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2023-07-31-accounts

WEA statutory annual report and financial statements

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Workers’ Educational Association

WEA trustees’ annual report and accounts

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Contents

Introduction 3
Reference and administrative details 4
Objectives and activities 6
Strategic report 10
Financial review 20
Risk management 23
Structure, governance and management 26
Trustees’ declaration 35
Statement of corporate governance and internal control 36
Governing body’s statement on regularity 37
Independent auditor’s report 38
Independent reporting accountant’s report 41
Financial statements 42

The Workers’ Educational Association (“WEA”) is a charitable company limited by guarantee (number 2806910), incorporated on 5 April 1993 and registered as a charity in England and Wales (number 1112775) and Scotland (number 2806910).

Registered office:

4 Luke Street, London, EC2A 4XW

Introduction

The members of the Board of Trustees of the WEA, who are the Trustees of the charity, and Directors and Members of the Company, have pleasure in submitting the report and accounts for the year ended 31 July 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the attached financial statements and comply with the charitable company’s Articles of Association, applicable law and regulations, and:

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and also constitutes a directors’ report as required by section 418 of the Companies Act 2006.

The Governance arrangements are explained in more detail in the Structure, Governance & Management section on page 26.

Further information on WEA’s activities during the year and the impact these activities have had on the communities it serves is available in the Impact Report, separately published in October 2022 and available on the WEA website.

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Reference and administrative details

Trustees

The following trustees served on the Board during the year and to date:

John Widdowson (Chair)

Catherine Armor (appointed 01/11/2023) Robin Cook Tracey Irving Craib (appointed 01/11/2023) Kevin Doyle (appointed 01/10/2022) Marion Flett (resigned 12/10/2023) Jon Gamble (resigned 31/07/2023) Malcolm Grady Christine Grant Jamey Johnson (appointed 01/11/2023)

Abda Khan (appointed 01/11/2023) Pat Kynaston Geoff Layer (Vice Chair) Stephanie Mason (appointed 01/11/2023) Karen McArdle (appointed 01/10/2022) Lindsay Pearson Marc Sherland (resigned 30/09/2022) Peter Threadkell Narinder Uppal (resigned 31/07/2023)

Company Secretary

Kathleen Formosa

Leadership team

Chief Executive & General Secretary

Director of Finance & IT Director of Finance & IT Director for Quality & Learner Services Director for WEA Scotland Director of Education (Community Learning) Director of Education (Skills & Employability) Director for Marketing, Membership & Income Growth Director of Governance Director of People & Culture Head of Human Resources & Organisational Development

Simon Parkinson

Dympna McCoy (resigned 14/04/2023) Shaun Tyndall (appointed 28/08/2023) Preeya Buckley Ray McCowan Katie Easey Chris Morgan James Ward

Kathleen Formosa

Angie Evans (appointed 23/01/2023) Margaret Johnson (resigned 31/08/2022)

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Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

Bankers

Royal Bank of Scotland 250 Bishopsgate Spitalfields, London EC2M 4AA

Bank of Scotland 300 Lawnmarket Edinburgh EH1 2PH

Solicitors

Bates Wells 10 Queen Street Place London EC4R 1BE

Balfour & Manson 54-66 Frederick Edinburgh EN2 1LS

Pension fund trustees and administrators

Teachers’ Pensions 11b Lingfield Point Darlington DL1 1AX

Scottish Public Pension Agency 7 Tweedside Park Tweedbank Galashiels TD1 3TE

The People’s Pension (B&CE Holdings Ltd.) Manor Royal Crawley RH10 9QP

The Pensions Trust (closed to future accrual 31/08/2019) Verity House 6 Canal Wharf Leeds LS11 5BQ

WEA registered office

4 Luke Street London EC2A 4XW

T. +44 (0) 20 7426 3450 W. wea.org.uk

Registered Charity Number (England and Wales): 1112775 (Scotland): SC039239

Registered Company Number (England and Wales): 2806910

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Objectives and activities

In fulfilment of its charitable objects, to promote adult and general education for the benefit of the community regionally, nationally and internationally based on democratic principles in its organisation and practice, through the participation of its voluntary members, WEA built on its successes from previous years in its achievements during 2022/23, and also addressed some of its areas of development.

WEA embraces the principle that individuals and their communities have the knowledge, skills and desire to drive positive change at the local, regional, national (England and Scotland), and international level. The Association thus recognises that its role is to celebrate local variation and variety whilst serving and supporting local and regional activity.

Throughout 2022/23, WEA’s objectives and activities were aligned with the 2025 Strategy as refreshed in March 2020, demonstrating a commitment to delivering broad adult education across three strategic pillars – Learning for Life; Learning for Work; and Learning that Builds Communities.

WEA continues to negotiate the ongoing impact of Covid-19 on the public purse, and on the individuals and communities it serves. The need to build organisational agility and resilience in response to a rapidly shifting public funding landscape in England and in Scotland, and to respond to the needs and interests of learners has been recognised and has resulted in significant adjustments in WEA’s approach to budgeting, staffing, and governance (particularly local governance). In all areas, the priority has been to ensure that resources were available and in place to give WEA the best chance of achieving its strategic priorities and serving the best interests of learners.

Our learners & learning

An informed, needs-based approach to curriculum planning has enabled our learners to achieve positive outcomes that:

Build confidence for life and work;

These outcomes have underpinned a systematised, more rigorous approach to curriculum planning during the year, and a whole-Association response to emerging opportunities and leveraging specific, successful initiatives developed across England and Scotland. With attention to local needs and to learner interests and aspirations, WEA has sought throughout the year to encourage and support learners in the completion of their learning programmes and to progress into higher level courses or into employment. To this end, the design and implementation of targeted interventions to increase participation and reduce drop-out of courses and qualification pathways was prioritised this year.

WEA has acknowledged the significant shift in public funding toward skills and employability, and away from WEA’s historic strength in delivering community learning, arts/crafts, health and wellbeing, and cultural learning. It has responded by building a skills for work offer that includes both accredited and non-accredited provision, and that is supported by a growing range of provision in maths, English, and ESOL. As a relatively new entrant to the employability training arena, WEA has worked to build awareness of its capabilities and manage with less of a track record than more established providers.

WEA has and will continue to ensure that a positive learner experience remains at the centre of all activities and initiatives. Increased focus was placed on the quality of the learner experience throughout 2022/23 in the continued development and refinement of a peer-reviewed class visits programme, and pro-active support for learner progression through WEA programmes.

WEA continued to develop its use of technology to support teaching and learning and has improved its approaches to blended and digitally enabled learning for all provision. The use of Canvas is now embedded into most WEA classes so that learners can, at minimum, complete their learning plans and evaluations online. WEA has also begun to develop asynchronous learning tools in support of its Multiply provision. Consideration will be given to expanding the use of asynchronous learning tools where it makes sense to do so.

Each of the strategic priorities identified during the year regarding learners and learning were underpinned by distinct priorities for Scotland and throughout England. Balancing uniform quality standards while inflecting provision to respond to local variation has supported a positive learner experience alongside increased efficiency and effectiveness in delivering education contracts.

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Scotland: In Scotland, headline subject areas were broadly the same as in England, and as in England are aligned to WEA’s overall strategy and strategic priorities. There was a significant focus on employability provision to progress people at various stages along the skills pipeline and in some cases into work. Literacy, numeracy, and digital literacy also accounted for significant amounts of the provision in Scotland, both to help people into work but also for those who are in work but in low skill, low wage sectors of the economy.

ESOL provision accounted for the largest number of learners in WEA Scotland. ESOL was delivered in all areas of Scotland to a broad range of learners with hugely varying backgrounds and capabilities. As a result, ESOL provision has become increasingly less focused on generic language training and much more about the language delivery being tailored to the context of the individuals and class groups. Examples include ESOL and financial literacy, ESOL for employability and ESOL for family learning and engaging with schools.

In addition to these core areas of provision, a wide range of personal development programmes to assist learners with particularly challenging life circumstances – e.g., long-term unemployed, ex-offenders, those recovering from substance or alcohol addiction, and young adults moving on from looked-after settings – were introduced and developed.

WEA Scotland also has an active membership education programme, notably in Edinburgh, Fife and the Northeast, which looks to prevent loneliness, isolation and dependency through a varied programme of activity that facilitates community engagement and empowers independent individuals.

England: Across England, objectives were set in relation to improving the quality of the learner experience and increasing the use of digital technologies to support teaching and learning. Curricula were developed in response to local need.

Our members & volunteers

WEA is constitutionally an Association of members and views an engaged membership as critical to its longterm success and sustainability. WEA has sought to deepen the engagement with its membership during the year to ensure the Association’s reach, to grow its profile, and amplify its voice as a leading adult education organisation.

Many of WEA’s members are also volunteers for the organisation. Through the year, WEA continued to build on the priorities emerging from the comprehensive volunteer survey undertaken in 2021, including developing and embedding a comprehensive volunteer induction and training programme and automating volunteer recruitment through the HR Amris system.

Our voice

WEA has used its position as the leading organisation in the UK for adult learning to demonstrate the positive difference that adult learning makes. In 2022/23, WEA continued to grow its network of like-minded organisations in the UK and internationally. WEA has strengthened its relationships with national and international organisations in the sector (e.g., Holex, SOLIDAR, IFWEA) engaging them in ways that builds WEA’s profile within the sector, that builds enthusiasm for WEA’s mission and values, and that advances the cause of individual access to lifelong learning generally. WEA also continued to support and engage the All-Party Parliamentary Group on Adult Learning.

Our people

WEA recognises that its people are its greatest asset. In 2022/23, WEA continued its commitment to supporting its paid and voluntary workforce by:

Continuing to develop the skills of WEA volunteers.

WEA continues to work toward Investors in People (“IIP”) Gold accreditation, following the award of IIP silver accreditation in November 2021. The next IIP accreditation review is anticipated in 2024.

WEA also continues to work toward Investors in Diversity (“IID”) accreditation, having achieved provisional IID accreditation in 2021/22.

WEA continues to be a living wage employer.

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Our systems & processes

WEA Trustees agreed an investment of c. £3.4 million in WEA’s digital infrastructure, new systems, and corresponding operations. Whereas the scope of work for this project focused on procurement and scoping in the previous financial year, work on the implementation of digital transformation and digital infrastructure projects began in earnest in 2022/23. Expenditure on digital transformation and digital infrastructure stood at £1.3m at 31 July 2023. Phase one of digital transformation and infrastructure work concluded in 2022/23. Phase two of investment will be carried out over the course of 2023/24.

WEA has maintained CyberEssentials+ accreditation throughout the year and to date.

Our finances

WEA continues to face challenges in the funding environment as devolution continues in England, and government priorities in England and Scotland shift ever increasingly toward skills provision and post-pandemic economic recovery. The growing imbalance between restricted and unrestricted income continues to be a risk that WEA Trustees carefully monitor, as shrinking unrestricted income threatens WEA’s ability to sustain the learner-driven courses and programmes on which much of its reputation has been built.

Throughout 2022/23 WEA has engaged in ongoing dialogue with mayoral authorities to protect its position through grant funding, particularly in areas where it has deep and long-term connections with local communities. WEA has also sought to explore alternative funding routes outside of funds available from the Department for Education (e.g., through UKSPF) in the interest of growing its reach and ensuring adult learners continue to have access to the supportive learning WEA provides.

WEA continues to make efforts to pursue funding wherever it devolves and recognises that the ability to secure renewed funding beyond initial contracts depends on its ability to deliver against specific funding commitments. WEA has initiated efforts to improve its overall approach to bidding for contracts, ensuring that the commerciality of bidding opportunities is rigorously assessed in advance of submitting any bid for funding, and to overall contract monitoring. At the same time, WEA is increasing its efforts to diversify its income, and particularly to find other ways of rebuilding unrestricted income streams to enable greater freedom to invest in its core mission.

The balance of unrestricted vs. restricted income continues to stay around 50/50 and this is likely to remain the case until the next tranche of devolution.

2020/21 2021/22 2022/23
Unrestricted 56% 49% 53%
Income
Restricted 44% 51% 47%
Income

WEA has continued to maintain a strong cash flow profile. It ends the 2022/23 financial year with a self-assessed ESFA financial health rating of “good.”

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Covid-19 recovery

WEA responded positively to the Covid-19 pandemic crisis and was commended by various funders and other organisations for its demonstrated agility in quickly converting to high-quality online learning. From the start of the pandemic, WEA was first and foremost focused on the safety of learners, volunteers, and employees. In all decision-making, people safety and government advice were taken into account in decisions to re-open teaching and learning spaces, and to return to offices.

Impact

WEA continues to support its learners to improve their confidence, develop their skills, get into work and become healthier. Full details of the impact opportunities provided by WEA have had on its learners, and the real and measurable differences WEA has made to individual learners, their communities and society are included in the latest WEA Impact Report, published in October 2022.

WEA continues to emphasise a return to communities rather than a return to offices. Staff and volunteers involved in teaching and otherwise on the frontlines of supporting learners have now returned to teaching in-venue, and to other community-based activity. All WEA offices have reopened but return to office working for back-office staff has been led by the needs and preferences of staff teams. Most staff have opted for some form of hybrid-working, of a few days in office, and other days working at home.

The Board of Trustees and its committees continue to conduct their quarterly business meetings by videoconference. On a termly basis, the Board meets jointly and in-person with the WEA Council for discussion of matters relating to ongoing governance review and development, and advancement of the agreed strategy. In consideration of WEA’s commitment to EDI, all meetings of the Board and its committees now include the option of remote attendance for those members who are unable to travel, or who find it difficult to do so.

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Strategic report

WEA is a leading adult education charity with a legacy stretching back over 120 years. WEA empowers adults through learning at all stages of life, reaching approximately 25,000 learners annually across England and Scotland.

WEA’s purpose is to bring adult education within reach of everyone who needs it, fighting inequality and promoting social justice. WEA empowers adults by bringing great teaching to local communities across England and Scotland with a mission of providing access to education for adults right on their doorstep. WEA believes that the opportunity for a better future is too often made inaccessible for reasons including cost, location, and a lack

Long-term strategic plan

The overarching priority of WEA’s long-term strategic plan is to maximise learners’ chances of success by providing an outstanding level of teaching and learning, and by providing additional support to help learners overcome any barriers to learning.

WEA is committed to supporting all learners through exceptional service and high professional standards that result in an excellent quality learning experience that caters to learners’ needs. WEA’s aspirations are to surpass compliance and strive continually to improve teaching. To this end, WEA has implemented the largest organisational change project in recent memory – i.e., digital transformation – which has introduced best-in-class systems for learner records management, and all aspects of curriculum development and planning. Enabling more robust data reporting, WEA’s new systems ensure that future decision-making around curriculum and resourcing for education delivery are based on clear, objective evidence and attention to emerging trends. As with all large-scale technology change programmes it will take time to embed and realise the full benefits. In the years ahead, WEA will continue to focus attention and resources on the use of technology to improve learner engagement and to make learning more accessible wherever its learners live. WEA will also aim to improve learners’ understanding of the outcomes they can achieve and to support them to

of information. WEA is committed to removing barriers to education so that individuals can improve their own life chances and have a positive impact on their communities and society as a whole.

WEA differentiates itself from further education colleges by reaching into communities where learners live and work to deliver learning in surroundings where they are familiar and comfortable. WEA emphasises smaller class sizes so that learners receive more personal care, attention, and support from tutors. To achieve this, WEA works in partnership with over 800 community-based venues and local networks across the UK and with like-minded partners internationally.

track and celebrate their achievements. WEA has made a commitment to providing tailored and timely advice, guidance and support for learners throughout their learning journey.

Based on current performance, WEA estimates that by 2025/26 it can realistically achieve:

WEA’s last Ofsted inspection of provision in England was in 2017. It has therefore prepared for its next Ofsted inspection in the near term. WEA seeks at minimum to maintain its Ofsted grading of “good” and aims to be “outstanding.” WEA aims to be recognised within the sector as visionary and innovative in its teaching of skills, and to ensure quality and performance improvement initiatives are applied to every element of its work in order to continually review and improve upon its provision and other services.

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2023/24 priorities

WEA’s priorities for 2023/24 are aligned to the Creating Opportunities Strategy agreed by the Board of Trustees in July 2022, which places learner success at the heart of all WEA’s activities. WEA aims to demonstrate its commitment to quality and learner success through encouraging and achieving high levels of learner attendance, retention, achievement, and enhancement of personal development, and accordingly has set ambitious internal targets in these areas.

Recognising that learner success is tied to tutor engagement and the quality of professional support provided to the tutor base, WEA will continue to build upon the programme of continuous professional development to tutors implemented in 2022/23 including

WEA continues its commitment to maximising learners’ chances of success by providing an outstanding level of teaching and learning, and by providing additional support to help learners overcome any barriers to learning. To this end, WEA continues to work to the three strategic objectives agreed in the previous year:

Learning that Builds Communities.

The strategic objectives are supported by four enabling objectives:

Improving systems, processes and infrastructure;

WEA will continue working to embed the practice of benchmarking performance against providers with an Ofsted grading of “outstanding” to identify best practice in others which can be embraced by WEA. It will also continue its work to embed improved course planning and recognising and recording progress and achievement (“RARPA”), and encourage inspiring and innovative teaching, learning, and assessment practice to ensure that learners achieve their goals and receive recognition for their achievements.

