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2021-08-31-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 2021

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 - 11
Independent auditor's report on the financial statements 12 - 15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 34

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

Trustees Skills and Education Group
J B Lanning (resigned 5 July2021)
G Clipson MBE,Chair
A M Traynor
S E Powell(appointed 12 January2021)
P J Beach(appointed 20 April 2021,resigned 22 October 2021)
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 2021

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 year 1 September 2020 to 31 August 2021. 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 strategic and business objectives of the Charity support those of the wider Group-structure but maintain a focus on its own objectives. Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake. The Charity’s objectives, supporting growth and long-term sustainability, are identified as part of an annual strategic planning process that Trustees and staff contribute to.

The resulting rolling five-year strategic plan is then agreed and monitored by Trustees.

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 2020/21 year saw a strong recovery following the uncertainties of the previous year which was more significantly affected by Covid-19. The recovery demonstrates the resilience of the Charity in meeting and adapting to a changing regulatory, social and economic environment. It also demonstrates the resilience of the providers that the Charity works

Page 2

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance delivering public benefit (continued)

with and the support that is given by both the Charity and providers to learners.

The Charity developed and launched a total of thirty new qualifications in 2020/21, which included a suite of Level 1 qualifications with eLearning, and the new Transport Manager qualifications for Road Haulage and Passenger Transport. A Level 3 road haulage qualification went on to become the top performing qualification (by income) for the year ending 2021.

A total of 108 qualifications were reviewed between 1 September 2020 and 31 August 2021. This included many of the reviews planned for 2021/22; these were bought forward to allow the product development team the space and time to focus on the review of the BIIAB (a sister company) qualification portfolio in 2021/22.

There were 23,513 registrations against fourteen occupational sectors. Registrations were highest for engineering and manufacturing occupations (37% of all registrations). Other strong performing sectors were Skills for Life, Learning, Employment and Progression (23%) and counselling and therapy (16%).

The Charity has continued to submit applications for approval to deliver additional end-point assessments throughout 2020/21. As a result, it was approved to offer twelve Apprenticeship Standards across three sectors. The Charity was the first (and currently only) end-point assessment organisation (EPAO) to be approved for the new Level 3 Youth Support Worker Apprenticeship Standard.

Development work was carried out during the year on a new awarding management platform prior to a go-live date of autumn 2022. The new platform will be used for awarding management across all aspects of the Charity and by other subsidiaries in the Group. It provides comprehensive regulatory compliance and an improved customer interface. The platform also has defined governance and risk management modules that will support the work of the Trustees and their responsibilities.

All staff had returned to work from furlough, on at least a flexible basis, by 1 September 2020 and on a full-time basis by October 2020.

Being part of a group structure, the Charity benefits from cross-group services that are delivered through the Member Services and Communications and Operations Directorates.

Member Services and Communications

The Membership and Communications team reported an increase in engagement with Centres during the year, reflecting the recovery from the impact of Covid-19 in 2019/20 and the resilience of both the Charity and its beneficiaries.

The team provided regular briefings and updates to Centres and held drop-in sessions for customers, providing information, advice and guidance. The business development team were restructured, changing the emphasis of the role to relationship management. Relationship managers moved to operating on a regional basis and have a portfolio of customers spanning across the Group., providing a central point of contact for all group-side services. The team are also building with key regional stakeholders, intelligence from which is used to support product development, strategic and business planning.

Operations

The Operations team provided finance, IT and HR functions, data protection and the management of premises and health and safety, particularly in the context of Covid-19. Governance and risk management is the responsibility of the Chief Operating Officer who heads up this team.

Page 3

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance delivering public benefit (continued)

There was a staged re-opening of Charity premises with, in some instance, a move to permanent home working for some staff. For other staff, whose role permits it, flexible working patterns that supported a mix of home and office-based work was introduced. A Covid-19 Risk Assessment was developed in advance of staff returning and updated/maintained to reflect new and emerging guidance. The development of this was supported by a group of staff from different teams and entities within the Group. Health and safety equipment and resources have been purchased to help mitigate the risk of Covid-19 in the workplace.

The “lockdown” period tested the ability of the Charity to work remotely whilst continuing to support customers and maintain business functions. This was, generally, very successful but raised questions about the longer term need to sustain remote working and provide professional online support for customers. It became clear that there is far wider acceptance of online professional development and an increasing willingness to participate in virtual meetings and events. As it was felt that this way of working was likely to continue post-pandemic, IT hardware and other resources needed to support remote working and the growth objectives of the Charity were identified. Investment was made into audio visual equipment supporting virtual and hybrid meetings (a mix of virtual participants and face-to-face).

b. Fundraising standards information

The charity does not carry out any significant fundraising activities.

