Registered number: 04117784 Charlty number: 1086947 SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) CONTENTS Page R8fernnce and admlnlstrative detalls of thé Charlty, Its Tntsteos and advls6rs Twstses. report Indopondent auditors. report on the financlal ststsments Ststsmont of financial actlvltles 10-14 15 Balance sheot 16-17 Statement of cash flows 18 Notss to the financlal •tat•ments 19-32
SKILLS AND EDUCATION GROUP AWARDS IA company Ilmlted by guarantse} REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY. ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2024 Trustees G Clipson MBE (resigned 31 January 2025) M Holden S James (resigned 18 October 2024) D Saxelby J Scorer, Chair S Segal E Temple (resigned 14 February 2025) A Traynor (resigned 31 January 2025) Skills and Education Group Company registered number 04117784 Charity r•glst•r•d number 1086947 Rogl8t•r•d office Robins Wood House Robin5 Wood Road Notb'ngham Nottinghamshire NG8 3NH Company secretary A De'Ath (appointed 7 December 2023) S N Feneley-Lamb (resigned 7 December 2023) Key management Interim Chief Executive: Y Mellor Ind•p•ndent auditors Streets Audit LLP Tower House Lucy T¢)wer Street Lincoln LN11XW Bankers Natwest 536 Valley Road Noth'ngham NG51FL Page 1
SKILLS AND EDUCATION GROUP AWARDS (A company limitad by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees present their annual report together with the audited finanGial statement5 of the Charity for the year 1 September 2023 to 31 August 2024. 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 )Mth the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of ReGommended 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 Companie5 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. Objectlve8 and actlvltl88 a. Policlas and obJectlve• The Charity provides a range of seprfices in furtherance of its charitable objective to support "the advancement of skills and education to improve the lives of individuals. These 5ervice5 include.. awarding and assessment sepiices and qualifications regulated by CCEA (Northern Ireland), Ofqual, Qualification Wale5 and SQA (Scotland) on a national and international level awarding and assessment services for non-regulated skills and education programme8 on a national and international level delivering end-point-asse55ment {EPA> services approved and gulated by the Institute for Apprenticeships and Technical Education IlfATE) and Ofqual local, regional, and national stakeholder engagement to inform and support policy developments and implementation championing social mobility, by providlng opportunltles for individuals to upskill through access to industry endorsed qualifications and assessments. The Charity's strategic aims adopted in sUPPOrt of these objective5 are identified by an annual strategic planning process culminating in Ambition 2025 setting out the strategy and direction of the charity to August 2025. This s supported by an annual proces5 which sets out clear strategic targets for in-year achievement. Plans are agreed and monitored by the Board of Trustees. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance. Public benefit.. running a charity {PB2)'. Page 2
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmitsd by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Achievements and performance . Maln achlevements of tho Charlty The Charity 15 a leading national avrfarding organi5ation with a long-e5tablished reputation for providing high quality support and services to the education sector regulated by CCEA, Ofqual and Qualifications Wales. Furthennore, the Charity offers end-point assessment services regulated by the Institute for Apprenticeships and Technical Education (IfATE) and Ofqual. The Charity's portfolio continues to offer a full range of qualifications across skills sectors. It continues to develop and expand upon its current portfolio with new qualifications added. New qualifications are developed in partnership with employers to ensure they meet industy needs and align to government refomis. Aside from qualification delivery, the Charity contlnues to grow its end-polnt assessment portlolio. b. Fundraislng actlvltles and Incomg generatlon The charity does not carry out any significant fundralslng activities. Financlal review . Going concern At the year end, In light of the charity's operational circumstances, the Trustees considered it necessary to undertake a detailed assessment with extemal support as to whether the charity can continue to operate for the foreseeable future. The past year presented slgnlficant challenges,. however, followlng appropriate enqulrles, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. A5 a result, the Trustees continue to adopt the going concern basis in preparing the financlal statements. Further infomiation on the adopts-on of the going concern basis is provided in the accounting policies. This conclusion is supported by the following factors.. Following the year end, under new leadership, a number of strategic operational and financial decisions have been taken to course-correct and stabilise the charity's activities- The organisation is well positioned, with a clear strategic plan in place to mitigate and navigate the challenges ahead- The charity will continue to be supported by its parent. Skills and Education Group, and its other subsidiary undertakings, should the need arise., The Trustees have reviewed the charity and the Group's financial position, including the level of reserves held, post year-end performance, and projected income and expenditure for a period of at least 12 months from the date of approval of these financial statement5. Based on these forecasts, which indicate a return to positive EBITDA, the Trustees are confident that the charity remains a going concern. Page 3
