CACDP TIA Signature (A company limited by guarantee) FINANCIAL STATEMENTS For the year ended 31 December 2023 Charity No: 1071662 Company No: 03581178 Scottish Charity number SC037901
Contents Page Reference and administrative details of the Charity, its Trustees and Advisers Trustees, Annual Report 4-10 Report of the Independent Auditors statement of Financial Activities 14 Balance Sheet 15 Slaternent of Cash Flows 16 Notes to the Financial Statements 17-34 CACDP
Reference and administrative details of the Charity, its Trustees and Advisers Status The organisation first became a registered charity in January 1982. It subsequently re registered on 22 September 1998, following incorporation as a company limited by guarantee on 15 June 1998. Trustees l Robinson J Walker (Chair) HJ Beaton M Hopkinson l Donnelly (resigned June 2023) E Winfield A Schembri J Mancin C Kerr K A Riley (resigned June 2023) Secretary L J Foster Chief Executive L J Foster Key Management Personnel L J Foster Registered office and principal address 1 St Floor, Shannon House, Mandale Business Park, Belmont Industrial Estate, Durham, DH1 1TH. Independent Auditor Mitchells Grievson Chartered Accountants. Kensington House, 3 Kensington, Bishop Aud(land, DL14 6HX Principal bankers Natwest Bank Plc, 12 Market Place, Durham, DHI 3NG. Solicito Muckle LLP, Time Central, 32 Gallowgate. NewGastle-upon-Tyne, NE14BF. CACDP
Trustees Annual Report (for the year ended 31 December 2023) Charity No: 01071662 Company No: 3581178 The trustees, who are directors of the charity for the purposes of company law, present their report and the audited financial statements for the year ended 31 December 2023. Structure, governance and management CACDP is organised through a Board of Trustees. Subcommittees are convened on an ad-hoc basis when required and are managed with specific lerms of reference and a set objective. The charitable company's governing documents are its Memorandum and Articles of Association dated October 2006 and the companies are limited by guarantee. Trustees are eligible to serve up to two terms of four years each and under exceptional circumstances, an additional term. Trustees are recruited through open, external prosseS which can use a variety of measures to raise awareness of the vacancy. Applications are sought which showcase skills and experience, and discussions held with a panel made up of trustees and the Executive. The panel will make recommendations to the full board. New trustees are appointed for a single term of four years and at that point, if they wish to serve a second term, they will share a statement about their time with Signature. A conversation with a panel will be held and recommendations will be made to the full board. Induction sessions are held for new trustees upon appointment which includes an update presentation to all trustees. New trustees are also provided with an induction pack which includes issues of 'charitable purpose" and °public benefit.. Trustees continue to be happy that CACDP meets these criteria. Day to day management of CACDP is delegated to the Chief Executive, Lindsay Foster. CACDP
Trustees Annual Report (for the year ended 31 December 2023) Objectives and principal activities The charity aims CACDP'S objects are the improvement of communication with deaf people, in particular by the education, training and examination of students and tutors in the different modes of communication used by such persons. CACDP is a charity which expresses its aim of advancing communication beleen deaf and hearing people through the functions of a recognised UK awarding body. We do this by offering high quality nationally accredited qualifications in sign language and other forms of communication used by deaf people as well as student support packages, training and teacher support packages. The charity's beneficiaries The following people benefit from CACDP'S work: Deaf, deafened, hard of hearing and deafblind people. Deaf and hearing students of courses leading to our qualifications. Deaf and hearing tutors of courses leading to our qualifications. Equal acSS to our seNices is importanl to us and we work throughout the country to ensure that provision is as widespread as possible. We record and monitor the range of beneficiaries where possible and each year we improve on that knowledge. We try to ensure that fees are maintained at a minimum level to ensure that our qualifications are affordable to all whilst covering our administration costs. CACDP was established by national organisations of and for deaf people to ensure the availability of leaming opportunities, qualifications and standards in the communication methods used by deaf people. These organisations are still involved with CACDP as trustees, project partners, subscribers and members of committees. CACDP responds to the needs of beneficiaries through the work of committees, through consultation with deaf individuals and organisations and through representation on the Board of Trustees. We have referred to the Charity Commission's general guidan of public benefit when reviewing our objectives and in developing our strategic and operational plans. Each year we review the strategic plan and ensure all activities are in line with the aims of the charity. Pay and remuneration setting for key management personnel is carried out by the Chair of the Board with the support of the other trustees. Key considerations are affordability, benchmarking, changes in roles and responsibilities as well as other market forces. All factors are considered and a recommendation is made to the to the Board of Trustees who made the final decision. CACDP
