Company registration No. 06799564 (England & Wales) Charity No. 1129180 Ascentis Company Limited by Guarantee Trustees. Report and Consolidated Financial Statements For The Year Ended 31 July 2020 *A9W7FT60" 15101r2021 COMPANIES F4OL¢SE A13 #65 centis fymha MOORE & SMALLEY Awarding Organisation ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONTENTS Pagt Charity reference and adminislrative details Trustees. annual report Independent auditorfs report to the Trustees Consolidated stotement d financial activrties {I￿rpOratIng the in¢(Mne and expenditure a¢count} Charrty statement of financial activiiies lincorporatiThJ the inccKne and expenditure accountl 12 Conslidate(I balance sheet Charity balance sheet 14 Conslidated and charty cash statements Notes lo the aceounls 16 ASCENTIS {COMPANY LIMITED BY GUARANTEE) CHARITY REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2020 Registered charity name A￿nti$ Charity registration number 1129180 Company registration number 06799564 Principal office offi￿ 4 Lanwler Business Park Mannin Way Caton Road Lancaster Lancashire 13SW The Trustees S Cartisle A J Tutiansky P C Wlkinson A Bolton R DavEs R H Nth¥ton-Syms P Rowe A Rushton Chief executive officer P C V4Slkinson Secretsry F Lugtano Audito MHA Moore and Smalley Chartered Accountsnls & Statutory Auditor P￿ry Close St Mary's Gale Lancaster Lancashire LA1 1XB ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2020 The tru51ees have pleasure in presenting their ￿port and the financial statements of the group and charity for the year ended 31 July 2020. This report includes the requirements of a directors, report as required by company law. The financial statemenls comply with the Charities Act 2011, the Companie5 Act 2006. Ihe Memorandum and Articles of Association. and A¢¢ounting and Reporting by Charities. Statement of Recommended Practice applicable to ¢harrties preparing their accounts in accordan￿ with the Financial Reporting Siandard applicable in the UK and Republic of Ireland {FRS 1021. Reference and administrative details Reference and administrative details are shLwn on page 2 of these financial stalemenls. The trustees The Iruslees who served the charity duriro the perM)d were as foll(Ms'. S Carlisle A J Turjansky P C Wilkinson A Bolton R Davies R Tomlinsor) R H Newion-syms P Rowe A Rushton {reS￿ned 28 August 2019) lappoinled 30 Ortober 2019) Structure, governance and management Ascentis is a charitable company limited by guarantee {067995641 incoryjoraled on 23 January 20D9 and registered with the charty commiSs￿n {11291801 on 19 April 2(K19. The company was established under a memorandum of association which define5 the objects and powers of the charrtable company and 15 govemed UnLler ils articles of asscKiation. In the event of the company being wound up, the members are required lo contribute an amount not exceeding £1. Recrnitment and appointment of new trustees The Board of Trustees appoints new Itustees up to a maximum of 13 individuals. The Search atyj Govemance Committee recommends candidates apprcpriale skilL8 consideratKJn to the Board. One third ofthe trustees lor the number nea￿st one Ihirdl must ￿tIre at each AGM, those longest in ott￿e ￿tiring rjrst and Ihe ¢hoi¢e between any of equal Serv￿ being made by drwng knts. The ￿tiring Iruslees shall be eligible for re*lection. The twstees detem)ine the ￿muneratIon of key management personnel. Indu¢lion 8nd trnining ofnew tmslees New trustees meet the Chief Executive Olficer (CEO) and Compary Se¢retsry and are inlroduceil lo the staff. The services provided by Astenlis and ts objecbves and strategy a￿ discussetj in detail. The new trustee is ssued wilh an infom81ion pack containin9 the folh)wing'. Re5ponsibilrtie5 of Charity trustees Memorandum and Articles of Assock?1￿n Annual report and accounts Minutes of the last board meeting Year to dale financial infomiation Schedule of Board meelings Biographies of other Iiustees ASCENTIS {COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT {CONTINUEOI FOR THE YEAR ENDED 31 JULY 2020 Organisat￿n81 stniclufp Every tru51ee musl sign a DeClarat￿n of Wllingnes5 to act as a Trustee ol the Charity, before they a￿ eligible lo vote al any meeting of the trustees. The trustees musl hold at leasl 2 meelings a year and they are responsible for making strategic decisions. All ITUStees who have signed the 'Trustee of the Charity. decL8ration have one vote on each Issue al these meetings. Each issue may be determined by a simple majorty of votes casl, wrth the Chairman having a second or casting a vote if necessary. The day to day running of the charity is delegated to the CEO. WIK) meets fomialty with his executive team on a regLJlar basis. Related part￿S All related paty transactions entered into in the year are disclosed in the notes lo the accounts There are no significant ￿lationShIpS with any other ¢harrties or organtsalions. save in ￿SpeCt to tts own subsidiaries. Aims. objectives and activities The objecls ofAscentis are to promote and advan￿ edu(3t￿n and training of young persons and adults. To achieve these objects, we aim lo maintain atKI improve our portfolio of edUcat￿nal qualiftcations and make them accessib￿ to a wkler range of client groups_ In this way, we can help young people and adults develop knowled9e. acquire new skills and have this fomially re¢ognise(l in the fom of nationally or internationally rewgnised qualifications. We also support pupils in prwnary and secondary schools throvgh our dyslexia and dys¢al¢ulia intervention software_ We review our aims and activities each year. This review kJ¢)ks *'. whal has been achieved. the outcomes of our work in the previous 12 months, and the success of our adivtties in delivering benefits lo those we were set up lo help. This review also helps to ensvre that our aims and a¢tMties remain focused on our stated obieclive5 and purpose. We have referred to the guidance contained in the Charity Commission's general guidance on public benefrt when reviewing our aims and in planning our fuiure activities. In particular. we, the trustees. have Considered how the planned activities will contribute to the aims that we have set. AII OUT charitable activrties focus on the promotion and advancement of educatKJn and training and are undertaken lo further oui charitable purposes for the public benefrt. The main objectives and activities for the year were= to ratKJnalise the qualification pr(yJuct portfolio so as to focus on our areas of strength and to make those products accessible to a wider client group across the UK and overseas.. to expand our dyslexe & dyscakulia software provision to schrx)Is across UK and overseas,. to provide the optimal level of support to our ¢lienls'. lo strengthen our staffing and Infraslructu￿-, lo maintain excellent financial health. Ascenlis ensures that every opportunty is taken lo promote rts work by maintaining a web5rte. hosting events in locations across the UK