Charity Registration No. 1115234 (England and Wale3) Charity Registration No. SCO 39261 (Scotland) Company Registratson No. 05736932 (Enaland and Wales) CVQO LIMITED TRUSTEES. REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 LEGAL AND ADMINISTRATIVE INFORMATION Tru$le88 Ch8*man Vice Chairman Honorary Trea8urer Th8 Lord Lln9field Kt DLitt DL M8 Olga &)ttomley MIVA MIOD MrJohn DOW TD MA ACA Mr Keith Baldwin BSC(Engl ACGI Msc DIC C Eng MIET FI8C Professor Martin Dool CBE s Lesley Davies OBE Profe88or Simon Denny BA MA PhD. Holder of tho Queen'8 Award for EnleryKl88 Promotion Chlef Executiv8 Mr Guy Horrldge BS¢ Msc MBA FCGI FCMI Fln8tLM Key management Chlef Executlve Mr Guy Hothdg8 Bsc Msc MBA FCGI FCMI Fln8tLM per80nnd Deputy Chlef Executlve M8 Michè18 Parry BA PGDIP MA Olrector of Flnance Mr Robert Harvey MA ACA Charlty Nam8 CVQO Llmlted Charlly number England and Wal88 1115234 Charlly number Scotland SC039281 Company number 05736932 Reg18tered Offl¢e and Prin¢lpal addres6 3 Archipelago Lyon Way Camberley Surrey GU18 7ER Auditors Crowe U.K. LLP Aqui8 House 451 Blagrava Street Reading Berkshl RG11PL Bankers Lloyds Bank plc 98 Vlcloria Slregt London SW1E5JL
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 Tho TN$t8e$ rxesent thelr rep(rt and accounts for the year ended 31 July 2022. The accounts have been prepared in accordance with the accounting polici8S Set out in note 210 the acxounts and comply with the Chariws governing document, the Companies Act 2LTh and the statement of Recommended Practice. "Accounting and Reporting by Charities" (20191. The Charlty was incorporat8d on g March 2(M)6. Obloctlvu and Actlvlti Tha charitable purpose of CVQO is lo advance the education and training of youth and adult members of youth movements and schools to enable them to obtain vocational qualrfications. CVQO is an accredited provlder ol vocation81 qualifications. delivering educational opportunitie8 to members of voluntary youth movements and schools, induding the Amiy Cadet Force. RAF Air Cadets, Maring Society and Sea Cadet8, Combined Cadet Force contingents within 8chool8. Sl John Ambulance Cadels, the Fire Cadets, The Smut$ and the Volunte8r Police Cadets. A high proportion of sGhool age l&¥rners participallng in CVQO-led progr8mme8 are not predicted to achieve five GCSE8 0194 grad&. Many leamers are 8180 entitled lo free school meals and th8r8 is a proven corwlalion between eligibilrty for free school mealg and lower academic attainment. The VOC81ional qualifi¢8tion$ offered by CVQO provlde thes8 learners wlth a valuable allemative route lo achieve fomlal recognised qualifi¢8lion8. M051 CVQO learners recelve Ihelr quallflcalions completely free of charge through fundlng from the Education and Skills Funding Agency IESFAI or through CVQO'S partner8hip fundlng agreements. MOJJI of th088 ov•r 19 make a contribution to Ihe Cost of Ihelr quallfl¢otlon, bul thls 1$ well below the commercial rale that would be charged by colleges or unlversllles. Many of tho$e who are over 19 who register for 8 CVQ04ed ILM or Clty & Gullds adult qualrflcalbn have not achlevad any prevlous forn81 qualification. 8oclal lrnpact In 2016 the Mlnislry of Defence IMOD), the Combined Cadet Force As80clalion and CVQO commlssloned the Inslllute for Social Innovallon and Impact (Isll) at the Universlly of Northampton to undertake longltudlnal research project. The four-year project wa8 de81gn8d lo help understand the social Impact and return on investment resulling from the MOD'S expenditure on cade18 and the Cadet Expan8lon Programme {CEPI, 88 well as the benefits of the quallffcations provided by CVQO. The final report was published in May 2021 and Induded 8 number of notable conduslons whlch 8lron9ly 8UPPOrt the benefits derived from participation in the programmes offered by CVQO.. Participalron in the Cadet Forces and access to vocallonal qualrfNtion$ have signiftant posltlve impacts on young people. increasing their performance al 8chool and improving their employment and career prospects. Gaining vocational qualrficatlons through CVQO has particularly Signifant positive impacts on vung people, particularly those Ihal suffer e¢onomic and other disadvantages. It was estimated Ihat the lrfetime value of qualificalions ft)r the 2018 - 2019 cohort of CVQO leamers that could be classrfied 88 disadvantaged Ic. 998 individua181. 18 in the region of £108.9 million. This very significant valu8 is purely for the disaévanlaL*d Cohort. The value of CVQO awards gained by cadets that are not disadvanlaged could Tr)t be ¢al¢ulaled, but It Is also Ilkely to be very large. Cadet Force Adult Vdunleers I"CFAV5') a150 benefit greatly in te¥ of increased lrfelime eamings resulting from naw quaiificatlon8 galned through CVQO.
CVQO UMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 In the 2018 - 2019 year 469 CFAV8 galned NVQ Level 2 and 3 qu816fications through CVQO. The value in future earnings lo this cohort could be as much as £81,613 per individual, or £38.3 million for the cohort. Leamers gaining qualrfication5 through CVQO do 80 either free of charge or al subsidised rates. For those that that 8re dlsadvantw, especlally tho8& disengaged from mainstream education, these qualificatlons can be- lrterally- lrfe-changlng. CFAVS that have no. orfew, qualrfulions can also change their career opportunities by gaining vo¢alional qualrfications as a result of their participation in the Cadet CVQO ha8 always b8on confident that both our18amars and Society gained signrfnI benefrts from our programmos bul we have been delighted lo see the scale of the retum being quanlw In th18 report. In Iha 2018-19 period most recendy examlned by the Unlversity of Northampton, CVQO'8 income was le88 than £4.5 million, whilst the lrfetime benefits lo the cohort galning qualrficalions is conservatively axpecled to be Sn the reglon of £150+ mllll¢Jn. A more detalled synopsis of the report18 avallable al.. 221 df. Coronavlrus dl•ruptlon We believe that lo achl8ve the best outcome for leamers there Is no sub811tute for face-lo-face learnlng and the inleraclion that 11 provlde$. Our dellvery mo(lel therefore relled on Ihls melhodology prior lo the Coronavirus pandemlc. Lockdown and 80cial dlslanclng mea8ur88 d18nJpted our actlvltles because we were no longer able lo v1811 learner8 al their cadet unlls or youth group events. Although our 81off successfully tran8ilioned lo worklng from home where 8pproprlate. we inevitably encounlergd challenges malntalning contact th our learners and en8uriThJ that they could o)ntinue lo complete Iheir quallfi¢alions. Rather than using our USLtal lace-lo-face delbvery approach we implemented a variety of on-llne weblnars. vldeo guldes and Ilve workshops lo ensure Ihal leamers were given opportunltles lo cixnplele Ihelr qU81fficalion8. Thi$ helpeil learners progre$$ and we were able lo continue lo fulfil many of our objectSve8. though the reslrlctlons were progresslvely lifted during the porlod, our ablllty lo register a8 many new learners as we would have expected in normal cir(aJm51ances was1Smlled. Many of the org8nisalion8 that our learners come from experlenced significant fa118 in their membershlp as a re8uII of the pandem1¢ both amongst young people and the adult volunteers who are Sn8trumental in recrulllng new member8 and running the groups. Membership is starting to grow again bul the new recrult8 are typically loo young lo bpnefil frorn our ESFA lunded qualrficalions. Athough this bodes well for the future. we expect that il w411 lake al least a couple of years before the higher numbers in the new Cohort become eligible. In the meantlme therefore our reglslrallon volume8 may continue to run below their hlstork levels. Obl•ctlvos for th• year For the year to July 2022 our key were.. Strong performanr£ against exlsting long lem learner targets and funding arrangements. Development of delivery mo(le15 and virtual training methoéology lo improve knowledge Ir8n$fer to leamer8 who we are unable lo meet f8CeWfSCe. Expansion of the Lion Award in 8chool8. Increased reglstralions from non-MOD youth organisations.
