Charity Registration No. 1115234 (England and Wales) Charity Registration No. SCO 39261 (Scotland) Company Registration No. 05736932 (England and Wales)
AMENDED
CVQO LIMITED TRUSTEES' REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2021 LEGAL AND ADMINISTRATIVE INFORMATION Trustees Chalrman Vlce Ghalrman Honorary Treasurer The Lord Lingndd Kl DLill DL Ms Olga PA)ttomley MIVA MIOD Mr John Dowty TD MA ACA Mr Keith Baldwin BSCIEng} ACGI MS¢ DIC C Eng MIEf FIBC Professor Martin Doel CBE Ms Lesley Davies OBE Professor Simon Denny BA MA PhD. Holder of the Queen, Award for Enterprise Promollon Chief Executive Mr Guy Horrldge Bsc Msc MBA FCGI FCMI FlnstLM Key management Chief Executive Mr Guy Horrldge Bsc Msc MBA FCGI FCMI FlnstLM personnel D¢puly Chief Execullve Ms Mlchèle Pary BA PGDIP MA Dlreclor of Finance Mr Robert Harvey MA ACA Charity Name CVQO Llmlled Charlly number England arKI Wales 1115234 Charlly number Swlland SC039261 Company number 05736932 Reglslored Office and Prlnclpal address 3 Archlpelago Lyon Way Camberley Surrey GU16 7ER Auditor8 Crowe U.K. LLP Aqu13 House 49-51 Blagrave Street Reading Berkshlre RG1 1PL Bankers Lloydg Bank plc 98 Vlclorla Street London SW1E 5JL
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 The Trustees present their rewrt and accounts for the year ended 31 July 2021. The accounts have been prepared in accordance with the accounting policÈs set out in note 2 to the accounts and comply with the Charity's governing document, the Companies Act 2006 and the Statement of Recommended Practice, "Accounting and Reporting by Charities"120151. The Charity was incorporated on 9 March 2006. ObJ•¢tlv¢$ and Actlvltl The charitable purpose of CVQO is lo advance the education and Irabning of youth and adult members of youth movements and schools lo enable them lo obtain vocatnal qualifications. CVQO is an accredited provider of vocational qualrfThlion5, dellvering educallonal opportunlties lo members of voluntary youth movements and schools. A high proportion of school age learners participating in CVQO-led programmes are not predlcted to achieve five GCSE8 8194 gr8de. Many learners are also enliiled lo free school meals and there is proven correlation between eligibility for free school me81s and lower academic altalnment. The vocational qualific81ions offered by CVQO provide these leamer8 Wth a valuable alternative roule lo achieving formal recognised qualrficalion8. Most CVQO learners receive their qu81rfic8tion8 completely free of charge through fundlng from the Education and Skills Funding Agency IESFAI or through CVQO'S partner3hlp funding agreements. Mo81 of those over 19 make a contrlbullon lo the cost of Ihelr quallf1caln, but this is well below th8 commercial rale that would be charged by colleges or unlversilles. Many of those who are over 19 who register for a CVQO-led ILM or City & Guilds adult qualific81ion have not achSeved any previous formal qualification. Soclal Impact In 2016 the Ministry of Defence IMOD), the Combined Cadet Force A88ocSallon and CVQO commissloned the Inslilule for Soclal Innovation and Impact IISIII al the Universlly of Northampton lo undertake longlludlnal re8earch prolecl. The four-year project was de3Igned lo help understand the soclal Impact ané return on investment Te3ulllng from the MOD'S expenditure on cadets and th& Cadet Expanslon Programme ICEP}, 88 well as the benefit8 of the qualifications provlded by CVQO. The final report wa8 pub118hed In May 2021 and Included 8 number of notable cauSionS which strongly support the ben8fits derived from participation in the programmes offered by CVQO.. P8rticipalion in the Cadet Forces and access lo vocational qualrficalions have significant positive impacts on young people, incmsing their performance al school and improving their employment and career pr05pecls. Gaining vocational qualifications through CVQO has particularly ¥ignifiGanl po$ltive Impacts on young people, particularty those that 5vffer economic and other disadvantage5. 11 was estimated that the lifetime value of qualifications for the 2018 - 2019 cohort of CVQO learners that could be dassified as disadvantaged Ic. 998 Indivldua191, Is in the region of £108.9 million. Thi¥ very signrfirant value is wrely for the disadvantaged cohort. The value of CVQO awards gained by cadets that are not disadvantaged could not be calculated, bul il 1$ very large Indeed. Cadet ForGo Adult Volunteors also benefit greaY in terms of ineaSed lrfetime earnings resulting from new qualifications gained through CVQO.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 In the 2018 - 2019 yeaf 489 CFAVS gained NVQ Level 2 and 3 quallficalions through CVQO. The value in future earnings to this cohort could be as much as £81,613 per indlvldual, or £38.3 million for the cohort. Leamers gaining qualffications through CVQO do so either free of charg8 or at subsidised rates. For those that that are disadvantaged. especially those disengaged from mainstream education, the88 qualiflcalions can be- literally- life.changing. CFAV8 that have no, or lew, qualifications can also change their career opportunities by gaSning vocation81 qualrflcalions as a result of their participation In the Cadet Forces. CVQO ha5 always been confident that both our leamers and 80ciety gained significant benefi18 from our programmes bul we have been d81ightéd lo sèe the scale of the return being quantified in this report. In the 2018-19 period most recently examlned by the Unlverslly of Northampton. CVQO'S Inrome was less than £4.5 million, whllsl the lrfellme beneflls lo the cohort gaining qualifications is conservatively expected lo be in the reglon of £150+ mlllh)n. The full report 1$ available al.. htt www.northam ton.ac.uk research research-Instltutes-and- centres instltute-for-soclal-lnnova n-and-im act social-lm act-resultin -from-ex endlture-on- cadets Coronavlrus dl•ruptlon We beIve that lo achieve the be81 oulGome fcf learners there Is no ¥ub¥lllule lo faCe-tf3¢e learnlng and the Interaction that it provide¥. Our delivery model therefore relled on Ihl8 methodology pdor lo the Coronavirus pandeml¢. Lockdown and $o¢ial distancing measures disrupted our activities because we were no longer able lo vl811 learners at their Cadet units or youth group events. Although our 51aff successfully lrans11ioned lo worklng from home where appropriate, we inevitably encountered challenges mainlainlng contact ¥th our learner5 and ensuring that they could continue lo complete their quallficatlon8. Rather than using our usual face-lTrface dellvery approach we Implemented a varlety of on-line webinars. video guides and live workshops lo ensure that learners were given opportunities lo complete their qualifications. This certalnly helped learners progress and we were able lo continue lo fulfil many of our objectives. However the re8lrlclions did mean that in some cases we were not able lo register as many new learners as we would have expected In normal circumstances and unfortunately we have not been able to run a number of the key presllglous events that celebrate Ihelr 8uccess. Obl•ctlv•s for the year For the year lo July 2021 our key objectives were.. Strong performance against existing long term learner targets and funding arrangements. Development of delivery models and virtual tralnlng methodology lo Improve knowledge transfer lo learners who we are unable lo meet face•to-face. Conlinualion of the Young Leader5 Award. Development of the Lion Award in schools.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 Ach5evement8 and performance Qualifications- Young People Despite the impact of the Coronavirus pandemic, CVQO was abl8 lo regisler 2,690 ESFA funded leamer5 in the year 12020.. 