Charity Registrat40n No. 1130461 Company Reglstratlon No. 06774578 (England and Walgsl CRESCENT PURCHASING LIMITED ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021 Haines Watts Chartered Accountants Bridg& Housè 157 Ashley Road Hale Altrlncham Cheshire WA14 2UT CRESCENT PURCHASING LIMITED CONTENSE Page Legal and administrative Snlormalion Truslees, report Independent auditor's report 10 Consolidated statement of financtal 8Ctivities Consolidaied balance sheet 12-13 Consolidated statement of cash flows 14 Not85 to the financial statements 15-34 CRESCENT PURCHASING LIMITED LEGAL AND ADMINISTRATIVE INFORMATION CONSTITUTION Crescent Purehasing Ltd ICPLI is a company limited by guarantee and a retsIste￿d charlly govemed by its rnemorandum and articles of association. CPL trades as Crescent Purchasing Consortium ICPCI. Th6 règisterÉd charity number is 1130461 and the company numbèr 15 06774578. DIRECTORS AND TRUSTEES The directors of the chgritab18 conwany f'the oharity'l are its trustees for the purpos& of ¢harfly18w and throughout Ihls report are collectively referred lo as the Irus188S. The Injstees serving durlng the year wero as fdlows., Nomlnaled Chair D N Pulléin, Vice Prinelpal- Finance And Resources, Leeds Co118ge of Building Trustèès and Directors J C Bèntlèy, Executive Director of Financ8 and Estst85, Hopwood Hall College F Benslhem, Finance and Procureinenl officer. Cdlege of W8sI Anglla Ifrom 11111120) P Brewer, Manager Direotor, CPL Iresigned on 311071211 N Cassidy. Procurement Managor, Cambridge Regional Collage (Chair of Purchasing Advisory Group) A Comyn, Deputy Chlel Execulive & Chief Financial Oflieér, Nottinuh8m College J Howard, Director ol Estales, Wakefield Ccjllege L Jenklns, Deputy Princlp81 Flnance and R&sources, North Kent Co118ga P Kane, Deputy Head of Estate. 861fasl Metropolitan Colleg8 Ico-opled with voting tights) R Kllcoyne. Head af Prarur8m8tit, Laèds City College (resigned 311121201 D Lowe. Managing Director. CPL lfrorn 011041211 D N Pulleln, Wica Principal- Finance and Resources, Le8d8 Collgge of Building Reglstered Office Procur8mtsnt House. Unit 23-25 Leslie Hough Way. Salford M6 fj￿. Audltors Haines Watts. Bridge House, Ashley Road, Ha18, Atrtncham WA14 2UT. Banker8 Natwest. Leeds Clty Oflice. 8 Park Row, Leeds LS1 5HD. W8bsit8 www.thec c.ac.uk https'.Ilcpl.group CRESCENT PURCHASING LIMITED TRUSTEES. REPORT {INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 JUL Y 2021 The Twstees presenlthairr¢portlogatherwlth th& consolldaled financial slalements forlhe charityand its subsidiaries forlhe year ended 31 July 2021 which aro also prepa¥ed lo meet th& requirements fora directors, reportfor Companies House purpos¢s. The legal and administrative informauon sel OLtt on page 1 forms part of thls report. The financial stat8menls comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charltles-. Statement of Rècomm8nded Practic8 applicable 111 th8 UK and Republic of Ireland IFRS 102) l&ffecbv8 1 January 20151. slon and M16sion The vislon of the charity Is to be the pmour¢monl S8TvS¢88 partner of cholce for the educalon sector and through its work, help the sector lo enhance leaching and leaming. Thg mission of th8 charity is lo provide outstanding procurenEnt services lo membois and clionls. Report of the TrustÈes Crescent Purchaslng Llmlt@d ICPLI was 8st3blished in 199g as Crescent Furth8T Education Limited by the Universlly of Salford to facililatg ttollaboralivo purtrha8ing in the Further F.ducation sector. CPL was established as a charity in November 20Q9 following 8 buy out from th6 Univèrslty of Salford, to 8nable the Fufiher Education sector lo operate and devèlop CPL and to promote profegslonal purchasing. CPL wnrk8 lo thi.8 pnd In collund was £301 k awarded to 71 inslilulions which will be Pdyiibte In Ihe lirsl quartgr of tha new flnanclal y88r. The ¢ylterS8 for grant funding is dellberalely wide In seope thc>uoh the malorlty of appli¢alions this year fell into thr8è m8ln Ihèm6S'. ICT H8rdware for disadvantag8d18arners. Sludenl wellbeing programmes. Innovalivo leaTning teohnology. namely around vlrtual reality. The Trustees and CPL Gyoup staff are proud of the contributK)n they can make to these causes. The Trusl¢es each work In educalional institutions which are rnembers of CPL and fherefore beneflt Irom ils servI￿s. Their institutions aw therefore ellqibla for orant funding. It is stated in the relatod party transactions that no trustees slt on the evaluation panel whirli r8Vi8ws and 8pproves funding applications and any grant funding paid will bè id8nt1fi6d and listed in the financial