CVQO UMITED TRUSTEES REPORT FOR ThE YEAR ENDED 31 JULY2022 Achl•v•m•nt• and p•rformance QuaIlftcath$- Young Poople Despite the ongoing impact of the Coronavirus pandemic, CVQO was able to register 2,344 ESFA fvnded learners in the year (2021.. 2,8901. This was b8low our annual target but it was higher than 8xpecled it bec8me clear that there woulé be delays and disruption lo normal youth group aclivili&s even after the relaxation of restriction8. Th8 use of virtual learning18chnolo9y ha8 enabled us to support learners bul we were very aware that we did not ju8t wanl lo become anolher online 18arning centre with the learnors feeling they were having an extension of school. Thus we had to make our 888sions inter88ling and more Interactlve. Vlrtual learnlng had to bo fun to continue lo engage all our learner8. Overall, raglstratb)ns for learners under 18 totslled 4.247, an Increase of 8% over last yearf8 total of 3,998. In particular, we were able to d&liver an increase in the number of BTEC Level 1 TeamNw)rk and Personal Sklllg, and Flre & Re8cue S8Nice Level 2 qu81ifJcalions. Qu•lMl¢•rfons- Adult8 The number of new registrations for adult qualifications tolalled 214 {2021-. 3981. Interest in the qualtlicalions was relatively high when Coronavirus r&slriclion8 were in place but declined wh8n life began to relum to normal in the18116r part of the period. Registratn8 for City & Guilds and ILM qualfficalion8 remained al similar leve18 to the prlor year but ther8 was 1888 demand for the BTEC Levd 3 Award in Educalbn & Training. Sch¢>ol$ •nd Communlty ProJ•¢ts The CVQO Lion Award is deslgned to promote the development of 8-14 yeor olds through a v8rled programme of outdoor 8¢tlvllle$, flrsl akl skill$ and soclal action projects. Learnlng Is deslgned lo complement regular School work and Is facllltaled by CVQO instru¢lors lo support children's mentsl wellbeing, resilience and character. This programme runs 81 SGhool premi865 and relies on school fundlng and charitable donalion8. The prolonged dl¥Tupllon to schools caused by the Coronavlrus pandemk prevented us from rolllng out the Award unlll later In th8 period bul we experlenced an Increaslng level of activity through the year and expect lo deliver the Award more exlenslvely In the comlng year. Wesemlnstw Award In 2022 CVQO ran Its 181h annual We8tminsler Aword programme which 18 de8vJned to reward Ih08e CVQO18amers who have rl only excelled al their youth group LX)mmrtments, bul gone over and above, helplng others around them and di8p1ang real altruism. This year V re1Ved an Impresslve numbar of nomlnallons from the Arniy Cadet Force. RAF Alr Cadel8. Marine Society and Sea Cadets, FI Servlce Cadets, Sl John Ambulance Cadets, Combined Cadet Force conllngenls within schools and The Scouts. We Selected 40 flnallsts from these submlsslon$ to tske to a four day assessment event in Somerset. The finalists took part in a serie8 of physical and problem-solving challenges and completed the prestigious ILM Level 3 Award in Leadership and Man8gement.11 wa8 very clear that even those who did not make it through to the fin818tage really valued their ILM Level 3 qualification vthlch Ih8y 8ee a8 a valuable addition to their 8mployabllity skills. Frfteen nallonal finallgts were Identmled al th8 Selection stage and lolned a two week expedllion In Comwall durfng which Iheyworked on a number of Imaginative and demandlng volunteerlng projects th 81x partner charitie8 and gained an understanding of issues associated with humanilarlan aid, climate change and Conservation. Their successes will be celebrated further th their families. friend8 and honoured we8ts during a lunch al Ihe House of Lords in November 2022.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 Gr•duation C•r•mony After not belng able lo hold CVQO'S annual graduation ceremony during the pandemic we were able to host events at the historic bullding8 of RMA Sandhurst during the p8riod,' in October 2021 and March 2022. Leamers who would have been eligible to attend the previous yearfs called event were invited along with the Gurrent year'8 graduates. The Charity's Chalrman, The Lord Llngfield, presided over the ceremonies and the graduates were joined by friend¥ and family lo celebrate their 5ucce58. The events also allowed u8 to recognise the ttard work and tremendous support we recelve each year from our many Cadet Force Adult Volunteer8 and VoCalkal Quaiificats'on Officers. Futurn Plan• The Chlef Executlve and the Execullve Team have klentffied th8 following as yioritleg.. Strong performance again81 existing long 18mi leamer targets and funding 8rrangemenl$. Improve access to qualifications by development ol éelivery moéel8 and virtual tralning methodology. Ralse awarene88 of the Llon Aw8r(i aw58 the UK and, Iffundlng Is avallable, ITrease the number of schools vthich run the programme by 10%. Expand our reach and the number of qualthcalions dellvered wilhln non-MOD Sponsored unlformed youth org8nl8allons. Our medium term aim18 that 20% of our reglstrallons should come from non-MOD cadets. 3tru¢tur•, gov•man¢• and manag•rn•nt The Charlty a company Ilffllted by guarante8 and. in accordance th the Companle8 Act 2006, does not hav& a share capital. The Trustees, who are 8180 the dlrectors for the purpose of company law, who 8eNed durlng Ihe year, were.. Th8 Lord Llngfield Kl DLilt DL Ms Olga Bollomley MIVA MIOO Mr Keith Baldwin BS¢lEng) ACGI MSC DIC C Eng MIET FIBC Mr John Doyrty TD MA ACA Profes60r Martin Doel CBE Ms Lesley D8vie5 OBE ProfesBor Simon Denny BA MA PhD. Holder of the Queen's Award for Ent8rpriso Promotion. Trustees arerecruited n a variety of ways and from 8 rango of80urce8. Tru8te88wfio have been appolnted bringwith them a %lIh of educational, youth. mllltary and financlal knedge. Trustee8 are elecl&J for an Inllial term of three years and at that point are 911b18 lo seek rtrelectlon for a further two tem18 of three yearB. The Chairman has the option to extend any Trustee's term for a furtt*r one or two years, 80 a8 to avol(I an exodu8 at any one tlme. None of the Trustees has any beneficial intere51 in the company. PJI of the TnJste8s are rnernbers of the company and guarantee to ¢ontribul8 £1 in the event of a winding up. On the tirement of the Chairman it will be the re5pon5ibility of the Trustees to elect a new Chaimian from amongst them.
