Registered Charity Number - 1105746 Company Registration Number – 4717124
The Voluntary and Community Sector Learning and Skills Consortium
Enable
(A Charitable Company Limited by Guarantee)
Annual Report and Financial Statements
31 July 2020
“To enable the Volunatary and Community Sector to support the sustainable economic development of their communities through services that address local learning, skills and employment needs”
Enable, 3-5 Stoney Street, Nottingham NG1 1LG
Tel: 0115 7100 200 Email: enquiries@enable.uk.net Web: www.enable.uk.net
The Voluntary and Community Sector Learning and Skills Consortium
Charity Reference and Administrative Details
Charity registration number: 1105746
Company registration number: 4717124
Trustees
A S Bunn T A Cullen M G Henry B Palmer N Hufton S Azam L Gibson CEO I Newton Registered office 3-5 Stoney Street Nottingham NG1 1LG Auditor Smith Cooper Audit Limited 2 Lace Market Square Nottingham NG1 1PB Bankers Unit Trust Bank Nine Brindleyplace Birmingham B1 2BH
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The Voluntary and Community Sector Learning and Skills Consortium
Report from the Chair of Trustees For the year ended 31 July 2020
I ended my report last year celebrating our new award, The David Buckley Award for Lifetime Achievement in the Learning and Skills Sector, presented to Don Hayes MBE, our former CEO. It is with unbelievable sadness that I have to report that Don passed away in April this year. Don was a giant of the learning and skills sector having spent the greatest part of his working life ensuring that people could access training and education despite any disadvantages that they were experiencing. He was involved in ENABLE from the very start and became our first CEO, a post he remained in until his much deserved retirement in 2018. I worked alongside Don for many years and I know that many will remember Don with affection and pride for his achievements, and mourn his passing greatly.
The year in review has been a year of two halves. The first half in the months before COVID19 took a hold and the second half in the first wave of lockdown and early recovery. There is no doubt that the Coronavirus pandemic will ensure that 2020 will be remembered as a very challenging year for the whole country, and the learning and skills sector has had its particular challenges as a part of this. The many months of lockdown, the lack of ability to deliver face to face sessions and the need to retrain people to work online has not been easy for us. Many of our delivery partners work with disadvantaged people who do not have easy access to online training and we have worked hard to ensure our important work continues to be a contribution through these difficult times.
I am pleased to report that despite the challenges, this has once again been a successful year of development for ENABLE, keeping the voluntary and community sector’s voice high on the learning and skills agenda. We have continued to attract new funding and create new opportunities for our communities.
Notable achievements include 80% Apprenticeship achievement rate, 82% Advanced Learner Loan achievement rate and 95% achievement rate for our Adult Education Budget courses.
I would like to thank my fellow Trustees for their continued support during this unusual year, our staff for their willingness to adapt and change and keep our work going from home or the office as required, and all of the many voluntary and community sector learning and skills organisations that have gone much further than the extra mile this year.
Teresa Cullen
Chair of Trustees
Date:
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The Voluntary and Community Sector Learning and Skills Consortium
Report of the Board of Trustees For the year ended 31 July 2020
(Incorporating the Directors’ report)
The Trustees present their report and the audited financial statements of the charity for the year ended 31 July 2020. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published on 16 July 2014 (as amended by Update Bulletin 1 published on 2 February 2016) .
Trustees of the charity
The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end were as follows:
A S Bunn T A Cullen M G Henry B Palmer N Hufton S Azam L Gibson
Objectives and Activities of Enable
The objectives of Enable as set out in the Memorandum and Articles of Association are to develop the capacity and skills of the members of the socially and economically disadvantaged communities of England in such a way that they are better able to identify, and help meet, their needs and to participate more fully in society, in particular by:
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Assisting such charities and voluntary organisations to play a full role in the local and national learning and skills agenda and to make the most effective use of funding opportunities.
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Providing support and guidance for charitable purposes by charities and voluntary organisations operating in the area of benefit;
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Providing high quality, vocational and non-vocational, learning opportunities.
