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← Workers' Educational Association

2024-07-31-accounts

WEA statutory annual report and financial statements

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Workers’ Educational Association

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Workers’ Educational Association trustees’ annual report and accounts 2023/24

Contents

Introduction 3
Reference and administrative details 4
Objectives and activities 6
Strategic report 11
Financial review 19
Risk management 22
Structure, governance and management 25
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 Workers’ Educational Association (“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 2024.

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 beginning on page 25.

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 January 2024 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 Malcolm Grady Christine Grant Jamey Johnson (appointed 01/11/2023) Abda Khan (appointed 01/11/2023)

Pat Kynaston (resigned 31/07/2024) Geoff Layer (Vice Chair) Ronald Marks (appointed 01/08/2024) Stephanie Mason (appointed 01/11/2023) Karen McArdle (resigned 10/06/2024) Lindsay Pearson (resigned 31/07/2024) Matthew Pointon (appointed 01/08/2024) Peter Threadkell (resigned 31/07/2024)

Company Secretary

Kathleen Formosa

Leadership team (to 31 July 2024)

Chief Executive & General Secretary Director of Finance & IT Director for Quality & Learner Services Director for Scotland Director of Education (Community Learning) Director of Education (Skills & Employability) Director of Governance Director of People & Culture

Simon Parkinson Shaun Tyndall Preeya Buckley Ray McCowan Katie Easey Chris Morgan Kathleen Formosa Angie Evans

Leadership team (from 1 August 2024)

Chief Executive & General Secretary Chief Financial Officer Director of Quality & Curriculum Director of Scotland & Contract Management Director of Learning Director of External Relationships Director of Governance & Purpose Director of People, Strategy & Culture

Simon Parkinson Shaun Tyndall Preeya Buckley Ray McCowan Navjot Johal Chris Morgan Kathleen Formosa Angie Evans

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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

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

Balfour & Manson 54-66 Frederick Edinburgh EN2 1LS

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 2023/24 and 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 2023/24, 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.

2023/24 was a busy and pivotal year for WEA, during which the organisation:

Our learners & learning

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

These outcomes have underpinned our continuing process to embed a systematized, rigorous approach to curriculum planning, 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. Targeted interventions to increase participation and reduce drop-out of courses and qualification pathways continued to be prioritised this year.

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Ofsted inspection

Following a full Ofsted inspection of provision in England in May 2024, Ofsted judged WEA as a “good” provider of adult education. Across the five separate areas inspected by Ofsted, WEA received the following judgments:

WEA were judged as making a reasonable contribution to meeting skills needs. Safeguarding arrangements were judged as effective.

WEA’s previous inspection by Ofsted was a short inspection in 2017. Its last full inspection was in 2013. In all cases, WEA was judged as a “good” provider.

Funding challenges

WEA has acknowledged continued, significant shifts 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 curriculum offer that includes both accredited and non-accredited skills provision, and that is supported by a growing range of provision in maths, English, and ESOL. WEA continues to build its capabilities in the employability training arena as it builds a longer track record of successful skills provision.

WEA has and will continue to ensure that a positive learner experience remains at the centre of all activities and initiatives. WEA continues to develop and to refine its programme of peer-reviewed class visits and proactive support for learner progression through WEA programmes.

Leveraging the significant investments in technology WEA has made over the last two years, progressive improvements have been made to embedding approaches to blended and digitally enabled learning for all provision. All learners are supported in the use of Canvas (WEA’s virtual learning environment) to enhance their classroom experience, whether they are taught fully online or in venue. At minimum, all learners use Canvas to complete their learning plans and evaluations for each course. WEA also continued to develop asynchronous learning tools in support of Multiply provision in England and Scotland, and to expand and improve its numeracy curriculum generally.

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.

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.

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, exoffenders, those recovering from substance or alcohol addiction, and young adults moving on from looked-after settings – were introduced and developed.

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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.

Our members & volunteers

WEA is constitutionally an Association of members and views an engaged membership as critical to its long- term success and sustainability. WEA has sought to deepen the engagement with the Association Membership during the year to ensure the Association’s reach, to grow its profile, and amplify its voice not only as a provider of adult education, but also as a thought leader and champion of adult education generally.

Many Association Members are also volunteers for WEA. Most WEA volunteers engage with the Association through its governance, either as lay members of committees of the Board of Trustees, or as members of one of WEA’s fourteen Local Advisory Panels working across England to expand WEA’s charitable reach, to ensure WEA is meeting and responsive to local need, and to hear and respond to the learner voice. WEA volunteers also support and contribute to Association-wide events and communications throughout the year.

Recent investment in new IT systems has enabled improvement in the onboarding experience for new volunteers, and in the ongoing training offer for new and continuing volunteers. Following WEA’s staff restructuring, the placement of the Volunteering Manager within the People, Strategy & Culture Directorate has enabled closer alignment of volunteering and HR functions and supported a more rigorous and regular volunteer recruitment and vetting process, and improved communication with volunteers.

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 2023/24, WEA continued to grow its network of like-minded organisations in the UK and internationally. WEA has strong and established relationships with national and international organisations in the sector (e.g., Holex, SOLIDAR, IFWEA) and engages these allied organisations in ways that build 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.

Our people

WEA recognises that its people are its greatest asset. In 2023/24, WEA began consultation with staff on a root and branch reorganisation of its staffing structure. Approval for the restructure was sought from the Board of Trustees and received following an extraordinary meeting held for the purpose of considering the proposal at a meeting on 28 March 2024. The new structure, as approved, was implemented from 1 August 2024.

Reshaping the Way We Work

With the aim of refreshing and reinforcing what WEA has been historically, and what it aims to be in future – i.e., a member-led charity with a proud legacy of support for thousands of learners across the UK – WEA sought through the “Reshaping the Way We Work” project to increase support for and responsiveness to learners, maximise the impact on the communities where WEA works, and improve organizational agility and efficiency. WEA did not seek to change its strategic objectives through the “Reshape” project.

WEA dispensed with regional arrangements, which often duplicated efforts and sometimes impeded effective working across geographies, in favour of an organisation based on specialist teams. WEA staff continue to be spread across England and Scotland but reporting lines have been shifted to support and enable transparency and accountability. Following 52 days of consultation (inclusive of a five day pause during the period of Ofsted inspection) with staff, WEA’s new structure took effect from 1 August 2024.

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WEA tutors were not affected by “Reshaping the Way We Work” and were out of scope for the

restructure. WEA continues to work toward maximizing opportunities for its part-time and sessional tutor workforce. In line with curriculum development efforts, WEA continues to develop a strategic workforce planning framework to analyse, manage and prepare its current and future tutor workforce requirement.

WEA continues its commitment to supporting its paid and voluntary workforce by:

WEA achieved Investors in People (“IIP”) silver accreditation in November 2021. WEA’s next IIP accreditation review is anticipated to take place in 2024/25.

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.

Our systems & processes

Phase one of WEA’s digital transformation and infrastructure project concluded in 2022/23, following agreement by the Board of Trustees to invest c. £3.4 million in digital infrastructure, new systems, and corresponding operations. Phase two of this investment was carried out over the course of 2023/24 and is now substantially complete.

Expenditure on digital transformation and digital infrastructure stood at £2.3 million at 31 July 2024. There will be a further £500K spent in 2024/25 to finish the project and launch the new finance and HR systems, and to complete the IT refresh. Overall, the digital transformation project will end c. £600K below budget.

WEA has maintained CyberEssentials+ accreditation in 2023/24.

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 employability. 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.

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 overall contract monitoring.

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

2021/22 2022/23 2023/24
Unrestricted 49% 52% 52%
Income
Restricted 51% 48% 48%
Income

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As in previous years, WEA engaged mayoral authorities throughout 2023/24 to protect its position as a grant funded provider. WEA also sought to explore alternative funding routes outside of funds available from DfE (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.

At the same time as it continues to pursue and deliver against publicly funded grants and education contracts, 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. Anticipating that the current direction of travel in public funding will continue, WEA introduced through “Reshape” a new External Relationships Directorate to focus on finding and responding to new funding streams, and to develop bespoke education and training programmes. In the year ahead, WEA will seek to leverage its position as a national provider of adult education to partner with public and private sector agencies across England and Scotland.

WEA has continued to maintain a strong cash flow profile. It ends the 2023/24 financial year with a self-assessed ESFA financial health rating of “good.”

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 learning opportunities provided by WEA have had on learners, and the real measurable differences WEA has made to individual learners, their communities and society are included in the latest WEA Impact Report, published in January 2024.

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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 35,000 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 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 emphasizes 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.

