OpenCharities

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2022-07-31-accounts

Charity registration number 1113612

Company registration number 05462874 (England and Wales)

OPEN AWARDS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

OPEN AWARDS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dr G B Laing Mr A J Bevin Ms G A Mason Mr D A E C Tilley Mrs N J Mailey - Chair Mr P H Taaffe Mrs K Grant Mr K Gordon Mr N Small Dr A Stott Mr B J Jordan (Appointed 23 June 2022) Dr H Van Zalinge (Appointed 23 June 2022) Secretary Mrs A Till Chief Executive Ms H Akehurst Charity number 1113612 Company number 05462874 Registered office 17 De Havilland Drive Estuary Commerce Park Speke Liverpool L24 8RN Auditor DSG Castle Chambers 43 Castle Street Liverpool L2 9TL Bankers National Westminster Bank Solicitors Brabners Chaffe Street Investment advisors Quilter Cheviot Previously Tilney BestInvest

OPEN AWARDS

CONTENTS

Page
Trustees' report 1 - 8
Statement of trustees' responsibilities 9
Independent auditor's report 10 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 30

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 JULY 2022

The trustees present their annual report and financial statements for the year ended 31 July 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Objects of the Charity are exclusively charitable and are to advance the education of the public and in particular by:

Open Awards amended its Memorandum and Articles of Association to include ‘employment’ at the AGM in June 2022. Open Awards seeks to do this by working with local and national government; Colleges, schools, academies, employers, private training providers, End Point Assessment Organisations and voluntary sector organisations to provide qualifications, acknowledged training courses and End Point Assessment, all of which have the potential to lead to enhanced employment opportunities.

Success for Open Awards is determined by the number of organisations we work with, the number of apprentices we ensure achieve meaningful outcomes, the number of learners and the qualifications we register. In addition, we capture learner information on the difference our qualifications and where applicable, bursaries make to their learner journey. This is measured monthly and high level information is contained within this report.

Our significant activities within the period are detailed within the Activities and Achievements section.

Mission Statement

Our mission is to ‘Change Lives Through Learning’.

Our Values

Excellence: To exceed standards in all we do, inspire excellence in our staff, centres and learners, and deliver a personalised customer service that surpasses expectations.

Respect: To foster a culture of respect and inclusiveness, being receptive to each other and customers, and acting with integrity.

Innovation: To listen, learn, discover and develop; to respond effectively to and invest in our staff, centres and learners.

Aspiration: We strive to be visionary and influential.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Public Benefit

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Open Awards aims and objectives; and in considering future activities.

Our Bursary fund allows us to tackle barriers to achievement within learning and this year we were delighted to fund three projects. Two of these were to specifically address mental health issues and the third was for offenders within a prison setting to improve their wellbeing.

In particular, we seek to promote knowledge and raise standards in education, employment, learning and skills through our accreditation of qualifications and courses. Additionally, our work on the reformed Functional Skills and End Point Assessment has allowed us to set standards against formal examinations.

All our Activities and achievements are measured against our Charitable Objects and Values to ensure that we are true to our mission and that we accurately measure our success and demonstrate our public benefit. Trustees keep up to date with guidance issued by the Charity Commission, particularly on public benefit and conducted a full review against the revised Charity Governance Code in June 2021. A review of our public benefit took place in June 2022.

Open Awards does not have regular volunteers and this year has continued our previous offer of University Intern placements. We did continue to support National Careers Week and staff continue in trustee and governorship roles within the wider community.

Achievements and performance

This academic year has been challenging as the education and skills sectors saw further Covid related disruption to working, sweeping changes to the education sector and a growth in mental health concerns for all ages as the UK adapted to a post pandemic landscape or ‘living with Covid’.

Open Awards registered 35,948 learners within the year across various areas of provision. 12,897 full qualifications were achieved during this period. It should be noted that Extraordinary Awarding powers were again used in year due to Covid although in the main assessment and examinations moved back to 2019 structures. 57 apprentices underwent their End Point Assessment with us.

Improvements to how we measure customer satisfaction continued within the year and continued this through increased use of online webinars and support. Meetings with providers by the Chief Executive and members of the Senior Management Team continued and it is pleasing to note that customer satisfaction rates with our training continued as the training programme continued to evolve. Open Awards continued to provide additional support and webinars throughout the year as well as additional training and resources for online learning, assessment and invigilation.

