**Charity Registration No. 1114460** **Company Registration No. 5453363 (England and Wales)** ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED** # **LASER LEARNING AWARDS** **ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021** **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS LEGAL AND ADMINISTRATIVE INFORMATION** **Trustees** Malcolm Bell (Chair) Fiona Morey Paul Phillips Sharon Phillips Eddie Playfair Professor Simon Thompson Lauren Anning (Appointed 7 August 2020) Paul Barnard (Appointed 7 August 2020) **Chief Executive Officer** David Gittins **Secretary** David Gittins **Charity number** 1114460 **Company number** 5453363 **Registered office** 4 Marigold Drive Bisley Woking Surrey GU24 9SF **Auditor** Frances Wilde FCCA DChA Warner Wilde Chartered Certified Accountants 4 Marigold Drive Bisley Surrey GU24 9SF **Solicitors** ASB Law Innovis House 108 High Street Crawley West Sussex RH10 1AS ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 4| |Statement of Trustees' responsibilities|5| |Independent auditor's report|6 - 9| |Statement of financial activities|10| |Balance sheet|11| |Statement of cash flows|12| |Notes to the financial statements|13 - 20| **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 JULY 2021**_ The Trustees, who are also directors present their report and accounts for the year ended 31 July 2021. 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 Charity's governing document, 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 principal objectives of the Charity, as declared in the Memorandum & Articles of Association, are the advancement of the education of the public in one or more of the following ways: - a. by promoting lifelong learning, increasing social inclusion through educational advancement and widening participation in education and training, particularly by those persons who have previously been excluded from or had limited access to educational opportunities - b. by improving the quality and flexibility of education provision for the public benefit - c. by improving access to learning opportunities and facilitating progression to further learning, employment and higher education particularly through the award of credits and credit-based qualifications ## **Objectives and activities for 2020-21** The Charity continued to face the challenges of the ongoing COVID-19 pandemic which saw further lockdowns and Government restrictions during the year. Experience from 2019-20 and the adaptations to working practices enabled the Charity to continue working effectively to meets its business needs in support of its charitable aims. The Trustees have continued to follow Charity Commission guidance in focussing on the Charity’s educational objectives. The summary below is focussed on how the Charity has responded to the continuing pandemic in order to be able to continue to pursue its principal charitable aims. - _**General Operations**_ Homeworking continued to be an option for many staff and only those few staff members in one team whose job roles relied on access to specialist facilities were required to work in an office environment. COVID tests, social distancing, protective equipment and enhanced cleaning have continued to be used in our offices. - _**Access to Higher Education Diplomas**_ LASER continued to work closely with the regulator of the Access Diploma (QAA) to implement the revised Extraordinary Regulatory Framework (2020-21) which required LASER to work with providers of Access Diplomas to support learning and achievement via the use of extensive adaptations and enhanced recognition of extenuating circumstances for students. This was carried out effectively and efficiently in partnership with the QAA. ## _**• Ofqual Regulated Qualifications and Unregulated Courses under the Laser Learning Awards brand**_ LASER continued to offer a wide range of courses used by schools, colleges, charities, community groups, local authorities and prisons with the primary aim of supporting learners to progress to further study or to support their transition into employment. Once again, the LASER Quality Team worked closely with providers to support adapted assessment methods to ensure achievement within the restrictions resulting from the pandemic and where relevant under the Extraordinary Regulatory Framework and the Extended Extraordinary Regulatory Framework as set out by Ofqual. - 1 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## _**• Security Qualifications under the Trident Awards brand**_ During 2020-21 training providers were able to offer face to face training once again under revised guidance issued by the Security Industry Authority (SIA). As a result of this the volume of online delivery and assessment was greatly reduced. Optical Mark Reader technology was widely deployed for paper-based exams and some providers started to trial the use of invigilated online exams within their centres. Updated versions of the security qualifications as prescribed by the SIA were launched in April 2021. These revised qualifications are structured in such a way as to make them difficult to be delivered online. Furthermore, they contain a requirement for more contact hours and thus require training providers to devote more resources to offer the courses, as well as longer examinations and more