Trustees Annual Report (for the year ended 31 December 2023) Achievements and performance In the year to 31 Dember 2023 the main achievements within CACDP in addition to the delivery of the suite of qualifications and supporting products have been.. OfquallQiWICCEA CACDP are subject to Conditions of Recognition from OfquaVQiWICCEA. We evaluate the conditions on an annual basis to ensure Gompliance. We submitted our Statements of Compliance meeting the required deadlines. Centre Engagement Throughout 2023 we hosted drop in events for our centres to meet senior members of the team. During these sessions we provided updates on all of the current and planned Signature work and we answered questions that centre teams had for us. This allowed misconceptions to be corrected, clarification of updates and communications as well as guidance to be provided where needed. We have found these meetings extremely useful in meeting with our centres collectively as well as understanding what our centres are looking from rom us. We will continue to provide a flexible engagement programme to allow us to further develop our relationships. Centre numbers Centres numbers have continued to increase organically. In addition, we registered centres that were previously registered with IBSL which further increased our numbers. CACDP
Trustees Annual Report (for the year ended 31 December 2023) Financial review, including risks and uncertainties At the beginning of 2023 we were informed that our primary competitor, IBSL, was to cease trading. We worked with all our regulators to facilitate the transfer of all IBSL centres and candidates to our systems and qualifications where candidates wanted to continue with their courses. A considerable amount of time and resour$ was invested to fully understand each candidate and centre's situation as well as any potential risks. We were successful in creating a relationship with most of the centres and supported as many candidates as possible to continue on their learning path with Signature. We have taken on board feedback from these centres and have tried to understand the differences between the two organisations to help with the transition. We are pleased with this work but are open to understanding where we can improve further, especially taking the opinions of those who had chosen not to work with us prior to the closure of IBSL. This event. together with our ongoing work has resulted in an increase in both candidate numbers and centre numbers. We continue to offer more flexibility to our candidates via centres whilst maintaining standards and this has allowed our qualifications to be available to more people from wider areas and from situations where regular travel to ntreS isn't possible. Investments are still being maintained under a low-risk policy of long-term deposits with the trustees being keen to ensure the level of risk regarding these funds does not change. An annual review of risk is performed to identify and grade all known risks to the charity as part of the annual planning cycle. Appropriate mitigating actions are identified, and the effectiveness of these actions monitored. The process is overseen by the Board of Trustees. 2023 saw the retum to higher staffing levels again which allows us to continue to grow and develop whilst still achieving objectives and meeting changing business needs. We continue to provide strong working practises that are family friendly and creating a positive culture we Gan make our team as engaged as possible. A motivated workforce allows for greater creative thinking and the passion to achieve our objectives. Income in the year ended 31 December 2023 has increased by £295k from £958k in 2022 to £1,253k. Reserves have increased by £132k to £1,529m. KPI'S The Board monitors rformance with the followin Perfonnance Measure 2023 2022 Reserve level £1,529m £1.375m Current Ratio Candidate numbers Net sur us indicators of the charit Variance ex lanation GroKrth 22,707 £154k Growth Growth £116k CACDP