and diverse adverti51ng, such a5 through e-rnail campaigns. The Trustees a￿ pleased with the charit￿5 prcrfjress against the objectives and in particular. recognise the strong financial performance despite the impact of Covid-19. Group income decieased by only to £5.1m in the year and the surplus target was still achieved. ASCENTIS {COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 STRATEGIC REPORT Achievements and performance This is A5cenli%' eleventh year of operation since the trdn5fer of activrties and assets from the Open College of the North Wesl on 1 August 2009. We further reviewed the prc>aucl porttolio arvj revised it to provide a clear focus on our areas. of strength during the year. As part of this, we expanded the markets foT the key Ascenlis qvalificaiion products and our dyslexia and dyscalculH inte1venl￿n So￿are Servi￿ across the UK and overseas. In order to improve effe¢tivenÈss, we invested appropriately in our staffing base and IT infrastructure. The oifice accommodatK)n has proved lo be very functional and a suitable location for the staffing base but in looking to the future we implemented a plan for the eventual relocation to larger premi8es. This sound infraslructure has enabled us to delwer our staled obiectives effectivety. All of these actions increased the organisalion's ability to continue lo prosper within an exceptionally challenging busines5 environment for the charity and education sectors. Financial review Reseryes pol We have examined the requirements for reseryes in light of the main risks to the organi5alK)rh and have established a policy whereby the free re5erve5 Inol including those in use funding the tangible fixed assets held by the charity or those designated for other purp05es1 should be between 4 and 9 month5 01 norrnal charitable expenditure. The budgeted char4tabJe expendilure In 202012021 15 £5.3m and therefore, the target reserves are be￿een £1.8m and £4.Om. The rese￿e$ ftJn¢tion as an irnportanl polential financial buffer during this peiiod against lurbulen¢e in the planning environment. This lurbuler>ce represents a ¢on51anl Challenge lo the charity and the trustees, therefore, believe thal il is important to maintain ￿erVeS at a reasonable level. Total consolidated funds held at 31 Juty 2020 were £5.2m After allowing foT funds that Can only be realised on disposal of a fix￿ asset1£319KI and the designated reserve1£127k). remaining free ￿serveS are £4.8m, which Is in excess of the above polKy. allowing the Charty funds for fvture investment. The charty has no reslri¢led funds. We continue to maintain a designated fund to meet the costs of any potential future uninsuied liabilrties that may arise from the TUPE (Transfer of Undertakings Protection of Employment} regUlat￿nS, lollowing the transfer of the activrties of the former Open College of the North Wesl into Ascentis in 2009. The balance designated represents the maximum estimaled potential liabilrty, which will be recalculated annualty and should reduce over time. Principal funding sources The principal source of incorre is from the registration and cert￿￿tiOn of candidates on qUalIf￿allonS developed and accredited by the charty and the Sa￿ of associated leaming m*erials and also dyslexia and dyscalculia inteNenlion software support seryice. The expendrf(ure of the charity on qualrfulion and inleNention software development, moderation and qualrty control and cenlfe recognrtion all ensure that the qUaIrf￿all0ns and seNices offered provide the required beneffts lo those accessing them. Plans for future periods The period since the inception ol the charty has been extremely successful wrth significant overall growth, as we have reached out to a broader client base. Changes in Government poly in recent years relating lo the funding available for educational qualifications represent a si9nrf￿nt challenge for the charity, but as a result of an effective pkn skilfully implemented by committed staff, the charty a¢hieved a good surplus in the year despf(e the negative impact of Covid-19. The Govemment polw changes will continue to represent a challenge lo the charity and in the medium term, the tsrget will be to maintain stability and continue to support our Clients while achieving further steady growth. ASCENTIS (COPJIPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 The charity has approved a realistic bul chaI￿nging sel of largels in rts strategic plan. This commtts the charity lo an aspiration lor achieving steady growth and to improving all aspects of ils activity over the 2-year period lo 2022. Progress towards this vision will be achieved by developing and rnainlaining a high*ualtty portfolio of externally regulated qualifications and associated learning materials. expanding the client base across the UK and overseas and providing schools. colleges and employers with the optimum level of customer support. Simulianeou51y. the Dyslexia and Dyscakulia Intervention Support service. delivered through the wholly owned subsid¢ary company IDLS Ltd, will be expanded to all regions of the UK and to specific overseas markets. Vvhere appropriate. Ascenlis will seek to achieve growth through the acqutsition of smaller companEs where such acquisitions ale judged lo represent a sound investment for the charity. Any surpluses generated will be reinvesled in 51affing arKI the organisation's infraslrLKture $0 Ihat the ￿Ve1 of resourcing is always sufficient to deliver a g¢x%l service. The corporate objectives for the 2020-21 year are as follows.. Financ￿1 Health." aCh￿vement of modest gr(74vlh in income and a minimum break-even position. 2. Product Development-. development and maintenance ofa qualrficalions portfolio and supporting learning materials wh￿h are aligned with Govemmenl policy, focused on our proven strengths and which meets the needs of individual customers through engagement wrth relevant stakeholders. 3. Intervent￿ Software support service". expansion of tys￿x[3 and dyscalculia service across the UK and overseas. (lelNered through the sUb$KJ￿ry. IDLS Ltd. 4. Training.. Provision of on-line training delivered through the subsidiary Virtual Acatjemy Ltd (fomierly Premier Trwning Services (Midlands) Limited). 5. Govemance.. compliance wih Companies House and Charity Commission requirements. 6. Regulatory Compliance and Qualty Assuran￿.. maintenance of regulatory approval by Ofqual. Qualification Wales. CCEA and the Qualty Assurance Agency for Higher Education. 7. Human Resources.. effective Htjman Resources structure supported by rigorous performance managemenl and targeted staff develoFrfnenl. 