slatem8nls. Antsihèr popular prola¢t is tho subsidised lees for Ten81 on-domand servlces. Thls Is aimed al those institutions that may not normally access such a 89rvice. To date 57 InslilutSons have taken 8dvantao8 of Ihls servlce. Advanci ublished education and research in rOcur8m￿t rovldsd that all the useful resulis ol such res r¢ Crescent Learning Is tha banner undar whleh the charity fulfils ils charitable objedves In relation lo education and research aclSvllles. The charity continues lo fu￿1 its commltm6nt to advancing education Ihrou9h the funding of free PrL￿ureMOnt courses with 3 party prowders for rnemb8r st8ff. During the year 38 courses were funded covering subjects such as Writing a lender specification, Ethical procurement and supply. and Developing and managing contracts. 293 memb8rs have tsk8n orara in the process ot compleling a free e-leaming course comprfsing 5 modules, produced inhouse and covering the basics of pro¢uremenl wllhln an edu(xlional inslilulion. ThÈs course is CPD accredited and has received excellent reviews frorn participants. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2021 Furth9r e4earning courses are ir> planning and will be IBunched in due course. Each course Is almed at 8dvancing the education of the learner. CPL Group conllnue lo EXQ￿de lull admlnistratlve and lèchnital support lo regional aY)d nallonal Procurement Advisory Groups IPAGI and a￿ maklng 51gnificant progress in sotting up and supporting similar groups specifically for Heads of Estates within educationa5 institutions. Th6sè groups provide an excellent forurn for rnembers to advance thèir educalion through the transfer of knowledg with peers from other educational establishments and provlde feedback on new fiameworks and procurement developments whilst enabllng productlvo fèedback orh curr8nl servic&s. CPL Group havo ￿ntInUed lo develop the FELP (Further Education Library of Procurement) which is a Ire8 to a￿8s8 online learning resource portal for all members. The research undertaken by CPL Group is published via th8 library in 8 variety ofdifferonl templates and adviGelguidance documents. To eomplimentthe library, 811 of th& CPL framework agroements have a comprehensivo user-guide wth embedded templates 8nd guid8rkc$ do¢um8nls to help the member utilise a framework wilh ease. Flnanclal and businèss rèvièw Group income for the year ended 31 July 2021 was £3,945.508 12020- £3,446,600). Ttie year-end Surplus beftme pension costs was £63,76912020.' £324,811 lossl. In respeet of thé yo8r and8d 31 July 2021 a gift aid payment of £267,015 {2020-. £181),0001 was rècelved from Tenat Education Sorwces ar￿ £7,316 {2020.' £11.73tl from Tenet Procurement Services. The charlty particlpates the West Yorksh1￿ Pension Fund (WYPFI wllh Tenet staff participatsng in the NEST penslon scheme. Th8 WYPF p8nsion scheme lia￿lity is ￿2.192,￿0{202o.. £2.425,0001 <1 reducbtjn of £233k. The m051 Tecenl fortnal aduarial valuabnn nf the scheme was undertaken In 2019. The Truslees have commllted additional year on year nployer contributions over the next 5 years. Income from marketlng premlums from framework usage has increased by £283k during the year despite conunual restrictions and a further llalional lockdowll. Frameworks which did not perform well due to lack of student numbers in schools and wlleges were compgnsaled by frdmeworks such as ICT Haidware and p6riph6rals brought aboul by an increase in home-schooling. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 17 frameworks are currently signposted by the Departmenl for Education {DfE}. Tenet incomo from procurement placements illcreased by £158k during the year while the on-demand tenderfng seNtce increased its incom8 by £107k. CPL Group has managed to maintain, if not improve upon a high level of service across all buslness areas during a challenglng 18 months. Durlng the year the Group moved lo a permanent agile working policy whiGh allows staff lo ch￿Se thelr placé of work within any customer contractual bOu￿darIeS. This has had a positiv8 effect on both pmduotivity and staff wellbeing. The company head offico in Salford remains partially occupled andls predomlnately used as a hub for collaborative working wlh teams a￿osS the Group. CPL Group Wds vory pleased to a¢hleve Great Place to WLxf(" accreditalion and 'Top 100 Great P￿ce lo Work for Women in May 2021 and have been advised 10 seek similar accredllation in relalion lo wellbeing. The year ended wilh the ratiremenl of P91er Br￿er on 31 July 2021. Petèr had baèn ths Managlng Director of CPL ince Its conceptlon. Peter has b66n replac&d by Darren