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2020-08-31-accounts

Registered number: 04117784 Charity number: 1086947

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 10
Independent auditor's report on the financial statements 11 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 30

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020

Trustees J P Yarham,Chair(until 30 April 2020) (resigned 30 April 2020)
Skills and Education Group
E M Hartley (resigned 30 July2020)
J B Lanning
G Clipson MBE,Chair(from 30 April 2020)
A M Traynor
D Whitemore(resigned 13 September 2019)
S E Powell(appointed 12 January2021)
Company registered
number
04117784
Charity registered number
1086947
Registered office
Robins Wood House
Robins Wood Road
Aspley
Nottingham
NG8 3NH
Company secretary
S N Feneley-Lamb
Chief executive officer
P A Eeles
Independent auditor
BHP LLP
2 Rutland Park
Sheffield
South Yorkshire
S10 2PD
Bankers
Natwest
536 Valley Road
Nottingham
NG5 1FL
Solicitors
Browne Jacobson LLP
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ

Page 1

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees (who are also Directors for the purpose of company law) present their annual report together with the audited financial statements of the Charity for the 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (published in October 2019).

Since the charity qualifies as small under section 382 of the Companies Act, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

The Charity provides a range of service in furtherance of its charitable objective to support “the advancement of skills and education to improve the lives of individuals”. These services include:

The Charity’s strategic aims adopted in support of these objectives are identified by an annual strategic planning process culminating in a five-year strategic plan agreed and monitored by the Board of Trustees and revised as necessary.

Trustees agree Key Performance Indicators (KPIs) with the Executive Team, monitoring and measuring performance against these:

Achievements and performance delivering public benefit

a. Main achievements of the Charity

The first half of 2019/20 performed strongly with activity and income performing above budget expectations. The opportunity to acquire another awarding organisation presented itself at the start of the year and good progress was made with assessing the opportunity, the benefit that this may have to charity and its wider membership and beneficiaries. Progress was also made with financial and legal due diligence.

Page 2

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance delivering public benefit (continued)

The Covid-19 pandemic and the introduction of nationwide restrictions in March 2020 changed the operational management of the charity. All staff successfully moved to homeworking and were quickly set-up with IT and telephone hardware/systems enabling them to adopt a “business as usual” approach. However, as the extent of the restriction measures and the likely duration of these became clearer, the decision was taken to access support from the Coronavirus Job Retention Scheme (CJRS) and 70% of staff were placed on furlough. The remaining staff base formed a “core team” and took responsibility for the on-going management of the charity, its services and products. Staff members were brought out of furlough on a gradual basis and according to the growing needs of the charity. All staff had returned to work, on at least a flexible basis, by 1 September 2020.

CJRS was accessed as a way to help preserve the charity and its staff. Although some restructuring took place in the summer of 2020 resulting in a small number of redundancies, the charity emerged from the first lockdown in a good financial position and with the certainty of long future. End-of-year financial performance, which had been reforecast at the start of the March 2020 lockdown, exceeded expectations. The charity took the proactive approach of “learning from lockdown” by examining what worked well, what did not work as well and what working practices could be changed to adapt the new environment post-Covid 19.

Key achievements and performance across the different services and activities are identified below:

Awarding Services

As an End-point Assessment Organisation (EPAO), the Charity continues to develop a wide-range of Fashion and Textiles standards which will be used to assess apprentices at the end of their apprenticeship.

Development of a new suite of level 1 qualifications has begun which will include eLearning to enable learners with few or no appropriate qualifications to gain the confidence, skills and knowledge needed for progression on to higher level qualifications or provide an additionality for existing study programmes. This development supports the Charity’s aim for “the advancement of skills and education to improve the lives of individuals” by developing a range of qualifications designed to support progression and social mobility.

Other developments during the year included qualifications to support the motor industry (air conditioning), manufacturing (welding and fabrication), youth and community (youth work) and animal care.

A number of animal care qualifications gained endorsement through a membership body and an agreement was secured to endorse the Charity's Welding and Fabrication qualifications by Lincoln Electric. This provides the assurance that the qualifications are both applicable and necessary for employers and learners.