Our Mission Statement
- To enable the Voluntary and Community Sector to support the sustainable economic development of their communities through services that address local learning, skills and employment needs
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The Voluntary and Community Sector Learning and Skills Consortium
Our Aims
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To promote and facilitate information sharing, consultation and partnership development regarding learning, skills and employment with and within the Voluntary and Community Sector;
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To provide high quality, integrated employment and skills programmes through a consortium of Voluntary and Community Sector providers;
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To meet the capacity building and continuing professional development needs of Voluntary and Community Sector learning and skills providers;
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To meet the Workforce Development needs within the Voluntary and Community Sector;
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To ensure there is effective and sustainable infrastructure support for learning and skills within the Voluntary and Community Sector.
Public Benefit Statement
This report sets out Enable’s aims and the priorities and reports on the activity and successes in the year to the 31 July 2020, as well as explaining the plans for the current financial year. Enable’s activities benefit:
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Voluntary sector organisations that provide learning opportunities to local people by partnering with them and enhancing their ability to deliver learning through accessing funding on their behalf and providing training and support to enable them to increase the quality and scope of their provision to their beneficiaries;
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Individuals in deprived communities benefit from the provision of free learning opportunities. This increases their levels of skills and knowledge and enables them to access a greater range of employment opportunities;
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The interaction between the governmental bodies and the voluntary and community sector in the East Midlands.
The Trustees have considered Public Benefit and concluded:
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That the aims of the organisation continue to be charitable;
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That the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need;
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That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and
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That there is no detriment or harm arising from the aims or activities.
Achievements and performance
2019/2020 given the effects of COVID-19 saw us grow some of our existing business and develop new opportunities that will support our activities over the new three years.
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The Voluntary and Community Sector Learning and Skills Consortium
As with 2018/2019, we are able to report a positive financial performance for 2019/2020.
During the year in review, we have continued to grow our existing contracts and have achieved an increased level of success in securing new business opportunities and contracts for the voluntary and community sector consortium.
We remain well established within the regional further education landscape and have continued to strengthen our profile in Northamptonshire. We play a unique role in supporting voluntary and community sector organisations’ involvement in the delivery of local learning and skills provision.
The main services provided and the progress against our aims in 2019/2020
To promote and facilitate information sharing, consultation and partnership development regarding learning, skills and employment with and within the Voluntary and Community Sector
We play a key role in ensuring the Voluntary and Community Sector has a voice within the relevant local planning and decision-making structures for employment and skills. This involves ensuring the sector is represented at the key strategic partnerships operating across the region. During the year we have continued to represent the sector (mainly by Teams and Zoom) on the D2N2 Local Strategic Partnership Provider Advisory Board, D2N2 Public Sector Compact Apprenticeship Working Group, Nottingham City Employment and Skills Strategy, Enterprising East Northants – Skills Partnership and ESFA Provider Reference Group.
We work across the East Midlands with Voluntary and Community Sector organisations in each of the region’s counties engaged in delivering learning and skills contracts. In the past year we have increased our presence and grown our membership in Derbyshire, Nottinghamshire, and Northamptonshire, and engaged with new groups in Leicestershire.
A key role for Enable is to provide members with up-to-date relevant information about changes, developments and opportunities within the learning, skills and employment arena. This is done through our growing social media presence through Facebook, LinkedIn and Twitter.
To provide high quality, integrated employment and skills programmes through a consortium of Voluntary and Community Sector providers.
Enable continues to support VCS providers in accessing funding to provide learning and skills programmes that meet local needs, where they are unable to do so independently.
Enable has been successful in securing new contracts that have helped the business to grow. For example, Enable commenced the delivery of an European Social Fund project, the iProgramme supporting unemployed and employed individuals to upskill their digital skills.
Enable commenced the delivery of the GAINN project funded by the Community Fund in Northamptonshire to support socially isolated and vulnerable young people. This project provides young people with 36 weeks’ worth of support as the transition through the three stages, with our goal of helping them to develop confidence, resilience, volunteering, training, and employment at the end project. Unfortunately, COVID has impacted significantly on the project and the young people, especially on their mental health, as we have been restricted in meeting up with the face to face and engage in group social activities.
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The Voluntary and Community Sector Learning and Skills Consortium
To meet the capacity building and continuing professional development needs of Voluntary and Community Sector learning and skills providers.