CVQO LIMrrED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 Onc8 elected, n8wTruslees are given an induction pack and invited lo attend a Iralnlng day. The Truste8s havg ddegaled 8ulhority for management of the Charfty lo the Chlef Executlve and the Executive Team. K•y Managomont Romunerallon The Directors consider th8t the B08rd of Directors. who are the Ch8riiVs Tru81ee8. and the Execullve Te8m comprise the key management personnel of Ihe company in charg8 of d1CtIng and controlllng, runniThJ and operating the organisation on 8 day-to-day ba$i6. CVQO'S remuneratlon policy and procedures for key management personnel are 88 followB'. The Board18 re8pon$lble for $ettlng the Chlef Executfve's remunerallon; The Chief Executlve sets the salaries of the other members of the Execullve Team., and. Pay 18 reviewed at least annually. 8t•t•m•nt of Trust•, rn•ponslbllltl•8 The Trustee8 (who ar8 also d1CtorS of CVQO for the purposes of company law) are SponsIble for preparing the Truste&s' Report and the financial slalemenls in a¢¢ordan¢e wllh appllcable18w and Unlled Kingdom Generally Ac¢epl6d Accountlng pract1 (United Kingdom Accounllng St8ndards}. Company law requlres the Tru8t8881o prepare financial 8t8lemenls foreach financial year. Under company law the Tru8lee8 rnust not approve the financial statements unless they are 8a118fied that they give a true and falr view of the 8tale of affairs of th8 charitable company and of the incoming resources and applicalk)n of re8ource8, including the income and expenditure, of the charltable company for that period. In preparlng these financial slalements, the Trustee8 are required lo.. 8eleGt suitable accounting policies and then apply them consi8lenlly,' ob8OP48 the method8 and prlnclples In the Charlt188 SORP: make judgements end estlmal88 Ihet are reasonable and prudent; • state whether applicable UK accounting 8tandard8 have been followed, Subject to any material departure8 disclosed and explained in the financial 8ta18m8nts,' and prepare Ihe flnan¢ial slalemenl8 on the going o)n¢ern basls unle68 rt 18 Inapproprf8le lo pr88ume that the Gharitsbla company will conlirnue in business, The Trustee8 ar8 responsible for keepiro adequate accounllng records that are $uffici8nl to $how and explain the charllable company's Iran88clions. disclose wlth reasonable accuraw at any tlme Ihe financial position of the charilable Company and enable them to ensure that the financlal stalemenls comply wllh the Companies Act 2006. the Charities and Trustee Investrnenl {Scotlandl Act 2005, the Charities AcGounls (Scotiand) Regulations 2006 (as amended) and the Provisions of the Charill5 conslitulion. They are also responsible for 5afeguaréing the assets of the Charity and henGe for takiTrJ reasonable steps for the pVention and detection of fraud and other irregularitie5. R15k Managomgnt CVQO has Introduced a fomial rlsk manag8menl process to as88ss buginess risks and it has implemented risk management 81rategie8. Thi8 has Involved idenllfying the types of rS8ks the Charlty faces, Fffloritising them In terms of potential Impact and Ilkelihood of occurrence and 1dentl'n9 means of millgaling the rlsks. The Charitys Internal controls have also b&&n reassessed lo ensure that they contlnue to minimlse the rlsk of fraud and are in line with the guidelines estsblished and recommended by the Charity Commlsslon.
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 The risks are formally reviewed al Trustee meetings that are held regularly through¢yJl the year. The Chief Executive has produced a Busines5 Disaster Recovery Plan which has b8en tested and continues lo provide effective covor in the event of a signrficanl incident with a tmjlentially damaging impact on the Charity. Prlncipal Ri8k• Fln•n¢l•l Risk.. A large proportion of cvao's income derives from a single funding arrangement wth the Education and Skills Funding Agency IESFAI. ff this contract were terminated. not renewed or reduced in value there would be a very significant financial impact on the Charity. Mitigatn.. Maintain good relation8 with the funder8, identrfy other income 80urce8. en8ure full adherence lo the terms of the agreement. rneel or exceed performance targets and promote the value of the qualifications provKled and the benefi18 lo the learner8 who achieve them. Continue to be Of818d graded good or 8bov8. Educatlonal Envlronment Risk- A8 Government policy on education evolves ther8 is a rlsk that the current sel of vocational qu81ificallon8 Ih8t CVQO offer fall outside future fundlng 8pecificallons. Mrtlgatlon.. CVQO contlnually monltors the educatlon envlronmenl and Uld react qulckly to an announcement of any future changes In fundlng requirement8 and would seek to develop new vocallon81 qU81rficallon8 th81 contlnue to deliver the benefit8 lo young people provlded by our present qualthcatlons and also to meel any new requlrements of the funding bodle8. Chlkl S•f•guardlnq Rlsk.. CVQO 18 commllled to prevenllng any harm to chlldfen caused by Its a¢llvltles. The Charlws reputallon could be $lgnrflrAnlly damaged W 11 fa118 to 98feguard learnern engaged In Its quallflcallons. Safety and care of learners 18 8 key Of31ed requlrement. Mlligalbn.. All staff are Iralned on chlld 88fegu8rdlng and are provkled wllh a clear and Secure framework for ensuring that all children and young people engaged In CVQO activities are protected from hami. A 8ub-commillee of the Tru8te83' Board has been established lo oversee 8afeguarding mallers and10 8n8ure that the risk is monllored, reported on and any incidents Inve8ti9aled and acllon taken when necessary. Where 8pproprlale we work wllh th8 cadet forc88. youth group8 and 8chool8 to en8ur8 Integrlty of 8afeguardlng even ¥there CVQO Is not dlreclly responslble. Data Securlty Rlsk.. The risk that the Chariws data is stolen, leaked, lost or held to ransom as a result of an attack through the inlemet, This could result in loss of reputation, daims against CVQO. interruption to its operations or any comblnalion of these. Mitigation.. CVQO has inve81ed In 8lrorvJ IT 88curity sy8tem8 Induding firew811 and antl-virus 801fvre and has adopted good data protection practices that provide an appropriate level of def8nce agalnst cyber- attack. An experienced Data Protection Officer has been appointed and external expertlse Lrtili88d to Perform Ir8ining. data audits and lo implement GDPR policies. All members of staff have recelved training wllh follow up where nece888ry.
CVQO LIMITED TRUSTEES REPORT FOR TrIE YEAR ENDED 31 JULY2022 Compllan Rl$k.' Data Return Compllance Failure. There is 8 8ignificanl volume of data that must be provid8d quarterly io key funders and11 Is important that these returns of data are submilled on a timely basis and wlh a very hlgh degree of a0raCY. Persistent non-complianc8 could jeopardise CVQO'S relationship with its funders. Mltlgatton.. Ensure hlgh standards of lata verMc4tlon and valallOn occur before submission of the relum8 and th81 the ability to perfomi these processes is held by a number of employees. Data integrity is Supported by experienced IT staff and an expert external IT 5ervic8s company which ensures that éata 18 managed on upto-dale software systems and regularfy backed up. All returns are overseen by the Executlva Team. Statement of Publlc Benofit CVQO has been operatlng as an Sndependenl Charlty and Company Llmlted by Guarantee for 81xlgen years. The Trustees ¢onflmi that Ihey have ¢omplled wllh the duly In Se10n 17(5) of th8 Charlll88 Act 2011, to have due regard lo the guldance188ue4 by the Gharlty Commlgslon on publlc benefit. Thi818 carrled out through tho Objects arKI Power6 of the organlsalh)n. Fln•ndal Rwl Inme In the perlod wos £3,782,00012021'. £3,806,000). The ESFA continued lo provlde the Charft¥s core grant fundlng for EnglarKI 8t £3,SW,000 {2021.' £3.500,(KIO). Th1$ fundlng ha8 been secured at th8 88me level for 2022123. In addltlon lo govemmonl department grant fundlng, CVQO draws ch8rltable fttndlng from a range of sourGes Includlng ¢harS18ble tru818 and the Cadet org8nl8allons. Addltional fundlng In the year was £30,0(KI {2021'. £44,000) whlch helped lo cover Ih08e not ellglble fly ESFA grant fundlng and lo allow CVQO to deliver qualrflcallons to adults al 8ub8ld18ed rates. A 8mall number of staff had been furloughed in the early part of the prior year bul we were pleased to be able lo reinsl8le them lo thelr roles well before the end of the govemmenl'8 Coronavlrus Job Retention Schem8 and made no clalms for grants In the period (2021." £20,O¢J)I. Income from ce8h dep08118 wa8 al a 81mllar level lo the prevlou8 year but the Inve8lment portfollo d8prec18ted in value (Inclusive of reinv881ed Incom8 and net of charge81 by £38,000, reversing 80me of the galn8 exp8rlenc8d In the prlor year (2021.. appreciation of £184,000). Th8 year-end valuation was £1,125.000 {2021.' £1.163,000}. Expenditure was marginally higher than in the prior period due lo InL¥eased activity followlng the relaxation of Coronavirus restrictions. However, the prior period induded the recognition of a provision for property dilapidation costs at the CharitVs head offlce building {£138.OCh)I resulting in total re80urcgs expended 8howng a decrease to £3.878,00012021'. £3,751,000). Th8 Charlty's 8urplus for the year to 31 July 2022 wa8 £40.OIX) (2021.. £211,0(KJI. Total funds al 31 July 2022 were £3,721,000 12021.. £3,881,000). Unrestricted fund$ comprised the majority of the balance at £3,703.00012021.. £3,662,000} of which £1,003,00012021.. £1,191,000) was designated for MOD Cadet and Adult qualifications. Restricted funds totalled £18,000 (2021.. £19,000).