Financial review

a. Going concern

Trustees 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, and the identification of resources needed to support current and future planned developments. The acquisition of BIIAB Qualifications Limited (BIIAB), which presented itself at the start of the previous financial year, was completed in February 2021. This followed detailed financial and legal due diligence. 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. The acquisition of BIIAB significantly extended the portfolio of services offered across the Group, increasing the number of customers and access to market. Trustees are confident that BIIAB will make a positive contribution to the on-going financial growth of the Skills and Education Group.

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 continuing 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.

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.

Page 4

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 Groupwide 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.

It is the Charity’s policy to work to building and maintaining reserves to:

Unrestricted funds at the end of the year were £1,670,574 (2020: £1,371,955) and free reserves at the end of the year are £1,562,116 (2020 £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 meet its agreed financial targets. The Charity achieved a surplus of £298,619 (2020: £107,050).

Total income was £1,881,515 (2020: £1,630,318). Expenditure was £1,582,896 (2020: £1,523,268). Salaries and associated costs remain the primary cost to the Charity.

Net assets at the year-end are £1,670,574 (2020: £1,371,955). All funds are unrestricted.

Page 5

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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 processes 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.

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:

Page 6

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

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

J B Lanning (resigned 5 July 2021) P J Beach (appointed 20 April 2021) (resigned 22 October 2021) 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.

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.

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

Page 7

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

d. Organisational structure and decision-making policies

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

A Chairs and ELT Group meets four times a year and enables the Chairs to have a collective and strategic oversight of the Charity. The Chairs of the Charity, Skills and Education Group, Skills and Education Access and BIIAB Qualifications Limited are members of this Group.

The group meets prior to quarterly Board of Trustees meetings and provides a structure for the Chairs to review and monitor:

The Charity Chair is a Trustee of the Skills and Education Group, an appointment made under article 21 of the Skills and Education Group Articles.

Day-to-day management of the Charity is delegated to the Group Chief Executive Officer, Paul Eeles, who is supported by:

The CEO, COO and two Directors form the Executive Leadership Team. The COO is the Company Secretary for the purpose of Company Law.

The Executive Leadership Team meets on a weekly basis with one meeting a month having a focus on financial performance. Other discussion items include:

At the end of 2021, a senior management team (SMT) consisting of Heads of Service was created. This reflects the size and diverse nature of the Group of charities/companies. The SMT meet monthly and inform the development and implementation of day-to-day business/operational plans and longer-term strategic plans.

Page 8

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management (continued)

In addition, a Scrutiny Group meets once a month to formally review regulatory needs across all awarding functions and other regulatory requirements including those relating to the Information Commissioners Officer (ICO), Companies House and the Charity Commission. Scrutiny Group membership is the ELT, Deputy Director of Awarding/Responsible Officer, Head of Access, Head of Compliance and Regulation and the Head of Quality.

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 supported the development and adoption of “Ambition 2025”, challenging assumptions and using their skills and knowledge to define objectives and associated targets. Ambition 2025 is a five-year strategic plan that articulates ten key priorities that will take the Charity forward. This re-defined the Charity’s purpose, mission and vision to reflect the expanded Group and the services that this now provides:

Purpose

  1. To support the development and delivery of further education and skills providers and their staff

  2. Champion and support the social impact of the further education and skills sector

  3. To develop and award industry relevant, high-quality qualifications, awards, accreditations and end-point assessments

  4. To be a national leader in Access to HE, awarding high quality Access to HE Diplomas that enable learners to progress into further study and/or employment.

Mission

The advancement of skills and education to improve the lives of individuals.

Vision

To provide high-quality services centred on collaboration, responsiveness and diversity, supporting our members and customers to positively impact on the learners, communities and sectors they serve to achieve their full potential, no matter what their age, background or ability.

Page 9

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Plans for future periods (continued)

The plans set annual key performance indicators in the context of a longer-term objectives:

Trustees recognised the importance of the White Paper “Skills for Jobs: Lifelong Learning for Opportunity and Growth" (published January 2021) and continue to consider the future direction of the Charity in the context of further education reforms. Trustees recognise the importance of accessible, responsive, and flexible training and the role that employers have in this. The future plans of the Charity are aligned to the White Paper (much of which has been welcomed by the further education sector) and are reflected in business plans that support Ambition 2025.

Trustees also note, the intent for excellent teaching in further education and the role that the Charity has through its professional development offer in supporting this.

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 . 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.

Page 10

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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:

G.Clipson (Mar 31, 2022 12:25 GMT+1)

G Clipson MBE (Chair of Trustees) Date: Mar 31, 2022

Page 11

(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 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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

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 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.

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)

Other information

The other information comprises the information included in the trustees' report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the trustees' report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 13

(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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the charitable company and the sector in which it operates, and considered the risk of such regulations, including fraud. Based on our understanding of the charitable company, we identified that the principal risks of non-compliance with laws and regulations related to license regulations for awarding and assessment activities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We designed audit procedures to respond to the risk, 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.