8. Systems and Physical Infrastructure. effectNe maintenance and development of systems. IT and accommodalion. Principal risks and uncertainties Risk managen7enl The major ri5k5 to which the charity is exposed are rewewed and set out in the Busine55 Continuity Plan, together with the systems established to mrtoale those risks. Currently, one of the mst signrficant risks is considered lo be the impact of changing govemmenl policy in ielation lo Ihe funding of q￿alrf￿tIon$. Brexrt also represents a polent￿1 risk in terms of the impact on immigratK)n poli¢y_ Co¥KI 19 iemains a in relation lo the possible closure of colleges and schwls. Responsibilities of the trustees The Ifuslees (who are also the directors of Ascentis for the purposes of company lawl are re5pon5ible for prepanng the Trustees Annual Report and Ihe financial statements in accordance wi(h applicable law and regulations. ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT {CONTINUEOI FOR THE YEAR ENDED 31 JULY 2020 Company law requires the InJstees to prepare financial statements for e￿h financial year. Under that law the Iru51ees have elected to prepare the financial statements in accordance with United Kingdom Generalty Accepted Accounting Practice IUnile(l Kingdom Accounting Standards and applicable law). Under company lawthe Iruslees musl not approve the financial statements unless they are satisfied that they give a true and fail view of the slate of affairs of the chairtable company and the group and the income and expendrture of the charitable company for that peri¢XI. In preparing these financial statements. the Injstees are required to-. select suitable accounting poI￿leS and then apply them consistently observe the meth¢)ds and principles in the Charities Statement of Recommended Practice ISORPI make judgements and accounting estimates that are reasonabk and pnjdent slate whether appI￿able UK Accounting Standards have been folhjwed. subject to any material departures disclosed and explained in the financral statemenls prepare the financial statements on the going cOr￿M basis unless rt is inappropriale lo presume that the group will continue in operation The trustees are responsible for kee￿ng adequate accounting records that are suftKienl to sh(Wd and explain the charitable company's and group's transactions and disclose wrth reasonable accuracy at any lime the financial posrtion of the group and enable them lo ensure that the financial statements Comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other r{wU￿Atie5. Auditor MHA Moore and Smalley a￿ deeme¢J lo be ￿-ap￿inted under section 487121 of the Companies Act 2006. Each of the persons who is a twslee al the date of approval of Ihis report confimis that.. So far as they are aware there is no relevant audit infom7ation of which the group's avdilor is unaware,. and each tftjstee has taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of that irbfomiation. Approval By approving the Iruslees report the trustees are also approving the Strateg￿ report in their capacrty as company directors. Signed on behalf of the Iwslees Pkn kfbÉknnAtfflL Mr P C Wilkinson Trustee 2111212020 ASCENTIS (COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS AND TRUSTEES OF ASCENTIS FOR THE YEAR ENDED 31 JULY 2020 Opinion We have audited the financial statements of Ascentis (the 'parenl charitable company'l and ils subsidiaries Ilhe group'l for the year ended 31 July 2020 which comprise Consolidated Slalement of Financral Activity, Charity Statement of Financial Aclivty, Consolidated Balance Sheel, Charity Balance Sheet. Consolidated and Charty Cash Flow Statements and notes lo the financial st*emenls. including a summary of sKJnrfJ¢ant accounting policies. The financial ￿pOrting framework that has been applied in their prepaialion 15 applicable law and United Kingdom Accountin9 Standards. including Financial Reporiing Standard 102 The Financial Reporting Slandartl applicable in Ihe UK and Republ￿ of Ireland {Unrted Kingdom Generally Accepted Accounting Pract￿e1. In our opinion the financial ststements: give a true and fair view ofthe state of the group's arKI parent charrtable company's affairs as at 31 ju￿ 2020. and ofthe group's Incorning iesouites and application of resources, induding ts income and expenditure, for the year then ended: have been property prepared in accordance with Unrted Kingdom Generalty Acceplerj Accounting Practice.. and have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011 Ba5[5 for opinion We conducted our audit in accordance with International Standards on Auditing {UK} IISAS IUK)) and applicable law. Ou¥ re5pon5ibililies under those standards are lurther described in the Audrtorfs responsibilities for the audit of the financial slalemenls section of oui ￿pOrt. We are independent of the group and parent charitable company in ac¢ordan¢e with the ethical requiremen15 that a￿ relevant to our audrt of the financial statements in the UK, including the FRC'S EthicAI Standard. and we have fuffilled our other eth￿1 responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffjcient and appropriate lo provide basis for our opinion. Conclusions relating to going concem We h8ve nothing to report in respect ofthe following matters in relation to which the ISAS IUKI require us to report lo you where= the trustees. use of the going concem basis of ￿COUnting in the preparalK)n of the financial statements is not appropllale.. or the trustees have not disclosed in the financial s￿￿eMentS any identrfied material uncertainties that may Gasl significant doubl aboul the group's or parenl charilabk company's abilty to conlinue lo adopt the going concern basis of accounting for a periLxl ofat least ￿efve months from the date when the financial statements are aLbthorised for issue. Other Information The trustees are responsible for the other infomiatK)n. The other infomiatK)n comprises the information included in the Iruslee5' annual report. other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the othei inforniation and. except to the extent otherwise explicitly slated in our report, we do not expres5 any form of assurance conclusion Ihereon. ASCENTIS (COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF ASCENTIS FOR THE YEAR ENDED 31 JULY 2020 Other information Icontinuedl In connect￿n with our audit of the financial statements. our responsibilty is lo ￿ad the other infomalion and. in doing so, consK4er whether the other information is materially inconsi5tenl with the financial slalemenls or ouf knowledgÈ obtsined in the audit or otherwise appeals lo be materially misstaled. If we identfy such material inconsistencies or apparent material misstatements. we a￿ fequired to determrne whether there a material misstatement in the financial slalemenls or a material misstslement of the other information If, based on the work we have performed, we ￿nClUde that there is a material misststeffent of this other infom)alion, we are required to report thal fact_ We have nolhirvJ lo report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. baseil on the work undertaken in the cOu￿e of the audit.. the information given in the Iruslees, report {incorporaling the strategic report and the directors, report) for the financral year for which the financial slatemenls are prepared