Open Awards delivered External Quality Assurance (EQA) on behalf of The Institute for Apprenticeships and Technical Education (IFATE) to 266 External Provider Assessment Organisations (EPAO) across 173 Standards within the year, as formal EQA reports. Additionally, we continued to provide ad-hoc support on assessment plan queries and, emergency support to ensure that apprentices could finish their End Point Assessments during the pandemic. The transfer of this contract to Ofqual was completed on 3rd June 2022.

The Bursary scheme to support Open Awards learners to access qualifications and address additional barriers continued, with over £112,657 being awarded since inception. The scheme was repurposed in year to provide support for mental health activities for Open Awards learners who were impacted by the Covid pandemic.

Functional Skills performance grew 110% over this period as Open Awards continued to provide online assessment and remote invigilation services with training for organisations using their own invigilators. Open Awards successfully re-tendered to provide Functional Skills for Health Education England.

Open Awards engagement with policy decisions at a government and at a regulatory level continued within year across Department for Education departments as Open Awards continued to represent our providers, learners and apprentices to ensure their voices are heard.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Open Awards has 553 recognised Providers, however not all of these register learners each period and we work closely with all Providers to understand their business needs and funding positions. This presented a particular challenge during the year due to pandemic recovery against a backdrop of increasing needs. Open Awards recognised 67 new Centres within the period and activity continued strongest with our newer qualifications, our Skills for Learning and Employment suite and Functional Skills.

Learner registrations were 35,948, an increase of 33% from the previous financial year and mainly due to our diverse Functional Skills offer. Changes in funding for Further Education Colleges and the voluntary sector continued to have an impact and we await the scale of policy changes during the next financial year.

Qualification development and Validity processes continue to be reviewed to ensure they provide real employment prospects and meet learner demand. Particular emphasis was given to our Quality Assurance of Access of HE provision and this was supported by QAA within the year. This is supported by our ongoing investment in our labour market intelligence system and supported by the Business Development Committee.

Open Awards continued to provide much of the External Quality Assurance for Apprenticeship Standards on behalf of The Institute for Apprenticeships and Technical Education longer than expected but worked closely with the Institute and Ofqual to ensure transition was completed on 3 June 2022.

We continue to have a national presence attending a variety of online events and virtual meetings to ensure we remain in touch with our providers needs and also are aware of current and future developments coming from regulators, funding agencies and national policy. Our work for IFATE was publicly recognised by IFATE, which was pleasing to note.

We regularly receive and publish news stories about the positive effect our qualifications have, especially with those hard to reach learners or those who have not had a good experience of learning. Our centres find that Open Awards qualifications allow for the flexibility of learning needed to help many disadvantaged learners to succeed.

One such student was Majah Glodel Collantes who completed an Access to Education course at Southport College before progressing to Edge Hill University to study a Bachelor of Arts in Primary Education with Mathematics.

"Before the Access programme, I was a full-time homemaker, a wife and mother to two young children. I put my flourishing career on hold to focus on my family. For the past 8 years I had been pondering on what to do once my children had grown up and what I would be in 5 or 10-years’ time.

My husband encouraged me to return to study. At first, I was hesitant as I felt insecure about my age and returning to learning. I was also unsure if I had the qualifications to even access any educational programmes in the UK as I was an immigrant. I had a degree, which I earned abroad, yet I was unsure if it was comparable or acceptable here.

The admissions team were very welcoming and encouraging. They advised me to enrol on the Pre-Access programme (GCSE) to gain the relevant qualification to progress onto an Access course and then to university. They were very accommodating and inspiring.The Access programme was challenging, not because it was hard but because of time constrictions (a full Level 3 programme in nine months). It was fast-paced yet achievable. You are guided and supported extremely well, taught how to achieve the best possible grades and achieve your academic potential.

Significantly, the Education tutors and Pastoral Leader went beyond in extending help beyond their call of duty. They have been instrumental to my success in the programme. Without their guidance and motivation, pursuing this programme would not have been possible.

Moreover, the extra support like the Child Care Funding was very helpful in ensuring that I got the most out of my studies without worrying about school runs and extra expenses. This financial assistance was very advantageous as it helped me focus on my studies with fewer distractions. Additionally, the proofreading service was very beneficial especially as English was not my first language. It helped improve my academic writing and increased my quality, communication and presentation grades.

My Access journey has been very inspiring and rewarding. This journey has fostered my positive attitude to learning: adaptability, high expectations and resilience; improved my self-esteem and enhanced my transferable skills. It has helped me significantly with my written communication skills, especially with grammar.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

I have not only grown personally but I am primed for the next stage of my journey: the higher education journey! With hard-work, determination, persistence and commitment, along with the remarkable support of my tutors, LLC1 staff and the whole college, I progressed to higher education and earned a place at Edge Hill University to pursue a Bachelor of Arts in Primary Education with Mathematics.”

