales / Colegau Cymru Limited, its parent company. These activities currently comprise the provision of professional training, development courses and property and equipment leasing. The net assets of the subsidiary are £9,487 (2022: £12,916).
| The trading results are shown below : | 2023 | 2022 |
|---|---|---|
| £ | ||
| Turnover | 66,543 | 115,340 |
| Cost of sales | (59,975) | (96,129) |
| Gross profit | 6,568 | 19,211 |
| Administrative expenses | (9,370) | (10,358) |
| Operating profit | (2,802) | 8,853 |
| Interest receivable and similar income | 373 | 32 |
| (Loss)/ Profit on ordinary activities | (2,429) | 8,885 |
| Tax on profit on ordinary activities | - | - |
| (Loss)/ Profit for the financial year | (2,429) | 8,885 |
| Retained earnings at beginning of year | 12,816 | 12,031 |
| Dividends | (1,000) | (8,100) |
| Retained earnings at end of year | 9,387 | 12,816 |
These results are wholly included in the consolidated financial statements
Page 33
COLLEGES WALES/ COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
6 Resources expended - Group
| Research & | Management | ||||||
|---|---|---|---|---|---|---|---|
| Basis of | Representation | Dev, inc | & | ||||
| Allocation | & Support | Training | Projects | Governance | 2023 | 2022 | |
| £ | £ | ||||||
| Costs Directly Allocated to Activities | |||||||
| Educational Advancement | Direct | 1,499 | - | 1,916,974 | - | 1,918,473 | 1,835,971 |
| Staff costs | Direct | 531,337 | - | 359,958 | 16,338 | 907,633 | 880,130 |
| Travel | Direct | 12,854 | - | 8,989 | 5,980 | 27,823 | 8,151 |
| Support costs Allocated to Activities | |||||||
| Accommodation Administration & Bank Charges Fees and charges Public affairs and other costs Depreciation Property Impairment |
Staff time Staff time Staff time Staff time Staff time Staff time |
18,748 29,766 12,335 9,994 11,728 - |
- - - 1,988 - |
13,086 17,739 6,367 - 8,186 - |
594 805 7,254 - 372 - |
32,428 48,310 25,956 11,982 20,286 - |
20,762 43,566 63,213 18,594 25,111 71,293 |
| Total Resources Expended | 628,261 | 1,988 | 2,331,299 | 31,343 | 2,992,891 | 2,966,791 |
Page 34
COLLEGES WALES I COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
7 Directors and employees - Group - No director received any remuneration for their services to the company in 2023 or 2022.
No directors received travel and subsistence expenses in 2023 (2022 - £nil).
The average number of persons employed by the company during the year was 16 (2022: 15).
| Staff costs for the above consisted of : | 2023 | 2022 | |
|---|---|---|---|
| £ | £ | ||
| Wages and salaries | 404,704 | 120,307 | |
| Salaries, Social Security & Pension costs allocated to projects | Salaries, Social Security & Pension costs allocated to projects | 375,425 | 362,369 |
| Pension actuary adjustment | (39,000) | 106,000 | |
| Pension costs | 122,032 | 155,071 | |
| Social security costs | 44,282 | 57,543 | |
| Recruitment costs | 190 | 30,092 | |
| 907,633 | 831,382 | ||
| Emoluments of higher paid employees pension contributions): £125,000 to £150,000 |
(excluding | 2023 1 ne |
2022 |
The Pensions Contributions relating to the highest paid employee amount to £8,854 (2022: £25,923)
During the year the total employee benefits received by key management personnel amounted to £102,479 (2022: £109,957).
| The average number of employees during the year, calculated on the basis of full time equivalents, was as |
|---|
| follows: |
| Representation & Support Research & Development, inc. Projects Governance 2023 9 6 1 16 2022 9 5 1 15 Oo |
| 8 Net incomingI(outgoing) resources - Group |
| Net incoming/ (outgoing) resources are stated after charging/ (crediting) the following : Depreciation on owned tangible fixed assets Operating lease rental: Land and buildings Auditors' remuneration: Audit work (group & companies) Non-audit work Legal and professional fees 2023 £ 21,461 45,250 9,650 7,550 9,169 2022 £ 27,102 45,250 6,750 6,167 12,334 i |
Page 35
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
9 Analysis of pension costs charged to the Statement of Financial Activities - Group
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Current service charge | 168,000 | 259,000 |
| Total operating charge to Statement of Financial | ||
| Activities | 168,000 | 259,000 |
| 2023 | 2022 | |
| £ | £ | |
| Interest income on scheme assets | (131,000) | (63,000) |
| Interest expense on defined benefit obligation | 103,000 | 66,000 |
| Interest charged to Statement of Financial Activities | (28,000) | 3,000 |
| Net cost to Statement of Financial Activities | 140,000 | 262,000 |
10 Tangible fixed assets - Group
| Freehold Property |
Office equipment |
Fixtures & Fittings |
Computer equipment |
Total | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 August 2022 | 615,220 | 73,905 | 94,285 | 85,709 | 869,119 |
