**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 2021** 





**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CONTENTS** 

||**Page**|
|---|---|
|Charity reference and administrative details|2|
|Trustees’ annual report|3|
|Independent auditor’s report to the Trustees|8|
|Consolidated statement of financial activities (incorporating the income and<br>expenditure account)|12|
|Charity statement of financial activities (incorporating the income and expenditure<br>account)|13|
|Conslidated balance sheet|14|
|Charity balance sheet|15|
|Conslidated and charity cash flow statements|16|
|Notes to the accounts|17|



-1- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CHARITY REFERENCE AND ADMINISTRATIVE DETAILS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Registered charity name**|Ascentis|
|---|---|
|**Charity registration number**|1129180|
|**Company registration number**|06799564|
|**Principal office**|Ascenits House|
||3 Mannin Way|
||Caton Road|
||Lancaster|
||Lancashire|
||LA1 3SW|
|**The Trustees**|S Carlisle|
||P C Wilkinson|
||A Bolton|
||R Davies|
||R H Newton-Syms|
||P Rowe|
||A Rushton|
|**Chief executive officer**|P C Wilkinson|
|**Secretary**|F Lugiano|
|**Auditor**|MHA Moore and Smalley|
||Chartered Accountants & Statutory Auditor|
||Priory Close|
||St Mary’s Gate|
||Lancaster|
||Lancashire|
||LA1 1XB|



-2- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **TRUSTEES’ ANNUAL REPORT** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

The trustees have pleasure in presenting their report and the financial statements of the group and charity for the year ended 31 July 2021. This report includes the requirements of a directors’ report as required by company law. 

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

## **Reference and administrative details** 

Reference and administrative details are shown on page 2 of these financial statements. 

## **The trustees** 

The trustees who served the charity during the period were as follows: 

S Carlisle A J Turjansky (resigned 8 July 2021) P C Wilkinson A Bolton R Davies R H Newton-Syms P Rowe A Rushton 

## **Structure, governance and management** 

Ascentis is a charitable company limited by guarantee (06799564) incorporated on 23 January 2009 and registered with the charity commission (1129180) on 19 April 2009.  The company was established under a memorandum of association which defines the objects and powers of the charitable company and is governed under its articles of association.  In the event of the company being wound up, the members are required to contribute an amount not exceeding £1. 

## _Recruitment and appointment of new trustees_ 

The Board of Trustees appoints new trustees up to a maximum of 13 individuals.  The Search and Governance Committee recommends candidates with appropriate skills for consideration to the Board. 

One third of the trustees (or the number nearest one third) must retire at each AGM, those longest in office retiring first and the choice between any of equal service being made by drawing lots.  The retiring trustees shall be eligible for re-election. The trustees determine the remuneration of key management personnel. 

## _Induction and training of new trustees_ 

New trustees meet the Chief Executive Officer (CEO) and Company Secretary and are introduced to the staff. The services provided by Ascentis, and its objectives and strategy are discussed in detail.  The new trustee is issued with an information pack containing the following: 

- Responsibilities of Charity trustees 

- Memorandum and Articles of Association 

- Annual report and accounts 

- Minutes of the last board meeting 

- Year to date financial information 

- Schedule of Board meetings 

- Biographies of other trustees 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **TRUSTEES’ ANNUAL REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## _Organisational structure_ 

Every trustee must sign a Declaration of Willingness to act as a 'Trustee of the Charity' before they are eligible to vote at any meeting of the trustees. 

The trustees must hold at least 2 meetings a year and they are responsible for making strategic decisions.  All trustees who have signed the 'Trustee of the Charity' declaration have one vote on each issue at these meetings. Each issue may be determined by a simple majority of votes cast, with the Chairman having a second or casting a vote if necessary. 

The day to day running of the charity is delegated to the Group CEO, who meets formally with his executive team on a regular basis. 

## _Related parties_ 

All related party transactions entered into in the year are disclosed in the notes to the accounts. There are no significant relationships with any other charities or organisations, save in respect to its own subsidiaries. 

## **Aims, objectives and activities** 

The objects of Ascentis are to promote and advance education and training of young persons and adults. 

To achieve these objects, we aim to maintain and improve our portfolio of educational qualifications and make them accessible to a wider range of client groups. In this way, we can help young people and adults develop knowledge, acquire new skills and have this formally recognised in the form of nationally or internationally recognised qualifications. We also support pupils in primary and secondary schools through our dyslexia and dyscalculia intervention software. 

We review our aims and activities each year.  This review looks at: what has been achieved, the outcomes of our work in the previous 12 months, and the success of our activities in delivering benefits to those we were set up to help.  This review also helps to ensure that our aims and activities remain focused on our stated objectives and purpose.  We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and in planning our future activities.  In particular, we, the trustees, have considered how the planned activities will contribute to the aims that we have set. 

All our charitable activities focus on the promotion and advancement of education and training and are undertaken to further our charitable purposes for the public benefit. 

The main objectives and activities for the year were: to rationalise the qualification product 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 dyslexia & dyscalculia software provision to schools across UK and overseas, in particular the USA; to provide the optimal level of support to our clients; to strengthen our staffing and infrastructure; to maintain excellent financial health: to keep our staff safe and well during the pandemic and to manage the build and fit-out of a brand new office 

Ascentis ensures that every opportunity is taken to promote its work by maintaining a website, hosting events in locations across the UK and diverse advertising, such as through e-mail campaigns. 

The Trustees are pleased with the charity's progress against the objectives and in particular, recognise the strong financial performance despite the impact of Covid-19.  Group income increased over the previous year to £5.5m and the surplus achieved was significantly above the target. 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**TRUSTEES’ ANNUAL REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **STRATEGIC REPORT** 

## **Achievements and performance** 

This is Ascentis' twelfth year of operation since the transfer of activities and assets from the Open College of the North West on 1 August 2009. 

We further reviewed the product portfolio and revised it to provide a clear focus on our areas of strength during the year. As part of this, we expanded the markets for the key Ascentis qualification products and our dyslexia and dyscalculia intervention software services across the UK and overseas. In order to improve effectiveness, we invested appropriately in our staffing base and IT infrastructure. This included a major capital project to create a world-beating new office for the staff. This sound infrastructure has enabled us to deliver our stated objectives effectively. 