Open Awards was subject to two reviews from Ofqual within the period and no concerns were raised. Our low risk rating was renewed by QAA after a period of extensive work addressing quality assurance concerns. We continue to participate at a national level with focus groups and improvement activities.

During the financial period each Provider received support through Quality Assurance meetings and on-line support with additional meetings with their Business Development Managers. These are supported by online training and standardisation events.

In June 2022 Open Awards said thank you and farewell to two long serving Trustees – our Chair Phil Hunter and Julie Wilson. We will miss their wisdom and guidance.

Fundraising Activities

Open Awards does not undertake any fundraising activities.

Investment Performance

Open Awards has an Investment Policy, which was reviewed in the last period. The Investment Manager changed to Quilter Cheviot after a tendering exercise in year. The current investment objective for the portfolio is to maintain capital and the management strategy is designated as medium risk. The portfolio performance over the past 12 months was -4% with the quarter to June reacting to the current economic slowdown. Recognised and unrecognised losses for the year were £87,721 with £17,049 income generated. It is recognised there may still be volatility with investments due to the ongoing economic challenges of controlling inflation but as the portfolio is for long term investment this is not a significant concern at this time. Rising interest rates will bring higher returns on Open Awards shorter term deposits.

Financial review

The Statement of Financial Activities is on page 13. The charity’s income is derived from charges to providers of its courses and qualifications, such as learner registration fees and an annual centre recognition fee to cover quality assurance and verification of award of credit. The main areas of provision are Access to Higher Education Diplomas, regulated qualifications and quality endorsed courses; and our End Point Assessment services. Open Awards recognised 67 new centres over a broad spectrum including FE Colleges, schools, Offender Learning providers, private training providers and employers.

Over the period Open Awards generated income of £3,127,892 which was 9.6% higher than the previous period’s figure of £2,853,209 for the year ended 31 July 2021 and reflects the income gained through the IFATE EQA contract and the growth in Qualifications and Functional Skills. We have continued to improve our qualification offer responding to demand from our centres and in the labour market. There was a marginal increase in prices for 202122 having frozen them in the previous year to support our centres in the challenges facing them, but prices remain competitive in the current market.

Resources expended were £2,425,691 in comparison to £1,806,239 for year ended 31 July 2021. This is a 34% increase on the previous period due to investment in staffing and systems as we diversify our offer, support growth in Functional Skills and review our business critical systems. There were savings on utilities and staff travel costs due to revised ways of working following the pandemic. Net operating income was £702,201 against a revised forecast of £386,939. After gains on investment there was a total surplus of £614,480.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Unrestricted Funds

During the period, the charitable company’s net assets increased in value from £4,078,555 to £4,693,033. This level of reserves is considered by the Trustees to be necessary to generate income, which, along with other income earned each year, enables the Charity to maintain financial independence. Trustees have committed to using some of this surplus within the next financial year to continue development within Functional Skills, invest in End Point Assessment services and business systems as well as further diversification. It is therefore forecast that Open Awards will have a deficit at the end of the next financial year.

£2,000 was awarded in Bursaries making a total of £112,657 awarded to date. Trustees have maintained their support for the scheme and a further £2,000 has been designated in the period.

Reserves policy

Reserves are available to be spent at the discretion of the Trustees and the charity has developed its reserves policy to maintain continuity of its operations and safeguard its charitable purposes, in the event of a significant decrease in income.

In particular reserves are held for the following reasons:

In order to satisfy these objectives , the reserves policy is set at a target of between £2.5m and £3m. This policy is reviewed annually by the trustees to ensure the sustainability of the organisation is safeguarded.

As at 31 July 2022, Open Award’s total reserves stood at £4,693,035. After making allowance for designated funds of £1,446,871, reserves available to satisfy the policy requirements above stood at £3,246,164. The Trustees are aware this exceeds target but with a planned deficit for 2022/23 reserves are anticipated to fall in line with this policy at the end of the next financial year.

The designated funds, as outlined in the notes to the accounts, are not a legal or restrictive commitment and can be undesignated by the Trustees at any time. However, it refers to amount set aside to fund various projects and priorities.

The Auditors and Trustees are happy that there are no uncertainties about Open Awards continuing as a going concern.