Trustees Annual Report (for the year ended 31 December 2023) Reserves CACDP has two unrestricted reserve categories.. Designated reserve (a) General reserve (b) (a) Should the need arise to designate unrestricted reserves for investment for a piece of work then an allocalion into these reserves may be appropriate. The Trustees would agree this in principle, the amount required will be recommended through the Board for approval. It should be noled that any designated amounts may be reviewed and amended by trustees at any time. (b) There is a need to maintain a level of general reserves to enable the charity to Cope with a variety of events, either day to day or exceptional. However CACDP believes that its reserves must be managed as a valuable asset for the organisation, As such it is important to balance the need to spend the reserved income of the Gharity with the potential risks that may be faced in the future. CACDP has one pension deficit of £24k (2022 - £46k). Maintenance of reserves levels CACDP rnaintains unrestricted reserves at a level which will cover emergency costs, unforeseen high level losses of income or business cessation. The most significant amount would be the business cessation for which £105k is considered a reasonable provision. In addition, due to the recent financial uncertainty that has been caused by COVID-19 and the economic environment, we will retain £200k in reserves to allow for any potential year end deficits. Restricted funds at 31 December 2023 were £17k, unrestricted funds held as fixed assets were £245k, leaving £1,294k as free reserves and available for the general purpose of the charity. This results in the current levels of free reserves being higher than required levels. CACDP
Trustees Annual Report (for the year ended 31 December 2023) The Future At CACDP we are currently embracing the growth and changes we are seeing with the recent changes in the market place as well as the challenges we issue ourselves inlernally. In 2023 one of our priorities was to invest in additional support products for our qualifications, we have decided to continue with this work following positive feedback. We have also engaged in a plan to update our website and incorporate more BSL translations in this work We will be continuing to carry out our programme of fa-tO-faCe engagements with centres and teachers as well as expanding our connections with other sectors to share the benefits of learning British Sign Language and improving deaf awareness, especially in education. Our work continues to support the development of a GCSE in BSL and we will work with all interested parties to assist with the work in this area. Public consultations from both Deoartment for Education and from Ofqual were published in 2023 with more technical consultations to follow in 2024. Increased slaff numbers will allow a wider delivery of awareness, marketing and influencing decision makers. ststement of trustees, responsibilities The trustees (who are also directors of Signature for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the trustees are required to: "select suitable accounting policies and then apply them consistently., •observe Ihe methods and principles in the Charities SORP. .make judgments and estimates that are reasonable and prudent. "state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 'prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts {Scotland) Regulations 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement as to disclosure of infomiation to auditors CACDP
The Trustees who were in office on the date of approval of these financial statements have confirmed. as far as they are aware, that there is no relevant audit infomiation of which the auditors are unaware. Each of the Twstees have confimied Ihat they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the organisation's Memorandum and Articles of Association and 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 (FRS 102) (effective 1 January 2015). Auditors A resolution to re-appoint the auditors for the ensuing year will be proposed at a board meeting. Approved by a meeting of the Board of Trustees on . .I bloq IIw.Itand signed on their behalf by-. Tru CHj w A-LkE H u&-LE G&TOj. Trustee.. CACDP 10
Independent Auditors, Report to the Trustees and members of CACDP TIA Signature (for the year ended 31 December 2023) Opinion We have audited the financial statements of CACDP for the year ended 31 December 2023 which comprise the Statement of Financial Activities, Balan Sheets, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. •give a true and fair view of the state of the charitable company's affairs as at 31 December 2023,. and of the charitable company's incoming resources and application of reSoUrs, including their 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 accordan with the Companies Act 2006, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Basis for opinion We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 151 of the Charities Act 2011 and under the Companies Act 2006 and report in accordan with regulations made under those Acts. We conducted our audit in accordan with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements Ihat are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any rnaterial uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does not cover the other information and, eXpt to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. CACDP 11