We focussed on laws and regulations relevant to the trust which could give rise to a material misstatement in the financial statements. Our testing included discussions with management and directors with direct responsibility for the compliance with laws and regulations, agreeing financial statement disclosures to underlying supporting documentation, and reviewing legal expenses. There are inherent limitations in the audit procedures described and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

Page 14

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

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

irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standardsand-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 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.

Jane Marshall (Apr 4, 2022 14:07 GMT+1)

Jane Marshall (senior statutory auditor)

for and on behalf of

BHP LLP

2 Rutland Park Sheffield S10 2PD

Date: Apr 4, 2022

Page 15

(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 2021

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
2021
£
1,875,429
117
5,969
1,881,515
1,582,896
1,582,896
298,619
1,371,955
298,619
1,670,574		 Total
funds
2021
£
1,875,429
117
5,969
1,881,515
1,582,896
1,582,896
298,619
1,371,955
298,619
1,670,574		 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

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 2021

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		 28,855
233,196
1,455,331
1,717,382
(155,266)		 2021
£
93,290
15,168
108,458
1,562,116
1,670,574
1,670,574
1,670,574
1,670,574		 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

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:

G.Clipson (Mar 31, 2022 12:25 GMT+1)

G Clipson MBE (Chair of Trustees) Date: Mar 31, 2022

The notes on pages 19 to 34 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 2021

Note
Cash flows from operating activities
Net cash provided by operating activities
18
Cash flows from investing activities
Bank interest
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		 2021
£
301,589
117
(72,633)
-
(72,516)
229,073
1,226,258
1,455,331		 2020
£
11,802
3,091
-
(19,502)
(16,411)
(4,609)
1,230,867
1,226,258

The notes on pages 19 to 34 form part of these 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 2021

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

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

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.

Page 19

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

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.

Amortisation is provided on the following bases:

Page 20

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

2. Accounting policies (continued)

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 21

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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.

There were no critical accounting estimates or assumptions this year that are deemed to be material in nature to the financial statements.

4. Income from charitable activities

Accredited
Non-Accredited
Total 2020		 Unrestricted
funds
2021
£
1,622,834
252,595
1,875,429
1,624,647		 Total
funds
2021
£
1,622,834
252,595
1,875,429
1,624,647		 Total
funds
2020
£
1,420,205
204,442
1,624,647

Page 22

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. Income from charitable activities (continued)

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

5. Investment income

Interest receivable
Total 2020
Other incoming resources
Admin fees and other income
Total 2020		 Unrestricted
funds
2021
£
117
3,091
Unrestricted
funds
2021
£
5,969
2,580		 Total
funds
2021
£
117
3,091
Total
funds
2021
£
5,969
2,580		 Total
funds
2020
£
3,091
Total
funds
2020
£
2,580

6. Other incoming resources

Page 23

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. Analysis of expenditure on charitable activities

Accredited
Non-Accredited
Total 2020		 Unrestricted
funds
2021
£
1,384,075
198,821
1,582,896
1,523,268		 Total
funds
2021
£
1,384,075
198,821
1,582,896
1,523,268		 Total
funds
2020
£
1,322,192
201,076
1,523,268

8. Analysis of expenditure by activities

Accredited
Non-Accredited
Total 2020		 Activities
undertaken
directly
2021
£
257,489
23,185
280,674
452,674		 Support costs
2021
£
1,126,586
175,636
1,302,222
1,070,594		 Total
funds
2021
£
1,384,075
198,821
1,582,896
1,523,268		 Total
funds
2020
£
1,322,192
201,076
1,523,268

Page 24

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Moderator costs
Centre approval costs
Certificates
QLS audit
Centre audit
Bad debt expense
Total 2020		 Accredited
2021
£
72,903
136,143
3,668
35,771
-
9,004
-
257,489
387,534		 Non-
Accredited
2021
£
11,347
-
-
-
5,600
-
6,238
23,185
65,140		 Total
funds
2021
£
84,250
136,143
3,668
35,771
5,600
9,004
6,238
280,674
452,674		 Total
funds
2020
£
274,855
90,779
5,627
38,753
11,928
12,107
18,625
452,674

Page 25

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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
Sundry expenses
Parent supplied recharge
IT expenses
Irrecoverable VAT
Donations
Audit fees
Total 2020		 Accredited
2021
£
816,595
14,745
2,060
11,535
1,408
7,344
1,316
46,120
32,915
105,762
42,955
26,380
10,816
6,635
1,126,586
934,658		 Non-
Accredited
2021
£
127,103
2,295
321
1,795
219
1,143
205
7,109
5,123
16,462
6,686
4,458
1,684
1,033
175,636
135,936		 Total
funds
2021
£
943,698
17,040
2,381
13,330
1,627
8,487
1,521
53,229
38,038
122,224
49,641
30,838
12,500
7,668
1,302,222
1,070,594		 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

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

Page 26

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. Staff costs

The below staff costs were recharged from the parent charity:

Wages and salaries
Social security costs
Pension costs		 2021
£
860,867
81,506
85,575
1,027,948		 2020
£
918,946
87,115
83,051
1,089,112

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 (2020 - £NIL).

