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2022-08-31-accounts

Registered number: 03773914 Charity number: 1088839

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

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 - 9
Independent auditors' report on the financial statements 10 - 14
Statement of financial activities 15
Balance sheet 16 - 17
Notes to the financial statements 18 - 35

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2022

Trustees A Birch (resigned 10 February 2023)
P Bloor
D Gray (appointed 26 April 2022)
Y Mellor
R Sami (appointed 26 April 2022)
R Webber-Jones
A G Stott (appointed 13 February 2023)
G Clipson MBE (appointed 13 February 2023)
Skills and Education Group
Company registered
number
03773914
Charity registered
number
1088839
Registered office
Robins Wood House
Robins Wood Road
Nottingham
NG8 3NH
Company secretary
S N Feneley-Lamb
Chief executive officer
P A Eeles
Independent auditors
Streets Audit LLP
Tower House
Lucy Tower Street
Lincoln
LN1 1XW
Bankers
Natwest
536 Valley Road
Nottingham
NG5 1FL
Solicitors
Browne Jacobson LLP
Mowbray House
Castle Meadow Road
Nottingham
NG2 1BJ

Page 1

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 September 2021 to 31 August 2022. The annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

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

Objectives and activities

a. Policies and objectives

The Charity provides a range of service in furtherance of its charitable objective to support “the advancement of the education, learning and training of adults”. The Charity has a strong social purpose, providing a high-quality and accessible awarding service to support the needs of learners, Centres (education providers), businesses and communities.

Skills and Education Group Access is an Access Validating Agency (AVA) and provides responsive and accessible Access to Higher Education Diplomas (Access to HE) that recognise achievement, particularly for those that have not benefited from previous educational experiences. Access to HE Diplomas are designed to maximise a student’s chance of securing their place in higher education. Developed in partnerships with higher education institutions and further education, the Diplomas provide student’s a second chance; a path to the skills needed to go on to study for a degree at university.

Qualifications and services are aligned with the needs of communities, and groups within these, that may not have 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 objectives, supporting growth and long-term sustainability, are identified as part of an annual strategic planning process that Trustees and staff contribute to. This culminated in “Ambition 2025” setting out the strategy and direction of the charity to August 2025. This is supported by annual process which sets out clear strategic targets for in-year achievement. Plans are agreed and monitored by the Board of Trustees.

Page 2

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Achievements and performance

a. Main achievements of the Charity

Licensed by the Quality Assurance Agency (QAA) to validate and quality assure Access to HE Diplomas, we provide Diplomas that have been specially developed in partnership with higher education and further education experts to offer students a second chance to obtain the skills needed to go on to study for a degree at university. With new Centres, new diplomas and an increased number of learners taking our Access to HE Diploma, it’s a real success. The Access to HE Diploma is a widely-recognised Level 3 qualification that provides opportunities for adults to transition to higher education and retrain for a second graduate-entry profession. Delivering locally-devised, flexible courses, the Diploma supports local and national skills needs.

There were 2,842 registrations (2021: 2,497) on diploma programmes and 1,660 diplomas awarded. 75.6% of the learner cohort were female with 40.2% of all learners coming from the 20-24 age group. 33.7% of learners came from an area of disadvantage compared with 26.6% nationwide. The most popular diplomas were Humanities and Social Science. Three new diplomas were developed in clothing and textiles manufacturing, early years and medicine.

A new awarding management platform was implemented at the start of the year. The new platform provides comprehensive regulatory compliance, an improved customer interface and has defined governance and risk management modules that will support the work of the Trustees and the delivery of their responsibilities. The platform has been well-received by customers and beneficiaries of the Charity, but as it becomes more widely used, development continues to strengthen its functionality.

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

b. Operations

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

c. Fundraising standards information

The charitable group does not carry out any significant fundraising activities.

Page 3

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

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

Financial review

a. Going concern

Trustees worked closely with the Executive Leadership Team to develop strategic and operational plans that not only mitigate the ongoing impact of Covid-19 but also supported the sustained growth of the Group and its subsidiary charities. Such plans included the development of new products and services, and the identification of resources needed to support current and future planned developments.