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 invested significantly in new digital systems and infrastructure improvements to introduce best-in-class systems for learner records management and all aspects of curriculum development and planning. This digital transformation project was rolled out over two years (2022-2024) and has enabled more robust data reporting, enabling speedier and clearer decision-making around curriculum and resourcing for education delivery based on transparent, objective evidence and attention to emerging trends.

Following more than six months of planning among Leadership Team and eight weeks of consultation with staff, WEA implemented its new staffing structure on 1 August 2024. The new staffing arrangements and leadership structure reinforce the improvements made through technology and digital infrastructure investment by rationalising staff roles, workloads, and pay grades, and by clarifying chains of accountability. As with all large-scale change programmes, it will take time to embed and realise the full benefits of the staff restructure.

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. It will also continue to support staff teams to deliver the best possible learner experience, to improve learners’ understanding of the outcomes they can achieve, and to support them to 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 will seek to leverage the positive outcome of its 2024 Ofsted inspection to be recognised within the sector as visionary and innovative in its teaching of skills, and deeply committed to the support and success of its learners. WEA continues its commitment to reaching the hardest to reach learners and supporting learners experiencing challenging life circumstances. How WEA balances this commitment

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alongside its ambitions to achieve an Ofsted grading of “outstanding” will, alongside other big questions, form part of its next three-year strategy.

2024/25 priorities

WEA’s priorities for 2024/25 will continue to be 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. Work has already begun on the development of the next three-year strategy. It is anticipated that this will be put forward to the Board of Trustees for approval in July 2025, for implementation from 1 August 2025.

WEA will continue 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 will maintain ambitious internal targets in these areas accordingly.

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:

It will also continue its work to embed improved course planning and recognizing 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.

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:

The strategic objectives are supported by four enabling objectives:

Learning for life

WEA believes that open access to adult education creates a more equal and just society and improves the home lives of our learners and their families. WEA is mindful that 25% of the UK population are likely to struggle with online services[1] . WEA accepts estimates that 9 million adults have low levels of literacy or numeracy[2] and that 5.1 million UK residents cannot speak English well[3] . WEA delivers a curriculum that helps learners to develop essential skills, improves their everyday life, and gives them confidence to achieve their personal goals. WEA offers a broad and balanced Learning for Life curriculum spanning courses to improve learners’ numeracy, literacy, and digital skills, to courses designed to improved confidence, physical and mental wellbeing, communication, nutrition, budgeting and financial knowledge.

1 UK Consumer Digital Index, 2023. 2 Learning for Work Institute, 2022. 3 ONS, 2023.

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To enable this work, WEA will:

As government funding priorities continue to shift their focus to investment in Skills for Jobs and higherlevel 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 and 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 2024/25 by delivering:

Learning for work

WEA believes that everyone deserves a fulfilling and sustainable place to work, where they can maximise their potential and contribution to society. WEA enables its learners to flourish through a needs-based curriculum, and innovative and learner-driven approach to teaching, learning, and assessment, and individualized personal support.

WEA is mindful that 13 million people in the UK were living in poverty in 2020/21[4] and that 57% of 16- to 64-year-olds without qualifications are unemployed[5] . WEA accepts estimates that 90% of the UK workforce (c. 30 million people) may need to reskill by 2030[6] . In support of learners seeking to enter or re-enter the workforce, or to change or advance in their careers, WEA proactively supports learners to progress. The Learning for Work curriculum supports current and aspiring workers in fields such as health and social care, education, childcare, and community interpreting. Learners pursuing self-employment or volunteering are also supported. Digital and other functional skills (e.g., administration, management) and ESOL for work comprise a significant portion of this offer.

WEA has designed a dynamic skills and employability offer, matched to local and national need, and shaped by working in partnership with employers and employer groups. To enable this work, WEA will continue to:

WEA has and will continue to endeavour to recruit specialist tutors at scale in a market where competition with other organisations for in-demand experience is significant. Initial efforts to recruit specialist tutors in specific subject areas where it did not have notable existing strength (e.g., maths) has been successful. WEA will continue to review its existing tutor base, 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.

4 Joseph Rowntree Foundation, 2023. 5 Gov.UK, 2023.

6 CBI/McKinsey, 2021.

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In 2024/25, WEA will evidence its effectiveness in delivering against its Learning for Work aims by committing to:

Feedback from unemployed learners enrolled in WEA’s skills-based courses in 2023/24 confirmed that among this cohort of learners:

Of learners who were employed during their course, 24% reported increased earnings or promotion after taking their skills course.

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:

With 26% of adults reporting that they do not speak to their neighbours or members of the community on a regular (monthly) basis[7] , and nearly 4 million adults claiming that they endure chronic loneliness[8] , 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.

WEA is confident in its position that learning builds communities. Feedback from learners enrolled in WEA’s community learning and cultural programmes in 2023/24 confirmed that among this cohort of learners:

Acknowledging that the number of learners who may be able to pay for provision may be suppressed 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 a programme of full-cost provision of arts and cultural learning that may no longer be supported by tailored learning funds in future.

WEA is keenly aware that public funding support for certain provision that WEA has historically offered is under threat from 2025. A priority in 2024/25 therefore will be to determine the full direct cost of delivering a particular course. We will continue to support learners who do not have means to pay, but the intention is to ask each learner with the means to pay to pay a proportionate contribution toward the cost of their course, and to pay it forward by supporting a learner who may not have the means to bear the cost. In other words, WEA will adhere to the principle that any learner, regardless of their means, should be enabled to join a full cost course.

7 UK Gov, 2021.

8 ONS, 2023.

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To achieve its aims for full-cost provision, WEA will:

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

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, supporting employment, economic growth, and productivity, 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.

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 2024/25, 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 wellbeing, and civic involvement will also continue to account for significant amounts of the provision in Scotland.

Improving systems, processes and infrastructure

WEA believes that its systems, working methods and practices, and estate should enable learner success. Improvements to digital systems and infrastructure has helped WEA to improve the experience of its learners and make its back-office ways of working more efficient. WEA will continue its work from the previous year to simplify and smooth the way it works and engages with learners through intelligent use of data, integration between systems, and automation, with the intention of freeing 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 modernizing its IT infrastructure to ensure its reliability, resilience and future proofing. It has resolved several issues relating to technical debt and transformed its digital environment by (among other things) replacing its legacy student record system and rebuilding its website. WEA has restructured its operating model, in part to leverage the capabilities now available to the organisation following systems and infrastructure improvements.

WEA will continue to evolve its estate plan as improvements to digital infrastructure and the new operating model are embedded. 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. WEA has partnered with MyCarbon to support its efforts to evidence social value and achieve a carbon neutral target.

In 2024/25, WEA aims to:

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

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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 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 2024/25, 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 2024/25 to:

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 seeks to develop its people and build a resilient and responsive culture to embrace the opportunities and the challenges that it knows lie ahead. Focused work will be done to ensure thorough embedding of its new staff structure and operating model. This work will be supported through training and development experiences to equip employees to deliver against agreed strategies, and to deliver and respond to change in a way that is caring, innovative, and respectful. WEA will also ensure volunteers and trustees are equipped to participate in continuous improvement and effectiveness in governance, nationally and locally.

WEA increased the size of its Board of Trustees from 12 to 15 members alongside other changes to the Articles and Regulations in 2023/24. Increasing the size of the Board has helped to ensure a robust collective skill set covering all areas of trustee duties and responsibilities and supports a committee structure that provides specialist scrutiny and advice on matters of strategic importance. At local level, Regional Committees were wound down in favour of implementing Local Advisory Panels that advise on local need, the quality of the learner experience, and opportunities for WEA to extend its charitable reach. At all levels of governance, a professionalised governance team supports to enable adherence to best practice and to ensure effectiveness.

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. With an eye toward achieving what it perceives to be a balance between the risks and the benefits of large-scale organisational change, WEA seeks to achieve the following in 2024/25:

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Governance review

WEA completed the final year of its internal programme of governance review in 2023/24. Beginning in 2018/19 and for the four years following, WEA sought to progressively update and develop its governance structures, standards, and procedures to ensure these aligned with the Charity Governance Code (larger charities), DfE guidance, and the expectations of funders.

Governance development during the year 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. WEA also articulated a clearer purpose and remit for the WEA Council, with the aim of establishing this committee of the Board of Trustees as WEA’s chief stakeholder body.

Finally, WEA concluded its review of the Articles and Regulations to remove outdated provisions and unnecessary procedural detail, and to ensure provisions in the Articles aligned with charity law in England and Wales, as well as in Scotland. Changes were required to the winding down provisions in WEA’s Articles to align these with the laws of Scotland, and thus Charity Commission consent was sought. This was received, and a special resolution of Trustees agreed, bringing the new Articles and Regulations into effect from 11 July 2024.