Trustees have agreed, as part of the strategic planning process, to invest in the development of the qualifications to ensure that this continue to be fit-for-purpose and meet the needs of employers, centres/providers and learners. New qualification development will align to current and emerging economic and social needs. For example, work has begun on developing 7 new Level 1 qualifications to provide enrichment to learners on study programmes. Initial discussions have taken place with the GLAA (Gangmasters and Labour Abuse Authority) to develop a new Level 1 workers’ rights qualification through a pilot funded by the Home Office. A new suite of Level 1 and Level 2 electric vehicle qualifications will be developed to help support the automotive sector with the government’s agenda to phase out the sale of new petrol and diesel cars by 2030.

Taking these examples forward, the Skills and Education Group will continue to identify and respond to emerging needs through the development of products, support and services.

Page 3

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Achievements and performance delivering public benefit (continued)

Membership and Communications

The Business Development team played a key role in supporting customers and strengthening relationships during the lockdown period. The team also underwent a restructure, as part of a series of changes across the Group in Summer 2020.

Websites and external, customer facing platforms were continually reviewed. The ABC Awards and Certa Awards websites were combined into one, additional updates were also made to the main Group website.

Operations and Project Activities

A focus of the Directorate was on supporting the move to home working and on ensure that the infrastructure and resources were in place. This move was successful; staff have been able to access all applications, folders and files and have been able to keep in contact with each other and customers though the Voice Over Internet Protocol (VOIP) telephone system. MS Teams and Zoom were increasingly used for meetings, both internal and with customers, and to support professional development and information webinars. Board of Trustees meetings, by agreement, also successful moved to the Zoom platform.

The Qualification Licence Scheme which endorses the quality of non-regulated professional development courses was rebranded during the year and new descriptors introduces for courses endorsed by the scheme. A new website was introduced for the Quality Licence Scheme to reflect the new branding.

b. Fundraising standards information

The charity does not carry out any significant fundraising activities.

Financial review

a. Going concern

Trustees have worked closely with the Executive Leadership Team to develop strategic and operational plans that not only mitigate the impact of Covid-19 but also supported the sustained growth of the Group and its subsidiary charities. Such plans included the development of new products and services as well as the potential for acquisition where this complemented the charitable objectives of the Charity and ensured long-term financial growth and viability.

The opportunity to acquire BIIAB Qualifications Limited (BIIAB) presented itself at the start of the financial year. Trustees confirmed their support for progressing the opportunity to the financial and legal due diligence stage before making any final decision on whether to proceed with the purchase or not. The Covid-19 pandemic had an impact on the initial purchase timeline, but a benefit of this was that time could be taken to more fully understand the business to be acquired and how this may be affected by Covid-19 in the short, medium and long-term. Recognising that the BIIAB business (and the sector it provided services to) was only likely to be impacted on in the short term, Trustees agreed that there were medium to long-term benefits to the Group.

In agreeing the purchase, Trustees were keen to protect the financial health of the Group and its subsidiary charities. A purchase agreement was, therefore, put into place providing a model supporting a) minimal cash payment on the date of purchase; and, b) staged purchase payments linked to profitability over a five-year period. As part of going concern considerations, Trustees noted that this model ensured that:

Page 4

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial review (continued)

Trustees have also looked at “going concern” in the context of Covid-19, the impact of this and the ways which any impact can be mitigated. Trustees remain confident that the Charity has the resilience to adapt and develop its strategic and operational business plans to meet the needs of its beneficiaries and to find new ways of working.

This confidence is based on:

Based on this work, trustees have a continuing reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Consequently, the trustees continue to adopt the going concern basis of accounts in preparing the financial statements. Further details on the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific purpose should be maintained at a level necessary to provide a contingency to support day-to-day business activities in the event of reduced income and provide a strategic fund to develop and grow the Charity. Trustees also wish to build reserves to fulfil a Group-wide objective to support social mobility.

In line with best practice guidance, Trustees review the reserves policy each year and confirm that this level of reserve has been maintained.

Page 5

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial review (continued)

Unrestricted funds at the end of the year were £1,371,955 (2019: £1,264,905) and free reserves at the end of the year are £1,319,089, which is in line with the reserves policy. The reserves policy is set at group level and more details on the policy are available in the Skills and Education Group accounts.

c. Financial performance and position

The Charity remains in a financially healthy position and continues to meets its agreed financial targets. The Charity achieved a surplus of £107,050 (2019: £117,474).