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Learning for life

WEA believes that open access to adult education creates a more equal and just society and improves outcomes for learners in terms of health, well-being, and independence. It helps individuals to meet challenges such as social isolation, lack of confidence, and low self-esteem. WEA is mindful that 43% of unemployed people in the UK report poor mental health[1] . Whether in work or not, 7.1 million people in the UK have very poor literacy skills[2] , and 9 million people report that they cannot use the internet without help[3] . WEA accepts estimates that 4 in 5 adults in the UK have a low level of numeracy[4] .

WEA aims to deliver a curriculum that will engage adults to develop skills, improve their everyday lives, and gain the knowledge and confidence to achieve their personal goals and connect with their communities. To enable this work, WEA will:

As government funding priorities continue to shift their focus to investment in Skills for Jobs and higher-level qualifications, WEA will seek to bid successfully for funding to deliver skills for employment provision while also seeking to diversify its funding streams to ensure that community learning, arts/crafts, health and wellbeing, and cultural provision can continue to be supported. Support for provision outside the scope of Skills for Jobs will be sought through effective bidding for the public funding that does remain available, while also looking to alternative funders (e.g., government departments beyond DfE, trusts, foundations) and full-cost options for those learners who can afford to pay more for their courses.

WEA will evidence its effectiveness in delivering against its aims in 2023/24 by delivering:

1 Health Foundation, 2021. 2 National Literacy Trust, 2022. 3 Good Things Foundation, 2020. 4 National Numeracy, 2022.

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Learning for work

WEA believes that all people deserve good, sustainable work, and the opportunity to maximise their personal potential and contribution to society. WEA enables its learners to flourish through a needs-based curriculum, an innovative and learner-driven approach to teaching, learning, and assessment, and individualised personal support.

WEA is mindful that four in 10 working age adults in the UK who have no qualifications live in poverty (compared to one in 10 with a degree or more)[5] , and accepts estimates that over 7 million working age adults in the UK do not have a level 2 (GCSE or equivalent) qualification[6] . WEA recognises that one in five members of the labour market (an estimated 6.2 million workers) in the last year experienced severely insecure work[7] , that 62% of UK unemployed adults are longterm unemployed[8] , and that by 2030, over 30 million people will need to be re-skilled[9] .

Since the Covid-19 pandemic, the over-50 workforce has been significantly impacted. The Office for National Statistics estimates that economic inactivity among the over-50 workforce has increased by 250,000 individuals[10] . Younger people too have been affected, with 43% (1.7 million) of unemployed workers between the ages of 16-64 reporting they would like to be in work[11] . WEA accepts estimates that an extra 1.2 million people would receive training if those with low qualifications participated in learning as much as those with degrees[12] .

WEA aims to design and deliver a dynamic skills and employability offer, matched to local and national need that is shaped by working in partnership with employers and employer groups. To enable this work, WEA will:

WEA recognised last year that growing a skills curriculum will require recruitment of specialist tutors at scale in a market where competition with other organisations for in-demand experience will be significant. This was made harder by the Government’s decision not to extend the 6.5% salary increase awarded to teachers and College lecturers to those teaching in the post 19 arena. In 2022/23, WEA initiated a programme of recruiting specialist tutors in specific subject areas where it did not have notable strengths previously (e.g., maths). In 2023/24, WEA will continue to review its education offer against its strategy, and to consolidate and rationalise its regional and national offer. A review of the existing tutor base has commenced, with attention focused on improving organisational knowledge of the expertise and teaching interests of its existing tutors, offering full-time or near full-time appointments where it makes strategic sense to do so.

In 2023/24, WEA will evidence its effectiveness in delivering against its Learning for Work aims by committing to:

5 Joseph Rowntree Foundation, 2022. 6 ONS, 2021.

7 The Work Foundation, 2022. 8 CBI/McKinsey, 2020.

10 Learning & Work Institute, 2022. 11 Learning & Work Institute, 2021. 12 UK Gov, 2021.

9 ONS, 2022.

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Learning that builds communities

WEA believes that vibrant and inclusive communities promote health, happiness, and success at the individual and community level. WEA networks can help bring communities together and foster the creation of a WEA family with reciprocal benefits for the individual and their community. In other words, WEA networks can deliver a social contract, creating a responsibility to others and a desire to promote social justice. To enable this work, WEA will:

Create campaigns which WEA networks can support.

With 26% of adults reporting that they do not speak to their neighbours or members of the community on a regular (monthly) basis[13] , and 5% of adults claiming that they feel lonely often or always[14] , WEA aims to design and deliver learning networks which inspire passions, ignite friendships and bring communities together, enhancing their purpose and providing them with the skills and knowledge to make them self-sufficient.

The aim of the full cost provision WEA intends to develop in 2023/24 will be to determine the full direct cost of delivering a particular course and to ask each learner with means to pay to pay a proportionate contribution toward that cost. Provision will be made for subsidising costs for any learner wishing to enrol who does not have means to pay. WEA will adhere to the principle that any learner, regardless of their means, should be enabled to join a full cost course. That said, WEA is keenly aware that public funding support for certain provision that WEA has historically offered is under threat from 2025.

To achieve its aims for full-cost provision in 2023/24, WEA will:

The three priorities detailed above are underpinned by distinct priorities for Scotland and England.

WEA is confident in its position that learning builds communities. Feedback from learners enrolled in WEA’s community learning and cultural programmes in 2022/23 confirmed that among this cohort of learners:

Acknowledging that the number of learners who may be able to pay for provision may be supressed due to economic factors (e.g., increases in the cost of living and inflation), and that funding to enable those who cannot afford to pay to participate will need to be secured, WEA has committed to developing and delivering a pilot programme of full-cost provision of arts and cultural learning that may no longer be supported by tailored learning funds by 2025.

13 UK Gov, 2021. 14 ONS, 2021.

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Scotland

While headline subject areas are broadly the same as in England, provision in Scotland is focused primarily on creating access to education for under-represented groups and those with low or no qualifications. In 2023/24 WEA Scotland will deliver a lifetime upskilling and retraining offer, including for jobs in green industries, concentrating on working-age people living in poverty. As in previous years, ESOL, readiness for employment, building confidence, enhancing social integration, mental health and well-being, and civic involvement will also continue to account for significant amounts of the provision in Scotland.

The evolution of an estate plan alongside developments in digital infrastructure and systems will enable WEA to more clearly evidence social value and achieve a carbon neutral target. WEA will use recent grant funding from DfE to invest in the existing estate, and to establish firm anchors in communities where it can make the greatest impact.

In 2023/24, WEA aims to:

England

Across England, curricula are developed in response to local needs. Objectives are set in relation to improving ongoing quality and the learner experience, increasing the use of digital technologies in learning, recovery from the economic and social impact of lockdowns, and responding to the cost-of-living crisis.

The priorities of Learning for Life, Learning for Work, and Learning that Builds Communities are supported by four enabling priorities to facilitate the full delivery for the benefit of learners as well as to the satisfaction of stakeholders.

Improving systems, processes and infrastructure

WEA believes that its systems, working methods and practices, and estate should enable learner success. Improving digital systems will help WEA to improve the experience of its learners and make its back-office ways of working more efficient. Intelligent use of data, integration between systems, and automation will simplify and smooth the way WEA works and engages with learners. It will also free resources to deliver the human touch where and when it will be most impactful.

Over the last two years, WEA has made significant progress in modernising its IT infrastructure to ensure its reliability, resilience and futureproofing. It has transformed its digital environment, replaced its legacy student record system, and rebuilt its website. This has required a large change to business process, as well as adaptability from staff and learners. It will take time to embed and for WEA to fully realise the benefits. In 2023/24 WEA will continue to build on these changes and continue to strengthen digital infrastructure to ensure effective resolution of technical debt and using best-in-class technology to support a positive learner experience and to drive clear, data-driven decision making.

Building income & ensuring sustainability

WEA believes that it is essential to build a portfolio of income and a balance of expenditure that ensures the long-term sustainability of its three strategic priorities (Learning for Life, Learning for Work, and Learning that Builds Communities) in an ever-changing and more complex funding environment. To remain true to its mission and charitable purpose, WEA must grow and diversify its income streams whilst controlling and monitoring expenditure with the aim of delivering maximum impact in terms of reach and quality of the learner experience.

As all current forecasts in both Scotland and England predict increasing pressure on the public purse, it is increasingly important that the WEA continues to look for new ways to diversify its income streams. In the interest of building sustainable income streams, WEA will seek to engage with a variety of funders to understand their needs, and to leverage its strengths and track record to create strong proposals to effectively bid for contracts, retain grants, apply for charitable funding, and to develop selffinancing programmes of full cost provision. At the same time, WEA will work to determine an achievable balance between direct and indirect operational costs and central overheads, adapting its business plans accordingly.

Current market conditions suggest that these more reactive sources of income where WEA responds to tenders or bids, are likely to continue to see relatively small rates of return. If the WEA is to find more lucrative sources of income, a strategy to deliver this will be needed. Such a strategy is currently in development and will form a significant part of WEA’s work in 2023/24.

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In the interest of building sustainable income streams, WEA will seek to engage with a variety of funders to understand their needs, and to leverage its strengths and track record to create strong proposals to effectively bid for contracts, retain grants, apply for charitable funding, and to develop self-financing programmes of full-cost provision. At the same time, WEA will work to determine an achievable balance between direct and indirect operational costs and central overheads, adapting its business plans accordingly.

WEA acknowledges the inherent challenges in seeking to grow and diversify income in a period of increasing constraints on public finances and rising costs of living. To meet and overcome these challenges in 2023/24, WEA aims to:

Engaging effectively with stakeholders

WEA believes that it offers adults a life-changing opportunity, but that too few are aware of WEA and its impact. WEA will therefore seek to build visibility, awareness and understanding of its offer among adults who could benefit from its provision and make a strong case for grant funding from public policy and funding decision-makers.

WEA will seek to embrace the passion of its members, learners, and volunteers to support the WEA mission and to help WEA achieve the full breadth of its charitable aims. WEA will seek to improve its methods of engagement with members and volunteers at the same time as it seeks to broaden its outreach to a more comprehensive range of stakeholders. In the interest of increasing its effectiveness in stakeholder engagement, WEA has committed in 2023/24 to:

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Developing WEA people & culture

WEA believes that its mission can unite and motivate employees and volunteers to deliver life-changing learning to those who need it, and that it can do so in an efficient and effective way to reach as many learners as possible. WEA will continue to work toward the “good work plan reforms,” ensuring greater transparency and protection for staff working under more flexible working arrangements.

WEA seeks to develop its people and build a resilient and responsive culture to embrace the opportunities and the challenges that it knows lie ahead. Through training and development experiences, WEA will aim to ensure employees and volunteers are equipped to deliver the strategy, and to deliver and respond to change in a way that is caring, innovative, and respectful. Included in this endeavour are updates and reforms to WEA’s governance structures and practices nationally and locally.

In 2023/24, WEA will increase the size of its Board of Trustees from 12 to 15 members to ensure a robust collective skill set covering all areas of trustee duties and responsibilities, and to support a committee structure that can ensure the Board receives detailed specialist scrutiny and advice on matters of strategic importance. At local level, Regional Committees will be wound down in favour of implementing Local Advisory Panels who will advise on local need, the quality of the learner experience, and opportunities for WEA to extend its charitable reach. At all levels, WEA governance will embrace best practice and be supported by a professionalised governance team.

Recognising the importance of professionalised governance support, and in response to the DfE’s Strengthening Governance White Paper (2021), WEA invested in its corporate governance team. Over the course of 2022/23, the governance team increased from a team of one governance professional to three corporate governance professionals (Head of Corporate Governance, and two Governance Officers) and one subject specialist in information governance, working under the supervision of a Director of Governance. The strength of governance procedures implemented by the governance team was confirmed by an internal audit in June 2023, returning adequate assurance.

WEA is aware of the risk to employee and volunteer engagement arising from the significant level of change that has been implemented progressively across the Association over the last few years. At the same time, the risk that the pace of change that has to date been tolerable to employees and volunteers may not be sufficient to satisfy external bodies’ expectations is also acknowledged. With an eye toward achieving what it perceives to be a balance between these risks and the benefits of progressive change, WEA seeks to achieve the following in 2023/24:

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Governance review

WEA’s governance review began in 2018/19 and continues to the present. WEA has moved from a programme of “quick fixes” in 2020/21 to a programme of deeper governance reform, starting with the refresh of the committees of the Board of Trustees, and determining clearer remits for the Chair of Trustees, Vice Chair of Trustees, and Association officers, and clarifying terms of office for lay members of committees. Phase 2 of the governance review concluded in July 2022 and focused on the reform of the Board’s scheme of committees and clarification of governance leadership roles.

Phase 3 of the governance review, which has focused on a comprehensive update to the Articles of Association & Regulations, and on reforming local governance, commenced at the start of the 2022/23 financial year and is now nearing completion.

Following the changes made to WEA’s Articles & Regulations in December 2022 concerning the composition of the WEA Council, and the introduction of clear term limits on trustee service, it was agreed that a working group of trustees and non-trustee members of Council should be convened to oversee a thorough review and redrafting of the practical aspects of the Articles & Regulations – i.e., not the objects and principles elements. Considering that the Articles define WEA’s mission, and the scope of its work as an organisation, it was agreed that redrafting work should begin with the Regulations to enable the working group to consider how WEA wished to carry out the work that it does before considering any updates to the scope of its work. A set of fully redrafted Regulations were supported by the Council and accepted in principle by the Board of Trustees (subject to legal advice, and changes to the Articles) in July 2023. It is anticipated that new Articles of Association will be considered in 2023/2024.

Work on Phase 3 also included clarifying WEA’s overall governance model, which now includes three levels of formal governance – i.e., the Board of Trustees, committees of the Board, and Local Advisory Panels – with branches and local associations placed outside the curtilage of the formal governance structure. Implementation of Local Advisory Panels is expected to continue through the first half of 2023/24. Phase 3 of the governance review also included consideration of the role of Regional Committees, and ultimately agreement that these should be wound down. This decision has impacted on the role of WEA Council (which is, formally, a committee of the Board of Trustees and WEA’s chief stakeholder body) which continues to be considered with resolution anticipated in early 2024.

It is expected that 2023/24 will be the final year of the formal programme of governance review, although the development of governance to ensure WEA keeps pace with governance best practice and the expectation of funders and regulators will continue. Priorities for governance in 2023/24 will include:

Additional information on the governance review appears as part of the report on Structure, Governance & Management on page 26.

The project of redrafting the Articles & Regulations has been guided by the following agreed aims:

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Equality, diversity & inclusion

WEA aims to create conditions that ensure staff, volunteers and learners are treated solely on the basis of their merits, abilities and potential regardless of their gender, race, religious/political beliefs, ethnic or national origin, disability, family background, age, sexual orientation, or other irrelevant distinction.

WEA has held an IIP accreditation of Silver since November 2021. WEA considers the achievement of IIP Silver as significant, noting that IIP awards silver status to only 20% of the organisations it accredits.

WEA has also held provisional IID accreditation since 2022. Through its Human Resources team, WEA continues to work through its action plan to review, develop and embed the FREDIE (i.e., fairness, respect, equality, diversity, inclusion and engagement) principles in line with the latest Ofsted inspection framework, and to ensure that these principles are fully integrated through all aspects of business planning.

WEA’s Board of Trustees will continue to monitor, scrutinise and constructively challenge WEA leadership on its effective support and development of WEA staff at all levels, and to ensure WEA remains an inclusive employer. WEA’s Board of Trustees has also recognised that it has work to do to improve the diversity profile of its own membership and that of its committees and has made some recent progress toward greater diversity among its own numbers, partially through increasing the size of the Board, and partially through a greater focus on external recruitment. The Nominations Committee has made a commitment to take into consideration the diversity profile of the Board and its committees in recommending the appointment of new trustees and committee members, and in succession planning for Board and Committee leadership roles. Recruitment onto the new Local Advisory Panels has been undertaken with the aim of ensuring that the membership of each Advisory Panel reflects the diversity of its own locality. In due course, it is hoped that Local Advisory Panels will support greater diversity at other levels of governance as WEA seeks to support and develop new Advisory Panel members.

During 2022 the WEA engaged with the FE Black Leadership Group to support its work on EDI and this engagement will continue going forward.

Within WEA’s education provision, EDI learner data demonstrates that WEA courses engage a significantly higher number of learners from disadvantaged backgrounds and/or with protected characteristics

compared to the national demographic profile, including learners from minority ethnic backgrounds, refugees, those with low incomes and qualifications, and those who are older and/or disabled.

WEA seeks to welcome and accommodate all learners, volunteers and staff, and is therefore working towards the highest standards of accommodation through its property strategy. Priority has been placed on ensuring full accessibility for teaching and learning spaces.

WEA recognises the importance of good mental health support and is committed to improving mental health through its curriculum and learner-centred teaching. According to WEA’s Impact Report (October 2022):

WEA encourages staff to be kind to each other and to talk openly about mental health. In 2022/23, WEA partnered with the Mental Health Foundation to invest in the development and training of a network of 12 mental health first-aiders across the Association. WEA’s mental health first aiders are a point of support for anyone experiencing emotional or mental distress and provide a means of confidential colleague to colleague support for WEA staff. More generally, managers and staff are encouraged to have regular one-to-one meetings where open conversations can take place. WEA’s Human Resources team also run a number of learning and development initiatives including equipping managers with a mental health toolkit, HR drop-in sessions and regular timetabled sessions supporting mental health awareness and management, stress management, and related issues.

As a benefit to employees, WEA has teamed up with BUPA and Westfield Health Care who offer well-being support to colleagues. BUPA provides occupational health support in order to support colleagues to remain in work, return to work, and to advise on ill health incapacity. Westfield Healthcare is our Employee Assistance Programme which provides colleagues with confidential support, advice, and guidance covering health and well-being, but also legal and financial wellbeing. Both organisations keep WEA colleagues well at work and support them in looking after their physical and mental well-being using clinical professionals to offer health checks and specialist support from qualified specialists offering practical advice and support.