practical assessments which require more resources to mark and process. We will continue to monitor the impact of these changes upon the uptake and quality of this provision. ## **Financial review** The budget for 2020-21 was set on the basis that continued disruption resulting from the pandemic may have an adverse impact on the Charity’s business. Accordingly, income targets were reduced by some 30% and a potential overall deficit was anticipated. However, the outturn for 2020-21 showed a surplus of over £240,000 which demonstrated the effectiveness of our working practices and the demand for some of our key services, especially the demand for trained security operatives. The budget for 2021-22 has been set on the basis of this improved position with a projected surplus of just over £70,000 for the year end. ## **Reserves policy** It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year. ## **Risk management** The Trustees have an ongoing risk management strategy which includes a review at every meeting of the risks the Charity might face, particularly where these relate to regulatory compliance and financial health. ## **Plans for the future** The key areas of the Charity’s services will continue to be developed to maximise the number of individuals who can benefit from our qualifications and courses. - The Trident Awards brand will see further investment in plans to reduce paperwork and move as much of the process as is feasible into a digital format. - One of our key qualification suites, the LASER Progression Qualifications, is being reviewed and redeveloped to widen the range of available units and to simplify its assessment structure. - Further investment in e-learning courses to support our Access to HE Diplomas is continuing with the development of new courses and enhancement of existing courses to make them more interactive and user-friendly. - Projects are also underway to work with selected partners to offer accreditation for courses overseas to support individuals to access degree level study and employment in an international context. - 2 - ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **Structure, governance and management** The Charity is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 16 May 2005; its registered charity number is 1114460. Open College Network South East Region Ltd is a fully independent awarding organisation and continues to use the 'Laser Learning Awards’ (LASER) trading name and ‘Trident Awards’ brand since February 2012. Open College Network South East Region operates under separate licences from the Quality Assurance Agency for Higher Education (QAA) for its Access to HE work, from Ofqual for its national qualifications work and additionally from the Security Industry Authority (SIA) for its Trident Awards branded work in the security sector. The Trustees, who are also the directors for the purpose of company law, and who served during the year were: Malcolm Bell (Chair) Fiona Morey Paul Phillips Sharon Phillips Eddie Playfair Professor Simon Thompson Lauren Anning (Appointed 7 August 2020) Paul Barnard (Appointed 7 August 2020) ## **Trustees** The overall management and governance of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum & Articles of Association. None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up. Trustees have been appointed in accordance with the Company's governing documents, as established in its Memorandum and Articles of Association and related Rules. These are compliant with Company and Charity law and meet the expectations of the external regulating/licensing bodies. The Board of Trustees had four vacancies out a maximum of twelve at the end of the year. New Trustees are made aware of, their legal obligations under Charity and company law; the content of the Memorandum & Articles of Association and Rules; the company structure, the committee and decision-making processes; the business plan and the recent financial performance of the Charity. - 3 - THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS TRUSTEES, REPORT {CONTINUEDHINCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 JULY2021 Organisational structure and decision Ma￿TrY Th¢ 8oard of Twstees Board meets a minimum ol three bmes a year and dLtnrwJ 20XL21 the has contr'nued to meet virtLAlly in order trj $afo3uard 8oard membèrs staff n I￿aht ol the ongoiry COVID-19 pandemic. The Senior Management ISMTI. whth cx)mwBes thè CEO and Deputy CEO, attarnd in an ex-offiuo ￿pa¢￿ty. The SMT regularty monitors finanaal, qualty. de￿lOpMent. and centre approva issues in order lo a9$e￿ aTrJ manage risk R¢rI￿al action is Inrtkated rf ar¥J requir*J, either by th¢ SMT or Board of Tr￿leeS dependiro ¢)n the level of athhority rwuired. Trnining n*ed6 for trustee6 we vJentsfi¢d a5 part of the inrtBI iTrJLKtion aTrJ then on an amual basi by discLk8sion at meeting5 of the 8owd. Inlormal training l¢x trustees has been tsJ"It into their meetings duri the cour8e ol the year whereby they are activdy eryJW in rnoniloring karnirYJ aLx)ul the operational and strategic devekjpment ot the Charty. For ex3mF4e. thls In¢lLAfjes aLtlve eThJagemènt In Checklng the statem8nis r>f eornpliance m*e to tolh Okiual aThY the QAA In respect of each of these regulatory lice￿8 Furthèrmorè, truslees are promtjed vAth nèvts a￿1 u￿ateS regarding