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 2023 Iwlliiiiiiiii *AC153G8Q' 2011212023 CC•APANIES HOUSE centis Qmha MOORE & SMALLEY AwPrdlr￿ OrEani5aDon ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONTENTS Page Charity reference and administrative dètails Trustees, annual report Independent au¢Jilorfs report to the ￿￿berS and Trustees Consolidated statement of financial activities {incorporab"ng the Ir￿Me and expenditure aceountl Charity statement of finarrial activities (incorporating the income and expenditure account) 13 con￿ld818d balance sheet 14 Charity balance sheet 15 Conslidaled and charity cash flow ststements 16 Notes to the accounts 17 ASCENTIS (COMPANY LIMITED BY GUARANTEE) CHARifi REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 JULY 2023 Reglstered charity name Charlty reg5stration number 1129180 Company registration numbeT 06799564 Principal office Ascenits House 3 Mannin Way Caton Road Lancaster Lancashire LA1 3SW The Trustees S ca￿1$￿e P C Wilkinson A Bolton R Oavies P Rowe A Rushl J Robinson W Robinson M McTague Chlef executlve offlcer P C wilkir￿On Secretary F Lugiano Auditor MHA McK)re and Smalley Chartered Accountsnls & Ststutory Au¢Jrtor Priory Ck)se St Mary's Gale Lancasier Lancashire LA1 1XB ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT FOR THE YEAR ENDED 31 JULY 2023 The trustees have KdeasLJre in presenling their repcKt and the financial stalernents of the group and charity for the year ended 31 July 2023. This report indudes the requirements of a directors. report as required by company law. The financial statemènts comply wilh the Ch8ri1ies Act 2011. the Companies Act 2CKJ6, the Memorandum and Articles of Associalion. and Accounting and Reporb"ng by Charities.. Slaiemenl of Recommended Practice applicable lo charities preparing their accounts in acc(¥(Jance the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). Reference and administratlve detslls Reference and administrative details are shown on page 2 of these financial ststements. The trustees The Iruslees who seNed the charity during the penod were as follows.. S Carlisle P C Wilkinson A Bolton R Davies P Rowe A Rushton J Robinson W Robinson M McT8gue Structurn. 90¥8mance and management Ascentis is a charitable company linNt8d by guarantee (￿799564) incorporated on 23 January 2009 and registered with the charity commission {11291801 on 19 April 2009. The ￿rnpary was established under a memorandum of association whth defines the objects and powers of the charitable company and is governed under ils articles of associatv)n. In the event of the company being wound up. the merrbers are required lo contn.bute an amount not exceeding £1. RecNilment and appointment ofnew trustees The Board of Trustees appoints new trustees up to a minimum of 5 individuals. The Search and Governance Committee recommend5 candidates wth appropriate skims for consKleration to the Board. The trustee5 delerrThne the remuneration of key fftanagerr￿nt personnel. InLlucliorJ and tTrining of new Irustees New trustees meet the Group Chief ExeoJkn"¥e Officer (CEO) and Company Seuetary 8nd afe introduced to the staff. The seNi¢es provided by Ascenlis, and its obie¢tives and strategy are discussed in detsil. The new trustee is issued with an information pack conlaining the folloTrMng- Responsibilities of Charity trustees Memorandum and Articles of A$wAa￿n Annual report and acC(￿nts inutes of the last board meetrng Year to dale financial inf0mat￿n Schedule of 8oard meelings Biographies of other trustees User gui(Je and activation acts)unt fLY On8oard ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPORT (CONTINUED FOR THE YEAR ENDED 31 JULY 2023 Organisational slruclure Every trustee must swJn a Dedaration of Wllingne55 to ad as a Trustee of the Chariv before they are eluible to vole al any meeting of the InJstees. The trustees musl hold at least 2 meelings a year and they are responsible for making strategic decisions. AJI trustees who have signed the Trustee ofthe Charity. dedaralion have one vote on each issue at these meetings. Each issue may be determined by a simple majority of votes cast, wlh the Ch8irman haMng a second or casting a vole rf necessary. The day to day running of the charity is delegated lo the Group CEO. who meets fornally with his executNe team on a regular basis. Relatedpaths All related party Iransaclions entered into in the year are di%closed in the notes to the accounts. There are no significant relationships wth any other chartties or organisations, except io trs ¢)wn subsidiaries. Aims. objectives and activities. The objects of Ascenlis are to prorr¥Jte and advance educab.on 8n(J training of young persons and adults. To 8¢hieve these objects. we airn to mainlain and improve our portfolio of educattonal qualif￿atIonS and make them accessible lo a wder range of dient groups. In this way. we can help young