ABDO COLLEGE
ANNUAL REPORT 2022
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COLLEGE
## **CONTENTS**
Highlights at ABDO College **2–3** Trustees’ annual report (incorporating the director’s report) **4–6** Independent auditor’s report to the members **7–9** Statement of financial activities (including income and expenditure account) **10** Statement of financial position **11** Statement of cash flows **12** Notes to the financial statements **13–20**
## **HIGHLIGHTS AT ABDO COLLEGE**
The team at ABDO College is passionate about personal development through recognised eyecare qualifications as well as helping practices prepare for growth through development of their team members.
Read on to see highlights from 2022
## **THIS YEAR IN REVIEW**
The College has emerged strongly from the Covid pandemic with a full cohort of students training to become the next generation of dispensing opticians. As a result of the Education Strategic Review undertaken by the General Optical Council, ABDO has issued a
new syllabus that has been updated to reflect changes in clinical practice. The teaching staff have been working hard to enact these changes and as a result the College will be introducing the first year of the new syllabus in the forthcoming academic year.
## **COLLEGE PRINCIPAL DR ROBERT CUBBIDGE SAYS**
“The College continues to innovate its teaching practices in order to deliver a world class optical education to our students. In the past year we have taken on new academic staff who have integrated well into the team. I continue to be impressed by the drive and commitment of our staff to support our students in their journey towards professional registration. Support from our industry partners has been invaluable in helping us keep our students up to date with product knowledge and we are updating our infrastructure to keep pace with technological changes.”
## **ADVERTISING**
Advertisements in the ABDO journal Dispensing Optics, Optician magazine and Optician Online.
## **SOCIAL MEDIA**
ABDO College continues to interact with past, present and potential students via Facebook, LinkedIn, Instagram and X (formerly Twitter).
## **VIDEO TOUR**
A video tour of the college was used to promote courses and qualifications.
## **CAREERS IN EYECARE**
ABDO College featured as a supporter of the Careers in Eyecare campaign and in a number of articles on the site.
https://www.careersineyecare.org.uk/, https://www.careersineyecare.org.uk/ work-with-careers-in-eyecare/abdo-college/
## **COURSES HIGHLIGHTS**
The optical assistant course proved popular, with another record intake. A further record was broken with 36 people who had successfully completed the Optical Assistant and Senior Optical Assistant going on to take the FBDO course or the Foundation Degree in Ophthalmic Dispensing.
The Contact Lens Certificate course was revamped for the September 2022 intake. The amount of time spent by students on block release was doubled to 4 weeks over the course period as well as new course materials being supplied to use alongside work in practice and assignments.
## **RE:VIEW**
During 2022 ABDO College published two issues of its newsletter, Re:View, in September and June.
## **ABDO BUSINESS SUPPORT HUB**
ABDO College was showcased on the ABDO Business Support Hub team and personal development pages.
## **TRUSTEES’ ANNUAL REPORT** (incorporating the director’s report) YEAR ENDED 31 DECEMBER 2022
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2022.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Company is constituted by Memorandum and Articles of Association as a company limited by guarantee, not having share capital and the company number is 04086997. The company obtained charitable status on the 3 July 2001, and registered with the Charity Commission and the charity’s registered number is 1087337.
ABDO College is based and registered at Godmersham Park, Godmersham, Canterbury, CT4 7DT.
## **Appointment of trustees**
The Association of British Dispensing Opticians is a member of ABDO College, whose trustees include up to ten trustees appointed by their board of directors.
The board of directors of the Association has the right to appoint up to six trustees who serve for four years after which they retire but are eligible for re-appointment for one further term of four years.
## **Trustee induction**
New trustees are made aware of their legal obligations under charity and company law, the contents of the Memorandum and Articles of Association and all relevant undertakings with regard to the management of the charity’s affairs. On appointment, new trustees also meet with senior academic staff and with executive management to obtain information and understanding of the College’s operations.
## **Organisational structure**
The board of trustees, which meets quarterly, administers the Charity. The general secretary has been appointed by the trustees to manage the day to day operations of the college within the terms of delegation approved by the trustees.
## **Risk management**
The trustees actively review the major risks that the charity faces during regular meetings. The financial support undertakings by the Association of British Dispensing Opticians are considered sufficient to meet all known commitments and normal financial risks until the charity becomes fully self-supporting.
The trustees have also examined the other operational and business risks faced by the charity and consider they have established adequate systems and controls to mitigate all significant risks.