Lowe, prewously the Managlng Dir8Ctorof Tèn6t. wl)o wvers both posilions. Thi5 is madc possible by Ihe strengthening of the senior managemelll team wlhin Tenet. Coronavirus The national lockdown of 2019120 had 8 direct impact on income with a reduction in framework usage and the Tonel 0￿demand tendpring sp.rvice. Th8 Group h8s sufficlent reserves and cash lo withstand events such as those though a more eaulious business plan was put in placo f(Y 2020121. This pioved prudeii( wilh further lockdowns and restrietions throughout the year. ThTesholds have been pul In place to ensure that should forecasted Income levels drop again. appropriate responses are triggered to ensure buslnsss conlinuily. The reserves policy is reviewEd annually as part of the ￿dget S8tttng process. Th6 pollcy1s based on retalnlng enough reserves lo cover slx months operational a¢,tivily in addition to pen8ion 118blllty, eommlltèd projects and desigfialod rosotV8s. Excess reserves ara reinvested into the education sector in fullllment of charitable objectlves. The Trustees h8ve (Secided that in the evw mors likoly event that a slmllar global pandemic could happen, then more reserves would be needed lo ensure that the Group can continue lo provide ils serth¢es whllsl mainlalnlng as many jobs as WSSIb￿ to ènable a basè for the subsequent recovery. The tM)licy has therefore been amonded lo move toward havlng 12~months of operational cover from 2022123 onwards. This will be brought in gradually with oover being Set at nlne-months for 2021D.J.. Lookln ahead CPL Group intends to continue its gTOWth overthè comSng years. A new vision and 5-year stralegy will be deVelo￿d during the year that detiirl how Ihe business will achieve I￿ aim of being th8 procurement setvicès partner of choice foT the education sectoi. Within Ihe strategy wll b& a new Social Value stralggy d9tailing how the Group wlll achieve financial, economic, enMronm8ft1al, and S￿[al and human sustainability. This will includ8 an aim lo achieve ISO 14001 accredttation wthin 3 years and go beyond net ￿rboTh emisslons (carbon offsetting). Further and sustained investment in staff wellbeing is a priority, with the majority of Ihe worklOr￿ working remotely. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 Post balaneè sh•èt evants Thore have been no events slnce the year-end that have had a slgnilicanl effect on the Charitys financial posilion. Equallty dlverslty and Incluslon Thè Charfty has, and contlnually tsappralses, a full and comprèh6nslv6 pollcy of dlverslty Incluslon and equal opportunltias. Health and safety The Trusttr¢s are aware tsf thelr r&sponslbllilles on all matters ralalinu lo health and safety. The ¢h8rfty has w¢pa￿d detailed health and safoty policies and proiqdes staff training and oducalion on health and safely matters. Further details are providod in this report undor Risk Managornonl and Compliance checks. Internal controls assurance Thè Trust8es are responsible for ensurinq that its business is conducted In accordance wlth the law and proper stsndard8, Ihal tho C.h2rity'8 A88et8 and Mnn?y are safeguarded and propArfy accnitntpd for, and that they ar? being US￿ economically. efficiently and effectively. A wde range of intemal control mèchanisms are in place and belng operated to help the compsny meet its strategic objectives, lo opfj¥ale wlhin th8 law, lo m8ke 9ff￿live use of the Charity's rroney ar￿ to Feport aclivi11gs 8ccifr8lely. The59 bring togglher information from all significant parts of the busines5 and provide assurance lo the Trustees that an effeclivo Systom of intornal controls 18 in place. The most 8ignllicanl Sou￿eS are Ihrough.. The external auditors. Flnanclal and non-flnancial performance mon¥toring and tnanagement. Appropri8te comtnunicotions structure8. Eff8clivg slrateqies, policies and procedures= and External stakeholders, including the Charity Comnwssiorj ané a¢creditaliov¥ ￿les. The main forms of Bssurance are.. erational controls Effective recruitment and selection processes are in place lo ensure suitable people are employed (including the complelion ol Disclogure and Barring Servlce LhgLkb for slaff worf(ing in educallov)al Inslilullo¥)sl with senlor managers responsible for ensurlng that standards of conduct and behavlour a￿ maintalned to the hlghest lev61s. Annual appraisals Ibas8d aroLJnd the Charity's visÈon and values) and hatf yaar Interlm ravi8WS, Wlth r￿￿lar learn and one lo one meetings und8rtaken to maintain high standards of perforrnance, and HR p*o¢esses ar8 in Pla￿ to address any gaps or failings. Formal polieAes and procedures are in place for both lin2ncial and operational actiwties. These indude (but are not exeluslve tol FlnancSal R&gulatlons, IT and Communleatlons Aceess Poli¢y, Group Conduct, Dal8 Piole¢lion Policy, Health and Safely Policy and Troasury Man8gom¢nl Policy. Appropriate separations of duties are in place across key opgralional fun¢tions &.g. purchase ordor pro¢e$s lo mitigate risks around fraud. Role based acces5 controls are Én place to ensure thal staff only have acce55 to Sy51em5 and data that 15 pertinent to their requlrementS. Flnandal foreeasts and budgèts 8r8 In plac8 whlch allow thè lÈadèrshlp team to monltor spénd t8rms ol achi8ving bU(￿etS in the short, medium and long term. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Risk ma com llan￿ checks Significant work has been undertaken durfng 2020121 to update and improvd th¢ CPL Group rtsk reglster. Rlsks are eollaled under four main hoadings.. Financial, assets, prernises, H&S and charitsble status. Suppliers, pariners, competition, frameworks and all Group procu￿Ment services. Group op8ratlonal. legal and regulatory matters. Mernbership, eustomèrs, reputational issues and the marketplac8. The risk r8glst6r Is reported lo every Board moeling, supplemented by detalled rewews Ihroughout the yèar by th Group Le8d8rshlp T6am. The risk appetlle is reviewed during thls proeass. A r8nge of surveys are undortakgn of custorner satisfaction and employee satisfaction. in¢luding detsiled analysis of the vesulls thqlh actlons lakon lo addrcss areas of coneÈrn. There is appropiiate Independent ovarsight of cornplianc@ withlt) speclflc areas of the business such as Health & Safely and Data Prolo¢lion. CPL Group recently maintained Its oreen light rating in ils annual Health & Safely inspectlon wilh particular Ilonlion brotjght to ils pro¢e889% in relation to Covid-19. A Health and Safely Exo¢utive IHSEI spot check in MarGh 2021 on tha ¢omp8ny's covid-19 control m08sures In speclflc relation "lo Tenet staff ach18V8d recognition for going"8bove and beyon(r. CPI. Group w?rp aw2rd8d'Crèat Place to Work. ac￿ed11a¢10n and"Top 100 Great Place to Workforwomen n May 2021 and have been advised lo seek slmllar accredilatson in relation to wèllbÈing. CPL Group achieved Cyber Essentials Plus accredltation in July 2021. Internal controls assurartC8 coneluslon The Trust68S e8n take assurance that the CPL Group Is reacting appropriately lo tho ¢hallenges It is facing and has acted proactively to idEntify, Investigate and communlcate Issues and managemgnl a¢bons in an ac¢essSble. transparent manner. The Trubtees can confirrn that th8 CPL Group has suitable internal controls for maintalning adequate accounting olds, for 5aleguarding (he of the charity, and for ta￿ng roasonablo steps to prevent and delect fraud and olhcr iTregularllles. They also confimi that no we8knesses liave been ideniified frorn IhÈ extem81 audit wh￿h would have resulted in material mlsstatement or loss and which would have requlred disclosure in the finan¢ial statemènts. Annual general meeting The annual ganer￿ rne6tlt￿ wlll be held on 16 November 2021. The event will be onlina Mi(wsoft Teams. External audltor Haines Watt8 wore reappointed at Ihe 2020 AGM for a three-year period. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 st8t8ment of tho re8ponslbilities of the Board of Trustees In relatlon to the Flnanclal Statements Company IAW requ1￿5 th6 Trustees lo prepare financial st8tetnents for each fin8nCi81 year which give a Irue ar￿ falr view of th6 Statè of affalrs of thè eharlty at th8 ènd of th8 financial year and of its surplus or deficit for the linandal year. Th6 trust88s are Tequlr8d to: Seloct sullable accounting poliues and then apply them consistendy. Observe the methods and princAples in the Charities Statement of Recomm&nded Practicè {SORPI. Make judgements and estimates that ¥r¢ reasonable and pwdenl. Slate whether applicable UK accounting standards have been followed, subject lo any material departures disclosed and oxplainod in the finarKial statements,. and Prepare the financial stalements on tlie yuing Loncem basls unless it is Inappropriate to presum¢ that th8 charity will cont¢nue in business. The Trustees are responsiblè for kaèping propèr accounting iecords that disdose, wth reasonable a￿￿￿9¢y al any time, the linèncial positson of tha charity and to 8nable Ih8m 10 8nsurp that thg financial statements comply with the Cotnwdnies Act 2006. They are also r8sponsible for safeguarding the assets ol the charity and the group and henca taking reasonable steps for th& prevention and detection of fraud and other irregLJfarities. The Trustees are responsible for th9 main19nancg and integrity of the corporate flnancial Information included on the charitable company's website. Legislation in the United lfjngdom goveming the preparation and dissemination of th8 fin8ncÉal slatem8nts rnay differ from legislation in olherjurlsdlcuons. In so far as each Trustee is eware= Ther6 Is no relèv8nt audll Infomiation of which the Charity's auditors are unaware,. and Tha Board of Truste8s have taken all 8tep.