Principal Risks and Uncertainties

The risk management strategy developed by the Board consists of:

This was last reviewed by the Board on 23rd June 2022 and the review was carried out in accordance with Charities Commission guidance ‘Charities and Risk Management’. This was a comprehensive review.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

At the time of review the significant change was the loss of income from the IFATE contract for External Quality Assurance as it transfers to Ofqual. The overall level of risk is currently considered to be medium. Trustees have reviewed this and are satisfied that appropriate operational control systems are in place, although they will continue to monitor on a termly basis.

The principal risks are considered to be:

Open Awards continues to be seen as ‘low risk’ by our regulators and works hard to maintain this status.

Open Awards continues to seek to grow our customer base and to diversify in the products and services we provide, whilst remaining true to our mission and charitable aims. This includes diversifying our offer including developing our End Point Assessment services and investing in Essential Digital Skills. Our continued full cost recovery programme has been successful and we continue to make savings in our expenditure where they do not compromise our integrity and quality. The overall level of risk is however considered to be medium.

Plans for Future

Open Awards will continue to regard regulated qualifications and Access to HE Diplomas as our ‘core’ business. However, we will continue to seek diversification opportunities that deliver additional forms of funding to the organisation. Open Awards has continued to develop End Point Assessment services within the year. We have invested in staff and systems to ensure this develops during the next financial year.

Maintaining full cost recovery and seeking efficiencies where possible will also continue to be a priority as we seek to remain in surplus for the next period. However, we will need to balance this with a need for a small reorganisation to continue to develop our services for providers. It is accepted therefore that it is likely Open Awards will have a deficit in the next financial year. Open Awards plans to continue our investment begun this year to the next year in our business critical systems and processes to ensure that we continue to offer a centre centric service.

Structure, governance and management

Open Awards is a company limited by guarantee without share capital governed by its memorandum and articles of association. It is a registered charity number 1113612 and company number 5462874.

Open Awards is an Awarding Organisation and Access Validating Agency operating across England and Wales. It is regulated by the Office of Quality and Exams Regulator (OFQUAL) and the Quality Assurance Agency for Higher Education (QAA).

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

The Charity’s Board of Trustees are also its Directors who are elected by Annual General Meeting of the members of the Charity. Casual vacancies are filled, as required, by the Board of Trustees in accordance with the Charity’s Articles of Association. Members of the Board of Trustees who served during the year are listed below.

Mr A P W Hunter - Chair to 23 June 2022 (Resigned 23 June 2022) Dr G B Laing Ms J F Wilson (Resigned 23 June 2022) Mr A J Bevin Ms G A Mason Mr D A E C Tilley Mrs N J Mailey - Chair Mr P H Taaffe Mrs K Grant Mr K Gordon Mr N Small Dr A Stott Mr B J Jordan (Appointed 23 June 2022) Dr H Van Zalinge (Appointed 23 June 2022)

The Board of Trustees meet termly to monitor the charity’s activities and performance, to determine strategy and to attend to all other matters of governance.

In addition the Board of Trustees have the following committees:

The Search Committee meets as required to determine the specification for Trustee and Senior Management recruitment.

The Access to Higher Education Committee meets termly to undertake detailed scrutiny of all matters relating to the organisation’s regulatory and standards responsibilities for Access to Higher Education provision. The committee has delegated powers to approve certain processes and recommend to the Board of Trustees the adoption of policies and reports.

The Business Development Committee is going through a process of restructure and termly meetings will resume in 2022 to undertake scrutiny of the validity of our Ofqual regulated qualifications, determine future strategic demand and review proposals for planned products and services.

The Bursary Committee decides the allocation of Open Awards bursaries.

Open Awards aims to maintain a diverse mix of skills and experience within the Board of Trustees that supports the governance and management of the charity. There is a balance between representation from the Higher Education and Further Education sectors and individuals with particular skills or experience. The induction procedure for new Trustees includes distribution of background information, access to all records and attendance at an organisational induction session.

Trustees receive ongoing training during their tenure with specialist training on Governance, Safeguarding and Financial Management for non-financial Trustees provided for Trustees as well as development sessions on specialist areas of Open Awards business. In addition Trustees are invited to attend a wide range of events and seminars, including on-line training to ensure that they are continually developed in their roles.

A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations the Chief Executive has delegated authority, for operational matters including finance and employment.

Open Awards Trustees have responsibility for setting the pay and remuneration of the charity’s key personnel and this is done on an annual basis, including a formal cost of living review. Salaries are benchmarked with other Awarding Organisations and across the Further Education sector.