All of these actions increased the organisation's ability to continue to prosper within an exceptionally challenging business environment for the charity and education sectors. 

## **Financial review** 

## _Reserves policy_ 

We have examined the requirements for reserves in light of the main risks to the organisation and have established a policy whereby the free reserves (not including those in use funding the tangible fixed assets held by the charity or those designated for other purposes) should be between 4 and 9 months of normal charitable expenditure.  The budgeted charitable expenditure in 2021/2022 is £5.85m and therefore, the target reserves are between £1.95m and £4.4m. The reserves function as an important potential financial buffer during this period against turbulence in the planning environment. This turbulence represents a constant challenge to the charity and the trustees, therefore, believe that it is important to maintain reserves at a reasonable level. 

Total consolidated funds held at 31 July 2021 were £6.1m. After allowing for funds that can only be realised on disposal of a fixed asset (£1.8m) and the designated reserve (£122k), remaining free reserves are £4.2m, which remains in line with the above policy. The charity has no restricted funds. 

We continue to maintain a designated fund to meet the costs of any potential future uninsured liabilities that may arise from the TUPE (Transfer of Undertakings Protection of Employment) regulations, following the transfer of the activities of the former Open College of the North West into Ascentis in 2009.  The balance designated represents the maximum estimated potential liability, which will be recalculated annually and should reduce over time. 

## _Principal funding sources_ 

The principal source of income is from the registration and certification of candidates on qualifications developed and accredited by the charity and the sale of associated learning materials and also dyslexia and dyscalculia intervention software support service.  The expenditure of the charity on qualification and intervention software development, moderation and quality control and centre recognition all ensure that the qualifications and services offered provide the required benefits to those accessing them. 

## **Plans for future periods** 

The period since the inception of the charity has been extremely successful with significant overall growth, as we have reached out to a broader client base. Changes in Government policy in recent years relating to the funding available for educational qualifications represent a significant challenge for the charity, but as a result of an effective plan skilfully implemented by committed staff, the charity achieved a good surplus in the year despite the continuing negative impact of Covid-19. The Government policy changes will continue to represent a challenge to the charity and in the medium term, the target will be to maintain stability and continue to support our clients while achieving further steady growth. The impact of negative funding policy will be mitigated by further growth of the subsidiary and continued expansion of the Group’s overseas activity. 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **TRUSTEES’ ANNUAL REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

The charity has approved a realistic but challenging set of targets in its strategic plan. This commits the charity to an aspiration for achieving steady growth and to improving all aspects of its activity over the 2-year period to 2023. Progress towards this vision will be achieved by developing and maintaining a high-quality 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. Simultaneously, the Dyslexia and Dyscalculia Intervention Support service, delivered through the wholly owned subsidiary company IDLS Ltd, will be expanded to all regions of the UK and to specific overseas markets. Where appropriate, Ascentis will seek to achieve growth through the acquisition of smaller companies where such acquisitions are judged to represent a sound investment for the charity. 

Any surpluses generated will be reinvested in staffing and the organisation's infrastructure so that the level of resourcing is always sufficient to deliver a good service. 

The corporate objectives for the 2021-22 year are as follows: 

1. Financial Health: achievement of modest growth in income and a minimum break-even position, before any future-proofing investments. 

2. Product Development: development and maintenance of a qualifications portfolio and supporting learning materials which are aligned with Government policy, focused on our proven strengths and which meets the needs of local, regional, national and international stakeholders. 

3. Intervention Software support service: expansion of dyslexia and dyscalculia service across the UK and overseas, delivered through the subsidiary, IDLS Ltd. 

4. Training: Provision of on-line training delivered through the subsidiary Virtual Academy Ltd 

5. Governance: compliance with Companies House and Charity Commission requirements. 

6. Regulatory Compliance and Quality Assurance: maintenance of regulatory approval by Ofqual, Qualification Wales, CCEA and the Quality Assurance Agency for Higher Education. 

7. Human Resources: effective Human Resources structure supported by rigorous performance management and targeted staff development. 

8. Systems and Physical Infrastructure: effective maintenance and development of systems, IT and accommodation. 

## **Principal risks and uncertainties** 

## _Risk management_ 

The major risks to which the charity is exposed are reviewed and set out in the Business Continuity Plan, together with the systems established to mitigate those risks.  Currently, the most significant medium-term risk is considered to be the impact of changing government policy in relation to the funding of qualifications. Changes to immigration policies which result in a decrease in the number of people requiring ESOL (English for Speakers of Other Languages) qualifications represent an additional medium-term risk. Covid 19 remains a potential risk in relation to the possible closure of colleges and schools. 

## **Responsibilities of the trustees** 

The trustees (who are also the directors of Ascentis for the purposes of company law) are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and regulations. 

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## **ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **TRUSTEES’ ANNUAL REPORT (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and the income and expenditure of the charitable company for that period. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently 

- observe the methods and principles in the Charities Statement of Recommended Practice (SORP) 

- make judgements and accounting estimates that are reasonable and prudent 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in operation 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Companies Act 2006.  They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Auditor** 

MHA Moore and Smalley are deemed to be re-appointed under section 487(2) of the Companies Act 2006. 

Each of the persons who is a trustee at the date of approval of this report confirms that: 

- So far as they are aware there is no relevant audit information of which the group’s auditor is unaware; and 

- · each trustee 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 information. 

## **Approval** 

By approving the trustees report the trustees are also approving the strategic report in their capacity as company directors. 

Signed on behalf of the trustees 


## **Mr P C Wilkinson Trustee** 

14/01/2022 …………………… 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ASCENTIS** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **Opinion** 

We have audited the financial statements of Ascentis (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 July 2021 which comprise Consolidated Statement of Financial Activity, Charity Statement of Financial Activity, Consolidated Balance Sheet, Charity Balance Sheet, Consolidated and Charity Cash Flow Statements and notes to the financial statements, including a summary of significant accounting policies.  The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 July 2021, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ASCENTIS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **Other information** 

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trustees’ report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the strategic report and the trustees’ report have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the trustees’ report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors’ remuneration specified by law are not made; or 

- 

- we have not received all the information and explanations we require for our audit 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ASCENTIS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **Responsibilities of trustees** 

As explained more fully in the trustees’ responsibilities statement set out on pages 6-7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. 

