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← Aqa Education

2025-03-31-accounts

Questions matter

AQA Education

A company limited by guarantee

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

Registered company number 03644723

Registered charity number 1073334

www.aqa.org.uk

AQA Education Directors’ and Trustees’ Report including Strategic Report

Contents

Who we are ......................................................................................................................................................................................... 3 Our purpose ........................................................................................................................................................................................ 3 Public benefit ..................................................................................................................................................................................... 3 Our aims, activities and strategy ....................................................................................................................................................... 3 Achievements and Performance ....................................................................................................................................................... 4 Empowering learners and driving attainment ............................................................................................................................. 4 Supporting educators and professional growth .......................................................................................................................... 6 Pioneering future assessment and policy .................................................................................................................................... 7 Cultivating a thriving culture and sustainable operations .......................................................................................................... 8 Looking ahead .................................................................................................................................................................................... 9 Structure, governance and management ......................................................................................................................................... 9 Legal Status ................................................................................................................................................................................... 9 Group structure ............................................................................................................................................................................. 9 Governance and leadership ........................................................................................................................................................ 10 Trustee recruitment and induction ............................................................................................................................................ 12 Pay and Remuneration ................................................................................................................................................................ 12 Other Relationships ..................................................................................................................................................................... 13 Reference and administrative details .............................................................................................................................................. 13 The Charity Code of Governance – what it means to us ................................................................................................................. 14 Section 172(1) reporting .................................................................................................................................................................. 16 Stakeholder engagement............................................................................................................................................................ 16 Decision making .......................................................................................................................................................................... 17 Environmental policy ...................................................................................................................................................................... 18 Risk management ............................................................................................................................................................................ 20 Financial review ............................................................................................................................................................................... 21 Statement of Trustees’ responsibilities .......................................................................................................................................... 26 Independent auditors report ........................................................................................................................................................... 28 Statement of financial activities ...................................................................................................................................................... 32 Statement of financial position ...................................................................................................................................................... 33 Statement of cash flows................................................................................................................................................................... 35 Notes to the financial statements ................................................................................................................................................... 36 Legal and administrative details ..................................................................................................................................................... 81

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AQA Education Directors’ and Trustees’ Report including Strategic Report

Who we are

The Trustees of AQA Education present their annual report (incorporating the Strategic Report) and the audited financial statements for the year ended 31 March 2025. AQA is an education charity with more than 120 years of assessment expertise and knowledge. We are the most chosen general qualifications (GQ) awarding body in England.

We design and deliver rigorous and fair assessment to more than one million learners every year and believe that fair and inclusive assessment is at the heart of learning.

Our purpose

AQA exists solely to help learners succeed. This is reflected in our charitable purpose:

To advance education by enabling teachers and students to realise their potential

Our charitable object as described in our Governing Document is to advance education for the benefit of the public including, without limitation, by the preparation, validation, accreditation, conduct and administration of examinations for the award of general certificate of education, general certificate of secondary education and general national vocational qualification or such other certificates as may be substituted by them and any other tests, examinations or other systems of assessing and recording academic or other achievement.

Public benefit

We are confident in our role as a charity. We deliver services to the public and meet the Charity Commission’s public benefit requirements, with specific attention to ensuring that our services benefit society through advancing education, increasing social mobility and promoting learning. We have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

Our aims, activities and strategy

At AQA, our unwavering purpose is to advance education by enabling teachers and students to realise their full potential. As a leading education charity with more than 120 years of expertise, we firmly believe that fair, rigorous, and inclusive assessment is the cornerstone of effective learning and progression. Our charitable objects guide every aspect of our work, from the development and administration of examinations for general and vocational qualifications to pioneering new assessment systems, all for the public good. We aim to fulfil our charitable purpose by growing our activity across the full spectrum of educational assessment while also maintaining a broad portfolio of qualifications, including those that may not be commercially profitable but continue to hold significant educational value. We do this so that we can continue to raise the quality of teaching and learning for our customers and learners in the UK and internationally.

Our strategic framework is built upon six interconnected objectives, each designed to ensure we remain responsive and impactful at the forefront of educational advancement. These objectives are not merely internal targets; they are commitments to the educational community, guiding our investments in people, technology and partnerships to create a more equitable and effective assessment system for all.

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Our aims, activities and strategy (continued)

Achievements and Performance

Our commitment to advancing education is reflected in our achievements during financial year 2024/25. These accomplishments highlight our work and contributions to learners, educators, and the wider community. They demonstrate our dedication to public benefit, showing how our efforts deliver positive outcomes and contribute to strengthening the educational sector. Grouped by strategic impact, these achievements illustrate our ongoing work to build a fairer and more effective educational landscape.

1. Empowering learners and driving attainment

At the heart of AQA's mission is the learner. We strive for every individual to have access to high-quality, fair and relevant assessments that recognise their achievements and support their progression, regardless of their background. Throughout the year, our work has been driven by this commitment, evidenced by achievements such as:

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Achievements and Performance (continued)

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AQA Education Directors’ and Trustees’ Report including Strategic Report

Achievements and Performance (continued)

AQA impacts millions of learners through qualification delivery, expanded vocational and alternative pathways, and the development of future-focused, accessible qualifications. Our commitment to recognising diverse achievements and providing relevant, high-quality assessments ensures that every student has the opportunity to succeed and progress, directly fulfilling our charitable purpose.

2. Supporting educators and professional growth

Educators, schools and colleges are our primary customers, and their ability to effectively educate and prepare learners remains critical to our success. We are committed to offering innovative tools, comprehensive training and responsive support so that educators have the right resources to excel and enhance learner outcomes.

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Achievements and Performance (continued)

AQA's investment in digital tools such as AQA Stride and Data Insights, coupled with enhanced customer service channels and tailored professional development, has strengthened the resources available to educators. Our engagement and responsiveness to feedback, alongside high customer satisfaction and low turnover, indicates that educators, schools, and colleges feel supported, reflecting our commitment to being the 'customer's first choice' .

3. Pioneering future assessment and policy

As an organisation committed to educational advancement, we seek to use our expertise and insights to inform and influence educational policy. Our aim is for the future of assessment to best serve learners and educators. Our research and advocacy with policymakers contribute to fostering an education system that is responsive, equitable and forward-looking.

AQA's proactive engagement in national policy, coupled with its research in AI and digital assessment, demonstrates its unwavering commitment 'To shape the future' of education. By influencing policy, developing ethical AI frameworks, and contributing expertise to the wider sector, AQA helps ensure that assessment practices are robust, fair and relevant for future generations of learners.

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Achievements and Performance (continued)

4. Cultivating a thriving culture and sustainable operations

AQA's commitment extends beyond direct educational services to fostering an inclusive internal culture. We believe that a healthy organisation, dedicated to its people and the planet, is best positioned to deliver its charitable mission effectively and sustainably. This approach underpins our strategic objective 'To be AQA in all we do' , ensuring our internal practices reflect our external mission of public benefit.

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Achievements and Performance (continued)

Robust commitment to our people and our environmental responsibilities is integral to our purpose as a leading charity. By fostering an inclusive and supportive workplace culture, investing in colleague development, and taking decisive action on sustainability, we are not only strengthening our organisation internally but also ensuring that our operations align with our broader mission of public benefit. These collective efforts powerfully embody our strategic objective 'To be AQA in all we do' , demonstrating our commitment to excellence in all aspects of our work and strengthening our position as a global educational leader.

Looking ahead

AQA's priorities are firmly centred on understanding and meeting the needs of our customers. Building on the significant achievements of financial year 2024/25, we will continue to enhance the experience, assessments and services AQA offers, ensuring we remain a trusted partner.

A primary focus will be our commitment to supporting our customers through upcoming educational reforms, ensuring a smooth transition and providing clarity and confidence every step of the way. We will continue to diversify by growing our Vocational and Technical Qualifications (VTQ) portfolio, providing a broader range of valuable pathways and choices that meet the differing needs of learners and the skills requirements of the economy. We will also expand our global assessment services provision, extending our independent expertise to international education ministries and organisations. Our goal is to deliver rigorous and fair assessment solutions that enhance educational standards and outcomes for learners around the world.

Digital advance will remain a key enabler for our customers. We will continue to be at the forefront of digital adoption in assessment, building on successful platforms and tools to make interactions simpler and more efficient for educators and learners. Our research and development will further explore the transformative impact of AI, not just to enhance the quality and assurance of our core processes, but, crucially, to identify and develop new opportunities to support teaching and learning, providing richer insights and saving valuable time for educators. Our commitment to educators remains paramount: we will continue to explore and develop innovative tools and resources designed to enhance the support we provide to educators and learners, enriching their experience and improved outcomes.

Structure, governance and management

Legal Status

AQA’s legal status is as a UK company limited by guarantee (Number: 3644723) and registered as a charity with the Charity Commission for England and Wales (Number 1073334). The role and duties of the Trustees are therefore governed by Charity law and Company law. As a charitable company, AQA is regulated by the Charity Commission for England and Wales and Companies House and therefore must comply with the policies and guidance of both regulators. AQA operates under a set of Articles and a Memorandum of Association. The Articles of Association are the rules which deal with the charity’s status and regulate its internal management.

Group structure

AQA is an education charity and a leading provider of qualifications and support services for educators and learners. We also provide services through four wholly-owned trading subsidiary companies: Doublestruck Limited (Doublestruck), AQA Assessment Services Limited (AASL), AlphaPlus Consultancy Ltd (AlphaPlus), and Training Qualifications UK Limited (TQUK) Also part of the Group are the holding company AQA Commercial Services Limited (ACSL) and the dormant subsidiary company GradeMaker Limited (GradeMaker). Two wholly-owned dormant subsidiary companies, Blutick Limited (Blutick) and AC3 Solutions Limited (AC3), were dissolved after the year end. All eight legal entities are detailed below.

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Structure, governance and management (continued)

The financial statements of these subsidiaries are consolidated into this set of financial statements.

Governance and leadership

AQA is governed by the Board of Trustees who are responsible for our overall strategy, policy, educational initiatives and development, and for steering AQA to fulfil its educational and charitable objectives. The Chief Executive Officer is also a Trustee and member of the Board. Trustees meet at least five times a year. Each meeting agenda includes progress reports on major programmes, critical activities and strategy.

AQA's Executive Team is made up of ten individuals and led by the Chief Executive Officer. They are senior directors responsible for the day-to-day leadership and running of AQA, and the execution of its strategy and policies. Executive Team members may be invited to attend and present at Board meetings but do not have a vote in any decisions.

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Structure, governance and management (continued)

The Board of Trustees is led by a Chair, supported by Vice Chair, and has established governance and advisory committees. These committees include Trustee members that carry out work on behalf of the Board of Trustees and report back on their activities, including any recommendations. All the committees, except the Research Committee and Malpractice and Appeals Committee, are chaired by Trustees. With the exceptions of Committee Chairs Group, Awarding Standards Committee, Nominations Committee, Commercial Oversight Committee and Remuneration Committee, include both Trustees and independent members within their membership.

Governance committees;

Advisory committees:

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Structure, governance and management (continued)

perspectives on key areas of assessment, such as the use of technology and the design of question papers - helping us to make important decisions about the future of exams.

Trustee recruitment and induction

Our Trustees are dedicated volunteers, each bringing extensive experience from distinguished careers spanning education and diverse other sectors. They generously commit their time to champion AQA's mission, supporting educators, learners, and the wider educational community. The Board of Trustees, which includes our Chief Executive Officer, is fully apprised of its legal responsibilities, exercising meticulous oversight in decision-making to ensure the organisation operates with the highest standards of governance.

We conduct a regular assessment of Board effectiveness to pinpoint any evolving skills requirements within the Trusteeship or upon the conclusion of a Trustee's term. When such needs are identified, advertising of roles is overseen by the Nominations Committee. Candidates undergo a rigorous selection process, including shortlisting by our internal recruitment team and interviews conducted by a panel that may comprise Executive Directors and existing Trustees. This panel then forwards its recommendation to the Nominations Committee, which, in turn, endorses candidates for final approval by the full Board of Trustees.

Collectively, our Board members are expected to provide expert guidance on the education sector, as well as on AQA's operational management and the fulfilment of our charitable objectives. To cultivate a truly representative Board, we may strategically collaborate with specialist search firms known for identifying diverse talent for Trustee-level appointments. This approach has yielded success in recent years, resulting in several appointments to both the Board of Trustees and our various committees that help to reflect the diversity of the educators and learners we serve.

To ensure continuous development, Trustees participate in ongoing training and learning. Annual induction sessions are provided for new members, with existing Trustees also encouraged to attend for networking and knowledge refreshment. Open dialogue is fostered between Trustees and Executive Team members, and bespoke information sessions are arranged to deepen understanding in specific areas as required.

Pay and Remuneration

The key management personnel of AQA, responsible for directing, controlling, and operating the organisation, consist of the Board of Trustees and the Executive Team. Comprehensive details regarding Trustees’ expenses, related party transactions, and remuneration paid to the Chair of the Board of Trustees are fully disclosed in Note 10 to the financial statements.

The Remuneration Committee, a standing governance committee of the Board of Trustees, is tasked with advising the Board on appropriate remuneration and terms of service for the Chief Executive Officer and the Executive Team, as well as for Trustees when applicable. Specifically, this Committee annually reviews and determines any proposed increase to the CEO’s remuneration and approves the Executive Team’s compensation, basing its decisions on detailed data and clear criteria.

It is formally affirmed that the Chief Executive Officer’s remuneration is solely for services rendered in their executive capacity, and no additional payment is made or has been paid as a result of their appointment as a Trustee.