people and adults develop knowledge and acquire new skills and have this form81ty recognFsed in Ihe fonn of nalionally or internationally recognised qualifications. We also support pupils in primary and secondary schools Ihrough our dyslexi8. dy%alculia and mental health and well-being inieNention softwa￿. We review our aims an(J 8ctivith.es each year. This ￿￿eW I￿kS at.. what has been achieved, the ¢xJtcomes of our work in the previous 12 months, and Ihe success of our activities in delivering ben8fits to those we were sel up lo help. This review also helps lo ensure Ihat our aims and activities remain focused on our ststed objectlV8s and purpose. We have ￿ferred to the guidance coniained in the Charity Comrnission's general guidanc8 on public benefit when reviewing our aims and in planning our future activities. In partiCu￿r. w8, th8 trustees. have conside￿d how the planned ath"wties ￿11 contribute to the aims Ihat we have set. l our charitable activities focus on the pr￿OtiOn and advancementof educalion aTrJ training and are undertaken to further our charitaNe purposes for the publi¢ benefit. Thg main objectives and activities for the year were.. lo rati￿alISe the qualification product portfolio so as to focus on our argas of strengths and to make those products acceSsi￿e to a whler client group across the UK and overseas., to expand our éyslexia. dys¢al¢ulia and menlal health So￿are provision to schools auoss UK and overseas. in particular. Ihe UAE.. lo provide the optimal level of support to our ¢lients'. to strengthen our staffing and inlraslructure with appropriate investmenL lo mainlain strong financial health.. to keep our staff safe and well and lo protect the charity as far as possible against the impact ol the significant increase in inflatson. Ascenlis ensures th81 every opportunity is tsken lo promote its work by maintaining a website. hosling events in b¢alions awss the UK and overseas, ar￿ diverse adver1ising. such as through &-mail campaigns. The Trust88s are pleased th the tharivs progress against Ihe (￿lect￿l&S and in particular, re￿gnISe the very asonable financial performance despite the significant impact of the cost*of-living crisis. Group income increased over the previous year and Ihe operating deficrt was broatlty in line wth the taryel. ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES, ANNUAL REPC￿T {CONTINUEDI FOR THE YEAR ENOEO 31 JULY 2023 STRATEGIC REPORT Achievements and perfomian¢e This is Ascenb"s' fcwrteenth year of operalton since the transfer ol activilies and assets from the C*en College of the North West on 1 August 2009. We fvrther reviewed the pro¢Juct p￿￿0110 and ￿¥1￿ il to Provide a dear I￿u$ on our a￿a$ of strength during Ihe year. As part of this, we expanded the markets lor the key Ascenlis qualification products and our dyslexia, éyscalculia and mental health inlervenlion So￿are seNices across the UK and overseas. In order to improve effectiveness. we invested appropriately in our staffing base and IT infraslructure. This included a systematic review and revision of remuneration across the Group to enhan￿ stsff recJuitment and relention. This sound staffing and IT infrastructure have enabled us to delwer our ststed obiectsves effectNely. All of these ath.ons increase(I the Organisa￿Th.$ abilrty to continue to prosper wthin an exceptionally ¢hallenging business envirC￿Ment for the (*arty and e(lucat￿On sectors. Flnan¢lal revlow Reserves policy We have examined the requirements for resefves in ￿gh1 of the main risks lo the organisation and have established a policy whereby the free reserve5 {nol including those in use funding the tangible fixed assets held by the tharity or those designated for other purposes) should be betsveen 4 and 9 months of normal charitable expenditure. The budgeted charitable expenditu￿ in 202312024 is approximately £6.7m and therefore, the t8rgel resetves are befv4een £2.2m and £Sm. The reserves fun¢b"on as an bmtK)rtant potential financial buffer during this period againsl turbulence in Ihe planniThJ 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. Totsl consolidaled funds held at 31 July 2023 were £6.1 m. After allowing for funds that can only be realised on disposal ol a fixed asset$1£1.9ml and the designated Teserve1£212k), remaining Irae reserves are £4m, which remains in line wth the above tK>licy. The charity has no restricted lunds. We continue to mainlain a designated fund to meet the costs of any potential firture uninsured liabilities that may arise from the TUPE ITransfer of Undertakings ProtectKJn of Employment) regulations. following the transfer of the activities of Ihe former Open College of the North West into Ascentis in 2009. The balance designated represents the maximum eslimated p￿ential lobilty. which will be recalcyJlated annually 8nd should reduce over time. Principal funding sources The rxincipal source