Our 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 to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outline above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: 

- Enquiries with the board about any known or suspected instances of non-compliance with laws and regulations, including fraud; 

- Challenging assumptions and judgements made by the board in their significant accounting estimates; 

- An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness; 

- An evaluation of the charitable company's internal control environment; and 

- A review of board minutes. 

Because of the industry in which the charity operates, we identified the following areas as those most likely to have a material impact on the financial statements: compliance with Ofqual and QAA regulations, General Data Protection Regulation, employment law, and compliance with the UK Companies Act and Charities Act. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ASCENTIS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **Auditor’s responsibilities for the audit of the financial statements (continued)** 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: hiips://www.frc.org.uk/Our -Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidancefor-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 

This description forms part of our auditor’s report . 


## **Jenny McCabe (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountants and Statutory Auditor** 

Priory Close St Mary’s Gate Lancaster LA1 1XB 

Date: 17/01/2022 

_MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._ 

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## **ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2021** 

|**Income from:**<br>Charitable activities<br>**3**<br>Investments<br>**5**<br>Other<br>**6**<br>**Total**<br>**Expenditure on:**<br>Charitable activities<br>**7**<br>**Total**<br>**Net income before transfers**<br>**9**<br>Transfers<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Unrestricted**<br>**Restricted**<br>**Total funds**<br>Total funds<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>**5,458,698**<br>**-**<br>**5,458,698**<br>4,997,154<br>**2,707**<br>**-**<br>**2,707**<br>13,673<br>**65,864**<br>**-**<br>**65,864**<br>82,340|
|---|---|
||**5,527,269**<br>**-**<br>**5,527,269**<br>5,093,167|
||**4,680,902**<br>**-**<br>**4,680,902**<br>4,560,189|
||**4,680,902**<br>**-**<br>**4,680,902**<br>4,560,189|
||**846,367**<br>**-**<br>**846,367**<br>532,978<br>**-**<br>**-**<br>**-**<br>-|
||**846,367**<br>**-**<br>**846,367**<br>532,978<br>**5,246,519**<br>**-**<br>**5,246,519**<br>4,713,541|
||**6,092,886**<br>**-**<br>**6,092,886**<br>5,246,519|



The Statement of Financial Activities includes all recognised gains and losses in the year. 

All of the above amounts relate to continuing activities except as described in notes 3 and 7. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

The notes on pages 17 to 33 form part of these financial statements. 

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## **ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CHARITY STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

|**Income from:**<br>Charitable activities<br>**3**<br>Trading income<br>**4**<br>Investments<br>**5**<br>Other<br>**6**<br>**Total**<br>**Expenditure on:**<br>Charitable activities<br>**7**<br>**Total**<br>**Net income before transfers**<br>**9**<br>Transfers<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Unrestricted**<br>**Restricted**<br>**Total funds**<br>Total funds<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>**4,541,462**<br>**-**<br>**4,541,462**<br>4,237,898<br>**4,232**<br>**-**<br>**4,232**<br>-<br>**2,707**<br>**-**<br>**2,707**<br>13,673<br>**56,826**<br>**-**<br>**56,826**<br>57,951|
|---|---|
||**4,605,227**<br>**-**<br>**4,605,227**<br>4,309,522|
||**3,845,678**<br>**-**<br>**3,845,678**<br>3,817,541|
||**3,845,678**<br>**-**<br>**3,845,678**<br>3,817,541|
||**759,549**<br>**-**<br>**759,549**<br>491,981<br>**-**<br>**-**<br>**-**<br>-|
||**759,549**<br>**-**<br>**759,549**<br>491,981<br>**5,246,244**<br>**-**<br>**5,246,244**<br>4,754,263|
||**6,005,793**<br>**-**<br>**6,005,793**<br>5,246,244|



The Statement of Financial Activities includes all recognised gains and losses in the year. 

All of the above amounts relate to continuing activities. 

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 

The notes on pages 17 to 33 form part of these financial statements. 

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**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CONSOLIDATED BALANCE SHEET** 

## **AS AT 31 JULY 2021** 

|**Fixed assets**<br>Tangible assets<br>**11**<br>Intangible assets<br>**12**<br>**Current assets**<br>Debtors<br>**13**|**£**<br>**£**<br>£<br>£<br>**1,804,803**<br>302,295<br>**3,863**<br>16,950<br>**1,808,666**<br>319,245<br>**545,395**<br>678,826<br>**2021**<br>2020|**£**<br>**£**<br>£<br>£<br>**1,804,803**<br>302,295<br>**3,863**<br>16,950<br>**1,808,666**<br>319,245<br>**545,395**<br>678,826<br>**2021**<br>2020|
|---|---|---|
||**545,395**||
|Cash at bank and in hand|**4,579,671**|5,013,209|
|**Creditors:**amounts falling due within<br>one year<br>**15**<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Provisions for liabilities**<br>**Net assets**<br>**Funds:**<br>Unrestricted funds<br>**17**<br>**Total funds**||5,692,035<br><br>(764,761)<br>**4,284,220**<br>4,927,274<br>**6,092,886**<br>5,246,519<br>**-**<br>-<br>**6,092,886**<br>5,246,519<br>**6,092,886**<br>5,246,519<br>**6,092,886**<br>5,246,519|
||**5,125,066**<br>**(840,846)**||
||||



These accounts were approved by the members of the committee and authorised for issue on the 

14/01/2022 ……………….. and are signed on their behalf by: 


…………………………………… 

## **Mr P C Wilkinson Trustee** 

## **Company Registration Number:** 06799564 

The notes on pages 17 to 33 form part of these financial statements. 