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmited by guarantee TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 b. Reserves policy It is the policy of the Charity that unrestricted funds which have not been designated for a specific purpose should be maintsined at a level necessary to provide a contingency to support day-to-day business activits'es in the event of reduced income and provide a strategic fund to develop and grow the Charity. Trustees also wish to build reserve¥ to fulfil a Groupwide objectlve to support social mobility. In line with best practice guidance, Trusteos review the reserves policy each year and confim that this level of reserve has been maintained. It is the Charity's policy to work to building and malntainlng reserves to: support the Short, medium and long-term objectlves of the Charity re-invest any surplus funds to support, develop and expand the delivery of high-quality services re-invest any surplus funds to support adivities thal enable social mobility and provide a public benefit maintain sufficient reserves that are readily realisable to sustain operats'ons as and when required cover deficits, when arising, from general reseNes mitigate the risk5 of unforeseen challenges, emergencies or other unexpected requirement for fund5 maintain designated funds that recogni3e funds that are to be used for a specific purpose cover statutory obligations to c105e and wind-up the Charity's affairs in an orderly manner, wthen required. Unrestricted funds at the end of the year were £1,685,468 (2023.. £1,546,911) and free reserves which exclude fixed assets at the end of the year are £1,539,658 (2023.. £1,408,327) which is in line the reserves policy above. In addition to this resenies policy, the trustees have set a reserves policy at group level covering all entities of the Skills and Education Group, with details on this policy available in the Skills and Education Group accounts. This is considered appropriate given the shared nature of operations and charitable activities, and charitsble aims and objectives, across the Skills and Education Group. c. Flnanclal performanc8 and posltlon The Charity remains in a finandally healthy position and continues to meet Its agreed financial targets. The Charity achieved a surplus to funds of £138,557 in the year (2023: deficlt of £149,668). Total income was £2.903,268 (2023: £1,998,764), Expenditure was £2,764,711 (2023.. £2,148.432). Salaries and associated costs remain the primary cost to the Charity. Total net assets at the year-end are £1,685,468 (2023.. £1,546,911). All fund5 are unrestricted. Page 4
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 d. Principal risks and uncertainties Trustees remain aware of the educational and political environment in which the Charity operates and recognise the challenges facing providers in the fijrther education sector. Key risks to the Charity are: A fast-changing political environment that has an impact on education policy and funding to support this Regulatory changes and a failure to respond to these in the way that is needed to ensure conb'nuing compliance Failure to approprialely manage and store personal data leading to a dats breach under the General Data Protections Regulations. Trustees are satisfied that the systems and review processes are in place to mitigate and manage the risks. Strategic risks are managed and monitored through a risk register. The risk register is reviewed and updated by the Senior Leadership Team monthly and further reviewed by Trustees quarterly. The risk register is rated on a weighted likelihood and impact scale based on Charity Commission Guldance. Structure, govemance and management . Constitutlon The organisation is a charitable company Ilmited by guarantee, incorporated on 30 November 2000. The company was set-up under a Memorandum of Association which established the objectives and powers of the charitable company and is govemed under its Articles of Association. The Articles were most recently revised in October 2018 and reflect Current structural and govemance requirements. Skills and Education Group Awards is a controlled charity within the wider Skills and Educatlon Group whlch includes.. Skills and Education Group, the parent charitable company, limited by guarantee Company Number 02640936 Charity Number 1004087 Skills and Education Group Access (fomierly Open College Network Yorkshire and Humber Region) charitable company limited by guarantee.. Company Number 03773914 Charity Number 1088839 BIIAB Qualification5 Limited, a company limited by shares Company Number 10054831 Page 5