3,9791. Although this was b8low our annual target il wa5 signrficanlly higher than expected when il became clear that normal youth group activities would be curtailed for an extended period. The us8 of virtual learning technology was particularly effective in enabling us to support laarners with their qualifications, We were, however, very awaro that we did not just want lo become another online learning centre with the learners feeling they were having an extension of school. Thus we had lo make our sessions interesting and more interactive. Voluntary learning had lo be fun lo continue lo engage all our learner8. Overall. regislralions for learners under 18 lotalled 3,9g8, a decrease of 45% from last year'3 lolal of 7,221. In particular. we experienced a decrease in the number of BTEC Level 1 Teamwork and Personal Skills and ILM Young Leaders Award registrations. both of lch were signrficanuy impacted by social distancing measures bul which are anlicip8ted to increa8e 8gain in 2022. Quallflcatlons- Adults The number of new regi8lrallons for 8dull qualifications lotalled 398 {2020'. 4011. The qualrflcalions have continued lo attract interest despite the ongoing Coronavirus restrictions wth City & Guilds and the BTEC Level 3 Award in Education & Tralnlng in partlcular provlng popular. We are looking al developing the Level 4 Education & Trainlng qualiflcalion possibly to trlal next year. Schools and Ctwnmunlty Pn>Je¢ts The CVQO Llon Award Is de$lgned lo promote the development of 8-14 year olds through a varied programme of outdoor acllvllles, flr81 aid $klll$ and Soclal action projectg. Leamlng is designed to complement regular school work and Is facllltaled by CVQO in8lru¢tors lo support children's mental wellbelng, reslllence and Gharacler. Thi8 programme run$ al school premises and relies on school fundlng and charitable donallong. The prolonged disruption lo Schools caused by the Coronavlru8 P8ndemic prevented us from rolllng out the Award bul we were able lo run a number of pilot progr8mmes which were well received. We expect that 3ludenls' conllnued return 10 3chools 11 enable us to deliver tha Aw8rd to more18arner8 in the coming year. W•stmlnse•r Award For 16 con8eculive years CVQO had run the Weslmin8ler Award programme, whlch was deslgned to reward those CVQO learners who have not only excelled al their youth group commitmen18, bul gone over and above. helplng others around them and dI9playlng real altruism. Unfortunately the Coronavirus pandemic prevented us from holding the event in 2020 but we created 8 new formal for 2021 incorporating a Ilve, on-llne selecllon event and a Covld-safe, UK-based expedillon for the finalists in July. The Award was open to both 2020 and 2021'$ nomlnees and we were dellghled lo receive entrS from the Army Cadet Force, RAF Air Caéels, Marine So¢iely and Sea Cadets, Fire SeNlce Cadets, St John Ambulance Cadets, Police Cadets, Combined Cadet Force conts'ngenls within Schools and The Boys, Brigade. The finalists worked on a number of imaglnatlV8 and demanding volunteering projects with four p8rtner charities whilst on the expedition and gained an understanding of issues associated with humanitarian aid. climate change and conservation. Their 8iJcce8ses were celebrated further vAth their families, fnends and honoured guests during a lunch at the Hse of Loré8 in Septemb8r 2021.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2021 Graduation Ceremony CVQO'$ graduation ceremony normally lakes place annually al the historic buildings of RMA Sandhursl. The event allows u5 to recognise the hard work and tremendous support we receive each year from our many Cadet Force Adult Volunteer5 and Vocational Qualification Officers. Despite the challenges created by the Coronavirus pandemic, many volunteers successfully achieved their City & Guilds, ILM and BTEC qualrficalions but, unfortunately, social distancing guidelines and limits on gothenng sizes meant that we were not be able to hold the event in 2020. The recent easing of re81rictions did, however, enable us lo organise a ceremony in October 2021. Learners who would have been eligible to allend the previous year's cancelled event w8r8 invited along with the current year's graduates. The Charity's Chairman, The Lord Lingfield presided over the ceremony and the volunteers were joined by friends and family lo celebrate their 8ucce88. Futur• Pl¥n• The Chief Executive and the Executive Team have identified the followlng as prlorilwd for th& coming year.. Strong performance 8g8in818xisling long term learner targets and funding arrangements. Development of dellvery models and virtual training methodology lo improve knowledg8 transfer to learners who we a unable lo meet face-to-lace. Expansion of th6 Lion Award in schools. Increased reglslrations from non-MOD youth (Kgan58allon8. 8tructur•, gov•rnan¢• and manag•m•nt The Charlty 8 company limiled by gu8ranl8e and not havlng 8 8hare capllal Sn accordance wllh the Companies Act 2006. The Tnjslees. who are also the dlreclor8 for the purpose of company law, who served during the year, wer8.. The Lord Lin9field Ki DLIII DL Ms Olga Bollomley MIVA MIOD Mr Keith Baldwln BSclEngl ACGI MSC DIC C Eng MIET FIBC Mr John Dowiy TD MA ACA Professor Martin Do81 CBE Ms Lesley Davies OBE Professor Simon Denny BA MA PhD. Holder of the Queen'8 Award for Enterprise Promotlon. Truslees aro recnjiled 1 a varloly of ways and from a rang8 of sources. TnJslee80 have be8nappoinled bringwlh them a wealth of educational. youth, military and financial knovleége. Tru8te8S are elecled for an Inltial term of three years and al that polnt are el[ble to seek reolectlon for a further three years. The Chairman has the option to exter any Tru51ee's term for a further one or two years, so as lo avoid an exodus atanyone lime. None of the Trustees has any beneficial interest in the company. Al of the Trustees are members of the ompany and guarantee lo contribute £1 in the event of a winding up. On the retirement of the Chairman it will be the responsibility of the Trustees lo elect a new Chairman from amongst them.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2021 Once elected, newTwslees are given an induction pack and invited lo attend a training day. The Trustees have delegated 8ulhorily for management of the Charity lo the Chlef Executive and the Exeujtlve Team. Koy Manag•mont Romunoratlon The Oireclors conslder that the Board of Dlreclors, who are the CharfV8 Trustees, and th8 Executive Team comprise the key management personnel of the company In charge of dir8cling and controlling, running and operating the organisatn on a d8y-tcpday basi8. CVQO'S remuneration policy and procedures for key management personnel are as follows.. The Board18 respon81ble for selllng the Chief Executive's remuneration., The Chief Executive sets the s8larl88 of the other members of th8 Exacullve Team.. and, Pay is r8viewed at least annually. Stat•m•nt of Tru8t•8•' r••ponilbllltl•• The Trustees (who are also directors of CVQO for the purp08es of company lawl are responsible for preparing the Tru8lees' Report and the financial slalemenl8 in accordance with applicable law and United Kingdom Generally Accepted Accounllng Practic8 (United Kingdom Accounting Standards), Cornpany law requires the Trustees lo prepare financial ¥talements for each financial year. Under company law the Trusleg¥ musl not approve the financlal slalernents unles5 they are satisfied that they give 8 true and fair view of the stale of affaiis of the charitable company and of the incorning resources and applicalbn of resources, including the income and expenditure, of the charllable company for that period. In preparlng these financial 51alernenls, the Trustees are required lo.. • $818cl suitable accounling pollci8s and Ihen apply them nsIStenI1y,. observe the method8 and principles in the