Total income was £1,630,318 (2019: £1,926,537). Although below the budget target income for Awards products and services, income is above the reforecast position agreed in March 2020 which took into the account the likely impact of Covid-19.

Expenditure was £1,523,268 (2019: £1,809,063). The charity benefited from CJRS grants which protected jobs across the Group and helped support the charity through the early months of the pandemic. Salaries and associated costs remain the primary cost to the Charity.

Net assets at the year end are £1,371,955 (2019: £1,264,905). All funds are unrestricted.

d. Risk management

Trustees remain aware of the educational and political environment in which the Charity operates and recognise, in particular, the challenges facing providers in the further education sector.

Key risks to the Charity are:

Trustees are satisfied that the systems and review process are in place to mitigate and manage the risks. Strategic risks are managed and monitored through risk registers; one for each of the charities within the charitable group. Risk registers are reviewed and updated by the Executive Leadership Team on a quarterly basis prior to a review by Trustees.

Risk registers are rated on a weighted likelihood and impact scale based on Charity Commission guidance.

A Covid 19 Risk Assessment was carried out in August 2020 prior to the office fully re-opening for all staff after the first national lockdown. The Risk Assessment identifies the control measures and actions need to ensure compliance with restriction measures and to ensure a safe working environment. The Risk Assessment is reviewed on a monthly basis and/or when there are changes to the restrictions put into place by the Government.

Page 6

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management

a. Constitution

~~The organisation is a charitable company limited by guarantee, incorporated on 30 November 2000.~~

The company was set-up under a Memorandum of Association which established the objectives and powers of the charitable company and is governed under its Articles of Association. The Articles were most recently revised in October 2018 and reflect current structural and governance requirements.

Skills and Education Group Awards is a controlled charity within the wider Skills and Education Group which includes:

On the 1 March 2021, the Skills and Education Group acquired BIIAB Qualifications Limited (BIIAB). The Skills and Education Group is the parent company of BIIAB:

b. Methods of appointment or election of Trustees

There were three changes to the Board of Trustees during the year:

J P Yarham (resigned 30 April 2020) E M Hartley (resigned 30 July 2020) S E Powell (appointed 12 January 2021)

Newly appointed trustees were recruited in accordance with the Articles of Association adopted 16 October 2018 under Article 27:

“directors (trustees) shall be appointed or removed by the majority of members (from time to time) by service of written notice at the registered office of the association”.

All newly appointed trustees complete a skills audit to ensure a balance of skills, knowledge and experiences to support the development of the charity. Trustee recruitment reflects on-going and future skills and knowledge needs.

Page 7

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management (continued)

c. Policies adopted for the induction and training of Trustees

Newly appointed trustees receive an induction under the direction of the Chief Executive. This normally includes an introductory visit to Robins Wood House when the opportunity to meet with key staff to gain a detailed understanding of the Charity and the subsidiaries within this. In the last year, inductions have been online.

Trustees complete a declaration of interest record on appointment. Declarations are noted on Register which is reviewed and updated on an annual basis.

d. Organisational structure and decision-making policies

The Board of Trustees meets four times a year. Trustees:

The Chairs and CEO Group, established in 2018, was extended in 2019/20 to include the Chief Operating Office and then, on appointment 1 September 2020, the Director of Member Services and Communications and the Director of Awarding Services. The “chairs” membership is:

The group has been renamed the Chairs and Executive Leadership Group and enable the Chairs to have a collective and strategic oversight of the Charity. The group meets prior to quarterly Board of Trustees meetings and provides a structure for the Chairs of the Charity to meet with the CEO. The Chairs and CEO Group reviews and monitors:

During 2019/20 a focus of the Chairs and Executive Leadership Group was on the acquisition of BIIAB Qualifications Limited. The Group also met to monitor and mitigate the impact of the Covid-19 pandemic on the Charity.

Financial advice and support is provided by a Trustee who is a financial controller at a large General College of Further Education.

Day-to-day management of the Charity is delegated to the CEO, Paul Eeles who is supported by:

Page 8

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Structure, governance and management (continued)

The Executive Leadership Team meet twice a month, with the first meeting of each month focused on financial performance. Other discussion items include:

e. Pay policy for key management personnel

Remuneration for the Chief Executive is determined by the Chairs of the Skills and Education Group and subsidiary charities. The Chief Executive determines the remuneration for all staff, including the Executive Leadership Team.