CVQO LIMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 Re•erve• Pollcy The Trustees, policy on reserves strikes a balance between applyino funds received to our ¢harllable wrpos8s and maintaining a level of reserves thich would allow the Charity lo deal effeCtelY and responsibly with the financial challenge that would result from the loss of a majLY funding Stream. The Trustees consider il appropriate lo hold unrestricted funds. exduding designated funds, al a level wh would ensure that students, already regisl8red, would be able to complete their courses. Thi5 would ensure that no student already registered with us would be disadvantaged in the event of such a loss of funding. Reserves can also be applied to funding new or potential projects where an initial investment is necessary to develop new sustainable areas of activity or lo idenlrfy whether Of not such sustainable a¢tivili¢s Can be developed. The policy is reviewed annually. Th8 balance in unrestricted reserves. excluding de$ignat8d reserves, al 31 July 2022 was £2,701,000 12021.. £2,471.000). The Tru81ees ¢on8idef this to be a reasonable level of reserves and will be 8ubject lo regular review. After deducting the carrying value of tangible fixed 888et8 held for the Char6tls own use there were free reserves as deflned by the Charity Commission of £2.635,00012021.. £2,395,000). The balance held In re8tricted fvnds ot 31 July 2022 was £18,00012021.' £19,000) repr8santing funding rec8ived for Specific cohorts of Students, be that defined by geographic localion, cour8e tide or specific Student need8, that ha8 not yel been 8xpended. The88 re8erves will be spent in support of the relevant studen18 In future periods. Deslgnaled fund8 8131 July 2022 Vre £1,003,000 (2021.. £1,191,000). All of the fun08 al 31 July 2022 were designated for the support and dellvery of cadet and adult volunteer vocational qualification8 (2021.. £1,135,000 for cadels and adult volunteer8 and £56,000 lo fund qualfficallon8 in Scotlandl. The Tru8lee8 have the aulhorty conferred by the memorandum and artlcles of a8soclatlon to Invest as they see fil and to d8legalo Ihe management of investment8 to a Ilnancial expert. CVQO 18 not dependent on Inv081menl income lo undertake its work and Is relallvely rlsk advers8 bul considers il appropriate lo Inve81 a proportion of 118 available funds In longer term Investments In order lo malnlaln capllal and achleve hlgher return than can be realised wlth bank deposits. 11$ investment objective 1$ lo Invest globally to malnlaln the capi181 value, at least in line with infl81ion, as measured by Ihe Consumer Prices Index (CPI) vAlh a targeted lolal return of CPI +2.5% over a rolllng three year perlod whilsl mlnimislng risk exposure and Inve8tmenl volallllty. CVQO has appointed Brewin Dolphln to manage a F)Ortfol*) of equity and fixed-inleresl inveslmenls. The Tru$lee6 inslructed the investment manager that no direct investmonl loth8r than Treasury Slook> should repwsent morg than five percent of the overall value of the fund8 and that no inve8tmenl into a fund holding unéerlying investmen15 should represent more than len percent of the overall value of the funds when purchased. In addition investments Should not be made in markets where marketabilily18 limited. or directly in high risk investments, slrucluieé products, hedge funds or fijnds of hedge funds. The Investment manager reports lo the Trustees quarterfy and the Charlty r8vlew8118 Inve81ment strategy annually. CVQO originally Invested £1.000.000 In January 2019. AI 31 July 2022 the value of the investments was £1.125,000 {2021'. £1.163,0(Kll. The return for the year ended 31 July 2022 of -3.3% was consistent with comparable benchmarks such as Ihe ARC Balanced Asset Charity Index which showed a decline of 2.7% over the 8ame wlod. The portfolio's retum over the three years to 31 July 2022 was 5.7% Nthich compares lo CPI over the period of 12.2% and a largel return of 20.5Yo. Alhough this was below the target p8rformance il was broadly in line with returns achieved by the ARC Balanced Asset Charity Index, which showed growth of 8.8%. Due to the recent increase in infflation and financial market performance we anticipate that the portfollo is unlikely lo achieve its inflation linked objeGtNe over the next period.
CVQO UMITED TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY2022 Fundr418lng Prnctlca CVQO'S funds derive principallyfrom Statutory and governmont ag6n¢lo$ bul11 does ral88 small Sums from Trusts and Foundations as well for spec¢ purposes. We are also fortullale to receive donations from individuals. particularly from individuals who have galneé a CVQO vocational quallfiGalion or those that know them and wish to show their appre¢latlon. CVQO Is not set up lo engage in large scale fund-r815ing activities like mass mailings. telephone fund-ralslng or door-to4oor Gampaigns nor do we employ a professional fund-raiser or 8ngag8 the services of any thlrd-party organlsath$ lo help rai¥e funds. To thls end, we have not considered il necessary or appropriale to sign up lo any regulatory code of fundraising practice, and we have ensured that we have tsken all Sonable step5 to prolecl vulnerable people from Inappropriate or unwelcomed fundraising approaches. We have not recelved any wmplaints about any aspect of our fund-raising. CVQO h86 a strong elhos of re¥peGI for the independence and dignity of it8 learners and would not countenance any ¢onéu¢t or a¢tivitie5 that undermlned th15. Provl•lon of Infomiatlon to audllor• Insofar as eaGh of the dlreclors of the Charity al the dale of approval of thls report 18 aware there 1$ no r6levant audll Snformation {informallon needed by the Charltls audltor In connecllon with preparing the audll report) of whiGh the Charl1518 audltor Is unaware. Each dSmctor haB taken all of the steps that they 8hould have taken 88 a dlrector In order lo make th8m8elve5 aware of any relevant audll information arKI to e8labll8h that the CharW8 8udltor Is ow8re of that information. Avdltorn The Audttor8, Crowe U.K. LLP wlll be prop08ed In accord8nce th 8ectlon 485 of the Companle8 Acl Approved by the Board of Director8 and 8igned on Ihelr behalf by:_ The Lord Llngfield KT DLItt DL Chalrman hn YTOMAACA Honorary Treasurer Dated.. 23 hjoq 20 &k Dated: 23 lo 10
A Crowe U.L Lip ChLTrteredAttountonts Mernber ofCJoweGlobal Aquls HOSe 49-51 Wagre streei Readin8 Berkshire RGI JPL UK Tel +441011189597222 Fax+441011189584640 www.trowe.eo.uk INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED Oplnlon We have audited th8 financial $tatem8nts of CVQO LimSled forthe year ended 31 July 2022 which Comprise the Statement of Flnancial A¢tiviti8$, Balance Sheet, Statement ol cash flow5 and notes to the financial stalemenls, including a Summary of signtficant accounting policies. The fInarla1 reporting framework that has been applled in thèlr preparation is applicable 18w and Unltad Klngdom Aecounling Standards, Includlng Financial Reporting Standard 102 The Financlal Reporting Standard appIAble in the UK and Republic of Ireland {Uniled Kingdom Gener8lly knepled Accounting Practice). In our opinion the financlal st8lemonts'. glve a INe and falr vlew of the Stale of the charitablo companls affalr6 as at 31 July 2022 and of Its Incoming resources and appllcation of re8ourc85, IndudlrvJ Its Income and expenditure for the year then ended", have been properly prepared In accord8nce wllh Unlted Klngdom Generally Accepted Accounllng Practlce," and have been prepared in accordance wlth the requirements ol the Companles 2008, the Ch8rltlg8 and Truglee Inveslmenl {Scolland) Act 2005 and Regulatlon 8 of the Chorlties Accounts Iscollondl Regulallons 2CII6. Ba•1• for oplnlon We conducted ijur aud51 In aOrdanCe wlth Inlemallonal Stsndards on Audltlng {UKI {ISA6 (UKI) and appllcable law. Our respon8lbllitle8 under those Standards are further degcrlbed In the Audllorf6 respon81blllllg8 for the audll of the flnancial 8talemenls 8ecllon of our report. We are Independent of the charitable Company In a¢¢ordance with the ethical requirements Ihal are relevant lo our audit of thefinanclal slalements in the UK, Induding the FRC'S Elhi¢al Standard, and we have fulfilled our other ethical respon6ibililie8 in accordance wllh these requiremen15. We believe that the audil evidence we have obtsined Is sufficienl and appropriate lo provide a b881s for our oplnion. Conclu•lon• relatlng to golng conc•m In auditing the finanryal statements, wo have wnduded that the trustees, uso of the goi concern ba815 of accounting in the preparation of the financial statemen18 is appropriate. Based on Ihe work we have performed. we have not identrfied any rnalerial un¢ertainti88 rolating lo evanls or Conditions that, individually or Gollerlively, may cast significant doubt on the charitable companws ability lo continue as a going concern for a perd of at least twelve months from en the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Iru8lee$ th respect to going ¢on¢em are desGribed In the levant sections of thi¥ report. CthvcU.K. EC4M7JW AlOf