charit SORP-, make judgements and estimates that are reasonable and prudent-, 81al8 whether applicable UK accounting standards hav8 been followed. sublecl to any malerlal departures disclosed and &xplained in the financial slalem8nls', and prepare the financial statemen18 on the going concern basis unle88 rt18 Inappropriate to pre8ume that the charitabla company wlll contSnue In buslness. The Trustees are msponsible for keeping adeqvale accounting records that are sufficient lo show and explain the charitable company's transactions, disdose with reasonable accuracy at any lime the financial position of the charitable company and enable them lo en8ure that the flnancial statements coffjply with the Companies Act 2006, the Charities and Trustee Investment IScolland} Act 2005, the Charities Accounts (Scollandl Regulations 2006 las amended) and the provislons of the Ch8rily's constilulion. They are 8180 responsible for safeguarding the assets of the Charity and hence for taklng r8a8on8bl8 steps for Ihe prevention and detection of fraud and other irregularilles. Rlth Managoment CVQO has introduced a formal risk management process lo assess business risks and it has implemented risk management slralegies. Thi5 has involved idenlffjng th6 types of risks the Charity faGe5, prioritising them in terms of potential impact and likelihood of OGGurrence and identifying means of miligaling the risk5. The Chariltys internal controls have also been reassessed lo onsure that Ihoy continue to minimise th8 risk of fraud and are in line with the guidelines established and recommended by the Charity Commission.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 The risks are formally revwed al Trustee meetings that are held regularly throughout the year. The Chief Executive has produced a Business Disaster Recovery Plan which has been lesled and continues to provide effective cover to the Charity in the event of a signrficanl incident wth potentially damaging impact on the Charity. Prlnclpal Rl8kJ Corornvlrus Pandamlc Risk.. Future Govemmenl led pandemlc re5ponse5 may restrict access lo CVQO office locations and prevent 5tsff from belng able to deliver vwational qualrfications in the face-ttrf8ce manner in which they were de¥igned. Reduced conlaGt wllh potenllal learner¥ may also have an effect on the number of new regislralions that can be achieved in future periods. More extreme lockdown measures could therefore have 8 snIfiCant impact on our ability lo recruit, deliver and administer the volume of learners expected by our k&y funder8 8nd limit our scope to malntaln and Improve the quallty expected by Of81ed. Millgalion.. All Staff have been provlded with equipment and training to be able to work from home and mealings can be hèld remotely using vldeo-conferencing technology. When allendance at the office Is required, slrlcl social dlslanclng and hygiene worklng pracllces are followed. CVQO has been developing Its educatlonal resoufces and delivery model $0 that inleraclion wllh learners can Increasingly be achieved wllhoul the need for face-lo-fa¢e contact. Good progr¢8s has been made and further Investment in our Virtual Learning Environment is planned in the coming year. We work closely vAth the MOD lo ensure th81 we can reach as many potential learners as possib16 and adhere lo thelr CoronavSrus restrl¢llon8 80 that w8 can contsnue to deliver our key qualification8. Fln•n¢l41 Risk.. A large proportion of CVQO's income derives from a sinde fundlng arrangement th the Education and Skills Funding Agency IESFAI. If IhSs contract were lerminal8d or not renewed there would be 8 very slgnificanl flnancial impact on the Charity. Mitigation.. Maintain good relations with the funders, Sdentrfy other Irbcome 8ource8, ensure full adhenCe lo the temis of the agreement, meet or exceed performance lafgels and promote the value of the qualifications provlded and th8 benefits to the learners who achieve them. Conllnue lo be Of81ed graded good or above. EdatIonal Envlronm?nt Rlsk.. As Government poll¢y on education evolves there Is a rlsk that Ihe CulnI sel of voc81ional qualilicalions that CVQO offer fall outside future lunding specificallons. Miligalion.. CVQO continually monitors the education environment and would react quickly lo an announcement of any future changes in funding requirements and would seek lo develop new vocational qualifications that continue lo deliver the benefits to young people provided by our present qualifications and 8180 to meet any new requiremen18 of the fundlng bodies. Chlld Safryuardlng Rlsk.. CVQO 1$ committed to preventing any harm to chlldren caused by Its actlvllles. The CharSlY8 putalion could be signrficantly damaged if it fails to safeguard learners engaged in its quallficatlons. Safety and care of learners 15 a high Of5ted requirement.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 Miligatioll.. All staff are trained on child safeguarding and are provided with a clear and secure fiamework for ensuring that all children and young people engageé in CVQO activities 8re protected from hami. A sub•commillee of the Trustees, Board has been established lo oversee safeguarding mallers and lo ensure that the risk is monitored, reported on and any incidents investigated and action taken when necessary. Wher8 appropriate we work with the cadet forces 10 8nsure integrity of safeguarding even where CVQO is not directly responsible. Data Securlty Risk.. TPE rlsk that Ihe ChariW5 data is stolen, leaked, lost or held lo ransom as a result of an attack through the inlernel. This could result in loss of reputation, claims against CVQO, inlerruplion lo ts operatlons or any combination of these. Miligallon.. cvao ha5 invested in strong IT security systems including firewall and anti-virus software and has adopted good data protection practice8 that provide an appropriate level of defence against cyber- allack. An experienced Data Protection Officer ha8 been appointed and external expertise ulilised lo perform Iralning, data audits and to implem8nl GDPR policies. All members of $18ff have receiv Iralnlng wllh follow up where necessary. Compll•nc• Ri8k,' Data Return Compliance Failure, There is a signKicanl volume of data that musl be provided quarterly lo key funders and il is important Ihal Ihege returns of data are submitted on a timely basis and wlh a very hlgh degree of accuracy. Persislenl non-compliance could jeopardise CVQO'S relationship with ils funders. Mlligatlon.. En8ur8 high 81andards of data varrficallon and valldation occur before submlgslon of the returns and that the abillty lo perform these process8s 1$ held by a number of employees. All returns are overseon by the Execullve Team. Statement of Publlc Beneflt CVQO has been operating as an independent Charity and Company Limited by Guarantee for fifte8n year$. The Trustees confirm that they have complied with the duly in Section 17151 of the Charities Act 2011, 10 have due regard lo the guidance issued by the Charity Commission on public benefit. This is carrK8d out through the Objects and Powers of the organisalion. Flnanclal R•vithv The Charity's surplus for the year lo 31 July 2021 was £211,00012020.. £1,131,000). The outcome was affected by a decline in regislralion volumes due lo the Coronaviru5 pandernic and a r0Very in the value of our investment portfolio. The variance to the prlor year was largely due lo a one-off ilern which was recorded as income last year. Income for the period wa5 £3,806,000 12020.. £5,383,000). In the prior year, our income included £1,234,000 which had previously been held as deferred income., this was a one-time adjustment following a change to it5 classrficalion from restricted lo unrestricted funds. In addition. the prior year included £384,000 relating lo th8 final period of LIBOR funded registration fees. These items did not repeal in the curr8nl year although designated funds have been sel aside lo continue to support the actsvilies they previously funded.