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2020-08-31-accounts

Registered number: 03773914 Charity number: 1088839

SKILLS AND EDUCATION GROUP ACCESS (FORMERLY OPEN COLLEGE NETWORK YORKSHIRE AND HUMBER REGION)

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 10
Independent auditor's report on the financial statements 11 - 13
Statement of financial activities 14
Balance sheet 15
Notes to the financial statements 16 - 34

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Trustees J Austin(resigned 12 February2021)
G M Alton OBE
P M Bloor
Y Y Mellor,Chair(from 14 October 2020)
Skills and Education GroupLimited
A G Stott,Chair(until 14 October 2020) (resigned 14 October 2020)
A C Birch(appointed 26 January2021)
R Webber-Jones
Company registered
number
03773914
Charity registered number
1088839
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 auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Natwest
536 Valley Road
Nottingham
NG5 1FL
Unity Trust
4 Brindley Place
Birmingham
B1 2JB
Solicitors
Browne Jacobson LLP
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ

Page 1

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The Trustees (who are also Directors for the purposes of company law) present their annual report together with the audited financial statements of the Charity for the year 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (issued in October 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 the education, learning and training of young people and adults in Yorkshire and elsewhere”. Qualifications and services are aligned with the needs of communities, and groups within these, that have not benefited from traditional or formal educational opportunities, including:

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 strategic aims adopted in support of these objectives are identified by an annual strategic planning process culminating in a five year strategic plan agreed and monitored by the Board of Trustees and revised as necessary. Trustees have due regard to guidance issued by the Charities Commission on public benefit in deciding what activities the Charity should undertake.

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

Page 2

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Objectives and activities (continued)

Achievements and performance delivering public benefit

a. Main achievements of the Charity

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

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

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

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

Awarding Services

Access to HE activity enables individuals without the necessary qualifications to progress to study at university and by doing so improve their employment opportunities and social mobility. Work carried out in 2019/20 has seen a new college join Certa Access in 2021 and registrations should commence on a new Diploma in September 2021.

Membership and Communications

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

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

Operations and Project Activities

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

Page 3

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Financial review

a. Going concern

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

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

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

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

This confidence is based on:

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

Page 4

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Financial review (continued)

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:

Total funds at the end of the year which are all unrestricted were £53,148 (2019: £196,145) after taking into account a pension reserve of £907,000 (2019: £756,000). Free reserves at the end of the year are £280,864, which is in line with the reserves policy. The reserves policy is set at group level and more details on the policy are available in the Skills and Education Group accounts.

c. Financial performance and position

The Charity remains in a financially healthy position and continues to meets its agreed financial targets. The Charity achieved a surplus of £7,003 before actuarial losses of £150,000. (2019: £8,700 surplus before actuarial losses of £290,000).

Total income was £330,643 (2019: £330,244). Total expenditure was £323,640 (2019: £321,544). The primary cost to the Charity are salaries and associated costs. The charity benefited from CJRS grants which protected jobs across the Groups and helped support the charity through the early months of the pandemic.

Net assets for the year are £53,148 (2019: £196,145).

Page 5

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Financial review (continued)

d. Risk management

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

Key risks to the Charity are:

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

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

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

Structure, governance and management

a. Constitution

The organisation is a charitable company limited by guarantee, incorporated in 1999.

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 July 2018 and reflect current structural and governance requirements. The objectives of the Charity are defined as “the advancement of the education, learning and training of young persons and adults in Yorkshire and elsewhere”.

Skills and Education Group Access (formally Open College Network Yorkshire and Humber Region) is a controlled charity within the wider Skills and Education Group which includes:

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

Page 6

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

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

A C Birch (appointed 26 January 2021) A G Stott (resigned 14 October 2020) J E Austin (resigned 12 February 2021)

Newly appointed trustees were recruited in accordance with the Articles of Association adopted 2 July 2018.

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:

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

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

Page 7

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Structure, governance and management (continued)

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

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

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

The CEO and COO form the Executive Team with the COO having direct responsibility for Finance, IT, premises, bids/tenders and project activity. The COO is the Company Secretary for the purpose of Company Law.