Enable is committed to building the capacity of voluntary and community sector organisations in order that they can effectively deliver high quality learning and skills provision within their communities. Accordingly support for quality improvement and the accreditation of learning is built into the organisation’s core activities.
We have continued to raise standards and increase success rates across all our programmes. This involves working with delivery partners to achieve demanding targets and standards of quality, we provide ongoing support to all Voluntary and Community Sector organisations we partner with in the form of on-site mentoring, standardisation meeting and workshops.
To meet the Workforce Development needs within the Voluntary and Community Sector
Enable aims to encourage and support workforce development within the Voluntary and Community Sector, raising awareness of the opportunities available and helping organisations identify their needs and access the appropriate support.
Supporting the growth of Apprenticeships within the Voluntary and Community Sector remains a high priority for the organisation. During 2019-2020, through a contract with the Education and Skills Funding Agency, we achieved 80.6 percent achievement rate, which is the highest rate we have ever achieved and more than 15 percent higher than the national average. We are also achieved 90 percent achievement rate for our Advanced Learner Loans qualifications.
Principal risks and uncertainties
The Board of Trustees has been reviewing, during the year, the potential risks to which the charity is exposed, particularly business, operational and financial risks. The board are working towards producing procedures and reporting regimes to manage and reduce any identified risks. The funding is generally short term, and the Trustees view is that the greatest risk to the organisation is continuation of such funding. The Board are aware of the challenging times ahead given the ESFA’s decision to review sub-contracting arrangements, which is a real threat to how we engage and fund our delivery partners in the future. We have and are lobbying the ESFA to look at the impact a reduction of subcontracting will have on the work Enable undertakes, how it will affect our delivery partners and more importantly our learners who often live in some of the most deprived communities in the country. COVID-19 has and will remain a risk, particularly in relation to recruitment of apprenticeship and have seen a reduction in starts compared to the previous year.
Financial Review
Enable finishes the year with a surplus of £30,624 for the 12 months ending the 31 July 2020 strengthening reserves to total £127,848 at the end of the year.
In assessing the going concern position for Enable for the 12 months from the date of approval of the accounts, the trustees have prepared detailed financial forecasts and are confident that there will continue to be sufficient cash available to meet the liabilities as they fall due.
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The Voluntary and Community Sector Learning and Skills Consortium
On this basis the trustees believe that the preparation of the financial statements on a going concern basis is appropriate and the financial statements do not include adjustments that would result if Enable were to be unable to continue as a going concern.
At the year end the cash position of £142,553 is higher than the prior year of £55,642. The year end debtors figure of £110,446 is lower than the previous year’s figure of £150,029. The debtors figure in both years mainly relates to accrued income from monies owed to Enable which has been received in full post year end. The year end creditors figure of £130,240 due within one year is higher than the last year’s figure of £112,564 these figures include £43,050 and £2,304 of deferred income on restricted funds for the respective years. There are no creditors falling due after more than one year.
Enable, in common with other education and training providers, remains vulnerable to the possibility of funds being clawed back by funders at a later date following audit. Enable is not aware at the present of any risk in regard to any of its current projects.
Reserves policy
The Trustees have examined Enable’s requirement for available reserves and estimate that £250,000 in general unrestricted reserves would be needed in order to:
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Be able to meet our obligations to vulnerable clients when funding streams are abruptly terminated;
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Covers amounts that would be owed to providers and staff in the event of a termination or reduction of activities;
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Meet arising liabilities that are not covered by project funding;
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Cover short term funding requirements (for instance where an upfront amount of expenditure is needed to start a project);
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Provide cover against termination costs of a project;
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Provide working capital in the event that grant income is delayed;
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Demonstrate financial stability in order to be able to be successful in bidding for large scale projects;
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Pilot development projects.
Enable currently has £127,848 in general reserves (£97,224 in 2019.)
Plans for future periods
Our priorities for 2020/21 include:
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Continuing to grow and diversify our existing funded programmes and securing new sources of funding so that Voluntary and Community Sector organisations are able to increase their contribution to local and national priorities and targets;
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Increasing the take up of workforce development within the Voluntary and Community Sector, particularly Apprenticeships, Advanced Learner Loans, European Social Fund iProgramme (Digital Skills), European Social Fund Leadership and Management and European Social Fund Science, Technology, Engineering and Maths.