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

b. Reserves policy

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

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

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

Total funds at the end of the year which are all unrestricted were £920,605 (2021: £379,718). Free reserves at the end of the year (excluding the pension reserve and fixed assets) are £265,854 (2021: £313,346), 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 consolidated Skills and Education Group accounts.

c. Financial performance and position

The Charity remains in a financially healthy position and continues to meet its agreed financial targets. The Charity generated a loss of £58,113, before actuarial pension gains of £599,000 net of the pension asset derecognition (2021: £20,570 surplus before actuarial gains of £306,000).

Total income was £372,428 (2021: £392,148). Total expenditure was £430,541 (2021: £371,578). The primary cost to the Charity are salaries and associated costs.

Net assets for the year are £920,605 (2021: £379,718).

Page 4

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

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

b. Methods of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.

There were five changes to the Board of Trustees during the period:

D J Gray (appointed 26 April 2022) R Sami (appointed 26 April 2022) A Birch (resigned 10 February 2023) A G Stott (appointed 13 February 2023) G Clipson MBE (appointed 13 February 2023)

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.

Page 5

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

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

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

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

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

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

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

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

The CEO, COO and Director of Product Development and Delivery form the Executive Leadership Team. The COO is the Company Secretary for the purpose of Company Law.

The Executive Leadership Team meets on a weekly basis with an extended meeting once a month which focuses on financial performance, compliance and regulation and human resources.

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

Page 6

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Structure, governance and management (continued)

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

A Scrutiny Group meets once a month to formally review regulatory needs across all awarding functions and other regulatory requirements including those relating to the Information Commissioners Officer (ICO), Companies House and the Charities Commission. Scrutiny Group membership is the ELT, and appropriate heads of service/functions.

d. Policies adopted for the induction and training of Trustees

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

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

e. Pay policy for key management personnel

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

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

f. 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.

Page 7

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Plans for future periods

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

Purpose

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

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

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

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

Mission

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

Vision

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

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

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

Members' liability

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

Page 8

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Statement of Trustees' responsibilities

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

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

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

Disclosure of information to auditors

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

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

Y Mellor (Chair of Trustees)

Page 9

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Opinion

We have audited the financial statements of Skills and Education Group Access (the 'charity') for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 10

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Page 11

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

INDEPENDENT AUDITORS' 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.

Page 12

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

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

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

Page 13

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

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

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

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

Use of our report

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

Robert Anderson BSc FCA (senior statutory auditor)

for and on behalf of

Streets Audit LLP

Tower House Lucy Tower Street Lincoln LN1 1XW

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

Date: 21 April 2023

Page 14

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Note
Income from:
Charitable activities
3
Investments
4
Other income
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds before other recognised
gains/(losses)
Other recognised gains/(losses):
Derecognition of pension asset
Actuarial gains of defined benefit pension schemes
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
353,788
45
18,595
372,428
430,541
430,541
(58,113)
(70,000)
669,000
540,887
379,718
540,887
920,605		 Total
funds
2022
£
353,788
45
18,595
372,428
430,541
430,541
(58,113)
(70,000)
669,000
540,887
379,718
540,887
920,605		 Total
funds
2021
£
374,202
30
17,916
392,148
371,578
371,578
20,570
-
306,000
326,570
53,148
326,570
379,718

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

The notes on pages 18 to 35 form part of these financial statements.

Page 15

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee) REGISTERED NUMBER: 03773914

BALANCE SHEET AS AT 31 AUGUST 2022

Note
Fixed assets
Intangible assets
11
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Net assets excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
18
Total net assets		 128,729
172,153
300,882
(35,028)		 2022
£
30,602
624,149
654,751
265,854
920,605
920,605
-
920,605		 48,101
325,323
373,424
(60,078)		 2021
£
25,527
640,845
666,372
313,346
979,718
979,718
(600,000)
379,718

Page 16

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee) REGISTERED NUMBER: 03773914

BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2022

Note
Charity funds
Restricted funds
15
Unrestricted funds
General funds
15
Pension Reserve
15
Total unrestricted funds
15
Total funds		 920,605
-		 2022
£
-
920,605
920,605		 979,718
(600,000)		 2021
£
-
379,718
379,718

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

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

The financial statements were approved and authorised for issue by the Trustees on 31 March 2023 and signed on their behalf by:

Y Mellor (Chair of Trustees)

The notes on pages 18 to 35 form part of these financial statements.