## **Investment powers and restrictions**
The board of trustees has the power to employ a professional investment manager, who is entitled to carry out an investment business under the provisions of the Financial Services Act 1986 (or any statutory modification or re-enactment thereof), to exercise the power of investment subject to the policy guidelines drawn up by the board of trustees and within the powers of investment allowed by law.
## **Public benefit**
The board of trustees have considered the Charity Commission’s general guidance on public benefit and specifically its additional public benefit guidance on advancing education together with fee-charging. This has been taken into account when structuring the charity’s objectives and activities.
**4**
## **OBJECTIVES AND ACTIVITIES**
The objectives of the charity are to advance and promote education and research in the science and practice of optics for the public benefit and to disseminate the useful results of such research.
The primary objectives and activities for the year were directed to:
- maintaining a highest possible level of student enrolments;
- promoting and developing new courses;
- improving the provision of optical education, in the UK and internationally, to the benefit both of the profession of dispensing optics and the general public;
- stimulate research projects via its degree courses.
## **ACHIEVEMENTS AND PERFORMANCE**
The team at ABDO College is passionate about personal development through recognised eyewear qualifications as well as helping practices prepare for growth through development of their team members. To this end, courses and qualifications are promoted to ensure good coverage of and great engagement with the College.
The ABDO Business Support Hub incorporates areas around team and personal development and showcases the recognised qualifications offered by ABDO College with a page dedicated to the organisation.
Everything we do will continue to promote the profession and the College with passion.
## **STUDENT ENROLMENT FIGURES**
The total intake of first-year students on dispensing courses in September 2022 was 482. Enrolments for all of the College core courses (ie those listed below) were:
|1st Year Diploma in Ophthalmic Dispensing|167|
|---|---|
|1st Year Foundation Degree in Ophthalmic Dispensing|28|
|2nd Year Diploma in Ophthalmic Dispensing|162|
|2nd Year Foundation Degree in Ophthalmic Dispensing|17|
|3rd Year Diploma in Ophthalmic Dispensing|57|
|3rd Year BSc (Hons) in Ophthalmic Dispensing|7|
|Contact Lens Certificate Course|44|
## **EXAMINATION PASS RATES**
Examination pass rates (the percentage of students achieving a first attempt pass) during 2022 were as follows:
## **DISPENSING**
|**DISPENSING**||||
|---|---|---|---|
|**PQE Theory**|||78.31%|
|**PQE Practical**|Section A 95.29%|
Section C1|98.82%|
||Section B1 96.47%|Section C2|87.65%|
||Section B2 90.59%|Section D|100%|
|**FQE Theory**||||
|Advanced ophthalmic lenses|||60.25%|
|Abnormal ocular conditions/standards of practice|||77.33%|
|Anatomy|||65.71%|
|Refractive management|||85.81%|
|Low vision|||95.83%|
|Contact lenses|||96.06%|
|**FQE Practical**|Section A1 80.71%|Section B3|95.18%|
||Section A2 80.71%|Section C|96.39%|
||Section A3 91.57%|Section D1/2|89.16%|
||Section B1 91.57%|Section D3/4|97.59%|
||Section B2 98.80%|Section D5/6|100%|
|**CONTACT LENS**||||
|Anatomy, physiology & pathology|||53.80%|
|Visual optics|||31.90%|
|Contact lens practice|||63.90%|
|**BSC (HONS) OPHTHALMIC DISPENSING RESULTS 2022**||||
|First|||2|
|2:1|||5|
|2:2|||3|
|3|||2|
|**FD RESULTS 2022**||||
|Distinction|||1|
|Merit|||2|
|Pass|||4|
**5**
## **FINANCIAL REVIEW**
## **Financial performance**
During the year under review, the College made a net income of £7,957 after charging depreciation and amortisation of £60,231. The investments recorded an unrealised loss of £35,735.
## **Reserves policy**
The board of trustees havs established a policy to maintain the reserves at a level that will support the charity with its ongoing activities.
The reserves for the charity are broken down into unrestricted funds at £1,455,093 (2021: £1,447,136) and restricted funds at £9,659 (2021: £9,659).
## **TRUSTEES’ RESPONSIBILITIES STATEMENT**
The trustees, who are also directors 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).
## **AUDITOR**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity’s auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
## **SMALL COMPANY PROVISIONS**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees’ annual report was approved on 27 July 2023 and signed on behalf of the board of trustees by:
Mr C Marchant FBDO Chair of Trustees
Company law requires the charity trustees to prepare financial statements for each year that give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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.