-14- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CHARITY BALANCE SHEET** 

## **AS AT 31 JULY 2021** 

|**Fixed assets**<br>Tangible assets<br>**11**<br>Intangible assets<br>**12**<br>**Current assets**<br>Debtors<br>**13**<br>Investments<br>**14**<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within<br>one year<br>**15**<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Provisions for liabilities**<br>**Net assets**<br>**Funds:**<br>Unrestricted funds<br>**17**<br>**Total funds**|**£**<br>**£**<br>£<br>£<br>**1,804,803**<br>302,295<br>**3,863**<br>16,950<br>**1,808,666**<br>319,245<br>**620,504**<br>723,175<br>**2**<br>2<br>**4,372,187**<br>4,930,848<br>**4,992,693**<br>5,654,025<br>**(795,566)**<br>(727,026)<br>**4,197,127**<br>4,926,999<br>**6,005,793**<br>5,246,244<br>**-**<br>-<br>**6,005,793**<br>5,246,244<br>**6,005,793**<br>5,246,244<br>**6,005,793**<br>5,246,244<br>**2021**<br>2020|
|---|---|
||**620,504**<br>**2**<br>**4,372,187**|
||**4,992,693**<br>**(795,566)**|
|||



These accounts were approved by the members of the committee and authorised for issue on 

14/01/2022 …………………. and are signed on their behalf by: 

…………………………………… 

## **Mr P C Wilkinson Trustee** 

## **Company Registration Number:** 06799564 

The notes on pages 17 to 33 form part of these financial statements. 

-15- 



## **ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **CONSOLIDATED AND CHARITY CASH FLOW STATEMENTS** 

## **FOR THE YEAR END 31 JULY 2021** 


**----- Start of picture text -----**<br>
Group  Group  Charity Charity<br>2021  2020  2021  2020<br>Total Total Total Total<br>£ £ £ £<br>Cash generated in operating activities 1,203,889  654,975  1,078,766  593,828<br>Cashflows from investing activities<br>Investment income 2,707  13,673  2,707  13,673<br>Purchase of tangible fixed assets (1,649,400) (275,052) (1,649,400) (275,052)<br>Receipts from sale of fixed assets 9,266  6,249  9,266  6,249<br>Purchase of investment acquisitions -  (100,000) -  (100,000)<br>Cash generated/(used) in investing<br>activities (1,637,427) (355,130) (1,637,427) (355,130)<br>Increase/ (decrease) in cash and cash<br>equivalents in the year  (433,538) 299,845  (558,661) 238,698<br>Cash and cash equivalents b/fwd  5,013,209  4,713,364  4,930,848  4,692,150<br>Cash and cash equivalents c/fwd  4,579,671  5,013,209  4,372,187  4,930,848<br>Reconciliation of net movement in funds to net cashflow from operating activities<br>Net movement in funds 846,367  532,978  759,549  491,981<br>Investment income received (2,707) (13,673) (2,707) (13,673)<br>Depreciation and amortisation 138,400  77,599  138,400  77,599<br>(Increase)/Decrease in debtors 133,431  10,950  102,671  (12,241)<br>Increase/(Decrease) in creditors 76,085  (53,759) 68,540  (50,718)<br>Loss on disposal of fixed assets 12,313  880  12,313  880<br>Impairment of purchase acquisitions -  100,000  -  100,000<br>Net cash generated in operating<br>activities  1,203,889  654,975  1,078,766  593,828<br>Components of cash and cash equivalents<br>Cash at bank and in hand 4,579,671  5,013,209  4,372,187  4,930,848<br>4,579,671  5,013,209  4,372,187  4,930,848<br>**----- End of picture text -----**<br>


The notes on pages 17 to 33 form part of these financial statements. 

-16- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Accounting policies** 

## **Legal form** 

Ascentis is a registered charity and a limited company, limited by guarantee, as defined by the Companies Act 2006, incorporated in England and Wales.  In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. 

The registered office of the charity, the nature of its operations and its principal activities are all detailed in the charity administrative details of these financial statements. 

## **Basis of preparation** 

Ascentis meets the definition of a public benefit entity under FRS102.  The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)– (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Companies Act 2006. 

The financial statements are prepared in sterling, which is the functional currency of the charity.  Monetary amounts are rounded to the nearest £. 

The financial statements have been prepared on a going concern basis under the historical cost convention. The particular accounting policies adopted by the trustees are described below. These policies have been consistently applied to all years presented unless otherwise stated. 

The consolidated accounts of the group incorporate the accounts of Ascentis (“the Charity”) and its wholly owned subsidiaries International Dyslexia Learning Solutions Limited and Virtual Academy Ltd. The results of the subsidiaries are consolidated on a line by line basis. 

## **Preparation of the accounts on a going concern basis** 

The trustees assess whether the use of going concern is appropriate i.e whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. 

## **Income** 

Registration and certification fees are recognised over the period to which they relate. Where course registration income spans the financial year end, the Charity has a policy of deferring 2/3rds of such income to the point of certification, where the Charity incurs the costs of moderation. 

IDL Learning income represents amounts receivable for services net of VAT and trade discounts. Turnover from the sale or renewal of literacy and numeracy licences is recognised on purchase by the customer on the basis that there is no recourse of such income and the risks and rewards have transferred to the buyer. 

VA income represents amounts receivable for services net of VAT and trade discounts. Turnover from the sale of training courses is recognised on the date of course delivery to the customer on the basis that there is no recourse of such income and the risks and rewards have transferred to the buyer. 

Investment income is credited to the statement of financial activities in the period in which it becomes receivable. 

-17- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

**FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Accounting policies (continued)** 

Government grants receivable represent income under the Coronavirus Job Retention Scheme (CJRS) to reimburse the company of costs incurred in retaining staff who were furloughed due to the impact of closure due to COVID-19. CJRS grants are recognised to match the costs incurred by the company for the period claims are made. 

Other grants receivable represent income from trading grants and other grants. A grant that specifies performance conditions is recognised in income when the performance conditions are met.  Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. 

## **Expenditure** 

All expenditure is accounted for on an accruals basis in the expense categories required by the SORP. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Costs are further allocated between the activities undertaken on a basis consistent with the use of the resources. Expenditure includes irrecoverable VAT. 

Charitable expenditure includes costs incurred in the delivery of the charities activities and services.  It includes both direct costs, including staff costs, that are incurred in the delivery of the activities and services and indirect costs which are required to support the delivery of the charitable objects. 

Costs of raising funds include those costs in relation to the charity’s operations which are used to generate further income which is integral to the charity in meeting its charitable objectives. 

Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources. 