Page 17

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

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

1. General information

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

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Skills and Education Group 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.

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

2.2 Going concern

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

2.3 Income

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

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. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Page 18

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

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

2. Accounting policies (continued)

2.4 Expenditure (continued)

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 Research and development

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

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

2.6 Interest receivable

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

2.7 Intangible assets and amortisation

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

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

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

Amortisation is provided on the following bases:

Development expenditure - 17 % straight line
Website - 17 % straight line

2.8 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.

Page 19

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation (continued)

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

Depreciation is provided on the following basis:

Long-term leasehold property - 2% straight line Fixtures and fittings - 10% straight line Office equipment - 25% straight line

2.9 Debtors

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

2.10 Cash at bank and in hand

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

2.11 Liabilities and provisions

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

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

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.

2.12 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 (FRS 102).

The charity also contributes in respect of certain employees to the Teacher's 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 accodingly the charity accounts for its contributions to the scheme in accordance with Charities SORP (FRS 102) as if it were a defined contribution scheme.

Page 20

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

2. Accounting policies (continued)

2.13 Fund accounting

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

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

3. Income from charitable activities

Learner recognition
HE recognition
Total 2021		 Unrestricted
funds
2022
£
20,480
333,308
353,788
374,202		 Total
funds
2022
£
20,480
333,308
353,788
374,202		 Total
funds
2021
£
17,995
356,207
374,202

4. Investment income

Unrestricted
funds
2022
£
Investment income
45
Total 2021
30		 Total
funds
2022
£
45
30		 Total
funds
2021
£
30

Page 21

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

5. Other incoming resources

Lettings and other income
Coronavirus job retention scheme grant income
Total 2021		 Unrestricted
funds
2022
£
18,595
-
18,595
17,916		 Total
funds
2022
£
18,595
-
18,595
17,916		 Total
funds
2021
£
15,893
2,023
17,916

6. Analysis of expenditure on charitable activities Summary by fund type

Learner recognition
HE recognition
Total 2021		 Unrestricted
funds
2022
£
79,834
350,707
430,541
371,578		 Total
2022
£
79,834
350,707
430,541
371,578		 Total
2021
£
75,126
296,452
371,578

Page 22

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

7. Analysis of expenditure by activities

Learner recognition
HE recognition
Total 2021
Analysis of direct costs		 Activities
undertaken
directly
2022
£
63,062
79,271
142,333
120,926		 Support
costs
2022
£
16,772
271,436
288,208
250,652		 Total
funds
2022
£
79,834
350,707
430,541
371,578		 Total
funds
2021
£
75,126
296,452
371,578
Staff costs
Moderator and examiner costs
QAA registration
Total 2021		 Learner
recognition
2022
£
63,062
-
-
63,062
62,727		 HE
recognition
2022
£
-
51,690
27,581
79,271
58,199		 Total
funds
2022
£
63,062
51,690
27,581
142,333
120,926		 Total
funds
2021
£
62,727
36,621
21,578
120,926

Page 23

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Bad debt
Other staff costs
Administration
Communications and marketing
Premises
ICT costs
Professional fees
Bank charges
Irrecoverable VAT
Governance costs
Central recharges
Total 2021		 Learner
recognition
2022
£
-
1,600
(44)
42
303
-
1,063
362
469
26
210
434
12,307
16,772
12,399		 HE
recognition
2022
£
10,000
25,076
(682)
666
4,756
-
16,641
5,669
7,337
403
3,285
5,470
192,815
271,436
238,253		 Total
funds
2022
£
10,000
26,676
(726)
708
5,059
-
17,704
6,031
7,806
429
3,495
5,904
205,122
288,208
250,652		 Total
funds
2021
£
14,000
21,079
-
1,470
9,361
769
15,620
14,989
2,301
516
2,648
7,255
160,644
250,652

Support costs have been allocated based on a percentage of income basis.

8. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £5,819 ( 2021 - £7,255 ).

Page 24

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£
40,271
5,441
27,350
73,062		 2021
£
45,544
4,128
27,055
76,727

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

2022 2021
No. No.
Administrative stafff 3 3

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, no redundancy payments were made.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 August 2022, expenses totalling £ 85 were reimbursed or paid directly to 1 Trustee (2021- £nil).