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Financial review

The financial statements show total income for 2022/2023 of £27.5m (2021/22: £28.5m) with expenditure of £26.1m (2021/22: £27.7m).

In 2022/23 income received from the ESFA increased to £12.9 from £11.5m in the prior year. The main recurrent grant increased in the year by £0.5m as a result of additional Adult Skills teaching but a larger increase is due to WEA being awarded two capital grants totalling £1m for energy efficiency measures and building improvements. A further grant of £8.6m for capital transformation has been awarded but requires submission and approval of an Estates Plan. This procedure was not complete at the 31 July 2023, therefore the funds received to date have been deferred until full approval is received.

The total income received from MCA areas in 2022/23 is £7.5m (2021/22: £7.2m). There were no new devolved areas in the year, however, delivery was increased and widened in some of the existing areas.

ESF grant income dropped to £0.9m (2021/22: £5.4m) following the completion of the North West Community Grant programmes in March 2023. The WEA has been successful in replacing this European income stream with funding from the UK Shared Prosperity Fund including Multiply grants which are aimed at improving basic maths skills for adults. In 2022/23 the WEA recognised income of £1.6m of Multiply funding in 16 different areas. Many of these grants are two-year programmes with further funding to come in future years. The WEA has also been selected to deliver Community Grants by Greater Manchester Combined Authority, a programme of £5.1m over two years will begin in 2023/24.

Income from Lottery funded projects has continued to reduce £0.2m (2021/22: £0.4m) as the projects wind down. Restricted grants from sources other than those mentioned above have fallen by £0.4m to £1.2m (2020/21: £1.6m).

Overall income from unrestricted fees and contracts has continued to decline, £1.2m (2021/22: £1.4m). Branch and regional tuition fees have reduced due to a fall in Community Learning delivery, with fewer active branches and teething issues with the new student records system.

Educational activity costs were £15.6m in 2022/23 (2021/22: £18.0m). The reduction can mainly be explained by the £4.1m reduction in grants awarded under the ESF programme which ended in the year. However, this was offset by higher levels of payments to tutors, sub-contractors, venues and other course costs due to increased activity, particularly face to face classes in the first academic year not to be affected by covid restrictions since 2019/20.

Governance and support costs rose to £9.4m (2021/22: £9.0m). The rise was due to increased legal costs, around contracts and the estates, and refurbishment of several offices.

The WEA’s net movement in funds for 2022/23 is £0.9m (2021/22: £0.4m) after transfers and pension adjustments. There is a deficit of £0.4m on unrestricted funds, and although a deficit, it is smaller deficit than anticipated in the 2022/23 budget. The surplus on restricted funds of £1.3m is due to timing differences between income and related expenditure, in particular in 2022/23 it is due to the ESFA capital grants.

Reserves policy

The funds at 31 July 2023 were £14.9m (2022/23: £14.0m). This is represented by unrestricted funds of £13.0m and restricted funds of £1.9m.

The closing 2022/23 free reserves balance of £7.7m is made up as follows:

For the purposes of this policy, the WEA has defined free reserves as being its unrestricted funds, excluding the designated fixed asset fund and any pension deficit, should it arise.

The free reserves balance as at 31 July 2023, being £7.7m, exceeds the free reserves target which was reviewed during 2021/22 and is currently set at £4.3m.

During 2020/21 the Trustees took the decision to spend some of the excess reserve funds investing in IT systems across the organisation. The Digital Transformation programme began in 2021/22 and the new student system and website went live in April 2023. Procurement of new systems for HR, Payroll and Finance is underway. There is also an ongoing programme of IT infrastructure projects.

In setting the free reserves at £4.3m the Trustees considered the amount that would be required to cover the resulting costs if the WEA were to lose varying amounts of income and has also ensured that the level of reserves will be sufficient to cover known outstanding payments on the TPT pension scheme. In all scenarios this figure was considered to be sufficient. The policy will be reviewed again during 2023/24.

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The WEA Reserves Policy is subject to regular review considering new risks and circumstances faced by the WEA. The policy is therefore reviewed by Trustees at least annually or more frequently upon advice of senior management in the event of a material change occurring that warrants any earlier or additional review.

The level of free reserves is a Key Performance Indicator set out in the organisation’s Business Plan and, as such, progress is monitored regularly at Committee and Trustee meetings.

Investments & treasury management

As set out in its Articles of Association, WEA has absolute discretion to invest money not immediately required for expenditure. The responsibility for the performance of investments rests with the Finance & Capital Resources Committee, which reports to the Board of Trustees. The objective of WEA’s Treasury Management Policy is to optimise returns consistent with cash flow requirements and with an overriding need to protect the capital value of WEA’s funds.

Treasury management is carried out within the context of WEA’s statutory requirements, its Articles of Association and the Financial Memorandum with the Education and Skills Funding Agency (ESFA). WEA funds are deposited only with UK banks that meet the criteria stated in the Treasury Management Policy. Investments are not made in any other financial instruments. It is important to note that, as in previous years, WEA has had no exposure to any known financial institution at risk.

Trustees reviewed WEA’s Investment Policy in 2022/23.

Principal funding sources

WEA receives its principal funding from ESFA, which provided 45% of WEA’s income from all sources and activities for the year, excluding one-off capital grants. There are no outstanding loans against WEA.

Pensions

The valuation of WEA’s defined benefit pension scheme at 31 July 2023 (under FRS102 principles) continues to be a nil balance. Estimates used by the actuary in the calculation of this accounting valuation have been benchmarked by the Trustees and are considered appropriate.

Further details relating to the pension schemes operated by the WEA are shown at Note 18 to the accounts.

Cash flow & capital expenditure

In line with the Treasury Management Policy, WEA aims to maintain a healthy cash position, and its cash reserves are sufficient to ensure that balances are not overdrawn. Based on the two-year cash flow projections to July 2025 returned to ESFA in July 2023, WEA does not anticipate any liquidity problems.

Cash and short-term deposits for the year ended 31 July 2023 were £12.6m (2021/22: £10.3m).

Funds held as custodian trustees on behalf of others

WEA does not hold funds as a Custodian Trustee on behalf of others.

Commercial activities

WEA does not currently engage in any substantial commercial activities. The trading company, WEA Trading Limited, a wholly owned subsidiary of WEA has not traded to date.

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Fundraising statement

Although WEA does not raise substantial amounts of private funds, it is nevertheless dedicated to ensuring that any fundraising remains closely aligned with the Association’s mission and values, and to ensuring efficiency in its approach. A guiding principle in its fundraising efforts is to work with a range of partners from corporate organisations to a range of charities and associations across the UK. WEA performs due diligence on all corporate donors including any gifts in kind. WEA does not use professional fundraisers or commercial participators to conduct any fundraising activities and so no monitoring activities are required.

WEA volunteers are supported and stewarded by the Fundraising, Membership and Volunteering Team. In 2022/23, WEA did not receive any complaints regarding its fundraising activities (2021/22: 0). As of September 2020, WEA is a member of the Fundraising Regulator and as such follows the Code of Fundraising Practice.

To ensure compliance with the Charities Act 2022, WEA follows the guidelines set out by the Institute of Fundraising on all donors with the four guiding principles of respect, fairness, responsiveness and accountability applied for all donors and members of the Association.

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Risk management

The Board of Trustees monitors WEA’s risk profile as recorded in WEA’s corporate risk. The risk register is informed by operational risk registers maintained for discrete projects (e.g., digital transformation) and business areas (e.g., business development, contracts). Leadership Team have a collective responsibility for reviewing and updating the corporate risk register. The systems and procedures established to manage risk are regularly reviewed by the Audit & Risk Committee and reported to the Board of Trustees. The Board of Trustees has also reviewed the adequacy of WEA’s internal controls.

The corporate risk register includes action plans for each of WEA’s key risks and a summary highlighting the current and changing status of those risks against a target risk score. The Audit & Risk Committee reviews the risk register at each quarterly meeting, receives summary updates on risk management activity, and invites members of WEA management to present on significant issues. The Audit & Risk Committee has recently reviewed WEA’s risk appetite and maintains a commitment to risk awareness in all WEA’s undertakings.

The format and approach to risk scoring on the corporate risk register were substantially updated during the 2020/21 financial year. Further refinements to the corporate risk register format and scoring approach are ongoing, taking into account internal audit advice and developments in the funding and regulatory landscape.

Work continues with Leadership Team to support greater seamlessness between the operational and corporate risk registers.

As at 31 July 2023 there were 43 risks identified across five categories of risk on the corporate risk register. The level of risk posed by each matter reported in the risk register is assessed by attributing a score based on both the likelihood and impact of the respective risks.

The risks deemed to have the most significant impact on WEA should they manifest are set out below as WEA’s principal risks:

The Board of Trustees currently receives the corporate risk register at least annually and receives reports from the Audit & Risk Committee on a quarterly basis.

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Top five risks with mitigating actions taken:

Risk Mitigating actions taken
Negative judgment by While WEA has previously received an Ofsted rating of “good,” the new inspection framework places
regulator (e.g., Ofsted NI
judgment, ESFA fnancial		 increased scrutiny on the provider’s intent, implementation and impact of its curriculum rather
than on data. This presents a greater challenge for WEA as traditionally (and especially in branch
notice to improve). provision) there has been no set curriculum or any detailed articulation of intent. There is also a
new requirement in inspection for providers to demonstrate how they are meeting local need. This
is untested for a national provider like WEA. Failure to achieve a minimum rating of “good” in the
next inspection could result in loss of funding and/or in the FE Commissioner’s exercise of intervention
powers. This risk will remain elevated until the outcome of any inspection is known.
Diversity of the Trustee
body does not refect		 WEA’s trustees have acknowledged and are seeking to proactively address the lack of diversity
on the Board of Trustees and elsewhere within the formal governance structure of WEA. This risk
the diversity of WEA’s
benefciaries.		 has been persistently elevated pending changes to the Articles which would allow trustees greater
control over the composition of the Board. Currently, the Articles require two-thirds of the trustee
body be appointed from within the Association Membership, which has a marked diversity defcit.
Changes to the Articles and corresponding Regulations have been accepted in principle by the Board
of Trustees, pending legal advice. Proactive steps are also being taken to encourage applications
from a diverse pool of candidates for vacancies at all levels of governance, and to recruit externally
for Trustees where the Articles allow.
Unmanaged
“technical debt”		 WEA has historically underinvested in its technology infrastructure over many years. The signifcant
investment made in new technology over the last 18 months has uncovered signifcant technical
debt across the Association, which leaves WEA exposed to greater risks of hacking and malware. If
left unaddressed technical debt has the potential to affect the future performance, reliability, and
maintainability of new software and systems.
Lack of diversity in Leadership Team have begun work to develop an income strategy collectively, and to address
voluntary income. shrinking unrestricted income. It is anticipated that a draft income strategy will be available for
review by the Finance & Capital Resources Committee before the end of the 2023/24 fnancial year.
Culture not aligned A programme of change and organisational development is currently under way to ensure that
to performance and WEA’s business practices keep pace with sector best practice and the expectations of funders and
resilience needed regulators. WEA’s Director of People & Culture is supporting WEA through an organised programme
to meet strategic of change to enable it to fully deliver against the full breadth of its mission and strategy, and to build
objectives organisational resilience at a time of rapid internal and external change.

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Fraud Risk Assessment

The risk of financial fraud at WEA is considered to be low. On behalf of the Board of Trustees, the Finance & Capital Resources Committee receives a quarterly financial report, which includes management accounts. The committee also has oversight of capital projects and receives regular reports on procurement and performance against project budgets. A separate Audit & Risk Committee receives a quarterly risk register, including an assessment of financial risks. The full Board receives the management accounts (quarterly), consolidated risk reports (quarterly), and the risk register (at least annually).

WEA maintains strong internal controls supported by Financial Regulations and policies which have been recently updated and are regularly reviewed. Financial controls have recently been tested through internal audit, with auditors confirming a high level of assurance that these are robust.

Going concern

The trustees have assessed WEA’s ability to continue as a going concern. The trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements. This has included a review of budgets and cash flow forecasts through to July 2026 and consideration of the key risks, including devolution and forecast changes in the split between restricted and unrestricted income. WEA has prepared a number of financial scenarios and the trustees consider that the WEA is well positioned to manage its business risks successfully. After consideration and enquiry, the Trustees have a reasonable expectation that the WEA has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in preparing these financial statements.

Financial policies, including Fraud Prevention, AntiBribery & Corruption, and Whistleblowing were updated in 2021 and are scheduled for next review in 2024. Internal auditors confirmed adequate assurance of fraud awareness across the Association through an internal audit conducted in 2022/23. WEA will seek to build greater awareness of fraud awareness through induction and training programmes for staff and volunteers in the 2023/24 financial year.

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Structure, governance and management

Status

WEA is a charitable company limited by guarantee (number 2806910), incorporated on 5 April 1993 and registered as a charity in England and Wales (number 1112775) and Scotland (number 2806910).

Governing documents

WEA is governed in accordance with the object and powers set out in its governing documents, the Articles of Association (last amended 8 December 2022) and Regulations (last amended 8 December 2022). The governing documents are available to the public through the WEA website at: WEA Articles and Regulations (amended December 2022) (1).pdf

Object of WEA

The object for which WEA was established is to promote adult and general education for the benefit of the community, regionally, nationally, and internationally based on democratic principles in its organisation and practice, through the participation of its voluntary members. In pursuit of this object, WEA has the following aims:

WEA operates at local, regional and national levels, providing adult education through its network of six English regions and Scotland, and with 153 branches and six Local Associations. Courses are created and delivered in response to local need, often in partnership with local community groups and organisations. There is a proud tradition of voluntary and democratic process within WEA. Association Members are involved in the planning and provision of courses as well as in the local and national governance of WEA.

WEA maintains staffed offices in Scotland and the English regions, the largest of which is in Leeds. WEA’s registered office is in London.

Public benefit

WEA is a public benefit entity, the charitable object of which is to promote adult and general education for the benefit of the community regionally, nationally and internationally based on democratic principles in its organisation and practice, through the participation of its volunteers and members.

WEA’s Trustees confirm that they have due regard for Charity Commission’s guidance on public benefit and believe it to have been consistently applied, that the requirements of section 17 of the Charities Act 2011, and the new requirements related to annual reporting within the Protection & Social Investments (Charities) Bill 2016 have been fully met when exercising any powers or duties to which the guidance relates.

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Board of Trustees

The Board of Trustees is WEA’s governing body, comprising fifteen Trustees. The Board of Trustees has ultimate responsibility for the strategic direction of WEA. Trustees are also the Directors and Members of the Company.

Per its Articles of Association, the composition of the Board of Trustees is as follows:

In consideration of guidance from ESFA, and the Charity Governance Code, the Board of Trustees has sought to appoint additional Trustees having qualifications in accounting and/or financial management, human resources and organisational development, and knowledge of the public sector and/or public funding. Recruitment of five new trustees was completed in November 2023.

The Board of Trustees meets at least four times a year to ensure that WEA’s activities carry into effect the charity’s object. Their work includes providing strategic oversight, scrutinising WEA’s financial performance and the performance of its management, agreeing budgets, monitoring the quality of educational provision and the safeguarding of beneficiaries and stakeholders, and reviewing current policies, initiatives, activities, and plans. The Board of Trustees is supported by six committees which also meet quarterly.

The Board of Trustees is currently chaired by a co-opted Trustee. In accordance with Article 55, a Deputy Chair of Trustees, appointed from among the sitting members of the Board of Trustees, chairs meetings of the Board of Trustees in the event of the Chair’s unavailability. The Deputy Chair also supervises the annual performance review of the Chair of Trustees, conducted by an external consultant. Trustees, whether appointed or elected, serve on the Board for a term of four years, renewable subject to re-election (in the case of Association Officers) or re-appointment.

Committees of the Board of Trustees

WEA Trustees implemented a new scheme of committees from 1 August 2021. The new scheme of committees was agreed with the aim of improving WEA’s demonstrated adherence to the Charity Governance Code (adopted by Trustees as WEA’s code of governance in 2018). Trustees understand the role of committees to be to apply detailed, specialist scrutiny to matters within their remit, and to support the Board of Trustees in performing specific duties or oversight more thoroughly and effectively than it could otherwise do acting together as a full board.

All committees of the Board of Trustees remain nonexecutive. Save for the Audit & Risk Committee, the committees do not have delegated authority to undertake investigations or to take independent professional advice without prior authorisation from the Board of Trustees.

Committees of the Board of Trustees generally meet on a quarterly basis to receive detailed reports and make detailed enquiries on strategic organisational matters, reporting back to the Board of Trustees at each subsequent meeting.

During the 2022/23 financial year there were six delegated committees of the Board of Trustees. These were:

Audit & Risk Committee – The Audit & Risk Committee assisted the Trustees in discharging its oversight responsibilities by reviewing the effectiveness of WEA’s internal controls and compliance systems and, on behalf of the Trustees, reviewed the performance and results of external and internal auditors’ work, and reviewed and monitored the preparation and production of the Trustees’ Annual Report. On an annual basis, it recommended the appointment of auditors to the Board of Trustees and, on their behalf, approved the auditors’ terms of engagement.

Education Committee – The Education Committee supported the Board of Trustees in meeting its responsibilities for strategic leadership of educational provision in England and took assurances on their behalf regarding the development, monitoring and application of education policies, learner welfare (including safeguarding) and the learner experience, the quality of education offered and adherence to relevant regulatory and inspection standards.