| Additions | 1,912 | 9,776 | 10,327 | 22,015 | |
| Disposals | (959) | (6,229) | (7,188) | ||
| Reclassification | |||||
| At 31 July 2023 | 615,220 | 74,858 | 104,061 | 89,807 | 883,946 |
| Depreciation | |||||
| At 1 August 2022 | 315,220 | 72,958 | 89,784 | 75,086 | 553,048 |
| Charge for the year | 8,333 | 804 | 2,070 | 10,254 | 21,461 |
| Disposals | (959) | (6,229) | (7,188) | ||
| Reclassification | |||||
| At 31 July 2023 | 323,553 | 72,803 | 91,854 | 79,111 | 567,321 |
| Net book value | |||||
| At 31 July 2023 | 291,667 | 2,055 | 12,207 | 10,696 | 316,625 |
| At 31 July 2022 | 300,000 | 947 | 4,501 | 10,623 | 316,071 |
Page 36
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
| 10 Tangible fixed assets - Company Freehold Property |
10 Tangible fixed assets - Company Freehold Property |
Office equipment |
Fixtures & Fittings |
Computer equipment |
Total |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 August 2021 | 615,220 | 57,189 | 63,051 | 70,093 | 805,553 |
| Additions | 1,912 | 9,776 | 9,277 | 20,965 | |
| Disposals | (959) | (4,637) | (5,596) | ||
| Impairment | |||||
| At 31 July 2022 | 615,220 | 58,142 | 72,827 | 74,733 | 820,922 |
| Depreciation | |||||
| At 1 August 2021 | 315,220 | 56,265 | 58,606 | 60,595 | 490,686 |
| Charge for the year | 8,333 | 786 | 2,049 | 9,116 | 20,284 |
| Disposals | (959) | (4,637) | (5,596) | ||
| Reclassification | |||||
| At 31 July 2022 | 323,553 | 56,092 | 60,655 | 65,074 | 505,374 |
| Net book value | |||||
| At 31 July 2022 | 291,667 | 2,050 | 12,172 | 9,659 | 315,548 |
| At 31 July 2021 | 300,000 | 924 | 4,445 | 9,498 | 314,867 |
11 Investment Property - Group
| 11 Investment Property - Group | 2023 | 2022 |
|---|---|---|
| £ | ||
| FAIR VALUE | ||
| At 1 August 2021 | 275,000 | 115,000 |
| Fair value adjustment | 160,000 | |
| At 31 July 2022 | 275,000 | 275,000 |
At 31 July 2022
This relates to a proportion of the freehold property held by the charity which is leased out to a third party organisation. Due to a change in accounting standards, the proportion of the property leased out requires to be shown as investment property.
The property was valued by an external valuer, Alder King LLP on 13th September 2022.
The trustees do not believe there to be a material difference of the investment property between the year end date and the date of the valuation.
Page 37
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
| 12 | Fixed asset investments - Company | Company | Company |
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Investment in subsidiary | 100 | 100 |
Information relating to the charity's trading subsidiary, Fforwm Services Limited, registered in England and Wales and its activities during the year, are shown in note 5.
| 13 Debtors |
Group | Company | Group | Company |
|---|---|---|---|---|
| 2023 | 2023 | 2022 | 2022 | |
| £ | £ | £ | £ | |
| Amounts falling due within one year | ||||
| Trade debtors | 5,801 | 5,801 | 18,847 | 847 |
| Accrued income | 934,865 | 929,215 | 276,011 | 271,012 |
| Amounts due from subsidiary undertaking | 71,587 | 377,765 | ||
| Prepayments | 36,551 | 26,668 | 42,090 | 35,177 |
| 977,217 | 1,033,271 | 336,948 | 684,801 | |
| 14 Creditors : amounts falling due |
||||
| within one year | Group | Company | Group | Company |
| 2023 | 2023 | 2022 | 2022 | |
| £ | £ | £ | £ | |
| Trade creditors | 412,179 | 410,795 | 219,828 | 219,327 |
| Accruals | 302,618 | 297,701 | 668,429 | 650,011 |
| Deferred income | 324,453 | 317,690 | 742,751 | 730,188 |
| Other taxation and social security | 53,582 | 53,677 | 23,538 | 20,609 |
| 1,092,832 | 1,079,863 | 1,654,546 | 1,620,135 |
Page 38
COLLEGES WALES / COLEGAU CYMRU LIMITED
(Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
| 15 Funds - Group |
Transfer | Other | ||||
|---|---|---|---|---|---|---|
| At 01.08.22 Incoming | At 01.08.22 Incoming | Resources | between | recognised | At 31.07.23 | |
| Unrestricted funds | £ | resources | expended | fund | gain/loss | £ |
| General Fund | 746,300 | 1,079,341 | (717,724) | (25,266) | (39,000) | 1,043,651 |
| Capital Asset Reserve | 591,072 | (21,461) | 22,014 | 591,625 | ||
| Critical / Closure costs | 240,000 | 240,000 | ||||
| Strategic reserve | 40,000 | 40,000 | ||||
| Capital Spend Reserve | 20,000 | 20,000 | ||||
| 1,637,372 | 1,079,341 | (739,185) | (3,252) | (39,000) | 1,935,276 | |
| Restricted funds | ||||||
| Project Activities | - | 2,319,799 | (2,323,051) | 3,252 | ||
| TOTAL FUNDS | 1,637,372 | 3,399,140 | (3,062,236) | (39,000) | 1,935,276 |
The restricted funds received during the year were as follows:
| Transfer from | |||||
|---|---|---|---|---|---|
| Opening | unrestricted | Closing | |||
| balance | Income | Expenditure | funds | balance | |
| £ | £ | £ | £ | £ | |
| Erasmus+ Staff 2019 | 176 | 1,487 | 1,311 | ||
| ILS | 35,000 | 35,586 | 586 | ||
