2023-07-31-accounts - Education For Industry Group

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Contents	Page number
Senior postholders, Board of Governors and Professional advisers	3
Governors' Report (including Strategic Report)	4
Statement of Corporate Governance and Internal Control	16
Governing Body's Statementonthe Academy's regularity, propriety and compliance
with funding body termsandconditions of funding	20
Statement of Responsibilities of the Members of the Board	21
Independent Auditors' Report to the MembersofFashion Retail Academy	22
Consolidated Statement of Comprehensive Income	25
ConsolidatedandAcademy Statement of ChangesinReserves	26
Balance Sheets at31July 2023	27
Consolidated Cash Flow Statement	28
Notes to the Financial statements	29

A
	2018/19 Achieved	2019/20 Achieved	2020/21 Achieved	2021/22 Achieved	2022/23 Achieved
Total enrolments (accredited provision)	1638	1767	1833	2002	2203
% Annual increase	22%	8%	4%	9%	10%

B
	2018/19	2019/20	2020/21	2021/22	2022/23
Traditional	980	1137	1204	1384	1518
Fast Track	196	64	90	62	43
HE	211	335	337	363	344
Apprenticeships	251	231	202	193	246
Online	-	-	-	-	52
	1638	1767	1833	2002	2203

TABLE C
Age	Year	Level 2	Level3 including National Diplomas	Level 4	Higher Education	Apprenticeship	Online	TOTAL
16to 18- year olds	2022/23	53	1239	123	85	37	2	1539
	2021/22	78	1036	149	68	24		1355
	2020/21	61	826	161	61	20		1129
	2019/20	59	676	163	57	47		1002
	2018/19	72	598	252	50	57		1029

19+ year olds	2022/23	0	25	121	259	209	50	664
	2021/22	1	31	138	295	169		634
	2020/21	0	17	205	276	182		680
	2019/20	1	39	263	278	184		765
	2018/19	-	40	214	161	194		609

All students	2022/23	53	1264	244	344	246	52	2203
	2021/22	79	1067	287	363	193		2002*
	2020/21	61	843	366	337	202		1809*
	2019/20	60	715	426	335	231		1767
	2018/19	72	638	466	211	251		1638

	FEmainstream students	FEmainstream students	FEmainstream students	FEmainstream students	FEmainstream students
Academic Year	18/19	19/20	20/21	21/22	22/23
Retention	87.1%	84.8%	91.6%	88.5%	91.0%
Pass	96.4%	96.7%	99.7%	98.0%	97.8%
Achievement	84%	82%	91.0%	86.7%	89.0%

Online Students	Online Students
Academic Year	2022/23
Retention	87%
Pass	90%

undergraduate degrees:
	First Class	Upper Second	Lower Second	Third
BusinessManagement	19%	44%	25%	0%
Buyingand Merchandising	33%	42%	21%	0%
Marketing and Communication	25%	42%	26%	1%

Work Placements	389 placements over61brands - L'Occitane, Kurt Geiger, SkinnyDip,M&S,HugoBoss
Careers Fairs (October/May x2)	44brands - QVC, Liberty, Estee Lauder, Dior, Pandora
IndustryProjects	17brands across101projects (at group level) - Accenture, Browns, Oliver Bonas,L'Oreal
Masterclasses	199 talks across53brands (at group level) - Ralph Lauren, Dr Martens,WGSN,Amazon,Farfetch,Ikea
Higher Education FMP Panel	18panellists across12brands-ASOS, M&S, Amazon, Browns, End, JLP
HEMentoring (Year1)	98mentors across37brands - Dressipi, Hypebeast, Karla Otto, Tesco, John Lewis,HarveyNichols