SKILLS AND EDUCATION GROUP AWARDS IA company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure. governanGg and management Icontlnued) b. Method5 of appolntment or electlon of Trusteos There was one change to the Board during the year. S James resigned on 18 October 2024. Trustees are recruited in accordance wth the Articles of Association (revised, adopted 16 October 2018) under Article 27 which covers appointments. 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 ongoing and future skills and knowledge needs. c. Organlsatlonal structure and declslon-maklng pollel•s The Board of Trustees meets four times a year. Trustees: support the Chief Executive and Senior Leadership Team (SLT) to determine the strategic direction of the Charity and review annual strategi¢ plans, business plans and Key Performance Indicators. approve annual budget5, receive and review quarterly management accounts to monitor and challenge performance review and monitor the strategic risk register to ensure that the appropriate controls are in place to mitigate risks ensure that appropriate governance review mechanisms are in place and that performance is reviewed and that Charity Commissian guidance 18 ft)Ilowed, The Chairs and Chlef Executive meets four times a year, whlch enables the Chairs to have a collective and strategic oversight of the Charity. The Chairs of the charities Skills and Education Group, Skills and EdueAtlon Group Acces5 are members of this Group, The Group meets ahead of quarterly Board of Trustees meetings and provides a structure for the Chairs to review and monitor.. the performance of the Chief Executive and the Senior Leadership Team financial perforrnance for the Charity and take a holistic view of all entities within the Group structure performance against strategic and business plans the Charity and all other entities identify opportunities for groW(h and the approach that may be taken to progress these detemiine longer-term strategic direction to help shape plans and proposals for all Trustees to consider. The Charity Chair is a Trustee of the Skills and Education Group, an appointment made under Article 21 of the Skills and Education Group Article5. Day-to-day management of the Charity is delegated to the Chief Executive, who is supported by a Deputy Chief Executive. The Executive is supported by 8 Senior Leadership Team (SLT), who support the Chief Executive and Deputy Chief Executive wth operational and strategic matters. The Senior Leadership Team meets on a weekly basis, th an extended monthly meeting which focuses on ovepll Group strategy, finance, and HR matters. A Senior Management Team (SMT) in addition to SLT meets monthly focusing on operational and departmentsl matters across the Group. The SMT is chaired by the Deputy Chief Executive and comprises of all SLT members, and Heads of services and functions from across the Skills and Education Group. Page 6
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmltsd by guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Structure. governance and management (contlnued) In addition to SMT, a monthly Scrutiny Group is held. This meeting is attended by the Executive and SLT. The meeting is chaired by the Deputy Chief Executive and is used to fomierly review regulatory needs across all awarding functions within the Group. The Deputy Chief Executive acts as the Data Protection Officer for the Charity and is supported by member5 of the Senior Leadership Team. d. Pollcles adopted for tho Induction and tralnlng of Trustses Newly appointed Trustees receive an induction under the direction of the Chief Executive. This normally includes an introductory visit to Robins Wood House where there is an opportunity to meet with key staff to gain detsiled understanding of the Charity and the subsidiaries within this. Trustees also complete a declaratlon of interest record and skills audit on appointment. Declarations are noted on the Register which is reviewed and updated on an annual basis. Trustees are also asked to state any interests at the start of each Board meeting. e. Pay policy for key management porsonnel Remuneration for the Chief Executive is determined by the Chairs of the Skills and Educatson Group and subsidiaries. The Chief Executive determines the remuneration for all staff, including the Deputy Chief Executive and Senior Leadership Team. All annual cost of living pay awards for staff are subject to recommendation to and approval of the Board of Trugtees. f. Financlal risk management The Trustees have assessed the major risks to which the Charity are exposed, those related to the operations and finances of the Charty and are 5ati5fied that 5yStem5 and procedures are in place to mitigate exposure to the major risks. Page 7
SKILLS AND EDUCATION GROUP AWARDS {A company Ilmitsd by guarantee) TRUSTEES. REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 Plans for future periods Twstees continue to support "Ambition 2025°, challenging assumptions and using their skills and knowledge to define objectives and associated targets. Ambition 2025 is a strategic plan that articulates ten key priorities that Viryll take the Charity forward. This redefined the Charity's purpose, mission, and vision to reflect the expanded Group and the services that this now provides.. Purpos8'. To support the development and delivery of further education and skills providers and their staff Champion and support the social impact of the further education and skills sector To develop and award industry relevant, high-qualty qualificats'ons, accreditations and end-point assessments To be a national leader in Access to HE, awarding high quality Access ta HE Diplomas that