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Finance & Capital Resources Committee – The Finance & Capital Resources Committee supported the Board of Trustees in discharging their responsibilities to ensure sound business planning and budgeting in the interests of WEA’s long-term financial health and sustainability. The Committee advised Trustees on the application of WEA’s funds and other assets in accordance with its charitable purposes and the public benefit duty, and on compliance with the requirements and expectations of its funders.

People Committee – The People Committee focused on WEA’s HR strategy, volunteering strategy, EDI, safeguarding and Prevent policies and procedures, and health and safety. It ensured ongoing review of organisational effectiveness, and the maintenance of an organised and clear management structure, with well-understood delegations. The Committee supported WEA in its aim to exceed its statutory responsibilities for equality and diversity.

A strategic Health & Safety Committee was implemented in the first half of the 2023/24 financial year as a bridge between Trustees’ duties and responsibilities in relation to health and safety, and the managerial and operational policies and procedures within which the executive manages health and safety responsibilities. The People Committee receive quarterly reports on any health and safety incidents, accidents, or near misses, and a consolidated annual report for consideration and recommendation to the Board of Trustees.

Scotland Board – The Scotland Board promoted the profile of WEA in Scotland by supporting and facilitating the communication, engagement and consultation with WEA Scotland’s members, learners and stakeholder groups. It supported the Board of Trustees in meeting its responsibilities for strategic leadership of educational provision in Scotland, including providing assurances on adherence to relevant regulatory and inspection standards in Scotland. Scotland Board also supported and promoted the Association-wide understanding of Scotland-specific educational policy, legislation, and funding relating to adult education, making recommendations to the Board of Trustees as appropriate.

WEA Council – WEA Council’s purpose and remit are set out in WEA’s Articles of Association. Its principal function was and continues to be to promote the democratic involvement of all Association Members and effective communication between all levels of governance within the Association. In practice, WEA Council is an important stakeholder group and a forum for discussion of shared interests across the English regions and Scotland, making representations on their behalf to the Board of Trustees from time to time. At any time, there are at least four Trustees who are members of WEA Council, two of whom must be Association Officers elected by the Association Members. The President (an Association Officer) chairs the WEA Council.

During the 2022/23 financial year there were two additional committees of the Board of Trustees convened for specific advisory purposes. These were:

Remuneration Committee – The Remuneration Committee determined the pay and conditions for WEA’s senior post holders (i.e., CEO/GS, Director of Finance & IT, and Director of Governance & Company Secretary).

Nominations Committee – The Nominations Committee oversaw the recruitment and ongoing support and development for Trustees and the non-Trustee members of the committees of the Board of Trustees, taking into account the diversity and skills profiles and needs of each group.

Each committee of the Board of Trustees includes at least two and ideally three Trustees as members of the committee. Other committee members are drawn from the Association Membership. Where appropriate skills are not found within the Association Membership, committee members may be externally co-opted. An exception is the Remuneration Committee, which includes only Trustee members.

Trustee attendance figures of Board and Committee meetings can be found on page 33.

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Election of association officers

& the Annual conference

Members of the Association make direct contributions to the governance of WEA through the election of Association Officers and the Annual Conference. In accordance with the governing documents, Association Officers are elected to office by the Association Members and subsequently appointed as Trustees, subject to assurance of their statutory eligibility.

The Annual Conference, organised by the WEA Council, provides opportunity for Association Members to receive reports from Trustees and the WEA Council on the year’s activities, and to influence the overall direction of WEA through bringing forward motions for consideration.

Trustee recruitment, induction & training

WEA seeks to encourage diversity in its widest sense within the governance structure. The WEA’s Articles of Association set out the categories from which Trustees are elected and appointed.

Co-opted Trustees: Trustees who are co-opted to the Board are sought through advertisement and/or recruitment search agencies. As part of the process for appointment, the Nominations Committee convenes a panel to oversee the shortlisting and interviewing of candidates prior to a recommendation to the full Board for approval. Co-opted Trustees are required to undertake a DBS check and to confirm their statutory eligibility to serve as a Trustee and Company Director ahead of any appointment.

Association Officers: Following election by the Association Members to the role of President, Deputy President or Treasurer, an Association Officer is appointed a Trustee ex officio, subject to interview with members of Nominations Committee (in accordance with Article 17), DBS clearance, and confirmation of their statutory eligibility to serve as a Trustee and Company Director.

Council nominees: Those Trustees who are appointed from Council are nominated by the Council. Council nominee vacancies are open to all members of WEA’s Council (apart from the Association Officers, who are ex officio Trustees). Like all other Trustees, Council nominees are appointed subject to interview with members of Nominations Committee (in accordance with Article 17), DBS clearance, and confirmation of their statutory eligibility to serve as a Trustee and Company Director.

Once appointed to the Board, Trustees are supported by a comprehensive programme of induction arranged by the Head of Corporate Governance. In addition to induction, new Trustees are encouraged to meet members of staff, and to take part in regional activities. A Trustee Handbook is currently in development.

Chief Executive & General Secretary

In accordance with the Articles of Association, the CEO/GS is appointed by the Board of Trustees to manage the day-to-day operations of WEA and is accountable to the Board of Trustees via the Chair. The CEO/GS is WEA’s Accounting Officer for ESFA reporting purposes.

Powers delegated to the CEO/GS include the implementation of policy and strategy adopted by the Trustees, to be carried out within a budget approved by them from time to time. The CEO/ GS has a duty to report back to Trustees regularly. In practical terms, this means that the CEO/GS is a regular attendee at meetings of the Board of Trustees and has a standing reporting item on each agenda. To support the effective coordination of business between Trustees and Council, the CEO/ GS also meets regularly with the WEA Council to ensure its members are adequately informed of WEA activities.

The CEO/GS works with the Leadership Team as identified in the Reference and Administrative Details on page 4.

Leadership team

Leadership Team meets at least monthly and reviews the quality and effectiveness of teaching and learning activity, organisational performance against the strategy and budget agreed by Trustees, current and future staffing needs, emerging risks, and forward planning.

The role of reviewing and monitoring WEA’s contracts and projects (including the ESFA contract) is performed by a Contracts Management Board overseen by Leadership Team. Bidding activity for new or renewed contracts and the success rate of bids is regularly reported to Leadership Team and reported on to Trustees by the CEO/GS on their behalf.

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Review & remuneration of

senior employees

Under the new scheme of committees taking effect from 1 August 2021, a Remuneration Committee has been constituted to consider and agree the remuneration of senior post holders (i.e., the CEO/GS, Director of Finance & IT, and Director of Governance & Company Secretary).

Salaries for other Leadership Team posts are in principle set by the CEO/GS within the salary structures laid out from time to time by the People Committee and approved by the Board of Trustees, and within the scope of budget constraints agreed annually by the Board of Trustees. In practice, spot salaries for senior roles appointed to in 2023 were agreed in advance of recruitment with limited scope for negotiation at the time of offer. There were two senior appointments made during 2022/23.

Performance objectives of the CEO/GS and members of the Leadership Team are agreed each year as part of the appraisal process determined by the Board of Trustees and reflected in the Business Plan and Budget which is approved by the Board of Trustees annually in July for the next financial year.

Remuneration details are set out in Note 6 to the financial statements.

Engagement with employees (CA2006 Section 172 Disclosure)

This report on WEA’s compliance with Companies Act 2006, section 172 (“CA2006 s.172”) should be read in conjunction with the Strategic Report on pages 10 - 19. CA2006 s.172 as applicable to incorporated charities requires Trustees (who are the Directors of the Company under CA2006) to take into consideration the interests of employees and other stakeholders in their decisionmaking. Trustees continue to have regard to the interests of WEA’s employees and other stakeholders, including the impact of its activities on the community, the environment and WEA’s reputation, when making decisions. Acting in good faith and fairly between members, the Trustees consider what is most likely to promote WEA’s success for its learners, volunteers, and Association Members in the long term. Whilst the importance of giving due consideration to stakeholders is not new, WEA is explaining in more detail how the Board engages with stakeholders, thus seeking to comply with the requirement to include a statement setting out how Trustees have discharged this duty.

Trustees are fully aware of their responsibilities to promote WEA’s success in accordance with CA2006 s.172. Ongoing support and periodic training from WEA’s legal advisors, Bates Wells, is provided to ensure the Board continues to operate in line with good corporate practice and to respond to changes within the sector (e.g., reclassification as part of the public sector). In January 2023, Trustees received updated training and detailed legal advice on their duties and obligations following reclassification as a public sector body.

The Board has overseen the implementation of a new three-year strategy that ensures stakeholder interests, and particularly the interests of learners, are taken into account. The “Creating Opportunities” Strategy responds not only to material changes in the way that WEA receives its funding, but also addresses the reality that the communities WEA serves have different needs requiring tailored solutions. To this end, the Board has worked closely with the CEO/GS to implement a progressive programme of operational change to ensure that regional and national communities and academic expertise have greater influence on decision-making.

The Board continues to enhance its methods of engagement with the workforce. WEA seeks to engage all employees and volunteers in its activities and achievements, and to this end the “Creating Opportunities” Strategy has emphasised the development and improvement of technologies and systems to ensure WEA employees, volunteers, and learners, dispersed as they are across the whole of England and Scotland, are able to work together easily and efficiently.

Through these activities, Trustees reflect (inter alia) on how WEA engages with its stakeholders and opportunities for enhancement in future.

There continue to be a range of regular communication methods including management meetings, team meetings and newsletters to ensure that all staff are kept informed of WEA activities and achievements. There is also a monthly e-briefing from the CEO/GS that is distributed as part of the usual monthly newsletters to all staff as well as to the wider community of volunteers and Association Members.

WEA’s recognised trade union is engaged in consultations on staff terms and conditions, including pay awards, through the Joint Negotiating Consultative Committee.

WEA aims to work responsibly with its sub-contractors, particularly those involved with the delivery of provision and other services relating to WEA’s contracts with devolved combined authorities. Throughout the year, WEA has offered support in the on-boarding of its sub-contractors by sharing its delivery needs and the support available within WEA to enable effective relationships.

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Charity Governance Code

The Board of Trustees adopted the Charity Governance Code (larger charities) in 2018 and have discussed and assessed the organisation’s performance against the Code’s main principles and recommended practices since that time, and as updated in 2020.

Following updates to the Charity Governance Code in 2020, Trustees have considered their approach to putting into practice the Code’s EDI principles across WEA, and how Trustees and others involved in governance can demonstrate adherence to the enhanced integrity principle.

Principles of Equality, Diversity, and Inclusion – WEA received provisional IID accreditation in March 2022. Through the ongoing process of governance review, Trustees and members of Council have identified certain provisions in WEA’s Articles & Regulations which may be inadvertently discouraging diversity within the formal governance structure and is in the process of updating these provisions, starting with amendments to the composition of WEA Council in December 2022, and additional changes to the Board’s composition, nomination and recruitment procedures anticipated for agreement and implementation in 2023/24.

Principle of Integrity – Trustees have sought to address power imbalances within WEA’s structure of Board and local governance committees by introducing term limits on non-trustee appointments. Non-trustee members of committees are now limited to two terms of three years’ service on any one committee. In December 2022, the Articles were changed to introduce absolute term limits on Trustee appointments, closing a loophole in the Articles which created potential opportunities for certain individuals to remain on the Board of Trustees for as long as six terms of four years.

The ongoing process of governance review has continued to improve WEA’s adherence to the Charity Governance Code. WEA has made significant improvements in a number of areas where weaknesses had been previously identified:

Leadership – Succession planning on the Board of Trustees has been addressed through the agreement of a role description for a Vice Chair of Trustees and successful appointment of a sitting Trustee to that role. The Board has also agreed a Succession Planning Policy and convened a Nominations Committee to oversee the recruitment of new Trustees, anticipate upcoming vacancies on the Board and on committees of the Board, and to ensure the conduct of periodic skills audits.

Decision-making, risk, and control – Decision-making and delegation has been refined through clarifications in the designation of senior post holders having direct responsibility to the Board of Trustees, and to whom the Board may delegate directly. Delegation to committees is now clearly documented in up-to-date terms of reference. Through the Audit & Risk Committee, WEA has updated and reformed WEA’s risk appetite and the overall scoring and assessment of high-level risk. Frameworks for the identification and assessment of risk are being strengthened through implementation of clearer, more rigorous programmes of review at operational level, with Leadership Team taking a more active role in overall risk management.

Board effectiveness – The Board of Trustees has

successfully filled the skills gap identified in a recent skills audit through the recruitment of five additional Trustees, adding greater depth of financial expertise among the Board, and also adding expertise in law, human resources and organisational development, and knowledge of the public sector.

The Vice Chair of Trustees has a clear role description which includes acting as a sounding board for the Chair of Trustees for matters arising on the Board, and acting as an intermediary for other Trustees, if needed. The Vice Chair of Trustees has also taken responsibility for ensuring a performance review of the Chair of Trustees and overseeing the implementation of an annual process for Trustee self-assessment.

The constitution of a Nominations Committee means that there is now a clear route for nominations to the Board of Trustees and any of its committees to be considered. In addition to each committee regularly reviewing the terms of service for each of its members, the Nominations Committee also reviews vacancies arising in relation to clear skills and diversity profiles for each committee. This allows for vacancies arising to be anticipated and advertised well in advance to generate interest, and ensures clear and consistent recruitment procedures. At committee level, recruitment of new committee members is undertaken with priority placed on recruitment from within the Association Membership, and opening recruitment externally only if requisite skills and experience are not found within the Association Membership.

In accordance with DfE guidance on strengthening governance and ESFA conditions of funding, WEA will undertake an external review of its governance effectiveness to commence in January 2024. The law firm Stone King has been engaged for this purpose.

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Governance review

WEA has continued to progress the review of its governance to ensure that its governance structures, procedures and practices are brought up to date and aligned with the guidance set out in the Charity Governance Code (larger charities) as updated in 2020, and with DfE’s statutory guidance on supporting governance. Key milestones during the year were:

Throughout 2022/23, WEA Council continued to take an active role in the governance review and provide an important conduit for communication and feedback to and from Trustees and local governance committees. During the year, Trustees and Council agreed together that areas of focus would include:

Trustees and members of Council have together acknowledged that the funding and regulatory world outside of WEA is changing rapidly, and that WEA is obliged to respond to these changes to secure its future. In consideration of recent statutory guidance from DfE, WEA must ensure there are clear lines of sight from the Board to the local communities WEA serves. The Board and Council have agreed that clear lines of sight be built in the following areas as a matter of priority:

It has been acknowledged previously by Trustees and Council that additional changes to the Articles and/or Regulations should be considered and agreed to increase WEA’s alignment with provisions in the Charity Governance Code, and the expectations of funders and regulators. With support from a working group of trustees and members of Council, new Regulations – streamlined and simplified – have been drafted and accepted in principle. Subject to legal advice and any permissions that may be required from Charity Commission and/or ESFA, the Articles will also be updated. New Articles & Regulations are anticipated to be presented to the Board of Trustees for formal approval and adoption at the end of the 2023 calendar year, or in early 2024.

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33

Attendance at Board and Committee Meetings during 2022/23

Abbreviations:

A&R Audit & Risk Committee EC Education Committee F&CR Finance & Capital Resources Committee NomCo Nominations Committee

PC People Committee
SB Scotland Board
T/WEAC Joint meeting of the Board of Trustees &
WEAC WEA Council
WEA Council
John Widdowson
Board (Chair)
4/4
100%
T/WEAC
2/3
67%
Cliff Allum+
BoardT/WEAC
1/1
100%
F&CR
1/1
100%
Robin Cook
Board
4/4
100%
T/WEAC
2/3
67%
A&R
4/4
100%
SB
4/4
100%
WEAC
3/3
100%
Kevin Doyle
Board
4/4
100%
T/WEAC
3/3
100%
F&CR (Chair)
3/3
100%
Marion Flett
Board
3/4
75%
T/WEAC
3/3
100%
SB (Chair)
4/4
100%
Jon Gamble
Board
4/4
100%
T/WEAC
2/3
67%
F&CR
4/4
100%
Malcolm Grady
Board
4/4
100%
T/WEAC
2/3
67%
EC
4/4
100%
Christine Grant
Board
4/4
100%
T/WEAC
2/3
67%
A&R (Chair)
4/4
100%
NomCo
2/2
100%
Trustee
Board/
2022/23
Attendance
Committee
meetings*		 Trustee
Board/
2022/23
Attendance
Committee
meetings
Pat Kynaston
Board*
3/4
75%
T/WEAC
3/3
100%
F&CR
2/4
50%
WEAC (Chair)
3/3
100%
Geoff Layer
Board*
3/4
75%
T/WEAC
2/3
67%
EC
4/4
100%
Karen McArdle
Board*
3/4
75%
T/WEAC
3/3
100%
People
4/4
100%
SB
3/4
75%
Lindsay Pearson
Board*
2/4
50%
T/WEAC
3/3
100%
A&R
3/4
75%
EC (Chair)
4/4
100%
WEAC
2/3
67%
Marc Sherland+
BoardT/WEAC
1/1
100%
People
1/1
100%
Peter Threadkell
Board*
3/4
75%
T/WEAC
3/3
100%
People (Chair)
3/4
75%
EC
4/4
100%
NomCo
1/2
50%
Narinder Uppal
Board*
3/4
75%
T/WEAC
0/3
0%
People (Chair)
2/4
50%
NomCo (Chair)
2/2
100%
John Widdowson
Board (Chair)
4/4
100%
T/WEAC
2/3
67%
Cliff Allum+
BoardT/WEAC
1/1
100%
F&CR
1/1
100%
Robin Cook
Board
4/4
100%
T/WEAC
2/3
67%
A&R
4/4
100%
SB
4/4
100%
WEAC
3/3
100%
Kevin Doyle
Board
4/4
100%
T/WEAC
3/3
100%
F&CR (Chair)
3/3
100%
Marion Flett
Board
3/4
75%
T/WEAC
3/3
100%
SB (Chair)
4/4
100%
Jon Gamble
Board
4/4
100%
T/WEAC
2/3
67%
F&CR
4/4
100%
Malcolm Grady
Board
4/4
100%
T/WEAC
2/3
67%
EC
4/4
100%
Christine Grant
Board
4/4
100%
T/WEAC
2/3
67%
A&R (Chair)
4/4
100%
NomCo
2/2
100%
Trustee
Board/
2022/23
Attendance
Committee
meetings*		 Trustee
Board/
2022/23
Attendance
Committee
meetings
Pat Kynaston
Board*
3/4
75%
T/WEAC
3/3
100%
F&CR
2/4
50%
WEAC (Chair)
3/3
100%
Geoff Layer
Board*
3/4
75%
T/WEAC
2/3
67%
EC
4/4
100%
Karen McArdle
Board*
3/4
75%
T/WEAC
3/3
100%
People
4/4
100%
SB
3/4
75%
Lindsay Pearson
Board*
2/4
50%
T/WEAC
3/3
100%
A&R
3/4
75%
EC (Chair)
4/4
100%
WEAC
2/3
67%
Marc Sherland+
BoardT/WEAC
1/1
100%
People
1/1
100%
Peter Threadkell
Board*
3/4
75%
T/WEAC
3/3
100%
People (Chair)
3/4
75%
EC
4/4
100%
NomCo
1/2
50%
Narinder Uppal
Board*
3/4
75%
T/WEAC
0/3
0%
People (Chair)
2/4
50%
NomCo (Chair)
2/2
100%

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WEA’s Board of Trustees and its committees normally meet on a quarterly cycle of meetings so that each group would meet four times per year. Termly joint meetings of the Board of Trustees and WEA Council were implemented from the start of the 2021/22 financial year as part of efforts to support effective communication between trustees and local governing bodies.