| ALN - Advisor | 153,038 | 153,038 | |||
| ALN - Advisor | 29,512 | 29,512 | |||
| Active Wellbeing | 35,043 | 35,043 | |||
| Construction | 7,000 | 7,117 | 117 | ||
| Sport | 84,245 | 84,245 | |||
| Sport | 49,155 | 49,155 | |||
| Sports Guidance | 9,000 | 9,000 | |||
| SPW SOF | 37,167 | 37,167 | |||
| Cymraeg Gwaith | 268,908 | 268,908 | |||
| Turing | 5,915 | 5,915 | |||
| Taith | 207,542 | 207,542 | |||
| Taith 2 | 45,483 | 45,483 | |||
| Erasmus + Learner 2020 | - | 1,193,797 | 1,193,797 | ||
| Four Nations | 10,000 | 10,000 | |||
| Erasmus + Learner 2019 | 2,758 | 2,758 | |||
| WG Taith PLF | 34,890 | 34,890 | |||
| BLG | 61,550 | 61,896 | 346 | ||
| Workload | 25,000 | 25,892 | 892 | ||
| Erasmus + Staff 20 | 24,620 | 24,620 | |||
| 2,319,799 | 2,323,051 | 3,252 |
Page 39
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) i ro NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
Funds - Charity
| Funds - Charity | ||||||
|---|---|---|---|---|---|---|
| Transfer | Other | |||||
| At 01.08.22 | Incoming | Resources | between | Recognised | At 31.07.23 | |
| Unrestricted funds | £ | resources | expended | fund | Gain/Loss | £ |
| General Fund | 734,690 | 1,013,425 | (669,840) | (4,033) | (39,000) | 1,035,242 |
| Capital Asset Reserve | 589,867 | 781 | 590,648 | |||
| Critical / Closure costs | 240,000 | 240,000 | ||||
| Strategic reserve | 40,000 | 40,000 | ||||
| Future Capital Reserve | 20,000 | 20,000 | ||||
| 1,624,557 | 1,013,425 | (669,840) | (3,252) | (39,000) | (39,000) 1,925,890 |
|
| Restricted funds | ||||||
| Research/Project Activities | 2,319,799 | (2,323,051) | 3,252 | |||
| TOTAL FUNDS | 1,624,557 | 3,333,224 | (2,992,891) | (39,000) | (39,000) 1,925,890 |
The restricted funds received during the year were as follows:
| Transfer to / from | |||||
|---|---|---|---|---|---|
| Opening | unrestricted | Closing | |||
| balance | Income | Expenditure | funds | balance | |
| £ | £ | £ | £ | £ | |
| Erasmus + Staff 2019 | 176 | 1,487 | 1,311 | ||
| ILS | 35,000 | 35,586 | 586 | ||
| ALN - Advisor | 153,038 | 153,038 | |||
| ALN - Advisor | 29,512 | 29,512 | |||
| Active Wellbeing | 35,043 | 35,043 | |||
| Construction | 7,000 | 7,117 | 117 | ||
| Sport Sport Sports Guidance |
84,245 49,155 9,000 |
84,245 49,155 9,000 |
|||
| SPW SOF | 37,167 | 37,167 | |||
| Cymraeg Gwaith | 268,908 | 268,908 | |||
| Turing | 5,915 | 5,915 | |||
| Taith | 207,542 | 207,542 | |||
| Taith 2 | 45,483 | 45,483 | |||
| Erasmus + Learner 2020 | 1,193,797 | 1,193,797 | |||
| Four Nations | 10,000 | 10,000 | |||
| Erasmus+ Learner 2019 | 2,758 | 2,758 | |||
| WG Taith PLF | 34,890 | 34,890 | |||
| BLG | 61,550 | 61,896 | 346 | ||
| Workload | 25,000 | 25,892 | 892 | ||
| Erasmus + Staff 20 | 24,620 | 24,620 | |||
| 2,319,799 | 2,323,051 | 3,252 |
Page 40
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
Comparatives for movement in funds - Group
| Transfer | Other | |||||
|---|---|---|---|---|---|---|
| At 01.08.21 | Incoming | Resources | between | Recognised | At 31.07.22 | |
| Unrestricted funds | £ | resources | expended | fund | Gain/Loss | £ |
| General Fund | 100,492 | 980,734 | (692,664) | (10,262) | 368,000 | 746,300 |
| Capital Asset Reserve | 524,726 | (98,395) | 4,741 | 160,000 | 591,072 | |
| Strategic reserve | 240,000 | 240,000 | ||||
| Capital Spend Reserve | 40,000 | 40,000 | ||||
| International Curriculum | 20,000 | 20,000 | ||||
| Develoement | ||||||
| 925,218 | 980,734 | (791,059) | (5,521) | 528,000 | 1,637,372 | |
| Restricted funds | ||||||
| Research/Project Activities | Research/Project Activities | 2,276,698 | (2,282,219) | 5,521 | ||
| TOTAL FUNDS | 925,218 | 3,257,432 | (3,073,278) | 528,000 | 1,637,372 |
The restricted funds received during the year were as follows:
| Transfer from | |||||
|---|---|---|---|---|---|
| Opening | unrestricted | Closing | |||
| balance | Income | Expenditure | funds | balance | |
| £ | £ | £ | £ | £ | |
| Erasmus + Migrant Sport | 299 | (299) | |||
| Erasmus + Staff 2019 | 21,030 | 22,572 | 1,542 | ||
| ILS | 21,984 | 21,984 | |||
| ALN - Advisor | 147,177 | 147,177 | |||
| ALN - Advisor | 28,628 | 28,628 | |||
| Active Wellbeing | 45,000 | 45,000 | |||
| Active Wellbeing | 6,227 | 6,227 | |||
| Sport | 44,954 | 44,954 | |||
| Sport | 103,569 | 103,569 | |||
| SPWWOW | 226,100 | 226,100 | |||
| WGWOW | 30,000 | 30,000 | |||
| WG SOF | 12,833 | 12,833 | |||
| Cymraeg Gwaith | 251,539 | 251,539 | |||
| Welsh/Cymraeg Gwaith | 116,694 | 116,694 | |||
| Turing | 466,025 | 466,025 | |||
| Transitions (TIP) | 18,933 | 18,933 | |||
| Erasmus + Learner 2019 | 316,793 | 316,793 | |||
| Workload | 337,428 | 337,428 | |||
| Workload | 6,151 | 6,151 | |||
| BFL | 25,000 | 26,323 | 1,323 | ||
| Governance | 19,500 | 19,538 | 38 | ||
| KTS | 30,000 | 30,000 | |||
| Erasmus + Staff 20 | 1,291 | 1,291 | |||