Independent Auditors. Report to the Trustees and members of CACDP TIA Signature (for the year ended 31 December 2023) Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordan with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which the audit was consldered capable of detecting irregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectives of our audil are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements. and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management. with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the charity audit engagement team.. •obtained an understanding of the nature of the sector, including the legal and regulatory frameworks that the charitable company operate in and how the charitable company are complying with the legal and regulatory framewoths. •inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud. •discussed matters about non-complian with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005 and the parent charitable company's governing document . We performed audit prOdureS to detect non-compllanS which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees, Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents. The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to The Office of Qualifications and Examinations Regulation (Ofqual). We performed audit procedures to inquire of management and those charged with governance whether the charity is in compliance with these law and regulations and inspected correspondence with regulatory authorities. CACDP 12
Independent Auditors. Report to the Trustees and members of CACDP TIA Signature (for the year ended 31 December 2023) The audit engagement team identified the risk of management override of controls as the area where the financial statements were most SUSptib1e to material misstatement due to fraud. Audit prOdureS performed included but were not limited to testing manual joumal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates. All relevant laws and regulations identified and areas susceptible to fraud that could have a material effect on the financial statements were communicated to component auditors. Any instances of non-compliance with laws and regulations identified and communicated by a component auditor were considered in our audit approach. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting CounGiI's website at htt '.Ilv4WN.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Use of our report This report is made exclusively to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordan with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011. Our audit work has been undertaken so that we might state to the members and the charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, its members as a body, and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. LY (Senior Statutory Auditor) For and on behalf of Mitchells Grievson Chartered Accountants, Statutory Auditor Kensington House, 3 Kensington Bishop Auckland DL14 6HX Mitchells Grievson Chartered Accountants is eligible to act as an auditor in temis of section 1212 of the Companies Act 2006 CACDP 13
Charitable Company Statement of Financial Activities for the year ended 31 December 2023 (including Income and Expenditure Account) Unrestricted Restricted Total Funds Funds Funds 2023 Total Funds 2022 Note Income from: Donations and legacies Other trading acts'vilies Investments 10 97,817 2,588 100,415 2b 2c 77.673 19,085 96,758 77.673 19,085 96,758 Charitable activities Examinations and centre registrations Development of examinations. training and materials 2d 1,142.185 6.4IKJ 1,148,585 1,142.185 16.036 1,158,221 852,147 9,636 852,147 other incoming resources Total income 5,880 958,442 1,245.343 9,636 1,254,979 Expendlture on: Raising fvnds Charitable activities: Examinations and centre registrations Sale of training materials Curriculum and other training Development of examinations, training and materials Total expenditure 482,340 215,762 52.823 339.806 1.090.731 482,340 215,762 52,823 349,442 1,100,367 492,517 88,735 38.718 172,407 792.377 9,636 9,636 Losses on Investhient assets (7.773) Losses disposal of assèts Actuarial r8measurement on defined benefit obligations (962) (962) 1,688 Net movement in fijnds 163.650 153,650 159,980 Reconciliation of funds Total funds brought forward 1,358,164 17.497 1,375,661 1,215,681 Total funds carried fonward 1,511,814 17,497 1,529,311 1,375,661 All operalions derive from continuing aclivities. 14 CACDP
Company Number: 03581178 Charitable Company Balance Sheet as at 31 December 2023 Note 2023 2022 Flxed assets Tangible assets Intangible assets Investments Total fixed assets 141,178 160,343 10 11 104,309 102,988 245,487 263,331 Current assets Stocks of training materials Debtors Cash at bank and in hand 12 13 20,076 94,349 1,178,876 154,371 1,315,024 1469,395 1,293,301 Creditors: Amounts falling due within one year Net current assets Total assets less current 14 184,287 158,291 1285,108 1,135,010 1,530,595 1,398,341 Creditors: amounts falling due in after more than one year 15 1,284 22,680 Net assets 1,529,311 1,375,661 Funds of the charity: Restricted income funds 16 17,497 17,497 Unrestricted funds: General funds Pension fund 16 16 1,536,107 24,293 1,403,853 45,689 1.511.814 1,358.164 Total funds 1,529,311 1,375,661 The financial statements o 14 to 34 were approved by the Board of Trustees and were signed on their behalf by.. Trustee.. oHfrJ lthl I¥LkE Trskee.. IIELENI CACDP 15