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Structure, governance and management (continued)

Other Relationships

Reference and administrative details

The Board of Trustees is, for company law purposes, also the Board of Directors and has ultimate responsibility for the Charity’s activities. It exercises its powers through the Chief Executive Officer (CEO) who is also a Trustee. AQA’s directors during the reporting year and up to the date of this report were:

Mr M Allen Mr J Dahl Dr A Hadawi (tenure concluded 30 June 2024) Mr T Hall Mr C Hughes (CEO) Ms E Kitcatt Professor J Knowles (tenure concluded 21 April 2025) Mr David Laws (Chair) (appointed 10 December 2024) Mr M Nicholson (tenure concluded 31 July 2025) Ms D O’Donoghue Mr M Ojja (tenure concluded 5 December 2024) Mr M Orr Ms V Rhodes Ms P Smith Ms A Spackman (Chair) (tenure concluded 3 December 2024) Ms I Sutcliffe Mr M Turner Mr T Jackson Dr H A Ewing Ms A Frost

A number of the Trustees also served as chairs of governance and advisory committees during the reporting year, as follows:

Governance committees: Committee Chairs Group Ms A Spackman (from 1 April 2024 – 3 December 2024) Mr David Laws (from 10 December 2024) Finance Committee Ms P Smith Audit, Risk and Compliance Committee Mr M Turner

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Reference and administrative details (continued)

Awarding Standards Committee This is an ad hoc committee, with Trustees to be convened by AQA’s Responsible Officer if ever an awarding matter could not otherwise be resolved.

Nominations Committee

Remuneration Committee Commercial Oversight Committee*

Ms A Spackman (from 1 April 2024 – 3 December 2024) Mr David Laws (from 10 December 2024) Mr M Allen Mr M Orr

Advisory committees; Curriculum and Assessment Quality Committee Ms E Kitcatt Research Committee Dr A Ahmed (non-Trustee, Acting Chair) Student Advisory Group Ms E Kitcatt Irregularities and Appeals Committee Dame Joan McVittie (non-Trustee) Higher Education Advisory Group* Mr M Nicholson Disbanded 18 July 2024 ** Disbanded 4 February 2025

All Trustees are required to complete a Register of Interests and to declare any potential conflicts of interest annually and declare conflicts of interest at the start of each meeting. This also applies to governance and advisory committee members who are not Trustees.

AQA’s day-to-day business is carried out by the CEO, Colin Hughes, and the Executive Team: Alex Scharaschkin (Executive Director of Assessment Research & Innovation) Anna Trethewey (Executive Director of Corporate Affairs and Strategy) Claire Thomson (Responsible Officer and Executive Director of Regulation and Compliance) Derek Richardson (Managing Director, AQA Assessment Services Ltd) Isabelle Perrett (Executive Director of People) Justin Coombs (Executive Director of Assessment Technology) Mark Bedlow (Chief Operating Officer) Michael Turner (Executive Director of Customer and Product) Nick Stevens (Chief Finance and Corporate Services Officer)

Information on our external advisors can be found at the end of this report.

The Charity Code of Governance – what it means to us

AQA takes its governance responsibilities seriously and, as a large charity, aims to have a governance framework that is fit for purpose, compliant and efficient. In 2017, the Charity Code of Governance (the Code) was launched, with a recommendation that charities review the extent to which they apply the Code and explain any aspects of the Code they are not applying. In our review we carried out a detailed examination of each element of the Code:

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The Charity Code of Governance – what it means to us (continued)

AQA operates a conflict-of-interest policy for all employees, Trustees and independent members, subcontractors and all third parties who work with us and act on our behalf. Conflicts of interest are collated at the start of each exam series. Declarations of interest are made and recorded at the start of every formal meeting.

We ensure that we report any issues or problems in a timely and transparent way as needed (whether to Ofqual or the Charity Commission) and work hard to put things right for our stakeholders.

We have a Modern Slavery Statement which is available on our website. We are committed to making ethical choices in our supply chain and we conduct full due diligence checks when onboarding new suppliers. Key strategic and critical suppliers are monitored on a continual basis for commercial, financial and supply chain risk, including compliance with regulatory, policy and legal requirements.

Our strategic approach to D&I is deeply embedded across our operations, influencing both how we work internally and the impact we deliver externally:

We are transparent about our progress and the challenges that remain. As part of this commitment, we voluntarily publish our Gender and Ethnicity Pay Gap Report annually. This report provides detailed figures and outlines the comprehensive strategy and action plan we are implementing to address pay disparities and increase representation across all levels of our organisation. Further information on our pay gaps and the steps we are taking can be found in AQA's annual Pay Gap Report 2024.

Our dedication to D&I is unwavering, as we strive to create an organisation that not only reflects the diversity of the working population but also champions fairness and equity in every aspect of our work, ultimately benefiting the learners we serve.

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The Charity Code of Governance – what it means to us (continued)

We recognise the value and importance of having engaged and enquiring employees. We know high levels of engagement have a positive influence on the performance of our teams as they engage with the educators, learners and others in the field of education.

During the year we have held a wide range of staff engagement sessions for colleagues to hear updates from the Executive Team and others on how organisational and strategic programmes are progressing.

We also encourage openness with all our colleagues, and AQA associates and examiners, through our ‘Speak Out’ facility. This is designed to encourage people (anonymously if they prefer) to give feedback or raise an issue, including anything that does not ‘feel right’. We have ‘Speak Out’ representatives that can be approached directly, a webpage for submitting anonymous comments, and a designated email mailbox. This scheme is operated alongside a formal Whistleblowing process.

Corporately, we engage fully with our regulators to report incidents when they occur, and to update the regulators on the progress of putting these right. We have a dedicated Incident Management process to examine any incidents that occur in day-to-day business, with decision making functions sitting independently from operational areas. All colleagues involved work together to ensure that our focus remains on our stakeholders and getting the best results for them.

AQA has a designated Safeguarding Lead who sits within our Exams Integrity Team and holds responsibility for all safeguarding activity across the organisation. A Safeguarding Strategy is regularly updated and presented to our Trustees for approval; this strategy shapes the organisation’s response to safeguarding issues, including training for Trustees, staff, associates and examiners who may undertake visits to schools, training on dealing with safeguarding issues presented in students’ exam responses, and being responsible for the organisation’s safeguarding policy and procedures.

Section 172(1) statement

Section 172 of the Companies Act 2006 requires a director of a charitable company limited by guarantee to act in the way they consider, in good faith, would be most likely to promote the success of the Charity. In doing this, section 172 requires a director to think ahead to numerous factors including:

Below we outline how the Board of Trustees has considered these factors in its strategic decision-making and oversight throughout the year.

Stakeholder Engagement

Our stakeholders are our customers, the students we support, the people who work with us (employees, Associates), organisations that help us deliver our key services (suppliers), and our regulators and governmental bodies.

The Board of Trustees is deeply committed to effective engagement with all stakeholders, recognising that strong relationships are integral to delivering our strategy in line with our purpose and values. While the Board retains ultimate oversight, it delegates responsibility for day-to-day engagement to the CEO and the Executive Team.

The Board of Trustees receives regular updates from the Executive Team on issues concerning all stakeholder groups. Some of the key ways in which the Executive Team has engaged with stakeholders over the year include:

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Section 172(1) statement (continued)

Decision making

AQA recognises the importance of engaging with stakeholders to help inform our strategy and Board of Trustees decision making. Relevant stakeholder interests, including those of employees, suppliers, customers, regulators and others are considered when it makes decisions.

We define principal decisions as those that are material or of strategic importance to AQA, and also those that are significant to any of its key stakeholder groups. In making its decisions, the Board of Trustees considers the outcomes of relevant stakeholder engagement as well as the need to maintain a reputation for high standards of business conduct, and to consider the long-term consequences of its decisions. The following provide examples of how stakeholder interests were considered in a principal decision made by the Board of Trustees.

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Section 172(1) statement (continued)

These decisions reflect the Board’s commitment to long-term success, stakeholder engagement, and responsible governance.

Environmental policy

Sustainability is important to us and will remain a priority in the future, having committed to the ambitious target of reaching net zero before 2050.

We take our environmental responsibilities very seriously. We recognise our part to play in contributing to the resolution of global and local environmental issues by reducing our impact on the environment and by taking a leading role in promoting environmental best practice. During the year, we have achieved an 83% reduction in our emissions per £m of non-investment income compared to our baseline year 2018/19.

We have continued to initiate improvements and to promote our environmental message throughout the organisation. Achievements have been accelerated due to embedding of Smart Working, continuation of improved travel habits and energy efficiency activities across the offices. We remain committed to significant changes to our operating model to enhance future GHG reductions and further detail will be provided later in 2025 in our carbon reduction plan.

The Companies Act 2006 requires large charities to include Greenhouse Gas (GHG) emissions and energy consumption disclosures in their Directors’ Report. Charities that consume more than 40,000kWh of energy annually must:

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Environmental policy (continued)

In the past 12 months our main achievements are:

*Reductions compared to GHG reporting baseline year 2018/19 but now includes AQA Group subsidiaries

As part of our sustainability strategy, we commenced a project to record and analyse scope 3 GHG emissions which was completed in 2024. We are further adding a detailed review of our procured goods and services associated emissions which will help form AQA’s carbon reduction plan which is due for publication later in 2025.

Whilst our detailed plans are not yet available, we will continue with the work described below over the coming financial year to further reduce our impacts and associated CO2e emissions:

Emissions for Scope 1 (direct) and scope 2-3 (indirect) sources are continually monitored at source (i.e. energy consumption and waste production) as well estimated (i.e. fuel consumption through transport) by applying the relevant conversion factors.

The annual quantity of emissions in tonnes of carbon dioxide for the Group for the year was 507.27 tonne CO2e, which is an increase of 42.23 tonnes CO2e from the prior year. This equates to 1.86 tonnes per £m non-investment income, which has remained level compared to the prior year and 82% reduction compared to the 2018/19 baseline year. The emissions in 2018/19 baseline year were 1893.67 tonnes CO2e which equates to 10.51 tonnes per £m sales.

Full year on year breakdowns of direct and indirect emission are summarised below:

Year Sales
Revenue
(trading
revenue)£m		 GHG Emissions
(T CO2e)		 Intensity
Measurement
Ratio (IMR)*		 Difference (IMR)
2018/19 180.3 1893.67 10.51 n/a
2019/20 183.8 1766.95 9.61 -8%
2020/21 133.9 905.05 6.76 -36%
2021/22 146.8 444.06 3.02 -71%
2022/23 215.9 286.02 1.32 -87%
2023/24 249.0 465.04 1.86 -82%
2024/25 272.4 507.27 1.86 -82%

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Environmental policy (continued)

Where actual energy consumption data was unavailable, historical monthly billing information was used to estimate likely usage. This estimate was later revised to reflect the actual consumption once the data became available. .

The total Group energy consumption for the year was:

The total Group transport fuel use for the year was:

Our overall target to reduce our greenhouse gas emissions by 60% or 4 tonnes CO2e per £m of revenue between 2018/19 to 2025/26 has been exceeded. Whilst this target has been successfully exceeded with an 86% GHG emission reduction from baseline year, the rate of future emissions targets will reduce significantly upon resetting the baseline year with the inclusion of the completed fuller GHG inventory including broader scope 3 emissions. New reduction targets will be agreed and published later in 2025.

The methodologies used to collect and assess emissions data varied throughout the inventory. The primary methodology used was multiplying GHG activity data by appropriate GHG emission factors. All methodologies used were selected based on their ability to provide accurate and consistent results. The use of activity data and emission factors was feasible due to the availability of both accurate activity data for the majority of sources and standard emission factors from Department for Environment 2024 (DEFRA) and the Greenhouse Gas Protocol Initiative (where DEFRA factors are not supplied).

Risk management

Risk management at AQA is underpinned by an established risk policy and process including the setting of risk appetite which is reviewed annually by the Executive Team, the Audit, Risk and Compliance Committee (ARCC) and ultimately approved by the Board of Trustees.

Strategic and operational risks are identified in the context of our overall objectives and defined risk appetite. Our overall risk appetite is generally low, reflecting the nature of what we are delivering for students, and the highly regulated environment in which exam boards operate.

Operational risks are regularly reviewed by department managers, with any significant operational risks escalated to the Executive Team. On a monthly basis, the Executive Team reviews the strategic risk dashboard and top operational risks. A risk report is presented to each meeting of the ARCC to ensure effective oversight of risk management activities and the overall AQA risk profile. The ARCC Chair provides both an annual report on the committee’s activity to the Board of Trustees and an interim summary of activity presented at each Board of Trustees meeting (accompanied by the most recent ARCC meeting minutes). The strategic dashboard is also presented, by management, at each meeting of the Board of Trustees.

Our Risk Team facilitates risk management activities across the business, ensuring that the process is communicated and managed effectively. Appropriate training mechanisms are in place, with risk awareness and guidance provided to managers and their teams to promote the effectiveness of our risk management framework.

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Risk management (continued)

Further, the ARCC reviews our internal controls and procedures (financial and non-financial) and considers the results of our audit reviews. It also approves our internal Regulatory Compliance team’s annual plan of review activity, receives and

challenges reports on compliance, and oversees the process for producing the annual Statement of Compliance to the independent exam regulators. The Committee reports directly to the Board of Trustees.

The following is a summary of the main risks facing AQA, which are represented in our strategic risk dashboard and are kept under review as part of the established process of risk management.

Financial review

AQA is in a strong and stable financial position. We continue to focus on our long-term financial strategy and have an appropriate level of reserves.

These financial statements cover the year to 31 March 2025. The key highlights from the year are as follows;

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Financial review (continued)

Underlying Performance
Non-operational (expenditure) / income:
(Loss) / Profit on disposal of tangible fixed assets
Software impairment
Goodwill impairment
Net non-operational (expenditure) / income
Net Income before tax		 31 March 2025
31 March 2024
£000
£000
13,715
5,922
(9)
14,605
-
(396)
-
(4,715)
(9)
9,494
13,706
15,416

The performance of our investments was impacted by less favourable global market conditions towards the end of the financial year, compared to the previous year. Despite this, we recorded a net gain on investments of £563,000 (2024: £4,411,000) as shown in note 14. Encouragingly, our income from short-term investments, cash at bank, and other fixed asset investments rose to £7,714,000 (2024: £5,222,000) , reflecting stronger performance during the year.

