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2022-08-31-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 2022

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 - 9
Independent auditors' report on the financial statements 10 - 14
Statement of financial activities 15
Balance sheet 16 - 17
Statement of cash flows 18
Notes to the financial statements 19 - 32

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 2022

Trustees G Clipson MBE, Chair
M Holden (appointed 26 April 2022)
S James (appointed 5 July 2022)
D Mcvean (appointed 26 April 2022)
D Saxelby (appointed 26 April 2022)
J Scorer (appointed 26 April 2022)
S Segal (appointed 5 July 2022)
E Temple (appointed 26 April 2022)
A Traynor
Skills and Education Group
P Beach (resigned 22 October 2021)
S Powell (resigned 15 July 2022)
Company registered
number
04117784
Charity registered
number
1086947
Registered office
Robins Wood House
Robins Wood Road
Nottingham
Nottinghamshire
NG8 3NH
Company secretary
S N Feneley-Lamb
Chief executive officer
P A Eeles
Independent auditors
Streets Audit LLP
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
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 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2021 to 31 August 2022. 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) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, 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 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. This culminated in “Ambition 2025” setting out the strategy and direction of the charity to August 2025. This is supported by annual process which sets out clear strategic targets for in-year achievement. Plans are agreed and monitored by the Board of Trustees.

Achievements and performance

a. Main achievements of the Charity

The Charity is a leading national organisation with a long-established reputation for providing high quality support and services to the education sector. During the year, the Charity supported its objective for the advancement of skills and education to improve the lives of individuals by offering qualification opportunities.

In the last year, the Awards portfolio continued to expand, developing a range of new qualifications and assessments, particularly in the patisserie and confectionery, animal care, and fashion and textiles fields. In addition, we developed e-learning to support the delivery of our fabrication and welding qualifications, and introduced XAMS, a new online exams system.

A partnership with the Gangmaster and Labour Abuse Authority (GLAA), Boston College and the University of Nottingham’s Rights Lab resulted in the development of a qualification to raise awareness of rights in the workplace. The Level 1 qualification was developed in 2021 and saw considerable success in its first full year (2021/22). As one learner noted “the Level 1 Award in Workers’ Rights and Labour Exploitation is fantastic. It opened my eyes to what’s happening in the world”.

Page 2

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Achievements and performance (continued)

Engagement increased with industry groups, building stronger relationships, and fostering more support for customers and the beneficiaries of the Charity’s services. For example, a strong relationship with organisations within the motor industry has enabled us to maintain occupational competency and gain access to specific knowledge and support, including recruitment of expert subcontractors and specialists, as we support training activities. For example, the Auto Care/Fast Fit sector employs approximately 1,200 people across 2,000 businesses, the end-point assessment of the Autocare Apprenticeship Standard is designed to fit with employer and sector needs and the commitment to train new staff. A trusted partner of the automotive industry, Skills and Education Group Awards has a strong working relationship with the DVSA, and for the last five years we have provided the management of MOT Tester and Manager qualifications.

During the year, 19,200 qualifications were certificated. An ongoing partnership with Advanced Secure Technologies, and the application of blockchain technology helped protect the integrity of certifications. Additionally, 29,836 MOT testers completed their annual assessment.

The Charity is the leading organisation for Sewing and Textiles end-point assessments (EPAs). It is committed to developing EPAs to this industry and during the year developed and launched the Level 3 Fashion and Textile EPA. In total, the Charity offers and supports 13 EPA standards.

Continuing review of the way that customers and beneficiaries of the Charity’s services are supported, resulted in new developments and ways of working, allowing the Charity to be more responsive, work smarter and more efficiently. We made our portfolio of qualifications smarter, more targeted, and more responsive to sector needs.

We put in place a process for approving and monitoring adaptations to assessments. The Charity implemented a process for the monitoring of Teacher Assessed Grades (TAGs) to ensure that, in the case of further lockdowns, our Centres were supported in line with the regulations. The Charity advocated for funding and the retention of programmes by:

Customers and beneficiaries of the Charity were engaged with throughout the year by established communications and relationship management teams. Building on changed working practices as a result of “lockdowns”, the teams embraced an investment in technology to support online engagement through drop-in clinics, keep in touch meetings, sector groups and focused training.