Crowe INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF CVQO LIMITED {CONTINUED) Oth•r Infomatlon The trustees are re8pon8ible for the other information contained within Ihe annual report. The other information comprises the infonnalion included in the annual report. other than the fInarla1 ststements and our audilorfs report thereon. Our opinion on the financial statements does not Cover the other inform8tion and, except lo the exlenl oth8fwbse explicitly stated In our report, we do not express any form of assurance conclusion thereon. Our responsibility15 to r8aé the other Informatlon and, in dolng so, consider vthelher the other Informatlon is materially inconsistent with the financial statements or our knedge obtained in th8 audit or otherwise appears to be materially misstated. If we idonlify such material Inconsistencies or apparent material mi8Stalements, we aro required lo determine whether this gives rise lo a material mlsslatemenl in the financial statements them8elve8. If, based on the work we have performed, we condude that there 18 a material mi88talement of thi5 olher infomiats'on, we are required lo report that fact. We have nothlng lo report In th18 regard. Oplnk*n• on oth•r m•tt•r8 pr••crfbod by th• compan1 Act 2006 In our oplnlon ba8ed on the work undertaken in the course of our audlt th8 infomialion givan in the trustees, roport, %thich indud88 tho directors, report prepared for the purpo8e8 of company law, for Ihe financial yoar for which thè financial 8talem8nl8 aro prepared 18 consistent with the financial slalements,. and tha dlreclor8' report Included wlthln the trustee8' report have been prepared in accordance wrth applicable legal requirements. Matt•r• on whlch w• ar• r•qulr•d to r•port by •xc•ptlon In light of the kno%edge and und8rsl8ndlng of the charitable company and Ils environment obtained In the course of the audit, we have not idanlifled maleflal misstatement6 in the director6, report induded wllhln the trustees, report. We have nothing lo report in respect of the following malters in relation lo which the Companies Act 2006 and the Charitles Accounts {Scolland) Regulations 2006 requlre us lo report to you If, in our opinlon.. adequate and proper accounting records have nol be8n kept,. or the fin8nclal slalements are not In agreemenl wllh the a¢untIng rectyds and retums., or certain d19closures of trustees, remuneration gpe¢ified by law a not made; or we have not received all tho information and explanations we requir8 for our audil R8spon$SbllS1108 of tru8to0• As eXaIned more fully in the Iruslees, respon5ibilitie5 slalemenl on page 6 the Iruslees (who are also the directors of the charitable company for the purposes of company law) are responsible for th8 preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal c¥Jnlrol as the Iruslees delemiine is necessary to enable the preparation of financlal Statements that are free from material misstalem&nl, whether due to fraud or error. 12
A Crowe INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CVQO LIMITED (CONTINUED) In preparing the financial slalements, the trustees are responsible for a68essing tho charrtabla companws ability lo continue as a going concern, disclosing, as applicable, mallers related to going concem and using the going concern basis of accounting unless the tnjstees either intend lo liquidate the charltable L¥Jmpany or lo cease operations, or have no realistic allernatNe but lo do so. AudIt0$ re•pon•lbllltlo• for tho audlt of th• flnanclal statem•nt• We have been appointed as auditor under section 441lllc) of the Charftie8 and Trustee Inve8tment (Scollandl Act 2005 and under Ihe Companie5 Act 2006 and report in accordance with the Acts and relevant regulations made or having effect Ihereunder, Our objeclives are lo obtain reasonable a8sur8nce about whether the financial $lat6menls as a whole are free from malerSal mlsslatemenl, whether due lo fraué or error. and to issue an audllor's report that Includes our oplnlon. Reasonable assuranc8 Is a hlgh level of assurance, bul Is not a guarantee that an audll conducted In accordance wllh ISA8 {UKI 11 always delecl a material misslat8menl when 11 exlsts. Misstatements can arlse from fraud or error and are consldered malerfal ff. Indlvldually or In the aggregate. they could reasonably be oxpecled lo Infiuonce the eCormI¢ dedslons of user8 taken on the ba$16 of the88 financlal Statements. Details of the exlenl lo whSch the audll wa6 considered capable of d8lecllng Irregularlll88, Including fraud and non-compllanc8 With laws and regulations are sel out below. A further descrlpllon of our re8pon81bllllles for the audll of the flnanclal slalements 18 located on the Fln8nclal Reportlng Councll's web8lle at.. .frc.o audi orsres nsibililies. Th1$ dewlplon form8 part of our audllorfs report. Exl•nt to whlch th• audlt wa• ¢on8ld•r•d wabl• of d•t•ctlrng lrr•gularltl, Includlng frnud Irregularltle8. Sncludlng fraud, are In8tance8 of nonwcompllance wSth laws and regulallon8. We Identwled and assessed the rl8ks of malerlal ml88talemenl of the flnanclal 8latements from Irregu18rllles, whether due lo fraud or emr, and dlscussed these between our audll laam membar8. We than deslgned and perfomied audit procedures responsive to those dsks, Induding oblalnlng audlt evldence sufflclent and approprtate lo provide a ba818 for our opinlon. We obtained an under8landlng of th8 legal and regulatory framework8 wllhln whlch the charitable company operato8. focusing on those law8 and regulations that have a direct effect on the determlnallon of material amounts and dlsclo8ure8 in the financial slatem8nl8. The laws and regulallons we considered in this context were the Companles Act 2008. the Charllle8 Act 2011 and The Charllies and Tru8tee Inve8tment (Scollandl Act 2005 together wlth the Charllles SORP IFRS 1021. We assessed the requlred compllance with these laws and regulations as part of our audll procedures on the related financlal slalemenl Items. In a(idllion, consldered provisions of other laws and regulations that do not h8ve a direct effect on the fi'nancial slalemenls bul compliance wllh which might be fundamental lo the charitable company's abllily lo operate or to avoid a malerSal penalty. We also considered the opportunllles 8nd incentives that may exist hthIn the charftable company for fraud. The laws and regulallons we consldered In this context wwe General Data Protecllng Regulallons and S8feguarélng of young people and vulnerable adults. Audlting 8tandard8 Ilmit the required audit procedures to Klentrfy non-compliance wtth these laws arKI regulations to enquiry of the Trustees and other management and in8P8Ctlon of regulatory and legal correspondence. rf any. 13
Crowe A
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: 24 November 2022
14