Annual cost of living pay awards for all other staff are subject to recommendation to and approval of the Board of Trustees.

Plans for future periods

Trustees approved strategic and business plans that were intended to support a year of development (2020/21) leading to the introduction of new products, support and services. The plans reflect the continuing impact of Covid 19 and associated restrictions that affect that way in which the charity can operate.

There are strategic objectives for 2020/21 are designed to take the charity forward while continuing to support the charitable objective “the advancement of skills and education to improve the lives of individuals”:

In 2019/20, the Skills and Education Group were presented with the opportunity to acquire BIIAB Qualifications Limited (BIIAB). A long-standing part of the British Institute of Innkeeping, BIIAB joined the Skills and Education Group on 1 March 2021. As part of the Group, BIIAB will retain its identity and focus on being the awarding body of choice for the hospitality industry, which employs over 3 million individuals.

In keeping with its drive to achieve educational, economic, and social advancement for all, the Skills and Education Group will collaborate with the British Institute of Innkeeping (BII) to continue to raise industry standards and champion the

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Plans for future periods (continued)

talented individuals working in hospitality-licensed trades. BIIAB will retain its services in qualifications and apprenticeships that are available to BII members. The acquisition further strengthens the Skills and Education Group’s position in the marketplace and will build its diverse product portfolio to continue to meet local, national, and international skills needs.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. 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 Charity and of its incoming resources and application of resources, including its income and expenditure, 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 Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

In so far as the Trustees are aware:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies' exemption.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Gillian Clipson (Apr 28, 2021 12:38 GMT+1)

G Clipson MBE (Chair of Trustees) Date: Apr 28, 2021

Page 10

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS

Opinion

We have audited the financial statements of Skills and Education Group Awards (the 'charitable company') for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the cash flow statement and the related notes, 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED)

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

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

Page 12

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (May 7, 2021 11:13 GMT+1)

Jane Marshall (Senior Statutory Auditor) for and on behalf of

BHP LLP

2 Rutland Park Sheffield South Yorkshire S10 2PD

Date: May 7, 2021

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2020

Note
Income from:
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
1,624,647
3,091
2,580
1,630,318
1,523,268
1,523,268
107,050
1,264,905
107,050
1,371,955		 Total
funds
2020
£
1,624,647
3,091
2,580
1,630,318
1,523,268
1,523,268
107,050
1,264,905
107,050
1,371,955		 Total
funds
2019
£
1,908,081
3,176
15,280
1,926,537
1,809,063
1,809,063
117,474
1,147,431
117,474
1,264,905

The Statement of financial activities includes all gains and losses recognised in the year.

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SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee) REGISTERED NUMBER: 04117784

BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Intangible assets
11
Tangible assets
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Unrestricted funds
16
Total funds		 24,180
133,445
1,226,258
1,383,883
(64,794)		 2020
£
34,447
18,419
52,866
1,319,089
1,371,955
1,371,955
1,371,955
1,371,955		 10,706
175,989
1,230,867
1,417,562
(200,683)		 2019
£
48,026
-
48,026
1,216,879
1,264,905
1,264,905
1,264,905
1,264,905

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Gillian Clipson (Apr 28, 2021 12:38 GMT+1) G Clipson MBE (Chair of Trustees) Date: Apr 28, 2021

The notes on pages 17 to 30 form part of these financial statements.

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SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

Note
Cash flows from operating activities
Net cash generated by operating activities
18
Cash flows from investing activities
Interest income
Purchase of intangible assets
Purchase of tangible fixed assets
Net cash used in investing activities
Change 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
19		 2020
£
11,802
3,091
-
(19,502)
(16,411)
(4,609)
1,230,867
1,226,258		 2019
£
115,825
3,522
(20,530)
-
(17,008)
98,817
1,132,050
1,230,867

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1. General information

The Charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. It's aim is the advancement of the education and training of young people and adults primarily through the provision of nationally recognised qualifications.

2. Accounting policies

2.1 Basis of preparation of financial statements

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

Skills and Education Group Awards meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements have been prepared in £ sterling which is the functional currency of the charity, rounded to the nearest £1.