Operations

The Operations team provided Finance, IT and HR services, oversees data protection and the management of premises and health and safety. The 2021/22 year was spent supporting growth in activities and services which also saw an increase in staff numbers. In support of this growth, IT systems were reviewed, and appropriate development plans implemented. A move to a hybrid model of working for most staff resulted in an investment of technology to support both office-based and homeworking and to support remote access to meetings and trainings.

Page 3

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

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.

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

Unrestricted funds at the end of the year were £1,696,579 (2021: £1,670,574) and free reserves at the end of the year are £1,614,293 (2021 £1,562,116) 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 £26,005 (2021: £298,619).

Total income was £1,900,760 (2021: £1,881,515). Expenditure was £1,874,755 (2021: £1,582,896). Salaries and associated costs remain the primary cost to the Charity.

Total net assets at the year-end are £1,696,579 (2021: £1,670,574). All funds are unrestricted.

Page 4

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

d. Principal risks and uncertainties

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.

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 5

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

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

S E Powell (resigned 15 July 2022)

M Holden (appointed 26 April 2022) J S James (appointed 5 July 2022)

D J McVean (appointed 26 April 2022)

D Saxelby (appointed 26 April 2022)

J F Scorer (appointed 26 April 2022)

S M Segal (appointed 5 July 2022)

E Temple (appointed 26 April 2022)

The appointments during the year enhance the range of skills, knowledge and experience which support and inform the development and implementation of strategic plans. 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. 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 Awards 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.

Page 6

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

Structure, governance and management (continued)

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

The CEO, COO and Director of Product Development and Delivery 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 focus on financial performance. Other discussion items include:

A senior management team (SMT) meets monthly to inform the development and implementation of day-to-day business/operational plans and longer-term strategic plans. The SMT is made-up of the ELT and heads of services/functions from across the Group-wide structure.

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 Charities Commission. Scrutiny Group membership is the ELT, and appropriate heads of service/functions.

d. 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.

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.

Page 7

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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.

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

Alongside these, Trustees endorse a focus in 2023 on investing in the charity’s staff and related resources, the development of products and services and in the Foundation and the work that it does.

Members' liability

The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up.

Page 8

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022

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 auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Approved by order of the members of the board of Trustees on 31 March 2023 and signed on their behalf by:

G Clipson MBE (Chair of Trustees)

Page 9

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

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

Opinion

We have audited the financial statements of Skills and Education Group Awards (the 'charity') for the year ended 31 August 2022 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 10

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The Trustees are responsible for the other information contained within the annual 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.

Opinion 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 Trustees' 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 11

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

INDEPENDENT AUDITORS' 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.

Page 12

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

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

Auditors' 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 auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations

Page 13

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

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

to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 auditors' 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 auditors' 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.

Robert Anderson BSc FCA (senior statutory auditor)

for and on behalf of

Streets Audit LLP

Tower House Lucy Tower Street Lincoln LN1 1XW

N.B. The date of signing should be entered in 'ACCOUNTS COMPLETION' section

Date: 21 April 2023

Page 14

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Note
Income from:
Charitable activities
3
Investments
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
1,888,787
473
11,500
1,900,760
1,874,755
1,874,755
26,005
1,670,574
26,005
1,696,579		 Total
funds
2022
£
1,888,787
473
11,500
1,900,760
1,874,755
1,874,755
26,005
1,670,574
26,005
1,696,579		 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

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

The notes on pages 19 to 32 form part of these financial statements.

Page 15

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) REGISTERED NUMBER: 04117784

BALANCE SHEET AS AT 31 AUGUST 2022

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
Net assets excluding pension asset
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 27,078
780,070
863,408
1,670,556
(56,263)		 2022
£
70,368
11,918
82,286
1,614,293
1,696,579
1,696,579
1,696,579
-
1,696,579
1,696,579		 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
1,670,574

Page 16

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee) REGISTERED NUMBER: 04117784

BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022

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 on 31 March 2023 and signed on their behalf by:

G Clipson MBE (Chair of Trustees)

The notes on pages 19 to 32 form part of these financial statements.