In accordance with new DfE requirements, WEA undertook an external review of governance effectiveness. The external review was conducted by Stone King who were commissioned in November 2023 and delivered a report to Trustees in July 2024.

Work to ensure full embedding of the changes to the Articles and Regulations, and to work through the action plan agreed by Trustees in consideration of the recommendations made in Stone King’s report on governance effectiveness will form the basis for governance development and improvement in 2024/25.

Additional information on governance development and improvement appears as part of the report on Structure, Governance & Management beginning on page 25.

Equality, diversity & inclusion

WEA aims to create conditions that ensure staff, volunteers and learners are treated solely based on 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 People, Strategy & Culture 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. While progress against the plan was put on hold during the Reshaping the Way We Work project, WEA has returned to efforts to progress the action plan. Significant progress against the FREDIE action plan is anticipated in 2024/25. WEA will also re-engage with the FE Black Leadership Group to support its work on EDI.

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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 continues to make progress toward greater diversity among its own numbers. Recent updates to WEA’s governance structure and procedures – e.g., increasing the size of the Board, increased focus on external recruitment, etc. – have supported the Board in diversifying its membership and that of the Board’s committees. The Nominations Committee continues its 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 is undertaking 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.

Within WEA’s education provision, EDI learner data demonstrates that WEA courses engage a significantly higher number of learners from disadvantaged background 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 continues to be 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 (January 2024):

WEA encourages staff to be kind to each other and to talk openly about mental health. Across the UK, WEA maintains a network of 13 staff who are trained mental health first aiders. 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 People, Strategy & Culture team also run several 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 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 and their families with confidential support, advice, and guidance covering health and well-being, and legal and financial well-being. 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

This year has been financially challenging for the WEA with income falling significantly short of expectations resulting in a significant operational loss in 2023/24. Performance on MCA contracts was particularly poor, and this led to significant amounts of contractual income not being achieved. A restructure was carried out at the end of the year to fundamentally change how the WEA delivers education to meet the challenge on MCA contracts which are more skills focused and where funding is performance based. The cost of the restructure was circa £1m, and this will reduce the cost base by £2m per year from 2024/25 onwards. A robust budget is in place for 2045/25 which will return the WEA to an operational surplus.

The financial statements show total income for 2023/24 of £32.7m (2022/23: £27.5m) with expenditure of £28.7m (2022/23: £26.1m). The increase in income was largely due to receiving a capital grant of £9.6m to develop our estate, with £6.9m recognised in 2023/24.

In 2023/24 income received from the ESFA for education delivery remained steady at £11.9m. There were no new devolution deals in year, so the core grant remained the same, and adult skills delivery overachieved in line with 2022/23 performance.

The total income received from MCA areas in 2023/24 is £6.2m (2022/23: £7.5m). This is a reduction of £1.3m compared to last year and reflects a number of operational challenges that have impacted performance across various contracts this year. MCA contracts are performance based, so failure to hit contractual targets means the full amount of income cannot be claimed.

Income received from fees is £591k (2022/23: £859k). This is a circa £250k reduction compared to last year and was due to the knock-on impact of poor MCA performance and a reduction in active branches across the country.

Other grant and charitable income received is £5.4m (2022/23: £4.5m). The increase is due to securing a £5m contract to deliver Manchester Community Grants (£2.5m recognised in 2023/24) which offset the loss of ESF funding (£824k) as this programme has now ended. Multiply funding has slightly increased to £1.63m in 2023/24 however this programme is due to wind down in 2024/25.

We secured 3 capital grants in 2022/23 totaling £9.6m to improve and develop our estate. Income is recognised when the DfE signs off individual works and we have recognised £6.9m of income in our 2023/24 accounts. A further £1.7m has been deferred until it is signed off by the DfE, although plans are in place to allocate the funds.

Educational activity costs were £17.3m in 2023/24 (2022/23: £15.6m). The increase is largely due to the cost of the restructure which was required to rebalance the business and reduce overhead costs; this cost circa £1m and will save £2m going forward. The other key factor was utilising subcontractors for a larger portion of our delivery in the North West, and also the distribution of the grants as part of the Manchester Community Grants programme.

The WEA’s net movement in funds for 2023/24 is £3.6m (2022/23: £0.9m) after transfers and pension adjustments. There is a surplus of £78k on unrestricted funds, however this masks a significant shift between unrestricted funds and designated funds (also classed as unrestricted). ‘Free’ unrestricted reserves reduced by £3.5m to £4.2m, £1.2m of which was planned spend to finish the Digital Transformation Project. Operational loss contributed £1.3m of the reduction, and the cost of the restructure contributed to a further £1m. The restructure was a direct response to the operational performance issues described above.

Designated reserves increased by £3.5m to £8.8m as result of investments to finish the Digital Transformation Project (£1.2m) and spending the Grant money to invest in the Estate (£3m) less the Depreciation charge.

The surplus on restricted funds of £3.5m is mostly due to the timing difference between receiving (and getting sign-off) for the Estates grants spend, and actually spending the money. This balance will reduce throughout 2024/25.

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Reserves Policy

Total funds at 31 July 2024 were £18.5m (2023/24: £14.9m). This is represented by unrestricted funds of £13m and restricted funds of £5.4m

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 2024 is £4.2m.

When considering the minimum free reserves balance 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 a range of between £3.5m and £4m was considered to be sufficient.

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.

Principal Funding Sources

WEA receives its principal funding from ESFA, which provided 50% 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 WEA’s defined benefit pension scheme at 31 July 2024 (under FRS102 principles) is an asset that is capped at a ‘nil balance’ on the Balance Sheet as the asset is not recognised in line with accounting practice. 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 2026 returned to ESFA in July 2024, WEA does not anticipate any liquidity problems.

Cash and short-term deposits for the year ended 31 July 2024 were £13.6m (2022/23: £12.6m).

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Funds held as Custodian Trustees on behalf of others

WEA does not hold funds as Custodian Trustees 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.

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 Volunteering Manager. In 2023/24, WEA did not receive any complaints regarding its fundraising activities (2022/23: 0). 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 register. 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 and Leadership Team will work in partnership in 2024/25 to substantively update WEA’s statement of risk appetite and its risk register in line with its post-Reshape activities and priorities, and in anticipation of a new strategy to be agreed near the end of the 2024/25 financial year.

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.

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

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

Top five risks with mitigating actions taken:

Risk Mitigating actions taken
Culture not aligned to
the level of
performance and
change resilience we
need to meet our
mission and strategic
objectives.		 “Reshaping the Way We Work” is a programme of change and organisational
development planned through the second half of 2023/24 and implemented from
1 August 2024. Although the programme was carefully planned and thorough
consultation undertaken with all affected staff, the changes brought in through
Reshape are still embedding. WEA are confident that the new operating model
aligns with sector best practice and meets the expectations of funders and
regulators. The Leadership Team, under advice from the Director of People,
Strategy & Culture will regularly update committees and the Board of Trustees
on issues arising as the new structure embeds, the degree to which Reshaping is
enabling full delivery against strategic objectives, and how organisational
resilience is being built at a time of rapid external change.
Poor contract / sub-
contractor
management.		 The use of subcontractors to support WEA’s education delivery is limited and
reducing. Where contracts enable or require the use of subcontractors, the
relevant Contract Relationship Manager will manage these relationships within
their portfolio.
Detrimental
change in
government
policy,
regulation, or		 WEA is dependent on funding from central and local governments which are
increasingly restricting how the funding they provide may be applied. The
resulting imbalance of restricted and unrestricted income is limiting WEA’s
ability to deliver the type of provision on which it has built its positive
reputation, and that speaks directly to its core mission.
funding policy WEA is keenly aware of Government’s plans to wind down ESFA and the
priorities to consolidate and streamline support for skills provision. WEA is
anticipating increasing restrictions on education funding and a need to pursue
alternative funding streams. In restructuring, a new Directorate – External
Relationships – has been constituted to pursue funding arrangements with
departmental agencies other than DfE, and partnerships with industry, trusts,
and foundations in order to diversify its income.
Failure to meet contract terms, or to deliver fully against education contracts
Loss of income carries a risk of either not earning the full amount of contractual income or
income being clawed back, and a risk that funding contracts are not renewed.
WEA is actively working to improve its monitoring of contract performance
and has reorganised staff teams to enable closer monitoring and greater
accountability for delivery.
Data corruption,
loss of data, hacking
or infiltration		 WEA holds a CyberEssentials+ accreditation and is annually re-accredited to
ensure the standard continues to be met. Nevertheless, WEA is keenly
aware of recent ransomware and other cyber-attacks of education providers
and cultural institutions and therefore remains vigilant in maintaining a high
standard of security for its systems. Recent systems, policy, and procedural
improvements have helped to mitigate this risk.