of in¢ome is from the registration ￿r￿fiCation of candidates on qtjalifications developed and accredited by the charrty and the sale of associaled leaming materials and also dyslexia. dyscalculia and mental health intervenlion So￿are support service. The expenditure of Ihe charity on qualification and intervention soliware development. moderation and quality conlrol and centre recognition all ensure Ihat the qualifications and servi￿5 offered wowde the required benefrts to those accessing them. Plans for futur• pèriods. Th8 period sinc8 the inception of th8 charity has been extremety su¢¢essful with significant overall growth, as we havè rèached out to a broader dient base. Changes in Govemmenl F)oli¢y in ￿cent years relating lo the funding available for educatK>nal qualrfications represent a signifi¢anl tha1￿nge for the ¢harity. but as a result of an effective plan skilfully implemented by committed slaff. the charty achieved further growth in tumover in the year despite the signif￿ant impact of the cost of living crisis and restricted the operabng def￿1 to a broadly planned level despite signfficant in-year investment. ASCENTIS (COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 The Govemment policy chan9es will continue lo represent a challenge lo the charity and in the medium temi, the target will be to maintain stability and continue to support our dients while achieving fijrther steady growth. The impact of negative funding poiicy will be mrtNJated by further gro%th of qualfficalions not in scope of funding policy reviews. growth of the subsidiary IDLS and the start-up of a seLx)nd subsidiary. the Virtual Academy Ltd. as an online training organisation. The charity has approved a realtslic bLrt challenging set of targets in its strategic plan. This commits the charity lo an aspiration for achieving steady growth and to improwng all aspects of its activity oveT the S-year period to 2028. Progress towards this vision will te achieved by developing and maintaining a high-qualily portfolio of externally regulated qualifications and assouated ￿arnIng materials. expanding the client base across the UK and overseas arhd providing schools. colleges. and empknyers with Ihe optimum level of CLtstomer support. Simultsneously. the Dyslexia, Dyscalculia and hAental Health Intervention Supwt Serv￿ delivered through the wholly owned subsidiary company IDLS Lld, wll be expanded to all regions of the UK and lo specific overseas markets and a naw online training organisatK)n wll commence operathjns. Where appropriate. As￿n11S will seek to athieve growth through the acquisithjn of smaller companies where SLKh acquisib.ons are judged to represenl a sound investment for the charity. Any surpluses generaled will be reinvesled in slaffing and the organisation's infrastructure so that the level of resourcing is always sufficienl to deliver a gOC￿ service. The corwjrate objectives for Ihe 2023-24 year are as folkxs.. Financial Health.. Achievement of signrficanl growth in ino)me and a break-even posrtion. before any fvture-proofing investments. 2. Product Development". Development and maintenance of 8 qU81ffications portfdio and supporting leaming materials that are 81igned with Govemment policy, focusell on our proven strengths, and that rneet the needs of local. regional. rtat￿n￿. and intem8ts0nal stakeholders. 3. Intervention Softsvare support seNice: Expansion of dyslexka, dys¢akulia, and wellbeing products across the UK and overseas. deltvered through Ihe subsidiary. IDLS Ltd. 4. Trainir¥J-. Provision of online training ddNereO thrwgh the subsidkory Virtual Academy Ltd. 5.. Govemance.. c(*n￿lan￿ with C￿panIeS House and Charity Commission requirements. 6. Regulatory Compliance and Quality Assurance.. Maintenance of regulatory approval by Ofqual, i)JalificatKJn Wales, CCEA and the Quality Assurance Agency for Higher Education. 7. People and Cullvre.. Effective Human Resources structure suppcxled by rwous performance management and tsrgeted staff development. 8. Systems and Physrcal Infrastructu￿.. Effe¢lNe Maintenan￿ and development of systems, IT and accommodation. Prln¢lpal rl$ks and uncertainties Risk managemenr The major risks to which the charity is exposed are ￿vieWed and sel out in the Business Continuity Plan, together ilh the systems established lo mib.gate those risks_ Currently, the most significant medium-term risk is considere(S to be the impact of changing governrnent policy in relation lo the funding of qualifications. An additional new risk relates lo the recruitmenl and retention of staff, wth the charity having to compete with larger companies offering increased salaries and the optwjn for home-working. Currently, all Fisks are being successfully managed. ASCENTIS {COMPANY LIMITED BY GUARANTEE) TRUSTEES. ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 Responsibilities of the trustees The trustees Iwho a￿ also the directors of Ascentis for the purposes of company lawl are responsible for preparing the Trustees Annual Report and the finanual ststements in accordance with applicable law and regulations. Company law requires the trustees lo wepare financi81 stslements for each fmncial year. Under that 18w the trustees have elected lo prepare the financial statements Tn accordance wth United Kingdom Generally Accepted Ac¢ounb'ng Practice Iunited lfj"ngdom Accounting Standards and applicable lawl. Under Company law the trustees musl not approve the fin8noal slalements unless Ihey are satisfied that Ihey give a true and lair view of the state of affairs of the tharilable company and the group ar￿ the and expenditure of the charitable Company for that period. In preparing these financial stat8ments. the tnJst8es are required to.. selecl suitable accounting Edic￿$ and then app￿ them consislenlly observe the methods and principth in the Charities Slalement of Recommended Practte {SORPI make judgements and a￿UTrting ests"rnates that are ￿asonab￿ and prudent state whether applicable UK Acttjunting Standards have been foltowed. su*'ect to any material departures ¢Jis¢losed anrj explamied in the finanual statements prepare Ihe financial statements on Ihe going con￿rn basis unless it is inappropriate lo presume Ihat the group will continue in operation The trustees are responsible for keeping adequale accounting records that are sufficient lo show and explain the charitable company's and gr(yJp's transactions and disdose with reasonable accuracy al any lime the financial positK)n of the group and enable them lo ensure that the financial ststemenls comply Trmth the Compani8s Act 2006. They ar8 also responsib￿ 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 r&apwnted under section 487{21 of the Companies Act 2006. Each of the persons ￿ is a trustee ai the date of approval of this rewrt confinns 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 sleps Ihal they oughl to have tsken as a trustee to make thoms8￿e$ aware of any relevant auéit inforTnation and to establish Ihal the group's auditor is aware of thal information. Approval By approving the truslees reFth Ihe twstees are also approving the slralegic report in their capacity as company directors. Signed on behalf of the truslees PLI Mr P C Wilkinson Tru$te• 0711212023 ASCENTIS (COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ASCENTIS FOR THE YEAR ENDED 31 JULY 2023 Opinion We have audited the financial statements of Ascentis (the 'parent charitable company'l and its subsidiaries Ilhe 'group'} for Ihe year ended 31 Juty 2023 which comprise Consolidated Statement of Finanaal Acknvity, Charity Statement of Financial Activity. Consolbdaled Balance Sheet, Charity 8alance Sheet. Consolidated and Charity Cash Flow Slalements and notes to the finanaal slalemenls, including a summary of significant accounting policies. The financial rewting framework Ihat has been applied in their Q￿paratIOn is applicable law antj United Kingdom Accounting Standards, including Financial Reporbng Stsndard 102 The Financial Repo￿ng Standard applicable in the UK and Republ¢c of I￿lantY {Uniled Kingdom Generally Accepted Accounting Praclicel. This report is made solely to the charitsble company's trustees. as a body. in accordance with P8rt 4 of the Charities (Accounts and Repjrtsl Regulations 2008. Our audit work has been undertaken so that we mi9hl stale to the charity's Iruslees those rnatters we are required lo state to Ihem in an auditor's report and for no other purwse. To the fullest extent pemitted by law. we do not awpt or assume responsibility to anyone other than the Charitable company and the charitable company's tnjstees as a body. for our audit work. for this report, or for the opinions we have formed In our opinion the financial ststements.. give a twe and fair view ol the stale of the group's and pa￿nt charitsble ￿MpanY'S affairs as at 31 July 2023, and of the group's incoming resources and applicati￿ of resources. induding its incoffle and expen¢Jilure, lor the year then ended., have been properly prepared in accordance with United Kingdom Generalty Accepted Accounting Practice. and have been prepared in accordance vAth the reqU1￿MentS of the Companies Act 2006. 8asis for opinion We conducted our audtt in accordan¢e with Intemational Standards on Authting IUKI (ISAS IUKII and applicable law. Our responsibilities under those standards a￿ fijrther desuibed in the Auditorfs responsibilitsès for the audit of the financial statements se¢tion of our report. We are independent of the charitsble company in accordan with the ethical requirements that are relevant to cmjr audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have I￿￿lIed our other ethul responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficAenl and appropriate to provide a basis for our ¢JpinhJn. Conclusions relating to golng ¢on¢em In auditing Ihe finan￿81 statements. we have condu¢Jed that the trustees, use of the golng concem basis of accounting in the preparation of the finanual siatements is appropriate. Based on the work we have perforned. we have rnt identsfieon$ for liabilities Nel a*ets 6,051,638 6.335,060 Funds Unrestricted fijnds 17 6.051.638 6.335.060 Tt)tsl funds 6.051.638 6.335,0 These accounts were approved by the members of the committee and auth￿Se￿ for issue on the 0711 W2Q23........... and are signed on Iheir behalf by= Mr P C Wilkin50n Trustee Cornpany Registration Nurnber. 