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 The ESFA continues to provide the ChariW5 Gore grant funding for EnglaTrJ of £3,500,000 12020-. £3,500,000). This funding has been secured al the same level for 2021122. In addition to government department grant funding, CVQO draws charitable funding from a raftge of sources including charitablé trusts and the cadet organisations. Additional funding in the year was £44,000 12020.. £38,000) which helped to cover those not eligible for ESFA grant funding and to allow CVQO to deliver qualifications lo adults at subsidised rates. We were also very grateful lo receive a legacy of £20,000 from the estate of a CVQO supporter. A 8mall numb8r of staff remained fudoughed In the earty part of the year bul we were eSSed lo b8 able to reinsl8le them lo their roles during the period and although we made clalms for grants under the government'8 Coronavirus Job Retention Schem8 they were lower than last year at £20.000 12020.. £30.0001. Income from cash deposS18 vtas lower than In th8 previous year due to falling Intere81 rates bul the investment portlollo performed well and apprecialeé in value {Inrlu8lve of relnvested income and nel of charges) by £184,000, reversing the losses experienced in the prlor ye?r12020'. depreciallon of £85.0001. The year-end valuation was £1,163,00012020.' £979,000). Expendllure decreased from £4,136,00010 £3,751,000. Thi5 was primarily due lo th6 ongoing effect of the Coronavlrus pandemic re81rlcllons which reduced expendllure on regislralion fees, travel costs and other qualificallon dellvery c08ts. The lower expenditure was partially off8el by the recognilion of a provlslon fc property dilapldatlon cos18 al the Charity's head office building. Total funds al 31 July 2021 were £3,681,000 12020. £3,470,000). Unrestricted funds ¢omprised Ihe majorlly of the balance al £3,662.000 12020,. £3.468,1)001 of which £1,191,00012020.' £1,391,000) was designaleé for MOD Cadet and Adult qU81ifications, and qualifbcations in Scolland. Restrlcled funds lotallod £19.00012020'. £2,000). RMorv•• Poll¢y The Trustees, poliw on reserves strlkeg a balance between applw'ng funds received lo our charitable purposes and rnainlaining a level of reserves which would allow the Charity lo deal effectively and r85POll5ibly with the financial challenge thal woulé result from the loss of a major funding stream, The Trustees consider il appropriate lo hold unrestricted reserves, excluding desSgnaled reserves, of al lea51 the level that would ensure that studen15, already registered, would be able lo complete their courses. This would ensure that no Student already registered wlh us would be disadvantaged in the event of such a loss of funding. The policy is reviewed annually. Reserves can also be applled lo funding new or potential projects where an initial investment is necessary to develop new sustainable areas of 8cllvlty or lo identify whether or not such sustainable activities can be developed. The balance in unreslricled reseNe$. excfuding deslgnaled reserves. al 31 July 2021 was £2,471,000 {2020'. £2,077,0001- The Trustees consider Ihis lo be a reasonable level of reserves and wlll be subject lo regular review. After deducting the carrwng value of langSble fixed assets held for the Charity's own use there were free reserves as defined by the Charity Commission of £2,395,00012020, £1,987.0001. The balance held in reslricled funds al 31 July 2021 was £19,(KIO12020.. £2.000} represents the funding received for spectfic cohorts of students, be that defined by geographic l¢JcalKin, rourse tille or specific student needs, that has not yet been expended. These resgrve¥ wll be spent in support of the relevant students in future periods. Designated funds al 31 July 2021 were £1,191,00012020.' £1,391,000). Of thi5 sum £1.135,000 designated by the Trustees for the support and delivery of cadet and adult volunteer voralional qualifications and the remaining £56,000 has been designated lo fund qualrficalions in Sand.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2021 Invostmwts The Trustees have the authority conferred by the memorandum and articles tsf association to Snvest 89 they See fil and lo delegate the management of investments lo a financial expert. CVQO is not dependent on investment income lo undertake ils work and is relatively risk adverse but consider5 11 appropriate to invest a proportion of its available funds in longer term investments in order lo maintain capital alld achieve a higher return than can be r&alised with bank deposits. Its investment objective is lo invest globally to maintain the capital value, at least in line th inflation. as measured by the Consumer Prlces Index ICPII with a largel6d total rèturn of CPI +2.SOA over a rolling three year period whilst minimlsing rl¥k exp08ure and investment volatility. CVQO ha5 appointed Brewin Dolphln to manage a portfolio of equity and fixed-interest Inveslmenls. The Trustees instructed the investment manager that no direct investment (other than Treasury Stock) should repre58nl more than five percent of the over811 value of the funds and that no investment into a fund holdlng underfying investments should represent more than len percent of the overall value of the funds when purchased. In addition inv851men13 should not b8 made In markets where m8rkelabilily Is Ilmiled, or directly in high risk inveslmenls, structured produc15, hedge fund8 or funds of hedge fund8. The inveslmenl manager reports lo the Trustees quarterly and the Charity reviews Ils investment slrBlegy annually. CVQO originally placed £1,000,000 with Brewin Dolphln Sn January 2019. AI 31 July 2021 the value of the investments was £1,163,000 (2019.. £979,000) rePsentIng 8 lotsl return of 16.3% compared lo the largel of 11.3%. Fundrnlslng Practlce• CVQO'S funds derlve prlncSpally from slatulory an¢J government a98ncle8 bul It does raise Small 8um5 fr(¥n Trusts and Foundallon8 as well for specific purposes. Wg are also fortunate lo receive donations fIn individuals. p8rticul8rly from Indlviduals who have galned a CVQO vocallonal quallflcallon or those that know them and wish lo show Ihelr appreciation. CVQO1s not set up lo eng898 in large scale fund-raising livilies like mass mailings, telephone fund-raising or door-to.door campaigns nor do we employ a professional fund-ralser or engage th8 services of any Ihird-party organisallons lo help raise funds. To Ihls end. we have not con81dered il necessary or appropdale lo sign up lo any regulatory code of fundraising practice. We have not recelved any complaints about any aspect of our fund-raislng. CVQO has a stron9 ethos ol re8pecl for the independence and dignity of ils learners and would not countenance any conduct or 8¢tSvllies that undermined Ihls. Provl•lon of Informatlon to audltors Insofar as each of the directors of the Charity al the dale of approval of this report Is aware there is no relevant audit inlormalion linformalion needed by the Charity's audllor in connection with preparin9 the audit report) of whlch the Charitys auditor is unaware. Each director has taken all of the sleps that they should have taken as a dlrector In order to make themselves awar8 of any relevant audf( informallon and lo es18blish that the Charitys auditor is aware of that information. 10
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021 Audltors The Auditors. Crowe U.K. LLP will be proposed in accordance with section 485 of the Companies Act 2006. Approved by the Board of Directors and signad on their behalf by:_ The Lord Lingfield KT DLitt DL Chalrman MrJo Hono nDo aryT TD MA ACA ureT Dated. 10 QOLI Dated: IL 7014