2.2 Going concern

Trustees have looked at going concern impact of Covid-19 and the ways which any impact can be mitigated. Trustees remain confident that the Charity has the resilience to adapt and develop its strategic and operational business plans to meet the needs of its beneficiaries and to find new ways of working.

This confidence is based on:

Based on this work, trustees have a continuing reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Consequently, the trustees continue to adopt the going concern basis of accounts in preparing the financial statements.

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.6 Intangible assets and amortisation

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

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(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.6 Intangible assets and amortisation (continued)

Website

2.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

2.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation.

Page 19

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

2. Accounting policies (continued)

2.12 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

Estimates and judgments 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.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. There are no 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.

4. Income from charitable activities

Accredited
Non-Accredited
Total 2019		 Unrestricted
funds
2020
£
1,420,205
204,442
1,624,647
1,908,081		 Total
funds
2020
£
1,420,205
204,442
1,624,647
1,908,081		 Total
unrestricted
funds
2019
£
1,719,925
188,156
1,908,081

Income within this classification represent course and licensing fees and assessment income.

Page 20

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

5. Investment income

Interest receivable
Total 2019
6.
Other incoming resources
Admin fees and other income
Total 2019
7.
Analysis of expenditure on charitable activities
Accredited
Non-Accredited
Total 2019		 Unrestricted
funds
2020
£
3,091
3,176
Unrestricted
funds
2020
£
2,580
15,280
Unrestricted
funds
2020
£
1,322,192
201,076
1,523,268
1,809,063		 Total
funds
2020
£
3,091
3,176
Total
funds
2020
£
2,580
15,280
Total
funds
2020
£
1,322,192
201,076
1,523,268
1,809,063		 Total
funds
2019
£
3,176
Total
funds
2019
£
15,280
Total
funds
2019
£
1,462,176
346,887
1,809,063

Page 21

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Analysis of expenditure by activities

Accredited
Non-Accredited
Total 2020
Total 2019
Analysis of direct costs		 Activities
undertaken
directly
2020
£
387,534
65,140
452,674
470,466		 Support costs
2020
£
934,658
135,936
1,070,594
1,338,597		 Total
funds
2020
£
1,322,192
201,076
1,523,268
1,809,063		 Total
funds
2019
£
1,462,176
346,887
1,809,063
Staff costs
Moderator costs
Centre approval costs
Certificates
QLS audit
Centre audit
Bad debt expense
Total 2019		 Accredited
2020
£
240,268
90,779
5,627
38,753
-
12,107
-
387,534
378,484		 Non-
Accredited
2020
£
34,587
-
-
-
11,928
-
18,625
65,140
91,982		 Total
funds
2020
£
274,855
90,779
5,627
38,753
11,928
12,107
18,625
452,674
470,466		 Total
funds
2019
£
274,855
140,350
2,819
17,811
21,617
13,014
-
470,466

Page 22

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Business stationery
Marketing and business development
Legal, professional and insurance
Travel, subsistence and conference costs
Bank charges
Development costs
Commission
Sundry expenses
Parent supplied recharge
IT expenses
Irrecoverable VAT
Donations
Audit fees
Total 2019		 Accredited
2020
£
711,794
12,817
90
2,310
9,596
28,367
1,316
9,573
-
16,716
65,724
37,003
24,746
6,346
8,260
934,658
1,083,692		 Non-
Accredited
2020
£
102,463
1,845
13
333
1,381
4,083
190
1,378
-
2,405
12,042
5,327
3,562
914
-
135,936
254,905		 Total
funds
2020
£
814,257
14,662
103
2,643
10,977
32,450
1,506
10,951
-
19,121
77,766
42,330
28,308
7,260
8,260
1,070,594
1,338,597		 Total
funds
2019
£
796,327
13,903
2,455
11,050
4,520
42,660
2,149
21,506
387
17,562
326,088
42,795
33,924
17,025
6,246
1,338,597

Support costs have been allocated on the basis of the income split between accredited and non-accredited.

Page 23

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

9. Staff costs

The below staff costs were recharged from the parent charity:

Wages and salaries
Social security costs
Pension costs		 2020
£
918,946
87,115
83,051
1,089,112		 2019
£
899,300
86,051
85,832
1,071,183

The above costs represent staff, including key management personnel, working on behalf of the charity, but paid through the parent controlling organisation. These costs represent a mixture of direct and support costs which are analysed separately within the relevant notes.