is consistent wth the financial slalemenls." and the 51rateg￿ report and the trustees. report have been prepared in accordance with applicab￿ legal requirement5. Matters on which we are requiied to report by exception In the light of our knowjedge and understanding of the group and parent charitable company and its environment obtained in the course of the audil. we have not *JentIr￿ material misslatemenls in the strategic report and the truslees. report. We have nothing lo report in respect of the folhjwing matters in rektKJn to which the Companies Act 2006 and the Charities Act 2011 requires us lo report lo you if, in our opinion= adequale and sufficient accounting records have not been kept by the parent charitable ccxnpany. or returns adequate for our audrt have not been received from branches not visited by us,. or the parent charitable company's financial statements a￿ not in agreement vdth the accounting records and returns: or certain discbsures of directors. rernunerat*Jn specrfEd by law are not made.. or we have not T￿e1Ve￿ aN the infomiatM)n and explanations we require for our audit", or Respon5ibilitie5 of trustees As explained more fully in the trustees. responsibilrties slatemenl set out on page 6-7. the trustee5 (who are also Ihe directors of the charitable company for the purposes of company lawl are responsible for the p￿paratiOn of the financial slalemenls antl for being satiSf￿d that they give a true and fair view. and for such internal control as the Iruslees determine is necessary to enable the preparat￿ of financ￿1 statements that are free from material misstalemenl, whether due to fraud or error. In preparing Ihe financial stalemenls, the Irustees a￿ responsrble for assessing the group's and parent charitable company's abilty to continue a5 a going concem. disdosing. as appl¢cable, matters related lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the group or the parent harilable company or to cease operatic￿$. or have no realis￿ atternative but to do so. ASCENTIS {COMPANY LIMITED BY GUARANTEE INDEPENDENT AUOITOR'S REPORT TO THE BOARD OF TRUSTEES OF ASCENTIS FOR THE YEAR ENDED 31 JULY 2020 Auditor's responsibilities for the audit of the financial statements We have been appointed auditor under the Comp8nies Act 20[6 and sectKJn 151 of the Charities Act 2011 and report in accordance with Acts. Oui objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and lo issue an audrtorfs report that includes our opinion. Reasonable assurance is a hiJh level of assurance but is not a guarantee that an audrt conducted in accordance with ISAS (UK) wll a￿ayS delect a material misstslemenl when rt exists. Misstatements Can arise from fraud oi error and are c¢x)sidered material rf, indNidually or in the agg@gale. they could reasonably be expected lo influence the e¢￿0mle decisions of useis taken on the basis of these linan¢ial stalemenls. A further description of our responsibilrties for the audit of Ihe financial statement5 is located on the Financi81 Reporting Council's websrte at." VhKV.frc.o .uklaudrtotsres sibilrttes. This desuiplion fomis part of our8uditorfs report Use of our report This report is made solety to the charitable companys members. as a body. in a￿ordan￿ wrth Chapter 3 of Part 16 of the Companies Act 2006 and lo the charrtable company's trustees. as a body, in accordance wlh Part 4 of the Charities (Accounts and Reports) Regulation5 2008. Our audrt work has been undertaken so that we might stale lo the charitable company's members and ils tru51ees those matters we are required to slate to them in an auditoff s report and for no other purpose. To the fullest extent pemitted by law, we do not accept or assume responsibility to anyone other than the Charitab￿ company and the charrtable company's members as a body and the charitable company's trustees as a ￿dy. for ouraudrt work. forthis report. or for the opinions we have formed. Jenny Mccabe (Senior Statutory Auditor) For and on behalf ol MHA Moore and Smalley Chartered Accountants and Statutory Auditor Priory Close Sl Mary's Gate Lancaster LA1 1XB Date.. 2111212020 MHA Moorn and Smalley is elwible to act as an auditor in ter￿￿ of section 1212 of the Companies Act 2006. -11 ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVlllES IINCORPORAllNG THE INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENOED 31 JULY 2020 Unrestricted Rostrictgd Totsl funds funds fijnds 2020 Total ￿ndS 2019 Income from.- Charitable acliiities In*slments other 4,997,154 13.673 82.340 4.997,154 13.673 82,340 5,221,282 16.098 Totsl 5.093,167 5,093,167 5,237,380 Expenditure an: Charita￿e actiiities 4.560.189 4.560,189 4,258.554 Total 4.$60.189 4,560.189 4,258.554 Net in¢ome before tran￿eTS 532.978 532,978 978,826 Transfers Net movemènt rn funds 532,978 S32.978 978,826 Reconciliation of funds Total fijnds brixjght bThArd 4.713.541 4.713.541 3,734.715 Totsl fijnds carried forward S,246,519 5,246,519 4,713.541 The SLitement of Financial Activities i￿lUdeS all r￿0Jnised gains and losses in the year. All of the above amounts relate lo continuiry aCtivrt￿5 except as described in notes 3 and 6. The statement of financial adwities also complies with the requiremenls for an inccxne and expendiiure account under the Companies Act 2006. The notes on pages 16 10 32 fomi part ofthese financial slalements. ASCENTIS (COMPANY LIMITED BY GUARANTEE) CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 JULY 2020 Unrèstricted Restrictsd Total lunds fufftds 2020 Total ffijnds 2019 Income from: Chanlable actimties Inleslments Other 4.237.898 13.673 57.951 4.237.898 13.673 57.951 4,698,781 16.098 1,611 Totsl 4,309,522 4,309,522 4.716.490 Expenditure on.. Charitable actiiities 3.817,541 3.817,541 3,696,942 Total 3.817.541 3,817,541 3,696,942 Net Income before transfers 491,981 491.981 1.019.548 Transfers Net movernent in funds 491.981 491.981 1,019.548 Reconctliation of fijnds.. Total fijnds brought fr)I￿rIJ 4.754.263 {754.263 3,734.715 Total fijnds carried forward 5.246.244 5.246,244 4,754,263 The Statement of Financial Activrties indudes all recognised gains and losses in the year. All of the above amounts relate to continuing aclNities. The slalemenl of financial aclNilEs also complies with the requirements for an income and expenditure account under the Companies Act 20C6. The notes on pages 16 to 32 fom part of these financial statements. -12- ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED BALANCE SHEET AS AT 31 JULY 2020 2020 2019 Fixed assets Tangible assets Iniangible assets 10 11 302.295 16.9SO 98,e84 30,037 319,245 128,921 Current assets Oebtors Cash at bank and in hand 12 678,826 5,013,209 689,776 4.713.364 S.692,035 5,403,140 reditor& amc4Jnts falling due wthin one year 14 17647611 1818.5201 Net cuirgnt assets 4,927,274 4,584,620 Totsl awts less ctsrrent Ilabilitits 5.246.S19 4.713,541 provi￿On5 tor liabilities N￿ta￿ts 5.246.519 4.713,541 Funds: Unrestricted ￿dS 16 5.246.519 4,713.541 Totsl ￿ndS 5,246.519 4.713,541 These accounts were approved by the members of the committee and authorised for issue on the 2111212020 and are signed on their behalf by". Mr P C Wilkinson Trustse Company Registration Number. CE799564 The notes on pages 16 to 32 fomi part ofthese financial ststemenls. -13- ASCENTIS {COMPANY LIMITED BY GUARANTEE) CHARITY BALANCE SHEET AS AT 31 JULY 2020 2020 2019 Fixed a￿ts Tangible assets Inlangible assets 1Q 11 302,295 16,950 98,884 30,037 319,245 128.921 Current a￿ts Deblo In*stments Cash al bank and in hand 12 13 723.175 710,934 4.930,848 4,692.150 5.654.025 5,403.086 Creditors: amounts fralling due V*ithin one year 14 1727.0261 1777.7441 N•t ¢urrent assets 4.926,999 4.625,342 Totsl assets less eurrent liabilities 5,246.244 4,754.263 Provisons for liabilities Nat assets 5.246,244 4,754,263 Fund&. UM￿Strict￿ funds 16 5.246.244 4,754,263 Total fvnd5 5,246.244 4,754.263 These accounts were approved by the members of the C￿nrnittee authorised for issue on 2111212020 . and are signed on their behalf by= Mr P C Wilkinson Trustee Company Registration Number: (￿799564 The notes on pages 16 10 32 form part of these financial statements. -1 ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED AND CHARITY CASH FLOW STATEMENTS FOR THE YEAR END 31 JULY 2020 Group 2020 Totsl G￿up 2019 Total Charity 2020 Total Charity 2019 Total Cash generatedllu*dl in operating activities 654.975 1.193.471 593,828 1.175,009 Cashfiows from investing activities In¥estment income Purchase of tangible fixed assets Purchase of intangiwe fixed assets Receipts from sale of fixed assets Purchase of In￿stment acquisitions 13.673 1275.0521 16.098 13.673 143,6391 1275.0521 119,8701 16.098 143.6391 119,8701 6,249 100,000 6.249 100.000 generntedllusedl in inveaing aclivitie5 {355.1301 (47.411) 1355,1301 {47,4111 Increase In ¢a¥) and cash equivalents in the year 299.845 1,146.C 238,698 1.127,598 Cash and cash equ￿lentS blknj 4,713,364 3,567,304 4.692.150 3.564.552 Cash and cash equivalents rlfwd 5.013.209 4.713.364 4.930,848 4,692,150 Reconciliation of net movement in funds to net cashfiow from operating activities Net m0￿ment in fvnds In￿stment income receiled Oepreciation and amortisation Ilncrease)IDecrease in debtors 1r￿reaSe1lDeCreasel in creditors Addition of subsidiary Loss on disposal of fixen. IDL Learning income represents amounts receivable for servvs net of VAT and trade discounts. Turnover from the sale or renewal ol lrtera¢y and numeracy li￿nceS is wognised on purchase by the customer on the basts that there is no reC￿r$e of such income anLI the risks and rewards have transferred lo the buyer. PTS income ￿presentS amounts receivable services net of VAT 8nd trade discounts. Turnover from the sale of training courses is recognised on the date of course delNery to the customer on the basis that the is no recourse of such income and the risks and rewards have transferred lo the buyer. Investment income is credited to the statement of ffinanch￿ act￿rt￿S in the pericyj in which it becomes receivable. ASCENTIS ICOMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Accounting policies lcontinuedl Government grants re￿Ivable represent income tjnder Ihe Coronaviru5 Job Retention Scheme ICJRS} to reimbLJrse the company of costs incurred in retaining staff who were furloughed due lo the impact of closure due to COVID-19. CJRS grants are recognised to match the ¢osts incurred by the company for the period claims are made. Other gfanls receivable represent income from trading grants and olher grant5. A grant thal specifies performance condition5 is recognised in income when the perfomance Condfiions are met. Wheie a grant doe5 not specify performance condrtions r( 15 recognised in income when the Pr￿eedS are received or re￿1Vable. A grant received before the recognrtion crrteria are satisfied is recognised as a liability. Expenditure All expenditijre is accounted ￿ on an accruals basis in the expense calegorie5 required by the SORP. Expenditure is recognised where there is a legal or constructive obligation to make payments lo third parties, il is probable that the settlement will be required and the amounl of Ihe obluation can be measured reliabty. Costs are further allocated bets￿en the activities undertaken on a basis consistent with the use of the resoui¢es. Expendituie includes irrecoverable VAT. Charitable expendfture includes cosls in¢urred in Ihe delivery of Ihe charities acts"vities and servi¢es. It includes both direcl costs, including staff costs. that are incurred in the delivery of the activities and services and indirect costs which a￿ required lo support the delivery of the charrtable objects. Costs of raising fvnds include those costs in relation to the chartys operations which are used lo generate further income %¥hich is integral to the chaiity in meeting its charitable obiectNes. Where support costs cannot be ¢Jirectly attributed to particular headings they have tseen allocated lo cost of raising fun¢Js and expendilure on Charitab￿ activrties on a basis consislent with use of Ihe resources. Fixed assets All fixed as5els are tnitialty recorded at cost. Depreciation is prowded al rates cakulaled to write off the cost of fixed a55ets, ￿sS their re5Klual ￿alUe, over their expected useful lives on the lolk)wing bases.. Office equipment Fixtures and fittings Motor vehicles Property improvements 3 to 5 years 5 years 2 to 4 years 10 year5 Amortisation Amortisation is ¢alcul*ed so as to wrrte off the cost of the asset. less rts estimate residual value, over the useful economic life of that asset as folk)ws". Website c0515 3 year5 Investments Investments are recognised Initialty at fair value wh￿h is nomially the transaction price excluding transaction Costs. Investments are subsequentty slated at fair value rf the shares are publicly traded or their fair value can otherwise be measured reliabty. Other investments. such as the investment in the subsidiary, are measured at Cost less Impairment. The SOFA ineluded the net gains and losses arising on revaluations and disposals throughout the year. -17- ASCENTIS {COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Accounting policies Icontinuedl Cash and ¢ash equivalents Cash balances represent cash in hand and deposi(5 hehy at banks and buikling ￿letieS. Debtors and creditors within one year Debtor5 arKI credrtors wrth no slated interest rate and receNable and payable Ythhin one year ate recorded al transaction price. Any losses arising from impai￿ent are recognised in expenditure. Fund accounting Unrestiicted funds General funds are available for use al the diScret￿n of Ihe Trustees in furtherance of the geneial objectives of the charity. Deswnated funds Designated funds are unrestricted luThls set aside by the Trusleesto coverfuluie potential or actual monetary eommitments. The fund balances are reviewed annually by the tiustees. Restricted funds Reslrided funds arise where there is a donor-imp05ed