enable learners to progress into further study andlor employment. Mlsslon.. The advancement of skills and education to improve the lives of individuals. Vislon: To provide high-quality services centred on collaboration, responsiveness, and diversity, supportlng our members and customers to positively impact on the leamers, communities, and sectors they serve to achieve their full potential, no matter what their age, background or abilty- The plans set annual key performance indicators in the context of a longer-term objectives.. To see a growth in membershlp Increase the number of people participating in professional development events An increase in the uptake of grants to learners awarded through the Group's Foundation Raise awareness of the charities work, through Its Foundatlon, in widening participation and social mobility Grow the number of learners benefiting from a certificate form at least one of the charity's awarding brands Growthe collective awardlng share Ensure that a surplus is generated Explore intemational opportunities Ensure good staff engagement and satisfaction. 2023124 has seen further progress towards achieving Ambition 2025. 2024125 will build on these successes, and with the support of Trustees the ExecLrtive and Senior Leadership Team will work towards creatin9 a new three-year strategy to 2027. Members. Ilablllty The Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. Page 8
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmltsd by guarants8) TRUSTEES, REPORT ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 ststement of Trustees. responslbilitie5 The Trustee5 (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees. report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to- select suitable accounting policies and then apply them consistently., observe the methods and prinaples of the Charities SORP (FRS 102); make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern ba515 unless it is inappropriate to presume that the Charity Y11 continue In business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply wth 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. Dlsclosure of Information to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved has confimed that: so far as that Trustee Is aware, there Is no relevant audit infomation of vthich the char6ty's audltors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee In order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that infomiation. Approved by order of the member5 of the board and signed on their behalf by.. Trustees on J Scorer (Chair of Trustees) Page 9
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS Opinion We have audited the financial statements of Skills and Education Group Awards (the 'charity') for the year ended 31 August 2024 which comprise the ststement 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, (Unlted Kingdom Generally Accepted Aceountlng Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, induding its income and expenditure for the year then ended; have been properly prepared in accordance wth United Kingdom Generally Accepted Accounting Practice., and have been prepared In accordance with the requirements of the Companies Act 2006. Basls for opinlon We conducted our audit in accordance with International Standards on Auditing (UK) IISAS {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 independenl of the charitable Company in accordance th 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 ewdence we have obtained is sufficient and appropriate to provide a basis for our opinlon. Conclu8lon$ relatlng to golng concern In auditing the financial statements, we have concluded that the Trustees, use of the going concem basis of accounting In the preparation of the financial statements Is appropriate. Based on the work we have perfomied, 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 conts'nue as a going concem for a period of at least trfftlve months from when the financial statements are authorised for i55ue. Our responsibilities and the responsibilities of the Trustee5 With respect to going concern are described in the relevant Sections of this report. Page 10
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmlted by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED) Other infomiatlon 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 infom)ation contained thin the annual report. Our opinion on the financial statements does not cover the other infonnation 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 V have performed. we conclude that there is a material misslatement of this other infomiation, wo are required to report that fact. We have nothlng to report In this regard. Oplnlon on other matters prescrId by the Companios Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Tru5tees' report for the financial year for whlch the financial statements are prepared is consistent with the financial statements. the Trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exceptlon In the light of our knowledge and understanding of the charitable company and It8 environment obtained in the course of the audit, y have not identified material misstatements in the Trustees, report. We have nothlng to report In respect of the followtng matters in relation to whith Companies Act 2008 requires us to report lo you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and retums., or certain disclosures of Trustees, remuneration specified by law are not made" or we have not received all the infonnation and explanations we require for our audit; or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a Strategic report. Page11