% that it nught ta havp taken to makè itself aware of any audil information and to establish thal the auditors are aware of that information. This report of the Twstees was approved by the Board on 16 November 2021 and slgned on Its behalf by.. D N PLEII in, Chair of Trustees CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 JUL Y 2021 Oplnlon Wè have audited the financial statements of Crescent Purchasing Limited (the 'cha￿ty.} for Ihe year ended 31 July 2021 whleh comprise the statement ol financial a￿VIll¢s, the balance sheet, the statement of cash flows and the notes lo the financial statements-. Including signllkant accounting policies. The financtal reporting frsmawork that has been applied in their proparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard atplicable in the UK and Republic of Ireland" (United Kingdom GenerallyAccepted ACc￿nting Pract1￿). In our opinlon, the financial statements.. give a true and lair view ol the state of the charitable company's affalrs as al 31 July 2021 and of its incomlng resources and appllcatlon of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Ggnar8lly A¢¢epled A¢crAJntlng Pradce. and havé been prepared in accordan￿ with th8 rsquiysments of the Companies Act 2006. Basis for opinlon We conducÉed our audit in av￿rdanc8 Wlth InlematlOll21 Stand8rds on ALJditing IUIQ {ISAs (UK)) and applicable law. Our responslbilltles under those standards are further dèscrlbÉd in thè Auditovs responsibilities for the audlt of the rinancial statements saetion of our re￿rt. We are independent of Ihs charity in aooordance with the ethical requirements that ar8 r￿&Vant to our audit of thefinancial statements in Ih@ UK, Including the FRC'S Ethlcal sta￿da￿d, and we hav? fuifillpd our ather ethical responsibilities in accordance wilh Ihoso rcquircmcnts. We believe that the audil ewdence we have obtained Is SLthcienl and approprtdte lo provide a basis for our opinion. Concluslons relatlng to going ¢on¢ern In 8udlllng the financial giatements, we have conduded that the auditor use ol th6 golng concern basis of accounting In tho wep8r8tlon of the financlal statements is apwopriale. Based on the wty* hav8 parfom6d, we have not identified any material uncortainlies relatlng to 8vents or Conditions that, individually or ￿lleCtively, may cast significant duubt Lin the charitls abilily lo continue as 8 going concèrn for a pericxl of at least Iwelve Months trom when Ihe financlal statements are authorised for issue. However. becaus8 1101811 futuré 8vènts or conditK)ns can be predicted, th18 8talemenl is not a guarantee as lo the company's ability to continue as a golng CO￿ern. The COVID-19 viral pandemic is one of the most signrfcant economic ev&nts for the UK with unpr8C8dènt6d1ovo1s of uncertainty of outcomes. It is Iherofore difficult lo evaluate 11 of th6 Potential ImplicatiorE on the CoMpan￿S tradts, customers, supplier and wider economy. Our responsibilities and the responslb]IIUas of the Irustees with respect lo golng concem are dos¢rfbed in the relevant sections of this report. Other infomiation The other informalion comprl8eS the Information included in the annLial report olher than the financial slalem&nls and our audllovs report thereon. The trustees are rasponsibl8 for thé othér Infomialion contained wqlhin the annual report. Our opillion on the firbanclal 5tatemgiilb does not Cover the oth8r Information and we do not express any form of . assurance cOr￿l￿S1o￿ Èhereon. Our responsibility is to rpad th8 Other information and, in dolng so. Consider whether the olhor information is materially inconslstenl wlth the financial stalements or our knowledge obtained in the course of Ihe audit, or olherwlse appears to be materially mlsst8led.lf we identify such material inconsistonoies or apparent [nate￿al mlsstatemBnts, we are required to déttermlne whether this gives rise to a materlal mlsstatement in the financial statements themsa￿&s. If, bas8d on the work we hav8 performod, we conclude that there is a material mlsstatemenl of this other information, w8 arè required to report that fact. We have nothlng to report in this regard. CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRESCENT PURCHASING LIMITED atters on which we are required to report by exceptlon W6 hav8 nothlng to report in r8spect of th8 folk>wng mallers retalion lo whi¢h th9 Charities {Accounts and Reports) Règulallons 2008 requlre us to report to you if, in our opinion.. the information givèn in th8 financial st8t8m8nts is inconsist8nt in any matarial respect wilh Ihe Auditor report,. or sufficient accounting records have not beèn kept.. or Ihe finanelal statements are not In agreement with the 8c¢ounling records,. or we liave not ¥ocoived all tha information and explanalions we require for our audit. Responslbllltles of trustees As èxplained more ftjlly in th6 statem8nt of Auditor r8swnsibililie8. the trustees, who ar8 also the dIreCt￿S of the charity forthe purpose of company law, are responsible for the preparation of the financial slalemenls and for being satisfied that they give 2 true and fair wew, and for such internal control as the trustees delermlne Is necessary to ènable the preparation of financial statements that are free from malerial misstat8ment. whetherdue to fraud or error. In preparing the financial slalements. the trustees are responsible for ass85sing the charity's a￿litY to continue as a going concem, disclosing. as applieable, matters related to going eoncÈm And llglng tli& galng rnnr.prn basis of accounting unless the tTuslees either intend lo Ilquidale the charitable company or lo cease operations, or have no rgalistic alterllative but lo do so. Auditorfs responslbllltlos for th• audlt of tha flnanclal statèménts We have been appointod as auditor under 8eclioN 144 01 the Charities Act 2011 and report in accordance wth the Act and relevant regulations mado or havlng offecl ther8unofer. OUT objcclives arc lo obtain roasonablo assLFrance about whether the financial statements as a whole are free from material misstatement. whellier dug lo IrÉiud or errur, 12,425,000) Net assets 2,524,607 1,765,838 3,155,585 2,267,458 tncome funds Unrestricted funds- designated Unr8Stricted funds- gort8Fal Unrestrioted funds- pension 21 599,476 656,738 5gg,476 656,738 4.117,131 3.534,100 4,748,109 4,035,720 12,192,QOOI 12,425,000) 12,192,000) 12.425,0(KI} 2.524,607 1,785.838 3,155,585 2,267,458 12 CRESCENT PURCHASING LIMITED CONSOLIDATED BALANCE SHEET (CONTINUED) ASA T31 JULY2021 The eornpany is èntitled to the exemption from the audll requlrement conlaingd in section 477 of the Compani88 Act 2006, for the year ended 31 July 2021, although an audlt has been carrted out under se¢lion 144 of the Cha¥rfies Aol 2011. No member of tho company has deposited a notice, pursuant to Section 476, requiring an audit of these linancial stalemenls under the requirements of the Companies Act 2006. The Irusl888 acknowledge their respi)nsibilities for ensuring that the charity keeps accounting records vthich comply with seclion 386 of the Act and for preparing fi'nanclal statèmÈnts whlch give a true and fair wew of the state of affairs of the company a5 al the end of the finan¢i31 yaar and of ils incoming resourcèg and application of r8sourc6s. including its in¢omo and cxpendlttsre, for the linaneial year in accordance with the requirements of sg¢lions 394 and 395 and which othgW4ise ¢omply with th8 r8qulrements of th6 Companies Act 2006 relating lo fi'nancial sta18m8nts, so far as applicable to the company. These financial slalements have been prepared in accordanco wllh the provisions applicable to companies subject to the small companles regime. The financlal slatemenls were approved by the Trustees on 16 Novembér 2021 D N Pulleln Chalr of Twstees Comp8ny Reglstration No. 06774578 13 CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JUL Y 2021 2021 2020 Notes Cash flows from operallng actlvltle8 Cash generated from operations 493.706 460,022 Investing activitles Purchase of tangible fixed assets sale olfixed a88els Interest received 120,8271 1,447 9,077 {105.4151 15.658 Net cash usgd In Investlng activiiles 110.3031 {89.7571 Nat cash uséd In flnanclng actlvltles Nel increasel(deereasel in cash and cash equivalents 483,403 370,265 Cash and cash equlvalenis at beglnnlng of year 3,352,873 2,982,608 Cash and cash equivalents at end of year 3,836,276 3,352.873 14 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2021 Accounting pollelès Charlty Infomiation Crescent Purchasing Ltmi16d is 8 private company limited by guarantee incorpordled in England and Wales. The registered office Is Procur&mtsnt House, Lesltsy Hough Way. Salford, M6 8AJ. The Crescent Group Consists of Crescanl Purchasing Limited, Tenet Educatlon S8DAcos Limit6d and TÉn$l Procuiernent Services Limited. 