thèir rde throughout the year The trustee$ for the Charrty ale wrdlly ¢hcfjen ¢or memtership of the Board on the basis ol thèii •¥￿￿enCe in th• buslnoss 91 gjucation aThJ tranin9 tho principal foojs of tho Charty'$ wvrk. Thoie are a180 8u&committ•eo of th• Bcord. tha Qualty Commltoe and the kn8$8 Quallty and Devebprnent Commrttee. have sorre responsiblity relatir¥ to each extemal re9ulator1014ual and QAA respe¢tNelyl. These cornrnittees meet • minimum of three limes 8 year and artr attended by an approv￿le member ol SMT and other officers each i8 chaired by a memtér ol Ihe Board. Follow amendments to the Charws Objects noted in last yearf8 re￿Irt the Board of Trustees. at the meeting in June X121, approved a set of revised AJti¢les ol AsS￿l8ti.c￿I and rules ard regukntKJM designed lo updat* and streamline the governance ol the ConK4ny. Audltor In a¢wrdance wlh the company'$ ¥tide8. a resolutKn w0￿r*j that ￿rDttr Wikje be reappointwj audf(ors oflhe Company will be to the members. Dl•clo•ur• of InttxmAllon to wdStor Exh of the Trustees has confirmed fhat there is no Information of they are aware whlch ￿ ielèvanl lo th8 audit, bul of whl¢h the al￿￿Or Ls un￿are They have fijrt￿r confinned that thèy have taken approprlal8 8teF£ to Idenlty 5uth relevant Informalh)n lo e$￿ish that the a￿J*0[ k awar• of $uc* Inftsrmat￿￿. The Tnjstees, repKJrt awroved by thtr Board ofTnAtees. Maleolm Bell Trustee Dated.. 7èh 2c)21 ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS STATEMENT OF TRUSTEES' RESPONSIBILITIES** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ The Trustees, who are also the directors of The Open College Network South East Region Limited 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 Charity 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - 5 - ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS INDEPENDENT AUDITOR'S REPORT** ## **TO THE TRUSTEES OF THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED** ## **Opinion** We have audited the financial statements of The Open College Network South East Region Limited (the ‘Charity’) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 July 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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 accounts section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The Trustees are responsible for the other information. The other information comprises the information included in the 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 we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. - 6 - ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the Trustees' r eport; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity 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 Charity’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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. - 7 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS INDEPENDENT AUDITOR'S REPORT (CONTINUED)** ## **TO THE TRUSTEES OF THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED** Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the charity through discussions with trustees and other management, and from our knowledge and experience of the charity and faith sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, the Charities Act 2011, taxation legislation, data protection, employment, environmental and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and testing controls with walk through procedures and substantive transaction testing; To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining any accounting estimates were indicative of potential bias; investigated the rationale behind significant or unusual transactions; and In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; enquiring of management as to actual and potential litigation and claims; reviewing correspondence with HMRC and relevant regulators such as the Charity Commisison A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. - 8 - THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED Use of our rgport This report Is made solgly to the charty's trustees, as a body, in accordance section 144 of the Charitie5 Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility lo anyone other than the charity and its Iruste8s a$ a body, for our auditwork. for this report, or for the opinion5 we have formed. Frances Wilda FCCA DChA For and on behalf of Warnerwilde Chart•rod C•rtlfigd Accountants Statutory Audltor Wamer Wlde Chartered Cer￿fied Accountants 4 Marigokj Drive Bisley Surrey GU24 9SF Wamer Wilde is eligible for appointment as auditor of the charltsble company by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006,1 ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2021**|2020| ||**Notes**|
**£**|**£**| |**Income and endowments from:**|||| |Charitable activities|**3**|1,790,617|1,466,564| |Investments|**4**|230|-| |Other income|**5**|4,291|10,526| |**Total income**||1,795,138|1,477,090| |**Expenditure on:**|||| |Charitable activities|**6**|1,551,283|1,405,472| |**Net income for the year/**|||| |**Net movement in funds**||243,855|71,618| |Fund balances at 1 August 2020||1,009,383|937,764| |**Fund balances at 31 July 2021**||1,253,238|1,009,382| 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. - 10 - TrIE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS BALANCE SHEET AS AT31 JULY2021 2021 3)3J Notès Fixed ass•ts T8roible assets Current assets Debtors Cash at bank and in hand 10 22,641 22.088 11 188,642 1.100,197 144,370 890.521 1,288,839 1,034,891 Credltors= arnunts falling due wlthln one yeaf 12 158.2421 147,5TII Nel ¢urrenl assets 1,230,597 987,314 T4tal a5￿ts less curr•nt Ilthllitres 1,253,238 1,009,382 Incom•fund8 Unrestrl¢teol fvnds 1,253,238 1,009,382 1,253,238 1,009,382 The company is entitled to the exernplion from the audtt requirernenl contained in seL*ion 477 of the Companies Act 2CQS, for the year eThJed 31 July 2021. atthough an aLJdtt has been carried out under Section 144 01 the Charities Act 2011. The Trustees acknowledge their respJngbilities for ansuriry Ihal the charity keèps aceountiro recorck which cornply wqth section 386 of thè Act and for preparing financial statements which 9ive a true and frair view ol the state ol affairs ol the company as at the end of the financial year arKI of ts incoming resources and application of resour￿9, includlng ils incorne and expenditure, for the financial year in aeLordance wlh the requiremen15 of sectiorB 394 and 395 and which othermse comply wth requirements of the Companles Act 2006 relating to financial statements. so far as applieAble to the company. The members hava not r8quired the company to obtain an aud￿ ol its financial statements uThler Ihe requirements of the Cornpanies Ac* 20C6, for the year in question in accordance with section 476. These finanaal statements havè beèn prepared in accordance wth the provbions ¥pllcat4e to comrAniès subjèct to tre $mall C4)mpanies regime. I Oecfankw 2021 Th& financial statements wer¢ approved by the Trustees on ......... . ............. Makolm Bell (Chairl Trustee Company ReglstTation No. 5453363 ## **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS STATEMENT OF CASH FLOWS** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**16**
**Investing activities**
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Interest received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
**£**
217,283
(9,324)
1,485
230
(7,609)
-
209,674
890,521
1,100,197|**2020**
**£**
**£**
50,795
(14,523)
-
-
(14,523)
-
36,272
854,249
890,521| |---|---|---| - 12 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **1 Accounting policies** ## **Charity information** The Open College Network South East Region Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Marigold Drive, Bisley, Woking, Surrey, GU24 9SF. ## **1.1 Accounting convention** The accounts have been prepared in accordance with the Charity'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)” (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. 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 Charity 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. 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. Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Charity. ## **1.4 Income** Income is recognised when the Charity 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 Charity 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. Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset. - 13 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **1 Accounting policies** **(Continued)** ## **1.5 Expenditure** 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 p aymen ts 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. ## **1.6 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. Depreciation 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: Fixtures and Fittings 25% Reducing Balance Office Equipment 25% Reducing Balance 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 net income/(expenditure) for the year. ## **1.7 Impairment of fixed assets** At each reporting end date, the Charity reviews the carrying amounts of its tangible 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 ) . ## **1.8 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. ## **1.9 Financial instruments** The Charity 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 Charity's balance sheet when the Charity 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. - 14 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **1 Accounting policies** ## **(Continued)** ## _**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. ## _**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 p aymen ts 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 Charity’s contractual obligations expire or are discharged or cancelled. ## **1.10 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 Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.11 Retirement benefits** The Charity operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme. The charity also contributes to a defined benefit scheme, the Teachers Pension Scheme, contributions are also charged in the accounts as they become payable as the share of assets relating to the charity are not seperately identifiable. Any difference between the charge to the Statement of Financial Activities and the contributions paid to either scheme are shown as assets or liabilities in the balance sheet. ## **1.12 Irrecoverable VAT** Irrecoverable VAT is written off to the SOFA as incurred and is disclosed in the same manner as the expense to which it relates. - 15 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **2 Critical accounting estimates and judgements** In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **3 Charitable activities** |**Consultancy &**