AQA participated in one principal defined benefit pension scheme, the AQA Pension Scheme, as well as having smaller participation in two national defined benefit schemes, Teacher Pension Scheme (TPS) and University Superannuation Scheme (USS). In accordance with section 28 of FRS 102, unfunded pension liabilities are included in the defined benefit pension schemes liability for the two principle schemes.

USS and TPS are multi-employer defined benefit schemes where it is not possible to separately identify the assets and liabilities for each participating employer. Accordingly, contributions are treated as defined contribution schemes for accounting purposes.

The net balance sheet (liability) /asset for the aggregation of the schemes is detailed as follows:

Fair value of scheme assets
Present value of defined benefit obligation
Net pension (liability) / asset		 31 March 2025
31 March 2024
£000
£000
99,136
129,682
(100,216)
(113,302)
(1,080)
16,380

The net pension (liability) / asset is made up as follows:

Unfunded pension liability
University Superannuation Scheme pension liability
AQA Pension Scheme asset
Net pension (liability)/ asset		 31 March 2025
31 March 2024
£000
£000
(2,019)
(2,360)
(259)
(237)
1,198
18,977
(1,080)
16,380

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Financial review (continued)

Financial risk management

Financial risks are identified by the Executive Team and all managers as part of the business planning process which is continually updated and monitored throughout the year. Financial performance is reported to the Finance Committee for further scrutiny as delegated by the Board of Trustees. Key areas of risk that impact the Group’s operations include managing working capital and long-term funding required to support its investment plans and pension commitments and liabilities.

The Group’s risk and financial management framework has the primary aim of protecting it from events that hinder achieving performance objectives and protects against reputational impact and regulatory scrutiny and potential fines. The objectives are to ensure sufficient working capital exists and risk is managed at a Group level and a business unit level.

Exposure to price, credit, liquidity and cash flow risk

Price risk – In normal circumstances, the risk is considered to be low based on the business model for the delivery of regulated assessments in the UK market. As well as the business price risk, price risk also arises on financial instruments because of changes in listed investment prices. Listed investments with a fair value of £53,983,000 are exposed to price risk but this exposure is within the Group’s risk appetite embedded in the mandate provided to our investment advisors.

Credit risk – Group policies are aimed at minimising such losses and that credit terms are only granted to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Details of the Group’s debtors are shown in note 16 to the financial statements. On investments, the Group mitigates credit risk by spreading our risk across different asset classes. Please refer to the Group’s investment powers and policy details on page 24.

Liquidity risk – The Group mitigates liquidity risk by managing cash generated by its operations and applying cash collection targets throughout the Group.

Cash flow risk – The Group mitigates this risk by preparing and monitoring cash flow forecasts monthly to ensure that funds are available to meet our liabilities as they fall due.

Reserves policy

The target level of reserves enables us to achieve our primary charitable purpose of advancing education for the benefit of the public. To continue to provide high quality qualifications, assessment, and support to schools and colleges, we must invest in strategic areas including new products and systems. Some of these incur upfront expenditure that is not recovered for several years.

23

AQA Education Directors’ and Trustees’ Report including Strategic Report

Financial review (continued)

At the end of the year, we had funds of £161,622,000. They are held for a variety of purposes, to ensure that the Charity can operate as a going concern in the future and also fulfil its legal obligations. The funds are summarised below:

The remainder of our funds are our general funds:

When setting our free reserves target range we follow Charity Commission’s guidance and consider our cash flow requirements and perform an assessment of the risks and obligations facing the organisation. Based on our updated assessment, our policy is to maintain free reserves in the range of £70 million to £80 million ( 2024: £60 million to £70 million ) and as at year end, we are slightly over target range. We continue to review the free reserves target, to ensure that the policy continues to reflect changes in the organisation.

Going concern

The Board of Trustees has reviewed the financial position, considering the level of reserves and cash, and the system of financial control and risk management. They have undertaken sensitivity analysis and considered the potential impact of the cost of living crisis and changing political climate. Accordingly, we have a reasonable expectation that the Charity and the Group have adequate resources to continue in operational existence for the foreseeable future.

As a consequence, these financial statements are prepared on the going concern basis. The Trustees consider that there are no material uncertainties about the Charity’s and the Group’s ability to continue as a going concern.

Investment powers and policy

AQA’s investments are predominately held in UK and overseas equities, bonds and multi asset funds. The Investment Policy was reviewed during the year and is reviewed at least on a triennial basis.

We seek to adopt a well-diversified investment approach that balances potential return with appropriate risk. At the same time the Trustees are aware that some level of volatility is inevitable with a good investment strategy and endeavour to spread the risk across different asset classes. The assets of the Charity are invested with a mandate to target an overall rate of return of 3% per annum above CPI but recognise the likely volatility and challenge in Global Markets for the foreseeable future. The results for the year show an overall net gain on investments of £563,000 (2024: gain £4,411,000), which equates to a return of 0.3%. The results for the year are due to less favourable global market conditions compared to prior year. AQA’s Investment Advisor is Cazenove Capital Management. Our long-term reserves are held in Cazenove’s Responsible Multi-Asset Fund. This is a fund designed to enhance our ESG (Environmental, Social and Governance) standards.

The Trustees encourage their Investment Advisor to exercise, where feasible, the voting rights attached to the Charity’s investments.

24

AQA Education Directors’ and Trustees’ Report including Strategic Report

Financial review (continued)

The Investment Advisor has regard to each investee company’s approach to corporate governance and ethical and environmental issues when assessing the long-term financial merits of investing in each company's shares and encourages companies to adhere to the UK Corporate Governance Code or equivalent other governance code. The Trustees believe that this approach to socially responsible investment is in the best financial interests of the Charity and does not place additional constraints on the Investment Advisor’s freedom to choose investments. Some of the investments are held in pooled funds, some of which are index tracking funds and not actively managed and therefore the Investment Advisors have little scope to influence the investment direction of such funds. The Finance Committee may occasionally advise the Investment Advisor of entities or industries which they consider are not aligned with the objects of the Charity and therefore do not consider appropriate to invest in.

Our cash flow is highly seasonal, allowing us to strategically place excess working capital into high-interest savings accounts and liquidity funds. To diversify risk, we limit holdings to a maximum of £40 million per institution.

Fundraising

Given the nature of the Charity, there is no external fundraising, and no use of professional fundraisers, commercial participators or volunteers. As such, the requirements of the Charities Act 2011 in relation to statements on fundraising are not deemed to be applicable. The Charity does not hold any social investments and does not make grants. The expenditure heading “Expenditure on raising funds” in the Consolidated Statement of Financial Activities relates solely to investment management costs.

Events after the reporting date

The directors have not identified any adjusting events. FRS 102 requires, for non-adjusting events, disclosure of the nature of the event, and either an estimate of its financial effect or a statement that such an estimate cannot be made. (See note 27).

Additional information

Our website, aqa.org.uk, contains up-to-date information on qualification specifications, exam timetables, events, educator support, examiner recruitment, publications and other areas of the organisation’s activities.

25

AQA Education Directors’ and Trustees’ Report including Strategic Report

Statement of Trustees’ responsibilities

The Trustees, who are also directors of AQA Education (Charitable Company) for the purposes of company law, are responsible for preparing the Directors’ and Trustees’ Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulation.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees 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 Group and Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Group and Charitable Company for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company

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

Financial statements are published on the Charitable Company’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Charitable Company’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Statement of disclosure of information to auditors

In so far as the Trustees are aware:

26

AQA Education Directors’ and Trustees’ Report including Strategic Report

___________

Statement of Trustees’ responsibilities (continued)

APPOINTMENT OF AUDITORS

In accordance with best practice and to ensure continued auditor independence and objectivity, the company has decided to initiate a competitive tender process for the external audit engagement for the financial year ending 31 March 2026. The current auditor, BDO LLP, has been invited to participate in the tender process. A recommendation on the appointment of the external auditor will be made to the Trustees at the next Annual General Meeting.

This report, including the Strategic Report, was approved by the Board of Trustees on 30 September 2025 and signed on its behalf by

Mr D Laws Director and Chair of the Board of Trustees

Ms P Smith Director and Trustee

Mr C Hughes Director and Trustee

27

AQA Education Independent auditors’ report to the members of AQA Education

___________

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of AQA Education (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2025 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charitable Parent Statement of Financial Position, the Consolidated Statement of Cash Flows 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, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and the Parent 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.

Conclusions related to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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 auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements

28

AQA Education Independent auditors’ report to the members of AQA Education (continued)

___________

themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, 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 and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

29

AQA Education Independent auditors’ report to the members of AQA Education (continued)

___________

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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Non-compliance with laws and regulations

Based on our understanding of the Group and the sector in which it operates; discussion with management, the Audit & Risk Compliance Committee, and those charged with governance; and obtaining an understanding of the Group’s policies and procedures regarding compliance with laws and regulations; we considered the significant laws and regulations to be the applicable accounting framework, being the Charities Act, Companies Act, Financial Reporting Standard 102, Charity Commission for England and Wales (Charity Commission) regulations and UK tax legislation.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and the recognition of income.

Our procedures in respect of the above included:

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.

30

AQA Education

Independent auditors’ report to the members of AQA Education (continued)

___________

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sareh Anderson 02 October 2025

Sarah Anderson (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor Manchester, UK

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

31

AQA Education Consolidated Statement of Financial Activities for the year ended 31 March 2025

Note
Income:
Income from charitable activities:
Educational services
4
Income from other trading activities:
Digital and consultancy services
4
Investment income
5
Profit on disposal of fixed assets
Total income
Expenditure:
Expenditure on charitable activities:
Educational services
6
Expenditure on other trading activities:
Digital and consultancy services
6
Expenditure on raising funds:
Investment management costs
5
Share of loss in joint venture
13
Total expenditure
Net Income before tax
Deferred tax charge
8
Net income before actuarial and investment gains
Actuarial and investment gains / (losses)
Net realised gains on investments
14
Net unrealised (losses) / gains on investments
14
Actuarial losses on defined benefit pension schemes
26
Total actuarial and investment (losses)
Net (expenditure) / income and net movement in funds for the
year
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted funds
2025
2024
£000
£000
264,657
241,701
7,754
7,273
7,714
5,223
-
14,605
280,125
268,802
257,965
245,148
7,548
7,028
40
73
866
1,137
266,419
253,386
13,706
15,416
-
(1,600)
13,706
13,816
1,873
2,173
(1,310)
2,238
(17,248)
(9,822)
(16,685)
(5,411)
(2,979)
8,405
164,601
156,196
161,622
164,601

The notes on pages 36 to 80 form part of these financial statements.

32

AQA Education Consolidated and Charitable Parent Statement of Financial Position as at 31 March 2025

Fixed Assets
Note
Intangible assets
11
Tangible assets
12
Investment in subsidiary undertakings
13
Other fixed asset investments
14
Total Fixed Assets
Current Assets
Stocks and work in progress
15
Debtors
16
Investments
17
Cash at bank and in hand
Total Current Assets
Liabilities
Creditors: Amounts falling due within one year
18
Net Current Assets
Total Assets less Current Liabilities
Provisions for Liabilities and Charges
20
Net Assets Excluding Pension
Asset and Liability
Defined benefit pension scheme asset
26
Defined benefit pension scheme liability
26
Total Net Assets
The Funds for the Group and Charity:
Unrestricted Funds
Designated funds
General funds
Pension fund
Total Funds
21		 Group
Charity
Group
Charity
2025
2025
2024
2024
Restated
Restated
£000
£000
£000
£000
40,919
9,783
48,184
13,271
25,443
18,996
26,518
19,264
-
26,234
-
22,421
53,983
53,983
53,359
53,359
120,345
108,996
128,061
108,315
873
851
1,420
891
99,063
143,178
114,288
142,576
91,559
86,675
63,048
63,048
100,770
86,526
89,170
82,140
292,265
317,230
267,926
288,655
(243,884)
(238,162)
(240,641)
(234,581)
48,381
79,068
27,285
54,074
168,726
188,064
155,346
162,389
(6,024)
(1,980)
(7,125)
(2,398)
162,702
186,084
148,221
159,991
1,198
1,198
18,977
18,977
(2,278)
(2,278)
(2,597)
(2,597)
161,622
185,004
164,601
176,371
6,581
6,581
6,386
6,386
156,121
179,503
141,835
153,605
(1,080)
(1,080)
16,380
16,380
161,622
185,004
164,601
176,371

33

AQA Education Consolidated and Charitable Parent Statement of Financial Position (continued) as at 31 March 2025

___________

The Consolidated Statement of Financial Activities incorporates the Summary Income and Expenditure Account. Income is derived from continuing operations. Net income and net movement in funds represents the surplus for the year for Companies Act 2006 purposes and includes a surplus of £8,633,000 relating to the parent (2024: surplus £1,793,000).