06799564 The notes on pages 17 to 34 f(Th part of these finanoal statements. -14- ASCENTIS (COMPANY UMITED BY GUARANTEE) CHARITY 8ALANCE SHEET AS AT 31 JULY 2023 2023 2022 Fixed assets Tangible assets tawble assets 11 12 1.321,105 461,694 1.695.370 4.050 1,782,799 1.699.420 Current assets Oebtors In￿StmentS Cash at bank and in hand 13 14 967.183 6(KJ.CQ2 4,220.333 4.792.955 S.187.S18 5.392.959 Crèditor& amounts falling (kn wlhin one year 15 {658,S541 (649.1721 Net current assets 4.528.964 4.743.787 Total assets less currènl liabiliti¢s 6.311,763 6.443.207 Provisions for liabiliti•s Net assets 311.763 6.443.207 Fund Unrestricted fvjnds 17 6,311,763 6,443,207 Total funds 6,311,763 6.443,207 These a¢￿UnIS were approved by the members of the u)mmittee and 8Uthorised for issue on 0711212023 . and are signed on thew behalf by". Mr P C Wilkinson Trustee Company Registration Number. 06799564 The notes on pages 17 to 34 fom part of these financi81 Stsiements. -15- ASCENTIS (COMPANY LIMITED BY GUARANTEE) CONSOLIDATED AND CHARITY CASH FLOW STATEMENTS FOR THE YEAR END 31 JULY 2023 Group 2023 Totsl Gr￿p 2022 Tot Charity 2023 Total Charity 2022 Total Cash lusedvgenerated In opetsting activities 177.6201 426.992 1202.16n 584.611 Cashflows from inve*ing activities kn￿Strnent income Purchase of tangl￿e ffixed assets Purchase of inlangible fixed assets Receipts from sale of assets 40.119 2,747 40.119 2,747 195.3241 1213,5401 (95,324) 1213,5401 {446.2471 {4.0501 {315.2501 14,0501 51.( 51.01 Cath used In In￿StIng aCtI￿lIeS {501.452) 1163.843) {370.4551 1163.843) ID•creas•llincr•as• in cash and cash eguivalènts in the yéar {579,0721 263.149 1572.622) 420.768 Cash and cash equi*lents troughi knyard 4842.820 4.579.671 4,792,955 4.372.187 Cash and cash equivalents carried forward 4.263,748 4.842,820 4,220.333 4,792.955 Rècon¢iliatlon of net movement In fvnds to net cashflw from operatAng activi￿¢$ Net M0￿ment in funds In*slmenl in¢ome wel￿￿ Depreciaiiiy) and amt)rtisation Iln¢reaseyde¢rÈasè in debtors IDecreaseVlncrease in credilow5 Loss on dispos81 of fixe(l assets (283,422} 242.174 140.119) 12,747) 324.47S 277.400 169.211) 67,(X)7 19.343) {155.278) (1.W) {131.4441 140,1191 291S95 1335,5811 9,382 437,414 12.7471 277.400 20.5C)2 {146.3941 11.564 Net cath lusedvgenerated in ¢porating activities 177.6201 426,9>2 {202.16n 584,611 Componontsofcath and cash equlvalents Cash at bank and in hand 4,263.748 4.842.820 4,220,333 4.792,955 4,263.74B 4.842.820 4,220.333 4.792,955 The notes on pages 17 to 34 fomi part of these finanoal statements. -16- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 A¢¢ounting policies Legal l¢mi Ascentis is a registered Charity and a limited (xjmpany. limited by guarantee, as defined by the Companies Act 2006. incorporated in England and Wales. In the event of the tharity being w(xJnd up. the liability in respect of the guaranleo is limited lo £1 per member of the charity. The registered office of the charity. the nalure of its operat*)ns its prinapal actNities are all detailed in the charity administrative details of these financial statements. Basis of preparation Ascentis meets the definilion of a public benefrt entity under FRS102. The financial staternenls have been prepared in accordance with Accounts"ng and Reporting by Charits"es.' Statement of Recommendecl Practice applicable lo charities preparing their accounts in accordance wth the Financial Report"ng Standard applicable in the UK and Republic of Ireland {FRS102F {Charities SORP IFRS 10211. the FinancAal Reporting Standard applicable in tt)e UK and Rew￿le of Ireland {FRS 1021. the Ch&itses AL# 2011 and the Companies Act 2006. The finantial statements ar8 prepared in sterling. which is the lunC￿nal currency of the charity. Monetsry amounts are rountjed to the nearest £. The financial statements have been prepa￿ on a going concem basis under Ihe htstorical cost convention. The particular accounting poliaes adopted by the Irustees are described bebw. These policies have been consistently opplied to all years presented unless otherwise stated. The consolidated accounts of Ihe group incorporate Ihe accounts of Ascentis I"Ihe Charity") and ils wholly owned subsidiaries Intemational Dyslexia Leaming Solutions Limited and Virtual Academy Ltd. The results of the