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED) Responsibllltles of trustees A5 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 intemal control a5 the Trustees determine is necessary to enable the preparation of financial statements that are free from material misststement, )Miether 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 concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations. or have no realistic alternative but to do so. Page 12
SKILLS AND EDUCATION GROUP AWARDS IA company Ilmbtad by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED) Auditors, responslblllties for the audit of the financlal 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 indudes 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 tsken on the basis of these financial statements. Irregularitie5, 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 irregularitses, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates- we focused on specific lav and regulations which we Considered may have a direct material effect on the financial statements or the operations of the company, including the Companie5 Act 2006; Charities Act 2011, taxation legislation, dats protects'on. anti-bribery and employment legislation- we assessed the extent of compliance with the law5 and regulations identified above through making enquiries of management., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financlal statements to material misstatement, includlng obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibilty to fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with law5 and regulations. To address the risk offraud through management bias and override of contro15, 1Ne'. perfonned analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transa¢tions- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. and investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations. we designed procedures which included, butwere not limited to= agreeing financial statement disclosures to underlying supporting documentation. reading the minutes of meetings of those charged with governance., and enquiring of management as to actual and potential litigation and claims. Page13
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmited by guarantae) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF SKILLS AND EDUCATION GROUP AWARDS (CONTINUED) There are inherent limitations in our audit proCedUS described above. The more removed that laws and regulations are from financial transactions, the les5 likely it is that V would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with lawJ 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 aL www.frc.or .ukJauditorsres onsibilities. This description fomis part of our auditors, report. Uso of our r•port This report is made solely to the charitable companys 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 (senlor $tstutory auditor) for and on behalf of Streets Audit LLP Tower House Lucy Tower Street Lincoln LN11XW Date.. Page 14
SKILLS AND EDUCATION GROUP AWARDS {A company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2024 Unrestricted funds 2024 Total funds 2024 Total funds 2023 Nots Income from: Charttable activities Investments 2,896,068 2,488 4,712 2,896,068 2,488 4,712 1,982,737 3,973 10.054 other income Total Income 2,903,268 2.903,268 1,996,764 Expèndlturo on: Charitable acts'vities 2,764,711 2,764,711 2,146,432 Total expondltura 2,764,711 2,764,711 2,146,432 Net movement In funds 138,557 138.557 (149.668) Reconclliation of funds: Total funds brought forward Net movement in funds 1.546,911 138,557 1,546,911 138,557 1,696,579 {149,668) Total funds carrl•d fonyard 1,685,468 1,685,468 1,546,911 The Statement of finandal activities includes all gains and losses recognised in the year, The notes on pages 19 to 32 form part of these financial Statements. Page 15
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) REGISTERED NUMBER: 04117784 BALANCE SHEET AS AT 31 AUGUST 2024 2024 2023 Noto Flxed assets Intangible assets Tangible assets 10 137.968 7.842 127,316 11.268 145,810 138,584 Currnnt assets Stocks Debtors Cash at bank and In hand 12 13 3,710 1,949,350 120,016 100,282 946, 793 456,400 2,073,076 1,503,475 Creditors.. amounts falling due within one year 14 (533A18) (95. 148) Not current aggets 1,539,658 1,408,327 Totsl assets less currant liabilltles 1,685,468 1,546,911 Totsl net assets 1,685,468 1.546,911 Page 16
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee REGISTERED NUMBER: 04117784 BALANCE SHEET (CONTINUED) AS AT 31 AUGUST 2024 2024 2023 Note Chavlty funds Restricted funds Unrestricted funds 15 15 1,685,468 1,546,911 Total funds 1,68S,468 1,546,911 The Trustees acknovAedge their responsibilities for complying with the requirements of the Act wth respect to accounting records and preparation of financial statements. The financlal statements have been prepared In accordance Yth the provisions applicable to entities sublect to the small companies regime. The financlal statements were approved and authoTised for issue by the Trustees on and signed on their behalf by- J Scor6r (Chair of Trustees) The notes on pages 19 to 32 fomi part of these financlal statements. Page 17