The notes on pages 36 to 80 form part of these financial statements. The company registration number is 3644723. The financial statements on pages 32 to 80 were approved and authorised for issue by the Board of Trustees on 30 September 2025 and signed on its behalf by:

Mr D Laws Director and Chair of the Board of Trustees

Ms P Smith Director and Trustee

Mr C Hughes Director and Trustee

34

AQA Education Consolidated Statement of Cash Flows for the year ended 31 March 2025

___________

Note
Cash flows from operating activities:
Net cash generated from operating activities
22
Cash flows from investing activities:
Investment income
5
Purchase of tangible fixed assets
12
Proceeds from sale of fixed assets
Purchase of intangible fixed assets
11
Purchase of subsidiaries, net of cash acquired
Purchase of fixed assets investments
14
Proceeds from sale of fixed asset investments
14
Proceeds from redemption of current asset investments
17
Purchase of current asset investments
17
Investment in joint venture
13
Net cash used in investing activities
Increase in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents movements during the year
Increase / (Decrease) in cash held with fund managers
14
Increase in cash at bank and in hand
Total cash and cash equivalents movements during the year
Cash in fixed asset investments at the beginning of the year
Increase / (decrease) in cash held with fund managers
14
Cash in fixed asset investments at the end of the year
14
Cash at bank and in hand at the beginning of the year
Increase in cash at bank and in hand
Cash at bank and in hand at the end of the year
Analysis of cash and cash equivalents
Cash in fixed asset investments at the end of the year
14
Cash at bank and in hand at the end of the year
Total cash and cash equivalents		 Group
Group
2025
2024
£000
£000
Restated
25,050
53,492
6,526
3,600
(1,753)
(10,703)
15,355
4,277
(4,756)
(4,778)
-
(6,042)
(1,348)
(20,470)
1,299
19,783
97,206
75,310
(125,717)
(73,343)
(250)
(1,350)
(13,438)
(13,716)
11,612
39,776
89,468
49,692
101,080
89,468
12
(426)
11,600
40,202
11,612
39,776
298
724
12
(426)
310
298
89,170
48,968
11,600
40,202
100,770
89,170
310
298
100,770
89,170
101,080
89,468

Cash is higher in the current year due to increased income from investments as well as higher receipt of cash for summer series.

The notes on pages 36 to 80 form part of these financial statements.

35

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

1 General information

AQA Education (AQA) is a company limited by guarantee (registered company number 3644723 in England and Wales) and a registered charity (registered charity number 1073334 in England and Wales). It is incorporated under the Memorandum and Articles of Association and is incorporated and domiciled in England. The address of its registered office is Devas Street, Manchester, M15 6EX.

In the event of the Company being wound up, every Trustee undertakes to contribute to the assets of the company while such a person is a Trustee, or within one year afterwards, for payment of debts and liabilities of the company contracted before that Trustee ceases to be a Trustee, and the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required, not exceeding one pound.

2 Statement of compliance

These financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” (Charities SORP (FRS 102)) applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective January 2019), Companies Act 2006 and the Charities Act 2011.

AQA meets the definition of a public benefit entity under FRS 102.

3 Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.

The Charity has adapted the Companies Act 2006 formats to reflect the Charities SORP (FRS 102) and the special nature of the Charity’s activities.

The Charity has taken advantage of the exemption in section 408 of the Companies Act 2006 from presenting its individual Statement of Financial Activities. They have also taken advantage of the exemption in paragraph 1.12b of FRS 102 from preparing an individual Statement of Cash Flows, on the basis that it is a qualifying entity and the Consolidated Statement of Cash Flows, included in these financial statements, includes the Charity’s cash flows.

(b) Going concern

The Charity’s and the Group’s business activities, its current financial position and factors likely to affect its future development are set out in the Strategic Report. The Charity and the Group have in place healthy liquidity which provides adequate resources to finance committed reinvestment and educational programmes, along with the Group’s and the Charity’s day to day operations.

The Board of Trustees have assessed the future funding requirements of the Charity and the Group and compared it to the level of cash resources. The assessment included a review of the financial forecasts and the preparation of sensitivity analysis on the key factors which could affect future cash flow.

36

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

Having undertaken the review, the Board of Trustees has a reasonable expectation that the Charity and the Group have adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. For this reason, it continues to adopt the going concern basis in the financial statements.

The Trustees consider that there are no material uncertainties about the Charity’s and the Group’s ability to continue as a going concern.

(c) Basis of consolidation

The Group consolidated financial statements include the financial statements of AQA and its subsidiary undertakings: AQA Assessment Services Limited, Doublestruck Limited, AlphaPlus Consultancy Limited, AQA Commercial Services Limited, GradeMaker Limited, Blutick Limited, AC3 Solutions Limited and Training Qualifications UK Limited. For entities acquired during the prior year figures in the consolidated accounts only include the period from acquisition to 31 March.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of financial activities from the date on which control is obtained. They are deconsolidated from the date control ceases.

The net income and net movement in funds for the year for the Charity were £8,633,000 surplus (2024: £1,793,000 surplus) and total funds at the year-end were £185,004,000 (2024: £176,371,000).

(i) Subsidiaries

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Investments in subsidiary undertakings are stated at cost, including those costs associated with the acquisitions, less provision for any impairment in value. Where events or changes in circumstances indicate that the carrying amount of an investment may not be recoverable, an impairment review is performed. An impairment write down is recognised to the extent that the carrying amount of the asset exceeds the higher of the fair value less costs to sell or value in use.

Where a subsidiary has different accounting policies to the Group, adjustments are made to those subsidiary financial statements to apply the Group’s accounting policies when preparing the consolidated financial statements.

Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control. Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated statement of financial activities.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation. All of the subsidiaries have a year end of 31 March. AlphaPlus Consultancy Limited previously had a year end of 30 September however during the year there was a 6 month accounting period ending 31 March 2025, thus bringing it in line with the rest of the group. However, for the purpose of the Group accounts the figures cover the period from 1 April 2024 (or date of acquisition) to 31 March 2025.

37

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(c) Basis of consolidation (continued)

(ii) Joint ventures

Investments in joint arrangements can take the form of jointly controlled operations, jointly controlled assets, or jointly controlled entities. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. AQA has a joint venture classified as a jointly controlled entity.

AQA has invested in a jointly controlled entity (Oxford International AQA Examinations Limited). AQA owns 50% of the issued share capital. A joint venture agreement has been signed by both parties.

Interests in jointly controlled entities are accounted for using the equity method (mentioned below) after initially being recognised at cost in the consolidated statement of financial position.

Under the equity method of accounting, the investments are initially recognised at cost (including transaction costs) and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or losses of the investee in the consolidated statement of financial activities. Dividends received or receivable from joint ventures are recognised as a reduction in the carrying amount of the investment.

When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy “Impairment of non-financial assets” mentioned later in this note.

AQA’s share of the loss of the joint venture is recognised in the consolidated statement of financial activities.

(d) Income recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount for goods supplied or services rendered, net of value added tax.

The Group recognises revenue when (a) it obtains entitlement to the income; (b) the Group retains no continuing involvement or control over the goods or services; c) the amount of revenue can be measured reliably; d) it is probable that future economic benefits will flow to the entity and; e) when the specific criteria relating to each of the sales channels have been met, as described below.

Income for the provision of examination services is recognised when all services associated with the qualification are substantially completed. Income received in advance of the examination series is deferred and recognised when the examination series takes place.

For post results services income is recognised when the amount of the revenue and the stage of completion can be measured reliably.

38

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(d) Income recognition (continued)

(ii) Events

Income for the provision of events is recognised when the event takes place.

(iii) Centre inspection services

Income is recognised for centre inspection services on a straight-line basis over the period of the contract. Invoices are raised quarterly in arrears.

(iv) Provision of teacher support materials

Revenue from the sale of digital courseware products is recognised on straight line basis over the period of the subscription. For individual sales, the revenue is recognised when control is passed to the customer when the digital product is made available.

(v) Digital services

Revenue from services such as scanning are recognised in the accounting period in which the work on the services is performed and the obligations have been satisfied in accordance with the customers’ agreed requirements.

Sales of scanning machines and associated equipment are recognised when the products have been delivered to the customer and it is probable that economic benefits associated with the transaction will flow to the Company. Maintenance service contracts are recognised on a straight-line basis over the period of the contract.

(vi) Educational consultancy services

Revenue for educational consultancy services is recognised when the services are complete, with revenue for services ongoing over the year end shown as work in progress on the balance sheet. Profit on work in progress contracts is recognised when the outcome of the contracts can be assessed with reasonable certainty, the stage of completion can be measured reliably and the costs incurred and costs to complete can be measured reliably. The amount recognised is that which is estimated to reflect fairly the profit arising up to the reporting date. Profit on work in progress contracts is recognised as the difference between the reported revenue and related costs. When a contract is expected to be loss making the expected loss is recognised as an expense immediately.

(vii) Subscription services

Subscription income is received in advance of the period to which it relates and is deferred on a straight-line basis over the subscription period.

(viii) Awarding and assessment services

Revenue from contracts for the provision of educational services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised and it is probable they will be recovered. Depending on commercial billing terms agreed with each customer, income will need to be accrued or deferred, such amounts are recorded within accrued income within trade and other receivables or deferred income within trade and other payables.

39

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(e) Fund accounting

General funds are available to spend on activities that further any of the purposes of the Charity. Designated funds are unrestricted funds of the Charity which the Trustees have decided at their discretion to set aside to use for a specific purpose.

(f) Expenditure recognition and irrecoverable value added tax

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

The majority of AQA’s supplies are exempt for value added tax purposes. As a result, AQA is only able to recover a small percentage of its input tax. The amount not recoverable is charged in the consolidated statement of financial activities under the appropriate cost category or added to the cost of fixed assets.

Expenditure is classified under the following activity headings:

These costs relate to services provided centrally and identified as wholly or mainly in delivery of direct charitable activities, together with an appropriate proportion of management and office overheads undertaken to further the purposes of the Charity and their associated support costs.

(ii) Governance and support costs

Allocation of support and governance costs

Support costs have been allocated between governance costs and other 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, IT, personnel and payroll. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. These costs all relate to expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 9.

Governance costs relate to the corporate management of the organisation itself. They include expenses of Trustees’ meetings, audit fees, office relocation costs and other corporate management costs.

(iii) Other trading activities

These costs relate to non-charitable services provided by subsidiary undertakings, AQA Assessment Services Limited and AlphaPlus Consultancy Limited. It includes direct costs as well as overhead costs.

(iv) Raising funds

Costs for raising funds relate to the management of other fixed asset investments by the investment advisors and fund managers.

40

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(g) Income and expenditure on examinations

Examination fees and training course fees received in advance are deferred and recognised in the year the examinations and meetings take place. Expenditure on question papers and on fees and expenses of examiners are expensed when they are incurred.

(h) Employee benefits

The Group provides a range of benefits to employees, including holiday pay, defined benefit and defined contribution pension plans.

(i) Short-term benefits

Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the year in which the service is received.

(ii) Defined contribution pension plans

A defined contribution plan is a pension plan under which the employee and Group pays fixed contributions into a separate entity. Once the contributions have been paid, the Group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts due but not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

(iii) Defined benefit pension plans

The Charity operates defined benefit plans for employees. During the year, the principal defined benefit scheme for AQA’s staff was the AQA Pension Scheme. AQA also has unfunded pension liabilities which represent augmented pensions for members of staff who are no longer employees of AQA. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The defined benefit section of the AQA Pension Scheme and the unfunded augmented pension liabilities are accounted for as defined benefit schemes under section 28 of FRS 102. The defined benefit section of the AQA Pension Scheme was closed to new entrants from July 2006 and to future accruals from January 2011.

The USS is a multi-employer scheme for which it is not possible to identify the assets and liabilities of individual members due to the mutual nature of the scheme and therefore this scheme is accounted for as a defined contribution retirement benefit scheme. A liability is recorded within provisions for any contractual commitment to fund past deficits within the USS scheme. AQA has also contributed to the Teacher’s Pension Scheme which is a multi-employer defined benefit scheme where it is not possible to separately identify the assets and liabilities for each participating employer. Accordingly, contributions are treated as defined contribution schemes for accounting purposes.

41

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

A liability recognised in the statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date. A defined benefit asset is recognised where there is a plan surplus which can be recovered in future through a refund to AQA.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Group engages independent actuaries to calculate the obligation. The present value is determined by applying an appropriate discount rate to the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments.

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are credited or charged respectively to the consolidated statement of financial activities. Full actuarial valuations of pension schemes are performed every three years. The last completed full actuarial valuation of the AQA Pension Scheme was at 30 September 2021. The next valuation to 30 September 2024, will be completed by 31 December 2025.

The net interest cost or credit is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. A cost is recognised within expenditure on charitable activities while a credit is recognised within ‘Net investment income’.

(i) Business combinations and goodwill

Business combinations are accounted for by applying the purchase method. The cost of a business combination is aggregate of the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

Contingent consideration is recognised where the payment of consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

42

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(i) Business combinations and goodwill (continued)

Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values of the Group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is amortised over its expected useful life which is estimated to be between 3 to 10 years. At the time of acquisition management perform an assessment of expected useful life in order to determine the most appropriate expected useful life. As part of this assessment management consider probability of the entity achieving its KPI’s, forecasts and any fair value adjustments identified. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the consolidated statement of financial activities.

In accordance with Section 35.10(a) of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations affected prior to the date of transition.

(j) Intangible assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation commences when the software or development project is ready for use. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

Software – 3 years Development costs – up to 5 years Assets under construction – Not depreciated

Amortisation is charged to expenditure on charitable activities in the consolidated statement of financial activities.

The assets are reviewed for indicators of impairment and if these are present, the asset will be impaired to the recoverable amount.

Intangible assets acquired as part of a business combination are measured at fair value at the acquisition date.

Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met:

43

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(j) Intangible assets (continued)

(i) Specification development

Expenditure on the development of specifications and related teacher support materials is charged to the consolidated statement of financial activities in the year in which the expenditure is incurred.

(ii) Systems development

Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets.

(iii) Research and development expenditure

Research expenditure is charged to the consolidated statement of financial activities in the year in which the expenditure is incurred.

Costs incurred on development projects are recognised as intangible assets when it is probable that the project will be a success, considering its commercial and technological feasibility, costs can be measured reliably and resources are available to complete the project. Other development expenditure that does not meet these criteria is recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent year.

(k) Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

The useful economic lives and residual value of fixed assets are periodically reviewed. The effect of any change is accounted for prospectively.

Depreciation commences from the date an asset is brought into service. The charge for depreciation is calculated so as to write off the cost, less estimated realisable value, of each asset on a straight line basis over its expected useful life.