Crowe U.L LLP Crowe ChorteredAccountonrs Member of Crowe Global Aqvls House 451878raYe Street Re3dln8 erk5hire RGI IPL, UK Tel +44101118 959 7222 Fax +44101118 958 4640 www,crowe.co.uk INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED Oplnlon We have audlled Ih8financial statemen18 of CVQO Llmlled for the year ended 31 July 2021 which comprise the Statement of Flnancial Aclivi118s. Balance Sheet, Statement of cash flows and note8 to the financial $latements. Including a summary of signifan1 accounting policies. The financlal reportlng framework that has been applied in their preparation 15 applicable law and Unlled Kingdom Accounllng Standards, induding Financial Reporting Standard 102 The Financial Reportlng Standar(1 applicable Sn the UK arKJ Republic of Ireland Iunlled Kingdom Generally Accepted Accounting PraGIIGe)- In our opinion the financial slalemenls.. glve a true and fair view of the state of the charllable company's affalryJ as at 31 July 2021 and of it8 incoming resources and applicalK)n of re80urces, Includlng ils income 8nd expenditure for the year then ended., have been prop8rly preparod in a¢cordan¢e with Unlled Klngdom Generally Accepted Accounting Practice., and have been prepared In accordance wllh the requiremen18 of the Compan[88 Act 2008. the Charllles and Trustee Inveslrnenl (Sand) Acl 2t))5 an¢J Regulallon 8 of the Chartli88 Accounts (Scotland) Regulatlons 2006. Ba•1• for oplnlon We condu¢led our audit in accordance wSlh Inlemational Standard8 on Auditing (UK) {ISAs (UK}l and applicable law. Our r8sponsibililies under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We ale indBpendenl of the charitable company in accordance with th6 ethical requlremenls that are relevant lo our audit of the financial slalements in th8 UK, including the FRC'S Ethlcal Siandard, and we have fulfilled our other ethical responsibilities in accordance with Ihese requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide 8 basis for our oplnion. Con¢lu•lons r•latlng Io golng concem In audiling the financial slatemenls, we have concluded that the Iruslees, use of the going concern ba818 of accounllng In the preparation of the financial statements is appropriala. Based on the work we have performed, we have not Identified any materlal Uncertaint relatlng lo even15 or conditions that. indivirjually or collectively, may c8$1 signrficanl doubl on the charltable company's abillty lo continue as a going concern for a period of at least Iwelve months from when the financial statements are aulhorised for issue. Our responsibilitie¥ and the SponSIbl1111eS of the trustees vlth respect to going concem are described in the relevant sections of thi$ report. CV K LLPtyilunii& liDbli¢y Er4kndlrdW?w1Ik r4iitadnwniyUL3D7N3. Ludwt Ilill, lththnkC4M7JW. A hil thE LLP,) meJnbEn o I17•bIe * Ihe Ikc AEY All uwlveJKy ]INrI Ike fTh tt¢ litU4d JD UK tryt I)IverYPrlc1TAocn CimUK EthllJEmbEt 1[1. CroweU.K. 12
Crowe INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED (CONTINUED) Other Inforniatlon The Iru5tees are responslble for tho other Infomiallon Gontained wilhln the annual report. Tha other informalDn comprises the information Sncluded in the annual report, other than the financial statements and our audilorfs report Ih8reon, Our opinion on the financial slalemenls does not ¢ov&r the other information and, except lo the extent olherwi¥e exFlicitly stated In our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other Informallon and, In dolng so, consSder whether the other information 18 materially inconslslenl wllh the financlal statements or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we Identify such material Inconslslencles or apparent material mis8lalements, we are required lo delemilne whether this glves rlse lo a material misslalemenl in the financial statements themselves. If, based on the work we have performed, we conclude Ihal there 18 material mlsslatemenl of Ihls other infom18tlon, we are required lo report th81 fact. We have nolhlng to report in th15 fegard. Oplnlons on oth•r matt•rn pr•Krfb•d by th• Compan1 Act 2006 In our opinlon based on the work undèrtaken in the cour96 of our audlt the information given In the Iruslees. report, lch Sncludes the dlrector8' report prepared for the Purposes of company law, for the financial year for which the flnanclal 8talem8nls are prepared is consislenl with the financial stalemenls. and the dlr8clor8' report included wllhln the Iruslees, report have been prepared in accordanc6 wllh applicable legal requirements. Matters on whlch wo ar• roqulr•d to roport by •xcoptlon In light of the kno¥edge and understanding of tho charitable company and its envlronrnenl obtsined in the course of the audit, we have not identifd material mis5talemenls in the directors, report induded within the Irustee8' reFKIrt, We have nothlng lo report In respect of the followSng matters In rdation to whlch the Companies Act 2006 ané Ihe Charities Accounlg IScolland} Regulations 2006 require us lo report lo you If. In our opinion.. adequate and proper accounllng records have not been kept,. or the financial slalemenls are not in agreement with the accounting recor(is and retums., or certain disclosures of Iru5tees' remuneration specified by law are not rnade., or we have not received all the informallon and explanations we requlre for our audit Rosponslbllltle8 of tru8teo8 As explained more fully In the trustees, responsibilities statement on page 8 the trustees (who are also the dSrectors of the charllable company for the purpose8 of company lawl are responsible for the preparation of the financial statements and for bein9 sallsfied that they glve a true and fair view, and for such internal control a9 the trnstees determine Is necessary lo enable the preparaOn of flnancial statements that are free from malwial misslalemenl. whether ¢Jue to fraud or error. 13
Crowe INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED (CONTINUED) In praparing th8 financial slalemen15, the Irusleos are responsible for assessSng the ¢harilable companls ability lo continue a5 a going concern, disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Irusle8s either intend lo liquidate the tharilable company or lo cease operations, or have no r8alislic alternative bul lo do so. Audltoe• r••pon•lbllltles for the audlt of th• flnanclal •tatem•nt• We have been appointed as auditor under section 4411Mcl of the Charilie8 and Trustee Invaslment {ScoUand} Act 2005 and under the Companies Act 2008 and report in accordancè with the Acts and relevant regulation8 made or having effect Ihereunder. Our obleclives are lo obtain reasonable assurance about whether the financSal slalements as a whole are free from malerlal mlsslalement. whether due lo fraud or error. and 1018sue an audllor's report that includes our opinion. Reasonable assurance Is a hlgh level of assurance, bul is nol a guarantee that an audit onducled in accordance with ISAS IUKI will always delect a material misstalemenl when il exists. Misstalemenls can arlse from fraud or error and ar& considered material if, individually or in the aggregate, Ih8y could reasonably be expected to Influence the e¢onomlc decisions of users taken on the basis of Ihege flnanclal stalemenls. Details of the exlenl lo whlch the audll was consldered capable of detecting Irragularilies, inc4uding fraud and non-compliance wllh laws and regulations are sel out below. A further descripllon of our responslbSllties for the audll of the financial slalements Is located on Ihe Flnanclal Reportlng Councll's web8lle al,. www.frc.or audit rsres This description forms part of our audltor'$ report. Ext•nt to whlch th• audlt wa8 ¢on81d•r•d capabl• of d•t•ctlng Irr•gularltle•, In¢ludlng fraud