reslriclKJn on the use of the funds, or the funds have arisen in response to an appeal for a specrfied purpose. The charity currenlty has no reSt￿ted funds. Opefating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with Ihe lessor ale charged against prolrts on a stravJht-line basis over the period of the lease. Pension5 Ascenlis operates a defined contributson pension scheme for employees of the group. The assets of the scheme are hekl separately ffom those of the Gharty. The annual contributions payable a￿ ¢haiged to the statement of financial activities_ Redundancy costs Redundancy costs are expensed when the1￿bi1rtY for payment of such costs is incurred. Taxation HM Revenue & Customs considers Ascentis to be a charity and therefore they are entitled to exemption from tax afforded by Sections 478489 of the Corporation Taxes Act 2010 to the extent that i￿ome is applied exclusively for charitable purpose5. Foreign currencies Assets and liabilities in foreign currencies a￿ translated into sterfing al the rales of exchange ruling al the balance sheet date. Transactions in foreign Cu￿en¢1es are translated Into steding * the rale of ex¢h8nge ruling al the dale of transaction. Exchange drffererKes are taken into account in 8rriving at the operating profil. ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Accounting policies {continuedl Financial instruments The Charity has elected to appty the proMsKJns of Section 11 'Basic Financial Instruments. and Section 12 'Olher Financial Instrtjmenls Issues. of FRS 102 to all of fls financial instnjmenls. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party lo contractual provisrons of the inslrument. Financial assets and liabilities are oltset, wrth the net arr￿u￿15 presented in the financial siatemenls, when there is a legally enforceab￿ right lo offset the recognised amounts and there is an intenbon to settle on a net basts or to realise the asset and settle the liabilrty simultaneously. Basr financial assets Basic financial assets. which indude debtors and cash and bank balances, are initially measured al transa¢lion price including transaCt￿n costs and are Subsequent￿ carried * amortised cost using the effective intere51 rnethod unles5 the ariangemenl conslitule5 8 financing IransaclTron, where the transaction is measured al the present value of the future receipts discounted al a rnarkel rale of intere51. Financial assets classrfied as receivable wrthin one year are not amortised. Trade debtors and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables.. Loans and receivables are measured at amortised cost using the effective interest rnethoj. less any Impairment. Impainnenl of financial assets Financial assets are assessed fof indicators of impairnient at each reporting end date. Financial assets are impaired where there is obieciive eviden￿ that, as a result of one or more events that occurred after the initial recognition of the financial asset. the estirnaled future c85h flows have been affected. If an asset is impaired, the impaimient kns5 IS the dffterence betsveen the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment Ioss 15 recognised in the statement of comprehensive income. If there 15 a decrease in the impaim)enl k)ss arising from an event occurring after the impaimenl was recognised. the impaimienl is reversed. The reveisal is such that the current carrying amount does not exceed what the carrying amount would have been. had the Impairment not previously been recognised. The impairment reversal is recognised in the statement of comprehensive income. De•rec(unitK)n of financial assets Financial assets are derecognised onty when the contractual rights lo the cash flows from the asset expire or are settled, or when the company transfers the financial as5el èntl subslantk81ty all the risks and rewards of ownership lo another enlty. or Il some signrficant risks and reward5 of ownership are ￿taIned bul control of the asset has transferred lo another party that is able to sell the asset in ils entirety to an unrelated third paty classrf￿t￿n of financial liabilities Financial liabilities a￿ classffied &cording to the substance of the contractual arrangements entered into. -19- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Accounting policies {¢ontinued} Baw financial liabilities Basic financial liabilrties, including ¢￿ditorS. are inrtially ie¢(yJnysed at transath'on price unless the arrangement conslitules a financing Iransaclion, where the debt instrument is measured al the present valLJe of the futuie receipts discounted al 8 rnarket late of interest. Financial liabilities classified as payable wrfhin one year are not amortised. Debt instruments are subsequently carried at amortised cost. using the effective interest rale method. Trade creditor5 are Obl￿atIonS to pay for 9ood5 or ServI￿S that have been acquired in the ordinary course of business ffom suppliers. Amounts payable are classrfEd a5 current liabtlilies If payment is due within one year or less. If not, they are presenled as non-curcenl liabilrties. Trade creditors are recognised inilialty al Iiansaclion price and subsequentty measured at amortised cost using the effective interest method. D&recognilion oifinancial liabrfilies Financial liabili¢ie5 are derecctyjnised when Ihe company's contractual obligalTrons expire or are discharged or cancelled. Judgements and key sources of estimation uncertainty In the appl￿tion of the Charity's accounting pOI￿leS, the trustees are required lo make judgements, eslimales and assumpttons about the cairying amounts of assets and Iiabilrties that are not readily apparent from other sources. The estimates and a550cialed assumptions are based on historical experience and other factors Ihal a￿ considered to be relevant. Actual iesulls may drffer from these e51imales. The estimates and undedying assumptions a￿ reviewed on an ongoTng basis. Revisions lo accounting eslimales are recognised In the period in wh¢h the estimate 15 revised where the revision affects only that period. or in the period of the rewsion and luture periods where the revisTon affects both current and future periods. Key assumptions. judgements and estimates There have been no key assumptions ¢onceming future an¢J other key sources of estimation uncertainty at Ihe rewrting date that have a significant risk of causing a material adjustment lo the carrying amounts of assets and liabilities wrthin the next financial year. Income recognltion As slated in the accounting poI￿leS on page 16. the Charity has a wlicy of deferring income for course registrations which span the year end until the point of certrfication where the charity incurs the costs of moderation. The Trustees have delemined that rt 15 appropriate to defer 213rds of incoTne for course registration fees lo this date on the basis that the charity incurs most of rts cosls at this point in time. The Trustees have also delemined that lumover from the sale