CVQO LIMITED STATEMENT OF FINANCIAL ACTIVITIES AS AT 31 JULY 2022 COMPANY NUMBER 5736932 unStrICted Deslgnaled Restrthd funds fund8 Funds Totsl 2022 Total 2021 Not08 INCOME AND ENDOWMENTS FROM: Oonallons and legacies Charll8ble activities Other trading activitie8 Income from inve81men18 Other Income 9,408 3,500,000 208,929 41,733 9,408 21,992 3,521.992 208.929 41,733 46.105 3,518,772 t 17,852 43.342 19,880 Total Ineomlng rn•ourc•• EXPENDITURE ON: Expenditure on rai8ing fund5 Investment manager expenses Expenditure on charltabl aclivitl88 8,123 8,123 7.717 3,513,143 132.761 23.872 3,169,066 3.743,027 T¢)tsl mour8 •xp•nd•d Net Ilosses118alns on Snvestments N•t Incomellexpendltur•) 174,524 (132,751) 11,680) 40,093 210.530 Transfer between funds NET MOVEMENT IN FUNDS 229,844 1188,0711 11,880) 40,093 210,530 Tolal fvnds brought fonvard Total lund8 carried forward 21 All of the above results are derived from continuing activities. The Charity has no other recognl8ed galns and losses other than those slated above. The notes on pages 18 to 30 forni part of Ihe¥e finanGi31 statements. 15
CVQO LIMITED BALANCE SHEET AS AT 31 JULY 2022 COMPANY NUMBER 5736932 2022 2021 Notes FIXED ASSET8 Tangible assets Inv88tments 12 13 65,732 75,628 1,190,469 1.238,487 CURRENT A88ET8 Debtors Cash al bank and in hand Short tem investments 14 84,862 1,960,580 59.889 2,538,908 3,016,071 2,923,721 CREDITORS: amounts fallino dua within onayear NET CURRENT ASSETS TOTAL A88ET8 LE88 CURRENT LIABILITIES 3,870,992 3,818,899 Provi8ion8 26 NET ASSETS FUNDS Reslrlcled funds 20 17,520 19,200 Unre8trlctodfundA: Deslgnated funds 19 1,IX12,935 1. 191,IX16 Gener81 fund8 2,700,537 2.470.693 21 Approved and aulhorl3ed for18sue by the Board of Dlrectors on behalf by.'- U Nk'i&bv 2ILL ond signed on i The Lord Lingfiekl KT DLI Trustee MrJ Trus hnDo yTDACA The notes on pages 18 to 30 fom part of th8se financial 8talements. 16
CVQO LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2022 2022 2021 Not85 Cash flows from oporatlng actlvltle•: Nel cuh provldedl(used) by oparntlng actlvlll 17 79,083 263, 126 Net cuh u•od In Invutlng actlvllle• Purchase of tangible 8888ls Investment income Purchase of inve8lmonts (including reinvested dividends) Bank Interest re{vable Purchase of Short term Inve8tm8nt8 (27,083) 34,160 (33.405) 35,803 126,156) 7,073 (28.749) 7,539 N•t ca•h u••d In Invutlng actlvltl Changg In ¢ash and ca•h •qulvalonts In th• r•portlng p•rlod N•t Fund• r•condll•tlon: Nel fund8 8111t Augu81 IDe¢ro860yincre88e In rA8h In the year 2,S36,966 2,298, 742 N•t fund• at 31•t July Analy81• of ca•h and ca•h •qulval•nl• C8$h In hand The notes on pages 18 to 30 lon part of the88 financlal slatem8nts. 17
CVQO Llmited NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 COMPANY INFORMATION The principal activity of the Charity is lo advance the education and training of youth and adurt m8mbers of youth rnovements and schools to enable them to obtsin v¢xational qualifications. The Charity (registered number 1115234 and charity number 057389321 18 incorporated and domiciled in the UK. The address of the regi8tar8d offKe is 3 Archipelago, Lyon Way, Camberley, Surrey, GU16 7ER. ACCOUNTING POLICIES Ba•h of pr•paratlon The financlal Statements have been prap8red In accordance wlth A¢¢ountlftg and Reportlng by Charitie8'. Statement of Recommended Practice applicable to chariti88 preparing their accounts In accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021 (effective 1 January 2019) - Charitl8s SORP IFRS 102), the Financlal Reporting Standard applicable In the UK and Republlc of Ireland IFRS 102) and the Companles Act 2008. The Charity meet8 the deflnitlon of 8 publlc benefit 8ntSty under FRS 102. Assets and li8bllltie8 are Inllially recognlsed at hi8lorlc81 )St (Y transadon value unless olhep•v188 stateo In the relevant accounting policy note. Golng eon¢•rn The Trustee8 have considered a range of $¢enarlo3 that may sU11 from hlgh leve18 of infflalion, prolonged disruption cauged by the Coronavlru8 pandemic and olher rlsks. They have 8ssèssed the effect on CVQO Llmiled'8 ca8h flow and reserves and conslder Ihal there Is a rea8on8ble expectslion that the Charity has a¢Jequote resources to contlnue In operallonal exlstence for th8 foreseeable future. For Ihls re88on, the Trusteos ¢ontlnue lo adopt the 'going concem, b88is In ep8rlrvJ the accounts. b) Incomo and endov•7nent All Income Is recognlsed once the Charlly has entlllement to the Income, il Is probable that the Income will be received and the amount of Income reeelvable can be measured reliably. Donal8 are reeognlsed when the Charity has been rntifth in WTitsng of both the amouTrt and settlementdale. In the event that a donation is subject to condition8 that requlre a level of Ferfomianc bef8 the Charty Is enlthd to the funds, the IrK¥Jme Is deferred and recognised until eilher those crnditions are llY mel. or the fuffilmenl of those Conditr$ is wholly v¥ithin the control of the Charity and It Kffobable that those conditions will be luffilw in the rep(Yting perbd. Grant Incom8 is induded whèn the related condition for legal enlitlemenl to the grant ha8 been rnel. Resouices received relating to a future period will be deferred to the 8Xtent that they do not relate to the currenl accounting period such as where grants have been made for a 8pecrflc number of learners and not all leamers have been registered wthin the year. During the year the Charity received £nil (2021.. £19.880) from the UK Govemmenl under the Coronavirus Job Retention Scheme. 18
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 c) Expgndtturn Liablrties are recowised as expendblu as soon asthere Is a legal oru)truc¥e obligation Lyjmmitting the Charity lo that expenditure, it is probable Ihal seltlement wll be and the amount of the obligalK)n can be measured reliably. Al expenditure L8 aw)unted fw on an acrJua18 basi8. Costs relatirKJ to chts8 a¢tMlles Indude ell ¢0818 Inwrred in the directfurtherance of the CharTiIs oblectwes. IrreLoverable VAT is charged against the expernliture heading for whth It VAS irrred. d) Tanglbh Ilx•d a•sot• and dopr•clatlon TwvJitAe f8d a586ts ar8 Staled at Cosl loss depreclatlon. OeFffe¢latlon 18 provided al rate8 calculated lo write off the etht le8s estimated residu81 value of each asset over Its expected useful lrfe, as followz.. Building Improvements Computer Equlprnenl Fixtures, ffittings & equipment Length ol the remaining lease temi 33.33°/o Slralght Line Method 25% Straight Line Method Items under £250 are not caprtalised. •> Ca•h and caBh •qulvalent• Cash 18 represented by cash in hand and deposlt8 wllh finonciol In8lilution8 repayable wlhout penalty on notice of not moffj than 24 hours. Cash equivalents are hlghly Ilqukl Inve81ments that matur8 in no more than three months from the dale of acqulsition and that are readlly convertlble lo known amounts of cash with insignificant ri8k of change In value. 8hort tom) Inve•lments Short tern investmènts Include cash invested In deposit accounts avA881ble Vdrthin &12 months. g) Ll•tod InvoBtment• Investments are a form of basic financial instrument and are initialty recorded al their IransaGtion value and subsequentty ¥alued at closing mid-mart(81 Value at the Balance Sheel dale. Ary gain or k>ss on revaluation is taken to the Statement of Finan¢lal ActlI1e$. Onty extemal injections of cash and wtthdrawals of c88h from the investment p(xtTolio are treated as addrtions and disposals within Note 13. h) Flnancl•l Instruments The Charity holds only flnancl81 a88ets and financial liabilities of a kind that qualrfy as basic financial instrument6. Basic financlal Instruments Include debtors and creditors. Debtors and cffjditors are initially re¢ognised al Iransacllon value and Subsequently measured at amortised 051. Note 22 provides more infomiation on flnanclal Instruments where future cash flows are anticipated, with financial assets referring to fixed asset investments and debtor balances excluding prepayments, and financial liabilities referring to all credllor balanc88 exdudSng deferred inccKne and other laxalion and 60clal securlty.