Company Number: 03581178 Statement of Cash Flows for the year ended 31 December 2023 Note 2023 2022 Cash flows from operatlng activitles Cash generated from operations 22 148,821 180,788 Investlng activlties Purchase of tangible fixed assets Investments (12,675) (45.978) Net cash used In Investing actlvitios (12,675) (45,978) Flnancing actlvities Debt repayments Net Cash used in financlng activlties Net Increase in cash and cash equivalents 134,810 136,148 Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of y•ar 1,044,066 1,178,876 1,315,024 1,178,876 16 CACDP
Notes to the Financial Statements for the year ended 31 December 2023 1. Accounting policies 1a) Basis of preparation Signature is a charitable company, limited by guarantee, regISted in England. The address of the charity's registered office and principal pla of business is Shannon House, Mandale Business Park, Belmont Industrial Estate, Durham, DH1 1TH. The charity meets the definition of a public benefit entity under FRS 102. The charity exists for the benefit of the public through the education, training and examination of students and tutors in the different modes of communication used by such persons. These financial statements have been prepared in accordan with "Accounting and Reporting by Charities": Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - {Charities SORP (FRS 102)). and the Companies Act 2006. Assets and liabilities are initially recognised at historical cost of transaction value except for investments which are included at market value. and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities, effective 1 January 2015 (Charities SORP (FRS 102)) and the Companies Act 2006. The financial statements are presented in sterling which is also the financial currency of the charity. The monetary amounts in these financial statements are rounded to the nearest £, except where otherwise indicated. Going concern FRS 102 requires that, if appropriate, the financial statements are prepared on the going concern basis, which means that the organisation is able to operate for the foreseeable future on the basis of known and reasonable projected resources. There are no material uncertainties in respect of the charity's ability to continue as a going concern. The ongoing demand for the services provided by the charity ensures the exposure to risk from the current difficult economic conditions is minimal. Free reserves are available to meet the charity's needs as they arise as detailed within the reserves policy. As a consequence, the Trustees believe the charity is well placed to manage its business risks successfully and thus they have adopted the going cOnM basis of accounting in preparing the financial statements. The charity had total funds of £1,529,311 as at 31 December 2023 (increase of £153,650 from 31 December 2022) and a year*nd cash balan of £1,315,024 (2022: £1,178,876). Cash reserves and year end results are strong. Forecasts for the period ended 31 Dember 2024 have been prepared, showing all anticipated costs together with prudent income growth. These confirm that the charity has sufficient cash for the organisation to continue for at least 12 months from the date these financial statements are signed. Al the time of approving the financial statements, the trustees have a reasonable expectation that the charity have adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. CACDP 17
Notes to the Financial Statements for the year ended 31 December 2023 1. A¢counting policies (continued) 1 b) Incoming resource5 All income disclosed in the Statement of Financial Activities is shown on an entitlement basis. All grant income is shown on an entitlement basis, except for restricted funds, where any income received in advance of expenditure is taken to the Statement of Financial Activities when the chairty becomes unconditionally entitled to the grant. Government grants are recognised when the conditions for receipts are met and there is reasonable assurance that the grant will be reived. Grants related to income are deducted in reporting the related expense. Govemment grants that are re1vable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related costs are recognised in profit and loss in the period in which they become receivable. Fees for examinations are normally On the assessment has been held and those applicable to the year accounted for in the Statement of Financial Activities. Any fees received during the year applicable to fLrture periods are shown as deferred income in the balance sheet. 1c) Expenditure Resources expended are recognised in the period in which legal or constructive obligation arises. ReSoUrS expended are allocated to the particular activity to which the cost relates. However the cost of overall direction and administration of each activity, comprising the salary and oveihead costs of the central function, is apportioned based on an estimate of the staff time, attributable to each activity: Examinations and centre registrations Qualification support Development of examinations, training and materials Governance costs relate to the costs associated with meeting the constitutional and statutory requirements of the charity. 