## **Fixed assets** 

All fixed assets are initially recorded at cost. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their residual value, over their expected useful lives on the following bases: 

|Office equipment|-|3 to 5 years|
|---|---|---|
|Fixtures and fittings|-|5 to 7 years|
|Motor vehicles|-|2 to 3 years|
|Property improvements|-|5 to 15 years|



## **Amortisation** 

Amortisation is calculated so as to write off the cost of the asset, less its estimate residual value, over the useful economic life of that asset as follows: 

Website costs 

3 years 

## **Investments** 

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs.  Investments are subsequently stated at fair value if the shares are publicly traded or their fair value can otherwise be measured reliably.  Other investments, such as the investment in the subsidiary, are measured at cost less impairment.  The SOFA included the net gains and losses arising on revaluations and disposals throughout the year. 

-18- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Accounting policies (continued)** 

## **Cash and cash equivalents** 

Cash balances represent cash in hand and deposits held at banks and building societies. 

## **Debtors and creditors within one year** 

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 

## **Fund accounting** 

## _Unrestricted funds_ 

General funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. 

## _Designated funds_ 

Designated funds are unrestricted funds set aside by the Trustees to cover future potential or actual monetary commitments. The fund balances are reviewed annually by the trustees. 

## _Restricted funds_ 

Restricted funds arise where there is a donor-imposed restriction on the use of the funds, or the funds have arisen in response to an appeal for a specified purpose. The charity currently has no restricted funds. 

## **Operating lease agreements** 

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease. 

## **Pensions** 

Ascentis operates a defined contribution pension scheme for employees of the group. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the statement of financial activities. 

## **Redundancy costs** 

Redundancy costs are expensed when the liability 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 478-489 of the Corporation Taxes Act 2010 to the extent that income is applied exclusively for charitable purposes. 

## **Foreign currencies** 

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating profit. 

-19- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Accounting policies (continued)** 

## **Financial instruments** 

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. 

Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to contractual provisions of the instrument. 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. 

## _Basic financial assets_ 

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within 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 method, less any impairment. 

## _Impairment of financial assets_ 

Financial assets are assessed for indicators of impairment at each reporting end date. 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of comprehensive income. 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal 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-recognition of financial assets_ 

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. 

## _Classification of financial liabilities_ 

Financial liabilities are classified according to the substance of the contractual arrangements entered into. 

-20- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **1 Accounting policies (continued)** 

_Basic financial liabilities_ 

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 

Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. 

_De-recognition of financial liabilities_ 

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. 

## **2 Judgements and key sources of estimation uncertainty** 

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

## **Key assumptions, judgements and estimates** 

There have been no key assumptions concerning future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **Income recognition** 

As stated in the accounting policies on page 17, the Charity has a policy of deferring income for course registrations which span the year end until the point of certification where the charity incurs the costs of moderation. The Trustees have determined that it is appropriate to defer 2/3rds of income for course registration fees to this date on the basis that the charity incurs most of its costs at this point in time. 

The Trustees have also determined that turnover from the sale or renewal of literacy and numeracy licences is recognised on purchase 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 assumptions on an ongoing basis, and they have been consistently applied in all 

periods. 

The Trustees have not identified any further key judgements in these financial statements. 

-21- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **3 Income from charitable activities** 

|**Income from charitable activities**||
|---|---|
|**Group**<br>Awarding qualification income<br>IDL income<br>VA income<br>**Charity**<br>Awarding qualification income|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>4,541,462<br>-<br>**4,541,462**<br>4,237,898<br>909,908<br>-<br>**909,908**<br>688,965<br>7,328<br>**-**<br>**7,328**<br>70,291|
||**5,458,698**<br>**-**<br>**5,458,698**<br>4,997,154|
||4,541,462<br>-<br>**4,541,462**<br>4,237,898|
||**4,541,462**<br>**-**<br>**4,541,462**<br>4,237,898|
|||



All income from charitable activities in the comparative period was unrestricted. Income of £7,328 (2020: £70,291) relates to activities which have been discontinued. 

## **4 Income from trading activities** 

|**Charity Only**<br>Donation from trading subsidiary|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>4,232<br>-<br>**4,232**<br>-|
|---|---|
||**4,232**<br>**-**<br>**4,232**<br>-|
|||



## **5 Income from investments** 

|**Income from investments**||
|---|---|
|**Group and charity**<br>Bank interest receivable|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>2,707<br>-<br>**2,707**<br>13,673|
||**2,707**<br>**-**<br>**2,707**<br>13,673|
|||



All income from investments the comparative period was unrestricted. 

-22- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **6 Other income** 

|**Other income**||
|---|---|
|**Group**<br>Grant income<br>Other sundry income<br>**Charity**<br>Grant income<br>Interest on group loan|**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>65,572<br>-<br>**65,572**<br>82,319<br>292<br>**-**<br>**292**<br>21|
||**65,864**<br>**-**<br>**65,864**<br>82,340|
||**Unrestricted**<br>**Restricted**<br>**Total**<br>Total<br>**funds**<br>**funds**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>55,817<br>**-**<br>**55,817**<br>56,801<br>1,009<br>-<br>**1,009**<br>1,150|
||**56,826**<br>**-**<br>**56,826**<br>57,951|
|||



All other income in the comparative period was unrestricted. 

## **7 Expenditure on charitable activities** 

|**Expenditure on charitable activities**||
|---|---|
|**Group**<br>Costs of generating IDL income<br>Costs of generating VA income<br>Support costs (**see note 8**)<br>**Charity**<br>Support costs (**see note 8**)<br>Costs of generating awarding qualification<br>income<br>Costs of generating awarding qualification<br>income|**Total**<br>Total<br>**Unrestricted**<br>**Restricted**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>1,887,152<br>-<br>**1,887,152**<br>1,990,034<br>490,286<br>-<br>**490,286**<br>355,874<br>9,092<br>-<br>**9,092**<br>88,670<br>2,294,372<br>-<br>**2,294,372**<br>2,125,611<br>**Promotion of education**<br>**and training**|
||**4,680,902**<br>**-**<br>**4,680,902**<br>4,560,189<br>**Total**<br>Total<br>**Unrestricted**<br>**Restricted**<br>**2021**<br>2020<br>**£**<br>**£**<br>**£**<br>£<br>1,834,946<br>-<br>**1,834,946**<br>1,930,681<br>2,010,732<br>-<br>**2,010,732**<br>1,886,860|
||**3,845,678**<br>**-**<br>**3,845,678**<br>3,817,541|



-23- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **7 Expenditure on charitable activities (continued)** 

All expenditure on charitable activities in the comparative period was unrestricted for both Group and Charity. Included within group expenditure on charitable activities is expenditure of £9,092 (2020: £88,670) relating to discontinued operations. 