**project fees**
**Course**
**accreditation**
**2021**
**2021**
**£**
**£**
Sales within charitable
activities
22,976
1,767,641
**Investments**
Interest receivable
**Other income**
Other income|**Total**
**2021**
**Consultancy &**
**project fees**
**Course**
**accreditation**
**Total**
**2020**
**2020**
**2020**
**£**
**£**
**£**
**£**
1,790,617
30,440
1,436,124
1,466,564
**Unrestricted**
Total
**funds**
**2021**
2020
**£**
£
230
-
**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
4,291
10,526| |---|---| ## **4 Investments** ## **5 Other income** - 16 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **6 Charitable activities** |Staff costs
Depreciation and impairment
Other costs
Share of support costs (see note 7)
Share of governance costs (see note 7)
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Other support costs
374,178
-
Audit fees
-
7,734
Legal and professional
-
12,469
Meeting costs
-
8
Trustee indemnity
insurance
-
595
374,178
20,806
Analysed between
Charitable activities
374,178
20,806|**2021**
**£**
374,178
7,734
12,469
8
595
394,984
394,984|**2021**
**£**
995,830
7,265
153,204
1,156,299
374,178
20,806
1,551,283
Support
costs
Governance
costs
£
£
342,178
-
-
7,734
-
11,050
-
137
-
595
342,178
19,516
342,178
19,516|**2020**
**£**
893,546
7,306
142,926
1,043,778
342,178
19,516
1,405,472
2020
£
342,178
7,734
11,050
137
595
361,694
361,694| |---|---|---|---| ## **7 Support costs** Fees payable to the auditor (including preparation of statutory accounts and irrecoverable VAT ) £ 7 , 734 (20 20 : £7,734 ) and £2,752 (2020: £2,662) for other services . ## **8 Trustees** None of the Trustees (or any persons connected with them) received any remuneration during the year, but none (20 20 : two ) of them were reimbursed a total of £ nil (20 20 : £ 63 ) travelling expenses. - 17 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ ## **9 Employees** ## **Number of employees** The average monthly number of employees during the year was: |Management
Curriculum Development
Administration & Support
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2021**
**Number**
9
5
18
32
**2021**
**£**
805,878
71,933
118,019
995,830|**2020**
**Number**
7
6
16
29
**2020**
**£**
715,724
61,677
116,145
893,546| |---|---|---| The average number of posts includes 20 part time and 9 full time posts. The number of employees whose annual remuneration was £60,000 or more were: ||**2021**|**2020**| |---|---|---| ||**Number**|**Number**| |£60,001-£70,000|1|1| |£70,001-£80,000|1|1| Of the employees whose emoluments exceed £60,000, 2 (2020: 2) had retirement benefits accruing under defined benefit pension schemes. - 18 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## _**FOR THE YEAR ENDED 31 JULY 2021**_ |**10**
**Tangible fixed assets**
**Fixtures and**
**Fittings**
**Office**
**Equipment**
**£**
**£**
**Cost**
At 1 August 2020
11,528
56,607
Additions
-
9,324
Disposals
-
(4,557)
At 31 July 2021
11,528
61,374
**Depreciation and impairment**
At 1 August 2020
11,181
34,887
Depreciation charged in the year
50
7,215
Eliminated in respect of disposals
-
(3,072)
At 31 July 2021
11,231
39,030
**Carrying amount**
At 31 July 2021
297
22,344
At 31 July 2020
348
21,720|**Total**
**£**
68,135
9,324
(4,557)
72,902
46,068
7,265
(3,072)
50,261
22,641
22,068| |---|---| There is no minimum value for capitalisation of tangible fixed assets. Items are identified on the basis of their enduring benefit. |**11**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
151,776
9,355
27,511
188,642|**2020**
**£**
108,556
7,500
28,314
144,370| |---|---|---| ## **12 Creditors: amounts falling due within one year** |Trade creditors
Accruals and deferred income|**2021**
**£**
28,916
29,326
58,242|**2020**
**£**
21,484
26,093
47,577| |---|---|---| **13 Operating lease commitments** - 19 - **THE OPEN COLLEGE NETWORK SOUTH EAST REGION LIMITED LASER LEARNING AWARDS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 JULY 2021**_ **13 Operating lease commitments (Continued)** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: **(Continued)** |Within one year
Between two and five years
**14**
**Related party transactions**
**Remuneration of key management personnel**
The remuneration of key management personnel is as follows.|**2021**
**£**
29,520
46,740
76,260|**2020**
**£**
27,500
-
27,500| |---|---|---| |**2021**
**£**
Aggregate compensation
164,083
**15**
**Provisions Available to Smaller Entities**
In common with many other entities of our size and nature we use our auditors to assist
preparation of the financial statements and to provide regular support to our finance team.
**16**
**Cash generated from operations**
**2021**
**£**
Surplus for the year
243,855
Adjustments for:
Investment income recognised in statement of financial activities
(230)
Depreciation and impairment of tangible fixed assets
7,265
Movements in working capital:
(Increase) in debtors
(44,272)
Increase in creditors
10,665
**Cash generated from operations**
217,283
17
**Analysis of changes in net funds**
The Charity had no debt during the year.|**2020**
**£**
159,132
with the
**2020**
**£**
71,618
-
7,306
(29,795)
1,666
50,795| |---|---| - 20 -