1d) Fixed assets Tan ible Fixed assets Depreciation is provided at rates, set out below, calculated to write off the cost of each asset over its expected useful life. Items of equipment are capitalised where the purchase price exceeds £150, except for computer equipment which is all capitalised, with the exception of Gonsumables and accessories. Computer Software 5 years 20 % straight line Computer Equipment 3 years 33 % straight line Other Office Equipment 5 years 200/0 Straight line 42°/0 18 CACDP
Notes to the Financial Statements for the year ended 31 December 2023 Intan ible Fixed assets Intangible fixed assets are stated at cost, net of amortisation and any provision for impairment. Amortisation is calculated to write down the costs of completed assets less estimated residual value over the useful lives of all intangible assets by the straight line method. The annual charges on: Development expenditure 5 years 200fi straight line le) Investments Investments held as fixed assets are revalued at their market value at the balan sheet date and the gain or loss taken to the Statement of Financial Activities. 1fj Stocks Stocks comprise training packages and stocks of books and are valued at the lower of cost and net realisable value. Net realisable value is based on normal selling price. Provision is made for obsolete, slow moving or defective items where appropriate. All current stock levels are considered obsolete and therefore provided against at 1000/0. lg) Pension costs Contributions to defined contribution schemes are charged to the Statement of Financial Activities as they are incurred. A creditor is included on a discounted basis for known additional contributions as detailed in note 18. 1h) Funds Unrestricted funds are generated surpluses of the charity without further specified purpose and are available as general funds. Designated funds are unrestricted funds, earmarked by the trustees for particular purposes. Restricted funds are to be used for specific purposes as prescribed by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs. 1 i) Research and development Expenditure incurred on research and development in the year other than those costs able to be capitalised, is charged to the statement of financial activities. 1j) Operating leases Rentals applicable to operating leases where substantially all of the benefits and risks of ownership on a straight line basis over the period of the lease remain with the lessor are charges against surpluses. CACDP 19
Notes to the Financial Statements for the year ended 31 December 2023 I k) Taxatlon The charity is a registered charity and is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxable Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity. 11) Cash at bank and in hand Cash at bank and cash in hand includes cash held at bank and cash held in short temi investments. lm) Financial instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments" and Section 12 '0ther Financial Instruments Issues. of FRS 102, in full to all of its financial instruments. All of the charity's financial assets and financial liabilities qualify as basis financial instrumenls. Basic Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Financial assets: Trade and other debtors Trade and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairmenl losses. A provision for impairment of trade debtors is established when there is objective eviden that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the eXsS of the carrying value of the trade debtor over the present value of the fulure cash flows discounted using the original effective interest rate. Subsequent reversals of an impaimient loss that objectively relate to an event occurring after the impaiment loss was recognised, are recognised immediately in profit or loss. Financial liabilities: Trade and other creditors Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. Critical accounting estimates and areas of judgement Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. CACDP 20
Notes to the Financial Statements for the year ended 31 December 2023 2. Incoming resources 2023 2022 2a) Donatlons and lagacies- unrestrlcted Donations 10 10 2023 2022 2b} Other Trading activities - unrestricted Conferences and awards Qualification support products 18,535 79,282 97,817 77,673 2023 2022 2c) Investment income - unrestricted Bank interest Money market and other deposits 17,764 1,321 19,085 2,588 (7,773) 5,185 2023 2022 2d) Development of examinations, training and materials GCSE Total restricted developm8nt Income 9,636 2023 2022 28) Other Income - unrestricted Government grants Other Totsl other income - unrastrlcted 5,880 961 961 5,880 CACDP 21