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Working towards an OfSTED inspection grade 1 across all inspection areas;
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Successfully reapply for the Matrix Standard;
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The Voluntary and Community Sector Learning and Skills Consortium
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Maintaining a strong network of VCS providers across all counties of the region and hold Members’ meetings and an annual conference incorporating our awards ceremony;
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Continue to developing partnerships that enable us to respond to regional funding opportunities – for example European Social Fund programmes;
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Continue to deliver our GAINN project – legacy funding from the Talent Match programme.
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Ensuring the VCS is effectively represented;
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Increasing the number of our members and developing a new membership offer;
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Increase the number of members delivering accredited programmes;
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Promoting the Enable brand and increasing our social media presence;
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Increasing the variety of Advanced Learner Loan qualifications;
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Working with employers to transfer their apprentice levy underspend;
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Working with our members to provide routeways for social mobility and inclusive employment
Structure, Governance and Management
Governing Document
The Nottingham and Nottinghamshire Voluntary and Community Learning and Skills Consortium was incorporated by guarantee on the 31 March 2003 (registered company number 4717124). On 8 July 2014, the company changed its name to The Voluntary and Community Sector Learning and Skills Consortium to reflect the wide geographical coverage it now has.
The company operates under the name Enable. It does not have share capital and has obtained exemption under Section 30 of the Companies Act 1985 to dispense with the word Limited as part of the company name. Charitable status was granted on the 6 September 2004 (registered charity number 1105746). The guarantee of each member of the Board 'is limited to £1. The governing document is the Memorandum and Articles of Association of the company and the members of the Board of Trustees are the Directors of the company. The company is currently based on Floors 1-4, 3-5 Stoney Street, Nottingham, NG1 1LG.
Directors/Trustees
The Trustees also serve as Directors of the company and guarantee £1 each.
Appointment of Trustees
The minimum number of Trustees is eight and the maximum twenty chosen as follows:
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Up to eight persons elected by and from the membership;
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Up to eight persons elected from Voluntary and Community Sector umbrella or infrastructure bodies or networks and communities of interest;
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The Voluntary and Community Sector Learning and Skills Consortium
- Up to four persons, who may be but need not be members of the Company, co-opted by the Board of Trustees for their appropriate skills and experience of benefit to Enable; the number of co-opted members at any time ls a maximum of one-third of the total Board.
The current Trustees are as follows:
Ms T Cullen Chair Mrs N Hufton Vice Chair Mr B A Palmer Mr M Henry Mr A Bunn Mr S Azam Mr L Gibson
The Board of Trustees shall endeavour to ensure that the Board reflects the diverse needs and
interests of the communities it serves. Each Trustee is required to attend equality and diversity training on a regular basis. Enable seeks to identify areas of under representation on the Board and seeks to remedy this by requesting members to put forward appropriate candidates.
Trustee induction and training
Once appointed the Trustees have a series of induction sessions which includes a discussion with the Chief Executive on Enables' activities, the receiving of information on the roles and responsibilities of company directors and Trustees and a copy of the Trustee handbook.
We are fortunate that the majority of our Trustees are drawn from voluntary sector organisations and do not require an induction to the sector and most of their training needs are met by their employer. Enable is an organisation that provides training through its member organisations and Trustees are actively encouraged to participate in appropriate training.
Organisation and decision making
The Board currently convenes quarterly and holds additional strategic planning days. A finance sub-committee exists to scrutinise accounting and other financial information to be presented to the Board. In addition, other ad hoc committees are set up by Trustees and staff to fulfil changing operational requirements.
Enable Trustees have delegated management of Enable to the Chief Executive who reports on the performance against the strategic and operational plans approved by the Trustees.
The Chief Executive, Ian Newton, has responsibility for planning and developing the services and strategies for Enable within clear policies and protocols set by the Trustees. The Chief Executive ensures that the staff team is recruited and supported to provide the skills and expertise to run a specialist organisation like Enable.