**6**
## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE ABDO COLLEGE OF EDUCATION** YEAR ENDED 31 DECEMBER 2022
## **OPINION**
We have audited the financial statements of the ABDO College of Education (the 'charity') for the year ended 31 December 2022, which comprise the statement of financial activities (including income and expenditure account), statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **OTHER INFORMATION**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report has been prepared in accordance with applicable legal requirements.
**7**
## **MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION**
In the light of the knowledge and understanding of the charity 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 the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **RESPONSIBILITIES OF TRUSTEES**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors 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 charity’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 charity 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 noncompliance 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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and the charity’s performance.
Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals and manipulating the charity’s performance measures to meet targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards, there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements.
**8**
## **USE OF OUR REPORT**
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Roderick Archibald (Senior Statutory Auditor) For and on behalf of
BURGESS HODGSON LLP Chartered accountant & statutory auditor Camburgh House, 27 New Dover Road Canterbury, Kent CT1 3DN
28 July 2023
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
**9**
## **STATEMENT OF FINANCIAL ACTIVITIES**
(INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2022
2022 2022 2022 2021 Unrestricted Restricted Total Total funds funds funds funds Note £ £ £ £ **INCOME AND ENDOWMENTS** Charitable activities 5 2,242,101 – 2,242,101 1,975,440 Other trading activities 6 11,166 – 11,166 4,833 Investment income 7 9,112 – 9,112 6,232 Other income 8 – – – 125,440 **TOTAL INCOME** 2,262,379 – 2,262,379 2,111,945 **EXPENDITURE** Expenditure on charitable activities 9/10 2,218,687 – 2,218,687 2,055,729 **TOTAL EXPENDITURE** 2,218,687 – 2,218,687 2,055,729 Net (losses)/gains on investments 12 (35,735) – (35,735) 22,955 **NET INCOME AND NET MOVEMENT IN FUNDS** 7,957 – 7,957 79,171 **RECONCILIATION OF FUNDS** Total funds brought forward 1,447,136 9,659 1,456,795 1,377,624 **TOTAL FUNDS CARRIED FORWARD** 1,455,093 9,659 1,464,752 1,456,795
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 13 to 20 form part of these financial statements.
**10**
## **STATEMENT OF FINANCIAL POSITION**
31 DECEMBER 2022
2022 2022 2021 Note £ £ £ **FIXED ASSETS** Intangible assets 17 103,093 121,075 Tangible fixed assets 18 182,291 125,812 Investments 19 222,473 260,425 507,857 507,312 **CURRENT ASSETS** Stocks 20 41,994 38,167 Debtors 21 361,258 270,831 Cash at bank and in hand 1,065,764 1,686,779 1,469,016 1,995,777 **CREDITORS: amounts falling due within one year** 23 389,982 870,364 **NET CURRENT ASSETS** 1,079,034 1,125,413 **TOTAL ASSETS LESS CURRENT LIABILITIES** 1,586,891 1,632,725 **CREDITORS: amounts falling due after more than one year** 24 122,139 175,930 **NET ASSETS** 1,464,752 1,456,795 **FUNDS OF THE CHARITY** Restricted funds 9,659 9,659 Unrestricted funds 1,455,093 1,447,136 **TOTAL CHARITY FUNDS** 26 1,464,752 1,456,795
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
These financial statements were approved by the board of trustees and authorised for issue on 27 July 2023, and are signed on behalf of the board by:
## Clive Marchant FBDO
## Chair of Trustees
The notes on pages 13 to 20 form part of these financial statements.
**11**
## **STATEMENT OF CASH FLOWS**
YEAR ENDED 31 DECEMBER 2022
2022 2021 Note £ £ **CASH FLOWS FROM OPERATING ACTIVITIES** Net income 7,957 79,171 Adjustments for: Depreciation of tangible fixed assets 42,249 41,737 Amortisation of intangible assets 17,982 24,483 Net (losses)/gains on investments 35,735 (22,955) Dividends, interest and rents from investments (6,287) (5,761) Other interest receivable and similar income (2,825) (471) Accrued income (27,359) (62,457) Changes in: Stocks (3,827) (7,902) Trade and other debtors (90,427) 256,308 Trade and other creditors (5,595) (28,255) Cash generated from operations (32,397) 273,898 Interest received 2,825 471 Net cash (used in)/from operating activities (29,572) 274,369 **CASH FLOWS FROM INVESTING ACTIVITIES** Dividends, interest and rents from investments 6,287 5,761 Purchase of tangible assets (98,728) (40,297) Purchases of other investments (36,825) (11,999)) Proceeds from sale of other investments 39,042 14,384 Net cash used in investing activities (90,224) (32,151) **CASH FLOWS FROM FINANCING ACTIVITIES** Proceeds from borrowings (49,953) (17,419) Net cash used in financing activities (49,953) (17,419) **NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS** (169,749) 224,799 **CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR** 1,190,110 965,311 **CASH AND CASH EQUIVALENTS AT END OF YEAR** 22 1,020,361 1,190,110
The notes on pages 13 to 20 form part of these financial statements.