SKILLS AND EDUCATION GROUP AWARDS IA company Ilmlted by guarantee STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 2024 2023 Cash flows from oporating actlvltles Net cash used in operating activities (279,748) {350,516) Cash flows from Investing actlvltles Dividends, interests and rent5 from investments Purchase of intangible assets Purchase of tangible fixed assets 2,488 (58,649) {475) 3,973 (60,465) Not cash used In Investing actlvltl•8 156,636) 156,492) Cash flows from flnanclng activities Net cagh provldad by financlng actlvltleg Change In cash and cash equivalents In tho year Cash and cash equivalents at the beginning of the year (336.384) (407.008) 456hOO 863,408 Cagh and cash equivalents at th8 end of the year 120,016 456,400 The notes on pages 19 to 32 fomi part of these financial statements Page 18
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmlted by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 General infomiation The Charity is a company limited by guarantee. incorporated in England and Wales, and consequentty 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. Accountlng pollcles 2.1 Basis of preparation of financlal 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 Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Skills and Education Group Awards meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transath'on 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 Golng concern The financial statements have been prepared on a going concern basis. At the year end, the charity reported a surplus of £138,557. During the year, the charity experienced a significant operational challenge, which prompted the TTUStees to undertake a detailed assessment wth external support of the charity's ability to continue operating for the foreseeable future, and for at least 12 months from the date of approval of the financial statements. Following appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Although operational difficulties were encountered during the year, the reported surplus and the charity's continued positive trajectory since the year end provide assurance that the charity is financially resilient. Under new leadership, a number of strategic operational and financial decisions have been implemented to course-correct and strengthen the company's activities. The chanty is well positioned, with access to sufficient resources and a dear strategic plan, to address and mitigate any future challenge5. The Trustees have also confimied that the charity will continue to be supported by its parent, Skills and Education Group, and it3 other subsidiary undertakings, should the need arise. In forming their conclusion, the TTUStee5 considered the wider Group's financial position, including available reserves, post year-end performance, and the projected income and expenditure for a period of at least 12 months from the date of approval of these financial statements. Based on these forecasts, vthich indicate a continuing surplus, the Trustees are confident in the charity's ongoing viability. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements. Page 19
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng 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. Other income is recogni5ed in the period in which it is receivable and to the extent the goods have been provided or on completion of the seplice. 2.4 Expendlture 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 activlty are made up of the totsl 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. Expendlture on charitable adivities is incurred on directly undertaking the activities which further the Charity's objects'ves, as well as any associated support costs. All expenditure is inclusive of Irrecoverable VAT. 2.5 Research and developmant Development costs are capltallsed thIn 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 Ilfe of the beneffts 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 activitie5. 2.6 Inter8St rec8ivable Interest on fund5 held on deposit is included when receivable and the amount can be measured reliably by the Charity., this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.7 Taxation The Charity is considered to pass the tests set OLrt in Paragraph 1 Schedule 6 of the Finan Act 2010 and therefore it meets the deffinition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains reiVed 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 20
SKILLS AND EDUCATION GROUP AWARDS (A company limitad by guarantae) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accounting policies (continued) 2.8 Intangible assets and amortlsation 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 c05t model, intsngible assets are measured at cost less any accumulated amortisation and any accumulated impaiment 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. Amortlsatlon Is provlded on the followlng bases: Development Website Soare 20 % straight line 25 Oh straight line 20 % straight line 2.9 Tangible fixed assets and depreciation Tangible fixed assets costing £500 or more are capitalised and recognised vthen future economic benefits are probable and the cost or value of the asset can be measured reliably. TangibSe 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 ol cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less thelr resldual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis: Computer equipment Marketing equipment 200 straight line 20% straight line 2.10 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 2.11 Debtors Trade and other debtors are recognised at the setuement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 2.12 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 21