Page 17

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of intangible assets
Net cash used in investing activities
Cash flows from financing activities
Net cash provided by financing 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
The notes on pages 19 to 32 form part of these financial statements		 2022
£
(578,124)
473
(14,272)
(13,799)
-
(591,923)
1,455,331
863,408		 2021
£
301,589
117
(72,633)
(72,516)
-
229,073
1,226,258
1,455,331

Page 18

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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) (effective 1 January 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.

These financial statements are prepared in sterling, which is the functional currency of the entity.

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.

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.

Page 19

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.4 Expenditure (continued)

All expenditure is inclusive of irrecoverable VAT.

2.5 Research and development

Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits, and are amortised on the straight line basis over the anticipated life of the benefits arising from the completed product or project.

Deferred research and development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance of any related research and development is written off to the statement of financial activities.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 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.

2.8 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:

Assets under development - % Not depreciated Website - 25 % straight line Software - 20 % straight line

Page 20

SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.9 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 basis:

Computer equipment - 33% straight line
Marketing equipment - 17% straight line

2.10 Stocks

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

2.11 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.

2.12 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.

2.13 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.

2.14 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.

Page 21

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

2. Accounting policies (continued)

2.15 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. Income from charitable activities

Learner recognition
Total 2021		 Unrestricted
funds
2022
£
1,888,787
1,875,429		 Total
funds
2022
£
1,888,787
1,875,429		 Total
funds
2021
£
1,875,429

4. Investment income

Unrestricted
funds
2022
£
Interest receivable
473
Total 2021
117		 Total
funds
2022
£
473
117		 Total
funds
2021
£
117

Page 22

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. Other incoming resources

Admin fees and other income
Total 2021		 Unrestricted
funds
2022
£
11,500
5,969		 Total
funds
2022
£
11,500
5,969		 Total
funds
2021
£
5,969

6. Analysis of expenditure on charitable activities

Summary by fund type

Learner recognition
Total 2021
Analysis of expenditure by activities
Learner recognition
Total 2021		 Activities
undertaken
directly
2022
£
230,491
280,674		 Unrestricted
funds
2022
£
1,874,755
1,582,896
Support
costs
2022
£
1,644,264
1,302,222		 Total
2022
£
1,874,755
1,582,896
Total
funds
2022
£
1,874,755
1,582,896		 Total
2021
£
1,582,896
Total
funds
2021
£
1,582,896

7. Analysis of expenditure by activities

Page 23

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Moderator and examiner costs
Centre costs
Certificates
Bad debt
Total 2022
Total 2021		 Learner
recognition
2022
£
321
206,415
14,247
9,508
-
230,491
280,674		 Total
funds
2022
£
321
206,415
14,247
9,508
-
230,491
280,674		 Total
funds
2021
£
84,250
136,143
18,272
35,771
6,238
280,674

Page 24

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation and amortisation
Bad debt
Other staff costs
Qualification development
Administration
Communications and marketing
Donations
Premises
ICT costs
Professional fees
Bank charges
Irrecoverable VAT
Governance costs
Central recharges
Total 2021		 Learner
recognition
2022
£
-
40,444
26,521
432
34,619
26,081
(6,600)
-
3
90,398
19,357
1,573
40,343
5,715
1,365,378
1,644,264
1,302,222		 Total
funds
2022
£
-
40,444
26,521
432
34,619
26,081
(6,600)
-
3
90,398
19,357
1,573
40,343
5,715
1,365,378
1,644,264
1,302,222		 Total
funds
2021
£
943,698
17,040
-
20,874
53,229
26,623
13,530
12,500
-
48,349
4,128
1,521
30,838
7,668
122,224
1,302,222

8. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £5,353 ( 2021 - £7,668 ).

Page 25

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP AWARDS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

9. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
976,543
98,213
81,475
1,156,231		 2021
£
860,867
81,506
85,575
1,027,948

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 (2021 - £NIL) .

During the year ended 31 August 2022, expenses totalling £ 362 were reimbursed or paid directly to 6 Trustees (2021 - £NIL to no Trustee) , in relation to travel and accomodation.