or renewal of literacy and numerxy licences Is recognised on PLLr¢hase by the customer on the basis that there is no recourse of such income and the risks and rewards have transferred to the buyer. The Trustees review these assumpt￿)n$ on an ongoing basis. and they have been consistently appr￿d in all periods. The TNstees have not identrfied any fvrther key judgements in these financ￿1 slalemenls. -2( ASCENTIS (COMPANY LIMITED BY GUARANT.EE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Income frorn charitable activities Group Unrestricted Restricted funds funds Total 2020 Total 2019 Awa￿Ing qualtfiGation I￿orne IDL income PTS incoffle 4,237.898 688,%5 70.291 4,237.898 688,965 70,291 4,698.781 522,501 4.997.154 4,997,1S4 5,221,282 Charity Awarding 9uJi￿atIon income 4.237.898 4,237,898 4.698,781 4.237.898 4,237,898 4.698,781 All income from charrtable actNlties in the comparative petiod was unrestricted. Income of £70,291 12019". £nil) relates lo activities which have been d1scontinL￿d. Income from investments Group and charity Unrestrictèd Restricted funds funds Totsl 2020 Total 2019 Bank inte￿1 13.673 13.673 16,098 13.673 13,673 16.098 All income from investmenls the wnparatNe perk)d was unrestricteil. Other income Group urt￿*￿¢ted Re#ricled tunds funds Totsl 2020 Total 2019 Grant income Other sundry ir￿orne 82.319 21 82.319 21 81340 82.340 All other income in the comparative peri(xl was unrestricted. -21- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Other incorne {continuedl Charity Unre*icted Re*icted funds ftlnds Totsl 2020 Total 2019 Interest on gioup loan Grant income 1,150 56,801 1,150 S6.801 1.611 57,951 57.951 1,611 All other income in the comparative was UnreStr￿ed. Expenditure on charitable activities Group Promotion of education and training Unreslricted Restricted Total 2020 Total 2019 Costs of generating awardiThJ qualification income Costs of generating IDL Ir￿ome Costs of generating PTS income Support costs {s¢e note 71 1.990.034 355.874 88.670 2.125,611 1.990.034 2,275,836 355,874 372.508 88.670 2,125,611 1,610.208 4,560.189 4,560,189 4.258.554 Charity Total 2020 Total 2019 Unrestricted Restricted Costs of generating awding qualification income Support ¢osts (see nots 71 1,930.681 1.866.860 1.930,681 1.886,860 2.275,838 1.421,104 3.817,541 3,817.541 3.696,942 All expendrture on charrtable adNilies in the ￿MparatiVe period was unrestricted for both Group and Charty. Included within group expenditure on charrtable actwitie5 is expenditure of £88.67012019.' £nill relating lo discontinued Operati¢￿$. ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Support costs Group Charitable activities Total 2020 Total 2019 Wages and salaries Rerrt Rates and water Li9hl and f*at Repairs and Maintenar￿e InsuEanGe Health and safety ConsullanGy fees TelepfKTrne Printing, postage and stationary Depreciation Amortisation Inform*ion Technology Conference costs Sundry expenses sank Gharges Bad debts L05s on disF#)sal of fixed as5els Accountancy fees Audit Fees Legal fpes Professional subscriptions Impaimienl ol inkestment 874,610 144,905 13.345 14,537 28,027 35,581 3,774 46,180 4,538 13,456 64.512 13,087 465,378 14.091 1(KJ,482 4,255 20,924 880 21,547 13.350 127.563 589 1CM).OC4) 874.610 144.905 13,345 14,537 28,027 35,581 3,774 46,180 4,538 13.4S6 64.S12 13.087 465,378 14,091 100.482 4,255 20.924 679,076 124.109 11.628 14,876 35,747 26,160 5,286 89,886 4,510 21,446 95,552 9.223 261,009 14,315 70,315 3,736 134 1,993 15,392 10.875 114.940 21.547 13,350 127,563 589 100,000 Totsl gJPPOrt for group 2.125,611 2,125,611 1.610.208 -2 ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Support costs {continued} Charity Charitsble activities Total 2020 Total 2019 Wages arKf salaries Rent Rates and Wdler Light and he* Repairs and maintenance Insurance Health and sa Consultancy fees Telephone Pnnting, Postage and 5t3liorwy Depwiation Amortisation Infomation Technology confe￿nce costs Sundry expenses Bank charges Bad debts Loss on d1sF¥)S￿ of fixed assets Accountancy fee5 Audit Fees Legal lees Intercompany loan walked Impairment of inlestment 724.125 141,055 13,345 14,537 26,902 34.899 3,774 45.930 3,757 9,290 64.512 13.087 397.684 14,091 83,290 2,101 3,068 880 17,856 8,200 121,904 42.573 100,000 724.125 141.055 13,345 14.537 26,902 34.899 3.774 45.930 3.757 9,290 64,512 13,08T 397,684 14,091 83,290 2,101 3,068 880 17,856 8,200 121,904 42,573 100,000 638,810 117.904 11.047 14,132 33,960 24.852 5,022 63,856 4,284 13,425 95,552 9,223 240.082 14,315 56,832 2,421 134 1,993 13.916 7.875 49.469 Totsl ￿pport for charity 1,886,860 1.886,860 1.421,104 -24- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NofES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 Net income for the year 2020 2019 Net income is ststed after charying: Group Staff p￿Slan eontrit*Jtions Audtors. remtJnetatF audit of the financial statements Depreciation of tangl￿e assets - owned by the charity Amortisation of intangible asset5 - 0￿ed by the chanty 134,793 126.143 13.350 10.875 64.512 95,552 13.087 9,223 Charity Staff pension ¢ontributions Aud1￿$. remuneration audit of the financi￿ statements Depwialion of tangible assets - owned by the charity Amulisalion of intangible assets - O￿ned ty the Charity 115.089 115.515 8.200 7.875 64,512 95,552 13.087 9,223 Staff costs and emoluments Total staff co* were as follows 2020 2019 Group Wages and saaries Social security costs Pension costs 2.372.839 203,892 134.793 2.134,026 194,511 126, 143 Totsl group stsff ¢osts 1711,524 2,454.680 Charity Wages arKI Salaries Social security costs Pension costs 1.927,774 164.393 115,089 1,852,438 166,204 115,515 Totsl charity staff costs 2,207.256 2,134,157 -2& ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 Staff costs and emoluments Icontinuedl Particulars of èmployees.. The average head count number of staff employed by the group during the year was as follows.. 2020 2019 Exectrti¥e Charitable Support IOLS PTS 71 17 15 15 117 The number of employees, whose remuneratKtrn for the year fell within the following bands. were.. 2020 No 2019 No £60,000- £69,999 £70,000- £79,999 £90.000- £99.999 During the year, the f0lf0v￿ng number of emptyee5 eaming rrnre than £60,000 had contributions to penston sche￿$.. 