Irregulari1188, Sncluding fraud, are Instanc88 of non-compllance with lawB and regulallon8. We Idenllfled and 89gessed the rlsks of materlal mlsslalemenl of the financlal slalemenls from iffegularllle5, whether due lo fraud or error, and dlscussed Ih88e between our audit team members. We then de8ign8d and perfomied audit proCedUS responsive lo those rlsks. Includlng oblainlng audit evldence sufficient and appropn81e lo provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks wlthln whlch the charltable company OP8rates, focusing on those law8 and regulations that have a direct effect on the delerminalion of material amounts and disclosures in the financial slalements. The laws and regulations we considered in Ihls context were the Companles Act 2006, Ihe Charities Act 2011 and The Charities and Trus166 Investment {Scolland} Act 2005 together wlth the Charities SORP {FRS 1021. We assessed the required compliance wlth these laws an¢J regulallons as part of our audll [Kocedur on the related fin8ncial slalement items. In addition, we considered provisions of other laws and regulations that do not have a direcl effect on the flnancial slalemenls but compliance with lch might be fundamental lo the ¢harilable company's 8bilily lo operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context were General Data Protectlng Regulallons and Safeguardlng of young people and vulnerable adults. Auditing standards limit the required audit procedures to Identify nonompli8n¢e wth these laws and regulations lo enquiry of th8 Trustees and other management and inspection of regulatory al legal correspondence, rf any. 14
, C rowe
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED (CONTINUED)
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and income, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non compliance with all laws and regulations.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees 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, the charitable company's members as a body and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Alastair Lyon
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor
Reading
Dated: 12 November 2021
15
CVQO LIMITED STATEMENT OF FINANCIAL ACTIVITIES AS AT 31 JULY 2021 COMPANY NUMBER 5736932 Unrestrlcled De9ignated Re8trlcted funds funds Funds Total 2021 Total 2020 Notes INCOME AND ENDOWMENTS FROM: Donations and legaci88 Charitable aclivili88 Other Iradlng arllvilles Income from investments Other income 8.605 3,500.000 177,852 43,342 19,880 37.500 40,105 18.772 3,518.772 177,852 43,342 19,880 22,325 5.134.710 129.569 62,350 34,482 Tot•1 Incomlng re•ourco• EXPENDITURE ON: Expenditure on raising funds Investmènt manager expenses Exp8ndilure on charitable activities 7,717 7,717 T,202 3,803.297 100,258 39.472 3,743.027 4, 128,880 Total r•8ourc•s •xwndod Net galns/llossesl on Investments 13 155323 116 781 Net in¢omel(•Jtpendlture) 2g3,988 (100.2581 16.800 210,530 1,130,593 Transfer botween funds NET MOVEMENT IN FUNDS 393,988 1200,2581 16,800 210,530 1.130,593 Total funds brought fonvard Total funds carried fovward 21 All of the above results are derived from continuing aclivi118s. The Charity has no other re¢ognised gain8 and losses other than Ih05e slated above. The notes on pages 19 to 31 fcffm part of these financial statements. 16
CVQO LIMITED BALANCE SHEET AS AT 31 JULY 2021 COMPANY NUMBER 5736932 2021 2020 No105 FIXED ASSETS Tangible assets Inveslmants 12 13 75,626 1162 861 89,672 97 1,238,487 1.068.461 CURRENT ASSETS Debtors Cash al bank and In hand Short tem Inv88tment$ 14 59.889 2,536.966 131.808 2,296. 742 2,923,721 2,751.326 CREDITORS.. amounts falllng duè within oneyear NET CURRENT ASSETS TOTAL ASSEfs LE85 CURRENT LIABILITIES 3.818,899 3,470,369 Provisions 26 NET ASSETS FUNDS Restricted funds 19,200 2,400 Unro8trlctedfund•: Dosignaled funds 19 1,191,006 1,391.264 General funds 2,470.693 2,076. 705 21 Approv8d and authorised for issue by the Board of Directors on Ics 20LI behall by'.- and sign8d on ils The Lord Lingfield KT DLitt DL Tru$i8e Mr John Trustee DMAACA Tho notes on pages 19 to 31 fom part of these financlal statements. 17
CVQO LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2021 2021 2020 Not89 Cash flow8 from opwatlng actlvltlo8'. N•t ¢h pr0vidodllusj by op•rating a¢tiviti•# 17 263,126 (554,640) Net cash US In In¥tIng a¢tlviti08 Purchase of tanglble asset8 Investment Income Purchase of Inveslmonls {induding r&invesled dividends) Bank Inter881 recelvable Purchase of short term inve8tm8nls (33.4051 35,803 (35,930) 41.323 (28,7491 7,539 (31.485) 21,021 Net u••d In Inv••tlng aGtlvltlo1 Change In c88h and cash equSvalont8 In tho reportlng porlod 56 N•t Fund¥ r•con¢lllatlon: Net funds al 1th August Increasel(decr6ase) in cash in the year 2,296,742 2,861,390 N•t fund• at 31•1 July Analys1• of ¢a•h and cuh oqulvalonts Ca8h in hand The notes on pag88 19 to 31 fomi part of these financial Statements. 18
CVQO Llmlted NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 COMPANY INFORMATION The principal activity of Ihe Charity is lo advance the education and training of youth and adult members of youth movements and in schools to enable them lo obtain vocational qualifications. The Chanly Iregislered number 1115234 and charity number 057369321 is incorporated and domiciled in the UK. The address of the registered office 18 3 Archipelago, Lyon Way, Camberley, Surrgy, GU16 7ER. ACCOUNTING POUCIES 8a•h of pr•p•ratlon The financial sialements h8ve been prepared In accordance wlh Accounting and Reporting by Charities.. Slalemenl of Recomfflended Practice applicable lo charities preparing Ihair account8 in accordance with the Financlal Reporting Standard applicable in the UK and Republic of Irèland IFRS 1021 leffecllve 1 January 2015) - Charities SORP IFRS 1021, the Financial Reporting Standard appllcable In the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Charlty meets the definllion of a publlc benefit entity under FRS 102. Assets and liabilitie8 a Inlllally recognised at historical cost or transaction value unles8 otherwise 8tat•d in the relevant accounting pollcy note. Golng concern The Tru51ees have considered a range of scenarios that may result from prolonged disruption ¢au$ed by the Coronavirus pandemic and other ri8ks. They have assessed Ihe effect on CVQO Llmiled's cash flow and reserves and consider that there is a reasonable expectation that the Charity ha8 adequate resources lo continue in operational existence for Ihe foreseeable future. For this reason, the Tru¥tees continue lo adopl the 'going concern. basis in preparing the accounts. bl Incomo and d0v•ll)0nt All Income 18 recognlsed once the Charlty has enlillement to the Income. 11 Is probable that the Income wlll be rec8ived and the amount of income receivable can be measured reli8bly. Donations are rerAJonised tho Charily h88 been r¥)lffled In wrillng of b)ih lh8 amnI 8nd settlement dale. In the event Ihal a donation is subject lo conditions that require a levd of performance before the CharY is enllued lo the funds. the IrMe L8 deferred and not recognised until either th058 condilions a fully mel, or the fuffilmenl of those fAindillons 18 whdly within the control of the Charrty and ills probable ihal Itt8 condition8 will be fUilled in the rewllng pthod. Grant Income 18 Included when the related condition for legal enlillement lo the granl has been met. Resources received relating to a future period will be deferred lo the exlenl Ihal they do not relate lo the ¢urrenl accounting period such as where grants have been made for a sp8crfIc numb8r of learners and not all learrws have been regislered within the year. Durlng the year the Charity received £19.880 (2020.. £29,672) from the UK Government under the Coronavirus Job Retention Scheme.