**12**
## **NOTES TO THE FINANCIAL STATEMENTS**
YEAR ENDED 31 DECEMBER 2022
## **1. GENERAL INFORMATION**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Godmersham Park, Godmersham, Canterbury, CT4 7DT, England.
## **2. STATEMENT OF COMPLIANCE**
These financial statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Republic of Ireland, the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
## **3. ACCOUNTING POLICIES**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
The ABDO College, a registered charity, was originally established under the auspices of The Association of British Dispensing Opticians. As part of its support for the charity, the Association entered into a deed of grant on the 14 February 2016 to assist the ABDO College in meeting its debts as they fall due and in the furtherance of its charitable objectives for a period of five years.
## **Judgements and key sources of estimation uncertainty**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity’s purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
## **Incoming resources**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income.
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Legacy income is recognised when receipt is probable and entitlement is established.
Income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
Income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Course fees are recognised in full upon commencement of the course with an accrual made to represent the direct costs incurred after the year-end in connection with the provision of the course. Textbook sales are accounted for at the time of sale.
**13**
## **Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT that cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates. Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Resources expended are recognised upon commencement of the course on an accrual basis to match the expenses connected with running the courses with the fee income received. Costs deemed to be directly attributable to the running of the college courses are allocated to direct charitable expenses including charges from The Association of British Dispensing Opticians and the irrecoverable element of VAT.
## **Government grant income**
Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
## **Operating leases**
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
## **Intangible assets**
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
## **Amortisation**
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Website – 10% straight line Copyrights – 10% straight line Software – 10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
## **Tangible assets**
All fixed assets are initially recorded at cost. Depreciation is calculated to write off the cost of an asset, less its estimated residual value, over the useful economic life of the asset.
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property – 7% straight line Fixtures and fittings – 20% straight line Computer equipment – 33% straight line Lab equipment – 15% straight line
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## **Investments**
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
## **Impairment of fixed assets**
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that is largely independent of the cash inflows from other assets or groups of assets.
## **Stocks**
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
## **Defined contribution plans**
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as an expense in the period in which it arises.
The charity contributes to the personal pension plans of certain employee’s, subject to a maximum of 10% of the employees annual salary. Such contributions are held independently of the charities finances. The contributions made are charged to the profit and loss account as they arise.
## **4. LIMITED BY GUARANTEE**
The charity is a company limited by guarantee and has no share capital. Each member of the College will undertake to contribute such amount as may be required (not exceeding £20) to the College’s assets if it should be wound up, either whilst a member or within one year of his or her membership ceasing.