1.1 Accountlng conventlon Thg ¢ha17ty wnstltutes a publlc b8neftt entity as d81ined by FRS f02. The financial stat8m8nts have been prepared in accordance with Accounting and R8POrting by Ch8rtlies'. Statement of Recommended Practic applicable to ¢hariti?8 pr@paring thgir arcounts accordance with the Financial Reporting Standard 8pplSeable In the UK and Republic of Ireland issued in October 2019, Ihfj Financial Reporting Standard applieablè In thè Unlt6d Kit)gdom and Republic of Ireland IFRS 1021, the Chari11gs AGI 2011 and Ihg Companies Act 21J06 and UK Génèrally Aceèpt8d Accounting PrACtice. The flnancial stat&mants arp. pr&pargd in 8tgrllng, whlch Is thé functlonal currency of the charfty. Monetary amounts In these flnancl81 stat6mentS Bre rounded to the nearest £. The financial stat8ments have been prepared under the historical cD81 ￿nVention. The principal aw)unlillg Iicio8 adoptAd s8t out b610w. The chadly Is a qu8llfylng enlity forthe purposes of FRS1D2 and tho Charity SORP, belng a Member of a gr￿Jp where the parènt of that group pr￿areS publicfy available consolidated financial slat8rnents which are intended lo gi￿. a tru8 and fair view {of th6 assets, liBbililies. finRncial position and profil or loss} and that m9mber 18 included in the consolidallon. The charity has therefore taken the advaniage of exemptions from the followng disclosure requirements for paronl company infortnation presented wllhln the consolidaled ffinancial slalèments.. S8ction 7 °Sta18m8nt of Cash Flows" dlsclosures Sèctlon 33"Related Party Disclosures". Compensallon for key manaoement personnel. Presentation of a statomenl of cash flgw and related notes 1.2 Golng concern At the time of approving the financlal ststements. the trustees have a reasonablg exp8¢tation that th8 chatity has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the Irusl8es continue lo adopt the going concem basis of 8¢counting in pieparing the financial stalements. 1.3 Charltabl8 funds Unrestiicted funds are available for use at the discretlon of the trust66s in furtherance of their charitable objectives unless the funds have boen designated for other purposes. Resirfcted lunds are subject ILb specific condFbons by donors as to how they may ￿ used. The purposes and ses of the restrided funds are set out in (he notes lo the financial stattsments. Endowmentfunds are subject to specific conditions by don(Ks Ihallhe capit81 must be malntalt)ed by the charity. 1.4 Incoming resources Income is r8009nised when tho charity is I￿alty entitled to it after any perfomiance conditions have been met, Ihe amounts can be measured reliabty, and It is probable that income will be received. 15 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Accountlng pollcies Cash donations are recognised on receipt. Other donabons are recognised once Ihe ¢harlEy has been notilled of the donation, unless performance conditions require delerrdl of Ihe (?mount. Income lax recoverable In relation lo donations received under Gift Aid or deeds of covenant Is recognis8d at the tlme ol the donation, Legacies are reccyJnised on receipt or othenmse il the charÉty has béen notifièd of an impènding dlstributli)n, the a￿￿Unt is known, Ènd receipt is expected. Ef the amotjnt is not known, the legacy is treated as a contingent asset. Interest on funds hold on deposit is InGluded when receivable and the amount can be t¥teasured reliabty by the charity, this is nomially upon nolilicalion of tho interest paid or payable by the bank. 1.5 Re$ourcès axpènd•d Expenditure is induded vAthin the Statement of Financial Aclivilies on an accrua18 basis. Irrecoverable VAT has ￿en charged as a cost against the activity in which the expendilure was incurred. All expenditure is solely for the purpose ol achieving the charities objectives and has bBen dlsdosed wilhin Ihose cost categorles. Governance costs are recognised when, and lo the exlenl Ihal, the chartly ¢an Idenllfy aetivittes In whi¢h are associated with the general running of the charity, as opposed lo being directly assoGiated with its charitable aetivilies, Support costs are rèctsgnisèd whèn th6 charily can identify centralised seNces that beneflt all areas of the charIl￿S operations. 