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 Accumulated lund8 General funds are funds whlth can be u8ed In accordance wlth the charftsble oblect8 8t the dl8cretion of the Trustees. Restricted fund$ are $ubJecl to Spec condltions by donors as lo how they may be used. The purpo8e8 and uses of the restricted funds are 88t out in the notes to the aecounts. D85ignaled funds comprise furKls vthich have baen set askle at the discreth)n of the Tru8tee8 for sp8crfic purpo8e8. The purp)8 and uses of the deslgnated funds are get out in the notes 10 the accounts. Laaslng and hlr• purchue commttments Rentals payable under operating leases are charged agalrnt Income on o stralght Ilne be818 over the perlod of the 1888e. P•n•lon• The Ch8rfjty operates two defird conlrlbution pension 8cheme8. Contrlbullon8 are charged In the account8 as they become payable In accordance vAlh the of the scheme. Provhlon• for lbIlItI• Prov181on8 are recogn5Bed when the enllly has an oblig81ion at the reportlng dale as a result of past evenl, It Is probable that the enlily wlll b8 requlr8d lo Ir8n8fer economlc ben8fits In 8elllemenl and the amount of th8 obllgallon cBn b8 8sllmaled r&llably. Provl$ion8 am Inltlally measured al the besl e8tlmate of the amount requlred10 settle the obllgalion and are revlewed al each reporting date. Any 8dlu8lm8n18 to rnfiecl the current be8t estimate a re¢ogn189d In Ihe Sletement of Financlal Acllvilie$. 810NIFICANT JUDGEMENTS AND ESTIMATES In the applScallon of the CharltW8 accounting pollcle8 the Trustees are required to make ludgemenls, esllmal85 and assumptlons 8boul the carrylng values of assets and liablllll88 that are not readlly apparent from other source8. The esllmates end underlylng a88umptions are b88ed on hislorfcal experience and other factor8 that are consldered to bo relevant. Actual results may differ from these e8timate5. The eslimales and underlying a$$umplion$ are reviewed on an on-going b88is. Revision3 10 accounting 88timales are recognised in the period in which the estimate is revised rf the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future period8. The Trustees consider that thera arn no material Judgements in applying accounting policies or key sources of esllmation unc£rt8lnty. 20
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 DONATIONS Unmtrlctod Do8lgnatad ReBtflct•d funds fundB fund8 Total 2022 Total 2021 LegacS88 Grants receivable for core 8Ctivilie8 tk>nallon8 and g5ft8 8,000 8,000 25,500 Grants recelvable for core actlville8.' Grant ISc4)Ilandl Adult contrlbullon- ATC Adult contrlbulbon- SCC 3.500 14,000 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unr4•trlct•d O••lgnat•d R••trlctod fund• fund• fund• Total 2022 Tolel 2021 Contract Fundlng Other Re81Ticled 3,500,000 3,500,000 21 3.&XI,000 Total 2022 Tot 2021 Contracls Funding relates to.. Educatlon and Skills Funding Agency contract Induded withln income r&l81ing to OtherRestrl¢ted are the klOWIng grants FurKI generatSon- Reslrlcled Devolved Nations Fund generallon- Restricted Scotland FurKI generatlon- Restricted Northem Ireland FurMI generatlon- Llon Award Fund generatlon- Wesbmlnster Award 3,270 7,521 11,118 2.804 4,251 21
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 INVESTMENT INCOPAE Total 2022 Tot81 2021 Income from inve8lmenls Interest receivab18 34,160 35.803 OTHER INCOMING RESOURCES Total 2022 Tot81 2021 Coron8vlru8 Job Relentlon Schemo grant TOTAL RESOURCES EXPENDED Staff D•pr•clatlon Oth•r Total 2022 Total 2021 Investment m8nager expen888 8,123 8,123 7,717 Ch•rlt•bl• •¢tlvlll•• Education & Irainlng actlvltl88 undertaken dlreclly 41 74 Govwnance costs Indude costs of £13,800 (2021.. £12,GOO) for audll fee8.
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 COMPARATIVE STATEMENT OF FINANCIAL ACTIVrnE8 Unr&Str19d lunds De8lgn8ted fvnds R8strlct8d Funds Totsl 2021 INCOMEAND ENDOWMENTS FROM.. Don8tlons 8rAI l&g8cles Gh8rit8bb activit5 Other trading activilies Income from investments otherlncome 8,605 3.500,000 IT7,852 43,342 19,880 37,500 46.100 18,772 3,518,772 177,852 43,342 19,880 Total incominq resources EXPENDITURE ON.. Expénditum on raising funds Investment manager expenses Expondituro on charitabla aGtivities 7,717 7,717 3.803,297 100,258 39,472 3,743.027 Total resources 8xp8nd8d Net qolns/(losses) on Investments Net Income/(expendltureJ 293,988 (100,258) 16,800 210,530 Tr8nsl8r between lunds NET MOVEMENT IN FUNDS 393,988 (200,258) 16.8IXI 210,530 Total fvnds brought forward Total fvnds cerrfed fOard 10. TRUSTEE8 None ofthe Trustees (or any persons connected with them) received any remuneration duri theyear, and 5 {2021.' ofthem were reimburned £1.941 {2021.' £Alil) travelling expense8. 23
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 11. EMPLoYee8 Number of employees Th8 averag8 monthly numbor of employees during the year was.. 2022 Numbor 2021 Numbgr Educallon and TraSnlng Included Inthe average monthty number ofempty8e8 above are 9{2021.' 1¥ parttime employees ith equivalant hour8to 4 (2021.'9 fulltime employees. 2022 2021 Wages and 8alarles Social Securlly costs Other pen8lon eo818 1,725,606 177,692 1,780,911 l T4,580 The wages and 8alarie8 figure Include8 r8dundarw payYn8nts of £10,731 (2021.. £25.839). The amount of remuneralknn eamed by dlreclor8 and Iru8leo8 In Ihe year wa8 £nll {2021.' £nll). The number of ernployee8 whose annual remuneration was £80,000 or rrnrewerg.. 2022 Numb•r 2021 Number £100,000-£109,999 £9).000 - £99,999 £80.000 - £89,999 Of the employe wh08e emoluments exceed £60,000, 3 {2021." 3) havo retlremenl benefrts accruing under defined contribullon pen8lon sch&m88. Contributions lotalling £27,81312021.' £26,400) were mad8 to defined ContrIbutK penslon 8cheme8 on behalf of employees whose emolumenls exceed £60.0. The k8y management personnel of the Charity are noted on page 1. Aggregate employee benefrt8 of key management P8r80nnel for the year was £340,070 (2021." £341,579). 24