| EQF Workplan | 834 | 834 | |||
| Erasmus + Learner 2020 | 1,626 | 1,626 | |||
| 2,276,698 | 2,282,219 | 5,521 |
Page 41
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
A current year 12 months and prior year 12 months combined position is as follows:
| Transfer | Other | |||||
|---|---|---|---|---|---|---|
| At 01.08.21 Incoming | At 01.08.21 Incoming | Resources | between | Recognised | At 31.07.23 | |
| Unrestricted funds | £ | resources | expended | fund | Gain/Loss | £ |
| General Fund | 100,492 | 2,060,075 | (1,410,388) | (35,528) | 329,000 | 1,043,651 |
| Capital Asset Reserve | 524,726 | (119,856) | 26,755 | 160,000 | 591,625 | |
| Critical/ Closure costs | 240,000 | 240,000 | ||||
| Strategic Reserve | 40,000 | 40,000 | ||||
| Capital Spend Reserve | 20,000 | 20,000 | ||||
| 925,218 | 2,060,075 | (1,530,244) | (8,773) | 489,000 | 1,935,276 | |
| Restricted funds | ||||||
| Research/Project Activities | - | 4,596,497 | (4,605,270) | 8,773 | ||
| TOTAL FUNDS | 925,218 | 6,656,572 | (6,135,514) | 489,000 | 1,935,276 |
Page 42
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
- Taith 2022 (staff and learner) This project is enabling 52 FE learners and over 300 staff to undertake 3 to 14 days study/training/volunteering/work experiences worldwide. The project will end on 31 August 2023.
Turing Scheme 2021 (learner) - This project enabled 183 FE learners to undertake 2 - 3 week study/volunteering/work experiences worldwide. The project ended on 31 August 2022.
Turing Scheme 2023 (learner) - Funding was approved in July 2023 to enable 251 FE learners to undertake 2 - 3 week study/volunteering/work experiences worldwide. The project will end on 31 August 2024.
-
Erasmus+ 2020 (learner) Funding was approved in July 2020 to enable 876 vocational learners and apprentices to undertake 2-week work placements in Europe. The project will be completed on 30 December 2023 following the approval of a 12-month extension by the UK National Agency due to Covid-19.
-
Erasmus+ 2020 (staff) Funding was approved in July 2020 to enable 30 staff from FE colleges and other appropriate organisations in Wales to undertake 4-day study visits to Ireland, Norway and Austria. The project will be completed on 30 December 2023 following the approval of a 12-month extension by the UK National Agency due to Covid-19.
-
Erasmus+ 2019 (learner) This project enabled 160 learners to undertake 2 week work placements in Europe. The project ended on 31/8/2022.
Erasmus+ 2019 (staff)- This project enabled 17 staff from FE colleges and other appropriate organisations in Wales to undertake a 4-day study visit to Stuttgart, Germany. The project ended on 31 August 2022.
Erasmus+ KA2 - CollegesWales International is a partner in a Key Action 2 project led by CIPFP La Costera in Valencia, Spain. The project ended in October 2022.
CQFW Alignment Contract- Welsh Government funding was received from April 2021 - March 2022 and from April 2022 to March 2023 to ensure continued alignment of the Credit and Qualifications Framework for Wales (CQFW) to the European Qualifications Framework (EQF) and to other UK National Frameworks.
- Sport Wales Core funding This project is based on developing active wellbeing in FE colleges, focus on delivery of physical activity and volunteering initiatives.
Sport Wales Winter of Wellbeing - These are sport projects funded by WG via Sport Wales and form part of the renew and reform funding / covid recovery. The focus is on outdoor activity, holiday camps and upskilling of sports learners.
WG Winter of Wellbeing - This is part of the Wellbeing projects (including active wellbeing) funded directly to CC and colleges from WG. ColegauCymru had a monitoring, evaluation and support role on this project.
Summer of Fun - These sports projects are a follow on from SPW WOW and commenced during the Summer of 2022. The focus is on outdoor activity, holiday camps and upskilling of sports learners.
WG Mental Health - Active Wellbeing - WG funding for research and events linked to Active Wellbeing. ColegauCymru manages this as part of the "National" strand of the funding.
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COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
WG Sport Guidance - This project delivers funding to develop resources for FE Sport providers relating to guidance for collaborative activity and events.
Colleges Wales Sport - Competitive sports, events and representative teams for FE Colleges funded by subscriptions.
-
Cymraeg Gwaith The Cymraeg Gwaith project aims to strengthen Welsh language skills in the workplace. The scheme is funded by the Welsh Government and developed by the National Centre for Learning Welsh. The Further Education and Higher Education Welsh Language Scheme is co-ordinated by the Coleg Cymraeg Cenedlaethol in partnership with ColegauCymru.