OPEN AWARDS

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

Employee Engagement

Open Awards communicates with our employees regularly, usually through monthly team meetings and full staff meetings. We have a Health and Wellbeing group that promotes healthy lifestyles including mental health awareness. Open Awards staff has access to a dedicated mental health advice and counselling helpline. Through one of our partners, The Mentoring School we were able to make their Wellbeing Suite available for all employees. During the year all employees received support through a Relaxation and Meditation programme designed to help them manage their own stress and mental health issues.

Since March 2020 we have used MS Teams for more informal organisational conversations and updates as well as sharing learning opportunities and additional mental health support.

Open Awards has very clear Mission, Vision and Values that are understood by all employees, displayed throughout the office, included in our Induction for new employees and demonstrated using the annual appraisal system.

Relationship with Related Parties

None to declare.

Auditor

DSG have agreed to offer themselves for re-election and a resolution proposing their re-appointment, at a remuneration to be determined by the Board of Trustees, will be placed before the Annual General Meeting.

Disclosure of information to auditor

Trustees have confirmed on the date of approval of these financial statements, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. They have taken the steps that they ought to take as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. The Trustees declare that they have approved the Trustee’s Report above.

The trustees' report was approved by the Board of Trustees.

Mrs N J Mailey - Chair Trustee

3 November 2022

OPEN AWARDS

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 JULY 2022

The trustees, who are also the directors of Open Awards for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which 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 year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

OPEN AWARDS

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF OPEN AWARDS

Opinion

We have audited the financial statements of Open Awards (the ‘charitable company’) for the year ended 31 July 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

OPEN AWARDS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF OPEN AWARDS

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose 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

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

OPEN AWARDS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF OPEN AWARDS

Capability of the audit in detecting irregularities, including fraud

Based on our discussions with the charity’s management and the Trustees, we identified that the following laws and regulations are significant to the entity:

These matters were discussed amongst the engagement team at the planning stage and the team remained alert to non-compliance throughout the audit.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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, for our audit work, for this report, or for the opinions we have formed.

Jean Ellis BA FCA CTA (Senior Statutory Auditor) for and on behalf of DSG

3 November 2022

Chartered Accountants Statutory Auditor

Castle Chambers 43 Castle Street Liverpool L2 9TL

OPEN AWARDS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2022

Unrestricted Unrestricted Restricted **Total ** Unrestricted Unrestricted Restricted Total
funds funds funds funds
2022 2022 2022 2021 2021 2021
Notes £ £ £ £ £ £
Income and endowments from:
Donations and legacies 2 - 13,509 13,509 - 14,247 14,247
Charitable activities 3 3,091,872 - 3,091,872 2,791,898 - 2,791,898
Investments 4 22,511 - 22,511 23,783 - 23,783
Other income 5 - - - 23,281 - 23,281
Total income 3,114,383 13,509 3,127,892 2,838,962 14,247 2,853,209
Expenditure on:
Raising funds 6 12,734 - 12,734 14,599 - 14,599
Charitable activities 7 2,399,448 13,509 2,412,957 1,765,390 14,247 1,779,637
Other 11 - - - 12,003 - 12,003
Total expenditure 2,412,182 13,509 2,425,691 1,791,992 14,247 1,806,239
Net gains/(losses) on
investments 12 (87,721) - (87,721) 176,787 - 176,787
Net movement in funds 614,480 - 614,480 1,223,757 - 1,223,757
Fund balances at 1 August
2021 4,078,555 - 4,078,555 2,854,798 - 2,854,798
Fund balances at 31 July
2022 4,693,035 - 4,693,035 4,078,555 - 4,078,555

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

OPEN AWARDS

BALANCE SHEET

AS AT 31 JULY 2022

2022 2022 2021 2021
Notes £ £ £ £
Fixed assets
Intangible assets 13 5,880 5,880
Tangible assets 14 212,204 222,656
Investments 15 2,229,379 2,314,269
2,447,463 2,542,805
Current assets
Debtors 16 580,189 385,104
Cash at bank and in hand 2,129,354 1,419,811
2,709,543 1,804,915
Creditors: amounts falling due within
one year 17 (463,971) (267,773)
Net current assets 2,245,572 1,537,142
Total assets less current liabilities 4,693,035 4,079,947
Creditors: amounts falling due after
more than one year 18 - (1,392)
Net assets 4,693,035 4,078,555
Income funds
Unrestricted funds
Designated funds 22 1,446,871 1,418,786
General unrestricted funds 3,246,164 2,659,769
4,693,035 4,078,555
4,693,035 4,078,555