March 2023	4HEcurrent degree course re-approval panel event - Urbn,Ralph Lauren,Fortnum & Mason,HarveyNichols
September 2022 & January2023	New online courses launched - ASOS, M&S, Dressipi, Live Unlimited
FEContinuous course enhancement	Space NK, LKBennett,New Look

were as listed below:	were as listed below:	were as listed below:	were as listed below:	were as listed below:
AcademyBoardMembers durinq 2022/23
	Date of Appointment/ Dates Served	Term of office (years)	Committees Served	Board meetings attended/ possible
KimLongman Chair	13July 2005 Reappointed 13 July 2008,12July 2011, 11June 2014, 9 March 2017 and 2 July 2020	3	Finance	3/3
James Barron	2 December 2018 Reappointed 9December2021	3	Audit	3/3
Laura Charles	27 June 2017 Reappointed 2 July2020	3	Quality	3/3
Linda Drew	4 February2022	3	Quality	3/3
Fiona Gaughan	2 December 2018 Reappointed 9December2021	3	Finance	2/3
SallyHarris	11January 2021	3	Finance	3/3
Susanna Kempe	3 March2021	3	Quality	3/3
Lee Lucas (Principal)	6 October 2014	n/a	n/a	3/3
Elaine Smith	11June 2014 Reappointed 9 March 2017 and 2 July 2020, retired 29 November 2023	3	Quality	3/3
Vanessa Spence	2 December 2018 Reaooointed 9December2021	3	Quality	3/3
Pauline Tambling	18May2021until 1 December 2023	3	Audit	3/3
Simon Williams	30May 2022	3	Audit	3/3

Report and Consolidated Financial Statements for the year ended 31 July 2023

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FASHION RETAIL ACADEMY (CONTINUED)

and Higher Education 2019 (the 2019 FE HE SORP) and in accordance with Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland" (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the academy's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the academy and the group for fraud. The laws and regulations we considered in this context for the UK operations were health and safety regulation, taxation legislation, employment legislation and General Data Protection Legislation (GDPR).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Governors and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the 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 Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals; tested the application cut-off and revenue recognition, particularly around revenue grants from ESFA, tuition fees and donations; reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and Ofsted; and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the academy's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the academy's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to ' anyone other than the academy and the academy s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jayne Rowe

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP Statutory Auditor London

Date: 30 January 2024

Note Income Funding Body Grants 2 Tuition fees and Educational contracts 3 Other income 4 Donations 5 Total income Expenditure Staff costs 7 Other operating expenses 9 Depreciation and 10 amortisation Total expenditure (Deficit)/Surplus before other gains/(losses) Gain/(Loss)ondisposalof assets (Deficit)/surplus for the year 14 Total comprehensive (loss)/income for the year* Unrestricted comprehensive (loss)/income	Unrestricted Year ended Funds Restricted 31July Funds 2023 Group £'000 10,421 144 10,565 3,430 121 3,551 272 272 14,123 265 14,388 6,211 6,211 7,396 318 7,714 733 733 14,340 318 14,658 (53) (217) (270) (217) (53) (270) (217) (53) (270) (217) (53) (270)	Year ended31 July 2022 Group £'000 7,683 3,869 69 1,879
		13,500
		5,268 6,136 641
		12,045
		1,455
		1,455
		1,455 1,455

Group&Academy Balance at 1st August2021 Surplus from the income and expenditure account Total comprehensive income for the year Balance at 31st July 2022 Deficit from the income and expenditure account Total comprehensive income for the year Balance at 31st July 2023	Income and Expenditure account- Unrestricted 4,817 1,537 Income and Expenditure account- Restricted £'000 167 (82) Total £'000 4,984 1,455
	1,537 (82) 1,455
	6,354 (217) 85 (53) 6,439 (270)
	(217) (53) (270)
	6,137 32 6,169

Academy 31July 2023 £000 1,462 1,462 1,251 4,733 5,984 (1,277) 4,707 6,169 6,169	*Group* *31July 2022* *£000* 63 *3,704*	*Academy* 31July*2022* *£000* 63 *3,704*
	*3,767*	*3,767*
	*806* *4,798*	*842* *4,762* *5,604* *(1,892)* *3,712* *7,479* *(1,040)* *6,439* *6,354* 85 *6,439*
	*5,604* *(1,892)*
	*3,712*
	*7,479* *(1,040)*
	*6,439*
6,137 32 6,169	*6,354* 85
	*6,439*