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Accountlng poli¢le$ (contlnued) 2.13 Liabilitles and proviglons 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 recogni$ed at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions a measured at the best estimate of the amounts required to Settle the obligation. 2.14 Flnanclal Instrumonts The Charlty only has financial asset$ and financlal Ilabllltles of a klnd that qualify as baslc financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 2.15 Fund accountlng 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. Income from charitable actlvltles Unrestricted funds 2024 Total funds 2024 Total funds 2023 Leamer recognition 2,896,068 2,896,068 1,982,737 Total 2023 1,982, 737 1,982,737 Page 22
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmltsd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Inveslment income Unrestrlctod funds 2024 Totsl funds 2024 Total funds 2023 Interest receivable 2,488 2,488 3,973 Total 2023 3,973 3,973 other incomlng resources Unrestricted funds 2024 Total funds 2024 Total funds 2023 Admin fees and other income 4,712 4,712 10,054 Total 2023 10,054 10.054 Analysis of éxp8ndlturo on charltable actlvltle8 Summary by fund type Unrestrictèd funds 2024 Total 2024 Total 2023 Learner recognition 2,764,711 2,764,711 2.146,432 Total 2023 2, 146,432 2, 146,432 Page 23
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmlted by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Analysls of expendlture by activltl68 Activltles undertaken dirnctly 2024 Support osts 2024 Total fund8 2024 Total funds 2023 Leamer recognition 371,259 2,393,452 2,764,711 2, 146,432 Tot812023 411,477 1, 734,955 2, 146,432 Analysls of dlrnct Costs Learner rncognltlon 2024 Total funds 2024 Total funds 2023 Moderator and examiner costs Centre costs Certificates Foundation activities 262,037 24,065 85,157 262,037 24,065 85,157 244,675 9,653 64,245 92,904 Total 2024 371,259 371,259 411,477 Total 2023 471,477 411,477 Page 24
SKILLS AND EDUCATION GROUP AWARDS (A ct)mpany Ilmited by guarants&) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 Anatysls of expendlture by activities (continued) Anatysls of support costs Learnor recognition 2024 Totsl funds 2024 Tot81 funds 2023 Depreciation and amortisation Bad debt Other 8taff costs Qualification development Admlnlstration Communlcations and marketlng Donations Premises ICT costs Professional fees Bank charges Irrecoverable VAT Govemance costs Central recharges 51,896 19,828 273,852 72,214 92,091 117,336 58,399 25,427 189,527 161,395 2,093 33,599 20,310 1,275,485 51,896 19.828 273,8S2 72,214 92,091 117,336 58,399 25,427 189,527 161,395 2,093 33,599 20.310 1,275,486 41.778 123,032 28,627 21,175 32,615 15,769 34,413 109,223 33,083 2,670 61,696 5,212 1,225,662 2,393,452 2,393,452 1,734,955 Total 2023 1, 734,955 1, 734,955 Audltor8' remuneration The auditors, remuneration amounts to an auditor fee of £5,000 (2023 - £5,000). Trustees. remuneration and Oxpenses During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 August 2024, expenses totalling £nil were reimbursed or paid directly to no Trustee (2023 - £200 to 6 Trustees), in relation to travel and accomodats'on. Page 25
SKILLS AND EDUCATION GROUP AWARDS {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 10. Intangible assets Bespoke software Developm Websfto Total Cost At 1 September 2023 Additions Disposals 97,243 27,167 (18,685) 23,025 16,685 120.297 14,797 240.565 S8.649 118,685) At 31 August 2024 105,725 39,710 135,094 280,529 Amortlsatlon At 1 September 2023 Charge for the year On disposals 8,889 6,286 104,360 6,863 113.249 33,049 13,737) 19,901 (3,737) At 31 August 2024 16,164 15,174 111,223 142,561 Net book value At 31 August 2024 89,661 24,536 23.871 137,968 At 31 August 2023 97,243 14, 136 15,937 127,316 Page 26
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 11. Tangible fixed assets Marketlng equipment Computer equlpment Total Cost At 1 September 2023 Addition8 29,833 475 34,477 475 At 31 August 2024 4.644 30,308 34,952 Deproclatlon At 1 September 2023 Charge for the year 4,644 18,566 3.901 23,209 3,901 At 31 August 2024 4,644 22,466 27,110 Net book valu• At 31 August 2024 7,842 7,842 At 31 August 2023 11,268 11,268 12. Stocks 2024 2023 Finished goods and goods for resale 3,710 100,282 Page 27
SKILLS AND EDUCATION GROUP AWARDS {A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 13. Debtors 2024 2023 Due withln one year Trade debtors Amounts ovRd by group undertaking5 Other debtors Prepayments and accrued income 363,317 1.533,016 11,692 41.325 168,320 701,006 640 76.827 1,949.350 946, 793 14. Credltors: Amounts falling due wlthln one year 2024 2023 Trade creditor8 Amounts owed to group undertakings Other taxation and social security Other creditors Accruals and deferred income 95,099 122,595 32,557 10.000 273,167 24,035 51,063 11,450 294 8,306 533,418 95, 148 Deferred income represents monies received in advance for annual centre registration fee5. Page 28