Page 26

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

11. Intangible assets

Cost
At 1 September 2021
Additions
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Developm't
£
31,677
11,459
43,136
-
-
-
43,136
31,677		 Bespoke
software
£
21,541
1,484
23,025
414
3,870
4,284
18,741
21,127		 Website
£
112,610
1,329
113,939
72,124
33,324
105,448
8,491
40,486		 Total
£
165,828
14,272
180,100
72,538
37,194
109,732
70,368
93,290

Page 27

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

12. Tangible fixed assets

Cost
At 1 September 2021
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021
13.
Stocks
Finished goods and goods for resale
14.
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Marketing
equipment
£
4,644
4,644
4,644
-
4,644
-
-		 Computer
equipment
£
29,833
29,833
14,665
3,250
17,915
11,918
15,168
2022
£
27,078		 Total
£
34,477
34,477
19,309
3,250
22,559
11,918
15,168
2021
£
28,855
2022
£
265,968
461,162
1,225
51,715		 2021
£
173,582
10,282
999
48,333
780,070 233,196

Page 28

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

15. 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		 2022
£
26,779
16,177
3,362
4,489
5,456
56,263		 2021
£
26,987
61,211
3,340
2,520
61,208
155,266

Deferred income represents monies received in advance for learner registrations on courses.

16. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Statement of funds - prior year
Unrestricted funds
General Funds		 Balance at 1
September
2021
£
1,670,574
Balance at
1 September
2020
£
1,371,955		 Income
£
1,900,760
Income
£
1,881,515		 Expenditure
£
(1,874,755)
Expenditure
£
(1,582,896)		 Balance at
31 August
2022
£
1,696,579
Balance at
31 August
2021
£
1,670,574

Page 29

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

17. Summary of funds

Summary of funds
Summary of funds - current year
General funds
Summary of funds - prior year
General funds		 Balance at 1
September
2021
£
1,670,574
Balance at
1 September
2020
£
1,371,955		 Income
£
1,900,760
Income
£
1,881,515		 Expenditure
£
(1,874,755)
Expenditure
£
(1,582,896)		 Balance at
31 August
2022
£
1,696,579
Balance at
31 August
2021
£
1,670,574

18. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
11,918
Intangible fixed assets
70,368
Current assets
1,703,684
Creditors due within one year
(89,391)
Total
1,696,579		 Total
funds
2022
£
11,918
70,368
1,703,684
(89,391)
1,696,579

Page 30

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

18. 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
2021
£
15,168
93,290
1,717,382
(155,266)
1,670,574		 Total
funds
2021
£
15,168
93,290
1,717,382
(155,266)
1,670,574

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

20.

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Decrease/(increase) in stocks
Increase in debtors
Increase/(decrease) in creditors
Bank interest
Net cash provided by/(used in) operating activities
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2022
£
26,005
3,250
37,194
1,777
(546,874)
(99,003)
(473)
(578,124)
2022
£
863,408
863,408		 2021
£
298,619
3,251
13,790
(4,675)
(99,751)
90,472
(117)
301,589
2021
£
1,455,331
1,455,331

Page 31

SKILLS AND EDUCATION GROUP AWARDS

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

21. Analysis of changes in net debt

Cash at bank and in hand At 1
September
2021
£
1,455,331
1,455,331		 Cash flows
At 31
August 2022
£
£
(591,923)
863,408
(591,923)
863,408		 Cash flows
At 31
August 2022
£
£
(591,923)
863,408
(591,923)
863,408
863,408

22. Related party transactions

During the year the charity was recharged wages and other costs from its parent, totalling £1,1365,378 (2021: £1,150,172), and made payments to its parent totalling £1,300,427 (2021: £1,106,868). At the year end an amount of £429,188 was owed by Skills and Education Group (2021: £60,238 owed to Skills and Education Group) .

Skills and Education Group Access, a subsidiary of the parent company Skills and Education Group, recharged costs of £8,156 (2021: £15,043) to Skills and Education Awards, and payments were made to this charity of £Nil (2021: £4,003). At the year end a balance of £8,156 was owed to Skills and Education Group Access (2021: £973 owed to the charity by Skills and Education Group Access).

BIIAB, a subsidiary of the parent company Skills and Education Group was recharged costs of £21,692 (2021: £10,732). At the year end a balance of £31,974 (2021: £10,282) was owed by BIIAB to the charity.

D McVean is also a Director of Moulton College. During the year income of £150 (2021: £nIl) was received from the College for the provision of charitable services. There are no amounts outstanding at the year end (2021: £ Nil).

23. 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 32