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The Voluntary and Community Sector Learning and Skills Consortium
Related parties and co-operation with other organisations
During the year there have been transactions with related organisations. Once a year each Trustee completes a register of interests. The Trustees confirm that these transactions are at arm's length and the trustees cannot influence the terms of the transactions. The related party transactions are disclosed within Note 9 to the accounts,
Pay policy for senior staff
The trustees consider themselves and the senior management team to comprise the key management personnel of Enable, in charge of directing and controlling, running and operation the charity on a day to day basis.
All the trustees give their time freely and no trustee received remuneration nor claimed expenses in the year. The related part transactions are disclosed with Note 9 to the accounts.
Enable aligns all senior staff pay to the appropriate National Joint Council salary grade.
Trustees’ responsibilities statement
The Trustees (who are also directors of The Egalitarian Trust 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 the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
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.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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The Voluntary and Community Sector Learning and Skills Consortium
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
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so far as that Trustee is aware, there is no relevant audit information of which the charity’s auditors are unaware, and
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that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charity’s auditors in connection with preparing their report and to establish that the charity’s auditors are aware of that information.
This report was approved by the Trustees and signed on their behalf by:
Teresa Cullen Chair of Trustees
Date:
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The Voluntary and Community Sector Learning and Skills Consortium
Independent Auditor’s Report to the members of The Voluntary and Community Sector Learning and Skills Consortium
Opinion
We have audited the financial statements of The Voluntary and Community Sector Learning and Skills Consortium (the 'charitable company') for the year ended 31 July 2020 which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, 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:
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give a true and fair view of the state of the charitable company’s affairs as at 31 July 2020, and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The Trustees are responsible for the other information. The other information comprises the information included in the Trustee’s Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the
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The Voluntary and Community Sector Learning and Skills Consortium
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report (incorporating the director’s report) for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
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 the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Statement of Trustees' Responsibilities, 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.
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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.
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.
Sarah Flear (Senior Statutory Auditor) for and on behalf of
Smith Cooper Audit Limited
Chartered Accountants and Statutory Auditors 2 Lace Market Square Nottingham NG1 1PB
Date:
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The Voluntary and Community Sector Learning and Skills Consortium
Statement of Financial Activities (Incorporating the Income & Expenditure Account) Year ended 31 July 2020
| Note Income |
Unrestricted Restricted Total Total Funds Funds 2020 2019 2020 2020 £ £ £ £ |
|---|---|
| Charitable Activities 3 Other income 5 |
926,942 59,050 985,992 1,258,582 31,425 - 31,425 - |
| Total Income | |
| 958,367 59,050 1,017,417 1,258,582 |
|
| Resources Expended | |
| Expenditure on charitable activities 6 Total Expenditure Net movement in Funds Funds b/fwd as at 1st August 2019 Funds c/fwd as at 17 31st July 2020 |
927,743 59,050 986,793 1,257,383 |
| 927,743 59,050 986,793 1,257,383 |
|
| 30,624 - 30,624 1,199 |
|
| 97,224 - 97,224 96,025 127,848 - 127,848 97,224 |
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The Voluntary and Community Sector Learning and Skills Consortium
Balance Sheet As at 31 July 2020 Company registration no: 4717124
| Notes Fixed Assets |
£ £ £ £ 2020 2019 |
£ £ £ £ 2020 2019 |
|---|---|---|
| Tangible Assets 11 |
5,089 4,117 |
|
| Current Assets | ||
| Debtors 12 Cash at Bank and in Hand |
110,446 142,553 |
150,029 55,642 |
| 252,999 205,671 |
||
| Liabilities | ||
| Creditors falling due within one year 13 |
(130,240) (112,564) |
|
| Net Current Assets/(Liabilities) | 122,759 93,107 |
|
| Total Assets less Current Liabilities | 127,848 97,224 |
|
| Net Assets | 127,848 97,224 |
|
| Funds of the Charity 15 |
||
| Unrestricted Funds Restricted Funds |
127,848 97,224 - - |
|
| Total Funds | 127,848 97,224 |
The financial statements were approved and authorised for issue by the board and signed on its behalf by:
Teresa Cullen Chair of Trustees
Date:
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The Voluntary and Community Sector Learning and Skills Consortium
Statement of Cash Flows Year ended 31 July 2020
| Note | 2020 £ |
2019 £ |
|---|---|---|
| Cash used in Operating Activities 19 |
89,607 | (248,576) |
| Cash Flows from investing activities | ||
| Interest income Purchase of tangible fixed assets Disposal of tangible fixed assets |
124 (2,820) - |
405 (1,686) 1,080 |
| Cash used in investing activities | (2,696) | (201) |
| Increase in cash and cash equivalents in the year | 86,911 | (248,777) |
| Cash and cash equivalents at the beginning of the year | 55,642 | 304,419 |
| Cash and cash equivalents at the end of the year | 142,553 | 55,642 |
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Notes to the Financial Statements
1. Summary of significant accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The Voluntary and Community Sector Learning and Skills Consortium is a charitable company, limited by guarantee, incorporated in England within the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity's operations and principal activities are to enable the voluntary and community sector to support the sustainable economic development of their communities through services that address local learning, skills and employment needs.