-
Additional Learning Needs (ALN) ColegauCymru is running a Welsh Government funded project to support and challenge colleges as they prepare for the implementation of the Additional Learning Needs and Education Tribunal (Wales) Act in September 2023 . As part of this, an ALN Implementation Lead has been employed.
Independent Living Skills (ILS) - ColegauCymru secured grant funding from Welsh Government to continue the ILS project to support colleges with the roll out of the new curriculum for ILS learners. The project also enabled the continuation of the ILS network to support, share and develop effective curriculum practice and to prepare the sector for the implementation of the ALN Act
-
Review of leadership in PCET ColegauCymru secured grant funding from the National Academy for Educational Leadership (NAEL) and contracted the Learning and Work Institute to undertake a review leadership in the Post-compulsory Education and Training (PCET) sector and to provide a series of independent recommendations for policy-makers and organisations.
-
Review of FE lecturer workload phase 3 ColegauCymru was awarded grant funding from Welsh Government to continue its coordination of the national social partnership steering group for workload review. The workload project phase 3 supported the continuation of the independent consultant to chair a steering group, hosted by ColegauCymru and provide grant funding to each of the further education institutions (FEis) and support them to create their action plans in collaboration with their local social partnerships.
Knowledge Transfer Scheme - ColegauCymru received funding from the Welsh Government to undertake an evaluation of the Knowledge Transfer Scheme (KTS). Tin addition to the evaluation, ColegauCymru undertook the coordination of the individual projects ensuring alignment with local, regional, and national needs.
- Taith Pathway 1 Round 3 (Learner and staff) Funding was approved in June 2023 to enable 86 FE learners to undertake work, study, training and volunteering opportunities overseas. The project will end on 28 February 2025.
Taith Pathway 2 Round 1 (Strategic Partnerships) - Funding was approved in February 2023 to learn from Finland about how to ensure the seamless integration of governance, funding, and the oversight of post compulsory education in Wales under CTER. The project will end on 30 October 2024 .
Page44
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
15 Funds - (Con't)
The unrestricted funds held by the charity at 31st July 2023 were as follows:
£
General Fund 1,043,651 This represents general unrestricted funds for use within the charity Existing Capital Reserve 591,625 This represents funds designated for the net book value of capital assets held within the Charity at the year end. Critical / Closure costs 240,000 To meet the potential closure costs which would be incurred should the charity cease.
Strategic reserve 40,000 To meet the costs of strategic expenditure identified within the designated reserves which are funded through income and expenditure account. Future Capital Reserve 20,000 This represents future plans for capital spend
1,935,276
Analysis of assets between funds:
| Unrestricted Restricted | Unrestricted Restricted | Total | Total | |
|---|---|---|---|---|
| General | Funds | Funds | Funds | |
| Funds | 2023 | 2022 | ||
| £ | £ | £ | £ | |
| Tangible Fixed Assets | 591,625 | 591,625 | 591,071 | |
| Current Assets | 1,418,260 | 1,033,223 | 2,451,483 | 2,700,847 |
| Current Liabilities | (74,609) | (1,033,223) (1,107,832) | (1,033,223) (1,107,832) | (1,654,546) |
| 1,935,276 | 1,935,276 | 1,637,372 |
16 Leasing agreements
Minimum lease payments under non-cancellable operating leases fall due as follows:
| GROUP ONLY | Properties | Other | 2023 | 2022 |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Within one year | 44,250 | 3,389 | 44,250 | 44,250 |
| Between one and five years | 10,169 | 10,169 | 16,947 | |
| 44,250 | 13,558 | 54,419 | 61,197 |
Page45
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
17 Comparative Statement of Financial Activities
| Note | Unrestricted | Restricted | Total |
|---|---|---|---|
| funds | funds | 2022 | |
| £ | £ | £ | |
| INCOME AND ENDOWMENTS FROM | |||
| Donations and legacies | - | - | - |
| Charitable activities: | |||
| Annual subscriptions | 830,391 | - | 830,391 |
| Advancement of education for the | |||
| benefit of the general public | 17,164 | 2,276,698 | 2,293,862 |
| Other trading activities: | |||
| Commercial trading operations | 115,340 | - | 115,340 |
| Investments | 17,839 | - | 17,839 |
| Total income | 980,734 | 2,276,698 | 3,257,432 |
| EXPENDITURE ON | |||
| Charitable activities | |||
| Advancement of education for the | |||
| benefit of the general public | 684,572 | 2,282,219 | 2,966,791 |
| Other trading activities: | |||
| Commercial trading operations | 106,487 | - | 106,487 |
| Total expenditure | 791,059 | 2,282,219 | 3,073,278 |
| NET INCOME/ (EXPENDITURE) | 189,675 | (5,521) | 184,154 |
| Transfers between funds | (5,521) | 5,521 | - |
| OTHER RECOGNISED GAINS/ (LOSSES) | |||
| Fair Value Adjustment | 160,000 | 160,000 | |
| Actuarial gain on defined benefit | |||
| scheme | 368,000 | - | 368,000 |
| Net movement in funds in year | 712,154 | - | 712,154 |
| RECONCILIATION OF FUNDS | |||
| Total funds brought forward | 925,218 | - | 925,218 |
| TOTAL FUNDS CARRIED | 1,637,372 | - | 1,637,372 |
| FORWARD |
The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities.
Page46
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
18 Capital commitments and contingencies
There were no capital commitments as at 31 July 2023 (2022: nil)
19 Post balance sheet events
During October 2023 the group were victim of a cyber fraud resulting in significant cash reserves being misappropriated. Immediate steps were taken to contain the incident including undertaking response plans and engaging both cyber security experts and legal teams to embark on recovering the lost funds.