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guarantse) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 15. Statement of funds Statement of funds - current year Balance at 1 September 2023 Balance at 31 August 2024 Income Expenditure Unrestrlcted funds General Funds 1,546,911 2,903.268 (2,764.711) 1,685,468 Statom•nt of funds - prior year Balance 8t 1 S8Pt8mber 2022 Balance at 31 Augusl 2023 Income Expenditure Unrestricted funds General Funds 1,696,579 1,996,764 (2,146,432) 1.546,911 16. Summary offunds Summary of funds - curront year Balance at 1 September 2023 Balance at 31 August 2024 Income Expenditure General funds 1,546.911 2,903,268 12,764,711) 1,685,468 Summary of funds - prior year Balance at I Septefflber 2022 Balance at 31 August 2023 Income Expenditure General fvnds 1,696,579 1.996, 764 (2, 146,432) 1,546,911 Page 29
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 17. Analysis ol net assets between funds Analysis of net assets botween fvnds - current perlod Unrestricted funds 2024 Totsl funds 2024 Tangible fixed assets Intangible fixed assets Current assets Creditors due within one year 7,842 7,842 137,968 137,968 2.073,076 2.073,076 (533,418) (633,418) Totsl 1,685,468 1,685,468 Analysls of net ag$0ts botwoen funds - prlor perfod Unrestricted funds 2023 Total funds 2023 Tangible fixed assets Intangible fixed assets Current assets Creditors due wthln one year 11.268 127,316 1,503,475 (95, 148) 11.268 127,316 1,503,475 (95, 148) Total 1,546,911 1,546,911 Page 30
SKILLS AND EDUCATION GROUP AWARDS (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. Reconciliation of nat movement In funds to net cash flow from operating activiti88 2024 2023 Net incomelexpenditure for the period (as per Statement of Financial AGtivities) 138,557 (149,668) Adjustments for: Depreciation charges Amortisation charges Decreasel(increase) in stocks Increase In debtors Increase in creditors Bank interest 3.901 650 47,997 3,517 96.572 (73,204) (1,002.557) (166, 723) 438,270 38,885 (2,488) (3,973) Net cash used In operating actlvities 1279,748) (350,516) 19. Analysis of cash and cash equlvalents 2024 2023 Cash In hand 120,016 456,400 Total cash and cash equlvalents 120,016 456,400 20. Anatysls of chang•s In not dobt At1 September At31 2023 Cash flows August 2024 Cash at bank and in hand 456,400 (336,384) 120,016 456,400 1336,384) 120,016 Page 31
SKILLS AND EDUCATION GROUP AWARDS (A company limited by guaranteè) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 21. Related party transactions During the year the charity was recharged wages and other costs from its parent, totalling £1,275,485 (2023: £1,225,662). At the year end an amount of £1,432,955 was owed by Skills and Education Group (2023.. 695,888) Skills and Education Group Access, a subsidiary of the parent company Skills and Education Group, recharged costs of £Nil {2023.- £9,523) to Skills and Education Awards. Skills and Education Group Award5 recharged costs to Skills and Education Group Access, toalling £102,129 (2023.. £Nil). At the year end a balance of £100,061 was owed by Skills and Education Group Access12023.' £2,026 owed to Skills and Education Group Access). BIIAB Qualifications Limited {BIIAB), a subsidiary of the parent company Skills and Education Group, recharged costs of £127,712 {2023.' £100,265) to the charity. At the year end a balance of £122,595 was owed to BIIAB (2023.. £5.118 due from BIIAB). D Mcvean Is also a Director of Moulton College. During the year income of £nll (2023.. £211) was received from the College for the provision of charitable servlces. There are no amounts outstsnding at the year end (2023.. £ Nil). S Segal is also a Director of Association of Employment and Learning Providers Ltd. During the year purchases of £Nil 12023.. £12,000) were made for the provision of charitable services. There are no amounts outstanding at the year end. S James is al80 a Director of RMI SC Limtted. During the year income of £27,010 (2023.. £nill was received from the company for the provision of charitable sep4ices. The charity also purchased seNices totalling £1 S,84012023.' £Nil) from the company. There are amounts owing to company at the year end of £540 (2023., £ Nil). A Traynor is also a Director of Lelcester College. During the year income of £22,464 (2023.. £nll) was received trom the College for the provision of charitable services. There are amounts of £nil outstanding at the year end (2023.. £ Nil). G Clipson is also a Chair at WaDMckshire College. During the year income of £480 12023.. £nil) was received from the College for the provision of charitable services. There are amounts of £102 outstanding at the year end (2023.. £ Nil). 22. Controlling party The charity is managed and controlled by its immediate and ultimate parent Skills and Education Group, which is a registered charity (number 1004087) and a company limited by guarantee incorporated in England and Wales (company number 02640936). The most senior parent entity producing publidy available consolidated financial statements is Skills and Education Group. These financial statements are available upon request from Skills and Education Group, Robins Wood House, Robins Wood Road, Aspley, Nottingham, Nottinghamshire, NG8 3NH. Page 32