Freehold buildings 25 - 40 years
Leasehold land and buildings Term of the lease
Assets under construction Not depreciated
Furniture, equipment and vehicles:
Office fixtures & fittings and equipment 3 - 10 years
Motor vehicles 4 years
IT equipment 3 years
Freehold land is not depreciated.

44

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(k) Tangible fixed assets and depreciation (continued)

For the purposes of the Charities SORP (FRS102), all tangible fixed assets of AQA Education are considered to be functional assets of the Charity. Tangible assets costing more than £10,000 per individual item or Group of related items are capitalised in the year of acquisition. Items costing less than £10,000 are charged to the consolidated statement of financial activities when incurred.

Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the consolidated statement of financial activities.

(l) Leased assets

At inception the Group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.

(i) Operating lease

Leases that do not transfer substantially all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the consolidated statement of financial activities on a straight-line basis over the period of the lease.

(ii) Lease incentive

Incentives received to enter into an operating lease are credited to the consolidated statement of financial activities, to reduce the lease expense, on a straight-line basis over the period of the lease.

The Group and Charity have taken advantage of the exemption in respect of lease incentives on leases in existence on the date of transition to FRS 102 (1 October 2014) and continue to credit such lease incentives to the consolidated statement of financial activities over the period to the first review date on which the rent is adjusted to market rates.

(m) Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the asset is compared to the carrying amount of the asset.

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax, obtainable as a result of the asset’s continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market riskfree rate and the risks inherent in the asset.

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount and an impairment loss is recognised in the consolidated statement of financial activities.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the consolidated statement of financial activities.

45

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

The purchase of materials, goods and examination materials are written off in the year of examination. Printing stocks and consumables are valued at the lower of cost and estimated selling price less cost to complete and sell.

Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including irrecoverable taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition.

At the end of each reporting year stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the consolidated statement of financial activities. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the consolidated statement of financial activities.

Cash and cash equivalents includes cash at bank, deposits held with banks and cash held by investment managers (presented within other fixed asset investments on the balance sheet). Investments balances that are liquid but are not used to fund short term commitments are held in current investments.

(p) Fixed asset investments

In the charity's individual accounts, investments in subsidiary undertakings are measured at cost less accumulated impairment.

(ii) Investments in quoted company shares, bonds, investment funds, unit trusts and open-ended investment companies

Investments in quoted company shares, bonds, investment funds, unit trusts and open-ended investment companies are stated at market value. Please see note 14 for further details.

(q) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event and it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The timing or the amount of the future expenditure required to settle the obligation is uncertain.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations might be small.

46

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(q) Provisions (continued)

Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

(r) Donations received under gift aid

Donations received under gift aid from Group entities are recognised when the funds are received by the Charity. Subsidiaries will remit charitable donations to the Charity based on the previous reporting period's financial performance, however they have no legal obligation to do so.

(s) Financial instruments

The Group has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, amounts owed by fellow undertakings and cash and bank balances are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting year financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the consolidated statement of financial activities.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the consolidated statement of financial activities.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value as at the reporting date using the closing quoted market price. The consolidated statement of financial activities includes the changes in fair value, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. These long term investments, whilst highly liquid, are included in fixed assets, as there is no intention to draw down on them in the next year or indeed in the near future.

All gains and losses are taken to the consolidated statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their original purchase cost. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their original purchase cost.

47

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

(s) Financial instruments (continued)

(i) Financial assets (continued)

The main form of financial risk faced by the Charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors and amounts owed to fellow Group companies that are classified as debt, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities including debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

The Group does not currently use derivatives to manage its financial risks.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(t) Critical accounting judgements and key source of estimation

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 Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. 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 discussed below.

(i) Share of loss in joint venture

The Charity has invested in a jointly controlled entity (Oxford International AQA Examinations Limited) in which it owns 50% of the issued share capital. The Charity’s share of losses is in excess of its interest in the entity. Management have elected to recognise the excess amount within provisions for liabilities as they consider they have a continuing commitment to those students studying for their exams if the jointly controlled entity were to cease trading.

48

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

3 Summary of significant accounting policies (continued)

The capitalisation of software development costs on the balance sheet depends on the assessment of future economic benefit arising from future use and is accordingly a matter of judgement.

(iii) Fixed asset useful economic lives

Depreciation and amortisation charges are recognised to write down assets to their residual values over their useful economic lives. The determination of these residual values and estimated lives requires the exercise of management judgement.

(iv) Pension scheme buy-out

The Charity has entered into a buy-in policy covering the liabilities of all members of the AOA Pension Scheme. The Charity has confirmed that there is no commitment to convert to buy-out in the near future which would require the, further agreement of the Pension Trustees and AQA.

The Group reviews the indicators of impairment annually to identify whether goodwill has suffered any impairment, in accordance with the accounting policy stated. The recoverable amounts of cash generating units have been determined based on value-in-use calculations.

(ii) Retirement benefit obligations

The Group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depends on a number of factors, including: life expectancy, salary increases, and the discount rate on corporate bonds. Management estimates these factors in determining the pension obligations in the balance sheet. The assumptions reflect historical experience and current trends.

Note 26 details the actuarial assumptions used in determining the carrying amount at 31 March 2025.

(iii) Provisions

Provisions made for share of loss in Joint Venture, reorganisation costs, withdrawn learners and dilapidations require management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management’s judgement.

Also included within provisions is contingent consideration, this is additional consideration that could be due to the previous shareholders of the group's acquisitions. The amounts are based on profit and other qualitative targets placed on the business in the years following acquisition. Consequently, management must estimate the businesses performance against such targets in order to estimate the additional consideration payable.

49

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

4 Income from charitable and other trading activities

Educational Services - United Kingdom fee income
Educational Services – Overseas fee income
Total income from charitable activities
Digital and Consultancy Services – United Kingdom
Digital and Consultancy Services – Overseas
Total income from other trading activities
nvestment income and management costs
Interest – UK deposits
Dividends
Net credit to other finance income on defined pension
scheme assets and liabilities (note 26)
Total investment income
Investment manager fees
Total investment management costs
Net investment income		 Unrestricted funds
2025
2024
£000
£000
261,654
239,709
3,003
1,992
264,657
241,701
7,248
7,273
506
-
7,754
7,273
Unrestricted funds
2025
2024
£000
£000
2,729
3,255
3,797
345
6,526
3,600
1,188
1,623
7,714
5,223
(40)
(73)
(40)
(73)
7,674
5,150

5 Investment income and management costs

50

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

6 Charitable and other trading expenditure

Operational costs:
Examiner costs
Printing postage and other
examination costs
Premises costs
Staff costs
Operating lease rentals
Non-capital IT costs
Depreciation
Amortisation of goodwill
Amortisation of intangibles
Loss on disposal
Overheads
Restructuring costs
Consultancy
Governance costs (note 9)
Other support costs (note 9)
Non-operational costs:
Software impairment
Goodwill impairment
Total		 2025
2025
2025
2024
2024
2024
Educational
services
Digital and
consultancy
services
Total
Educational
services
Digital and
consultancy
services
Total
£000
£000
£000
£000
£000
£000
72,246
-
72,246
64,188
-
64,188
12,738
-
12,738
7,543
-
7,543
4,732
-
4,732
2,838
-
2,838
76,118
3,926
80,044
76,446
3,678
80,124
2,289
-
2,289
1,582
-
1,582
33,058
-
33,058
25,429
-
25,429
2,783
30
2,813
2,207
32
2,239
4,245
-
4,245
5,822
-
5,822
7,265
-
7,265
13,878
-
13,878
-
9
9
-
-
-
11,371
431
11,802
10,952
365
11,317
782
-
782
716
-
716
12,099
3,121
15,220
11,585
2,922
14,507
755
31
786
705
31
736
17,484
-
17,484
16,146
-
16,146
257,965
7,548
265,513
240,037
7,028
247,065
-
-
-
396
-
396
-
-
-
4,715
-
4,715
257,965
7,548
265,513
245,148
7,028
252,176

7 Summary analysis of expenditure and related income for charitable activities

Income from charitable activities:
Fees and charges
Total income
Expenditure on charitable activities:
Staff costs
Operational costs
Non-operational costs
Total expenditure
Total surplus / (deficit) from charitable activities		 2025
2024
Total
Total
£000
£000
264,657
241,701
264,657
241,701
(94,405)
(92,604)
(163,560)
(147,433)
-
(5,111)
(257,965)
(245,148)
6,692
(3,447)

51

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

8 Taxation

AQA is a charity and therefore claims exemption from corporation tax. Subsidiary trading companies make donations under gift aid to the Charity, equal to taxable profits, within 9 months of the balance sheet date, and thus do not have corporation tax charges or liabilities.

In the previous year, no deferred tax asset was recognised and £1,600,000 was charged to the Consolidated Income Statement due to a deferred tax asset of £1,600,000 being recognised for the expected utilisation of tax losses against future taxable profits the year prior. It is now estimated that no tax losses will be utilised. The deferred tax asset unprovided at the year-end is £3,378,000 (2024: £2,032,000) .

9 Analysis of governance and support costs

The Group initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the charitable activities undertaken (see note 6) in the year. The basis of allocation between education and digital and consultancy services depends on the nature of services provided by the entity in which the costs arise. Refer to the table below for the basis for apportionment and the analysis of support and governance costs.

Employment costs
Trustee expenses
Internal audit services
External auditor – audit services:
Audit of consolidated and Charity financial
statements
Audit of the subsidiary financial statements
Other services
Total		 Other
support
costs
Governance
costs
2025
Total
Basis of allocation
£000
£000
£000
17,484
21
17,505
Staff time
-
4
4
Invoiced events
-
361
361
Governance
-
198
198
Governance
-
199
199
Governance
-
3
3
Governance
17,484
786
18,270

52

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

9 Analysis of governance and support costs (continued)

Employment costs
Trustee expenses
Internal audit services
External auditor – audit services:
Audit of consolidated and Charity financial
statements
Audit of the subsidiary financial statements
Other services
Total		 Support
costs
Governance
costs
2024
Total
Basis of allocation
£000
£000
£000
16,146
15
16,161
Staff time
-
8
8
Invoiced events
-
373
373
Governance
-
162
162
Governance
-
175
175
Governance
-
3
3
Governance
16,146
736
16,882

As the Charity is unable to recover input VAT, the fee for the audit of consolidated and Charity financial statements includes VAT. External audit fee net of VAT for audit of consolidated and Charity financial statements was £164,700 (2024: £135,200). External audit fee net of VAT for audit of the subsidiary financial statements financial statements was £166,000 (2024: £143,800). Fee net of VAT for assurance in relation to Certification of teacher’s pension scheme £2,200 (2024: £2,175).

10 Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel

Wages and salaries
Social security costs
Pension costs
-
Defined benefit employer contributions
-
Defined contribution pension costs
Other staff related costs		 2025
2024
£000
£000
77,545
75,496
7,864
7,123
344
735
7,633
7,059
93,386
90,413
4,945
5,872
98,331
96,285

53

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

10 Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel (continued)

Termination payments of £1,316,000 (2024: £678,000) were made in the year, partly due to changes in the staffing structure which are accounted for under restructuring costs with the remainder falling under normal staff costs.

Average monthly number of employees and temporary staff
By activity:
Educational services
Support and administration
Digital and consultancy services		 2025
2024
Number
Number
1,247
1,237
411
420
140
112
1,798
1,769

During the year there was a change in the Chair of Trustees and having received Charity Commission permission Ms Spackman, serving from April 2024 to December 2024, was paid £15,000 and then Mr Laws, serving from December 2024 to March 2025, was paid £6,000 for their role as Chair of Trustees. In the prior year, £15,000 was paid to Mr van Wijngaarden for his role as the Chair of Trustees during that period. The Trustees have been reimbursed for all expenses incurred by them in connection with their attendance at meetings of the Board, other committees or general meeting of the Charity or otherwise in connection with their discharge of their duties as Trustees. Travelling and subsistence expenses amounting to £3,679 (2024: £8,101) , were reimbursed to 7 (2024: 12) Trustees. No Trustee shall be appointed to any office of the Charity paid by salary or fees, other than that the Chief Executive Office of the Charity may be appointed as a Trustee.

The key management personnel of the parent Charity comprise the Executive Team alongside the Trustees of the Charity. The total remuneration of the key management personnel of the Charity over the full year was £2,242,000 (2024: £1,876,000) . The remuneration of the Chief Executive Officer was £407,000 (2024: £373,000. The Chief Executive Officer is also a Trustee as permitted by the Articles of Association however all remuneration paid to them is in respect of their employment with AQA, not for their duties as a Trustee . Remuneration for key management personnel and Chief Executive Officer includes employer pension contributions, employers’ national insurance, termination payments and benefits in kind. During the year there were no termination payments (2024: £125,000) paid to members of key management personnel.

The key management personnel of the Group comprise those of the Charity and the key management personnel of its wholly owned subsidiaries. The remuneration of the key management personnel of the subsidiaries totalled £1,721,000 (2024: £1,649,000). The total remuneration of the key management personnel for the Group was £3,963,000 (2024: £3,525,000).

54

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

10 Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel (continued)

There were 346 (2024: 273) employees whose emoluments, excluding pension contributions and employers’ national insurance, but including benefits in kind and termination payments, were in excess of £60,000.

Group

Group
Year ended Year ended
31 March 2025 31 March 2024
Number Number
Higher paid employees fell within the following bands:
£60,001 to £70,000 144 125
£70,001 to £80,000 89 66
£80,001 to £90,000 52 35
£90,001 to £100,000 18 15
£100,001 to £110,000 16 12
£110,001 to £120,000 10 7
£120,001 to £130,000 4 2
£130,001 to £140,000 1 2
£140,001 to £150,000 3 2
£150,001 to £160,000 4 2
£160,001 to £170,000 1 1
£170,001 to £180,000 1 -
£190,001 to £200,000 - 2
£200,001 to £210,000 2 -
£280,001 to £290,000 - 1
£330,001 to £340,000 - 1
£350,001 to £360,000 1 -

The number of employees whose emoluments exceeded £60,000 have increased year on year due to a combination of factors including annual salary pay rises and an increase in overall headcount.