Average attendance at meetings of the Board of Trustees in 2022/23 was 85%, excluding the three joint meetings between the Board of Trustees and WEA Council. Including these meetings, overall Trustee attendance was 76% (2021/22: 82%).

Average Trustee attendance at joint meetings of the Board of Trustees and WEA Council was 80%.

Average attendance at all Board and Committee meetings in 2022/23 was 84% (2021/22: 84%).

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Trustees’ declaration

Statement of trustees’ responsibilities

The Trustees (who are also Directors of the Company for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (“UK accounting standards”).

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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), and the provisions of the charity’s constitution. 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.

Insofar as each of the Trustees of the charitable company at the date of approval of this report is aware, there is no relevant audit information (information needed by the charitable company’s auditor in connection with preparing the audit report) of which the charitable company’s auditor is unaware. Each trustee has taken all of the steps that they should have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

Approved on behalf of Trustees on 14 December 2023.

Signed: John Widdowson, CBE Chair of Trustees

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Statement of corporate governance & internal control

The following statement is provided to enable readers of the Annual Report and Accounts of the Charity to obtain a better understanding of its governance and legal structure. This statement covers the period from 1 August 2022 to 31 July 2023 and up to the date of approval of the Annual Report and Financial Statements.

The Charity endeavours to conduct its business:

The Board of Trustees recognises that, as a body entrusted with both public and private funds, it has a particular duty to observe the highest standards of corporate governance at all times.

The Board of Trustees confirm that they have due regard for the Charity Commission’s guidance on public benefit and that the required statements appear elsewhere in these financial statements.

identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership);

The Charity is committed to exhibiting best practice in all aspects of corporate governance and, as a registered charity, follows compliance guidelines set by the Charity Commission. We have reported on our Corporate Governance arrangements by drawing upon best practice available, including those aspects of the UK Corporate Governance Code we consider to be relevant to the further education sector and best practice.

Approved by order of the Board of Trustees on 14 December 2023 and signed on its behalf by:

John Widdowson, CBE Chair of Trustees

Simon Parkinson CEO/GS

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Governing body’s statement on the regularity, propriety and compliance with funding body terms and conditions of funding

The Charity has considered its responsibility to notify the Education and Skills Funding Agency (“ESFA”) of material irregularity, impropriety and non-compliance with the ESFA terms and conditions of funding, under the financial memorandum in place between the Charity and the ESFA. As part of our consideration we have had due regard to the requirements of the financial memorandum.

We confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the ESFA.

We confirm, on behalf of the Charity, that after due enquiry, and to the best of our knowledge, we are not able to identify any material irregular or improper use of funds by the Charity, or material non-compliance with the ESFA’s terms and conditions of funding under the Charity’s financial memorandum.

Approved by order of the Board of Trustees on 14 December 2023 and signed on its behalf by:

John Widdowson, CBE Chair of Trustees

Simon Parkinson CEO/GS

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Independent auditor’s report to the members and trustees of the Workers’ Educational Association (“WEA”)

Opinion

We have audited the financial statements of WEA (‘the charitable company’) for the year ended 31 July 2023 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 34], the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, The Charities and Trustee Investment (Scotland) Act 2005, Further and Higher Education Act 1992 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Health and safety legislation, Ofsted Education Inspection Framework, Taxation legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals,

reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola May Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date 15th December 2023

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41

Independent reporting accountant’s report on regularity 31 July 2023

To the Trustees of the Workers’ Educational Association (the WEA) and Secretary of State for Education, acting through Education and Skills Funding Agency (the ESFA) and the Greater Manchester Combined Authority, Liverpool City Region Combined Authority, West of England Combined Authority, West Midlands Combined Authority, North of Tyne Combined Authority, Greater London Authority, West Yorkshire Combined Authority, South Yorkshire Mayoral Combined Authority and Cambridge and Peterborough Combined Authority (referred to as “the Authorities” below).

In accordance with the terms of our engagement letter dated 6 May 2021 and further to the requirements and conditions of funding in the ESFA’s grant funding agreements and contracts, or those of any other public funder, including the Authorities we have carried out an engagement to obtain limited assurance about whether anything has come to our attention that would suggest, in all material respects, the expenditure disbursed and income received by the WEA during the period 1 August 2022 to 31 July 2023 have not been applied to the purposes identified by Parliament and the financial transactions do not conform to the authorities which govern them.

The framework that has been applied is set out in the post16 audit code of practice (the Code) issued by the ESFA and in any relevant conditions of funding concerning adult education notified by a relevant funder.

This report is made solely to the trustees of WEA and the ESFA and the Authorities in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Trustees of the WEA and the ESFA and the Authorities those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept, or assume, responsibility to anyone other than WEA and the ESFA and the Authorities for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of the WEA and the reporting accountant

The trustees of the WEA are responsible, under the requirements of the Further & Higher Education Act 1992, subsequent legislation and related regulations and guidance, for ensuring that expenditure disbursed, and income received, are applied for the purposes intended by Parliament, and the financial transactions conform to the authorities that govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Code. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received, during the period 1 August 2022 to 31 July 2023 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Approach

We conducted our engagement in accordance with the Code issued by the ESFA and in accordance with any guidance provided by the Authorities. We performed a limited assurance engagement as defined in that framework.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity of the WEA’s income and expenditure. The work undertaken to draw to our conclusion includes a review of the design and implementation of WEA’s internal controls and review processes on regularity, supported by detailed tests on sample of costs incurred by the college and specific transactions identified from our review.

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects, the expenditure disbursed and income received during the period 1 August 2022 to 31 July 2023 has not been applied to purposes intended by Parliament, and the financial transactions do not conform to the authorities that govern them.

Cusme UK. LW?

Crowe U.K. LLP

Date: 15th December 2023

WEA trustees’ annual report and accounts

42

Financial statements

Statement of financial activities for the year ended 31 July 2023

2022/23 2022/23 2022/23 2021/22 2021/22 2021/22
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
Notes £’000 £’000 £’000 £’000 £’000 £’000
Income from:
Donations and legacies 41 148 189 46 2 48
Charitable activities 2 13,119 12,425 25,544 12,928 14,628 27,556
Investment income 19 1,343 - 1,343 712 - 712
Other 37 362 399 157 14 171
Total income 14,540 12,935 27,475 13,843 14,644 28,487
Expenditure on:
Charitable activities 3 13,547 11,485 25,032 12,243 14,767 27,010
Other 18b 1,089 - 1,089 650 - 650
Total expenditure 14,636 11,485 26,121 12,893 14,767 27,660
Net income/(expenditure) (96) 1,450 1,354 950 (123) 827
Transfers between funds 13 138 (138) - (30) 30 -
Other recognised losses:
Adjustment for defned 18e (448) - (448) (433) - (433)
beneft pension scheme
Net movement in funds (406) 1,312 906 487 (93) 394
Reconciliation of funds:
Total funds brought forward 13,360 634 13,994 12,873 727 13,600
Total funds carried forward 12,954 1,946 14,900 13,360 634 13,994

The statement of financial activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities. The notes on pages 45 to 75 form part of these accounts.

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43

Balance sheet as at 31 July 2023

2021/22
£’000
2022/23
£’000
Notes
~~0~~		 2021/22
£’000
2022/23
£’000
Notes
~~0~~		 2021/22
£’000
2022/23
£’000
Notes
~~0~~		 2021/22
£’000
2022/23
£’000
Notes
~~0~~
Fixed assets
Tangible assets 8 4,070 4,210
Intangible assets 8 1,213 281
Total fixed assets 5,283 4,491
Current assets
Debtors 9 2,050 2,071
Investments 16 6,693 2,602
Cash at bank and in hand 16 5,934 7,664
Total current assets 14,677 12,337
Liabilities
Creditors:amounts falling due within one year 10 (4,696) (2,412)
Net current assets 9,981 9,925
Total assets less current liabilities 15,264 14,416
Creditors:amounts falling due after one year 10 (38) -
Provisions for liabilities 22 (326) (422)
Total net assets 14,900 13,994
Funds of the Charity
Unrestricted funds 13 7,671 8,989
Designated funds 13 5,283 4,371
Total unrestricted funds 13 12,954 13,360
Restricted funds 13 1,946 634
Total charity funds 14,900 13,994

The financial statements on pages 42 to 75 were approved by the Board of Trustees and authorised for issue on 14 December 2023, and are signed on its behalf by:

John Widdowson, CBE Chair of Trustees

Simon Parkinson CEO/GS

Company Number: 2806910

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44

Cash flow statement for the year ended 31 July 2023

2022/23 2022/23 2021/22 2021/22
Notes £’000 £’000 £’000 £’000
Cash fows from operating activities:
Net cash provided by operating activities 14 3,164 684
Cash fows from investing activities:
Interest received 19 156 13
Purchase of tangible and intangible assets 8 (1,404) (463)
Net cash used in investing activities (1,248) (450)
Cash fows from fnancing activities:
Sale of Fixed Assets 445 -
Net cash provided by / (used in) fnancing activities 445 -
Change in cash and cash equivalents in the 2,361 234
reporting period
Cash and cash equivalents at the beginning 10,266 10,032
of the reporting period
Cash and cash equivalents at the end
of the reporting period 12,627 10,266
2022/23 2021/22
Notes to the cash fow statement £’000 £’000
Analysis of cash and cash equivalents
Investments 6,693 2,602
Bank and cash 5,934 7,664
Total cash and cash equivalents 12,627 10,266

WEA trustees’ annual report and accounts

45

Notes to the financial statements for the year ended 31 July 2023

1. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets and in accordance with the Companies Act 2006, Charities: Statement of Recommended Practice (FRS102) applicable in the UK and Republic of Ireland, the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2015. We believe this is the most appropriate basis of accounts preparation.

The Trustees have assessed WEA’s ability to continue as a going concern. The Trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements. This has included a review of budgets and cash flow forecasts through to July 2026 and consideration of the key risks, including devolution and forecast changes in the split between restricted and unrestricted income.

WEA has prepared a number of financial scenarios and the trustees consider that the WEA is well positioned to manage its business risks successfully. After consideration and enquiry, the Trustees have a reasonable expectation that the WEA has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Trustees continue to adopt the going concern basis in preparing these financial statements.

Cash management and working capital controls are in place to ensure restricted and unrestricted assets and reserves are appropriately managed.

Accordingly, the accounts have been prepared on the basis that the Charity is a going concern.

The WEA’s charitable objective is to promote adult and general education. The WEA meets the definition of a public benefit entity.

Fund accounting:

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

Designated funds represent the Associations funds relating to fixed assets.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The funds are maintained on a project by project basis or in accordance with the agreed restrictions on their use. The restricted funds reserves and movements on them are shown on a region by region basis in the notes to the accounts.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the Association is entitled to the income, its receipt is probable and the amounts can be measured reliably.

Voluntary income is received by way of donations and gifts and is recognised on a receivable basis where the receipt is probable and the amount can be reliably measured.

Volunteer time

WEA benefits from the active participation of volunteers, as referred to in the Trustees’ Report. The financial statements do not quantify any financial value on this contribution.

Grants are included in the the SOFA on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds in the balance sheet. Where income is received in advance of meeting any performance related conditions, there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance related conditions are met. Where entitlment occurs before income is received, the income is accrued.

Service level agreements are recognised in line with performance. These relate to fees and contract income.

Capital grants are recognised in full when there is unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in a restricted fund. Capital grants are recognised where there is entitlement and are not deferred over the life of the asset on which they are expended.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Governance costs comprise management of the Charity’s assets, organisational management and compliance with constitutional and statutory requirements.

Cost allocation

The Association has considered that it has just one activity, which is Education Provision, to which the majority of costs are directly attributable. Where costs cannot be directly attributed to particular headings they have all been allocated to activities on a basis consistent with their use.

Branches

The Charity carries out activities through a national network of non-autonomous branches which operate under the Charity’s registration number. These run courses for the Charity locally and receive support from the Charity through advice, publicity and meeting tutor costs. Branch activities are included in the Charity’s accounts. 15th December 2023

WEA trustees’ annual report and accounts

46

Notes to the financial statements for the year ended 31 July 2023

1. Accounting policies (continued)

Fixed assets and depreciation

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental costs of acquisition. Computers regardless of cost are capitalised.

Capital project items are capitalised and depreciated over 3 years from the time when the project commenced or in line with the life of the project.

Software costs (excluding maintenance costs), costing £1,000 or more are capitalised over 3 years in line with the Association’s policies.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold land Nil Freehold buildings over 50 years Improvement to buildings over 10 years Grant funded building improvements over the life of the project Grant funded equipment over the life of the project Other equipment over 3 years Computer software over 3 years

Investments and management of liquid resources

Cash includes cash in hand and at bank. Investments are short term deposits of up to 95 days notice, held as part of the Association’s treasury management activities. Movements in all short term investments, deposits and cash repayable at the end of the investment periods are reported under cash and cash equivalents in the cash flow statement.

Pension costs

At 31 July 2023 retirement benefits to employees are provided by the People’s Pension, the Teachers Pension (TP), the Scottish Publlic Pensions Agency (SPPA) and the Charity’s own Workers’ Educational Association pension scheme (WEA Scheme) whose Trustee and Administrator is The Pensions Trust.

The People’s Pension is a defined contribution scheme.

The TP, SPPA and WEA pension schemes are defined benefit schemes.

THE TP and SPPA are multi-employer schemes. It is not possible to identify the Association’s share of the underlying assets and liabilities of the schemes on a consistent and reliable basis and therefore, as required by FRS 102, the WEA accounts for the schemes as if they were defined contribution schemes. The Association’s contributions are charged in the period in which the salaries they relate to are payable, in accordance with the recommendations of the Government Actuary.

For the WEA Scheme, the difference between the fair value of the assets held in the Association’s defined benefit pension scheme and the scheme’s liabilities measured on an actuarial basis using the projected unit method are recognised in the Association’s balance sheet as a pension scheme asset or liability as appropriate. Changes in the defined benefit pension scheme asset or liability arising from factors other than cash contribution by the Association are charged to the SOFA in accordance with Financial Reporting Standards (FRS 102) - Retirement Benefits. The deficit arising from the adoption of FRS 102 is recognised as a reduction in the general reserves.

Surpluses are not recognised unless they are considered recoverable.

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the SOFA in the year in which they fall due.

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47

Notes to the financial statements for the year ended 31 July 2023

1. Accounting policies (continued)

Provisions and contingencies are recognised when the following three conditions are met: the Association has a present obligation (legal or constructive) as a result of a past event; it is probable that an outflow of resources embodying economical benefits will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation. The amount of the provision represents the best estimate of the expenditure required to settle the obligation at the end of the reporting period.

Contingent liabilities, including liabilities that are not probable or which cannot be reliably measured, are not recognised but are disclosed unless the possibility of settlement is considered remote. Contingent Assets are not recognised, but are disclosed where an inflow of economic benefit is probable.

Financial instruments

WEA has financial assets and lliabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transition value, and subsequently measured at the settlement value.

Debtors

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

Creditors

Creditors and provisions are recognised where the Association 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 the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and investments available within twenty-four hours.

Investments

Investments are short-tem highly liquid investments with a short maturity of 95 days or less.

Key judgements and assumptions

In the application of the charity’s accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

Details of the two main accounting estimates can be found in the notes to the accounts. The valuation of the freehold property is detailed in note 8 and the accounting valuation of the defined benefit pension scheme in note 18.