Note Cash inflow from operating activities (Deficit)/Surplus for the year 14 Adjustment for non-cash items Depreciation 10 Impairment Loss Disposals Decreaseindebtors 11 (Decrease)increditors due within one year 12 Release from Capital grants 2 Adjustment for investing or financing activities Interest payable Net cash inflow from operating activities Cash flows from investing activities Payments made to acquire fixed assets 10 Net cash outflow from investing activities Cash flows from financing activities Interest paid Net cash outflow from financing activities Increaseincash and cash equivalentsinthe year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year		2023 £'000 (270) 733 2153 (330) (615) (1,040) 14 645		2022 £'000 1,455 607 34 272 (349) (335) 5
				1,689 (1,119)
		(584) (584)
				(1,119) (5)
		( 11) ( 11)
				(5) 565 4.233 4,798
		50
		4,798 4,848

Education Funding Agency SkillsFundingAgency Council Funding ReleaseofdeferredLSCcapital grant ReleaseofdeferredGLAcapital grant	Unrestricted Restricted Year ended31 Funds Funds £'000 £'000 8,240 144 564 242 1,108 267 10.421 144 July 2023 Group £'000 8,384 564 242 1,108 267 10,565	Year ended31 July 2022 Group £'000 6,366 894 88 313 22
		7,683

UK Further Education students HE degrees income	Unrestricte Restricted d Funds Funds £'000 £'000 554 2,877 120 3,431 120 Yearended Year ended 31July 31July 2023 2022 Group Group £'000 £'000 554 681 2,997 3,188 3,551 3,869

Sundry other income	Year ended 31July 2023 Group £'000 272 272	Year ended 31July 2022 Group £'000 69
		69

Gift aid from GresseSt.	Year ended 31July 2023 Group £'000	Year ended 31July 2022 Group £'000 1,879
		1,879

Average numberofstaff Teaching staff Student support and Curriculum Services Staff Academy support staff	Year to 31July 2023 169 FTE's 50 45 46 141	Year to 31July 2022 154
		FTE's 43 37 37
		117

Staff costs
Wages and salaries Agency staff Social security costs Other pension costs Teaching departments - teaching staff Student support and Curriculum Services staff Academy support staff	Year ended 31July 2023 Group £'000 5,490 12 526 188 6,217	Year ended 31July 2022 Group £'000 4,635 12 476 145
		5,268 Year ended 31July 2022 Group £'000 1,650 1,750 1,868 5,268
	Year ended 31July 2023 Group £'000 1,972 2,092 2,147 6,211

£60,001to£65,000 £65,001to£70,000 £70,001to£75,000 £75,001to£80,000 £80,001to£85,000 £85,001to£90,000 £90,001to£95,000 £95,001to£100,000 £175,001to£180,000	2023 2 1 1 2 2 10	2022 2 1 2 1
		8

The numberofseniorpostholders was: Seniorpost-holders' emoluments are made up as follows: Wages and salaries Social security costs Pension contributions Yearto 31July 2023 Number 8 Yearto 31July 2023 £000 702 90 48 840	Yearto 31July 2023 Number 8	Year to 31July 2022 Number 7 Yearto 31July 2022 £000 650 83 39
		772

Wages and salaries Social security costs Pension contributions	Yearto 31July 2023 £000 179 24 27 230	Yearto 31July 2022 £000 177 24 27
		228

9. Other operating expenses Teachingsupportservices Other supportservices Administrationandcentralservices Rent Premisescosts Impairment Other operating expenses include: Auditors'remuneration: Audit of FinancialStatements* Internal Audit Operating leases: Hireofplantandmachinery Hireofotherassets	Unrestricted Restricted Funds 793 119 2,328 1,272 732 2,153 Funds 318	Year ended31 Julv 2023 Group £'000 1,110 119 2,328 1,272 732 2,153 7,714	Yearended31July 2022 Group £'000 794 78 1,551 3,067 642
	7,396 318		6,131 Yearended31July 2022 Group £'000 17 3 3,067
		Year ended31 2023 Group £'000 1 2