Contributions by the employer were made to defined benefit pension schemes for 5 (2024: 29) higher paid employees. Contributions amounting to £2,488,000 (2024: £1,661,000) were made to defined contribution schemes for 335 (2024: 261) higher paid employees. Pension contributions have increased in line with the number of higher paid employees. The AQA Pension scheme includes both defined benefit and defined contribution elements.

55

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

11 Intangible assets

Group
COST
At 1 April 2024
Additions
Reduction in contingent consideration
At 31 March 2025
ACCUMULATED AMORTISATION
At 1 April 2024
Amortisation charge for the year
At 31 March 2025
NET BOOK VALUE
At 31 March 2025
At 31 March 2024		 Goodwill
Software
Product
development
expenditure
Assets under
development
Total
£000
£000
£000
£000
£000
52,610
84,068
15,099
-
151,777
-
1,294
-
3,462
4,756
(511)
-
-
-
(511)
52,099
85,362
15,099
3,462
156,022
19,667
68,827
15,099
-
103,593
4,245
7,265
-
-
11,510
23,912
76,092
15,099
-
115,103
28,187
9,270
-
3,462
40,919
32,943
15,241
-
-
48,184

Goodwill reductions reflect the unexpected loss of customer contracts during the year which resulted in a decrease to subsidiary revenues and cash flows.

Charity
COST
At 1 April 2024
Additions
At 31 March 2025
ACCUMULATED AMORTISATION
At 1 April 2024
Amortisation charge for the year
At 31 March 2025
NET BOOK VALUE
At 31 March 2025
At 31 March 2024		 Goodwill
Software
Assets under
development
Total
£000
£000
£000
£000
171
79,147
-
79,318
-
623
2,310
2,933
171
79,770
2,310
82,251
40
66,007
-
66,047
34
6,387
-
6,421
74
72,394
-
72,468
97
7,376
2,310
9,783
131
13,140
-
13,271

56

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

11 Intangible assets (continued)

Software includes £6,381,000 (2024: £10,635,000) relating to our new Enterprise Resource Planning (ERP) system. Amortisation is due to finish in the 2026/27 financial year.

12 Tangible fixed assets

Group
Freehold
Land &
Buildings
£000
COST
At 1 April 2024
450
Additions
-
Disposals
-
At 31 March 2025
450
ACCUMULATED DEPRECIATION
At 1 April 2024
-
Charge for the year
-
On disposals
-
At 31 March 2025
-
NET BOOK VALUE
At 31 March 2025
450
At 31 March 2024
450
Charity
COST
At 1 April 2024
Additions
Disposals
At 31 March 2025
ACCUMULATED DEPRECIATION
At 1 April 2024
Charge for the year
On disposals
At 31 March 2025
NET BOOK VALUE
At 31 March 2025
At 31 March 2024		 Freehold
Land &
Buildings
£000
450
-
-		 Leasehold
Land &
Buildings
IT
Equipment
Furniture,
Equipment
and Vehicles
Assets under
construction
Total
£000
£000
£000
£000
£000
19,175
3,524
15,139
-
38,288
-
77
519
1,157
1,753
(18)
(990)
(20)
-
(1,028)
450 19,157
2,611
15,638
1,157
39,013
2,127
3,149
6,494
-
11,770
1,046
206
1,561
-
2,813
-
(1,001)
(12)
-
(1,013)
- 3,173
2,354
8,043
-
13,570
450 15,984
257
7,595
1,157
25,443
450 17,048
375
8,645
-
26,518
Leasehold
Land &
Buildings
IT
Equipment
Furniture,
Equipment
and Vehicles
Assets under
construction
Total
£000
£000
£000
£000
£000
19,176
2,552
2,324
-
24,052
-
-
-
1,157
1,157
(18)
(967)
-
-
(985)
19,158
1,585
2,324
1,157
24,224
2,124
2,356
308
-
4,788
1,047
84
276
-
1,407
-
(967)
-
-
(967)
3,171
1,473
584
-
5,228
15,987
112
1,740
1,157
18,996
17,052
196
2,016
-
19,264

57

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

13 Investment in subsidiary undertakings and joint ventures

(a) Cost of investment in subsidiary undertakings

At 1 April 2024
Additions
GradeMaker Limited
Group reorganisation - share for share exchange
AQA Assessment Services Limited
GradeMaker Limited
AQA Commercial Services Limited
Other Movements
AQA Commercial Services Limited (Debt to Equity Swap)
AQA Commercial Services Limited (AlphaPlus contingent consideration)
AQA Commercial Services Limited (Blutick impairment)
AQA Commercial Services Limited (GradeMaker impairment)
AQA Commercial Services Limited (AlphaPlus impairment)
AC3 Solutions Limited (Hive Up)
At 31 March 2025
AQA Commercial Services Limited		 2025
2024
£000
£000
22,421
26,449
-
6,128
-
6,128
-
(7,308)
-
(6,128)
-
13,436
-
-
3,800
-
13
-
-
(1,339)
-
(6,128)
-
(2,012)
-
(677)
3,813
(10,156)
26,234
22,421
26,234
22,421

During the year a debt to equity swap took place where AQA Commercial Services Limited issued shares in order to pay some of the balance of an intercompany loan with AQA Education.

58

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

13 Investment in subsidiary undertakings and joint ventures (continued)

A list of the subsidiary undertakings is provided below:

Name of the entity Company Registered Office Address Parent Entity % of
Number ownership
interest
AQA Assessment 05568337 Devas Street, Manchester, AQA Commercial 100%
Services Limited M15 6EX Services Limited
AQA Commercial 14299239 Devas Street, Manchester, AQA Education 100%
Services Limited M15 6EX
AlphaPlus Consultancy 04801609 Devas Street, Manchester, AQA Commercial 100%
Limited M15 6EX Services Limited
Training Qualifications 07827508 Crossgate House, Cross AQA Commercial 100%
UK Limited Street, Sale, M33 7FT Services Limited
Doublestruck Limited 02373295 Devas Street, Manchester, AQA Commercial 100%
M15 6EX Services Limited
GradeMaker Limited* 08936673 Devas Street, Manchester, AQA Assessment 100%
M15 6EX Services Limited
Blutick Limited* 11318113 Devas Street, Manchester, Doublestruck Limited 100%
M15 6EX
AC3 Solutions Limited* 08453864 Devas Street, Manchester, AQA Education 100%
M15 6EX

*The operations of GradeMaker Limited were hived up into AQA Assessment Services Limited in the prior year and the company currently remains dormant. AC3 Solutions Limited & Blutick Limited were hived up into their respective parent in the prior year and were dissolved in May 2025.

59

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

13 Investment in subsidiary undertakings and joint ventures (continued)

The summarised financial information of the subsidiary undertakings is provided below:

Gross Expenditure Profit/(loss) Assets Liabilities Funds /
Income for the year Reserves
2025 2025 2025 2025 2025 2025
£000 £000 £000 £000 £000 £000
AQA Assessment 12,344 (18,398) (6,054) 10,856 (8,790) 2,066
Services Limited
AQA Commercial - (3,446) (3,446) 70,364 (45,963) 24,401
Services Limited
AlphaPlus Consultancy 7,755 (7,549) 206 3,793 (485) 3,308
Limited
Training Qualifications 13,731 (9,135) 4,596 8,704 (2,651) 6,053
UK Limited
Doublestruck Limited 6,241 (4,747) 1,494 4,849 (3,856) 993

There is no financial information to report for AC3 Solutions Limited, Blutick Limited and GradeMaker as they were hived up into their respective parent in the prior year.

Gross Expenditure Profit/(loss) Assets Liabilities Funds /
Income for the year Reserves
2024 2024 2024 2024 2024 2024
£000 £000 £000 £000 £000 £000
AQA Assessment 27,513 (13,048) 14,465 12,366 (2,646) 9,720
Services Limited
AC3 Solutions Limited 113 (56) 57 - - -
AQA Commercial 6,132 (3,579) 2,553 62,576 (38,541) 24,035
Services Limited
AlphaPlus Consultancy 7,274 (7,028) 246 4,196 (762) 3,434
Limited
Training Qualifications 11,638 (8,998) 2,640 6,872 (2,237) 4,635
UK Limited
Doublestruck Limited 5,892 (4,020) 1,872 3,695 (3,509) 186
Blutick Limited 41 (143) (102) - - -
GradeMaker Limited 336 (1,183) (847) - - -

Figures for GradeMaker Limited represent the period from acquisition to 31 March 2024. AC3 Solutions Limited, Blutick Limited and GradeMaker Limited have nil assets and liabilities as they have been hived up into their respective parent.

60

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

13 Investment in subsidiary undertakings and joint ventures (continued)

(b) Cost of investment in joint venture

b) Cost of investment in joint venture
At 1 April 2024
Funding payments
Share of loss
At 31 March 2025		 2025
2024
£000
£000
(520)
(733)
250
1,350
(866)
(1,137)
(1,136)
(520)

AQA’s share of the accumulated losses of the joint venture which exceeds the amount invested is included within provisions for liabilities and charges on the balance sheet and is stated at cost less impairment. During the year, an addition of £250,000 (2024: £1,350,000) was made to the cost of the investment.

The joint venture listed below has share capital consisting solely of ordinary shares, which is held directly by the Group.

Place of % of Nature of the Measurement
business/country ownership **relationship ** method
Name of the entity **of incorporation ** interest
Oxford International AQA
Examinations Limited United Kingdom 50 See below Equity

Oxford International AQA Examinations Limited offers a suite of international GCSE, AS and A-level qualifications to schools outside the UK that teach a British curriculum. The qualifications are designed and delivered by AQA and externally validated to ensure they are comparable to UK qualifications.

The business made a loss in the year, in line with expectations at this stage of its growth and the AQA Trustees remain positive about future trading. AQA remains committed to funding its share of the jointly controlled entity.

61

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

14 Other fixed asset investments

Investments

Market value at 1 April 2024
Additions at cost
Disposals at market value (i.e. sales proceeds)
Net movements in cash held with fund managers
Net investment gains
Market value at 31 March 2025
Cost at 31 March 2025
Balance on net unrealised gain reserve		 Group
& Charity
Group
& Charity
2025
2024
£000
£000
53,359
48,687
1,348
20,470
(1,299)
(19,783)
12
(426)
563
4,411
53,983
53,359
52,406
50,472
1,577
2,887

62

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

14 Other fixed asset investments (continued)

Analysis of market value of investments held

Equities
United Kingdom
Overseas
Bonds
United Kingdom
Overseas
Multi asset funds
Alternatives
Hedge funds
Property
Commodities
Other
Cash held with fund managers		 Group &
Charity
% of
total
Group &
Charity
% of
total
2025
2024
£000
£000
80
0.1
79
0.1
1,867
3.5
1,930
3.6
474
0.9
453
0.8
733
1.4
702
1.3
49,658
92.0
48,743
91.4
122
0.2
109
0.2
103
0.2
459
0.9
222
0.4
167
0.3
414
0.8
419
0.8
310
0.5
298
0.6
53,983
100
53,359
100

All investments are carried at their fair value. Investment in equities and bonds are all traded in quoted public markets, such as the London Stock Exchange. Holdings in multi asset funds and other investments are as advised by the fund managers. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

63

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

15 Stocks and work in progress

Finished goods Group
Charity
Group
Charity
2025
2025
2024
2024
£000
£000
£000
£000
873
851
1,420
891
873
851
1,420
891

16 Debtors

Trade debtors
Amounts owed by Group undertakings
Amount due from related party
Other debtors
Prepayments and accrued income		 Group
Charity
Group
Charity
2025
2025
2024
2024
£000
£000
£000
£000
89,975
85,621
90,821
85,933
-
50,672
-
35,856
302
302
462
462
385
169
15,529
15,518
8,401
6,414
7,476
4,807
99,063
143,178
114,288
142,576

Trade debtors within the charity are slightly lower year on year due to higher receipt of cash compared to prior year for the summer 2025 series, resulting in less cash being due to the company before the financial year end.

Prepayments and accrued income includes £164,000 (2024: £484,000) falling due after more than one year.

Other debtors £169,000 (2024: £169,000) falling due after more than one year.

Amounts due from Group undertakings are unsecured. Loans are repayable on demand with twelve months’ notice and interest is charged at an annual commercial rate of 4.75% over the base rate. Loans arranged before 31 March 2022 use the Royal Bank of Scotland base rate, those arranged afterwards use the Bank of England base rate.

64

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

17 Current investments

Investments totalling £91,559,000 (2024: £63,048,000) shown under current assets for the Group and £86,675,000 (2024: £63,048,000) for the Charity are represented by shares in the BlackRock Institutional Sterling Liquidity Fund and Goldman Sachs Sterling Liquid Reserves Fund. These are deemed to be highly liquid funds. It is management’s intention that these funds are held for investment purposes and as such do not form part of cash and cash equivalents.

As at 31 March 2025 the balance also includes £6,581,000 (2024: £6,386,000) relating to a pension fund account to allow AQA to fund a buy-out of the AQA Pension Scheme with an insurance company at some time in the future. AQA may access the funds with the joint consent of the Pension Trustees.

Net movements related to current investments are reflected in the Consolidated Statement of Cash Flows.