subsKliaries are consolidated on a line by line l)8Sts. Preparation of thè accounts on a going concem basls Th8 trustees assess whether Ihe use of going concem is approwiata i.e whether there are any material uncertainties related to events or conditions thal may cast significant doubt on the ability of the charity to continue as a going concern. The tnjstees 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 conduded that the charity has adequate resources lo continue in operational existence for Ihe f0reseeat￿e future and there are no material uncertainties about Ihe charity's ability to continue 8$ a going concern, thus they conts.nue to adopt the goiro concem basis of accountsng In preparing the finanoal slalemenls. Income Regislratron and certifKation fees a￿ recognised over the peri(MJ to which they rek4te. Where course registration income spans the financial year end. the Charity has a policy of deferring 213rds of such income to the point of certrfication, where the Charity inojrs the costs of m(x1eration. IDLS Learning income ￿presents amunts 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 custorner on the basis that there is no recourse of such income and the risks and rewards have Iransferred lo the buyer. VAL income represents arTh)unts receivable for swwces net of VAT and Irade disc4xJnts. Tumover from the sale of training courses is recognised on the date of course delivery to the customer cffi the basis th81 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 actNrties in the period in which il becomes receivable. -17- ASCENTIS {COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 Accounllng policies {continued) Government grants receivable represent income under the Kicksiart Scheme which provides funding lo create new jobs for 16 to 24 year olds on Universal Credil who are at risk of k)ng temi unempjoymenl. Kickstart granls are recognised by the ￿mpanY for the period claims are made. Other grants receivable ￿p￿sent income from trading grants arHJ other grants. A grant that specifies performanco conditions is recognised in income when the perfomian¢e condrtions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or ￿ceivable. A grant received before the recognib'on criteria are satisfied is recognised as a liabiltty- Expenditure All expenditure is ae£ounted for on an acLruals basis in the expense categories required by the SORP. Expenditu Is re¢ognised where there is a legal or constnjctive obligats.on to m8ke payments to third partes, tl is probable that the settlement will be required and the amount of the obligation can be me8sured reliably_ Costs are further allocated between the aclivits.es undertaken on a basis consistent wtth Ihe use of the resources. Expenditure includes iirecoverable VAT. Charitable expendthre includes costs incurred in th8 delivery of the tharrties activities antj services. 11 includes both direct costs, inclu(ling stsff costs. that are incurred in the delivery of the actwities and seNices and indirect costs which are required to support the tyelivery of the charilable obJ"ecls. Costs of raising funds irKlude those costs in rdation to the charity's operali)ns %thich are used to generate further income whith is integral to the Charity in meeting its charitable o￿"eCt￿es. Where support costs cannot be direclty attribute(1 to parb"cJJlar headings they have been allocated to Cosl of raising lunt1s and expenditure on tharilable activities ￿ a basis C￿n￿stent with use of the rescKJrces. Fixed assets l fixed assets are initially recorded at cost. Depwation is F￿vided at rates calculated to write off the cost of fixed assets, less their ￿S￿1val value. over their expecled useful lives ￿ the followwvJ bases". Office equipment Fixtures and fittings hAotor vehicles Propety improvements 3 to 5 years 5 to 7 years 3 years 5t0 15years Amortlsatlon Amortlsalion is calculated so as lo wrile off the ￿st of the a5sel. less its estimate residual value, over the useful economic life of that asset once brought into use as follows.. Web511e costs Development costs Intellectual property 3 years 3 to 5 years 3 years Investments Investments are recognised initialty at fair value which is nomially the transaction price excluding transaction costs. Investments are subsequently stated at fair value if the shares are publidy traded or their fair value can otherwise be measur8d r81iatAy. Other inv8stm8nts, suth as the invesiment in the subsidiary. are measu￿(1 at cost 18SS impaimient. The SOFA incjuded the net gains and losses arising on rev8luatbons and dispKJS81s throughout the year. -18- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 Accounting policies {contintsedl Cash and ¢a$h equlval¢nt$ Cash balances represent cash in hand and deposits hekl at banks and building societies. Debtors and Gr¢dit¢r$ within one y¢ar Debtors and creditors with stated interest rate aThJ recervable and