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Fraud Risk Assessment

The risk of financial fraud at WEA is 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 are routinely tested through internal and external audits. Auditors consistently confirm a high level of assurance that these are robust.

Financial policies, including Fraud Prevention, Anti- Bribery & Corruption, and Whistleblowing were updated in 2024 and are scheduled for the next review in 2027. Internal auditors confirmed adequate assurance of fraud awareness across the Association through an internal audit conducted in 2022/23. Information security and fraud awareness are addressed through induction training modules offered to staff and volunteers as part of onboarding and refresher training.

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 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.

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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 and Regulations (last amended 11 July 2024). The governing documents are available to the public through the WEA website at: Our Ref: (wea.org.uk)

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 online and in-venue across England and Scotland. 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 – in 2023/24, there were 122 Branches and six Local Associations through which courses were delivered to selfselecting groups of learners – as well as in the local and national governance of WEA.

WEA maintains staffed offices across England and Scotland. The largest of these offices is in Leeds. WEA’s registered office is in London.

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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.

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 as updated 11 July 2024, the composition of the Board of Trustees is as follows:

WEA has not appointed any Funder Trustees.

In consideration of guidance from ESFA, and the Charity Governance Code (larger charities), the Board of Trustees has within the last two years recruited and appointed Trustees having qualifications in accounting, human resources and organisational development, and knowledge of the public sector and public funding.

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 meet termly or quarterly, according to terms of reference agreed by the Board.

The Board of Trustees is currently chaired by a co-opted Trustee. In accordance with Article 10, 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. 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 reappointment.

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 non-executive. 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

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Trustees at each subsequent meeting.

During the 2023/24 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.

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, in part through quarterly review of management accounts and financial forecasts. The Committee takes responsibility for overseeing the production of the year-end financial statements. 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, 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 the Association’s stakeholders and the Board of Trustees. In practice, WEA Council is an important forum for discussion of shared interests across communities across England and Scotland. 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 2023/24 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, considering the diversity and skills profiles and needs of each group.

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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.

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. Current practice is to seek suitable co-opted trustee candidates first from within the Association Membership, and then through external recruitment if suitable internal candidates are not found. 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. Coopted 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 19), 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 local and national activities. All Trustees are encouraged to undertake governance development training offered by the Education Training Foundation (“ETF”).

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.

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Leadership team

Leadership Team meets least monthly over two to three days and reviews the quality and effectiveness of teaching and learning activity, organisational performance against the strategy and budget agreed by Trustees, performance against contracts (including the ESFA contract), current and future staffing needs, emerging risks, and forward planning.

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.

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 (in 2023/24, senior post holders were: 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 11 – 18. 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 decision-making. 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 considered. 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.

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

There continues 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 subcontractors, 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 subcontractors by sharing its delivery needs and the support available within WEA to enable effective relationships.

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. WEA’s adherence to the Code and its principles formed a significant part of the external review of governance effectiveness carried out between January and July 2024, and which judged WEA’s governance as effective.

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 process of governance review, Trustees and members of Council identified certain provisions in WEA’s Articles & Regulations which were felt to inadvertently impede greater diversity within the formal governance structure. Such provisions were modified or removed when updating the Articles and Regulations in July 2024. Significant modifications made with the explicit aim of improving diversity included amendments to the composition of the WEA Council, expansion and modification to the Board’s composition, and the constitution of a Nominations Committee.

Principle of Integrity – Trustees have sought to address power imbalances within WEA’s structure of Board, Board committees, and Local Advisory Panels by introducing term limits on non-trustee appointments. Non-trustee members of committees and Advisory Panels are now limited to two terms of three years’ service on any one committee or panel. 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. Absolute term limits were retained in the new Articles brought into effect in July 2024.

WEA continues to work toward greater and explicit adherence to the Charity Governance Code. It continues to make significant improvements in areas where weaknesses have been previously identified.

Leadership – Succession planning on the Board of Trustees has been addressed through the appointment of a Deputy Chair and agreement of a clear role description for the Deputy Chair. 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 upto-date terms of reference. The Audit & Risk Committee maintains oversight of 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.

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Board effectiveness – WEA has progressively updated and reformed its governance structure, practices and procedures over the course of the previous four years. In 2023/24, in accordance with DfE guidance on strengthening governance and ESFA conditions of funding, WEA undertook an external review of its governance effectiveness, commencing in January 2024. The law firm Stone King was engaged for this purpose. In the judgment of Stone King:

taking account of meeting observations, discussions and documentation available, [the] review recognises that the governing of the WEA Board of Trustees is committed, positive, challenging and demonstrates ambition. There is a supportive and enquiring governing culture. Significant development of the governance framework undertaken over recent years has positively impacted governing effectiveness.

Following formal receipt and acceptance of Stone King’s report on WEA governance effectiveness at a meeting on 11 July 2024, the Board of Trustees has agreed an action plan which will guide further governance development and improvement over the course of the 2024/25 financial year. A summary of Stone King’s report is available on the WEA website.

Governance review

During the 2023/24 financial year, WEA adopted new Articles & Regulations which updated and simplified language throughout and reformatted the Articles to broadly follow the format of model articles for “foundation” type charitable companies. The charity’s objects, aims and principles were unchanged. Other changes to the Articles & Regulations included:

Provisions in the Articles allowing the appointment of funder trustees were retained in accordance with requirements of WEA’s funding agreements with ESFA and MCAs in England. There are currently no funder trustees on WEA’s Board of Trustees.

The adoption of new Articles & Regulations was the last stage in the governance review of WEA which commenced in 2018. The Board and committee arrangements enabled by the new Articles, the local governance arrangements set out in Regulations, and an expanded, professionalised governance team mean that WEA is structured and resourced to ensure its governance structures, procedures and practices are kept up to date and remain 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.

Trustees are aware 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. Together with WEA Council, Trustees have worked to build and maintain clear lines of sight from the Board to the local communities WEA serves, placing priority on the following areas:

Local Advisory Panels, implemented in 2022/23, are instrumental in providing assurances to the Board of Trustees and other stakeholders that WEA is meeting local need (as defined by funders, and needs identified outside the scope of funding agreements), surfacing and responding effectively to learner feedback, and identifying opportunities for WEA to extend its charitable reach. WEA’s network of Local Advisory Panels

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currently aligns to areas of devolved funding in England and will continue to expand in response to ongoing devolution in England. Consideration will be given by Trustees to constituting Local Advisory Panels in nondevolved areas where it is in the interest of WEA to do so.

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Attendance at Board and Committee Meetings during 2023/24

Abbreviations:

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

PC People Committee People Committee
RC Remuneration Committee
SB Scotland Board
T/WEAC Joint meeting of the Trustees & WEA
Council
WEAC WEA Council

Trustee		 Board/ 2023/24 Attendance
Committee meetings
Jamey Johnson# Board 3/4 75%
T/WEAC 2/2 100%
F&CR 1/2 50%
Abda Khan# Board 3/4 75%
T/WEAC
 1/2 50%
EC 2/3 67%
Pat Kynaston Board 4/5 80%
T/WEAC 3/3 100%
F&CR 4/4 100%
WEAC (Chair) 4/4 100%
RC 0/1 0%
Geoff Layer Board
T/WEAC		 4/5
3/3		 80%
100%
EC
RC (Chair)
NomCo (Chair)		 4/5
1/1
3/3		 80%
100%
100%
Stephanie Board 4/4 100%
Mason# T/WEAC 2/2 100%
F&CR 2/2 100%
Karen McArdle+ Board 3/4 75%
T/WEAC 1/3 33%
PC 3/4 75%
SB (Chair) 3/4 75%
Lindsay Pearson Board
T/WEAC
A&R		 5/5
3/3
3/4		 100%
100%
75%
EC (Chair) 5/5 100%
WEAC
 3/4 75%
Peter Threadkell Board 5/5 100%
T/WEAC 3/3 100%
PC (Chair) 4/4 100%
EC 4/5 80%
RC
NomCo		 1/1
2/3		 100%
67%
Trustee Board/ 2023/24 Attendance
Committee meetings
John Board* (Chair) 5/5 100%
Widdowson
T/WEAC 3/3 100%
RC 1/1 100%
NomCo 2/3 67%
Cathy Armor# Board
T/WEAC		 5/5
2/3		 100%
67%
PC 2/2 100%
Robin Cook Board 5/5 100%
T/WEAC 2/3 67%
A&R 4/4 100%
SB 4/4 100%
WEAC 4/4 100%
Kevin Doyle Board 5/5 100%
T/WEAC
F&CR (Chair)		 3/3
4/4		 100%
100%
RC 1/1 100%
Marion Flett+ Board 1/1 100%
T/WEAC 1/1 100%
SB 1/1 100%
Malcolm Grady Board 4/5 80%
T/WEAC 2/3 67%
EC 4/5 80%
Christine Grant Board 5/5 100%
T/WEAC 2/3 67%
A&R (Chair) 4/4 100%
NomCo 3/3 100%
Tracey Irving# Board* 2/4 50%
T/WEAC 1/2 50%
SB 1/1 100%
+ Term ended before 31
July 2024.
# Term began after 1
August 2023.