The charity did not directly employ any members of staff in the current or comparative year and therefore no employee received remuneration amounting to more than £60,000 in either year.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019: £nil).

During the year ended 31 August 2020, travel expenses totalling £331 were reimbursed or paid directly to 3 Trustees (2019 - £302 to 3 trustees).

Page 24

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

11.
Intangible assets
Cost
At 1 September 2019
At 31 August 2020
Amortisation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Website
£
93,195
93,195
45,169
13,579
58,748
34,447
48,026

Page 25

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

12. Tangible fixed assets

Cost or valuation
At 1 September 2019
Additions
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
13.
Stocks
Finished goods and goods for resale		 Computer
equipment
£
10,331
19,502
29,833
10,331
1,083
11,414
18,419
-		 Marketing
equipment
£
4,644
-
4,644
4,644
-
4,644
-
-
2020
£
24,180		 Total
£
14,975
19,502
34,477
14,975
1,083
16,058
18,419
-
2019
£
10,706

Page 26

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

14. Debtors

Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income
Creditors: Amounts falling due within one year
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 September 2019
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 August 2020		 2020
£
99,029
2,214
1,172
31,030
133,445
2020
£
27,497
1,034
1,601
159
34,503
64,794
2020
£
23,042
25,375
(23,042)
25,375		 2019
£
94,423
36,837
999
43,730
175,989
2019
£
26,181
107,012
2,195
680
64,615
200,683
2019
£
55,402
23,042
(55,402)
23,042

15. Creditors: Amounts falling due within one year

Deferred income represents monies received in advance for learner registrations on accredited and non-accredited courses.

Page 27

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

16.
Statement of funds
Statement of funds - current year
Balance at 1
September
2019
£
Unrestricted funds
General funds
1,264,905
Statement of funds - prior year
Balance at
1 September
2018
£
Unrestricted funds
General funds
1,147,431
17.
Analysis of net assets between funds
Analysis of net assets between funds - current period
Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Income
£
1,630,318
Income
£
1,926,537		 Expenditure
£
(1,523,268)
Expenditure
£
(1,809,063)
Unrestricted
funds
2020
£
18,419
34,447
1,383,883
(64,794)
1,371,955		 Balance at 31
August 2020
£
1,371,955
Balance at
31 August
2019
£
1,264,905
Total
funds
2020
£
18,419
34,447
1,383,883
(64,794)
1,371,955

Page 28

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

17. Analysis of net assets between funds (continued) Analysis of net assets between funds - prior period

Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2019
£
48,026
1,417,562
(200,683)
1,264,905		 Total
funds
2019
£
48,026
1,417,562
(200,683)
1,264,905

18. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the period (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Interest income
(Decrease) in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash provided by operating activities
19.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2020
£
107,050
1,083
13,579
(3,091)
(13,474)
42,544
(135,889)
11,802
2020
£
1,226,258
1,226,258		 2019
£
117,474
-
13,903
(3,522)
(10,706)
(86,885)
85,561
115,825
2019
£
1,230,867
1,230,867

Page 29

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

20. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2019
£
1,230,867
1,230,867		 Cash flows
£
(4,609)
(4,609)		 At 31 August
2020
£
1,226,258
1,226,258

21. Related party transactions

During the year the charity was recharged wages and other costs from its parent Skills and Education Group, totalling £872,359 (2019: £2,079,852), and made payments to its parent totalling £1,166,878 (2019: £2,009,671). At the year end an amount of £1,034 (2019: £107,012) was owed to Skills and Education Group.

Skills and Education Group Access, a subsidiary of the parent company Skills and Education Group, was recharged costs of £20,764 (2019: £32,022) and payments were made to this charity of £55,387 (2019: £4,815). At the year end a balance of £2,214 (2019: £36,837) was owed by Skills and Education Group Access to the charity.

22. Controlling party

The charity is managed and controlled by its immediate and ultimate parent Skills and Education Group, which is a registered charity (number 1004087) and a company limited by guarantee incorporated in England and Wales (company number 02640936).

The most senior parent entity producing publicly available consolidated financial statements is Skills and Education Group. These financial statements are available upon request from Skills and Education Group, Robins Wood House, Robins Wood Road, Aspley, Nottingham, Nottinghamshire, NG8 3NH.

Page 30