18 Creditors: amounts falling due within one year

Trade creditors
Amounts owed to Group undertakings
Taxation and social security costs
Other creditors
Accruals and deferred income		 Group
Charity
Group
Charity
2025
2025
2024
2024
£000
£000
£000
£000
6,186
5,433
4,655
3,983
-
1,203
-
1,462
2,818
1,698
2,779
2,001
1,396
974
1,199
790
233,484
228,854
232,008
226,345
243,884
238,162
240,641
234,581

Amounts due to Group undertakings in the prior year are unsecured. These loans were repayable on demand with twelve months’ notice and interest was charged at an annual commercial rate of 4.75% over the Royal Bank of Scotland base rate.

The movement on deferred income during the year was:

Balance at 1 April 2024
Amount deferred in the year
Amount released in the year
Balance at 31 March 2025		 Group
Charity
Group
Charity
2025
2025
2024
2024
£000
£000
£000
£000
221,625
217,699
206,134
202,350
229,509
225,211
221,625
217,699
(221,625)
(217,699)
(206,134)
(202,350)
229,509
225,211
221,625
217,699

Income for the provision of examination services is recognised when all services associated with the qualification are substantially completed. Income received in advance of the examination series is deferred and recognised when the examination series takes place.

65

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

19 Financial instruments

The Group and Charity have the following financial instruments measured at fair value:

Note
Financial assets measured at fair value
through consolidated statement of financial
activities:
Investment in securities
Equities
14
Bonds
14
Multi asset funds
14
Alternatives
14
Cash held with fund managers
14
Short-term deposits
17		 Group
Charity
Group
Charity
2025
2025
2024
2024
£000
£000
£000
£000
Restated
Restated
1,947
1,947
2,009
2,009
1,207
1,207
1,155
1,155
49,658
49,658
48,743
48,743
861
861
1,154
1,154
310
310
298
298
91,559
86,675
63,048
63,048
145,542
140,658
116,407
116,407

The Group’s activities expose it to a variety of financial risks: market risk (including price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. Details on the Group’s exposure to each type of risk and how it manages those risks are detailed in ‘Financial risk management’ section of the Strategic Report.

The prior year figures have been restated to correct a classification error, The cash at bank and in hand balance was mistakenly included under short term deposits and classified as a financial asset measured at fair value. Additionally, the bank account associated with the designated pension fund has been reclassified from cash at bank and in hand to current asset investments.

66

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

20 Provisions for liabilities and charges

Group
Balance at 1 April 2024
Provided in the year
Utilised in the year
Reduction in estimate
Balance at 31 March 2025
Charity
Balance at 1 April 2024
Provided in the year
Utilised in the year
Increase in estimate
Balance at 31 March 2025		 Contingent
consideration
Leasehold
dilapidations
Share of loss in
joint venture
Other
provisions
Total
£000
£000
£000
£000
£000
4,574
1,469
520
562
7,125
-
333
866
-
1,199
(1,368)
(4)
(250)
(167)
(1,789)
(511)
-
-
-
(511)
2,695
1,798
1,136
395
6,024
Contingent
consideration
Leasehold
dilapidations
Share of loss in
joint venture
Other
provisions
Total
£000
£000
£000
£000
£000
1,355
521
520
2
2,398
-
323
866
-
1,189
(1,368)
-
(250)
(2)
(1,620)
13
-
-
-
13
-
844
1,136
-
1,980

Contingent consideration

This provision relates to future consideration due for the acquisition of AlphaPlus Consultancy Limited and Training Qualifications UK Limited. Actual consideration will be calculated based on performance of the entities in the postacquisition period. The provision represents management’s forecasts for Training Qualifications UK Limited, AlphaPlus Consultancy Limited contingent consideration is now nil at the year end.

Other provisions

Other provisions includes £395,000 (2024: £560,000) relating to potential withdrawing learners, that have registered on qualifications. Other provisions also includes £nil (2024: £2,000) relating to estimated costs of changes to staffing structures.

Leasehold dilapidations

As part of the property leasing arrangements there is an obligation to repair damages and make good leasehold properties when they are vacated. The provision is expected to be utilised between 2025 and 2108 as the leases terminate.

Share of loss in joint venture

The share of loss in the joint venture relates to AQA's share of the loss in the Oxford International AQA Examinations Limited entity which is jointly held with Oxford University Press. The provision will be offset against future profits of the joint venture.

67

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

21 Total Charity Funds

Analysis of movements in unrestricted funds
1 April Net Income / Investment and Transfers 31 March
2024 (expenditure) actuarial 2025
Group gains / (losses)
£000 £000 £000 £000 £000
Designated funds
Pension fund 6,386 - - 195 6,581
Total designated funds 6,386 - - 195 6,581
Unrestricted general funds
General unrestricted funds 64,246 28,029 1,873 (5,966) 88,182
Fixed asset fund 74,702 (14,323) - 5,983 66,362
Investment revaluation reserve 2,887 - (1,310) - 1,577
Total unrestricted general funds 141,835 13,706 563 17 156,121
Unrestricted funds before
pension asset 148,221 13,706 563 212 162,702
Pension Reserve 16,380 - (17,248) (212) (1,080)
Total Group funds 164,601 13,706 (16,685) - 161,622

The pension fund is a designated fund which has been created to help fund a buy-out of the pension scheme with an insurance company at some time in the future.

Analysis of net assets between funds 2025

Group
Intangible assets
Tangible assets
Investments
Current assets
Liabilities
Provisions
Net pension scheme liability
Total net assets		 Designated
fund
General
fund
Pension
fund
Total unrestricted
funds
-
40,919
-
40,919
-
25,443
-
25,443
-
53,983
-
53,983
6,581
285,684
-
292,265
-
(243,884)
-
(243,884)
-
(6,024)
-
(6,024)
-
-
(1,080)
(1,080)
6,581
156,121
(1,080)
161,622

68

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

21 Total Charity Funds (continued)

Analysis of movements in unrestricted funds Analysis of movements in unrestricted funds
1 April Net Income / Investment and Transfers 31 March
2024 (expenditure) actuarial 2025
Charity gains / (losses)
£000 £000 £000 £000 £000
Designated funds
Pension fund 6,386 - - 195 6,581
Total designated funds 6,386 - - 195 6,581
Unrestricted general funds
General unrestricted funds 118,184 33,146 1,873 (4,056) 149,147
Fixed asset fund 32,534 (7,828) - 4,073 28,779
Investment revaluation reserve 2,887 - (1,310) - 1,577
Total unrestricted general funds 153,605 25,318 563 17 179,503
Unrestricted funds before
pension asset 159,991 25,318 563 212 186,084
Pension Reserve 16,380 - (17,248) (212) (1,080)
Total Charity funds 176,371 25,318 (16,685) - 185,004

The pension fund is a designated fund which has been created to help fund a buy-out of the pension scheme with an insurance company at some time in the future.

Analysis of net assets between funds 2025
Charity
Intangible assets
Tangible assets
Investment in subsidiary undertakings
Investments
Current assets
Liabilities
Provisions
Net pension scheme liability
Total net assets		 Designated
fund
General
fund
Pension
fund
Total unrestricted
funds
-
9,783
-
9,783
-
18,996
-
18,996
-
26,234
-
26,234
-
53,983
-
53,983
6,581
310,649
-
317,230
-
(238,162)
-
(238,162)
-
(1,980)
-
(1,980)
-
-
(1,080)
(1,080)
6,581
179,503
(1,080)
185,004

69

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

21 Total Charity Funds (continued)

Analysis of movements in unrestricted funds
1 April Net Income / Investment and Transfers 31 March
2023 (expenditure) actuarial 2024
Group gains / (losses)
£000 £000 £000 £000 £000
Designated funds
Pension fund 6,244 - - 142 6,386
Total designated funds 6,244 - - 142 6,386
Unrestricted general funds
General unrestricted funds 75,583 29,933 2,173 (43,443) 64,246
Fixed asset fund 49,217 (16,117) - 41,602 74,702
Investment revaluation reserve 649 - 2,238 - 2,887
Total unrestricted general funds 125,449 13,816 4,411 (1,841) 141,835
Unrestricted funds before
pension asset 131,693 13,816 4,411 (1,699) 148,221
Pension Reserve 24,503 - (9,822) 1,699 16,380
Total Group funds 156,196 13,816 (5,411) - 164,601

The pension fund is a designated fund which has been created to help fund a buy-out of the pension scheme with an insurance company at some time in the future.

Analysis of net assets between funds 2024

Group
Intangible assets
Tangible assets
Investments
Current assets
Liabilities
Provisions
Net pension scheme asset
Total net assets		 Designated
fund
General
fund
Pension
fund
Total unrestricted
funds
-
48,184
-
48,184
-
26,518
-
26,518
-
53,359
-
53,359
6,386
261,540
-
267,926
-
(240,641)
-
(240,641)
-
(7,125)
-
(7,125)
-
-
16,380
16,380
6,386
141,835
16,380
164,601

70

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

21 Total Charity Funds (continued)

Analysis of movements in unrestricted funds
1 April Movement Net Income / Investment Transfers 31 March
2023 on reserves (expenditure) and actuarial 2024
Charity gains/(losses)
£000 £000 £000 £000 £000 £000
Designated funds
Pension fund 6,244 - - - 142 6,386
Total designated funds 6,244 - - - 142 6,386
Unrestricted general funds
General unrestricted funds 103,672 (40) 21,251 2,173 (8,872) 118,184
Fixed asset fund 39,550 - (14,047) - 7,031 32,534
Investment revaluation reserve 649 - - 2,238 - 2,887
Total unrestricted general funds
143,871		 (40) 7,204 4,411 (1,841) 153,605
Unrestricted funds before
pension asset 150,115 (40) 7,204 4,411 (1,699) 159,991
Pension Reserve 24,503 - - (9,822) 1,699 16,380
Total charity funds 174,618 (40) 7,204 (5,411) - 176,371

The pension fund is a designated fund which has been created to help fund a buy-out of the pension scheme with an insurance company at some time in the future.

The movement on reserves relates to the brought forward amortisation of goodwill on hive up of AC3 solutions Limited to AQA Education.

Analysis of net assets between funds 2024
Charity
Intangible assets
Tangible assets
Investment in subsidiary undertakings
Investments
Current assets
Liabilities
Provisions
Net pension scheme asset
Total net assets		 Designated
fund
General
fund
Pension
fund
Total unrestricted
funds
-
13,271
-
13,271
-
19,264
-
19,264
-
22,421
-
22,421
-
53,359
-
53,359
6,386
282,269
-
288,655
-
(234,581)
-
(234,581)
-
(2,398)
-
(2,398)
-
-
16,380
16,380
6,386
153,605
16,380
176,371

71

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

21 Total Charity Funds (continued)

Transfer of funds from general unrestricted funds to fixed asset fund and pension charged accounts is to reallocate resources received to further invest in our fixed assets and contribute to our pension escrow account to fund a buyout of the pension scheme.

22 Net cash generated from operations

Reconciliation of net income to net cash generated from operations

Net income after tax
Net investment income excluding net finance income on defined benefit pension
schemes
Depreciation
Loss / (Profit) on disposal of tangible fixed assets
Amortisation of intangibles
Reduction in contingent consideration
Decrease in stocks
(Increase) / Decrease in debtors
Increase in creditors
Decrease in provisions
Post-employment benefits cost less payments
Net cash generated from operations		 Group
2025
2024
£000
£000
13,706
13,816
(6,526)
(3,600)
2,813
2,239
9
(14,605)
11,510
19,700
511
8,138
547
752
(124)
15,411
3,243
17,432
(851)
(4,092)
212
(1,699)
25,050
53,492

Movement on debtors and creditors has been adjusted for sale proceeds received in the prior and subsequent years.

Analysis of changes in net debt

Other fixed asset investments cash
Cash at bank and in hand
Total cash and cash equivalents		 At 1 April
2024
Cash flows
At 31 March
2025
£000
£000
£000
Restated
298
12
310
89,170
11,600
100,770
89,468
11,612
101,080

72

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

23 Operating lease commitments

At 31 March AQA had the following future minimum lease payments under non-cancellable operating leases, for each of the following years:

Not later than one year
Later than one year and not later than five years
Later than five years		 Group
2025
Charity
2025
Group
2024
Charity
2024
£000
£000
£000
£000
2,258
1,734
1,634
873
7,308
5,604
5,424
3,166
8,780
7,271
5,987
3,735
18,346
14,609
13,045
7,774

24 Capital commitments

There were £9,481,000 capital commitments contracted for at 31 March 2025 but not provided for (2024: £nil) in relation to contracts for software systems.

73

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

25 Related party transactions

In the prior year AQA provided ACSL, a loan facility of up to £40,000,000 with drawdowns charged at 4.75% above the Bank of England base rate. At the year-end, the loan balance was £41,828,000 (2024: £33,910,000) , with a total principal amount drawn of £33,963,000. The balance owed includes interest received to the Statement of Financial Activities during the year of £3,418,000 (2024: £3,536,000) , a repayment of £3,800,000 (2024: 6,133,000) , and funding for the acquisition of North West Skills Academy Limited, trading as Construction EPA Company, of £8,300,000. The funding occurred pre year end, in advance of the acquisition which took place in April 2025. The repayment of the loan in the year was done by way of a debt to equity swap where ACSL issued shares to AQA Education. The loan is repayable on demand and secured by a fixed and floating charge against all company assets. In addition, £1,415,000 (2024: £1,369,000) was owed to AQA Education relating to other expenses paid on behalf of AQA Commercial Services.

During the year, AQA charged Doublestruck £545,000 (2024: £503,000) for royalty fees, Doublestruck charged AQA £4,000 (2024: £150,000) for loan interest and £255,000 (2024: Nil) for Product development and Licence fees. Doublestruck also paid Gift Aid of £687,000 (2024: £1,985,000) to AQA. As at the year-end, Doublestruck owed AQA £123,000 (2024: £132,000) in respect of unpaid royalties, and the balance on the loan owed to Doublestruck was Nil (2024: £825,000) .