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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 2023/24 was 88%, including one extraordinary meeting and excluding the three joint meetings between the Board of Trustees and WEA Council (2022/23: 85%). Including the joint meetings with WEA Council, overall Trustee attendance was 87% (2022/23: 76%). Average Trustee attendance at joint meetings of the Board of Trustees and WEA Council was 83% (2022/23: 80%).

Average attendance at all Board and Committee meetings in 2023/24 was 86% (2022/23: 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 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 12 December 2024.

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.

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 12 December 2024 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 noncompliance 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 12 December 2024 and signed on its behalf by:

John Widdowson, CBE Chair of Trustees

Simon Parkinson CEO/GS

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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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 2024 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

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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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken during our audit:

Matters on which we are required to report by exception

Considering 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 35], 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 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 non-compliance 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 noncompliance 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 19 December 2024

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Independent reporting accountant’s report on regularity 31 July 2024

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 15 November 2024 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 2023 to 31 July 2024 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 2023 to 31 July 2024 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 2023 to 31 July 2024 has not been applied to purposes intended by Parliament, and the financial transactions do not conform to the authorities that govern them.

Crowe U.K. LLP

19 December 2024

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Workers’ Educational Association trustees’ annual report and accounts 2023/24

Financial statements

Statement of financial activities for the year ended 31 July 2024

2023/24 2023/24 2023/24 2022/23 2022/23 2022/23
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
Notes £’000 £’000 £’000 £’000 £’000 £’000
Income from:
Donations and legacies 39 - 39 41 148 189
Charitable activities 2 12,553 18,338 30,891 13,119 12,425 25,544
Investment income 19 1,727 - 1,727 1,343 - 1,343
Other 45 3 48 37 362 399
Total income 14,364 18,341 32,705 14,540 12,935 27,475
Expenditure on:
Charitable activities 3 15,850 11,624 27,474 13,547 11,485 25,032
Other 18b 1,272 - 1,272 1,089 - 1,089
Total expenditure 17,122 11,624 28,746 14,636 11,485 26,121
Net income/(expenditure) (2,758) 6,717 3,959 (96) 1,450 1,354
Transfers between funds 13 3,234 (3,234) - 138 (138) -
Other recognised losses:
Adjustment for defined 18e (398) - (398) (448) - (448)
benefit pension scheme
Net movement in funds 78 3,483 3,561 (406) 1,312 906
Reconciliation of funds:
Total funds brought forward 12,954 1,946 14,900 13,360 634 13,994
Total funds carried forward 13,032 5,429 18,461 12,954 1,946 14,900

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.

43

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Balance sheet as at 31 July 2024
2023/24
2022/23
Notes
£’000
£’000
~~EC~~
Fixed assets
Tangible assets 8 7,003 4,070
Intangible assets 8 1,811 1,213
Total fixed assets 8,814 5,283
Current assets
Debtors 9 2,300 2,050
Investments 16 6,980 6,693
Cash at bank and in hand 16 6,656 5,934
Total current assets 15,936 14,677
Liabilities
Creditors:amounts falling due within one year 10 (6,034) (4,696)
Net current assets
9,902
9,981
Total assets less current liabilities
18,716
15,264
~~ee~~
Creditors:amounts falling due after one year 10 - (38)
Provisions for liabilities 22 (255) (326)
Total net assets 18,461 14,900
Funds of the Charity
Unrestricted funds 13 4,218 7,671
Designated funds 13 8,814 5,283
Total unrestricted funds 13 13,032 12,954
Restricted funds 13 5,429 1,946
Total charity funds 18,461 14,900

The financial statements on pages 45 to 75 were approved by the Board of Trustees and authorised for issue on 14 December 2024, and are signed on its behalf by:

John Widdowson, CBE Chair of Trustees

Simon Parkinson CEO/GS

Company Number: 2806910

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Workers’ Educational Association trustees’ annual report and accounts 2023/24

Cash flow statement for the year ended 31 July 2024

2023/24 2023/24 2022/23 2022/23
Notes £’000 £’000 £’000 £’000
Cash flows from operating activities:
Net cash provided by operating activities 14 4,829 3,164
Cash flows from investing activities:
Interest received 19 418 156
Purchase of tangible and intangible assets 8 (4,257) (1,404)
Net cash used in investing activities (3,839) (1,248)
Cash flows from financing activities:
Sale of Fixed Assets 19 445
Net cash provided by / (used in) financing activities 19 445
Change in cash and cash equivalents in the 1,009 2,361
reporting period
Cash and cash equivalents at the beginning 12,627 10,266
of the reporting period
Cash and cash equivalents at the end
of the reporting period 13,636
2023/24 2022/23
Notes to the cash flow statement £’000 £’000
Analysis of cash and cash equivalents
Investments 6,980 6,693
Bank and cash 6,656 5,934
Total cash and cash equivalents 13,636 12,627

45

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

1. Accounting policies

Basis of preparation

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, namely losing income through poor contract performance or a poor devolution outcomes in certain areas. The WEA has prepared a number of financial scenarios to manage this risk and they also dictate the target minimum reserves level as set out in the reserves policy.

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

The Trustees are confident the organisation has adequate resources to operate for the foreseeable future as a going concern and has prepared its financial statements on this basis.

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 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 no 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 entitlement 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.

46

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

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 over the life of the Grant funded building improvements project over the life of the Grant funded equipment 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 2024 retirement benefits to employees are provided by the People's Pension, the Teachers’ Pension (TP), the Scottish Public 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.

47

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

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 liabilities 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-term 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.

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.

48

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

2. Incoming resources from charitable activities

Unrestricted Restricted Total Total
2023/24 2023/24 2023/24 2022/23
Educational provision £’000 £’000 £’000 £’000
Fees and contracts 640 3,509 4,149 5,544
Education and Skills Funding Agency (ESFA) grant 11,902 - 11,902 12,905
Other grants receivable 11 14,825 14,836 7,084
Other income from activities - 4 4 11
Total incoming resources from charitable activities 12,553 18,338 30,891 25,544

2a. Analysis of income from charitable activities

Total Total
2023/24 2022/23
£’000 £’000
ESFA unrestricted grants
ESFA contract 11,502 11,615
Other ESFA grants and contracts 400 304
Total ESFA unrestricted grants 11,902 11,919
Total ESFA restricted grants - 986
Total ESFA contracts & grants 11,902 12,905
Other unrestricted grants
Total other unrestricted grants 11 17
Total other restricted grants 14,825 7,067
Total other grants 14,836 7,084

3. Resources expended on charitable activities

Unrestricted Restricted Total Total
2023/24 2023/24 2023/24 2022/23
£’000 £’000 £’000 £’000
Educational activity costs
Tutor costs - staff 2,627 1,989 4,616 4,276
Tutor costs - travel & subsistence 153 102 255 184
Regional costs - staff 4,425 2,816 7,241 6,430
Regional costs - other 1,095 526 1,621 1,332
Grants and subcontractor payments 1 3,601 3,602 3,366
Total educational activity costs 8,301 9,034 17,335 15,588
Governance costs (note 4) 351 4 355 353
Support costs (note 5) 7,198 2,586 9,784 9,091
Total resources expended on charitable activities 15,850 11,624 27,474 25,032

49

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

4. Governance costs

Total Total
2023/24 2022/23
£’000 £’000
External audit fees
Crowe U.K. LLP (note 7) 59 56
Other Assurance fees
Crowe U.K. LLP (note 7) 4 20
Internal Audit Fees 20 12
Legal and professional fees 80 85
Trustees meetings and other costs (note 17) 10 11
Support costs - staff 182 169
Total governance costs 355 353

5. Support costs

Total Total
2023/24 2022/23
Educational provision £’000 £’000
Support costs - staff 5,743 5,273
Support costs - other 1,948 1,806
Facilities management 795 661
IT & communications 1,298 1,351
Total support costs 9,784 9,091

50

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

6. Staff costs

Total Total
2023/24 2022/23
£’000 £’000
Wages and salaries 13,914 13,433
Social security costs 1,283 1,153
Pension costs 1,412 1,364
Redundancy costs 1,174 198
Total staff costs 17,783 16,148

The above figure does not include agency staff employed by the Association at a cost of £305,557 (2022/23: £123,084) At the year-end £1,007,442 (2022/23: £34,469) of the redundancy costs remained unpaid.