Page 25

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

11. Intangible assets

Cost
At 1 September 2021
Additions
At 31 August 2022
Amortisation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Developm't
£
3,116
11,245
14,361
-
2,009
2,009
12,352
3,116		 Website
£
31,694
3,809
35,503
9,283
7,970
17,253
18,250
22,411		 Total
£
34,810
15,054
49,864
9,283
9,979
19,262
30,602
25,527

Page 26

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

12. Tangible fixed assets

Cost
At 1 September 2021
At 31 August 2022
Depreciation
At 1 September 2021
Charge for the year
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021
Debtors
Due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Long-term
leasehold
property
£
1,325,916
1,325,916
685,663
16,473
702,136
623,780
640,253		 Fixtures and
fittings
£
25,732
25,732
25,307
56
25,363
369
425		 Office
equipment
£
44,425
44,425
44,258
167
44,425
-
167
2022
£
77,511
8,156
-
43,062		 Total
£
1,396,073
1,396,073
755,228
16,696
771,924
624,149
640,845
2021
£
12,747
973
1,528
32,853
128,729 48,101

13. Debtors

Page 27

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

14. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income		 2022
£
12,689
4,775
3,854
1,261
750
11,699
35,028		 2021
£
33,912
69
2,129
3,011
260
20,697
60,078

15. Statement of funds

Statement of funds - current year

Balance at 1 Balance at 1 Balance at
September Gains/ 31 August
2021 Income Expenditure (Losses) 2022
£ £ £ £ £
Unrestricted funds
General funds 979,718 372,428 (431,541) - 920,605
Pension reserve (600,000) (70,000) 1,000 669,000 -
379,718 302,428 (430,541) 669,000 920,605
Statement of funds - prior year
Balance at Balance at
1 September Gains/ 31 August
2020 Income Expenditure (Losses) 2021
£ £ £ £ £
Unrestricted funds
General funds 960,148 392,148 (372,578) - 979,718
Pension reserve (907,000) - 1,000 306,000 (600,000)
53,148 392,148 (371,578) 306,000 379,718

Page 28

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

16. Summary of funds

Summary of funds - current year

Balance at 1 Balance at
September Gains/ 31 August
2021 Income Expenditure (Losses) 2022
£ £ £ £ £
General funds 379,718 302,428 (430,541) 669,000 920,605
Summary of funds - prior year
Balance at Balance at
1 September Gains/ 31 August
2020 Income Expenditure (Losses) 2021
£ £ £ £ £
General funds 53,148 392,148 (371,578) 306,000 379,718

17. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
624,149
Intangible fixed assets
30,602
Current assets
300,882
Creditors due within one year
(35,028)
Total
920,605		 Total
funds
2022
£
624,149
30,602
300,882
(35,028)
920,605

Page 29

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

17. Analysis of net assets between funds (continued)

Tangible fixed assets
Intangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Unrestricted
funds
2021
£
640,845
25,527
373,424
(60,078)
(600,000)
379,718		 Total
funds
2021
£
640,845
25,527
373,424
(60,078)
(600,000)
379,718

Page 30

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

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

18. Pension commitments

The Charity contributes to defined benefit pesion schemes on behalf of those employees who remain auto-enrolled who are not members of either the West Yorkshire Pension Fund or the Teacher's 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 full-time teachers in academies. 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.

Valuation of the Teachers' Pension Scheme

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 (https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx).

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

West Yorkshire Pension Fund

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

Page 31

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

18. Pension commitments (continued)

The date of the most recent comprehensive acturial valuation was 31 March 2019. The last full acturial valuation of this scheme by a qualified, independent actuary as at 31 March 2019 was updated on an approximate basis to 31 August 2022.

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 2022 (uear to 31 August 2022 - 45%).