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 12. TANGI8LE FIXED ASSETS Land & Computer Bulldiny Equipment Flxlure8, flitings & equipment Total At t August 2021 Addltion8 Dlsposals 55.975 249,625 26,424 114.647 420,247 27.083 At 31 July 2022 Deprecialk)n Al l Auoust 2021 Charg8 for the yaar On dlsposals 16,419 8.956 217.479 24,831 110,723 1,295 344.821 35,082 12 990) At 31 July 2022 71 N81 book valuè At 31 July 2022 At 31 July 2021 13. INVESTA*NTS 2022 2021 Market velue at l August Reinve818é dividends net of investment management fee8 (8xclude8 accrued dlvld8nds) Net unre81188d Inve8tment11088è8ygaln8 1,182,861 978, 789 26,166 28. 749 Market valu8 at 31 July Hlstorlc cosl {In¢ludlng c88h) The follovAng Investment wn8lllutes more than 5% of the market value of the portfolto.. 2022 2021 Vangu8rd S&P 500 UCITS ET USD DIS Fidelity UCITS ICA US Qual INC UCITS ETF GBP 59,981 25
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 14. DEBTORS 2022 2021 Trade debtors Prepayments and accrued Income 15,195 15,984 1& CREDITORS: AMOUNT8 FALLING DUE WITHIN ONE YEAR 2022 2021 Trade ¢redltor8 Taxes and 80c(818ecurlty c08ts Accruals Defarrad Income (note 18) 95,914 48,506 98,405 72,582 47,841 117,200 16. DEFERRED INCOME Deferred income re18tes to grants recelved for wolect8 whlch have not yet been Started or are partlally completed. Th8 mov8menl8 durlno the year wor6.. 2022 2021 88lanco at l Augusl Amoun18 received Amount8 Utlllsed 105,886 7,980 89,748 51,210 Balanc• at 31 July 17. RECONCILIATION OF NEf INCOME TO NET CASH PRoinDED BY opeRATING ACTIVITIE8 2022 2021 Net Income for the reportlng period Depreclalion Inte$t received Income from investments Unrealised {gainsylosses Loss on disposal of fixed asse18 {Increa$eyde¢rease in debtors {D8creaseyincrease in ueditors Incre85e in provisions 40,093 35,082 (7,573) {34.160) 64.280 1.895 {24.773) (7,761) 210,530 47,451 (T,539) (35,803) (155,323) 71,919 (6,109) ush provld•dl(usedl by 0ratIng actlvltlo• 26
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 18. PENSION AND OTHER POST-REfiREMENT BENEFIT cOmMITkErs The Charity operate8 t%w) defined ntributIOn p8nsion sch8mes.50 {2021'. 49) m8mb8rs have benefits accruing under the schemes. The assets of the schemes are held separately from those of tho Charity In independenuy administered funds. Tho pen8ion charge represents contributions payable by the Charity to the funds. 2022 2021 Conlrlbutions lo defined ¢ontrlbutk*n penslon scheme8 19. DESIGNATED FUND8 8818nce al l August 2021 Incomlng R88ourc66 resouTh8 OXP8nded Transfer8 Bal•nc• at 31 July 2022 Scolland and Adult MOD C8de18 and Adults 55,672 {362) {55,3201 The de8lgnated funds of the Charlly relate8 to the follo%n9'. £NII (2021.. £55,872) has been deBignated to be u80d In Scotland and on Adull courses. Th1$ fund 18 no longer required. £1.002.935 f2021.' £1, 135.334) which was 8el aslde out of unr8stfl¢ted funds by the Truste85 for the speclfic purp08e of providing training to MOD Cadets ané Adults. Thls Is expo¢ted lo be used over th8 next fwe years. DESIGNATED FUNDS Comp•ratlv• y•ar 2021 Balanc• at IncomlrKJ Resources 1 August rnsources 8xpgnded 2020 Translers B818nce at 31 July 2021 Scotland and Adult Dilapidations MOD Cade18 and Adults 56.909 100.000 (1.237) 55,672 {7,00) 21 27
CVQO LIPIIITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2021 20. RE8TRICTED FUND5 The funds of the Charfty includ8 r851ithd furKls c(ffipiising the followlng unexpended balances of dondons and grants held for specthc purp08es'. B818nce 81 l August 2021 InrnIng resources Resource8 expended 8alanc• al 31 July 2022 08volved Nation8 Northem Ireland BCBN - Lion Award Bra(fftird The UIy8se8 Tru81- W88tmlns18r Award Nottlnghamshire and Lln¢oln8hlre 3,270 11,118 2,604 {3,270) (11,118) {2,804) 5,000 {5,000) Resldded fund8 relate to income glven In 8UPPOrt of 8pectllc cohort8 of Students be Ih8t defined by geographical location. cour8e ti118. 8pecific group development or 81udent need8. RESTRICTED FUNDS Comparatlv• year 2021 The funds of the Charfly IrU8 re$lrict8d funds ciJmprl8ing the following unexp8nd8d balarK88 of donallons and kyanls held for 8pe¢ific purpose8'. Ba18nc8 8t l August 2020 InGoming resources Resources expended 8al8n¢e 81 31 July 2021 D&volvgd Natlon8 Northem Irelend S¢otl8nd Islg of Man Noltingh8mshlre and Llncolnshlre 7,521 4,251 24,500 (7,521) (4,251) (24.500) (2.400) 2,400 21. ANALYSIS OF NET APJ8ET8 BETWEEN FUNDS Unregtrlcted Dmlgnatod R••trlet•d funds fund• fund• Total Tangible fixed assets Current assets Credllors.. amounts f8lllng du8 wlthin one year Credllors.. amounts falllng du8 after one year 1.190,469 1,995,616 1,190,469 3,016.071 1.002,935 17,520 {335,548) (335.548) 150 000) 28
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 21. ANALY818 OF NET ASSETS BETWEEN FUNDS Comparatlvg year 2021 (contlnuod) Unr•strldod D•Blgnatod R••trlthd fund• fund• fund• Total Tangible fixed assets Current assets Credllor8'. amounts falllng due wllhin one year Provl8lon8 1.238,487 1.713,515 1,238.487 2,923.721 1.191,006 19,200 (343,309) (343,309) 22. FINANCIAL INSTRUMEKf8 2022 2021 Fln•ncl•l a•••t• Financial assets measured at falr value Financial assets me8SUfed at amortlsed eogl 1,124,737 1, t62,881 Flnancl•l Ilablllti Finan¢i81 liabillties measured at amortlsed cosl Flnanclal 888ets me88ured at falr value are Inveslmonls. Flnanclal 888els measured 8t 8mortl$ed cost comprlse trade deblor8, olhw debtors, accruéd Income, cash and cash equivalents and short term Investments ex¢ludlng prepayments. Flnanclal Llabi151188 m•88umd al amortl88d cost compr18? trade credllor8, olhef tyedltors, FYov181on8 and accruals excludlng deferred Income and other taxalion and 8oclal securlty. 23. COMMITMENTS UNDER OPERATING LEASES At 31 July 2022 the Charity had annual commltments under non-cancellable operallng leases as follows- Land and bulldlng• 2022 2021 oth•r 2022 2021 Explry dale.. Le55 than one year Between twj and five years In over five years 128.071 288,511 128,071 416.582 14,581 44,613 18,021 41.228
CVQO LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 JULY 2022 COMMITMEP At the year end, CVQO Ltd had contracted caprtal conynltments of £NII12021.' £NII). 25. RELATED PARTY TRANSACTIONS During the year CVQO Ltd had no related party transaction• to di8cIo88. 2& PROVISIONS Tho psbOn rolate8 to potenllal dllapldatlon8 Ilabllltles at CVQO Ltd propertle8.