The financial statements were approved by the Trustees on 3 November 2022

Mrs N J Mailey - Chair Trustee

Company registration number 05462874

OPEN AWARDS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022

2022 2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 25 701,488 888,298
Investing activities
Purchase of intangible assets - (5,880)
Purchase of tangible fixed assets (8,793) (55,276)
Purchase of investments (2,974,447) (1,397,584)
Proceeds from disposal of investments 2,971,616 892,659
Investment income received 22,511 23,783
Net cash generated from/(used in)
investing activities 10,887 (542,298)
Financing activities
Payment of obligations under finance leases (2,832) (2,832)
Net cash used in financing activities (2,832) (2,832)
Net increase in cash and cash equivalents 709,543 343,168
Cash and cash equivalents at beginning of year 1,419,811 1,076,643
Cash and cash equivalents at end of year 2,129,354 1,419,811

OPEN AWARDS

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

1 Accounting policies

Charity information

Open Awards is a private company limited by guarantee incorporated in England and Wales. The registered office is 17 De Havilland Drive, Estuary Commerce Park, Speke, Liverpool, L24 8RN.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's memorandum of articles of association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Incoming resources from charitable activities relate to the academic year or years ending in the accounting period. Centre recognition income is recognised when a centre is formally approved to offer Open Awards courses and qualifications.

Learner registration income is recognised when a learner is registered on a course. There is no separate certification income. Where a course ends in the following accounting period the cost of moderation is covered by the annual fee for that year or additional quality assurance charges are applied at that time.

Bank interest and income from listed investments are recognised as investment income in the period it relates to.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Resources expended are recognised when the charity becomes obliged to settle the liability arising and include irrecoverable VAT.

Each resource expended is allocated to or apportioned between the headings of charitable expenditure according to the function it relates to, namely direct charitable activities, support activities or governance.

The support costs are those costs, which are necessary to deliver a charitable activity, but do not produce or constitute the output of the charitable activity. They include the rent and running costs of the charity's premises.

Governance costs are those costs associated with the governance arrangements of the charity, which affects the general running of the charity. They normally include external audit and legal advice for trustees, along with any other costs associated with strategic, as opposed to day-to-day management, of the charity's activities.

Whenever the resource expended relates to more than one of these three functions an apportionment is made on a reasonable or justifiable basis.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website and database 3 years straight line

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings equally over 40 years Fixtures, fittings & equipment 15 years straight line Computer equipment 3 years straight line

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

Assets under £1,000 are not capitalised. They are expensed in the year of purchase

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

1 Accounting policies

(Continued)

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charitable company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

The charity operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.14 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

2 Donations and legacies

Restricted Restricted Restricted
funds funds
2022 2021
£ £
Donations and gifts 13,509 14,247
Donations and gifts
Ufi VocTech Trust - 9,032
Kickstart 13,509 3,365
Other - 1,850
13,509 14,247
3 Charitable activities
2022 2021
£ £
Fees from learner registration, awards and
accreditation of courses 3,091,872 2,791,898
4 Investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Income from listed investments 17,049 19,240
Interest receivable 5,462 4,543
22,511 23,783

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

5 Other income

2022 2021
£ £
Insurance proceeds - 23,281
6 Raising funds
2022 2021
£ £
Investment management 12,734 14,599
12,734 14,599

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

7 Charitable activities

2022 2021
£ £
Staff costs 1,688,138 1,352,809
Depreciation and impairment 19,244 17,897
Printing, postage and stationery 49,864 31,275
Telephone 14,651 26,350
Travelling 4,460 1,301
Staff expenses 8,394 5,484
Qualification development 65,045 45,032
Staff development, training and conferences 39,462 5,281
ICT Systems and maintenance 190,972 107,854
Ufi VocTech project - 1,113
Subscriptions 26,661 22,692
Hire of photocopier 1,944 1,976
Training, hospitality and room hire 1,121 (538)
External verification and quality assurance 185,233 64,950
Bursary fund 2,000 20,000
2,297,189 1,703,476
Share of support costs (see note 8) 72,472 65,660
Share of governance costs (see note 8) 43,296 10,501
2,412,957 1,779,637
Analysis by fund
Unrestricted funds 2,399,448
Restricted funds 13,509
2,412,957
For the year ended 31 July 2021
Unrestricted funds 1,765,390
Restricted funds 14,247
1,779,637

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

8 Support costs

Support costs
Support
Governance		 2022 Support
Governance		 2021
costs costs costs costs
£ £ £ £ £ £
Office costs 72,472 - 72,472 65,660 - 65,660
Audit fees - 8,605 8,605 - 8,783 8,783
Legal and professional - 34,123 34,123 - 1,718 1,718
Other governance costs - 568 568 - - -
72,472 43,296 115,768 65,660 10,501 76,161
Analysed between
Charitable activities 72,472 43,296 115,768 65,660 10,501 76,161

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but 5 of them were reimbursed a total of £568 in expenses (2021 - none).