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Notes to the Financial Statements for the year ended 31 December 2023 4. Net incomingloutgoing resources is after charging.. 2023 2022 Auditors remuneration 6,000 4,200 6,000 4,200 Operating lease costs-Land and Buildings 23,000 23,000 Depreciation 40,282 35,642 5. Staff costs 2023 2022 Salaries Employer's National Insuran Employer's Pension Contributions Redundancy costs 346,110 27,007 22,270 35,000 430,387 296,732 23,635 21,778 342,145 Recruitment fees Temporary staff 7,310 496 804 343,445 437,697 The average number of employees during the year was 12 (2022: 10). The following number of employees received annual emoluments exceeding £60,000 was 1 (2022: 1) December December 2023 2022 Between £60,000 and £70,000 Between £70,000 and £80,000 Pension contributions paid in the year in respect of the above staff were £7.586 (2022.. £7,173). CACDP 24
Notes to the Financial Statements for the year ended 31 December 2023 Key management personnel The key management personnel of the charity comprise the Trustees and Chief Executive. The total employee benefits of the key management personnel of the chairty were £83,269 (2022. £74,312). 6. Pension costs The Charity participates in two funds administered by the Pensions Trust. The Ethical Fund, a defined contribution scheme, and The Growth Plan, a multi-employer pension scheme. The charge to SOFA is the amount of the contributions payable. The amount of contributions outstanding at the year end was £24,926 (2022.. £45,689). 7. Indemnity insurance The Charity has Professional Liability Insuran cover for Trustees, committee members and staff. The limit of Indemnity in any one year is £1,000,000 (2022: £1,000,000) for which a premium of £1,786 (2022." £1,786} was paid. 8. Trustees remuneration and disbursement of expenses The Articles of Association permit the payment of fees and expenses to trustees when acting as examiners and trainers, etc, where such expertise is in short supply. In 2023 Nil (2022.. Nil) trustees received fees amounting to Nil (2022.. Nil) together with £ Nil (2022.. Nil) reirnbursement of expenses incurred. There were 4 (2022.. 6) other twstees who were reimbursed travel and subsistence expenses of £903 (2022: £1,165) for altendanGe at trustee meetings and other events. CACDP 25
Notes to the Financial Statements for the year ended 31 December 2023 9. Tangible fixed assets Furniture Office & fittings equipment Computer software Computer 2023 Total equipment Cost At 1 January 2023 Additions Disposals At 31 December 2023 60,884 2,829 6,580 57.133 31,441 1,881 3,072 30,250 330,328 2,310 124,946 15,307 547,599 22,327 9,652 560,274 332,638 140 253 Depreclatlon At 1 January 2023 Charge for the year Disposals At 31 Dernber 2023 49,278 4,210 5,371 48,117 31,046 474 187,509 32,110 119,423 3,490 387,256 40,282 8,443 419,096 31,046 219,619 122,913 Net book valua At 31 December 2023 9,016 1,803 113,019 17,340 141,178 At 31 December 2022 11,606 395 142.819 5,523 160 343 No tangible fixed assets were held under finance leases or hire purchase contracts. 10. Intangible fixed assets Rosaarch & Development Cost At 1 January 2023 Additions At 31 Dember 2023 173,739 173,739 Amortlsatlon At 1 January 2023 Charge for the year At 31 December 2023 173.739 173,739 Net book value At 31 Dernber 2023 At 31 December 2022 CACDP 26
Notes to the Financial Statements for the year ended 31 December 2023 11.Investments 2023 2022 Common Investment Funds 104,309 102,988 104,309 102,988 The Common Investment Fund comprises 507,961 accumulation units in The Schroders Charity Fixed Interest Fund. Carrying value at the beginning of the year Gain on investment Loss on revaluation Carrying value at the end of the year 102,988 1,321 104,309 All investment assets are held in the UK. 12.Stocks 2023 2022 Cost Provision for obsolescen 20,076 20,076 20,076 20,076 13. Debtors 2023 2022 Trade debtors Prepayments 93,408 60,963 154,371 70,305 24,044 94,239 CACDP 27
Notes to the Financial Statements for the year ended 31 December 2023 14. Creditors 2023 2022 Trade Creditors Other Tax and Social Security Accruals Deferred Income Pension Fund 64,359 11,425 25,669 59,825 23,009 184,287 50,698 9,313 15,749 59,523 23,009 158,292 Deferred Income Deferred Income at 31 December 2022 Amount released from previous year Amount deferred in current year Deferred income at 31 December 2023 59,523 (59,523) 59,825 59,825 Deferred income relates to centre fees invoiced in advance 15. Creditors due in more than one year 2023 2022 Pension creditor 1.284 22,680 CACDP 28
Notes to the Financial Statements for the year ended 31 December 2023 16. Movements in funds Balance blfwd Incoming resources Outgolng Transfers resources Balance clfwd Restrlcted funds: GCSE Other Total restricted funds 17,497 17,497 17.497 17,497 Unrestricted funds: Pension General funds Total unrestricted funds (45,689) 1,403,853 1,358,164 21,396 21,396 (24,293) 1.536,107 1,511814 1,253,658 11,100,008 1,253 658 1,100,008 Total funds 1,375,661 1,253,658 1,100,008 1,529,311 The transfer in the year relates to the deficit payments made on the pension provision. 2022 - Movements in funds Balance blfwd Incoming resources Outgoing resources Gains and Transfers lossès Balance clfwd Restricted funds: GCSE 19,130 306 19,436 (1,623) 306 17,497 Total restrlcted funds 17,497 Unrestrlcted funds: Pension General funds Total unrestricted funds (81,106) 1,277,351 958,442 1,196,245 958,442 1,688 (7,773) 6,085 33,729 (45,689) 33,729 1,403,853 1,358,853 790,438 790,438 Totsl funds 1,215.681 958,442 790,438 6,085 1,375,661 CACDP 29