## **Financial instruments**
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
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**5. CHARITABLE ACTIVITIES** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Course fees and accommodation 2,129,246 2,129,246 1,883,924 1,883,924 Text books and rules 110,855 110,855 89,766 89,766 Rental income 2,000 2,000 1,750 1,750 2,242,101 2,242,101 1,975,440 1,975,440 **6. OTHER TRADING ACTIVITIES** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Sponsorships 11,166 11,166 4,833 4,833 **7. INVESTMENT INCOME** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Dividends 6,287 6,287 5,761 5,761 Bank interest receivable 2,825 2,825 471 471 9,112 9,112 6,232 6,232 **8. OTHER INCOME** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Government grant income – – 125,440 125,440 **9. EXPENDITURE ON CHARITABLE ACTIVITIES BY FUND TYPE** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Charitable activity 1,684,369 1,684,369 1,519,462 1,519,462 Support costs 534,318 534,318 536,267 536,267 2,218,687 2,218,687 2,055,729 2,055,729 **10. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE** Activities Support Total funds Total funds undertaken directly costs 2022 2021 £ £ £ £ Charitable activity 1,684,369 402,779 2,087,148 1,895,854 Governance costs – 131,539 131,539 159,875 1,684,369 534,318 2,218,687 2,055,729
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**11. ANALYSIS OF SUPPORT COSTS** Analysis of Total Total support costs 2022 2021 £ £ £ Finance costs 19,568 19,568 18,887 Governance costs 111,971 111,971 140,988 Irrecoverable VAT 72,779 72,779 46,392 ABDO charges – payable 330,000 330,000 330,000 534,318 534,318 536,267 **12. NET (LOSSES)/GAINS ON INVESTMENTS** Unrestricted Total funds Unrestricted Total funds funds 2022 funds 2021 £ £ £ £ Gain/(Loss) on investment assets (35,735) (35,735) 22,955 22,955 **13. NET INCOME** Net income is stated after charging/(crediting): 2022 2021 £ £ Amortisation of intangible assets 17,982 24,483 Depreciation of tangible fixed assets 42,249 41,737 **14. AUDITORS REMUNERATION** Fees payable for the audit of the financial statements 13,125 12,495 **15. STAFF COSTS** The total staff costs and employee benefits for the reporting period are analysed as follows: Wages and salaries 728,690 808,311 Social security costs 69,328 60,846 Employer contributions to pension plans 62,734 61,705 860,752 930,862 The average head count of employees during the year was 20 (2021: 20). The average number of full-time equivalent employees during the year is analysed as follows: Number of staff 2 2 Number of direct charitable staff 18 18 20 20 The number of employees whose remuneration for the year fell within the following bands, were: 80,000-89,999 1 1
## **16. TRUSTEE REMUNERATION AND EXPENSES**
No trustee received any remuneration during the year.
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**17. INTANGIBLE ASSETS** Website Copyrights Software Total £ £ £ £ **COST** At 1 January 2022 and 31 December 2022 111,329 25,000 165,516 301,845 **AMORTISATION** At 1 January 2022 109,899 25,000 45,871 180,770 Charge for the year 1,430 – 16,552 17,982 **At 31 December 2022** 111,329 25,000 62,423 198,752 **CARRYING AMOUNT At 31 December 2022** – – 103,093 103,093 At 31 December 2021 1,430 – 119,645 121,075 **18. TANGIBLE FIXED ASSETS** Long leasehold Fixtures and Computer Lab property fittings equipment equipment Total £ £ £ £ £ **COST** At 1 January 2022 198,991 113,468 163,389 362,295 838,143 Additions 67,635 9,667 20,220 1,206 98,728 **At 31 December 2022** 266,626 123,135 183,609 363,501 936,871 **DEPRECIATION** At 1 January 2022 144,132 107,709 143,812 316,678 712,331 Charge for the year 9,742 4,146 12,301 16,060 42,249 **At 31 December 2022** 153,874 111,855 156,113 332,738 754,580 **CARRYING AMOUNT At 31 December 2022** 112,752 11,280 27,496 30,763 182,291 At 31 December 2021 54,859 5,759 19,577 45,617 125,812 **19. INVESTMENTS** Cash or cash Other equivalents investments Total £ £ £ **COST OR VALUATION** At 1 January 2022 9,186 251,239 260,425 Additions 17,656 19,169 36,825 Disposals (21,385) (17,656) (39,041) Fair value movements – (35,736) (35,736) **At 31 December 2022** 5,457 217,016 222,473 **IMPAIRMENT** – – At 1 January 2022 and 31 December 2022 **CARRYING AMOUNT At 31 December 2022** 5,457 217,016 222,473 At 31 December 2021 9,186 251,239 260,425 All investments shown above are held at valuation. Listed investments
The aggregate market value of listed investments is £217,016 (2021: £246,756).
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## **20. STOCKS**
Stock 2022 2021 £ £ 41,994 38,167 **21. DEBTORS** Trade debtors 297,829 248,520 – Prepayments and accrued income 19,131 Other debtors 44,298 22,311 361,258 270,831 **22. CASH AND CASH EQUIVALENTS** Cash and cash equivalents comprise the following: Cash at bank and in hand 1,065,764 1,686,779 Bank overdrafts (45,403) (496,669) 1,020,361 1,190,110 **23. CREDITORS: AMOUNTS FALLING WITHIN ONE YEAR** Bank loans and overdrafts 105,892 553,320 Trade creditors 33,355 40,456 Accruals and deferred income 234,438 261,797 Social security and other taxes 16,297 14,791 389,982 870,364 **24. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR** Bank loans and overdrafts 122,139 175,930
## **25. PENSIONS AND OTHER POST-RETIREMENT BENEFITS**
## **Defined contribution plans:**
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £62,734 (2021: £61,705).