During the year, AQA Assessment Services charged AQA £8,468,000 (2024: £22,718,000) for licence fee use of scanners and intellectual property and development fees, AQA charged AQA Assessment Services nil (2024: £1,169,000) for loan interest, and AQA charged AQA Assessment Services £16,263,000 (2024: £886,000) for recharges relating to direct costs, overheads, and management charges based on the cost sharing arrangement between the two companies. As at the year-end AQA Assessment Services owed AQA £7,306,000 (2024: £445,000) in respect of cost sharing recharges, and AQA owed AQA Assessment Services £1,203,000 (2024: £1,462,000) in respect of unpaid licence and development fees. The total loan facility available from AQA to AQA Assessment Services is £20,000,000. Interest is charged on the balance annually at 4.75% above the Royal Bank of Scotland base rate, and the balance is repayable on demand with 12 months’ notice.

AlphaPlus performed consultancy services for AQA during the year and charged £406,000 (2024: £54,000) . At the yearend Nil (2024: Nil) was owed by AQA. Alphaplus paid Gift Aid of £332,000 (2024: £386,000) to AQA during the year.

During the year, Training Qualifications UK paid Gift Aid of £3,179,000 (2024: Nil) to AQA Education and paid dividends of £nil (2024: £6,133,000) to AQA Commercial Services Limited. There were no other related party transactions to disclose with Training Qualifications UK in the reporting year and no outstanding balances.

The amounts recharged to the joint venture, Oxford International AQA Examinations Limited, in the year were £3,309,000 (2024: £2,751,000) . As at the year-end, the balance due to AQA was £302,000 (2024: £274,000) . During the year an addition of £250,000 (2024: £1,350,000) was made to the cost of investment by a 0% interest loan. Total cost of investment was £7,900,000 (2024: £7,650,000) . AQA's share of the accumulated losses of the joint venture, which exceeds the amount invested, is included within provisions for liabilities and charges on the balance sheet and is stated at cost less impairment resulting in a provision of £1,136,000 (2024: £520,000) .

Trustee and key management remuneration are disclosed in Note 10.

74

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

26 Retirement benefits

AQA Education participated in a defined benefit pension scheme, the AQA Pension Scheme, as well as two national, Teacher Pension Scheme (TPS) and University Superannuation Scheme (USS), defined benefit schemes. In accordance with section 28 of FRS 102, unfunded pension liabilities are included in the defined benefit pension schemes liability for the one principal schemes.

USS and TPS are multi-employer defined benefit schemes where it is not possible to separately identify the assets and liabilities for each participating employer. Accordingly, contributions are treated as defined contribution schemes for accounting purposes. The net balance sheet asset for the aggregation of the schemes is detailed as follows:

Total AQA employer contributions
The defined benefit pension scheme asset is made up as follows:
The AQA Pension Scheme
The defined benefit pension schemes’ liability is made up as follows:
Unfunded pension liabilities
USS		 2025
2024
£000
£000
344
735
2025
2024
£000
£000
1,198
18,977
2025
2024
£000
£000
2,019
2,360
259
237
2,278
2,597

During the year, AQA operated the AQA Pension Scheme which incorporates a defined benefit section providing benefits based on pensionable salary. The assets of the scheme were held separately from those of AQA being invested in trustee administered funds. The defined benefit section of the scheme was closed to new entrants from July 2006 and to future accruals from January 2011. The next valuation to 30 September 2024, will be completed by 31 December 2025.

The plan is administered by independent trustees, who are responsible for ensuring that the plan is sufficiently funded to meet current and future obligations. The last completed full actuarial valuation of the Pension Scheme was at 30 September 2021.

During the period, the Scheme entered into a buy-in policy with Rothesay covering the liabilities of all members within the Scheme. The income from the policy exactly matches the amount and timing of all benefits payable to those members covered under the policy. As a result, the value of the policy is equal to the value of the liabilities that the policy premium was paid to cover. The Charity has confirmed that there is no commitment to convert to buy-out in the near future, which would require the further agreement of the Pension Scheme Trustee and AQA. The transaction is therefore, in effect, a change in investment allocation, with the impact coming through as part of the actuarial gain(loss) on assets in the Consolidated statement of financial activities .

75

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

26 Retirement benefits (continued)

Unfunded pension liabilities represent the liability of unfunded pensions for former employees of AQA.

AQA continues to review its pension scheme offering and is committed to providing a high-quality, fair and consistent employee offer to all colleagues.

AQA has recognised the surplus on the AQA Pensions Scheme as the rules of the scheme mean the Pension Trustees do not have a unilateral right to trigger a wind-up, thereby allowing the scheme, to be run-off until the death of the final beneficiary, with a refund of the surplus then being available to the company.

Principal actuarial assumptions

The principal actuarial assumptions at the reporting date (expressed as a range where applicable) are:

2025 2024
% per annum % per annum
Price increases 2.80 - 3.20 2.85 – 3.25
Pension increases - in payment 2.15 – 3.00 2.15 – 3.00
Pension increases - deferred 2.56 2.88
Salary increases 3.30 3.35
Discount rate 5.65 4.80

The figures presented in these disclosures are based on the mortality assumptions adopted for the latest funding valuation with additional margins for prudence removed. For the AQA scheme the tables used are 95.1 % of S3PxA (2024: 95.1% ) (96.6% of S3PxA (2024: 96.6% )) tables for males (females); future improvements are in line with the CMI 2022 projections subject to a long term trend rate of 1.25% (2024: 1.25%)) . Example life expectancies from age 65 are: 21.7 (2024: 21.5) years for males and 24.2 (2024: 24.0) years for females, currently aged 65; and 23.0 (2024: 22.8) years for males and 25.5 (2024: 25.4) years for females, currently aged 45.

For the unfunded arrangements the same tables as the AQA liabilities are used but these are adjusted to reflect the assumed higher life expectancy of these members, specifically 95.1% (2024: 95.1%) of S3PxA for males and 96.6% (2024: 96.6%) S3PxA for females; future improvements are in line with the CMI 2022 projections subject to a long term trend rate of 1.25% (2024: 1.25%) . Example life expectancies from age 65 are: 21.7 (2024: 24.2) years for males and 24.2 (2024: 26.7) years for females, currently aged 65; and 23.0 (2024: 25.4) years for males and 25.5 (2024: 28.0) years for females, currently aged 45.

76

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

26 Retirement benefits (continued)

Statement of financial position disclosures

The amounts recognised in the statement of financial position are as follows:

Fair value of scheme
assets
Present value of
liabilities
Net pension
asset/(liability)		 Net Pension Asset
Net Pension Liabilities
Total
2025
2024
2025
2024
2025
2024
£000
£000
£000
£000
£000
£000
99,136
129,682
-
-
99,136
129,682
(97,938)
(110,705)
(2,278)
(2,597)
(100,216)
(113,302)
1,198
18,977
(2,278)
(2,597)
(1,080)
16,380

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Equities
Annuities
Bonds
Hedge Funds
Cash and other
Liquidity Fund
Total		 2025
2024
%
%
-
20.3
98.4
-
-
34.9
-
2.3
0.3
42.5
1.3
-
100.0
100.0

Consolidated statement of financial activities disclosures

Amounts recognised in the consolidated statement of financial activities before net expenditure

Current service cost
Past service cost
Scheme administration expenses
Net interest on asset
Total		 2025
2024
£000
£000
-
174
-
(1,096)
1,745
1,580
(1,188)
(1,623)
557
(965)

77

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________ 26 Retirement benefits (continued)

Actual loss on scheme assets

The actual loss on plan assets was:

Interest income
Loss on plan assets excluding interest income
Actual loss on scheme assets
Changes in the present value of the defined benefit obligations
Opening defined benefit obligations
Current service cost
Past service cost
Interest cost
Contributions by members
Actuarial gains
Benefits paid
Closing defined benefit obligations
Changes in the fair value of the scheme assets
Opening fair value of scheme assets
(Loss) on scheme assets excluding interest income
Interest income
Contributions by members
Contributions by employer
Scheme administration expenses
Benefits paid
Closing fair value of scheme assets		 2025
2024
£000
£000
6,051
6,429
(29,630)
(10,945)
(23,579)
(4,516)
2025
2024
£000
£000
113,302
114,822
-
174
-
(1,096)
4,863
4,807
-
77
(12,382)
(1,123)
(5,567)
(4,359)
100,216
113,302
2025
2024
£000
£000
129,682
139,325
(29,630)
(10,945)
6,051
6,429
-
77
344
735
(1,744)
(1,580)
(5,567)
(4,359)
99,136
129,682

The sum of actuarial gains on scheme liabilities £12,382,000 (2024: £1,123,000) and loss on scheme assets excluding interest income was £29,630,000 (2024: £10,945,000) agrees back to the actuarial loss on defined benefit pension scheme in the consolidated Statement of Financial Activities £17,248,000 (2024: £9,822,000 loss) . The reduction in employer contributions is attributable to the cessation of participation in an additional pension scheme during the prior reporting period

78

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

26 Retirement Benefits (continued)

Multi-employer defined benefit schemes

AQA participated in two (2024: two) multi-employer defined benefit schemes where it is not possible to separately identify the assets and liabilities for each participating employer. Accordingly, under section 28 of FRS 102, the schemes were treated as defined contribution scheme for accounting purposes.

Teachers’ Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers employed by AQA. TPS is an unfunded multi-employer pension scheme where it is not possible to identify AQA’s share of the scheme’s assets and liabilities. Accordingly, under Section 28 of FRS 102, AQA has accounted for its contributions to the scheme as if it were a defined contribution scheme. Below is set out the information available on the scheme.

TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation and subsequent consultation are:

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. The next valuation result has been implemented from 1 April 2024.

Other defined benefit pension schemes

The University Superannuation Scheme (USS), which is the main scheme covering most academic and academicrelated staff. The Scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contributions benefits. The assets of the scheme are held in a separate trustee-administered fund. USS is a multiemployer scheme and is accounted for as set out in the accounting policies. The total amount charged to the Consolidated Statement of Financial Activities was £23,000 gain (2024: £147,000 cost) . Deficit recovery contributions due within one year are £nil (2024: £nil) . Future service contribution rates set at 14.5% (2024: 14.5%) of pensionable salary. The latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme is at 31 March 2023 (“the valuation date”), which was carried out using the projected unit method. Since the institution cannot identify its share of USS Income Builder (defined benefit) assets and liabilities, the disclosures reflect those relevant for those assets and liabilities as a whole. The liability figures have been produced using the following assumptions: discount rate 5.65% (2024: 3.8%) and pensionable salary growth CPI +0.5%.

79

AQA Education Notes to the Financial Statements for the year ended 31 March 2025

___________

26 Retirement Benefits (continued)

Defined contribution schemes

During the year, the total amount charged to the consolidated statement of financial activities in relation to defined contribution schemes (including the defined benefit schemes accounted for as defined contribution schemes under section 28 of FRS 102) amounted to £7,977,000 (2024: £7,794,000) . The amount charged includes contributions to the AQA defined contribution scheme. Contributions payable to the schemes at the year-end was £nil (2024: £nil) .

27 Events after the reporting date

On 01 April 2025, AQA Commercial Services acquired 100% of the share capital of North West Skills Academy Limited, registered company number 08607591 (England and Wales) trading as Construction EPA Company, for a purchase price of £8,201,085. North West Skills Academy limited is a construction end point assessment (EPA) organisation providing high-quality assessments for construction apprenticeships. Bringing North West Skills Academy into the AQA Group provides immediate entry into a growing and vital Vocational Technical Qualification market segment, building on our strategy to diversify and grow. It also helps realise our charitable purpose by extending our contribution into vocational education and creates an opportunity for widening the impact we have on learners, our economy and our society.

In May 2025, a subsidiary of the Charity, AC3 Solutions, company number 08453864 (England and Wales) and a subsidiary of AQA Commercial Services Limited, Blutick Limited, company number 11318113 (England and Wales) were both officially dissolved. There is no financial impact arising from these transactions, as the trade and assets of AC3 Solutions were transferred to AQA Education and the trade and assets of Blutick were transferred to Doublestruck, a wholly owned subsidiary of AQA Commercial Services, via hive-up arrangements completed on 31 March 2024.

FRS 102 requires, for non-adjusting events, disclosure of the nature of the event, and either an estimate of its financial effect or a statement that such an estimate cannot be made.

28 Exemption from audit by parent guarantee

Audit exemptions have been applied under s479A-479C of the Companies Act 2006 by the provision of parent guarantee by AQA, ultimate parent company to GradeMaker (company number: 08936673) and North West Skills Academy Limited (company number: 08607591).

29 Prior period adjustment – restatement of statement of financial position

In the 2024 statement of financial position and statement of cash flows, the bank account relating to the designated pension fund, was included in cash at bank and in hand in error. This has been restated to be included in current investments.

The change has increased current investments by £6,386,000 to £63,048,000 for both the Group and the Charity and reduced cash at bank and in hand by the same amount to £89,170,000 for the Group and to £82,140,000 for the Charity. The Group’s cash at bank and in hand at the beginning of the year ended 31 March 2024, i.e. as at 1 April 2023, shown in the consolidated statement of cash flows has been reduced by £6,244,000 to £48,968,000 and the net cash used in investing activities has been increased by £142,000, with the increase in cash and cash equivalents in the prior year reduced by the same amount to £39,776,000.

80

Legal and administrative details

Registered office

AQA Education Devas Street Manchester M15 6EX Tel: 0800 197 7162 www.aqa.org.uk Registered company number: 03644723 (England and Wales) Registered charity number: 1073334 (England and Wales)

Bankers, investment advisers and auditors

Bankers

NatWest Bank 250 Bishopsgate London EC2M 4AA

Independent Investment Advisors

Cazenove Capital Management 1 London Wall Place London EC2Y 5AU

Independent External Auditors

BDO LLP Eden Building Irwell Street Salford Manchester M3 5EN

Internal Auditors

Deloitte LLP 1 New St Square London EC4A 3HQ

81