## **8 Support costs** 

|**Support costs**||
|---|---|
|**Group**<br>Wages and salaries<br>Rent<br>Rates and water<br>Light and heat<br>Repairs and maintenance<br>Insurance<br>Health and safety<br>Consultancy fees<br>Telephone<br>Advertising<br>Printing, postage and stationary<br>Depreciation<br>Amortisation<br>Information Technology<br>Conference costs<br>Sundry expenses<br>Bank charges<br>Bad debts<br>Loss on disposal of fixed assets<br>Accountancy fees<br>Audit Fees<br>Legal fees<br>Professional subscriptions<br>Impairment of investment<br>**Total support costs for group**|**Charitable**<br>**Total**<br>Total<br>**activities**<br>**2021**<br>2020<br>**£**<br>**£**<br>£<br>851,477<br>**851,477**<br>874,610<br>278,807<br>**278,807**<br>144,905<br>64,524<br>**64,524**<br>13,345<br>14,046<br>**14,046**<br>14,537<br>156,989<br>**156,989**<br>28,027<br>30,903<br>**30,903**<br>35,581<br>8,865<br>**8,865**<br>3,774<br>44,633<br>**44,633**<br>46,180<br>6,023<br>**6,023**<br>4,538<br>400<br>**400**<br>-<br>6,109<br>**6,109**<br>13,456<br>125,315<br>**125,315**<br>64,512<br>13,087<br>**13,087**<br>13,087<br>533,788<br>**533,788**<br>465,378<br>8,156<br>**8,156**<br>14,091<br>79,773<br>**79,773**<br>100,482<br>4,658<br>**4,658**<br>4,255<br>(17,628)<br>**(17,628)**<br>20,924<br>12,313<br>**12,313**<br>880<br>17,330<br>**17,330**<br>21,547<br>13,850<br>**13,850**<br>13,350<br>40,681<br>**40,681**<br>127,563<br>271<br>**271**<br>589<br>-<br>**-**<br>100,000|
||**2,294,370**<br>**2,294,370**<br>2,125,611|
|||



-24- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **8 Support costs (continued)** 

|**Charity**<br>Wages and salaries<br>Rent<br>Rates and water<br>Light and heat<br>Repairs and maintenance<br>Insurance<br>Health and safety<br>Consultancy fees<br>Telephone<br>Printing, postage and stationary<br>Depreciation<br>Amortisation<br>Information Technology<br>Conference costs<br>Sundry expenses<br>Bank charges<br>Bad debts<br>Loss on disposal of fixed assets<br>Accountancy fees<br>Audit Fees<br>Legal fees<br>Intercompany loan waived<br>Impairment of investment<br>**Total support costs for charity**|**Charitable**<br>**Total**<br>Total<br>**activities**<br>**2021**<br>2020<br>**£**<br>**£**<br>£<br>708,166<br>**708,166**<br>724,125<br>276,007<br>**276,007**<br>141,055<br>64,524<br>**64,524**<br>13,345<br>14,046<br>**14,046**<br>14,537<br>156,762<br>**156,762**<br>26,902<br>30,740<br>**30,740**<br>34,899<br>8,865<br>**8,865**<br>3,774<br>40,087<br>**40,087**<br>45,930<br>4,775<br>**4,775**<br>3,757<br>6,033<br>**6,033**<br>9,290<br>125,315<br>**125,315**<br>64,512<br>13,087<br>**13,087**<br>13,087<br>439,928<br>**439,928**<br>397,684<br>8,156<br>**8,156**<br>14,091<br>48,621<br>**48,621**<br>83,290<br>2,156<br>**2,156**<br>2,101<br>(1,392)<br>**(1,392)**<br>3,068<br>12,313<br>**12,313**<br>880<br>13,309<br>**13,309**<br>17,856<br>8,750<br>**8,750**<br>8,200<br>27,428<br>**27,428**<br>121,904<br>3,056<br>**3,056**<br>42,573<br>**-**<br>100,000|
|---|---|
||**2,010,732**<br>**2,010,732**<br>**1,886,860**|
|||



-25- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021** 

## **9 Net income for the year** 

|**Net income for the year**||
|---|---|
|**Net income is stated after charging:**<br>**Group**<br>Staff pension contributions<br>Audtors' remuneration<br>- audit of the financial statements<br>Depreciation of tangible assets<br>- owned by the charity<br>Amortisation of intangible assets<br>- owned by the charity<br>**Charity**|**2021**<br>2020<br>**£**<br>£<br>**112,330**<br>134,793<br>**13,850**<br>13,350<br>**125,315**<br>64,512<br>**13,087 **<br>13,087|
|||
|Staff pension contributions|**90,114**<br>115,089|
|Audtors' remuneration<br>- audit of the financial statements<br>Depreciation of tangible assets<br>- owned by the charity<br>Amortisation of intangible assets<br>- owned by the charity|**8,750**<br>8,200<br>**125,313**<br>64,512<br>**13,087**<br>13,087|
|||
|**Staff costs and emoluments**||
|**Total staff costs were as follows:**<br>**Group**<br>Wages and salaries<br>Social security costs<br>Pension costs<br>**Total group staff costs**<br>**Charity**<br>Wages and salaries<br>Social security costs<br>Pension costs<br>**Total charity staff costs**|**2021**<br>2020<br>**£**<br>£<br>**2,516,647**<br>2,372,839<br>**223,250**<br>203,892<br>**112,330**<br>134,793|
||**2,852,227**<br>2,711,524|
||**2,009,708**<br>1,927,774<br>**173,515**<br>164,393<br>**90,114**<br>115,089|
||**2,273,337**<br>2,207,256|
|||



## **10 Staff costs and emoluments** 

-26- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **10 Staff costs and emoluments (continued)** 

## **Particulars of employees:** 

The average head count number of staff employed by the group during the year was as follows: 

|Executive<br>Charitable<br>Support<br>IDLS<br>VA|**2021**<br>2020<br>**No**<br>No<br>**3**<br>3<br>**75**<br>71<br>**16**<br>17<br>**14**<br>15<br>**1**<br>2|
|---|---|
||**109**<br>108|
|||



The number of employees, whose remuneration for the year fell within the following bands, were: 

|£60,000 - £69,999<br>£70,000 - £79,999|**2021**<br>2020<br>**No**<br>No<br>**1**<br>1<br>**1**<br>2|
|---|---|
|£90,000 - £99,999|**-**<br>1|
|£100,000-109,999|**1**<br>-|
|||



During the year, the following number of employees earning more than £60,000 had contributions to pension schemes: 

||**2021**<br>2020<br>**No**<br>No|
|---|---|
|Accrued benefits under defined contribution<br>pension schemes|**3**<br>4|
|||
|||



Total employer contributions in the year for the provision of defined contribution pension schemes in respect of employees earning more than £60,000 were £29,846 (2020: £44,297). 