During the year, no expenses were reimbursed to Trustees (2020: travel expenses totalling £331 were reimbursed 3 trustees).

Page 27

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11.
Intangible assets
Cost
At 1 September 2020
Additions
At 31 August 2021
Amortisation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Assets under
development
£
-
31,677
31,677
-
-
-
31,677
-		 Website
£
93,195
19,415
112,610
58,748
13,376
72,124
40,486
34,447		 Software
£
-
21,541
21,541
-
414
414
21,127
-		 Total
£
93,195
72,633
165,828
58,748
13,790
72,538
93,290
34,447

Page 28

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. Tangible fixed assets

Cost or valuation
At 1 September 2020
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020
13.
Stocks
Finished goods and goods for resale		 Computer
equipment
£
29,833
29,833
11,414
3,251
14,665
15,168
18,419		 Marketing
equipment
£
4,644
4,644
4,644
-
4,644
-
-
2021
£
28,855		 Total
£
34,477
34,477
16,058
3,251
19,309
15,168
18,419
2020
£
24,180

Page 29

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 2020
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 August 2021		 2021
£
173,582
10,282
999
48,333
233,196
2021
£
26,987
61,211
3,340
2,520
61,208
155,266
2021
£
25,375
27,292
(25,375)
27,292		 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

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 30

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

16.
Statement of funds
Statement of funds - current year
Balance at 1
September
2020
£
Unrestricted funds
General funds
1,371,955
Statement of funds - prior year
Balance at
1 September
2019
£
Unrestricted funds
General funds
1,264,905
17.
Analysis of net assets between funds
Analysis of net assets between funds - current year
Tangible fixed assets
Intangible assets
Current assets
Creditors due within one year
Total		 Income
£
1,881,515
Income
£
1,630,318		 Expenditure
£
(1,582,896)
Expenditure
£
(1,523,268)
Unrestricted
funds
2021
£
15,168
93,290
1,717,382
(155,266)
1,670,574		 Balance at 31
August 2021
£
1,670,574
Balance at
31 August
2020
£
1,371,955
Total
funds
2021
£
15,168
93,290
1,717,382
(155,266)
1,670,574

Page 31

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
18,419
34,447
1,383,883
(64,794)
1,371,955		 Total
funds
2020
£
18,419
34,447
1,383,883
(64,794)
1,371,955
18.
Reconciliation of net movement in funds to net cash flow from operating activities
2021
£
Net income for the year (as per Statement of Financial Activities)
298,619
Adjustments for:
Depreciation charges
3,251
Amortisation charges
13,790
(Increase) in stocks
(4,675)
(Increase)/decrease in debtors
(99,751)
Increase/(decrease) in creditors
90,472
Bank interest
(117)
Net cash provided by operating activities
301,589		 2020
£
107,050
1,083
13,579
(13,474)
42,544
(135,889)
(3,091)
11,802

Page 32

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2021
£
1,455,331
1,455,331		 2020
£
1,226,258
1,226,258

20. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2020
£
1,226,258
1,226,258		 Cash flows
£
229,073
229,073		 At 31 August
2021
£
1,455,331
1,455,331

21. Related party transactions

During the year the charity was recharged wages and other costs from its parent, totalling £1,150,172 (2020: £872,359), and made payments to its parent totalling £1,106,868 (2020: £1,166,878). At the year end an amount of £60,238 (2020: £1,034) 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 £15,043 (2020: £20,764) and payments were made to this charity of £4,003 (2020: £55,387). At the year end a balance of £973 (2020: £2,214 owed by) was owed to Skills and Education Group Access to the charity.

BIIAB, a subsidiary of the parent company Skills and Education Group and was acquired on 28 February 2021 was recharged costs of £10,732. At the year end a balance of £10,282 was owed by BIIAB to the charity.

Paul Eeles, a trustee, was a director of Federation of Awarding Bodies until December 2020. During the year, purchases of £14,748 (2020: £nil) were made from Federation of Awarding Bodies. There was £11,134 owed to Federation of Awarding Bodies at the year end (2020: £nil).

JB Lanning, a trustee, is the Vice Chair at City College Norwich. During the year, income of £1,372 (2020: £nil) was received from City College Norwich. There were no amounts owed by City College Norwich at year end (2020: £nil).

Page 33

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

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 34