payable vAlhin one year are rewrded al transaction pr￿. Amy losses arising from wnpairment are recognised in expenditure. Fund accounting Unrestricted funds General funds are available for use al the discrelion of the Trustees in furtherance of the general objectives of the charity. Restricted funds Restricted funds arise Whe￿ there is a ¢J)nC￿-1mpoSed resInCti￿ on the use of the fvnds. or the funds have arisen in response lo an appeal for a speu'fied purpose. The charity currently has no restricted funds. Operating lease agreements Rentsls applicable lo operating lease5 where substsntially all of the beneffts and risks of ownership remain with the lessor are Charged against profits on a straight-line basts over the period of the *8se. Penslons Ascentis operates a defined Contn"bJtiC￿ penshjn scheme for employees of the group. The assels of the scheme are held separately from Ihose of the charity. The annual ContribLrt￿jnS payable are charged to the statement of financial activities. Redundancy costs Redundancy cosls are expensed when the liability payment of such costs ss in(￿rred. Taxation HM Revenue & Customs considers AS￿ntiS to be a charity ant1 therefore they are entitled to exernption from tax afforded by Secbons 478489 of the CwalKJn Taxes kt 2010 to the exlent that income is applied exclusively for charitable purposes. Foreign currencies Assets and liabilities in foreign currencies are translated into slerling at the rates of exchange ruling at the balance sheet dale. Transa¢tK)ns in loreign currencies are translated into sterting al Ihe rale of exchange ruling 81 the date of transact￿n. Exchange differew are taken into account in arriving 8t Ihe oper81ing profil. -1 ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 Ac¢ounting poli¢ies {continuedl Financial in$trument$ The Charity has elected to apply the rKoVis￿nS of secti￿ 11 'Bagc Financial Instruments. and Section 12 '0ther Financial Instruments Issues. of FRS 102 to all of its f￿an￿31 inslrumenls. Finncial instruments are rec(￿nised in the chari￿s bala￿ sheet when the Charity becomes party to contractual provisions of the inslnjment. Financial assets and liabilities are offsel. with the net amounts presenled in the financial statements, when Ihere is a legally enforceable right to offset the rec(yJnised amounts and there is an intenticm lo setue on a nel basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets. vthich indude debtors and cash and bank balances, are initially measured at transaction price including transaction ￿tS and are subsequently carrTred at amortised cosl using the effective interest method unless the arrangemenl Constitutes a financing transaction. where ihe transaclion is rneasured at the present value of the fLrture receipts diswunted at a market rate of interest. Finanoal assets dassrfied as receivable within one year are not am0￿Sed. Trade debtors and other receivables that have r￿ed or determinable payments Ihat are Th)t quoted in an a¢live market are classified as 'loans and receivables.. Loans and receivables are measured al amortised cost using Ihe effective interest method, less any impairment. Irnpainnent of financial assets Financ￿1 assets are assessed for indicaiots of impaiment at each reporting end ¢Jate. Financial assets are impaired vthere there is objèctivè evidence that. as a resull ofonè or more events that occurre after the initial recognrtion of the finanual asset, the esbmated fvIU￿ cash flows havè been affected. If an asset is impaired, the impaiment loss is the drfferencè be￿en the carying amount and the presènt value of the estimate cash flows discounted 8t the asset's original effective interesi rate_ The impain)ent loss is recognised in the statement of Comprehensive income. If Ihere is a decrease in the inwaimient loss arising from an evenl occurring after the impaim7ent was recognised, the impairment is reversei1. The reversal is such that the current Car￿ng amount does notexceed what the carying amount would have been. had the impaiment not pre¥￿slY been reC￿gnIsed. The impairment revensal is recognised in the slatement of cornprehenstve income. De-Trcogni1￿n offinanthal assets Financial assets are derecognised only when the contractual rrghts lo the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substanlialty all the risks and ￿WardS of ownership to another entity, or if soffle signific4nt risks and ￿WardS of ownership are Tetaine¢J bui control of the asset has transferred to another paty that is able to sell the assei in its eftlirety 10 8n unrelated third paty. classif￿atiOn of financ￿1 l￿blIrtieS Financial Ikobilities are classified according to the substance of the ￿ntraCtual a￿angem￿nIS entered into. ASCENTIS (COMPANY LIMITED BY GUARANTEE) MOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 Accounting Wi¢ies {continued) Bas￿ financ￿1 liabilrfies Basic financial liatMlit*s. including