2020 No 2019 No Accrued benefits ￿￿eT define(J G￿tritA￿10Th pension schemes Total employer contribut￿n5 in the year for the pfovision of defIr￿ contribution pension schemes in respect of employees earning more than £60,000 were £44.29712019." £41.1771. -26- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 10 Tangible fixed assets Group and ¢harity Lèasèhold Fixturès & Property Fittings Equipment Motor VehiGles Tota15 ost AI 1 August 2019 Additions Disposals 163,451 10.303 155.519 188,245 2,432 17,295 86,807 17,295 346,568 275,052 39.727 At 31 July 2020 163,45t 10.303 321,332 86,807 581,893 Depreciation At 1 August 2019 Charge for the year Eliminated on disposals 155,159 8.292 9.095 1.208 74.771 49.775 22.432 8.659 5.237 10.166 247,684 64,512 32,598 At 31 July 2020 163.451 10,303 102,114 3,730 279.598 Net book value At 31 July 2020 219.218 83,077 302,295 Al 31 July 2019 8,292 1.208 80.748 8,636 98,884 11 Intangible assets Group and charity Other intangible assets Totals Cost Al 1 August 2019 Addition5 39,260 39.260 At 31 July 2020 39.260 39,260 Amorisation At 1 Augusl 2019 Charge for the year 9,223 13,087 9.223 13,087 At 31 July 2020 22.310 22,310 Net book value At 31 July 2020 16,950 16,950 At 31 JLdy 2019 30,037 30.037 -27- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 12 Debtors Group 2020 Group 2019 harity 2020 Chaiity 2019 Trade deblors Amounts ()wed by group urKlertakings Prepayments and accnjed Ir￿ome other debtors 443.704 386.123 344.41x1 157,628 221,147 306,218 108,960 295,736 233.597 1.525 303,653 678.826 689.776 723.175 710.934 13 Investments Group 2020 2019 Invèsth)ènts in subsidiary undertakin95 Additions Impairment 100.000 100,000 Total investments Charity Investments tn subsidiary und¢Jtskings Cost brought fowaid Additions Disposa15 Impairment 1ixJ.01)o 100.000 Total investments Included in inve51menls is £1 representing the entire of the issued share caprtal of International Dyslexi8 Learning Solutions Limrted and £1 representing the acquisition of Virtual Academy Ltd Iformedy p￿mier Training Services Imidbndsl Limrtedl during the year. Both companies are inc(Ypor*ed in England and Wath. During the year the charity acquired the trade. assets and gothill of a business which has operated through a substdiary company during Ihe year. As a result of the Covid-19 pandemic, a strategic Change in direction has been made and as a result the goo￿111 acquired in the year has been fully impaired in the period. -2 ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS {CONTINiIEDI FOR THE YEAR ENDED 31 JULY 2020 14 Creditors= amounts falling due within one year Group 2020 Group 2019 Charity 2020 Charity 2019 Trade credit(Y5 Other taxatitin and social seGurity Other C￿dItOrS Accruals and defer￿ irKome 189,512 70,136 20,482 *184.631 157.990 66,675 14.499 579,356 176,025 70,136 20,402 460.463 151,129 66,675 14,500 545,440 764.761 818.520 727.026 777.744 Deferred income 2020 2019 Balance brought forvrdrd Release of deferred income Income deferred to 202(>21 305.705 237.902 130S,7051 P37,9021 265,970 305,705 26S.970 305,705 15 Commitments under operating leases Group and charity 2020 Land and Building5 2020 Other items 2019 Land and Buildings 2019 0(￿r items Within 1 year Within 2 to 5 years After more than 5 years 110,964 33,269 2,409 38.116 185,044 28,823 110.964 35.678 38.116 213.867 Charity only 2020 Land and Buildings 2020 Other iiems 2019 Land and Buildings 2019 Other items Within 1 year Within 2 to 5 yeafs After more than 5 yeats 108.864 33.269 2.409 38.116 185,044 28.823 108.864 35.678 38.116 213,867 -29- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 16 Unrestricted income funds- Current year At1 August 2019 At31 July 2020 Transfe Incamt Expenditurè revaluations Group Designated Funds Genera Funds 129.533 4.584.008 12,7441 2,744 126,789 5.119,730 5,093,167 {4.560,189) Unre&ricted funds 4.713,541 5.093.167 14.560.189) 5.246.519 harity Designated Funds General Funds 129,533 4.624.730 P,7441 2,744 126,789 5,119,455 4.309.522 {3.817.541) Unre&ricted fttnds 4.754,263 4.309.S22 13.817.$411 5.246.244 The Trustge5 have created a de5ynated fund to meet Ihe cost of any potential future uninsured liabil(ties that may arise from the TUPE (fransfer of Undertakings Protection of Employmenll regulations, followng the transfer of the actNilies of the former Open College of the North Wesl into A%enlis in 2009. The balance of £126,789 represenl5 the maximum eslimaled potenlial liability, which will be recalculated annualty. and the amount of the designated fund adjusted accordingly. 17 Unrastri¢ted income fund5- Prior year At1 August 2018 At31 July 2019 Transfer Income Expendittjre revaluations Group Designated Fund5 General Funds 144.149 3,590.566 114,6161 14.616 129,533 4,138,160 5,093,167 (4,560.189) Unre*icted funds 3.734.71S 5.093.167 14,560.1891 4.267.693 Charity Designated Funds General Fund5 144,149 3,590. 174.616} 14,616 129.533 4.097,163 4.309.522 13.817.541) UnrestriGted funds 3.734.715 4.309.522 13,817.541) 4,226,696 ASCENTIS ICOMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2020 18 Analysis of net assets between funds: Current year Group Intangible & tsngible Net ¢urrent Long term fixèd assets as*ts liabilitiè5 Totsl Unrestrictèd income fund& Designated Funds General Funds 126,789 4.800.485 126.789 5.119.730 319,245 Totsl funds 319.245 4.927.274 5.246,519 Charity Intangible & tangibl• Net ¢urrent Long term fixed assets awts liabilitie5 Tolal Unrestricted incom• lund Designated Funds General Funds 126.789 4.800,210 126,789 5.119,455 319.245 Total funds 319.245 4.926.999 S.246,244 19 Analysis of net assets between funds: PTior year Group Intsngibl* & tsngibje Nèt eurrènt Long temi fixed as¥ets asTets liabilities Totsl Unrestricted income fund& Designated Fund$ General Funds 129.533 4.455.087 129.S33 4,584,008 128,921 Total funds 128,921 4.584.620 4.713,541 Charity Intsngible & tsngible Net Gurrent Long tèmi fixed as*ts as*ts liabilities Totsl Unrestricted income funds Designated Funds General F￿d5 129,533 4.495.809 129,533 4,624,730 128.921 Total fvnds 128,921 4.625.342 4,7S4,263 -31- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2020 20 Control and related party transactions (including key management per50nnell The charity was under Ihe control of the Board of Truslees. who are also directors for the purposes of cornpany law in both Ihe current and prior peiKXI. No trustees were remunerated for their role as Irustees ofthe ¢harty. however one Trustee received employment benefrts lolalling £119.23912019.' £117.824}, ￿ClUdIng pension contributs.ons of £22,574 12019. £22.5741, loi their role as CEO. During the year. 4 tiuslees were reimbursed £339 {2019". Strustees reimburse¢J £7,811) lor expenses incurced. Key management personnel of the company received total remuneration of £372,063 12019.. £354,765) for the financial penod. There are no further disclosable related party transactions for the charity. 21 Events after the reporting period After the year end but before the approval of these accounts. the group has taken a strategic change of direction which has ￿sUIted in the planned closure of a regional office in the MKllands for one ol its subsidiary ent((ies. A period of ieslruclure is expected lo ¢xcur. and new opportvnrtie5 sought in the online sector and in line ￿th the rest of the group's offering_ 22 Limited by guarantee Every member guaianlees, in the event of the company bwng wound up while he, she or it remains member 01 within 12 mgnlhs of he. she or it ceasing to be a member. to contribute £1 towards the cost of dissdLrtion and the liabilities in¢urred by the charity while the ¢ontribuloT was a member.