10 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2022 2021
Number Number
Academic and administrative staff 50 41
Employment costs 2022 2021
£ £
Wages and salaries 1,469,875 1,175,386
Social security costs 140,827 111,797
Other pension costs 77,436 65,626
1,688,138 1,352,809
The number of employees whose annual remuneration was more than £60,000
is as follows:
2022 2021
Number Number
£70,001 to £80,000 - 1
£80,001 to £90,000 1 -

Contributions totalling £4,774 (2021: £4,474) were made to defined contribution pension schemes on behalf of employees whose emoluments exceed £60,000.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

11 Other

2022 2021
£ £
Net loss on disposal of tangible fixed assets - 12,003
- 12,003
Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2022 2021
£ £
Revaluation of investments 20,189 103,888
Gain/(loss) on sale of investments (107,910) 72,899
(87,721) 176,787

12 Net gains/(losses) on investments

13 Intangible fixed assets

Intangible fixed assets
Website and database
£
Cost
At 1 August 2021 and 31 July 2022 26,472
Amortisation and impairment
At 1 August 2021 and 31 July 2022 20,592
Carrying amount
At 31 July 2022 5,880
At 31 July 2021 5,880

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

14 Tangible fixed assets

Tangible fixed assets
Land and Fixtures, Computer Total
buildings fittings & equipment
equipment
£ £ £ £
Cost
At 1 August 2021 1,006,015 241,219 92,694 1,339,928
Additions - - 8,793 8,793
Disposals - - (25,643) (25,643)
At 31 July 2022 1,006,015 241,219 75,844 1,323,078
Depreciation and impairment
At 1 August 2021 853,165 172,593 91,514 1,117,272
Depreciation charged in the year 5,868 10,680 2,697 19,245
Eliminated in respect of disposals - - (25,643) (25,643)
At 31 July 2022 859,033 183,273 68,568 1,110,874
Carrying amount
At 31 July 2022 146,982 57,946 7,276 212,204
At 31 July 2021 152,850 68,626 1,180 222,656

15 Fixed asset investments

Listed Cash in Total
investments portfolio
£ £
Cost or valuation
At 1 August 2021 2,097,208 217,061 2,314,269
Additions 2,974,447 - 2,974,447
Valuation changes 20,189 - 20,189
Disposals (2,862,710) (216,816) (3,079,526)
At 31 July 2022 2,229,134 245 2,229,379
Carrying amount
At 31 July 2022 2,229,134 245 2,229,379
At 31 July 2021 2,097,208 217,061 2,314,269

Fixed asset investments revalued

Investments are included at revalued amounts, being the market value of the shares at the year end. The historical cost of the shares was £2,208,945 (2021: £1,944,107).

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

16 Debtors
2022 2021
Amounts falling due within one year: £ £
Trade debtors 209,474 228,190
Prepayments and accrued income 370,715 156,914
580,189 385,104
17 Creditors: amounts falling due within one year
2022 2021
Notes £ £
Obligations under finance leases 19 1,296 2,736
Other taxation and social security 37,986 32,858
Trade creditors 122,723 54,377
Other creditors 20,493 17,459
Accruals and deferred income 281,473 160,343
463,971 267,773
18 Creditors: amounts falling due after more than one year
2022 2021
Notes £ £
Obligations under finance leases 19 - 1,392
19 Finance lease commitments
Future minimum lease payments due under finance leases:
2022 2021
£ £
Within one year 1,296 2,736
Within two and five years - 1,392
1,296 4,128

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

20 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.

The charge to Statement of Financial Activities in respect of defined contribution schemes was £77,436 (2021: £65,626).

21 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Income Expenditure Balance at Income Expenditure Balance at
1 August 31 July 2022
£ £ 2021
£		 £ £ £
Ufi VocTech Trust 9,032 (9,032) - - - -
Skelton Charity Donation 850 (850) - - - -
Biochemical Society Grant 1,000 (1,000) - - - -
Kickstart 3,365 (3,365) - 13,509 (13,509) -
14,247 (14,247) - 13,509 (13,509) -

Ufi VocTech Trust: In May 2020 Open Awards was awarded funding to undertake a project to improve remote invigilation of Functional Skills to allow more training and exams to be undertaken remotely.