Notes to the Financial Statements for the year ended 31 December 2023 17. Members liability The company is limited by guarantee and in the event of the winding up of the company, the liability of its members is limited to £1. 18. Pension Obligations The company participates in the scheme, a multi-employer scheme which provides benefrts to some 1300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a 'last-man standing arrangement,. Therefore the company is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. Deficit contributions A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows: Deficit contributions From 1 April 2022 to 31 January 2025: £3,312,000 per annum (payable monthly) Unless a concession has been agreed with the Trustee the term to 31 January 2025 applies. Note that the scheme's previous valuation was carried out at 30 September 2017. This valuation showed assets of £794.9m, liabilities of £926.4m and a deficit of £131.5m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows: Deficit contributions From 1 April 2019 to 30 September 2025: £11,243,000 per annum (payable monthly and increasing by 30h each on 1st April) CACDP 30
Notes to the Financial Statements for the year ended 31 December 2023 18. Pension Obligations {continued} The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities. Vvhere the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. RECONCILIATION OF OPENING AND CLOSING PROVISIONS PRESENT VALUES OF PROVISION 31 Dernber 2023 31 December 2022 31 December 2021 Present value of provision 24,293 45,689 81,106 Year Ending 31 December 2023 Year Ending 31 December 2022 Provision at start of year 45,689 81,106 Unwinding of the discount factor (interest expense) 1,653 690 Deficit contribution paid (23,009) (34,415) Remeasurements- impact of any change in assumptions Remeasurements- amendments to the Gontribution schedule (40) (1,688) Provision at end of year 24,293 45,689 CACDP 31
Notes to the Financial Statements for the year ended 31 December 2023 18. Pension Obligations (continued) INCOME AND EXPENDITURE IMPACT Year Endlng 31 December 2023 Year Endlng 31 December 2022 686 Interest expense Remeasurements- impact of any change in assumptions Remeasurements- amendments to the contribution schedule Contributions paid in respect of future service. Costs recognised in income and expenditure account 1,653 (40) (1.688) "includes defined contribution schemes and future service contributions li.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes. ASSUMPTIONS 31 December 2023 er annum 31 December 2022 er annum 31 December 2021 er annum 5.31 4.96 1.18 Rate of discount The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield cuNe to discount the same recovery plan contributions. 19. Related party transactions Mark Hopkinson, a trustee since 26th September 2017, is also Head of Sign Language and Lipreading at City Lit, London which operates as a centre providing assessments for CACDP'S qualifications. Fees are charged in line with the published price list. Fees and project costs charged during the period amounted to £18,276 and the balance due from the college at 31 st December 2023 was £576. 32 CACDP
Notes to the Financial Statements for the year ended 31 December 2023 20. Operating leases Annual commitments under nOn-canlIable operating leases are as follows'.- 2023 2022 Land and Land and Buildings Buildings 23,000 23,000 92.000 92,000 Within one year Between two and five years More than five years 115,000 115,000 21. Analysis of net assets between funds Unrestricted Restricted funds funds Totsi funds Fund balances at 31 December 2023 as represented by.. Tangible fixed assets Intangible fixed assets Investment assets Current assets Current liabilities Long term liabilities 141,178 141,178 104,309 1,451,897 (184,287) (1,284) 104,309 17,497 1,469,394 (184.287) (1,284) 1.529,310 1,511,813 17,497 Unrestricted Restrlcted funds funds Total Funds Fund balances at 31 December 2022 as represented by: Tangible fixed assets Intangible fixed assets Investment assets Current assets Current liabilities Long term liabilities 160,343 160,343 102,988 1,274,171 (158,292) (22,680) 102.988 19,130 1,293,301 (158,292) (22,680) 1,356,531 19,130 1,375,661 33 CACDP
Notes to the Financial Statements for the year ended 31December 2023 22. Cash generatsd from operations 2023 2022 Surplus for the year 153,649 159,980 Adjustments for Depreciation of tangible fixed assets Loss on investments 31,840 (1,321) 35,642 7,773 Movements in working Gapital (Increase)Idecrease in debtors (Decrease)lincrease in creditors Decreasel(increase) in stocks I ncreasel{Decrease) in pension reserve (60,022) 25,995 20,076 (21,396) (6,683) 19,493 (35.417) Cash generated from operations 148,821 180,788 34 CACDP