The average number of employees during the year was as follows: 2023/24 2022/23
Staff 387 353
Tutors 349 506
Total average number of employees 736 859
Number of employees earning £60,000 per annum and above are as follows:
£60,001 - £70,000 13 5
£70,001 - £80,000 7 5
£80,001 - £90,000 5 -
£90,001 - £100,000 4 -
£110,001 - £120,000 1 -
£140,000 - £150,000 1 1
31 11

One member of staff (2022/23: One member) received redundancy payments in 2023/24 which took their earnings into the above brackets. Pension benefits are accruing for the other 10 (2022/23: 10) higher paid employees. Total employer pension contributions of £127,904 (2022/23: £63,884) have been made in relation to higher paid employees.

The key management personnel of the Charity comprise the Board of Trustees (13) and the Leadership Team 8 (2022/23:9). The total employee remuneration and benefits, employer NI and pension contributions of the key management personnel were £981,675 (2022/23: £852,443).

7. Analysis of charitable expenditure

Charitable expenditure includes: 2023/24 2022/23
£’000 £’000
External auditors’ remuneration 59 56
Other assurance services performed by external auditors* 4 20
Depreciation 725 526
Profit/(loss) on disposal of tangible assets - 359
Operating lease charges 186 182

51

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

8. Fixed asset schedule

Assets in the
Land and Education Other course of Total
Buildings Equipment Equipment construction 2023/24
£’000 £’000 £’000 £’000 £’000
Tangible fixed assets
Cost
At 1 August 2023 5,991 458 1,456 37 7,942
Additions - 1 51 3,232 3,284
Transfers - - - - -
Disposals - (345) (1,246) - (1,591)
At 31 July 2024 5,991 114 261 3,269 9,635
Depreciation
At 1 August 2023 2,147 425 1,300 - 3,872
Charge for the year 238 29 82 - 349
Disposals - (345) (1,244) - (1,589)
At 31 July 2024 2,385 109 138 - 2,632
Net book value
At 31 July 2024 3,606 5 123 3,269
7,003
At 1 August 2023 3,844 33 156 37 4,070

There is a charge granted over the freehold property 4 Luke Street, London, EC2A 4XW in favour of The Pensions Trust. At 31 July 2024 the charge is capped at £2,500,000.

Assets in the Course Total
Software of Construction 2022/24
£’000 £’000 £’000
Intangible fixed assets
Cost
At 1 August 2023 1,125 181 1,306
Additions - 973 973
Transfers - - -
At 31 July 2024 1,125 1,154 2,279
Depreciation
As 1 August 2023 93 - 93
Charge for the year 375 - 375
At 31 July 2024 468 - 468
Net book value
At 31 July 2024 657 1,154 1,811
At 1 August 2023 1,032 181 1,213

52

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

9. Debtors: amounts falling due within one year

2023/24 2022/23
£’000 £’000
Trade debtors 254 348
Other debtors 19 20
Prepayments 379 246
Accrued Income 1,648 1,436
Total 2,300 2,050

10. Creditors: amounts falling due within one year

Amounts falling due within one year 2023/24
£’000		 2022/23
£’000
Trade creditors 868 733
Accruals 2,143 983
Social security & other taxes 514 477
Deferred income 2,509 2,503
Total 6,034 4,696

53

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

10a. Deferred income

2023/24 2022/23
£’000 £’000
Opening balance 2,503 251
Amounts released (2,503) (250)
Amounts deferred 2,509 2,502
Closing balance 2,509 2,503

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.

11. Financial commitments - leases

As at 31 July 2024, the charity has annual commitments under non-cancellable leases as follows:

Land and building Total Total
leasehold 2023/24 2022/23
Expiry date: £’000 £’000 £’000
Within one year 181 181 115
One to five years 473 473 498
Over five years 306 306 405
Total financial commitments - leases 960 960 1,018

12. Analysis of net assets by fund

Unrestricted
funds
Restricted
funds
Total
Funds
Unrestricted
funds		 Restricted
Total
funds
funds
2023/24
2023/24
2023/24
2022/23		 2022/23
2022/23
Net assets
£’000
£’000
£’000
£’000		 £’000
£’000
Fixed Assets
8,814
-
8,814
5,283
Net current assets
4,473
5,428
9,901
7,997
Long term liabilities
(255)
-
(255)
(326)		 -
5,283
1,946
9,943
-
(326)
Net assets
13,032
5,428
18,460
12,954		 1,946
14,900

54

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13. Statement of funds

At 1 August Pension At 31 July
2023 Income Expenditure Transfers adjustment 2024
£’000 £’000 £’000 £’000 £’000 £’000
General funds 5,871 8,782 (12,130) 2 - 2,525
Branch funds 421 15 (121) (114) - 201
Regional branch reserve fund 1,379 - - 113 - 1,492
7,671 8,797 (12,251) 1 - 4,218
Designated funds 5,283 4,258 (3,960) 3,233 - 8,814
Pension deficit - 1,309 (911) - (398) -
Total unrestricted funds 12,954 14,364 (17,122) 3,234 (398) 13,032
Restricted funds:
Revenue 639 11,384 (11,624) - - 399
Capital 1,307 6,957 - (3,234) - 5,030
Total restricted funds 1,946 18,341 (11,624) (3,234) - 5,429
Total funds 14,900 32,705 (28,746) - (398) 18,461

Designated funds represent 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. 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 £3,234,000 from restricted funds to the designated fund reflects the capital expenditure from capital grants and restricted capital funds.

Prior year statement of funds

At 1
August
2022
£’000		 Income
Expenditure
Transfers
Pension
adjustment
At 31 July
2023
£’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 deficit
-
1,187
(739)
-
(448)
-
Total unrestricted funds
13,360
14,540
(14,636)
138
(448)
12,954
Revenue
514
11,599
(11,474)
-
-
639
Fixed asset fund
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

55

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13a. Statement of funds (continued)

Lottery funded projects

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2023 income income expenditure Fund 2024
£ £ £ £ £ £
South East
BBO BLF Routes 7,808 - - - - 7,808
North West
Big Lottery Fund and ESF Building Better
Opportunities Grant - Cumbria,Carlisle & Eden 37,534 - - (37,234) - 300
UKSPF Liverpool - 62,508 21,776 (84,284) - -
Southern
Big Lottery Fund and ESF Building Better
Opportunities Grant-Aspire - (4,399) - - - - (4,399)
Family Learning Surrey
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 (1,155) - - - - (1,155)
Scotland
BigLotteryFund - Reach Out Project 37,415 - - (37,415) - -
Total lottery fund projects 79,557 62,508 21,776 (158,933) - 4,908
Other projects
ESF (note 13b)		 33,414 39,206 -
(59,438)		 - 13,182
Other (note 13c) 526,428 11,990,028 (729,136) (11,405,981) - 381,339
Total restricted revenue funds 639,399 12,091,742 (707,360) (11,624,352) - 399,429

56

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

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
2023 income income expenditure Fund 2024
£ £ £ £ £ £
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 20,232 39,206 - (59,438) - -
Aberdeen University - LEADER -
Elphinstone Home Project 8,620 - - - - 8,620
Total European restricted funds (note 13a) 33,414 39,206 - (59,438) - 13,182

57

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13c. Statement of funds (continued)

Other restricted funds

At Transfer At
1 August Received Accrued/ Funded from 31 July
2023 income deferred expenditure General 2024
£ £ 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 211 - (18,588) 18,377 - -
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 (1,574) 33,923 - (27,053) - 5,296
West Midlands Combined Authority - 794,976 - (794,976) - -
RecoveryCollege 51 - 600 600 - - 651 - 651
Dolphin Centre 1,528 - - - - 1,528
LCC Multiply - 18,000 - (18,000) - -
NCC DigSkills - 9,250 - (9,250) - -
BBO Vista – Leic BLF - 2 - (2) - -
WMCA Multiply - 6,187 - -(25,635) - -(19,448)
CommunityFirst 600 - - -(600) - - - -
South East
Lester John Desmond Legacy 1,352 - - - - 1,352
East of England Local Government
Association(EELGA) (1,159) 10,404 - (9,245) - -
MultiplyNorfolk 3,111 46,946 - (24,446) - 25,611
CPCA 2022-23 - 173,227 - (173,227) - -
West Sussex Multiply 12,189 35,000 - (32,972) - 14,217
MultiplyBrighton and Hove (31) 4,667 - (4,636) - -
Joan Taylor Legacy 812 - - - - 812
MultiplyEssex - 17,920 - (24,630) (6,710)
Inspire Sussex - 3,644 - - - 3,644 - 3,644
London
StanleyJones - Ilford Legacy 13,347 - - - - 13,347
Margaret Cottier Legacy 3,753 - - - - 3,753
GLA - National Skills Fund - 72,107 (31,010) (41,097) - -
GLA - Adult Education Budget - 1,579,254 (19,350) (1,559,904) - -
GLA - Good Work for All - 52,781 - (52,781) - -
GLA - Multiply 17,311 114,890 (8,554) (123,647) - -
NDY Restricted - Branch 13,424 - - (13,424) - -
MJT Restricted - Branch 8,534 - - (6,576) - 1,958
Fred Adler Legacy 38,957 - - - - 38,957
Balance carried forward 143,295 2,973,178 (76,902) (2,923,724) - 115,847 - 115,847