Redundancy

The WEA recognises a provision for redundancy costs when they are committed to a programme of redundancy at the balance sheet date. This can be recognised while a consultation process is underway as long as the redundancy programme has been announced. The provision is measured at the best estimate of the redundancy liability accrued to the end of the accounting period. No provision is made for the cost of salary and notice periods that will need to be worked after the end of the accounting period.

Dilapidations Provision

Provisions are made when a legal or constructive obligation, is identified and the liability can be reasonably qualified. The provision is based on an estimate provided by the landlord of the property or a benchmarked market rate per square foot of the leased property.

15th December 2023

WEA trustees’ annual report and accounts

48

Notes to the financial statements for the year ended 31 July 2023

2. Incoming resources from charitable activities

Unrestricted Restricted Total Total
2022/23 2022/23 2022/23 2021/22
Educational provision £’000 £’000 £’000 £’000
Fees and contracts 1,172 4,372 5,544 4,811
Education and Skills Funding Agency (ESFA) grant 11,919 986 12,905 11,464
Other grants receivable 17 7,067 7,084 11,282
Other income from activities 11 - 11 (1)
Total incoming resources from charitable activities 13,119 12,425 25,544 27,556

2a. Analysis of income from charitable activities

Total Total
2022/23 2021/22
£’000 £’000
ESFA unrestricted grants
ESFA contract 11,615 11,121
Other ESFA grants and contracts 304 343
Total ESFA unrestricted grants 11,919 11,464
Total ESFA restricted grants 986 -
Total ESFA contracts & grants 12,905 11,464
Other unrestricted grants
Total other unrestricted grants 17 52
Total other restricted grants 7,067 11,230
Total other grants 7,084 11,282

3. Resources expended on charitable activities

Unrestricted Restricted Total Total
2022/23 2022/23 2022/23 2021/22
£’000 £’000 £’000 £’000
Educational activity costs
Tutor costs - staff 2,410 1,866 4,276 3,808
Tutor costs - travel & subsistence 141 43 184 117
Regional costs - staff 3,561 2,869 6,430 6,953
Regional costs - other 882 450 1,332 1,095
Grants and subcontractor payments - 3,366 3,366 6,051
Total educational activity costs 6,994 8,594 15,588 18,024
Governance costs (note 4) 332 21 353 278
Support costs (note 5) 6,221 2,870 9,091 8,708
Total resources expended on charitable activities 13,547 11,485 25,032 27,010

WEA trustees’ annual report and accounts

49

Notes to the financial statements for the year ended 31 July 2023

4. Governance costs

Total Total
2022/23 2021/22
£’000 £’000
External audit fees
Crowe U.K. LLP (note 7) 56 51
Other Assurance fees
Crowe U.K. LLP (note 7) 20 19
Internal Audit Fees 12 11
Legal and professional fees 85 34
Trustees meetings and other costs (note 17) 11 1
Support costs - staff 169 162
Total governance costs 353 278

5. Support costs

Total Total
2022/23 2021/22
Educational provision £’000 £’000
Support costs - staff 5,273 5,370
Support costs - other 1,806 1,492
Facilities management 661 545
IT & communications 1,351 1,301
Total support costs 9,091 8,708

WEA trustees’ annual report and accounts

50

Notes to the financial statements for the year ended 31 July 2023

6. Staff costs

6. Staff costs
Total Total
2022/23 2021/22
£’000 £’000
Wages and salaries 13,433 13,436
Social security costs 1,153 1,136
Pension costs 1,364 1,263
Redundancy costs 198 459
Total staff costs 16,148 16,294

The above figure does not include agency staff employed by the Association at a cost of £123,084 (2021/22: £28,391) At the year end £34,469 (2021/22: £nil) of the redundancy costs remained unpaid.

The average number of employees during the year was as follows: 2022/23 2021/22
Staff 353 369
Tutors 506 597
Total average number of employees 859 966
Number of employees earning £60,000 per annum and above are as follows:
£60,001 - £70,000 5 3
£70,001 - £80,000 5 4
£80,001 - £90,000 - 5
£90,001 - £100,000 - 2
£100,001 - £110,000 - 1
£130,000 - £140,000 1 1
11 16

One member of staff (2021/22: Seven members) received redundancy payments in 2022/23 which took their earnings into the above brackets. Pension benefits are accruing for the other 10 (2021/22: 9) higher paid employees. Total employer pension contributions of £63,884 (2021/22: £105,460) have been made in relation to higher paid employees.

The key management personnel of the Charity comprise the Board of Trustees (12) and the Leadership Team 9 (2021/22:9). The total employee remuneration and benefits, employer NI and pension contributions of the key management personnel were £852,443 (2021/22: £887,756).

7. Analysis of charitable expenditure

Total Total
Charitable expenditure includes: 2022/23 2021/22
£’000 £’000
External auditors’ remuneration 56 51
Other assurance services performed by external auditors* 20 19
Depreciation 526 487
Proft/(loss) on disposal of tangible assets 359 40
Operating lease charges 182 179

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51

Notes to the financial statements for the year ended 31 July 2023

8. Fixed asset schedule

Assets in the
Land and Education Other course of Total
Buildings Equipment Equipment construction 2022/23
£’000 £’000 £’000 £’000 £’000
Tangible fxed assets
Cost
At 1 August 2022 6,069 1,927 4,351 121 12,468
Additions 240 4 128 7 379
Transfers 91 - - (91) -
Disposals (409) (1,473) (3,023) - (4,905)
At 31 July 2023 5,991 458 1,456 37 7,942
Depreciation
At 1 August 2022 2,244 1,809 4,205 - 8,258
Charge for the year 239 89 105 - 433
Disposals (336) (1,473) (3,010) - (4,819)
At 31 July 2023 2,147 425 1,300 - 3,872
Net book value
At 31 July 2023 3,844 33 156 37 4,070
At 1 August 2022 3,825 118 146 121 4,210

There is a charge granted over the freehold property 4 Luke Street, London, EC2A 4XW in favour of The Pensions Trust. At 31 July 2023 the charge is capped at £2,500,000.

Assets in the Course Total
Software of Construction 2022/23
£’000 £’000 £’000
Intangible fxed assets
Cost
At 1 August 2022 - 281 281
Additions - 1,025 1,025
Transfers 1,125 (1,125) -
At 1,125 181 1,306
Depreciation
Charge for the year 93 - 93
Net book value
At 31 July 2023 1,032 181 1,213
At 1 August 2022 - 281 281

WEA trustees’ annual report and accounts

52

Notes to the financial statements for the year ended 31 July 2023

9. Debtors: amounts falling due within one year

2022/23 2021/22
£’000 £’000
Trade debtors 348 361
Other debtors 20 76
Prepayments 246 151
Accrued Income 1,436 1,483
Total 2,050 2,071

10. Creditors: amounts falling due within one year

Amounts falling due within one year 2022/23
£’000		 2021/22
£’000
Trade creditors 733 634
Accruals 983 944
Social security & other taxes 477 541
Deferred income 2,503 293
Total 4,696 2,412

Creditors falling due after one year represents a rent accrual due to a rent free period on the lease of the new Leeds office.

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53

Notes to the financial statements for the year ended 31 July 2023

10a. Deferred income

2022/23 2021/22
£’000 £’000
Opening balance 251 285
Amounts released (250) (284)
Amounts deferred 2,502 292
Closing balance 2,503 293

Income received during the year is deferred when the conditions for income recognition have not been fully met. All income deferred in the previous year has been released with the exception of £1,164 of student credit notes.

11. Financial commitments - leases

As at 31 July 2023, the charity has annual commitments under non-cancellable leases as follows:

Land and building Total Total
leasehold 2022/23 2021/22
Expiry date: £’000 £’000 £’000
Within one year 115 115 90
One to fve years 498 498 123
Over fve years 405 405 19
Total fnancial commitments - leases 1,018 1,018 232

12. Analysis of net assets by fund

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds Funds funds funds funds
2022/23 2022/23 2022/23 2021/22 2021/22 2021/22
Net assets £’000 £’000 £’000 £’000 £’000 £’000
Fixed Assets 5,283 - 5,283 4,371 120 4,491
Net current assets 7,997 1,946 9,943 9,411 514 9,925
Long term liabilities (326) - (326) (422) - (422)
Net assets 12,954 1,946 14,900 13,360 634 13,994

WEA trustees’ annual report and accounts

54

Notes to the financial statements for the year ended 31 July 2023

13. Statement of funds

At 1 August Pension At 31 July
2022 Income Expenditure Transfers adjustment 2023
£’000 £’000 £’000 £’000 £’000 £’000
General funds 7,172
11,510		 (12,811) - - 5,871
Branch funds 485
439		 (456) (47) - 421
Regional branch reserve fund 1,332
-		 - 47 - 1,379
8,989
11,949		 (13,267) - - 7,671
Designated funds 4,371
1,404		 (630) 138 - 5,283
Pension defcit -
1,187		 (739) - (448) -
Total unrestricted funds 13,360
14,540		 (14,636) 138 (448) 12,954
Restricted funds:
Revenue 514
11,599		 (11,474) - - 639
Capital Grants 120
1,336		 (11) (138) - 1,307
Total restricted funds 634
12,935		 (11,485) (138) - 1,946
Total funds 13,994
27,475		 (26,121) - (448) 14,900

Designated funds represents the part of the Association’s funds balance represented by fixed assets.

Regional branch reserve fund represents the balance of accumulated funds transferred from branches to regions in line with the Association’s policy of ensuring balances of funds at branches are kept at levels that are sufficient, but not excessive. Part of the balance on this fund is made available each year for branches to bid into for the development of local activities supporting the WEA and the Association’s regional priorities. This reserve may also be used, at trustees’ discretion, to address funding gaps where use of ESFA funds is not permitted.

Transfers between unrestricted and restricted funds:

Fixed asset funds: the transfer of £138,094 from restricted funds to the designated fund reflects the capital expenditure from capital grants.

Prior year statement of funds

At 1
August Pension At 31 July
2021 Income Expenditure Transfers adjustment 2022
£’000 £’000 £’000 £’000 £’000 £’000
General funds 6,515 12,182 (11,527) 2 - 7,172
Branch funds 636 499 (582) (68) - 485
Regional branch reserve fund 1,296 - - 36 - 1,332
8,447 12,681 (12,109) (30) - 8,989
Designated funds 4,426 463 (518) - - 4,371
Pension defcit - 699 (266) - (433) -
Total unrestricted funds 12,873 13,843 (12,893) (30) (433) 13,360
Revenue 598 14,644 (14,753) 25 - 514
Fixed asset fund 129 - (14) 5 - 120
Total restricted funds 727 14,644 (14,767) 30 - 634
Total funds 13,600 28,487 (27,660) - (433) 13,994

WEA trustees’ annual report and accounts

55

Notes to the financial statements for the year ended 31 July 2023

13a. Statement of funds (continued)

Lottery funded projects

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2022 income income expenditure Fund 2023
£ £ £ £ £ £
South East
Big Lottery Fund and ESF Building Better
Opportunities Grant - Papworth
CommunityConnections Essex (6,411) 28,597 - (22,186) - -
BBO BLF Wk Tog. - 5,329 - (5,329) - -
BBO BLF Routes 7,808 3,956 - (3,956) - 7,808
Midlands
Big Lottery Fund and ESF Building Better
Opportunities Grant - Vista Will 17,819 52,147 - (69,966) - -
Big Lottery Fund St Ann’s Advice Centre -
D2N2 MoneySorted 502 2,528 - (3,030) - -
North West
Big Lottery Fund and ESF Building Better
Opportunities Grant - Sefton Liverpoool
Digital Inclusion (798) 49,049 13,740 (61,991) - -
Big Lottery Fund and ESF Building Better
Opportunities Grant -
Halton Liverpool Digital inclusion 10,522 12,703 20,028 (43,253) - -
Big Lottery Fund and ESF Building Better
Opportunities Grant - Cumbria,Carlisle & Eden
42,271		 (4,737) - - - 37,534
UKSPF Liverpool - 17,188 (508) (16,680) - -
Southern
Big Lottery Fund and ESF Building Better
Opportunities Grant-Aspire -
FamilyLearningSurrey (4,399) - - - - (4,399)
Big Lottery Fund and ESF Building Better
Opportunities Grant - BuildingFamilyBridges 809 - - - - 809
Slough Borough Council - Ways Into Work 618 - - - - 618
Yorkshire & Humber
BLF Men’s Health Lounge 927 - - - - 927
ATI - 18,696 - (19,851) - (1,155)
Scotland
BigLotteryFund - Reach Out Project 37,415 - - - - 37,415
Total lottery fund projects 107,083 185,456 33,260 (246,242) - 79,557
Other projects
ESF (note 13b) 7,643 892,094 30,065 (896,388) - 33,414
Other (note 13c) 398,481 10,129,773 329,058 (10,330,884) - 526,428
Total restricted revenue funds 513,207 11,207,323 392,383 (11,473,514) - 639,399

WEA trustees’ annual report and accounts

56

Notes to the financial statements for the year ended 31 July 2023

13b. Statement of funds (continued)

European Social Funds (ESF) and other European funding

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2022 income income expenditure Fund 2023
£ £ £ £ £ £
Scotland
Scottish Refugee Council - EU Asylum,
Migration and Integration Fund:
SharingLives SharingLanguages 4,562 - - - - 4,562
Scottish Refugee Council - EU Asylum,
Mitigation & Integration Fund:
New Scots Integration-
A Pathwayto Social and Economic Inclusion 31,342 82,827 30,065 (124,002) - 20,232
Aberdeen University - LEADER -
Elphinstone Home Project 9,878 - - (1,258) - 8,620
Midlands
ESF Nottingham Trent University (4,327) 909 - 3,418 - -
North West
ESF 19-21 CommunityGrants Manchester (1,425) 403,065 - (401,640) - -
ESF 19-21 CommunityGrants Lancashire (21,734) 140,051 - (118,317) - -
ESF 19-21 CommunityGrants Halton (432) 37,366 - (36,934) - -
ESF 19-21 CommunityGrants Liverpool (10,221) 227,876 - (217,655) - -
Total European restricted funds (note 13a) 7,643 892,094 30,065 (896,388) - 33,414

WEA trustees’ annual report and accounts

57

Notes to the financial statements for the year ended 31 July 2023

13c. Statement of funds (continued)

Other restricted funds

At Transfer At
1 August Received Accrued/ Funded from 31 July
2022 income deferred expenditure General 2023
£ £ income £ £ Fund £ £
Association Services
Olive Cordell 4,142 - - - - 4,142
Restricted Gift 500 - - - - 500
Digital Lifeline Campaign 673 - - - - 673
Lloyds 10,153 - - - - 10,153
Cumbria LA - Multiply - 27,869 - (27,658) - 211
Midlands
AlgyBeaven Legacy 1,375 - - - - 1,375
John Rhodes Fund 9,581 - - - - 9,581
Public Health Northamptonshire -
Northants Weight Management 4,455 - - - - 4,455
LLEP Digital Poverty (4,481) 31,754 - (28,847) - (1,574)
West Midlands Combined Authority - 754,081 - (754,081) - -
RecoveryCollege 51 - - - - 51
Dolphin Centre 1,528 - - - - 1,528
LCC Multiply - 16,822 - (16,822) - -
Northants Weight Mananagement - 3,000 - (3,000) - -
CRF - Wolverhampton VCS - 184 - (184) - -
CommunityFirst - 600 - - - 600
South East
Lester John Desmond Legacy 1,466 160 - (274) - 1,352
East of England Local Government
Association (EELGA) 31,397 25,257 - (57,813) - (1,159)
Cambridgeshire County Council -
Cambridgeshire Skills 21-22 - (11,564) - 11,564 - -
MultiplyNorfolk - 21,832 (3,897) (14,824) - 3,111
West Sussex Council - HKBNO Migration 23,393 41,250 - (64,643) - -
CPCA 2021-22 - 10,538 - (10,538) - -
CPCA 2022-23 - 249,490 25,519 (275,009) - -
West Sussex Multiply - 41,628 (6,364) (23,075) - 12,189
MultiplyBrighton and Hove - - - (31) - (31)
Joan Taylor Legacy 812 - - - - 812
London
StanleyJones - Ilford Legacy 14,294 - - (947) - 13,347
Margaret Cottier Legacy 3,753 - - - - 3,753
ICELP Together We Learn 32,481 - - (32,481) - -
GLA - National Skills Fund - 97,500 (53,921) (43,579) - -
GLA - Adult Education Budget - 1,384,101 (84,157) (1,299,944) - -
GLA - Good Work for All (62,420) 230,461 102,519 (270,560) - -
GLA - Multiply - 128,760 (41,836) (69,613) - 17,311
GLA - CommunityGrants - 140,000 - (140,000) - -
NHS England - NHS ESOL London Hospitals - 28,608 - (28,608) - -
NDY Restricted - Branch 15,000 (202) - (1,374) - 13,424
MJT Restricted - Branch 8,929 - - (395) - 8,534
Fred Adler Legacy 39,004 - - (47) - 38,957
Balance carried forward 136,086 3,222,129 (62,137) (3,152,783) - 143,295

WEA trustees’ annual report and accounts

58

Notes to the financial statements for the year ended 31 July 2023

13c. Statement of funds (continued)

Other restricted funds (continued)