TANGIBLE ASSETS Leasehold Improvements £000 Cost: At1 August 2022 7,990 Additions 5 Disposals At31July2023 7,995 Accurrulated depreciation: At1 August 2022 5,497 Charge fur year 399 Impairment 2,099 At 31July2023 7,995 NetBookValue At 31July2023 0 Finaneedby capital grant 1,888 Finaneeby other At31Julf2022 2,493 INTANGIBLE ASSETS £000 Cost: At1 August 2022 101 Additions Transfers At 31 July2023 101 Accurrulated depreciation: At1 August 2022 38 Chargebryear 63 Disposals At31July 2023 101 Net book value At 31July2023 0 At31Julf2022 63	Computer Equipment £000 1,737 184 1,921	Fixtures & Assets under Fittings Construction £000 £000 1,224 684 80 314 3 1,301 998 1,060 59 53 1,172 128 998 128 998 164 684		Total £000 11,635 583 3
				12,215
	1,374 213 1,587			7,931 670 2,152
				10,753
	335			1,462 1,888
	335
	363			3,704
	Assetsunder Construction £000			Total £000 101
				101
				38 63
				101
				0
				63

Amounts falling due within one year: Trade debtors Other Debtors Amounts owingfrom ESFA / SFA Amounts owing from subsidiary Prepayments and accrued income	Group Academy Year to Year to 31July 31July 2023 2023 £000 £000 465 465 108 108 115 563 563 1,136 1,251	Group Academy Year to Year to 31July 31July 2022 2022 £000 £000 557 557 36 249 249 806 842

Trade creditors* Accruals Other creditors including taxation and social security Staff annual leave entitlement Deferred income Deferred capital grant	Group Academy Group Academy Year to Year to Year to Year to 31July 31July 31July 31July 2023 2023 2022 2022 £000 £000 £000 £000 317 317 675 675 218 218 302 302 211 211 175 175 10 10 10 10 521 521 395 395 335 335 1,277 1,277 1,892 1,892

Creditors: amounts falling due after more than one year: Deferred capital grant	Group 31July 2023 £'000	Academy 31July 2023 £'000	Group 31July 2022 £'000 1,040 1,040	Academy 1 July 2022 £'000 1040
				1,040

At 1 August 2022 (Deficit)/surplus for the year At31July 2023	Group and Academy Year to31 July 2023 £'000 6,439 (270) Group and Academy Year to31July 2022 £'000 4,984 1,455
	6,169 6,439

At 1 August 2022 Income £000 £000 FELearner Support Funds (25) 144 HEBursaries 68 120 Retailers Donations & Bursaries 39 Student Funds 2 Residential Housing Scheme 1 85 263 16. Analysisofchangesinnet funds (Group) At 1 August 2022 £000 Cash at bank andinhand 4,798 4,798	At 1 August 2022 Income £000 £000 (25) 144 68 120 39 2 1 85 263	At 1 August 2022 Income £000 £000 (25) 144 68 120 39 2 1 85 263	Expenditure £000 198 120	At31July 2023 £000 (78) 68 39 2
			318	32 At 31July 2023 £000 4,848 4,848
		At 1 August 2022 £000 4,798 4,798	Cash flows £000 50 50

Fund balances at31July 2023 Fixed assets Current assets Current liabilities	Unrestricted £000 1,462 5,952 (1,277) 6,137	Restricted £000 32 32	Total £000 1,462 5,984 (1,277)
			6,169

For the Group	31July 2023	31July 2022
	£000	£000
Total expenditure incurred with UAL for12months ending	194	160
Creditors balance with UAL at 31/07/2023:		10
Total expenditure incurred with Longman Consultancy for12
months ending	32	32
Creditors balance with Longman Consultancy at 31/07/2023:	5	8
Creditors balance with Arcadia at 31/07/2023:		54
Total income received from Gresse Street for12months endino		1,997
Total expenditure incurred with Gresse Street for12months
ending		2,356
Creditor and debtor balance with Gresse Street at		1,997

Operating Lease Commitments:
	Year to	Year to
	31July202~	31July 2022
	£000	£000
Within one year	1,031	2,356
Within twotofive years	146	2,356

19. Learner Support Funds Monies received in respect of each year EFA - carried over from previous year EFA - Student Financial Support Funding Usedasfollows: Disbursedtostudents Total disbursed Balance at31July		Year to 31July 2023 £000 75 144 219	Year to 31July 2022 £000 28 124 152 (77)
		(49) (49)
			(77) 75
		169