This has been treated as a non-adjusting post balance sheet event and there has been no impact on the financial results reported for the year ended 31st July 2023. The trustees are confident that this does not impact the going concern status of the charity.
There were no other reportable subsequent events following the balance sheet date.
20 Pensions
The charity participates in the Cardiff & Vale of Glamorgan pension fund (the "Fund"), which is part of the Local Government Pension Scheme. Colegau Cymru I Colleges Wales participates in the Fund which provides defeined benefits on members' final pensionable salary. In accordance with FRS 102 - Retirement Benefits disclosure defined benefits, of certain information concerning assets, liabilities, income and expenditure relating to pension schemes is required.
Contributions for the year ending 31 July 2024
The Employer's regular contributions to the fund for the year ending 31 July 2024 are estimated to be £0.096M. In addition, Strain on Fund Contributions may be required.
Assumptions
The latest actuarial valuation of Colleges Wales liabilities took place as at 31 March 2019. Liabilities have been estimated by the independent qualified actuary on an actuarial basis using the projected unit credit method. The principal assumptions used by the actuary in updating the latest valuation of the Fund for FRS 102 purposes were:
| 31-Jul-23 | 31-Jul-22 | 31-Jul-21 | |
|---|---|---|---|
| (%pa) | (% pa) | (% pa) | |
| Discount rate | 5.0 | 3.5 | 1.7 |
| RPI inflation | 2.6 | 2.6 | 2.6 |
| CPI inflation | 2.6 | 2.6 | 2.6 |
| Rate of increase to pensions in payment | 2.6 | 2.6 | 2.6 |
| Rate of revaluation of pension accounts | 2.6 | 2.6 | 2.6 |
| Rate of general increase in salaries | 3.6 | 3.6 | 3.6 |
Mortality Assumptions
The mortality assumptions are based on the recent actual mortality experience of members within the Fund and allow for expected future mortality improvements.
Page 47
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
20 Pensions - (Cont'd)
Assumed life expectancy at age 65
Males 31 July 23 31 July 22 Future lifetime from age 65 (current aged 65) 22.0 22.1 Future lifetime from age 65 (current aged 45) 22.6 23.2 Females 31 July 23 31 July 22 Future lifetime from age 65 (current aged 65) 24.2 24.6 —FAe Future lifetime from age 65 (current aged 45) 25.3 26.0 Asset allocation Value at Value at 31 July 2023 31 July 2022 (EM) (EM) Equities 68.1% 67.2% Property 7.0% 7.5% Government bonds 8.8% 9.0% Corporate bonds 7.5% 8.0% Multi Asset Credit 5.3% 5.6% Cash 3.3% 2.7% Other 0.0% 0.0% Total 100.0% 100.0% > Reconciliation of funded status to balance sheet Value at Value at 31 July 2023 31 July 2022 (EM) (EM) Fair value of fund assets 3.994 3.674 Present value of liabilities 2.825 2.962 Funded status 1.169 0.712 Unrecognised asset (1.169) 0.000 Additional liability due to minimum funding requirement 0.015 0.000 Pension asset/(liability) recognised on the Balance Sheet 0.015 0.000 Ty Page 48
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS
| FOR THE YEAR ENDED 31 JULY 2023 |
|---|
| 20 Pensions - (Cont'd) |
| Amounts reocgnised in Income Statement Year ending 31 July 2022 (EM) Operating Cost Current service costs 0.168 Past service costs 0.000 Curtailment cost 0.000 Settlement cost 0.000 Financing Cost Interest costs (0.003) Expense recognised in Profit and Loss 0.165 Year ending 31 July 2021 (EM) 0.259 0.000 0.000 0.000 0.003 0.262 oe |
| Allowance for administration expenses included in Current Service Cost in 2023 and 2022 £0.003m. |
| Changes to the present value of liabilities during the year Year ending Year ending 31 July 2023 31 July 2022 (EM) (£M) Opening present value of liabilities 2.962 3.914 Current service cost 0.168 0.259 Interest cost 0.103 0.066 Contributions by participants 0.042 0.040 Actuarial (gains)/losses on liabilities (0.389) (1.231) Net benefits paid out# (0.061) (0.086) Past service cost 0.000 0.000 Net increase in liabilities from disposals and acquisitions 0.000 0.000 Curtailments 0.000 0.000 Settlements 0.000 0.000 Closing present value of liabilities 2.825* 2.962 i |
| * Includes changes to the actuarial assumptions |
| # Consists of net cashflow out of the Fund in respect of the employer, excluding contributions and any |
| death in service lump sums paid, and including an approximate allowance for the expected cost of death in |
| service lump sums. |
Page 49
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
20 Pensions - (Cont'd) Changes to the fair value of assets during the year Year ending Year ending 31 July 2023 31 July 2022 (EM) (£M) Opening fair value of assets 3.674 3.652 lnteret income on assets 0.131 0.063 Remeasurement gains/(losses) on assets 0.029 (0.151) Contribution by the employer 0.179 0.156 Contribution by participants 0.042 0.040 Net benefits paid out# (0.061) (0.086) Net increase in assets from disposals and acquisitions 0.000 0.000 Settlements 0.000 0.000 IE Closing fair value of assets 3.994 3.674 # Consists of net cash-flow out of the Fund in respect of the employer, excluding contributions and any death in service lump sums paid, and including an approximate allowance fo rthe expected cost of death in service sums. Actual return on assets Year ending Year ending 31 July 2023 31 July 2022 (EM) (£M) Interest income on assets 0.131 0.063 Gain/(Loss) on assets 0.029 (0.151) —r Actual return on assets 0.160 (0.088) Analysis of amount recognised in Other Comprehensive Year ending Year ending Income 31 July 2023 31 July 2022 (EM) (£M) Asset gains/(losses) arising during the period 0.029 (0.151) Actuarial gains/losses due to changes to financial assumptions 0.712 - Actuarial gains/losses due to changes to demographic assumptions 0.050 - - Actuarial gains/losses due to liability experience (0.373) Adjustment due to unrecognised asset (0.432) (0.712) Liability gains/(losses) arising during the period (0.015) 1.231 Total (loss) in OCI (0.029) 0.368 = Page 50
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
21 EFFECT OF PENSION ON THE DEFICIT FOR THE YEAR
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Surplus before pension adjustment | 312,904 | 290,154 |
| Pension adjustment Included in the Income & expense account | ||
| Employers contributions transferred against liability | (179,000) | (156,000) |
| Pension adjustment | 155,000 | 259,000 |
| Finance cost | - | 3,000 |
| Surplus/(Deficit) per accounts | 336,904 | 184,154 |
Page 51
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
22 Related party transactions
Due to the nature of the charity's activities and the composition of its board of directors and that of its subsidiary undertaking Fforwm Services Limited, (being principals and Governors of Further Education colleges in Wales) it is inevitable that in the course of its normal business activities, the charity will undertake transactions with those Colleges in which a member of the board of the charity, or its subsidiary undertaking will have an interest.