Skelton Charity Donation – In October 2020 Open Awards was awarded a grant of £850 towards setting up an Assessment Room to enable access to online assessment for learners during the pandemic as part of the Extraordinary Awarding framework.

Biochemical Society Grant – a grant of £1,000 was awarded in November 2020 towards the development of an appropriate entry level Science qualification for SEND learners.

Kickstart – Open Awards appointed two administrators in March 2021 as part of the Government scheme to support individuals into meaningful workplace roles.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

22 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at Expenditure Transfers Balance at Expenditure Transfers Balance at
1 August 1 August 31 July 2022
2020
£		 £ £ 2021
£		 £ £ £
Bursary Fund 40,250 (20,000) - 20,250 (2,000) 2,000 20,250
IT
Infrastructure
and Systems
Fund 180,000 (42,994) 112,994 250,000 (84,853) 84,853 250,000
Assessment
Development
Fund 50,000 (45,079) 95,079 100,000 (65,044) 100,044 135,000
Tangible &
Intangible
Fixed Asset
Fund - - 228,536 228,536 (10,452) - 218,084
Adjustment in
income /
Covid 19 - - 500,000 500,000 - - 500,000
Building
Maintenance - - 100,000 100,000 (2,523) - 97,477
Project work /
Diversification
opportunities - - 80,000 80,000 (43,940) 50,000 86,060
Cyber related
incidents - - 100,000 100,000 - - 100,000
Redundancy
payments - - 40,000 40,000 - - 40,000
270,250 (108,073) 1,256,609 1,418,786 (208,812) 236,897 1,446,871

Bursary Fund - This is a fund set up for the payment of bursaries to learners at recognised centres to enable or support them with their studies, or to providers to enable innovative projects to support their learners.

IT Infrastructure and Systems Fund - This is a fund committed to the development of Open Awards IT infrastructure and systems in order to streamline processes and improve efficiencies.

Assessment Development Fund - A fund for assessment development of Functional Skills, Essential Digital Skills and End-point assessments.

Tangible & Intangible Fixed Asset Fund - This fund reflects the value of the fixed assets used operationally by the charity.

Adjustment in Income/Covid Recovery - A deficit budget has been set for 2022-23 as Open Awards invests in staffing and services to support growth in provision, following the transition of the IFATE contract to Ofqual.

Building Maintenance - Open Awards owns 17 De Havilland Drive, Estuary Commerce Park, Speke L24 8RN and the Trustees wish to make proper provision for the maintenance of this building. This is in addition to operational maintenance incurred in-year.

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2022

22 Designated funds

(Continued)

Project work/Diversification Opportunities - Open Awards has to keep abreast of government initiatives and funding issues in order to offer providers the qualifications that best fit the needs of the learners and meet employer needs. This means that additional resources may be called upon to assess the viability of entering into new markets or areas of business without eating into the income generated from existing core operations.

Cyber related incidents - Whilst Open Awards takes all necessary precautions in respect of network security and GDPR and has comprehensive levels of insurance, additional resources may be needed. With an increase in remote working and more sophisticated cyber-crime the board have decided it would be prudent to have reserves in place to cover this contingency.

Redundancy Payments - The impact of Covid19 and the current economic climate on our Providers and therefore our income, is as yet unknown and ongoing. The board have determined it would be cautious to set aside a fund for this.

23 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022 2021
£ £
Within one year 5,712 6,958
Between two and five years 1,738 7,450
7,450 14,408

24 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2022 2021
£ £
Aggregate compensation 338,145 285,618

OPEN AWARDS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2022

25 Cash generated from operations 2022 2021
£ £
Surplus for the year 614,480 1,223,757
Adjustments for:
Investment income recognised in statement of financial activities (22,511) (23,783)
(Gain)/loss on disposal of tangible fixed assets - 12,003
Loss/(gain) on disposal of investments 107,910 (72,899)
Fair value gains and losses on investments (20,189) (103,888)
Depreciation and impairment of tangible fixed assets 19,244 17,897
Movements in working capital:
(Increase) in debtors (195,085) (265,965)
Increase in creditors 197,639 101,176
Cash generated from operations 701,488 888,298
26 Analysis of changes in net funds
At 1 August 2021 Cash flows At 31 July 2022
£ £ £
Cash at bank and in hand 1,419,811 709,543 2,129,354
Obligations under finance leases (4,128) 2,832 (1,296)
1,415,683 712,375 2,128,058