The financial statements have been prepared in accordance with 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 (FRS102) (effective 1 January 2015) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Voluntary and Community Sector Learning and Skills Consortium meets the definition of a public entity under FRS 102.
The financial statements are prepared on a going concern basis under the historical cost convention. The Trustees acknowledge that low reserves indicate the existence of uncertainty but do not consider this uncertainty to be material. The Trustees are of the view that the continued profitability of the charity in the recent years will continue, having eradicated the negative reserves on the unrestricted funds, and on that basis the trustees confirm that the charity is a going concern.
The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £1.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
b) Going concern
In preparing the financial statements on a going concern basis, the Board of Trustees have paid due regard to relevant forecast financial information – included cash flows and funding from key supporters – and factored in sensitivities and uncertainties affecting the charity from the ongoing coronavirus pandemic. Further comment has been made in the Trustees’ Report. In the Trustee’s opinion, the charity is a going concern for a minimum of twelve months from the date of the approval of the financial statements.
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The Voluntary and Community Sector Learning and Skills Consortium
c) Income recognition
Incoming resources from charitable activities included grants for the specific provision of goods and services to be provided as part of Enable's charitable activities to its beneficiaries. Upon receipt, these resources are held in deferred income until the income has been earned. Income is earned as follows:
-
Where measurable stages of work have been completed, income is recognised to the value of the completed work.
-
Where measurable outputs are specific as a condition of the grant, income is recognised on the basis of the proportion of the outputs completed compared to total outputs to be delivered.
-
Where outputs are specified as a condition of the grant, but are not readily measurable, income is recognised on the basis of the staff time needed to deliver those outputs. Here income is recognised on the basis of the proportion of the staff time incurred to date compared to the total staff time necessary to deliver the outputs.
-
Where the right to income does not arise until the occurrence of a critical event, income is not recognised until that event occurs.
-
Where the grant allows for the Charity to make a surplus, the surplus is recognised in line with the proportion of the project completed.
d) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of Enable. Restricted funds are monies which the donor has specified are to be solely used for particular projects undertaken by Enable.
e) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
f) Support costs
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs.
g) Tangible fixed assets
Items of expenditure of less than £250 are expensed to the Statement of Financial Activities in the year in which they are incurred. Enable depreciates its fixed assets over a period of 5 years on a straight-line basis.
h) Debtors
Trade and other debtors are recognised at the settlement amount after any discounts offered. Prepayments are valued at the amount prepaid net of discounts.
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The Voluntary and Community Sector Learning and Skills Consortium
i) Creditors and provisions
Creditors and provisions are recognised where Enable has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
j) Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.
k) Pensions
Enable contributes up to 5% of gross salary to a money purchase scheme nominated by staff members to match contributions made by them. The pension charge in the accounts represents the amounts payable by Enable in respect of the year. There are four members of staff for whom retirement benefits are accruing under such schemes as at 31 July 2020.
l) Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Management consider there to be no significant accounting estimates.
m) 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. Legal Status of the Charity
Enable is a company limited by guarantee and has no share capital.