At Transfer At
1 August Received
 Accrued/ Funded from 31 July
2022 income
 deferred expenditure General 2023
£ £ income £ £ Fund £ £
Balance brought forward 136,086 3,222,129 (62,137) (3,152,783) - 143,295
North East
100 Club 1,836
-		 - - -
1,836
North of Tyne MCA -
345,068		 792 (345,860) -
-
North West
RSC - AnyOld lons 14,959
-		 - (4,051) -
10,908
RAS - Look Upto the Skies 6,280
-		 - - -
6,280
Greater Manchester Combined Authority -
990,777		 330,212 (1,320,989) -
-
GMCA L3 Local -
12,561		 - (12,561) -
-
GMCA L3 National -
12,580		 23,656 (36,236) -
-
Liverpool CityRegion Combined AuthorityLot 1 -
834,928		 176,548 (1,011,476) -
-
Liverpool CityRegion Combined AuthorityLot 2 -
62,082		 - (62,082) -
-
LCRCA T&L -
(468)		 - 468 -
-
LivCRCA Lot 3 -
(2,567)		 18,643 (16,076) -
-
Liv NHS - MaternitySupport work -
17,041		 - (17,041) -
-
ESIF - CSI -
11,250		 3,750 (15,000) -
-
Trafford - BNO -
450		 - (450) -
-
Burnley- BNO -
810		 - (810) -
-
BooHoo -
1,400		 - (1,400) -
-
Liverpool - Multiply -
844,727		 (277,043) (567,684) -
-
Lancashire - Multiply -
675,933		 6,676 (682,609) -
-
Manchester - Multiply -
8,140		 - (8,140) -
-
South West
West of England Combined Authority- AEB -
445,006		 - (445,006) -
-
West of England Combined Authority- Multiply -
57,600		 - (55,818) -
1,782
Bristol CityCouncil - Bristol ESOL -
24,328		 - (24,328) -
-
Southampton CityCouncil - Multiply -
43,965		 - (32,266) -
11,699
Portsmouth CityCouncil - Multiply -
32,519		 - (32,583) -
(64)
K Smith Legacy 20,875
-		 - - -
20,875
Southampton CityCouncil - Innovation Fund -
-		 - (76) -
(76)
Balance carried forward 180,036 7,640,259 221,097 (7,844,857) - 196,535

WEA trustees’ annual report and accounts

59

Notes to the financial statements for the year ended 31 July 2023

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2022 income income expenditure Fund 2023
£ £ £ £ £ £
Balance brought forward 180,036 7,640,259 221,097 (7,844,857) - 196,535
Yorkshire & Humber
Mike Haywood Fund 869 - - -
-		 869
Yorkshire Adult Schools Union 8,300 - - -
-		 8,300
Leeds University 3,008 - - -
-		 3,008
NHS Confdence to study 7,911 - - -
-		 7,911
Heritage Fund - Women on the Land 25,853 39,000 - (62,704) - 2,149
Sheffeld CityCouncil - (6,151) - 6,151
-		 -
South Yorks MCA - 312,245 102,976 (415,221) - -
West Yorks MCA - 1,033,086 - (1,033,086) - -
Digital Inclusion - - - (68) - (68)
Sheffeld Refugee Council - 5,216 - (5,216) - -
CRF- VAR - 6,929 - (6,929) - -
WAMT - Green Growth - 139,455 - (10,290) - 129,165
MultiplyYork & North Yorkshire - 8,225 - (8,533) - (308)
MultiplyRotherham - 10,000 - (10,000) - -
MultiplyNorth Lincolnshire - 6,679 - (6,679) - -
UKSPF RISE - - - (28) - (28)
Families Get Active - 17,165 - (14,551) - 2,614
Balance carried forward 225,977 9,212,108 324,073 (9,412,011) - 350,147

WEA trustees’ annual report and accounts

60

Notes to the financial statements for the year ended 31 July 2023

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received
 Deferred Funded General 31 July
2022 income income expenditure Fund 2023
£ £ £ £ £ £
Balance brought forward 225,977
9,212,108		 324,073 (9,412,011) - 350,147
Scotland
Scottish Government - Health and Social Care -
Self Directed Support Project 2018-2020 10,842
11,638		 - (18,139) - 4,341
Edinburgh College - EU Dundee AMIF 4,815
7,434		 - (12,249) - -
Edinburgh College - Edinburgh CBAL 525
5,000		 - (2,400) - 3,125
Falkirk Council - Job Clubs 14,853
(9,283) -
(5,570)		 -
-
North Glasgow Housing Association -
ThrivingPlaces - ‘Possibilities Project’ 119
-		 - (119) - -
Aberdeenshire Council - Adult Education Programme 17,207
3,113		 - (7,735) - 12,585
Aberdeen CityCouncil - ParentingProject 12,260
-		 - (7,650) - 4,610
Reach Out Project - General 7,456
-		 - -
-		 7,456
Fife Council - TeachingGrant 25,800
15,720		 (2,309) (20,677) - 18,534
Aberdeen CityCouncil - TeachingGrant 5,198
7,520		 - (12,718) - -
Highland Council - Syrian Re-settlement Project 7,243
36,508		 - (33,628) - 10,123
North East Scotland Colleges - Reach Out 22/24 58,522
91,619		 - (86,321) - 63,820
Aberdeenshire Council - Home Offce - ESOL Project 4,212
-		 - (4,212) - -
Glasgow Life AMIF 2,720
1,269		 - (3,989) - -
Garden Project 466
-		 - (200) - 266
Lipman Miliband Trust 266
-		 - (266) - -
Adult Learning & Empowering
Communities Fund (ALEC) -
355,250		 (50,750) (304,500) - -
Fife Council - Revenue Grant -
34,988		 (5,138) (29,850) - -
Fife Council - TeachingGrant -
-		 28,545 (28,545) - -
Aberdeen CityCouncil - Revenue Grant -
15,000		 - (15,000) - -
North East College - Aberdeenshire ESOL -
17,424		 28,738 (46,162) - -
Aberdeenshire Council - Resettlement Programme -
9,950		 (9,950) -
-		 -
Aberdeenshire Council - Fairer Aberdeenshire
Fund - Reminiscence Project -
3,400		 - (3,012) - 388
Aberdeen Council of VoluntaryOrganisations (ACVO)
-
10,000		 - (1,516) - 8,484
Highland Cares - Digital Families -
9,975		 - (9,975) - -
Highlife Highland - Open Programme -
5,000		 - (4,808) - 192
Highland Multiply -
19,254		 - (13,156) - 6,098
Edinburgh College - ESOL Programme -
-		 9,600 (9,600) - -
HongKongBNO ESOL Project -
42,115		 - (31,960) - 10,155
Glasgow Clyde College - ESOL Strategy -
12,250		 - (12,250) - -
Falkirk Council - Falkirk ETU Literacies Programme -
3,650		 - (3,650) - -
Glasgow CityCouncil - Glasgow Communities Fund -
86,477		 - (86,477) - -
North Ayrshire Council - ESOL for Employability -
35,038		 - (35,038) - -
Scottish Government - Directorate for Mental Health
& Social Care Support -
87,356		 6,249 (67,501) - 26,104
Total other restricted funds (note 13) 398,481 10,129,773 329,058 (10,330,884) - 526,428

WEA trustees’ annual report and accounts

61

Notes to the financial statements for the year ended 31 July 2023

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2022 income income expenditure Fund 2023
£ £ £ £ £ £
Capital Grants
ESFA Capital Grant-EnergyEffciencies - 281,457 - -
(9,015)		 272,442
ESFA Capital Grant- FE Reclassifcation - 704,637 - -
(27,522)		 677,115
Restricted Capital Proceeds - 349,557 - -
-
349,557
Liverpool CityRegion 15,568 - - (8,032) -
7,536
BigLotteryFund - Sheffeld LearningCentre 61,923 - - (1,436) (60,487) -
BigLotteryFund - Clare House 42,707 - - (1,637) (41,070) -
Total restricted capital funds (note 13) 120,198 1,335,651 - (11,105) (138,094) 1,306,650

WEA trustees’ annual report and accounts

62

Notes to the financial statements for the year ended 31 July 2023

13d. Statement of funds (continued)

Prior year statement of funds (continued)

Lottery funded projects (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received
 Deferred Funded General 31 July
2021 income income expenditure Fund 2022
£ £ £ £ £ £
Eastern
Big Lottery Fund and ESF Building Better
Opportunities Grant - Papworth
CommunityConnections South 3,084
12,127		 - (15,211) - -
Big Lottery Fund and ESF Building
Better Opportunities Grant -
Papworth CommunityConnections Essex -
36,184		 - (42,595) - (6,411)
East Midlands
Big Lottery Fund and ESF Building Better
Opportunities Grant - Vista Will -
113,555		 - (95,736) - 17,819
Big Lottery Fund St Ann’s Advice Centre -
D2N2 MoneySorted -
38,140		 3,444 (41,082) - 502
North West
Big Lottery Fund and ESF Building Better
Opportunities Grant - Sefton Liverpoool
Digital Inclusion 2,884
34,660		 2,792 (41,134) - (798)
Big Lottery Fund and ESF Building
Better Opportunities Grant -
Halton Liverpool Digital inclusion 778
55,978		 33,201 (79,435) - 10,522
Big Lottery Fund and ESF Building
Better Opportunities Grant -
Cumbria,Carlisle & Eden 43,915
-		 - (1,644) - 42,271
Southern
Big Lottery Fund and ESF Building Better
Opportunities Grant - Routes CommunityWorks 8,267
39,200		 - (39,659) - 7,808
Big Lottery Fund and ESF Building Better
Opportunities Grant - Aspire - FamilyLearningSurrey -
28,188		 (4,242) (28,345) - (4,399)
Big Lottery Fund and ESF Building Better
Opportunities Grant - BuildingFamilyBridges 92
309		 - 408 - 809
Slough Borough Council - Ways Into Work -
29,217		 (5,298) (23,301) - 618
Midlands
BBO CommunityMat -
3,264		 - (3,264) - -
Yorkshire & Humber
BLF Men’s Health Lounge 927
-		 - - - 927
Scotland
BigLotteryFund - Reach Out Project 133,317
5,360		 (500) (100,762) - 37,415
Total lottery fund projects 193,264
396,182		 29,397 (511,760) - 107,083
Other projects
ESF (note 13e) (68,418) 4,741,800 683,928 (5,349,667) - 7,643
Other (note 13f) 472,879 8,503,662 288,990 (8,892,010) 25,000 398,481
Total restricted revenue funds 597,725 13,641,604 1,002,315 (14,753,436) 25,000 513,207

WEA trustees’ annual report and accounts

63

Notes to the financial statements for the year ended 31 July 2023

13e. Statement of funds (continued)

Prior Year Statement of funds (continued)

European Social Funds (ESF) and other European funding

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2021 income income expenditure Fund 2022
£ £ £ £ £ £
Scotland
Scottish Refugee Council - EU Asylum, Migration
and Integration Fund: Sharing
Lives SharingLanguages 4,562 - - - - 4,562
Scottish Refugee Council - EU Asylum,
Mitigation & Integration Fund:
New Scots Integration- A Pathway to
Social and Economic Inclusion 18,294 132,767 679 (120,398) - 31,342
Aberdeen University - LEADER -
Elphinstone Home Project 10,010 - - (132) - 9,878
Midlands
ESF Nottingham Trent University - - 10,217 (14,544) - (4,327)
North West
ESF 19-21 CommunityGrants Manchester (38,963) 2,791,182 343,269 (3,096,913) - (1,425)
ESF 19-21 CommunityGrants Lancashire (37,928) 368,888 47,524 (400,218) - (21,734)
ESF 19-21 CommunityGrants Halton 4,613 137,958 - (143,003) - (432)
ESF 19-21 CommunityGrants Liverpool (29,006) 1,311,005 282,239 (1,574,459) - (10,221)
Total European restricted funds (note 13d) (68,418) 4,741,800 683,928 (5,349,667) - 7,643

WEA trustees’ annual report and accounts

64

Notes to the financial statements for the year ended 31 July 2023

13f. Statement of funds (continued)

Prior year statement of funds (continued)

Other restricted funds

At Transfer At
1 August Received Accrued/ Funded from 31 July
2021 income Deferred expenditure General 2022
£ £ income £ £ Fund £ £
Association Services
Olive Cordell 4,142 - - - - 4,142
Restricted Gift 500 - - - - 500
Digital Lifeline Campaign 1,027 (354) - - - 673
SERO Consulting- EDS Champions - 8,000 - (8,000) - -
Lloyds - 41,190 - (31,037) - 10,153
Midlands
Joan Freeman Legacy 2,339 - - (2,339) - -
AlgyBeaven Legacy 1,375 - - - - 1,375
John Rhodes Fund 9,581 - - - - 9,581
Bishop Grosseteste University LincHigher
RaisingAspirations 4,179 - - (4,179) - -
Nottingham CityCouncil Restart Grant 13,624 - - (13,624) - -
Leicestershire County Council SHIRE
CommunityGrant Fund 425 3,840 - (4,265) - -
Public Health Northamptonshire -
Northants Weight Management - 9,938 - (5,483) - 4,455
Lincolnshire ASFL - - 4,674 (4,674) - -
ESOL for Intergration - 24,594 24,594 (49,188) - -
LLEP Digital Poverty - - - (4,481) - (4,481)
DerbyAdult LearningService - - 12,275 (12,275) - -
Eastern
Lester John Desmond Legacy 1,466 - - - - 1,466
Clarion Housing- Digital Skills 4,528 4,000 - (8,528) - -
East of England Local Government Association (EELGA) 10,051 52,991 - (31,645) - 31,397
Cambridgeshire CountyCouncil - 10,234 - (10,234) - -
Cambridgeshire County Council -
Cambridgeshire Skills 21-22 - 74,117 - (74,117) - -
Cambridge and Peterborough
Combined Authority- CPCA MCA 21-22 - 12,200 - (12,200) - -
London
StanleyJones - Ilford Legacy 15,125 - - (831) - 14,294
Margaret Cottier Legacy 3,753 - - - - 3,753
ICELP Together We Learn 37,349 - - (4,868) - 32,481
GLA - National Skills Fund - 1,416,035 (100,000) (1,316,035) - -
GLA - Adult Education Budget - 75,000 (25,000) (50,000) - -
GLA - Good Work for All - 243,604 7,761 (313,785) - (62,420)
North East
100 Club 1,830 6 - - - 1,836
Tees ValleyCombined Authority - 51,156 - (51,156) - -
North of Tyne Combined Authority 10,000 340,161 - (350,161) - -
Lipman-Miliban Grant - Lipman Trust 1,613 - - (1,613) - -
MCA - 20-21 Underspend - 10,691 - (10,691) - -
Balance carried forward 122,907 2,377,403 (75,696) (2,375,409) - 49,205

WEA trustees’ annual report and accounts

65

Notes to the financial statements for the year ended 31 July 2023

13f. Statement of funds (continued)

Prior year statement of funds (continued)

Other restricted funds (continued)

At Transfer At
1 August Received Accrued/ Funded from 31 July
2021 income Deferred expenditure General 2022
£ £ income £ £ Fund £ £
Balance brought forward 122,907 2,377,403 (75,696) (2,375,409) - 49,205
North West
RSC - AnyOld lons 14,871 - - 88 - 14,959
RAS - Look Upto the Skies 6,737 - - (457) - 6,280
CommunityFoundation- OneCom - - - - - -
Greater Manchester Combined Authority - 1,671,568 351,706 (2,023,274) - -
GMCA L3 Local - 36,356 (11,716) (24,640) - -
GMCA L3 National - 1,961 30,901 (32,862) - -
Liverpool CityRegion Combined AuthorityLot 1 - 545,716 114,961 (660,677) - -
Liverpool CityRegion Combined AuthorityLot 2 - 50,046 (19,017) (31,029) - -
LCRCA T&L - 9,772 468 (10,240) - -
LivCRCA Lot 3 - - 2,567 (2,567) - -
Liverpool NHS MaternitySupport Work - 24,098 (17,041) (7,057) - -
ESIF - CSI - 18,750 3,750 (22,500) - -
BNO Trafford - - 19,750 (19,750) - -
WRRF Trafford - 40,500 - (40,500) - -
South West
West of England Combined Authority - 322,750 - (322,750) - -
Southern
Fred Adler Legacy 38,868 - - 136 - 39,004
Joan Taylor Legacy 812 - - - - 812
K Smith Legacy 21,393 - - (518) - 20,875
Santander 277 - - (277) - -
West Sussex Council - HKBNO Migration - 75,000 (41,250) (10,357) - 23,393
Southampton CC -Quilt of Hope - 4,510 - (4,510) - -
MJT Restricted - Branch - - - (1,071) 10,000 8,929
NDY Restricted - Branch - - - - 15,000 15,000
Balance carried forward 205,865 5,178,430 359,383 (5,590,221) 25,000 178,457

WEA trustees’ annual report and accounts

66

Notes to the financial statements for the year ended 31 July 2023

13f. Statement of funds (continued)

Prior year statement of funds (continued) Other restricted funds (continued)