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

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. In the last year, inductions have been online.

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

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 and approval of the Board of Trustees.

Page 8

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Plans for future periods

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

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

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

In keeping with its drive to achieve educational, economic, and social advancement for all, the Skills and Education Group will collaborate with the British Institute of Innkeeping (BII) to continue to raise industry standards and champion the talented individuals working in hospitality-licensed trades. BIIAB will retain its services in qualifications and apprenticeships that are available to BII members.

The acquisition further strengthens the Skills and Education Group’s position in the marketplace and will build its diverse product portfolio to continue to meet local, national, and international skills needs.

Page 9

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Statement of Trustees' responsibilities

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

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

In so far as the trustees are aware:

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

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

Yultan Mellor

Yultan Mellor (Apr 28, 2021 13:00 GMT+1)

Y Y Mellor

(Chair of Trustees) Date: Apr 28, 2021

Page 10

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Opinion

We have audited the financial statements of Skills and Education Group Access (the 'charitable company') for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Page 11

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 12

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Jane Marshall (May 7, 2021 11:14 GMT+1)

Jane Marshall (Senior Statutory Auditor) for and on behalf of BHP LLP 2 Rutland Park Sheffield S10 2PD

Date: May 7, 2021

Page 13

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

Note
Income from:
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds before other recognised
gains/(losses)
Other recognised gains/(losses):
Actuarial losses on defined benefit pension schemes
19
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
298,960
758
30,925
330,643
323,640
323,640
7,003
(150,000)
(142,997)
196,145
(142,997)
53,148		 Total
funds
2020
£
298,960
758
30,925
330,643
323,640
323,640
7,003
(150,000)
(142,997)
196,145
(142,997)
53,148		 Total
funds
2019
£
309,545
1,326
19,373
330,244
321,544
321,544
8,700
(290,000)
(281,300)
477,445
(281,300)
196,145

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

Page 14

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee) REGISTERED NUMBER: 03773914

BALANCE SHEET AS AT 31 AUGUST 2020

Note
Fixed assets
Intangible assets
12
Tangible assets
13
Current assets
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 liability
Defined benefit pension scheme liability
19
Total net assets
Charity funds
Unrestricted funds
16
Total funds		 27,012
289,565
316,577
(35,713)		 2020
£
21,761
657,523
679,284
280,864
960,148
960,148
(907,000)
53,148
53,148
53,148		 59,292
278,134
337,426
(81,441)		 2019
£
22,006
674,154
696,160
255,985
952,145
952,145
(756,000)
196,145
196,145
196,145

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

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

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

Yultan Mellor

Yultan Mellor (Apr 28, 2021 13:00 GMT+1)

Y Y Mellor

(Chair of Trustees) Date: Apr 28, 2021

Page 15

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

1. General information

The Charity is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Its aim is the advancement of the education, learning and training of young persons and adults in Yorkshire and elsewhere.

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) (published in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

The financial statements are prepared in £ sterling which is the functional currency of the Charity and rounded to the nearest £1.

The charity has taken advantage of the available exemption from preparing a cash flow statement and therefore has not included a cash flow statement in these financial statements.

2.2 Going concern

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

This confidence is based on:

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

Page 16

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

2. Accounting policies (continued)

2.3 Income

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

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

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

2.4 Expenditure

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

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

All expenditure is inclusive of irrecoverable VAT.

2.5 Taxation

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

Page 17

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

2. Accounting policies (continued)

2.6 Intangible assets and amortisation

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

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

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

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

Website

16.66% straight line

2.7 Tangible fixed assets and depreciation

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

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

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives .

Depreciation is provided on the following bases:

2.8 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.

2.9 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.

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SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.10 Liabilities

Liabilities and provisions 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.

2.11 Financial instruments

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

2.12 Employee benefits

When employees have rendered services to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

2.13 Pensions

The charitable company contributes to the West Yorkshire Pension Scheme (WYPS), a defined benefit scheme, at rates set by the scheme's actuaries. The charity accounts for the scheme as a defined benefit scheme in accordance with Charities SORP (FRS102).