3. Income from Charitable Activities
| Gross Income from SFA Contracts Funding from the Big Lottery - Talent Match Funding from the Big Lottery - GAINN |
Restricted Funds Unrestricted Funds Restricted Funds Unrestricted Funds 2020 2020 2019 2019 £ £ £ £ 926,942 942,803 - 315,779 59,050 - |
|---|---|
| 59,050 926,942 315,779 942,803 |
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The Voluntary and Community Sector Learning and Skills Consortium
4. Investment income
All of the charity's investment income of £124 (2019: £405) arises from money held in interest bearing bank accounts and is unrestricted.
5. Other income
| Other income | |
|---|---|
| Coronavirus Job Retention Scheme grant Other Covid-19 relief funding |
2020 2019 £ £ 16,004 - 15,421 - |
| 31,425 - |
6. Analysis of Expenditure on Charitable Activities
| SFA Contracts GAINN Total 2019 £ £ £ £ |
|
|---|---|
| Direct Project Costs Support Costs - see Note 7 Governance Costs Central Premises Costs |
575,186 13,697 588,883 715,326 315,342 38,987 354,329 495,267 20,220 - 20,220 19,680 16,995 6,366 23,361 27,110 |
| 927,743 59,050 986,793 1,257,383 |
Expenditure on charitable activities was £986,793 (2019 - £1,257,383) of which £927,743 (2019: £941,604) was unrestricted and £59,050 (2019 £315,779) was restricted.
7. Analysis of Governance and Support Costs
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining costs are disclosed as support costs .
| General Support Function Total £ £ £ |
2019 £ |
|
|---|---|---|
| Audit Fees Accountancy Services & Administration Support Salaries and related Costs |
2,550 8,220 10,770 18,777 12,000 30,777 301,101 - 301,101 |
10,655 32,615 438,539 |
| General Office | 31,901 - 31,901 |
33,138 |
| 354,329 20,220 374,549 |
514,947 |
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The Voluntary and Community Sector Learning and Skills Consortium
8. Net income/(expenditure) for the year
This is stated after charging:
| This is stated after charging: | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Auditors' remuneration: | ||
| Audit Fees | 8,220 | 7,680 |
| Accountancy Fees | 3,790 | 4,330 |
9. Staff costs
| Average number of employees | 2020 2019 11 21 |
|---|---|
| 2020 2019 £ £ |
|
| Salaries Social Security Costs Pension Costs Voluntary Redundancy Costs |
265,755 391,108 13,870 17,609 9,015 8,734 5,775 - |
| 294,415 417,451 |
No employees had benefits in excess of £60,000 during the year (2019: £nil). Pension costs are wholly charged to unrestricted funds.
The charity trustees were not paid nor received any other benefits from employment with the charity, neither were they reimbursed expenses during the year (2019: £nil).
The key management personnel of the charity comprise the trustees, the Chief Executive Officer and the Senior Contract Managers. The total employee benefits of the key management personnel of the charity were £139,642 (2019: £127,284)
10. Related Party Transactions
The charity enjoys a close working relationship with other voluntary sector groups who nominate trustees.