58

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13c. Statement of funds (continued)

Other restricted funds (continued)

At At Transfer At
1 August Received Accrued/ Funded from from
31 July
2023 income deferred expenditure General General
2024
£ £ income £ £ Fund £ £
Balance brought forward 143,295 2,973,178 (76,902) (2,923,724) - 115,847
North East
100 Club 1,836 - - - - 1,836
North of Tyne MCA - 347,647 15,801 (363,448) - -
Routes of Social Change - 31,583 (12,544) (19,039) - - - -
Durham Multiply - 29,750 (2,109) (27,641) - - - -
North West
RSC - AnyOld lons 10,908 - - - - 10,908
RAS - Look Upto the Skies 6,280 - - - - 6,280
Greater Manchester Combined Authority - 704,855 128,416 (833,271) - -
GMCA L3 Local - 17,070 2,086 (19,156) - -
GMCA L3 National - 10,069 16,080 (26,149) - -
GMCA CommunityGrants - 2,545,204 (318,451) (2,226,753)
Liverpool CityRegion Combined AuthorityLot 1 - 629,291 66,549 (695,840) - -
Liverpool CityRegion Combined AuthorityLot 2 - 3,112 - (3,112) - -
LCRCA L3 National - 33,506 (2,320) (31,186) - -
ESIF - CSI - 7,500 (7,500) - -
Trafford - BNO - 940 - (940) - -
Liverpool - Multiply - 836,498 (243,906) (592,592) - -
Lancashire - Multiply - 524,633 6,670 (531,303) - -
South West
West of England Combined Authority- AEB - 526,319 - (526,319) - -
West of England Combined Authority- Multiply 1,782 108,600 8,276 (118,658) - -
West of England Combined Authority – Multiply – 4,920 - (4,920) - - - -
Bristol
West of England Combined Authority – Multiply - 2,913 - (2,913) - - - -
Somerset
Pollinator Fund - 5,134 - (5,134) - -
Southampton CityCouncil - Multiply 11,699 37,300 14,400 (63,399) - -
Portsmouth CityCouncil - Multiply (64) 132,224 (36,888) (95,272) - -
K Smith Legacy 20,875 - - - - 20,875
Southampton City Council - Innovation Fund (76) 10,000 - (9,924) - -
Balance carried forward 196,535 9,522,246 196,535 9,522,246 (434,842) (434,842)
(9,128,193)		 - 155,746 - 155,746

59

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2023 income income expenditure Fund 2024
£ £ £ £ £ £
Balance brought forward 196,535 9,522,246
 (434,842) (9,128,193) - 155,746
Yorkshire & Humber
Mike Haywood Fund 869 - - - - 869
Yorkshire Adult Schools Union 8,300 - - - - 8,300
Leeds University 3,008 - - - - 3,008
NHS Confidence to study 7,911 - - - - 7,911
Heritage Fund - Women on the Land 2,149 9,750 - (11,899) - -
South Yorks MCA - 335,821 39,819 (375,640) - -
West Yorks MCA - 1,117,680 (344,756) (772,924) - -
Digital Inclusion (68) - - 68 - -
WAMT - Green Growth 129,165 - - (37,543) - 91,622
MultiplyYork & North Yorkshire (308) - - 308 - -
MultiplyRotherham - 2,139 - (2,139) - -
UKSPF RISE (28) 5,519 - (5,491) - -
Families Get Active 2,614 - - (2,614) - -
Balance carried forward 350,147 10,993,155
 (739,779) (10,336,067) - 267,456

60

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2023 income income expenditure Fund 2024
£ £ £ £ £ £
Balance brought forward 350,147 10,993,155 (739,779) (10,336,067) - 267,456
Scotland
Scottish Government - Health and Social Care -
Self Directed Support Project 2018-2020 4,341 - - (3,597) - 744
Edinburgh College - Edinburgh CBAL
 3,125 - - (1,435) - 1,690
Aberdeenshire Council - Adult Education Programme 12,585 - - - - 12,585
Aberdeen CityCouncil - ParentingProject 4,610 - - (4,610) - -
Reach Out Project - General 7,456 - - (7,456) - -
Fife Council - TeachingGrant 18,534 16,367 - (29,467) - 5,434
Highland Council - Syrian Re-settlement Project 10,123 27,290 - (32,352) - 5,061
North East Scotland Colleges - Reach Out 22/24 63,820 1,000 - (64,820) - -
Garden Project 266 - - (266) - -
Adult Learning & Empowering
Communities Fund(ALEC) - 355,249 (50,749) (304,500) - -
Fife Council - Revenue Grant -
36,430		 (5,292) (31,138) - -
North East College - Aberdeenshire ESOL - 25,851 - (25,851) - -
Aberdeenshire Council - Resettlement Programme - 19,950 - (9,950) - 10,000
Aberdeenshire Council - Fairer Aberdeenshire
Fund - Reminiscence Project 388 3,400 - (3,788) - -
Aberdeen Council of VoluntaryOrganisations(ACVO) 8,484 - - (6,704) - 1,780
Highlife Highland - Open Programme 192 10,000 - (7,332) - 2,860
Highland Multiply 6,098 52,133 6,466 (64,697) - -
Edinburgh College - ESOL Programme - 9,600 - (9,600) - -
HongKongBNO ESOL Project 10,155 - - (10,155) - -
Glasgow Clyde College - ESOL Strategy - 12,250 - (12,250) - -
Borders Multiply - 2,310 (2,310) - -
-Fife Multiply - 172,308 (136,690) - 35,618
Aberdeenshire Council – Multiply - - 31,843 (31,843) - -
Highland Council – EmployabilityPartnership - 7,811 (7,352) - 459
Edinburgh Multiply - 4,620 (720) (3,900) - -
Glasgow Multiply - 151,028 (125,247) - 25,781
Glasgow MultiplyPhase 2 - 28,615 (28,615) - -
Scottish Government - Directorate for Mental Health
& Social Care Support 26,104
60,661		 29,095 (103,989) - 11,871
Balance carried forward 526,428 11,990,028
 (729,136) (11,405,981) - 381,339

61

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

13c. Statement of funds (continued)

Other restricted funds (continued)

Transfer
At 1 Accrued/ from/(to) At
August Received Deferred Funded General 31 July
2023 income income expenditure Fund 2024
£ £ £ £ £ £
Capital Grants
ESFA Capital Grant-EnergyEfficiencies 272,442 - - - (84,075) 188,367
ESFA Capital Grant- FE Reclassification 677,115 - - - (135,017) 542,098
ESFA Capital Grant - Transformation - 8,645,560 (1,688,679) (2,846,866) 4,110,015
Restricted Capital Proceeds 349,557 - - - (168,033) 181,524
Liverpool CityRegion 7,536 - - - - 7,536
Total restricted capital funds (note 13) 1,306,650 8,645,560 (1,688,679) - 5,029,540
(3,233,991)

62

Workers’ Educational Association trustees’ annual report and accounts 2023/24

Notes to the financial statements for the year ended 31 July 2024

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
2022 income income expenditure Fund 2023
£ £ £ £ £ £
South East
Big Lottery Fund and ESF Building Better
Opportunities Grant - Papworth
Community Connections 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 Money Sorted 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

63

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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
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

64

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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
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 Manaagement - 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 - 143,295

65

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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 At Transfer At
1 August Received Accrued/ Funded from from
31 July
2022 income deferred expenditure General 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 City Council - Innovation Fund - - - (76) - (76)
Balance carried forward 180,036 7,640,259 180,036 7,640,259 221,097 (7,844,857) - 196,535 - 196,535

66

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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

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 Confidence to study 7,911 - - - - 7,911
Heritage Fund - Women on the Land 25,853 39,000 - (62,704) - 2,149
Sheffield 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)
Sheffield 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

67

Workers’ Educational Association trustees’ annual report and accounts 2023/24

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

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 Office - 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 6,249
(67,501)		 (67,501)
-		 26,104
Total other restricted funds (note 13) 398,481 10,129,773 329,058 (10,330,884) 329,058 (10,330,884) - 526,428