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 Expendlturo Liats'lllies are recognised 88 expendrture as 500n as Iherels a legal or o)n$trudveobligalion commttling the Charity lo that axpendrture, Il is probable that sewement S11 be r8qulred and the amount of the obligation can ba measured reliably. Al exp8fKliture is accounted fty on an accruals b8SiS. Costs relats'ng to charitablo activ83 indude all costs Itxurred In the dlrecl furtherance ofthe Charitys objectives. Irrecovtrable VAT Is charyed against the expenditure he*Jing for whlch 6t was nrred. d) T•nglble flxed amets and deprnclatlon Tangible fixed assets are staled at co¥t le58 depredation. Oepreclation 19 provided al r8le8 calculated lo write off the cost less eslimaled residual value of each asset over Ils expected u88ful lrfe, as follow8.. Building Improvements Computer Equipment Fixtures. fillings & equipmenl L8ngth of the remaining lease temi 33.33% Straight Line Method 25% Straight Line Method Items under £250 are not capllalised. Cash and ¢••h •qulval?nt• Cash 18 represented by cash in hand and deposlls Wlth finan¢lal In$lllullon8 repayable wilhoul penalty on notice of not more than 24 h¢r8. Cash equlvalenls are highly liquid inve8lmenls that mature In no more than three month3 from the dale of a¢qulsltlon and that are readily convertible to known 8mounls of cash with insignfflcant rl8k of change In value. Short t•rm InVlmont• Short temi investments include cash investod in depo$lt accounts accessible within >12 months. Ll•t•d InvMlment• Investments are a form of ba5iG financial instrument and are initially recorded al their transaction Value and subsequently valued at closing mid-market value at the Balance Sheet date. Arw gain or on revaluation ig taken to the Statement of Financial ActNities. Onty external injections of cash and withdrawals of cash from the inveslment portrolio are treated as additions and di5Fwals Wlthin Note 13. h) Financlal in•trum•nl• Tho Charity holds only financial assets and flnancial liabilities of a kind that qualrfy as basi¢ financial in51rumenls. Basic financial Instruments include debtors and creditors. Debtor5 an creditors are initially recognised at transaction value and subsequently measured al amorti59d cosl. Note 22 provides more information on financial instruments where future cash flows are anliclpated. with financial assets referring lo fixed a55el investments and debtor balances excluding prepayments, and financial liabili118s referring to all ¢redilor balances excluding deferred income and other taxation and SOGial Security. 20
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 Accumulated fund8 General funds are funds whlch can be used in accordance with the charitable objects at the dlscrelion of the Trustees. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uges of the r8slricled funds are 8et out in the notes lo the accounts. Designated funds comprise funds which have been set aside al the discretion of th8 Trustees for specrfic purpose5. The purposes and uses of the designated funds are sel out in thè notes lo the accounts. i) Loa•lng and hlr• pureho0 commltmonts Rentals payable under operating leases afe charged again81 Income on a slralghl line basi8 over the period of the lease. k) Pen•lon• The Charity operates two defined contribution pension schem85. Contributions are charged In the accounts as they become payable in aGcordance wSlh the rule¥ of the scheme. Prov181on• for Il•bllltle• Provisions ar8 recogni5ed when the enllty has an obllgallon al tho reportlng dale 88 a result of past evenl,11 Is probable that the enllty wlll be required lo transfer en¢onomlc benefits in settlement and the amount of the obligallon can be 881imated reliably. Provlslons affj Inlllally measured at the best esllmale of the 8mounl requlred to sellle the obllgalion ané are reviewed al each reporting dale. Any aéju81ments lo reflect th8 current be81 e8tlmale are recognised in the Statement of Financial Activitses. SIGNIFICANT JUDGEMENTS ANO ESTIMATES In the application of th8 CharllV8 accounting policies the Tru51ee8 are requlred lo make ludgemenls, estimates and assumpllons about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlwng assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may drffer from these estimates. The estimates and underlying as¥umplion¥ are reviewed gn an on-going ba¥is. Revisions lo accounting estimates are recognised in the period in which the estimate iy revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the currant and future periods. The Trustees consider that there are no material judgamenls In applylng accounllng Pe8 or key sources of 881imallon uncertalnty. 21
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 DONATIONS Unrestrlcted D•slgnat•d R•strl¢t funds funds funds Total 2021 Tot81 2020 £000 Legacies Grants rec8ivable for core activities Donations and gK18 20,000 20,000 8,000 17,500 25,000 22,000 325 Grants recelvable for core acllvities,. Grant (Scotlandl Adult contribution - ATC Adult contrSbution - SCC 3,500 14.000 14,QOO 25 500 JIQQQ INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unr•8trlct•d D•slgnatod R•8trlcted fund• lund• fund8 Total 2021 Total 2020 Contract Fundlng Other Reslrlcted MOD Cade18 and Adults 3.500,000 3,600,000 3,,000 18,772 400.355 18,772 Total 2021 Total 2020 Contracts Funding relates to.. Educalkjn and Skills Fundlng Agency contract Includad within incom& rol81ing lo Other Reslncted 8re Ihe following granls LIBOR Fund generallon - Restrlcted Devolved Nations Fund generation- Restred Scouand Fund generation- ReStred Northern Ireland 383,695 7,521 7,000 7,000 22
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 INVESTMENT INCOME Total 2021 Total 2020 Income from Inve8tments Inter681 receivable 35,803 41,323 21 OTHER INCOMING RESOURCES Totsl 2021 Tolal 2020 Coronavlrus Job Retention Scheme grant Other Income 19,880 29,672 44a2 TOTAL RESOURCES EXPENDED Staff Co•ts D•pr•clatlon Oth•r ¢o•ts Total 2021 Total 2020 Investment manager expenges Charltablfr actlvltS0• Education & tralning Actlvilies undartaken dlreclly 7,717 7,717 7,202 2087915 Ll 74 1607 681 LIL27 Govérnance costs includ8 costs of £12,000 (2020.. £11,550) for audit fe88. 23
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES UnrestnGted funds Design8ted funds Reslri¢ted Funds Total 2020 INCOMEAND ENDOWMENTS FROM.. Donations end le98cles Charlteble aGtivi1105 Other trading activities Income from inveslm8nÉs Olher Income 8,325 3.500,000 129,569 62.350 30,or2 14,000 400,355 22.325 5, 134,710 129,589 62,350 34.482 1,234.355 4.410 Total Incoming r8sourcgS EXPENDITURE ON.. Expendlture on r818lng lunds Investment manager expenses Exp6ndltur6 on ch8rtt8ble activi1188 7,202 7,202 3,618,255 32,531 478,094 4,128,880 Net (lossesJ/galns on investments 116 761 116 761 NET MOVEMENT IN FUNDS (11,902) 1,201,824 (59,329) 1, 130.593 Total funds brought foard Tot81 funds carried ft)nv8rd 10. TRUSTEES Non8 of the Trustees lor any p8rsons connected with them) CeiVed any remunerallon during Iheyear. and none (2020.. 6) ofthem were reimbuv5ed (2020.. £3,288) Iravelling expense$. 24