-27- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **11 Tangible fixed assets** 


**----- Start of picture text -----**<br>
Group and charity Leasehold  Fixtures & Motor<br>Property Fittings Equipment Vehicles Totals<br>£ £ £ £ £<br>Cost<br>At 1 August 2020 163,451  10,303  321,332  86,807  581,893<br>Additions 890,791  533,603  225,006  -  1,649,400<br>Disposals (163,451) (10,303) (47,211) (14,167) (235,132)<br>At 31 July 2021 890,791  533,603  499,127  72,640  1,996,161<br>Depreciation<br>At 1 August 2020 163,451  10,303  102,114  3,730  279,598<br>Charge for the year 20,208  19,093  71,185  14,829  125,315<br>Eliminated on disposals (163,451) (10,303) (34,356) (5,445) (213,555)<br>At 31 July 2021 20,208  19,093  138,943  13,114  191,358<br>Net book value<br>At 31 July 2021 870,583  514,510  360,184  59,526  1,804,803<br>At 31 July 2020 -  -  219,218  83,077  302,295<br>**----- End of picture text -----**<br>


## **12 Intangible assets** 

|**Group and charity**<br>**Cost**<br>At 1 August 2020<br>Additions<br>**At 31 July 2021**<br>**Amorisation**<br>At 1 August 2020<br>Charge for the year<br>**At 31 July 2021**<br>**Net book value**<br>**At 31 July 2021**<br>At 31 July 2020|**Other**<br>**intangible**<br>**assets**<br>**Totals**<br>**£**<br>**£**<br>39,260<br>39,260<br>-<br>-|
|---|---|
||**39,260**<br>**39,260**|
||22,310<br>22,310<br>13,087<br>13,087|
||**35,397**<br>**35,397**|
||**3,863**<br>**3,863**|
||16,950<br>16,950|
|||



-28- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **13 Debtors** 

|**Debtors**|||
|---|---|---|
|Trade debtors<br>Amounts owed by group undertakings<br>Prepayments and accrued income<br>Other debtors|**Group**<br>Group<br>**2021**<br>2020<br>**£**<br>£<br>**358,764**<br>443,704<br>**-**<br>-<br>**181,880**<br>233,597<br>**4,751**<br>1,525|**Charity**<br>Charity<br><br>**2021**<br>2020<br><br>**£**<br>£<br>**302,282**<br>344,400<br>**147,003**<br>157,628<br>**167,341**<br>221,147<br>**3,878**<br>-|
||**545,395**<br>678,826|**620,504**<br>723,175|
||||
|**Investments**|||
|**Group**<br>**Investments in subsidiary undertakings**<br>Cost brought forward<br>Additions<br>Disposal<br>Impairment brought forward<br>Impairment<br>Eliminated on disposal<br>**Total investments**<br>**Charity**<br>**Investments in subsidiary undertakings**<br>Cost brought forward<br>Additions<br>Disposals<br>Impairment brought forward<br>Impairment<br>Eliminated on disposal<br>**Total investments**||**2021**<br>2020<br>**£**<br>£<br>**100,000**<br>-<br>**-**<br>100,000<br>**(100,000)**<br>-<br>**(100,000)**<br>-<br>**-**<br>(100,000)<br>**100,000**<br>-|
|||**-**<br>-|
|||**100,002**<br>2<br>**-**<br>100,000<br>**(100,000)**<br>-<br>**(100,000)**<br>-<br>**-**<br>(100,000)<br>**100,000**<br>-|
|||**2**<br>2|
||||



## **14 Investments** 

Included in investments is £1 representing the entire of the issued share capital of International Dyslexia Learning Solutions Limited and Virtual Academy Ltd (formerly Premier Training Services. Both companies are incorporated in England and Wales. 

During the previous year the charity acquired the trade, assets and goodwill of a business which had operated through a subsidiary company during the previous year. As a result of the Covid-19 pandemic, a strategic change in direction had been made and as a result the goodwill acquired in the previous year had been fully impaired in the period. 

-29- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **15 Creditors: amounts falling due within one year** 

|Trade creditors<br>Other taxation and social security<br>Other creditors<br>Accruals and deferred income<br>**Deferred income**<br>Balance brought forward<br>Release of deferred income<br>Income deferred to 2021-22|**Group**<br>Group<br>**2021**<br>2020<br>**£**<br>£<br>**114,067**<br>189,512<br>**100,295**<br>70,136<br>**4,580**<br>20,482<br>**621,904**<br>484,631|**Charity**<br>Charity<br><br>**2021**<br>2020<br><br>**£**<br>£<br>**107,746**<br>176,025<br>**100,295**<br>70,136<br>**54**<br>20,402<br>**587,471**<br>460,463|
|---|---|---|
||**840,846**<br>764,761|**795,566**<br>727,026|
|||**2021**<br>2020<br>**£**<br>£<br>**265,970**<br>305,705<br>**(265,970)**<br>(305,705)<br>**224,940**<br>265,970|
|||**224,940**<br>265,970|
||||
|**Commitments under operating leases**|||
|**Group and charity**<br>Within 1 year<br>Within 2 to 5 years<br>After more than 5 years<br>**Charity only**<br>Within 1 year<br>Within 2 to 5 years<br>After more than 5 years|**2021**<br>**2021**<br>2020<br>2020<br>**Land and**<br>**Other**<br>Land and<br>Other<br>**Buildings**<br>**items**<br>Buildings<br>items<br>**£**<br>**£**<br>£<br>£<br>**205,249**<br>**33,042**<br>110,964<br>33,269<br>**1,312,500**<br>**54,526**<br>-<br>2,409<br>**2,231,250**<br>**-**<br>-<br>-||
||**3,748,999**<br>**87,568**<br>110,964<br>35,678||
||**2021**<br>**2021**<br>2020<br>2020<br>**Land and**<br>**Other**<br>Land and<br>Other<br>**Buildings**<br>**items**<br>Buildings<br>items<br>**£**<br>**£**<br>£<br>£<br>**205,249**<br>**33,042**<br>108,864<br>33,269<br>**1,312,500**<br>**54,526**<br>-<br>2,409<br>**2,231,250**<br>**-**<br>-<br>-||
||**3,748,999**<br>**87,568**<br>108,864<br>35,678||
||||