creditors. a￿ inilialty recognised at transaction pncE Un￿$$ the arr8ngemenl constitutes a financing transaction.. Whe￿ the4ebt instrument is measured at.the pre5entvalue ofthe future r.eceipts _ discounted at a market rale of interest. Financial liabilities classified as payable wiihin one year are not arno￿"Sed_ Oebt inslruments are subsequently carried at amorbsed cost. using the effeclive interest rale method. Trade creditors are obligations to pay for gcods or services Ihal h8ve been acquired in the ordinary course of business from sup￿lerS. Aft￿Un￿ payable are dassrfied as curren( liabilities if payment is due within one year or less. If not. they a￿ presented as non24 242,700 224,940 1242.700) 1224.9401 207.225 242.700 207.225 242.700 16 Cofflmitments under operating leases Gr¢up 2023 Land and Buildings 2023 Other item$ 2022 Land 8fKI 8uildirvJs 2022 Other items Within 1 year Within 2 10 5 year5 After mcwe 5 yea 33.711 5.793 262.500 1.312.XMJ 1.968,7 46.413 24.646 1.312,9JO 1.706,250 1281,250 39.501 3,543,750 71.059 Charity only 2023 Other itèms 2022 Land and Buildirgs 2022 Other items Land and Buildings Within 1 year Within 2 to 5 yea After more than 5 years 262.500 1,312.500 1.706.250 33.711 262,￿ 1.312,￿ 1.968,79) 24.646 3.281.250 39,504 3.543,750 69.299 -31- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY 2023 17 Llnre$trithd income funds: current year At1 Augu 2022 At31 July 2023 Trandersl Income Expenditure revalualions Group Designated Funds Geneol Funds 184,846 6. 150,214 27,493 212,339 127.4931 5,839,299 5.884.016 {6.167.4381 Unrè*ricted lunds 335,060 5.884,016 16.167,438) 6.051.638 Charity Designated FU￿lS General Funds 184.846 6.258.361 27.493 212.339 127.4931 6,099,424 4.774,432 {4.905.8761 Unrtstrict•d funds 443,207 4774.432 (4.905,8761 6.311,763 The Trustees have created a deswnaled lund to meet the cost of any wtentsal future uninsured liabilities that may arise from the TUPE (Transfer of Undertakings Protection of Employment) regulations, following the transferofthe aclivities ofthe former Open College ofthe North Wesl into Ascentis in 2009. The balance of £212,339 represents the maximum estimated potential liability. which will be recalculaled annually, and the amounl of the designated fund adiusled accordingly. Unrestricted In￿Me fvnds: prior y￿r At31 July 2022 August 2021 Transfersl In¢om• Ex￿ndItuTe revaluations Group Designated Funds General Funds 122.470 5.970.416 62.376 184,846 162.3761 6,150,214 5.603.866 15.361.692) ljnrestricted funds 6.092.886 5,603,866 15.361,692} 6.335,060 Charlty Design81ed FuThJs Gewdl Funds 122.470 5.883.323 62.376 184.846 162.3761 6,258,361 4.617,￿ 14,18A),5491 Unre*rlct•d funds 6.005,793 4,617.963 14180.5491 6,443,207 -32- ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 19 Analysis ol net assets between funds.. current year Group Intangible & tangible Net current Long terni fixéd asfets assets liabilities Totsl Unre*leied Income funds Designated FurKIs General Funds 212.339 3,922.783 272.339 5,839.299 1.916,516 Tolal fvnd$ 1.914516 4.135.122 6,051,638 Charity Intangible & tangible N¢t current Long temi fixed as%èts ass•ts liabilities Tolal Unrestricted income fvnds Designated Fund5 General Funds 212.339 4.316.625 212,339 6,099,424 1,782.799 Totsl ftjnds 1.782.799 4.528,964 6,311.763 20 Analysis of net assets between funds: prior year Group Intsngible & tan9ibl• Net current Long temi fix¢d asfets asfets liabilities Total Unrestrlcted Income funds Designated Funds General Funds 184.846 4.4Y).794 184.846 6,150.214 1.699.420 Total funds 1.699.420 4,635,640 6,335,060 Charity Intangibl• & tangibl• Nèt currènt Long tèrni fixed as%èts Ilablllllg$ Total Unrearicted income fund Designated Funds General Furbds 184,846 1.699.420 4.558,941 184.846 6,258,361 Total fvnds 1.699,420 4.743.787 6,443.207 -3& ASCENTIS (COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2023 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 gf company law in both the ojrrent and prior period. No Iruslees were remunerated for their rc4e as tnjstees of the charity. however one Truslee received employment benefits totalling £143.332 12022.. £129.3631. including pensbon contributions of £17.757 {2022'. £16.0391. for theii role as CEO. During Ihe year. 2 tnjstees were reimbjrsed £382 12022: 3 trustees reimbursed £2731 for expenses incurred. Key management personnel of the company receNed total remunerab.on of £377.35512022.. £329.2991 for the financial period. There are no further disclosable related party transaCtIL￿ for the charity. 22 Company limited by guarantee Every member guarantees, in the event of the chantable company beirrfJ woun¢J up while he, sh8 or It remains a member or within 12 Months of he, she ￿ it Ceasing to be a member, to Contribute £1 towards the Cost of dissolution and the liatH"lib"es incur￿￿ by the Charitable company while the Contributor was a member.