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 11. EMPLOYEES Number of employees The average monthly number of employees during the year was.. 2021 Number 2020 Numb8r Educallon and Tralning Included inthe average monthly number ofemployees above are 1212020.. 14 parttimeemployee8 rylh equivalent hour8 to 6 {2020.-9 fulllime employees. 2021 2020 Wages and salarl8S Social Security costs Other penslon Gosts 1.760,911 174,580 1,834,157 176,191 The wagos and Salaries figure Includes redundancy payments of £25.639 (2020.. £17,332). The amount of remunerallon earned by directors and trustees in the year was £NII (2020.. £NIIJ. The number of employees whose annual remuneration was £80,000 or rrrf)rewere.' 2021 Numbor 2020 Number £100,1)00 - £109,999 £90,000 - £99,999 £80,000 - £89,999 Of the employees whose emoluments exceed £60.000, 312020.. 3) have retirement benefits accruing under defined contribution pension schemes. Contributions tolalllng £26,400 {2020.' £26,626) were made lo defined contribulKJn pen3ion schemes on behalf of employees whose emoluments exceed £60,000. The key management personnel of the Charlty are noted on page 1. Al the 31 July 2021 the aggregate employee benefits of key manag8menl personnel was £341.579 (2020." £335.851). 25
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENOED 31 JULY 2021 12. TANGIBLE FIXED ASSETS Land & Computer 8uildlng8 Equipment Fixtures, fittings & equipmont Cost At 7 August 2020 Additions DSspo8al8 39,031 16.944 256,628 18.012 23015) 114. 198 449 409.857 33,405 23015) Al 31 July 2021 249 625 Depreciallon Al l August 2020 Charge for the year On dSsposal8 8,283 8.138 203,070 37,424 230151 108.832 1,891 320. 185 47,451 23015) Al 31 July 2021 41 62 Nel book value Al 31 July 2021 Al 31 July 2020 13. INVESTMENTS 2021 2020 M8rket V81ue at l Augusl Relnvested dividends n81 of Investment m8nagem8nl fees (excludes accrued dlvSdendsl Nel unrealS8ed Investment galnslllosse8) 978,789 1,064,065 28,749 31,485 116 761 Market value at 31 July Historic cost lincludlng c88hl The followirvJ inve81ment constitutes more than 5./0 of the market value of the portfolio.. Vanguard S&P 500 UCITS EFT USD DIS 59.981 14. DEBTORS 2021 2020 Trade debtors Prepayments and accrued income 15.984 4T,955
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 10. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Trade creditors Taxes and social security costs Other creditors Accruals Deferred Income (nolo 18} 72,582 47,841 101,440 46,389 17.710 114, 131 117,200 105886 16. DEFERRED INCOME Deferred income relat88 to gran18 recelved for projects which have not yet been 8tarted or are partially completed. The movements during the year were.. 2021 2020 Balance at l August Amounts received Amounts uU118ed 69,748 51,210 1,660.153 47,445 Balance at 31 July 17. RECONCILIATION OF NET INCOME TO NEf CASH PROVIDED BY OPERATINQ ACTIVITIES 2021 2020 Nel Income for the r8porkn.ng period Deprecialion Interest recelved Income from Investments Unrealised IgalnslAo8ses Decrea8ellincrease) In d8blor8 (Decreaseyincrease in credllors Increase in provisions 210,530 1,130,593 47.451 50, 780 17,539) (21,027) (35.803) (41,323J 1155,323) 116, 761 71,919 (22,694) 10,109) (1,767, 730) 138 000 Not cash provid•dl{u8•dl by oporatlng actlvltl•8 27
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 18. PENSION AND OTHER POST-REfiREMENT BENEFIT COMMITMENTS The Charity operates Iwo defined contribution pension schemes. 4912019.. 48} Members have benefrt5 accruing under the schemes. The assets of th& schemes are held separately from those of the Charrty in independently administered funds. The penslon charge represents contrfbulions payable by the Charity lo the funds. 2021 2020 Contributions to defined contribution pension schemes 19. DESIGNATED FUNDS B81ence al 1 August 2020 IncomirwJ resources R880urce8 expended Transfers Balanco at 31 July 2021 Scotland and Adult Dilapldallons MOD Cadets and Adults 56,909 loo,000 (1,238) 55,671 1100,000) JlQQ2fiQl J100 The deslgnaled lunds of the Charlly relates lo th8 following.. £55,671 12020.. £56,909) has been designated lo be u8ed in Scotland and on Adult courses. Thls is expected to be used over the next couple of years. £1,135.335 (2020.. £1,234,355) which w98 Sel aside out of unre81rlcted furKl3 by the Trustee¥ for the specrfic purpose of providing training lo MOD Cadets and Adulls. This Is expected lo be used over the next three year5. The sxevious dilapidations fund has been replaced by a property provS8lon- See note 28. DESIGNATED FUNDS Comparatlvo yoar 2020 Balanc& al I Au9usI 2019 Incoming resources Resourc8S gxpended 8818nce at 31 July 2020 Scotland and Adult Dilapidations MOD Cadels and Adults 89,440 100,000 (32,531) 50,909 700,000 1234 355 28
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 RESTRICTED FUNDS The funds of the Charity indude reslncted funds comprislng Ihe followlng unexpended balance8 of donations and grants held for SPeCrf purwses.. 8818nce 8t t August 2020 Incomlng resourr£s Resources expended B8lance at 31 July 2021 Devolved Nation8 Northem Ireland Scotland Isle of Man Notlingham8hire and Lincolnshire 7,521 4,251 24,500 (7,5211 14.2511 124,5001 12,4001 2,400 Reslricled funds relal81o income given in support of specific Gohort5 of students be that defined by geographical location, course lille or specific student need5. RESTRICTED FUNDS Comparntlv• y•ar 2020 The funds of the Charlly indude reslrlcted funds comprising the followlng unexpended balances of donations and grants h81d for specrfic purposes.. Balance at 1 Augusl 2019 Incomi rnsources Resources expended 8818n¢e at 31 Jufy 2020 L180R Nort178rn Ireland Scotland Isle of Man Other income 383,695 9.660 21,000 {383,695J (68,989) (21,000) 59.329 2,400 2,400 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrnstrl¢twl Dwlgn•t•d R•strict•d funds fund¥J fynds Total Tangible fixed assets Current assets C110r3.. amoun1¥ falling due Ihin one year Provisions 1,238,487 1,713.515 1,238,487 2,923,721 1,191,008 19,200 (343,3091 00 (343,3091
CVQO LINIITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS Comparativo year 2020 Icontlnuod) Unre8tdcted Doolgnated Restrlcted fund8 fund• funds Total Tangibl6 fixed assets Current a$5els Croditors.. amounls falling due within one year 1,068,46t 1,357.662 1.068,461 2,751,326 1,391.264 2,400 349418 22. FINANCIAL INSTRUMENTS 2021 2020 Financial a•sot• Financial assets measured al fair value Financial assets measured al amortised cost 1,162.861 978, 789 FlnanclJl Ilabllltlo• Financial liabilities measured at amortised cost Financl81 as8et8 measured al fair valu8 are investments. Flnanclal assets measured al amortised cost compri88 trad8 debtors other debtors, accruod income and cash and castt equivalents excluding prepayments. Flnanclal Liabllilles measured al amortised cost comprise trade creditors, olh8r creditors, and 8ccruals excludlng deferred income and other18X8tion and social securS1y. 23. COMMITMENTS UNDER opeRATING LEASES Al 31 July 2021 the CharSty had annual commitments under non-cancellable operating leases as follows.. Land and bulldlng• 2021 2020 Oth•r 2021 2020 Expiry date.. L655 than one year 8etsveen two and five years In over five years 128.071 416,582 128,011 512,285 32 18.021 41,228 18,565 59,249 24. COMMITMENTS At the year end, CVQO Ltd had contracted capital cofflmitm8nts of £Nil (2020.. £Nil). 25. RELATED PARTY TRANSACTIONS During the year CVQO Ltd had no related paty transactions to disclose.
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 26. PROVISIONS The provision relate8 to polential dll8pldation8 Ilabllltbs al CVQO Lt(1 propertles. 31