At Transfer At
1 August Received Accrued/ Funded from 31 July
2021 income Deferred expenditure General 2022
£ £ income £ £ Fund £ £
Balance brought forward 205,865 5,178,430 359,383 (5,590,221) 25,000 178,457
West Midlands
DudleyMBC - HealthyTowns 27,584 38,600 - (66,184) - -
West Midlands Combined Authority - 835,160 (102,858) (732,302) - -
RecoveryCollege 2,682 686 - (3,317) - 51
Dolphin Centre - 2,000 - (472) - 1,528
CRF Wolverhampton - 3,739 - (3,739) - -
Yorkshire & Humber
Mike Haywood Fund 869 - - - - 869
Yorkshire Adult Schools Union 8,300 - - - - 8,300
Leeds University 3,000 - - 8 - 3,008
Sheffeld CityCouncil 1,374 1,276 - (2,650) - -
Refugee Council 1,953 1,953 - (3,906) - -
NHS Confdence to study 21,345 - - (13,434) - 7,911
Sport England 15,880 78,596 3,168 (97,644) - -
Your Consortium - Action Towards Inclusion - 19,738 - (19,738) - -
Heritage Fund - Women on the Land 48,750 - - (22,897) - 25,853
Eastfeld Employment - Scarborough Borough Council 2,446 6,955 - (9,401) - -
Leeds CityCouncil - 225 - (225) - -
Sheffeld Lakeland Landscape Partnership -
Heritage Weekend - 4,900 (4,900) - -
Sheffeld CityCouncil - 6,151 (6,151) - -
Rotherham - Rotherham RF - 16,995 8,764 (25,759) - -
South Yorks MCA - Transition Project - 210,000 - (210,000) - -
West Yorks MCA - 1,076,102 1,677 (1,077,779) - -
Balance carried forward 340,048 7,475,355 276,285 (7,890,711) 25,000 225,977

WEA trustees’ annual report and accounts

67

Notes to the financial statements for the year ended 31 July 2023

13f. Statement of funds (continued)

Prior year statement of funds (continued) Other restricted funds (continued)

At Transfer At
1 August Received Accrued/ Funded from 31 July
2021 income Deferred expenditure General 2022
£ £ income £ £ Fund £ £
Balance brought forward 340,048 7,475,355 276,285 (7,890,711) 25,000 225,977
Scotland
Scottish Government - Adult Learning and
EmpoweringCommunities Fund HQScot Govt - 319,000 (24,170) (294,830) -
Scottish Government - Adult Learning and
EmpoweringCommunities Fund - HQNTTF - 92,662 (92,662) -
Scottish Government - Impact Funding Partners -
PEC Fund - Women in the Highlands Project 14,583 5,168 (7,083) (12,668) - -
Scottish Government - Health and Social Care -
Self Directed Support Project 2018-2020 26,499 49,874 (1,330) (64,201) - 10,842
Highlife Highland - Open Programme 5,869 - - (5,869) - -
Edinburgh College - SE Edin ESOL - 9,600 - (9,600) - -
Edinburgh College - EU Dundee AMIF - 21,462 - (16,647) - 4,815
Edinburgh College - Edinburgh CBAL - 13,899 (5,000) (8,374) - 525
Falkirk Council - Job Clubs 14,853 22,280 (22,280) - 14,853
North Glasgow Housing Association -
ThrivingPlaces - ‘Possibilities Project’ 119 - - - - 119
Aberdeenshire Council - Adult Education Programme 21,499 9,337 (13,629) - 17,207
Aberdeen CityCouncil - ParentingProject 12,260 - 12,260
Glasgow City Council - Glasgow Communities
Fund - Glasgow CF 20/2 - 108,196 12,346 (120,542) - -
Reach Out Project - General 7,456 - 7,456
Fife Council - Fife Cnl TEACH - 36,701 (7,340) (29,361) - -
Fife Council - TeachingGrant 17,538 16,489 (3,298) (4,929) - 25,800
Aberdeen CityCouncil - Revenue Grant - 28,125 (5,625) (22,500) - -
Aberdeen CityCouncil - TeachingGrant 3,812 14,100 (2,820) (9,894) - 5,198
Highland Council - Syrian Re-settlement Project - 47,914 6,354 (47,025) - 7,243
North East Scotland Colleges - NE Shire ESOL - 27,213 14,641 (41,854) - -
North East Scotland Colleges - A’shire CBAL - 12,870 - (12,870) - -
North East Scotland Colleges - ACC-Afghan ESOL - - 5,108 (5,108) - -
North East Scotland Colleges - Reach Out 22/24 - 78,000 (1,000) (18,478) - 58,522
Aberdeenshire Council - Home Offce - ESOL Project 5,535 - - (1,323) - 4,212
Glasgow Clyde College - 12,250 - (12,250) - -
Falkirk Council - Employment & TrainingUnit - 12,975 (1,050) (11,925) - -
Foundation Scotland - Response,Recovery,Resilience -
-		 204 - (204) - -
Scot Book Trust - 675 - (675) - -
GlasgLife AMIF - - 12,676 (9,956) - 2,720
Glasgow CBAL - 30,165 - (30,165) - -
Garden Project - 5,930 - (5,464) - 466
PA Network22/23 - - 20,359 (20,359) - -
North Ayrshire Council - ESOL 2020-2022 818 53,178 (63) (53,933) - -
Lipman Miliband Trust 1,990 - - (1,724) - 266
Tota~~l~~ot~~h~~er restricte~~d~~ ~~f~~un~~d~~s~~(~~note 13~~)~~ 472,879 8,503,622 288,990 ~~(~~8,892,010~~)~~ 25,000 398,481

WEA trustees’ annual report and accounts

68

Notes to the financial statements for the year ended 31 July 2023

13f. Statement of funds (continued)

Prior year statement of funds (continued)

Other restricted funds (continued)

At Transfer At
1 August Received Accrued/ Funded from 31 July
2021 income Deferred expenditure General 2022
£ £ income £ £ Fund £ £
Capital Grants
Greater Manchester Combined Authority 89 - - (89) - -
Liverpool CityRegion 13,931 - - 1,637 - 15,568
BigLotteryFund - Sheffeld LearningCentre 63,316 - - (2,785) 1,392 61,923
BigLotteryFund - Clare House 43,961 - - (2,507) 1,253 42,707
BigLotteryFund - East Midlands LearningCentre 7,447 - - (9,646) 2,199 -
Total restricted capital funds (note 13) 128,744 - - (13,390) 4,844 120,198

WEA trustees’ annual report and accounts

69

Notes to the financial statements for the year ended 31 July 2023

14. Reconciliation of change in resources to net cash inflows from operating activities

2022/23 2021/22
£’000 £’000
Net incoming resources 1,354 827
(Gain)/loss on disposal of fxed assets (359) 40
Depreciation 526 487
Other fnance charges 1,089 650
Decrease/(Increase) in debtors 21 (241)
Increase in creditors and provisions 2,226 17
Interest received (156) (13)
Other fnance income (1,187) (699)
Non cash movements in respect of FRS 102 s.28 (350) (384)
Net cash infow from operating activities 3,164 684
15. Return on investments and servicing of fnance
2022/23 2021/22
£’000 £’000
Income from investments and interest receivable 156 13
Net cash infow for return on investments and servicing of fnance 156 13

16. Analysis of change in net funds

At At
Net cash 1 August 2022
£’000		 Cash fow
£’000		 31 July 2023
£’000
Short term deposits 2,602 4,091 6,693
Bank and cash 7,664 (1,730) 5,934
Total net funds 10,266 2,361 12,627

17. Trustees’ expenses and remuneration

The Trustees neither received nor waived any emoluments during the year.

2022/23 2021/22
Trustees’ expenses £’000 £’000
Trustee meeting 3 -
Trustee travel 1 1
Trustee Recruitment 7 -
11 1

The number of trustees reimbursed out of pocket travel and subsistence expenses was 3 (2021/22:2).

The Trustees hold indemnity insurance. During the year, the Association spent £3,528 (2021/22: £2,423), to purchase this indemnity insurance policy.

WEA trustees’ annual report and accounts

70

Notes to the financial statements for the year ended 31 July 2023

18. Pension schemes

At 31 July 2023 the pension schemes operated by the Association are the Teachers’ Pensions scheme (TPS), the Scottish Public Pension Agency scheme (SPPA) and The People’s Pension. Staff are auto-enrolled into these schemes based on job roles and eligibility.

The WEA pension scheme closed to new accruals at 31 August 2019. The existing scheme funds continue to be managed by The Pensions Trust (TPT) who act as trustee and administrator. Contributors were transferred to the People’s Pension scheme.

The TP and SPPA schemes are unfunded multi-employer defined benefit schemes for teaching staff.

The pension charge for the year includes contributions payable to the TPS of £1,179,451 (2021/22 £1,112,823) and at the year-end £115,576 (2021/22 £105,799) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and following a public consultation in 2021 the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations were completed in January 2022, and the results indicated that there would be no changes to benefits or member contribution required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has indicated that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The pension charge for the year includes contributions payable to the SPPA of £68,061 (2020/21: £48,285) and at the year-end £6,589 (2021/22: £5,691) was accrued in respect of contributions to this scheme.

The employer SPPA contribution rate is 23.00%.This is a single level contribution and not tiered the same way as employee contributions which attract rates of between 7.2% and 11.9%.

The People’s Pension scheme is a defined contribution scheme . The lowest permitted employee contributions are 3.5% with the employer contributing 4.5%. This meets the new Government requirements of a workplace pension scheme with minimum contributions of 8% with an employer funding at least 3%. Employees can still choose to make higher contributions but the employer contribution remains at 4.5%.

WEA trustees’ annual report and accounts

71

The WEA Scheme is a defined benefit scheme in the UK and provides benefits on a final remuneration basis for service up to 31 July 2016 and on Career Average Revalued Earnings (CARE) basis for service from 1 August 2016. The scheme is funded and is contracted out of the State scheme. A full actuarial valuation was carried out at 30 September 2017 and has been updated to 31 July 2023 by a qualified actuary independent of the scheme’s sponsoring employer. This scheme was closed to new contributions at 31 August 2019.

The triennial actuarial valuation for September 2020 shows a deficit of £3,646,000. The WEA agreed with the Trustee that they will aim to eliminate the deficit over a period of 8 years and 10 months by the payment of annual contributions of £493,000 per annum until 1 December 2018 and then £347,000 per annum (increasing by 3% each December). The sheme expenses are paid at £8,200 per month. The September 2023 triennial actuarial valuation is not yet complete.

The principal assumptions used by the actuary in accordance with FRS 102 s.28 are shown below. The Trustees have relied upon advice from the Pensions Trust in determining the financial assumptions.

WEA trustees’ annual report and accounts

72

Notes to the financial statements for the year ended 31 July 2023

18. Pension schemes (continued)

2022/23 2021/22
Discount rate 5.25% 3.48%
Infation (RPI) 3.17% 3.20%
Infation (CPI) 2.85% 2.84%
Deferred Revaluation: RPI max 5% 3.17% 3.20%
Deferred Revaluation: RPI max 2.5% 2.50% 2.50%
Salary Increases 4% in year, 4% thereafter 3% in year, 2% thereafter
Allowance for pension in payment increases of CPI, max 5% p.a. 2.78% 2.78%
Allowance for pension in payment increases of CPI, max 3% p.a. 2.24% 2.24%
Allowance for pension in payment increases of CPI, max 2.5% p.a. 1.99% 1.98%
using notional commutation factors 75% of maximum
The mortality assumptions adopted at 31 July 2020 (2019) imply the following life expectancies (in years):
Male retiring at age 65 in 2022 (2021) 21.3 21.8
Female retiring at age 65 in 2022 (2021) 23.8 24.2
Male retiring at age 65 in 2042 (2041) 22.9 23.4
Female retiring at age 65 in 2042 (2041) 23.4 25.7

a) Fair value

2022/23 2021/22
£’000 £’000
Present value of scheme liabilities (24,844) (31,964)
Fair value of scheme assets 25,352 34,606
Effect of asset ceiling (508) (2,642)
Surplus - -
Amounts in the balance sheet
Liabilities - -
Assets - -
Net surplus to be recognised - -

The surplus in 2021/22 and prior years is not considered a recoverable amount and therefore has not been recognised in the financial statements in accordance with FRS102.

b) Change in liabilities during the period

2022/23 2021/22
£’000 £’000
Opening scheme liabilities 31,964 39,935
Current service cost - -
Interest cost 1,089 650
Contributions by employees - -
Loss due to beneft changes - -
Actuarial loss (6,836) (7,491)
Benefts paid (1,373) (1,130)
Closing liabilities 24,844 31,964

WEA trustees’ annual report and accounts

73

Notes to the financial statements for the year ended 31 July 2023

18. Pension schemes (continued)

c) Change in assets during the period

2022/23 2021/22
£’000 £’000
Opening fair value of the scheme assets 34,606 42,733
Interest income 1,187 699
Expenses (144) (101)
Return on assets excluding interest income (9,418) (8,080)
Contributions by employer 494 485
Contributions by employees - -
Benefts paid (1,373) (1,130)
Closing assets 25,352 34,606
d) Analysis of amount charged to the income statement
2022/23 2021/22
£’000 £’000
Current service cost - -
Expenses 144 101
Beneft changes - -
Net interest cost - -
Total amount recognised in the income statement 144 101
e) Statement of other comprehensive income
2022/23 2021/22
£’000 £’000
Return on assets excluding interest income (9,418) (8,080)
Experience (losses) on liabilities (1,137) (2,140)
Gain for change of assumptions 7,973 9,631
Effect of change in non-recoverable surplus 2,232 205
Net cumulative actuarial loss (350) (384)
The loss for change in assumptions is further analysed below:
Gain/(Loss) from change of demographic assumptions 1,013 (913)
Gain from change of fnancial assumptions 6,960 10,544
7,973 9,631
Amount recognised in the SOFA
Amount recognised in the SOFA to bring the pension surplus to nil (448) (433)

WEA trustees’ annual report and accounts

74

Notes to the financial statements for the year ended 31 July 2023

18. Pension schemes (continued)

f) Fair value of assets

Value at Value at
31 July 2023 31 July 2022
£’000 Proportion £’000 Proportion
Equity type assets 1,137 4.5% 3,397 9.8%
Bonds 12,880 50.8% 16,843 48.7%
Property 2,380 9.4% 3,007 8.7%
Other 8,955 35.3% 11,359 32.8%
Total value of assets 25,352 100.0% 34,606 100.0%

h) Amounts for the current and previous periods are as follows:

2022/23 2021/22 2020/21 2019/20 2018/19
£’000 £’000 £’000 £’000 £’000
Present value of scheme liabilities (24,844) (31,964) (39,935) (40,484) (35,089)
Scheme Assets 24,844 31,964
39,935		 40,484 37,911
Surplus (defcit) - - - - 2,822
* adjusted for asset ceiling, £2,642,000 (2020/21 £ 2,798,000, 2019/20 £524,000) to bring surplus to zero.
Experience adjustments on scheme liabilities (1,137) (2,140) 98 199 92
Percentage of the present value of scheme liabilities 4.6% 6.7% -0.2% -0.5% -0.3%
Experience adjustments on scheme assets (9,418) (8,080) 2,046 2,869 3,711
Percentage of the fair value of scheme assets -37.9% -25.3% -4.5% 7.1% 9.8%

i) Additional information for The Pensions Trust - WEA Pension Scheme

The scheme is a defined benefit (final salary) funded pension scheme. The scheme was closed to further contributions at 31 August 2019. At the time all contributors were transferred to the People’s Pension.

The scheme assets do not include investments issued by the sponsoring employer, nor any property occupied by the sponsoring employer.

The overall expected rate of return on the scheme assets has been based on the average expected return for each asset class, weighted by the amount of asset in each class.

The scheme holds Contingent Assets in the form of a security in favour of the Trustee over the office property situated at 4 Luke Street, London, EC2A 4XW which was valued at £3,550,000 on 31 March 2019, in respect of all sums which are, or may become due and payable by the sponsoring employer to the Scheme. At 31st July 2022 the charge is capped at £2,500,000.

The scheme holds quoted securities and these have been valued at bid-price.

WEA trustees’ annual report and accounts

75

Notes to the financial statements for the year ended 31 July 2023

19. Investment income

2022/23 2021/22
£’000 £’000
Interest on cash deposits 156 13
Interest on pension scheme assets 1,187 699
1,343 712

20. Investments in subsidiaries

At 31st July 2023 the Association owned the entire issued share capital of 1 ordinary shares (2021/22: 1 share) of WEA Trading Ltd. At 31st July 2023 the aggregate of share capital and reserves of WEA Enterprises Limited was £1. (2021/22: £1)

The company has not traded during the period and has nil assets at 2022/23 (2021/22: nil). Consolidated accounts have not been prepared given that the results of the company and its aggregate reserves and capital are immaterial in the opinion of the trustees.

21. Related party transactions

Owing to the nature of the Association’s operations and the composition of the Board of Trustees, being drawn from local, public and private sector organisations, it is likely that transactions will take place from time to time with organisations in which a member of the Board of Trustees may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the Association’s Financial Regulations and normal procurement procedures. During the year there were related party transactions of £54,450 (2021/22: £23,314).

Odgers Berndtson have charged the Association £54,450 in 2022/23 which is part payment of a contract to recruit a Director of People and Culture and a Director of Finance and IT. Narinder Uppal, a WEA trustee, is an employee of a company within the Odgers financial group. Transactions with ESFA are detailed in notes 2 and 2a.

22. Provisions

2022/23 2021/22
£’000 £’000
Leased property £’000 £’000
dilapidation
At 1 August 422 472
Provisions charged - 12
Provisions released (96) (62)
At 31 July 326 422

Provisions are made when a legal or constructive obligation is identified and the liability can be reasonably quantified. These provisions are reviewed annually as at the year end date and are adjusted to reflect the latest best estimate of the present obligation concerned. These adjustments are reflected in the statement of financial activities for the year.

In my eyes, real success is based on personal relationships, making a difference in the community and going to sleep with a smile on your face.

Jamie WEA learner

The WEA 4 Luke Street London EC24 4XW

The WEA is a charity registered in England and Wales (no. 1112775) and in Scotland (no. SC039239).