## **16 Commitments under operating leases** 

-30- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **17 Unrestricted income funds: Current year** 

|**Unrestricted income funds:**|**Current year**|
|---|---|
|**Group**<br>Designated Funds<br>General Funds<br>**Unrestricted funds**<br>**Charity**<br>Designated Funds<br>General Funds<br>**Unrestricted funds**|**At 1**<br>**At 31**<br>**August**<br>**Transfers/**<br>**July**<br>**2020**<br>**Income Expenditure revaluations**<br>**2021**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>126,789<br>-<br>-<br>(4,319)<br>**122,470**<br>5,119,730<br>5,527,269<br>(4,680,902)<br>4,319<br>**5,970,416**|
||**5,246,519**<br>**5,527,269**<br>**(4,680,902)**<br>**-**<br>**6,092,886**|
||126,789<br>-<br>-<br>(4,319)<br>**122,470**<br>5,119,455<br>4,605,227<br>(3,845,678)<br>4,319<br>**5,883,323**|
||**5,246,244**<br>**4,605,227**<br>**(3,845,678)**<br>**-**<br>**6,005,793**|
|||



The Trustees have created a designated fund to meet the cost of any potential future uninsured liabilities that may arise from the TUPE (Transfer of Undertakings Protection of Employment) regulations, following the transfer of the activities of the former Open College of the North West into Ascentis in 2009. The balance of £122,470 represents the maximum estimated potential liability, which will be recalculated annually, and the amount of the designated fund adjusted accordingly. 

## **18 Unrestricted income funds: Prior year** 

|**Unrestricted income funds:**|**Prior year**|
|---|---|
|**Group**<br>Designated Funds<br>General Funds<br>**Unrestricted funds**<br>**Charity**<br>Designated Funds<br>General Funds<br>**Unrestricted funds**|**At 1**<br>**At 31**<br>**August**<br>**Transfers/**<br>**July**<br>**2019**<br>**Income Expenditure revaluations**<br>**2020**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>129,533<br>-<br>-<br>(2,744)<br>**126,789**<br>4,584,008<br>5,093,167<br>(4,560,189)<br>2,744<br>**5,119,730**|
||**4,713,541**<br>**5,093,167**<br>**(4,560,189)**<br>**-**<br>**5,246,519**|
||129,533<br>-<br>-<br>(2,744)<br>**126,789**<br>4,624,730<br>4,309,522<br>(3,817,541)<br>2,744<br>**5,119,455**|
||**4,754,263**<br>**4,309,522**<br>**(3,817,541)**<br>**-**<br>**5,246,244**|
|||



-31- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **19 Analysis of net assets between funds: Current year** 


**----- Start of picture text -----**<br>
Group  Intangible<br>& tangible Net current Long term<br>fixed assets assets liabilities Total<br>£ £ £ £<br>Unrestricted income funds:<br>Designated Funds -  122,470  -  122,470<br>General Funds 1,808,666  4,161,750  -  5,970,416<br>Total funds  1,808,666  4,284,220  -  6,092,886<br>Charity Intangible<br>& tangible Net current Long term<br>fixed assets assets liabilities Total<br>£ £ £ £<br>Unrestricted income funds:<br>Designated Funds -  122,470  -  122,470<br>General Funds 1,808,666  4,074,657  -  5,883,323<br>Total funds  1,808,666  4,197,127  -  6,005,793<br>**----- End of picture text -----**<br>


## **20 Analysis of net assets between funds: Prior year** 

|**Group**<br>**Unrestricted income funds:**<br>Designated Funds<br>General Funds<br>**Total funds**<br>**Charity**<br>**Unrestricted income funds:**<br>Designated Funds<br>General Funds<br>**Total funds**|**Intangible**<br>**& tangible**<br>**Net current**<br>**Long term**<br>**fixed assets**<br>**assets**<br>**liabilities**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>126,789<br>-<br>126,789<br>319,245<br>4,800,485<br>-<br>5,119,730|
|---|---|
||**319,245**<br>**4,927,274**<br>**-**<br>**5,246,519**|
||**Intangible**<br>**& tangible**<br>**Net current**<br>**Long term**<br>**fixed assets**<br>**assets**<br>**liabilities**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>126,789<br>-<br>126,789<br>319,245<br>4,800,210<br>-<br>5,119,455|
||**319,245**<br>**4,926,999**<br>**-**<br>**5,246,244**|



-32- 



**ASCENTIS (COMPANY LIMITED BY GUARANTEE)** 

**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** 

## **FOR THE YEAR ENDED 31 JULY 2021** 

## **21 Control and related party transactions (including key management personnel)** 

The charity was under the control of the Board of Trustees’ who are also directors for the purposes of company law in both the current and prior period. 

No trustees were remunerated for their role as trustees of the charity, however one Trustee received employment benefits totalling £129,927 (2020: £119,239), including pension contributions of £15,520 (2020: £22,574), for their role as CEO. 

During the year, 2 trustees were reimbursed £191 (2020: 4 trustees reimbursed £339) for expenses incurred. 

Key management personnel of the company received total remuneration of £300,202 (2020: £372,063) for the financial period. 

There are no further disclosable related party transactions for the charity. 

## **22 Limited by guarantee** 

Every member guarantees, in the event of the company being wound up while he, she or it remains a member or within 12 months of he, she or it ceasing to be a member, to contribute £1 towards the cost of dissolution and the liabilities incurred by the charity while the contributor was a member. 

-33-