The following is a summary of income given by entities where a trustee is employed:
| 2020 | 2019 | |||||
|---|---|---|---|---|---|---|
| £ | £ | |||||
| Precise HR | Ms Nikki Hufton | Trustee | 200 | - | ||
| Communities Inc. CIC | Mr Michael Henry | Trustee | 100 | - |
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The Voluntary and Community Sector Learning and Skills Consortium
The following is a summary of purchases made from entities where a trustee is employed:
| 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|
| £ | £ | ||||||
| Precise HR | Ms Nikki Hufton | Trustee | 1,020 | 789 | |||
| Hungerhill Trading/Renewal Trust | Mr Safdar Azam | Trustee | 11,445 | 13,596 | |||
| Outstanding balances as at 31 July 2020: | |||||||
| 2020 | 2019 | ||||||
| £ | £ | ||||||
| Within Trade Creditors | |||||||
| Hungerhill Trading/Renewal | Trust | 200 | - |
11. Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12. Tangible Fixed Assets
| ICT Equipment & Software £ |
|
|---|---|
| Cost As at 1st August 2019 Additions Disposals As at 31st July 2020 Depreciation As at 1st August 2019 Charge for Year Eliminated on disposals As at 31st July 2020 |
15,219 2,820 (2,523) |
| 15,516 | |
| 11,102 1,848 (2,523) |
|
| 10,427 | |
| Net Book Value As at 31st July 2019 |
4,117 |
| As at 31st July 2020 | 5,089 |
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The Voluntary and Community Sector Learning and Skills Consortium
13. Debtors
| Debtors | |
|---|---|
| 2020 2019 £ £ |
|
| All amounts due within one year | |
| Trade Debtors Accrued Income Prepayments and Other Debtors |
49,569 52,586 53,946 88,906 6,931 8,537 |
| 110,446 150,029 |
14. Creditors
| 2020 2019 £ £ |
|
|---|---|
| Amounts due within one year | |
| Trade Creditors Deferred Income Accruals Short -term compensated absenses (holiday pay) Other Creditors |
40,906 67,981 43,050 2,304 35,899 29,005 3,000 3,000 7,385 10,274 |
| 130,240 112,564 |
15. Reconciliation of Deferred Income
| 2020 2019 £ £ |
|
|---|---|
| Deferred income 1st August 2019 Resources deferred during the year Amounts released during the year Deferred income 31st July 2020 |
2,304 186,287 43,050 2,304 2,304 186,287 |
| 43,050 2,304 |
The deferred income relates to restricted GAINN funding, and in 2020, money taken for courses to be run in the next year and is recognised when expended. The funding is closely monitored and reports are submitted quarterly with regard to spending against clear performance criteria within the contract. Furthermore, the contract states any unused element of the grant must be repaid on demand if not used at the end of the contract term.
16. Accounting Treatment of Funds
Unrestricted Funds
These funds are available for the Trustees to apply for the general purpose of the charity as set out in its Memorandum of Association. The Trustees may set aside part, or all of the charity's unrestricted funds to be used for particular purposes in the future.
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The Voluntary and Community Sector Learning and Skills Consortium
Restricted Funds
Restricted funds can only be used for particular restricted purposes with the objects of the charity. Restrictions arise where funds are provided for particular restricted purposes.
At the year end there was £41,706 (2049: £nil) of unspent funds in relation to a restricted grant received from the National Lottery Community Fund received during the year.
17. Statement of Funds
| Bal c/fwd at Incoming Resources Bal c/fwd at 1st August 2019 Resources Expended 31 July 2020 |
|
|---|---|
| £ £ £ £ |
|
| General Unrestricted Funds Restricted Funds - National Lottery Community Fund GAINN |
97,224 958,367 (927,743) 127,848 - 59,050 (59,050) - |
| Total Funds | 97,224 1,017,417 (986,793) 127,848 |
There are no funds in Enable that are classified as designated unrestricted funds.
18. Analysis of net assets between funds
| Unrestricted Restricted Funds Funds Total 2019 £ £ £ £ |
|
|---|---|
| Tangible Fixed Assets Debtors Cash at Bank and in hand Creditors |
5,089 - 5,089 4,117 110,446 - 110,446 150,029 142,553 - 142,553 55,642 (130,240) - (130,240) (112,564) |
| 127,848 - 127,848 97,224 |
19. Contingency
Some funders make payments dependent on detailed submissions made by Enable. The right is reserved to audit these submissions, retrospectively, and insist that information is recorded in particular formats. Every effort is made to comply with funders' requirements and to maintain records but there is a small risk at audit, some grants may be disallowed. Enable is not aware of any known risk in this respect.
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The Voluntary and Community Sector Learning and Skills Consortium
20. Analysis of net assets between funds
| Analysis of net assets between funds | |
|---|---|
| 2020 2019 £ £ |
|
| Net movement in funds Deduct interest shown in investing activities Decrease (increase) in debtors Increase (decrease) in creditors Depreciation |
30,624 1,199 (124) (405) 39,583 (41,686) 17,676 (208,966) 1,848 1,282 |
| Net cash generated by operating activities | 89,607 (248,576) |
21. Pension commitments
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £3,671 (2019: £4,732). Contributions of £718 (2019: £1,316) were payable to the scheme at the end of the year and are included within other creditors.
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