All transactions involving Colleges in which a member of either Board of Directors may have an interest are conducted at arms length and in accordance with the charity's normal financial procedures.
The trustees' of the charity during the year and their relationship with the respective Colleges were :
| Director | College | Relationship |
|---|---|---|
| Guy Lacey (appointed 01/07/18) Chair | CEO/Principal, Coleg Gwent | Trustee |
| Simon Pirotte (appointed 04/01/21, resigned | CEO/Principal, Bridgend College | Trustee |
| 31/12/22) | ||
| Louise Casella (appointed 1 /8/19) | Director, The Open University in | Trustee |
| Wales | ||
| Jeffrey Greenidge (appointed 1 /8/19) | Owner, Ariege Consultancy | Trustee |
| Paul Smart (appointed 04/01/21) | Retired | Trustee |
| Rhiannon Evans (appointed 24/11/21) | Senior Lecturer, Cardiff University Trustee | Senior Lecturer, Cardiff University Trustee |
| Suzy Davies (appointed 24/11/21) | Senedd Member | Trustee |
| Lisa Thomas (appointed 04/01/23) | Principal and Chief Executive, The Trustee | Principal and Chief Executive, The Trustee |
| College, Merthyr Tydfil |
During 2020/21 it was agreed that there should be a common board for both companies and this was put into effect from 04/01/2021
The Directors of the subsidiary undertaking, Fforwm Services Limited, during the year and their relationship with the respective Colleges were:
Director College Relationship Guy Lacey (appointed 01/07/18) Chair CEO/Principal, Coleg Gwent Director Simon Pirotte (appointed 04/01/21, resigned CEO/Principal, Bridgend College Director 31/12/22) Louise Casella (appointed 04/01/21) Director, The Open University in Director Wales Jeffrey Greenidge (appointed 04/01/21) Owner, Ariege Consultancy Director Paul Smart (appointed 04/01/21) Retired Director Rhiannon Evans (appointed 24/11/21) Senior Lecturer, Cardiff University Director Suzy Davies (appointed 24/11/21) Senedd Member Director Lisa Thomas (appointed 04/01/23) Principal and Chief Executive, The Director College, Merthyr Tydfil
The invoices issued to the relevant colleges during the year were for subscriptions for membership of Colegau Cymru I Colleges Wales and reimbursement of projects costs. Payments made to colleges were for catering at network events, work carried out on project activities.