The charity also contributes in respect of certain employees to the Teachers' Pension Scheme (TPS), a statutory, contributory, final salary scheme. The TPS is unable to identify the charity's share of the underlying assets and liabilities on a consistent or reasonable basis, and accordingly the charity accounts for its contributions to the scheme in accordance with Charities SORP (FRS 102) as if it were a defined contribution scheme.

2.14 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.

Page 19

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the WYPS defined liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net costs or income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of the liability.

4. Income from charitable activities

Learner recognition
HE recognition
Training and advice
Total 2019		 Unrestricted
funds
2020
£
17,300
281,660
-
298,960
309,545		 Total
funds
2020
£
17,300
281,660
-
298,960
309,545		 Total
funds
2019
£
55,735
253,410
400
309,545

Page 20

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

5. Investment income

Interest receivable
Total 2019		 Unrestricted
funds
2020
£
758
1,326		 Total
funds
2020
£
758
1,326		 Total
funds
2019
£
1,326

6. Other incoming resources

Lettings and other income
CJRS income
Total 2019		 Unrestricted
funds
2020
£
18,583
12,342
30,925
19,373		 Total
funds
2020
£
18,583
12,342
30,925
19,373		 Total
funds
2019
£
19,373
-
19,373

Page 21

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

7. Analysis of expenditure on charitable activities

Learner recognition
HE recognition
Training and advice
Total 2019		 Unrestricted
funds
2020
£
110,971
212,669
-
323,640
321,544		 Total
funds
2020
£
110,971
212,669
-
323,640
321,544		 Total
funds
2019
£
127,010
194,294
240
321,544

8. Analysis of expenditure by activities

Learner recognition
HE recognition
Training and advice
Total 2019		 Activities
undertaken
directly
2020
£
77,403
59,030
-
136,433
119,507		 Support costs
2020
£
33,568
153,639
-
187,207
202,037		 Total
funds
2020
£
110,971
212,669
-
323,640
321,544		 Total
funds
2019
£
127,010
194,294
240
321,544

Page 22

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Moderator costs
QAA licence fee
Access validating agency
Total 2019
Analysis of support costs
Interest on pension obligation
Depreciation and amortisation
Software and IT support
Reprographics, postage and stationery
Marketing, advertising and hospitality
Travel and subsistence
Other staff costs
Premises
Bank charges
Irrecoverable VAT
Central recharge
Legal and professional fees
Audit fees		 Learner
recognition
2020
£
77,403
-
-
-
77,403
77,203
Learner
recognition
2020
£
14,000
1,677
1,039
328
179
347
-
1,279
49
738
7,174
179
6,579
33,568		 HE
recognition
2020
£
-
-
18,871
40,159
59,030
42,304
HE
recognition
2020
£
-
19,836
12,287
3,865
2,112
4,099
-
15,132
581
8,727
84,881
2,119
-
153,639		 Total
funds
2020
£
77,403
-
18,871
40,159
136,433
119,507
Total
funds
2020
£
14,000
21,513
13,326
4,193
2,291
4,446
-
16,411
630
9,465
92,055
2,298
6,579
187,207		 Total
funds
2019
£
76,463
740
13,398
28,906
119,507
Total
funds
2019
£
12,000
16,604
13,966
9,632
6,254
5,877
1,254
25,799
893
11,186
88,269
6,278
4,025
202,037

Page 23

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

8. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Staff costs, audit and accounting and depreciation costs have been allocated based on directly attributable expenditure. The remaining support costs have been allocated based on a percentage of income basis.

9. Auditor's remuneration

2020 2019
£ £
Fees payable to the Charity's auditor for the audit of the Charity's annual accounts 5,760 4,025
Fees payable to the Charity's auditor in respect of:
All assurance services not included above 420 -

10. Staff costs

Wages and salaries
Social security costs
Pension costs		 2020
£
57,661
4,259
15,483
77,403		 2019
£
55,028
4,493
16,942
76,463

The average number of persons employed by the Charity during the year was as follows:

2020 2019
No. No.
Administrative staff 4 4

No employee received remuneration amounting to more than £60,000 in either year.