68

Workers’ Educational Association trustees’ annual report and accounts

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

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

69

Workers’ Educational Association trustees’ annual report and accounts

Notes to the financial statements for the year ended 31 July 2024

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

2023/24 2022/23
£’000 £’000
Net incoming resources 3,958 1,354
(Gain)/loss on disposal of fixed assets (17) (359)
Depreciation 725 526
Other finance charges 1,272 1,089
Decrease/(Increase) in debtors (250) 21
Increase in creditors and provisions 1,229 2,226
Interest received (418) (156)
Other finance income (1,309) (1,187)
Non cash movements in respect of FRS 102 s.28 (361) (350)
Net cash inflow from operating activities 4,829 3,164

15. Return on investments and servicing of finance

2023/24 2022/23
£’000 £’000
Income from investments and interest receivable 418 156
Net cash inflow for return on investments and servicing of finance 418 156

16. Analysis of change in net funds

At At
1 August 2023 Cash flow 31 July 2024
Net cash £’000 £’000 £’000
Short term deposits 6,693 287 6,980
Bank and cash 5,934 732 6,656
Total net funds 12,627 1,009 13,636

17. Trustees’ expenses and remuneration

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

2023/24 2022/23
£’000 £’000
Trustee meeting 8 3
Trustee travel 3 1
Trustee Recruitment - 7
Total net funds 11 11

The number of trustees reimbursed out of pocket travel and subsistence expenses was 3 (2022/23:3).

70

Workers’ Educational Association trustees’ annual report and accounts

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

18. Pension schemes

At 31 July 2021 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 £1,157,657 (2022/23 £1,179,451) and at the year-end £114,414 (2022/23 £115,576) 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 £84,406 (2022/23: £68,061) and at the year-end £6,347 (2022/23: £6,589) was accrued in respect of contributions to this scheme.

The employer SPPA contribution rate is 26%. This is a single level contribution and not tiered the same way as employee contributions which attract rates of between 7.35% and 12.14%.

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%.

71

Workers’ Educational Association trustees’ annual report and accounts

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 was updated to 31 July 2020 and updated again to September 2023 by a qualified actuary independent of the scheme's sponsoring employer.

This scheme was closed to new contributions at 31 August 2019.

This provisional triannual actuarial valuation for September 2023 shows a deficit of £605,000. The WEA has agreed with the Trustee that the payment of £403k per year will cease at the end of November 2024 as the deficit will be eliminated. The scheme expenses are paid at £8,833 per month.

The group is aware of the Virgin Media v NTL Pension Trustees II Limited Court of Appeal judgement which may give rise to adjustments to the WEA scheme. At present the legal process is incomplete and therefore we are unable to quantify any potential liabilities.

Last year The Pensions Trust (TPT) advised us that due to uncertainty about the benefits that have been paid to members of the WEA pension scheme, the trustees have received legal advice that it should ask the court to provide clarity. If the court case goes against TPT there will be a potential additional liability at an estimated [10%] of total liabilities. Therefore, in the case of WEA this is estimated at circa £4.4m.

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.

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Workers’ Educational Association trustees’ annual report and accounts

Notes to the financial statements for the year ended 31 July 2024

18. Pension schemes (continued)

2023/24 2022/23
Discount rate 4.90% 5.25%
Inflation (RPI) 3.14% 3.17%
Inflation (CPI) 2.72% 2.85%
Deferred Revaluation: RPI max 5% 3.14% 3.17%
Deferred Revaluation: RPI max 2.5% 2.50% 2.50%
Salary Increases 2.00% 4% in year, 4% thereafter
Allowance for pension in payment increases of CPI, max 5% p.a. 2.68% 2.78%
Allowance for pension in payment increases of CPI, max 3% p.a. 2.18% 2.24%
Allowance for pension in payment increases of CPI, max 2.5% p.a. 1.94% 1.99%
using notional commutation factors 75% of maximum
The mortality assumptions adopted imply the following life expectancies (in years):
Male retiring at age 65 in 2024 21.4 21.3
Female retiring at age 65 in 2024 23.7 23.8
Male retiring at age 65 in 2044 22.9 22.9
Female retiring at age 65 in 2044 25.1 23.4
a) Fair value
2023/24 2022/23
£’000 £’000
Present value of scheme liabilities (25,548) (24,844)
Fair value of scheme assets 25,718 25,352
Effect of asset ceiling (170) (508)
Surplus - -
Amounts in the balance sheet
Liabilities - -
Assets - -
Net surplus to be recognised - -
b) Change in liabilities during the period
2023/24 2022/23
£’000 £’000
Opening scheme liabilities 24,844 31,964
Current service cost - -
Interest cost 1,272 1,089
Contributions by employees - -
Loss due to benefit changes - -
Actuarial loss 661 (6,836)
Benefits paid (1,229) (1,373)
Closing liabilities 25,548 24,844

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Workers’ Educational Association trustees’ annual report and accounts

Notes to the financial statements for the year ended 31 July 2024

18. Pension schemes (continued)

c) Change in assets during the period

2023/24 2022/23
£’000 £’000
Opening fair value of the scheme assets 25,352 34,606
Interest income 1,309 1,187
Expenses (144) (144)
Return on assets excluding interest income (75) (9,418)
Contributions by employer 505 494
Contributions by employees - -
Benefits paid (1,229) (1,373)
Closing assets 25,718 25,352
d) Analysis of amount charged to the income statement
2023/24 2022/23
£’000 £’000
Current service cost - -
Expenses 144 144
Benefit changes - -
Net interest cost - -
Total amount recognised in the income statement 144 144
e) Statement of other comprehensive income
2023/24 2022/23
£’000 £’000
Return on assets excluding interest income (75) (9,418)
Experience (losses) on liabilities 8 (1,137)
Gain for change of assumptions (669) 7,973
Effect of change in non-recoverable surplus 375 2,232
Net cumulative actuarial loss (361) (350)
The loss for change in assumptions is further analysed below:
Gain/(Loss) from change of demographic assumptions 109 1,013
Gain from change of financial assumptions (778) 6,960
(669) 7,973
Amount recognised in the SOFA
Amount recognised in the SOFA to bring the pension surplus to nil (398) (448)

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Workers’ Educational Association trustees’ annual report and accounts

Notes to the financial statements for the year ended 31 July 2024

18. Pension schemes (continued)

f) Fair value of assets

Value at Value at
31 July 2024 31 July 2023
£’000 Proportion £’000 Proportion
Equity type assets 2,286 8.9% 1,137 4.5%
Bonds 12,900 50.2% 12,880 50.8%
Property 1,411 5.5% 2,380 9.4%
Other 9,121 35.5% 8,955 35.3%
Total value of assets 25,718 100.0% 25,352 100.0%

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

2023/24 2022/23 2021/22 2020/21 2019/20
£’000 £’000 £’000 £’000 £’000
Present value of scheme liabilities (25,548) (24,844) (31,964) (39,935) (40,484)
Scheme Assets 25,548 24,844 31,964 39,935 40,484
Surplus (deficit) - - - - -
* adjusted for asset ceiling £170,000 (2022/23: £508,000, 2021/22: £2,642,000, 2020/21: £ 2,798,000, 2019/20: £524,000) to
bring surplus to zero.
Experience adjustments on scheme liabilities 8 (1,137) (2,140) 98 199
Percentage of the present value of scheme liabilities 0.0% 4.6% 6.7% -0.2% -0.5%
Experience adjustments on scheme assets (75) (9,418) (8,080) 2,046 2,869
Percentage of the fair value of scheme assets -0.3% -37.9% -25.3% -4.5% 7.1%

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 assets 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.

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Workers’ Educational Association trustees’ annual report and accounts

Notes to the financial statements for the year ended 31 July 2024

19. Investment income

2023/24 2022/23
£’000 £’000
Interest on cash deposits 418 156
Interest on pension scheme assets 1,309 1,187
1,727 1,343

20. Investments in subsidiaries

At 31st July 2024 the Association owned the entire issued share capital of 1 ordinary shares (2022/23: 1 share) of WEA Trading Ltd. At 31st July 2024 the aggregate of share capital and reserves of WEA Enterprises Limited was £1. (2022/23: £1)

The company has not traded during the period and has nil assets at 2023/24 (2022/23: 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 £0 (2022/23: £54,450).

22. Provisions

2023/24 2022/23
£’000 £’000
Leased property £’000 £’000
dilapidation
At 1 August 326 422
Provisions charged - -
Provisions released (71) (96)
At 31 July 255 326

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.

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Workers’ Educational Association trustees’ annual report and accounts

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