|**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
24
##
|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**|
##
##
|Note
**Fixed assets**
Intangible Assets
10
Tangible Assets
10
**Total fixed assets**
**Current assets**
Debtors
11
Cash at bank andinhand
**Total current assets**
**Current liabilities**
Creditors: amounts falling due within
one year
12
**Net current assets**
**Total assets less current liabilities**
**Non current liabilities**
Creditors: amounts falling due after
more than one year
13
**Net assets**
**Reserves**
Unrestricted income
reserve
Restricted income reserve
15
14|**Group**
**31July 2023**
**£000**
**1,462**
**1,462**
**1,136**
**4,848**
**5,984**
**(1,277)**
**4,707**
**6,169**
**6,169**
**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
**At**31July2023
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 31**July**2023**
**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||
##
##
##
##
##
##