Key management personnel are remunerated through the parent charity.

During the year, redundancy payments of £3,665 (2019: £nil) were made.

Page 24

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

11. Trustees' remuneration and expenses

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

During the year ended 31 August 2020, expenses totalling £nil were reimbursed or paid directly to Trustees (2019 - £216 to 2 Trustees). The expenses reimbursed in the prior year related to travel expenses and parking charges.

12. Intangible assets

Cost
At 1 September 2019
Additions
At 31 August 2020
Amortisation
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Website
£
22,006
4,637
26,643
4,882
4,882
21,761
22,006

Page 25

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

13.
Tangible fixed assets
Cost or valuation
At 1 September 2019
At 31 August 2020
Depreciation
At 1 September 2019
Charge for the year
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019
14.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 Leasehold land
and buildings
£
1,325,916
1,325,916
652,800
16,413
669,213
656,703
673,116		 Fixtures and
fittings
£
25,732
25,732
25,195
51
25,246
486
537		 Office
equipment
£
44,425
44,425
43,924
167
44,091
334
501
2020
£
2,404
2,240
22,368
27,012		 Total
£
1,396,073
1,396,073
721,919
16,631
738,550
657,523
674,154
2019
£
28,058
1,340
29,894
59,292

Page 26

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

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
Deferred income at 1 September 2019
Amounts released from previous periods
Deferred income at 31 August 2020		 2020
£
10,042
2,321
839
2,554
19,957
35,713
2020
£
-
-
-		 2019
£
22,808
50,887
1,139
1,807
4,800
81,441
2019
£
4,417
(4,417)
-

Page 27

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

16.
Statement of funds
Statement of funds - current year
Unrestricted funds
General funds
Designated pension reserve
Statement of funds - prior year
Unrestricted funds
General funds
Designated pension reserve
17.
Summary of funds
Summary of funds - current year
General funds		 Balance at 1
September
2019
£
952,145
(756,000)
196,145
Balance at
1 September
2018
£
931,445
(454,000)
477,445
Balance at 1
September
2019
£
196,145		 Income
£
330,643
-
330,643
Income
£
330,244
-
330,244
Income
£
330,643		 Expenditure
£
(322,640)
(1,000)
(323,640)
Expenditure
£
(309,544)
(12,000)
(321,544)
Expenditure
£
(323,640)		 Gains/
(Losses)
£
-
(150,000)
(150,000)
Gains/
(Losses)
£
-
(290,000)
(290,000)
Gains/
(Losses)
£
(150,000)		 Balance at 31
August 2020
£
960,148
(907,000)
53,148
Balance at
31 August
2019
£
952,145
(756,000)
196,145
Balance at 31
August 2020
£
53,148

Page 28

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

17. Summary of funds (continued)

Summary of funds - prior year

Balance at Balance at
1 September Gains/ 31 August
2018 Income Expenditure (Losses) 2019
£ £ £ £ £
General funds 477,445 330,244 (321,544) (290,000) 196,145

18. Analysis of net assets between funds

Analysis of net assets between funds - current period

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Pension reserve
Total		 Unrestricted
funds
2020
£
657,523
21,761
316,577
(35,713)
(907,000)
53,148		 Total
funds
2020
£
657,523
21,761
316,577
(35,713)
(907,000)
53,148

Analysis of net assets between funds - prior period

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Pension scheme liability
Total		 Unrestricted
funds
2019
£
674,154
22,006
337,426
(81,441)
(756,000)
196,145		 Total
funds
2019
£
674,154
22,006
337,426
(81,441)
(756,000)
196,145

Page 29

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

19. Pension commitments

The Charity contributes to defined benefit pension schemes on behalf of those employees who remain auto-enrolled who are not members of either the West Yorkshire Pension Fund or the Teachers' Pension Scheme, which are defined benefit arrangements.

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019. The key elements of the valuation and subsequent consultation are:

The next valuation result is due to be implemented from 1 April 2023.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The group has accounted for its contributions to the scheme as if it were a defined contribution scheme. The group has set out above the information available on the scheme.