## **26. ANALYSIS OF CHARITABLE FUNDS**
|Unrestricted Fund
Unrestricted Fund
Restricted Fund
Restricted Fund|At 1 Jan Gains and At 31 Dec
2022 Income Expenditure losses 2022
£ £ £ £ £
1,447,136 2,262,379 (2,218,687) (35,735) 1,455,093
1,367,965 2,111,945 (2,055,729) 22,955 1,447,136
At 1 Jan Gains and At 31 Dec
2021 Income Expenditure losses 2021
£ £ £ £ £
9,659 – – – 9,659
9,659 – – – 9,659|
|---|---|
In 2003 the Charity received a donation of £20,000 with the requirement that this be used only for the furtherance of the Charity's Library. This is held in a restricted fund. All other funds are unrestricted.
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## **27. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Unrestricted Restricted Total funds funds funds 2022 £ £ £ Intangible assets 103,093 – 103,093 Tangible fixed assets 172,632 9,659 182,291 Investments 222,473 – 222,473 Current assets 1,469,016 – 1,469,016 Creditors less than 1 year (389,982) – (389,982) Creditors greater than 1 year (122,139) – (122,139) **Net Assets** 1,455,093 9,659 1,464,752 Unrestricted Restricted Total funds funds funds 2021 £ £ £ Intangible assets 121,075 – 121,075 Tangible fixed assets 116,153 9,659 125,812 Investments 260,425 – 260,425 Current assets 1,995,777 – 1,995,777 Creditors less than 1 year (870,364) – (870,364) Creditors greater than 1 year (175,930) – (175,930) **Net Assets** 1,447,136 9,659 1,456,795 **28. ANALYSIS OF CHANGES IN NET DEBT** At 1 Jan At 31 Dec 2022 Cash flows 2022 £ £ £ Cash at bank and in hand 1,686,779 (621,015) 1,065,764 Bank overdrafts (496,669) 451,266 (45,403) Debt due within one year (56,651) (3,838) (60,489) Debt due after one year (175,930) 53,791 (122,139) 957,529 (119,796) 837,733
## **29. OPERATING LEASE COMMITMENTS**
The total future minimum lease payments under non-cancellable operating leases are as follows:
2022 2021 £ £ Not later than 1 year 318,783 292,587 Later than 1 year and not later than 5 years 1,226,138 1,170,347 Later than 5 years 4,096,213 4,388,800 5,641,134 5,851,734
## **30. RELATED PARTIES**
The Association of British Dispensing Opticians is a member of The ABDO College of Education. Up to six trustees of ABDO College are appointed by The Association of British Dispensing Opticians. Three trustees of The ABDO College of Education are directors of The Association of British Dispensing Opticians.
The Association of British Dispensing Opticians charged The ABDO College of Education £330,000 (2021: £330,000) in respect of administrative wages and general expenses.
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## **MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS**
The trustees Mr K Gutsell FBDO (Hons) SLD Mrs G M Dynan FBDO Mr I A Wills BSc MCOptom Mrs J T Holmes FBDO Mr D V E Newsome FBDO R CL SMC (Tech) Mr C Marchant FBDO Ms S Begum FBDO Sir A Garrett CBE HonFBDO Mr L Thomas FBDO Ms C Walsh FBDO CL SMC (Tech) Ms H Wlkinson FBDO
(appointed 6 May 2022)
(resigned 19 July 2022)
Company Secretary Sir Anthony Garrett CBE HonFBDO
Auditor Burgess Hodgson LLP Chartered accountants & statutory auditor Camburgh House, 27 New Dover Road, Canterbury, Kent CT1 3DN
Bankers Barclays Bank plc Level 27, 1 Churchill Place, London E14 5HP
Investech Wealth & Investment 2 Gresham Street, London EC2V 7QP
Solicitors Hempsons 40 Villiers Street, London WC2N 6NJ
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Registered charity name: The ABDO College of Education Charity registration number: 1087337 Company registration number: 04086997 Principal office and registered office: Godmersham Park, Godmersham, Canterbury CT4 7DT
ABDO College Godmersham Park Godmersham Canterbury Kent CT4 7DT
tel: 01227 738 829 option 1 fax: 01227 733 900 info@abdocollege.org.uk www.abdocollege.org.uk