Page 52
COLLEGES WALES / COLEGAU CYMRU LIMITED
(Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
22 Related party transactions - (Con't)
| Income invoiced to Colleges during the year Subs |
Income invoiced to Colleges during the year Subs |
Income invoiced to Colleges during the year Sport |
EU/Int | Dev | HR | Projects | Other | Total |
|---|---|---|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | £ | £ | £ | |
| Bridgend College | 45,639 | 5,738 | 5,259 | 5,000 | 605 | 62,241 | ||
| Cardiff and Vale | ||||||||
| College | 48,369 | 5,738 | 5,259 | 29,834 | 5,000 | 900 | 95,100 | |
| Coleg Sir Gar and | ||||||||
| Coleg Ceredigion | 48,369 | 5,738 | 5,259 | 5,000 | 1860 | 66,226 | ||
| Coleg Gwent | 48,369 | 5,738 | 5,259 | 5,000 | 875 | 65,241 | ||
| Coleg y Cymoedd | 48,369 | 5,738 | 5,259 | 5,000 | 5915 | 70,281 | ||
| Coleg Cambria | 48,369 | 5,738 | 5,259 | 32,495 | 5,000 | 1975 | 98,836 | |
| Gower College | ||||||||
| Swansea | 48,369 | 5,738 | 5,259 | 24,021 | 5,000 | 3255 | 91,642 | |
| Grwp Llandrillo Menai | 48,369 | 5,738 | 5,259 | 33,891 | 5,000 | 375 | 98,632 | |
| The College Merthyr | ||||||||
| Tydfil Ltd. | 27,870 | 5,738 | 5,259 | 5,000 | 275 | 44,142 | ||
| NPTC Group of | ||||||||
| Colleges | 48,369 | 5,738 | 5,259 | 45,278 | 5,000 | 1630 | 111,274 | |
| Pembrokeshire College | 33,282 | 5,738 | 5,259 | 60,412 | 5,000 | 275 | 109,966 | |
| Adult Learning Wales | 14,454 | 5,259 | 125 | 19,838 | ||||
| St David's Catholic | ||||||||
| College | 19,215 | 1,040 | 5,259 | 450 | 25,964 | |||
| Total | 527,412 | 64,158 | 68,367 | 225,931 | 55,000 | 18,515 | 959,383 |
• Associate member
Payments to Colleges during the year
| Payments to Colleges during the year |
||||||
|---|---|---|---|---|---|---|
| Catering/ Training | Catering/ Training | Other | Projects | Other | Total | |
| Aecom. | ||||||
| £ | £ | £ | £ | £ | £ | |
| Bridgend College | 556 | 96,586 | 97,142 | |||
| Cardiff and Vale College | 510 | 350 | 212,457 | 213,317 | ||
| Coleg Sir Gar and | ||||||
| Coleg Ceredigion | 127,128 | 127,128 | ||||
| Coleg Gwent | 591,214 | 591,214 | ||||
| Coleg y Cymoedd | 202 | 188,169 | 188,371 | |||
| Coleg Cambria | 788 | 169,103 | 169,891 | |||
| Gower College Swansea | 59,380 | 59,380 | ||||
| Grwp Llandrillo Menai | 248,978 | 248,978 | ||||
| The College Merthyr | ||||||
| Tydfil Ltd. | 133,671 | 133,671 | ||||
| NPTC Group of Colleges | 18,500 | 18,500 | ||||
| Pembrokeshire College | 146 | 36,166 | 36,312 | |||
| St David's Catholic | ||||||
| Sixth Form College | 76,334 | 76,334 | ||||
| Adult Learning Wales | 288 | 2,251 | 2,539 | |||
| Total | 1,546 | 510 | 784 | 1,959,937 | 1,962,777 |
Page 53
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023
22 Related party transactions - (Con't)
The following amounts were receivable from Colleges at 31 July 2023 :
| £ | |
|---|---|
| Bridgend College | 150 |
| Coleg Sir Gar | 110 |
| Coleg Ceredigion | 150 |
| Coleg Cymraeg | 500 |
| Coleg y Cymoedd | 40 |
| Gower College Swansea | 830 |
| Grwp Llandrillo Menai | 150 |
| Merthyr Tydfil College Neath Port Talbot College |
150 150 |
| Pembrokeshire College | 150 |
| Total | 2,380 |
The following amounts were due to Colleges at 31 July 2023
| £ | |
|---|---|
| Bridgend College Cardiff and Vale College |
49,361 142,007 |
| Coleg Sir Gar and Coleg Ceredigion | 61,615 |
| Coleg Cambria | 44,515 |
| Coleg y Cymoedd | 60,522 |
| Grwp Llandrillo Menai | 11,661 |
| Merthyr Tydfil College | 16,184 |
| Total | 385,865 |
Page 54
COLLEGES WALES / COLEGAU CYMRU LIMITED (Limited By Guarantee)
CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2023
| Year ended | Year ended | Year ended | Year ended | |
|---|---|---|---|---|
| 31 July 2023 | 31 July 2023 | 31 July 2022 | 31 July 2022 | |
| £ | £ | £ | £ | |
| INCOME | ||||
| College subscriptions | 946,755 | 830,391 | ||
| Grants receivable | 2,119,560 | 1,871,214 | ||
| Sports Grant Income | 201,588 | 417,456 | ||
| Other income | 6,923 | 5,192 | ||
| Bank interest | 7,524 | 975 | ||
| Disposal of Assets | 150 | - | ||
| Exchange rate gain | 26,379 | - | ||
| Rents received | 23,718 | 16,864 | ||
| Staff development activities | 21,293 | 70,090 | ||
| Lease rental income | 45,250 | 45,250 | ||
| 3,399,140 | 3,257,432 | |||
| LESS: | ||||
| COST OF SALES | ||||
| Other operating leases Staff development expenditure |
44,250 15,725 |
44,250 51,879 |
||
| 59,975 | 96,129 | |||
| EXPENDITURE | ||||
| Conferences | - | - | ||
| Public affairs and representation | 9,009 | 6,558 | ||
| Website development | - | 2,043 | ||
| Projects & advisory groups | 1,918,341 | 1,835,971 | ||
| Accomodation costs | 33,198 | 21,312 | ||
| Staff costs | 907,633 | 850,036 | ||
| Office administration | 54,735 | 86,878 | ||
| Travel & expenses | 31,036 | 8,151 | ||
| Legal & professional fees | 9,169 | 42,225 | ||
| Auditors remuneration | 15,500 | 6,750 | ||
| Auditors remuneration - non audit fees | 850 | 6,123 | ||
| Bank charges | 1,320 | 1,314 | ||
| Bad Debts | - | - | ||
| Exchange rate loss | 9 | 11,393 | ||
| Depreciation: | ||||
| Freehold property Fixtures & fittings |
8,333 2,874 |
10,314 7,350 |
||
| Computer equipment | 10,254 | 9,438 | ||
| Property Impairment | - | 71,293 | ||
| 3,002,261 | 2,977,149 | |||
| PROFIT/ (DEFICIT) FOR THE YEAR | 336,904 | 184,154 |
Appendix 1