West Yorkshire Pension Fund

The charity participates in the West Yorkshire Pension Fund (WYPF) which is a multi-employer defined benefit scheme.

The date of the most recent comprehensive actuarial valuation was 31 March 2019. The last full actuarial valuation of this scheme by a qualified, independent actuary as at 31 March 2019 was updated on an approximate basis to 31 August 2020.

Page 30

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

19. Pension commitments (continued)

Contributions were paid at rates of 6.5% to 8.5% for employees throughout the year. Employer's contributions were 45% in the year to 31 August 2020 (year to 31 August 2019 - 45%).

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

At 31 August At 31 August
2020 2019
% %
Discount rate 1.60 1.80
Future salary increases 3.65 3.45
Future pension increases 2.40 2.20
CPI inflation 2.40 2.20
Pension accounts revaluation rates 2.40 2.20
At 31 August At 31 August
2020 2019
Years Years
Mortality rates (in years)
- for a male aged 65 now 22 22
- at 65 for a male aged 45 now 23 23
- for a female aged 65 now 25 25
- at 65 for a female aged 45 now 26 27

Sensitivity analysis

At 31 August At 31 August
2020 2019
£ £
Discount rate +0.1% (36,000) (35,000)
Discount rate -0.1% 36,000 35,000
Mortality assumption - 1 year increase (97,000) (86,000)
Mortality assumption - 1 year decrease 95,000 87,000

Page 31

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

19. Pension commitments (continued)

The Charity's share of the assets in the scheme was:

Equities
Government bonds
Corporate bonds
Property
Cash and other liquid assets
Other
Total fair value of assets		 At 31 August
2020
£
1,283,000
160,000
82,000
71,000
28,000
25,000
1,649,000		 At 31 August
2019
£
1,378,000
187,000
80,000
78,000
34,000
20,000
1,777,000

The actual return on scheme assets was £57,000 (2019 - £87,000).

The amounts recognised in the Statement of financial activities are as follows:

Current service cost
Past service cost
Interest cost
Total amount recognised in the Statement of financial activities
Movements in the present value of the defined benefit obligation were as follows:
Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Actuarial losses
Benefits paid
Past service cost
Current service cost
Closing defined benefit obligation		 2020
£
9,000
-
14,000
23,000
2020
£
2,533,000
45,000
1,000
62,000
(94,000)
-
9,000
2,556,000		 2019
£
8,000
5,000
12,000
25,000
2019
£
2,250,000
59,000
1,000
330,000
(120,000)
5,000
8,000
2,533,000

Page 32

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

19. Pension commitments (continued)

Movements in the fair value of the Charity's share of scheme assets were as follows:

Opening fair value of scheme assets
Interest income
Actuarial (losses)/gains
Contributions by employer
Contributions by scheme participants
Benefits paid
Closing fair value of scheme assets		 2020
£
1,777,000
31,000
(88,000)
22,000
1,000
(94,000)
1,649,000		 2019
£
1,796,000
47,000
40,000
13,000
1,000
(120,000)
1,777,000

20. Related party transactions

During the year the charity was recharged wages costs from its parent, Skills and Education Group, totalling £66,376 (2019: £89,238), and made payments to its parent totalling £92,055 (2019: £80,643). At the year end an amount of £107 (2019: £14,050) was owed to Skills and Education Group.

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

J Austin is also a director of RNN Group. During the year, income of £23,964 (2019: £nil) was received from the company. There are no amounts outstanding from the company at the year end (2019: £nil).

Y Y Mellor is also a trustee of Northern College for Residential Adult Education. During the year, income of £9,730 (2019: £nil) was received from the charity. There are no amounts outstanding from the charity at the year end (2019: £nil).

A Foulkes, a trustee, is also Chief Executive and Principal of Sheffield College. During the year, income of £51,320 (2019: £nil) was received from The Sheffield College. There are no amounts outstanding from the College at the year end (2019: £nil).

Page 33

(A company limited by guarantee)

SKILLS AND EDUCATION GROUP ACCESS

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

21. 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).

Skills and Education Group has a number of common Trustees of Skills and Education Group Access.

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

Page 34