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

Key assumptions
Discount rate
Future salary increases
Future pension increases
CPI inflation
Pension accounts revaluation rates
Mortality rates (in years)
Males retiring today
Males retiring in 20 years
Females retiring today
Females retiring in 20 years
Sensitivity analysis
Discount rate + 0.1%
Discount rate - 0.1%
Mortality assumption - 1 year increase
Mortality assumption - 1 year decrease		 2022
%
4
4
3
3
3
2022
Years
22
23
25
26
2022
£
(25,000)
25,000
(51,000)
51,000		 2021
%
2
4
3
3
3
2021
Years
22
23
25
26
2021
£
(35,000)
35,000
(99,000)
96,000

The pension scheme surplus/deficit is based on the actuarial assumptions used as at the 31 August 2022. These can and do change after the year end. The above senistivity analysis shows how the position stated can change significantly based on changes to the actuarial assumptions. A change in the markets is likely to result in an increased pension scheme deficit by the next ytear end. Post year end valuations could be obtained to provide an indication, however it is considered that the cost would outweigh the benefit to the users of the accounts, and would not be value for money.

Page 32

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Asset allocation
Equities
Property
Government bonds
Corporate bonds
Cash and other liquid assets
Other		 2022
£
1,472,000
72,000
118,000
79,000
74,000
28,000
1,843,000		 2021
£
1,549,000
73,000
154,000
85,000
42,000
27,000
1,930,000

The actual return on scheme assets was £32,000 (2021 - £350,000).

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

Total amount recognised in the Statement of financial acitivites
Current service cost
Interest cost
Derecognise pension surplus		 2022
£
10,000
10,000
70,000
90,000		 2021
£
10,000
14,000
-
24,000

At 31 August 2022, the present value of the defined benefit obligation at the reporting date was valued at less than the fair value of plan assets and therefore the plan has a surplus. In accordance with FRS 102, an entity shall recognise a plan surplus as a defined benefit plan asset only to the extent that it is able torecover the surplus either through reduced contributions in the future or through refunds from the plan. On the basis that the separate triennial valuation is used to calculate future contribution rates on a different valuation basis, there is no realistic expectation that the surplus will be realised or will provide future economic benefit to the trust. As a result the pension asset has not been recognised in the balance sheet of the financial statements. The asset and liability movements as included in the FRS 102 valuation report has been disclosed below for transparency.

Page 33

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

Changes to the defined benefit obligation
Opening defined benefit obligation
Interest cost
Contributions by scheme participants
Acturial losses
Benefits paid
Current service cost
Changes to the fair value of assets
Opening fair value of scheme assets
Interest income
Acturial gains/(losses)
Contributions by employer
Contributions by scheme participants
Benefits paid		 2022
£
2,530,000
42,000
1,000
-
(141,000)
10,000
2,442,000
2022
£
1,930,000
32,000
669,000
21,000
1,000
(141,000)
2,512,000		 2021
£
2,556,000
40,000
1,000
18,000
(95,000)
10,000
2,530,000
2021
£
1,649,000
26,000
324,000
25,000
1,000
(95,000)
1,930,000

Page 34

SKILLS AND EDUCATION GROUP ACCESS

(A company limited by guarantee)

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

19. Related party transactions

During the year the charity was recharged wages and other costs from its parent, totalling £209,147 (2021: £160,644), and made payments to its parent totalling £205,122 (2021: £160,577). At the year end an amount of £8,156 (2021: £69) was owed to Skills and Education Group.

Skills and Education Group Awards, a subsidiary of the parent company Skills and Education Group, was recharged costs of £8,156 (2021: £15,043) and payments were made to this charity of £Nil (2021: £4,003). At the year end a balance of £8,156 (2020: £973) was owed from Skills and Education Group Awards.

BIIAB Qualifications Limited, a subsidiary of the parent company Skills and Education Group recharged costs of £590 to the charity (2021: £Nil). At the year end a balance of £590 (2021: £10,282) was owed to the company.

Y Y Mellor, a trustee, is also a trustee of Northern College for Residential Adult Education. During the year income of £5,615 (2021: £9,622) was received from the charity. There was an oustanding amount owed from the charity at the year end of £50 (2021: £Ni).

A Birch, a trustee, is also Head of Higher Education at RNN Group. During the year income of £34,900 (2021: £29,407) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £33,469 (2021: £225).

R Webber-Jones, a trustee, is also Vice Principal of The Sheffield College. During the year income of £45,940 (2021: £Nil) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £26,035 (2021: £Nil).

R Sami, a trustee, was also Director of Quality at Solihull College during the year. During the year income of £26,650 (2021: £Nil) was received from the College for the provision of charitable services. With amounts outstanding at the year end of £100 (2021: £Nil).

20. Controlling party

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

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

Page 35