1.8 Intanglble flxed assets- goothwlll Goodwill represents the excess of the cost of aequlslllon of unlncorporated businesses over the fair value of not assols acquired. It Is Inltlally r￿gnised as an asset at eost and is subsequently rneasured at cost less accumulateé amort*sation and accurllulat8d Impairm8nt Ioss8s. Goodwill shall be considered to have a finite useful lrfe, and shall be amortised on a systgmalic basis over ils Ilfo. 1.7 Intsngible fixed a$$¢t$ other than goodwlll Intangible assets acquired separately from a business ar& reGoJnised al cost and aye subsequently tneasured 81 Cost less acwmulated amortisation and accumulated Impalrment losses. Inlanqible assets acquir8d on busill8ss comblnatlons arè rtrcognlsed separatelyfrom goodwill atthe acquisition date whpr&. it 18 prahabl8 that the exp8ct8d future économlc benefits that are attributable lo the asset will flow to th8 antity and the cost or value of the asset can be measured rellably. Amortisalion Is recognised so as lo write off the cost or valualic>n of a55ets less Ihelr residual values over ihelr selul lives on the following bases.. Customer wlallonships Brand Over 8 years Over 8 ygars 16 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Accountlng pollcles 1.8 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al Gost or valEEation, nel of deprecialion and any impairment losses. Depredation is recognlsed so as to wtile off the Cost or valuation of ass8ls19s8 their residual values over their expected useful lives on Ihe following bases.. Leasehold Improvements Plant and equipment Fixtures and fillings Ov8r the life of the leas8 Between 3 and 6 years Ov&r 5 years Th8 gain or loss arising on th8 di8ptF881 of an asset is determined as the differen¢p between the sale procèed5 and the caryino value of the asset. and is recounlsed In net Incom61{expendlturel for th6 yaar. 1.9 Impalrment of flxed assets At each r8￿rtI￿ 8nd dat8, th8 charity r&views th& carrying arnounls of its tangible and intangible assets lo dol•rmine whpther th?re 18 any indiration that Ih(kqp assets have 8ufferpd an impairment loss. If any such indication exists. the recoverable amount of the asset is estimated in order to determine th6 extent of thè impaimienl loss lif any). Intangible a88ets with indefinite useful lives arKI intangible as8els not yet available for use are 1gst8d for impairrnenl annually, and wh8ngvgrther8 is an indication that the asset rnay be impaired. 1.10 Fl¥ed asset Investments Flxed asset Investments are Inltlally measL4red at cost and subseouenlly measured at C05l le58 any accumulated impalrtnent losses. The Investments are 8ssess8d for Impalment at each reporllng date and any lrnpaÉrm8llt108S8s or r8V8rsals of impairment losses are recagnis8d immediately in n8t incom&llgxpendilurel for the year. 1.11 Cash and ¢•$h equlvalents Cash and cash equivalents include cash in hand. deposits held at call with banks. other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in curtent liabililies. 1.12 Fihanclxl Instruments The charity has elected to apply the provisions of Section f1 '8asic Financial Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to 81101 its finaneAal instruments. Financial inslrumgnls are recognised in the charity's balance sheet when the charity becomes party to the conlraclual wovisions Of the instrument. Flnan¢ial assets and Ilabilllies are offset, wlth th6 net emounts presented thLI flnan¢lal statements, when there is a legally enforceable right to sel off th9 recognised amounls and there is an intention lo settle on a n8t ba818 or lo realise the asset and sellle the liability simullan¢ously. Baslc financl818S5ets Basic financial assets. which include debtors and cash ar￿ bank balances. are initially measured at transaction price induding Iransaclion costs and are subsequently carried al amortised cost using the effective int6re8t mèthod unlass tha 8rrang8mènt ￿nstItUt&S a flnanclng transactiori. wher6 Ihè transaetlon Ss mèasur8d at th8 pr6sent value of the futur8 r8c8lpls dtscount6d at a m8rk6l r8t6 of int8r8St. Finandal ass8ts classified as receivabl8 within one year are not amothsed. 17 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 JUL Y 2021 Accounting policiès 8aslc flnanclal Ilahlllt18S tjasic financial liabilities, including Creditors end bank laans ar8 initially rècognised 8t transaction price unless the arrangement constitutes a financing transaction, where the debt Instrument Is measured at the present Wdluè of thè future payments discounted al a marf(et rale of interesl. Financial liabilitie5 classified as pa￿ble within one y8ar are not 8mortised. Debt Instrumenls are subsequently carried at amortised co81, using thé 8ff8ctlve Interesl rate method. Tradè crèditors are obligations to pay for goods or ServI￿S that have been acquired in the ordinary course of operallons from suppliers. AtTruunts payable are cldSSilied as Lurrenl liabilities if payment is due within one y8ar or less. If not, they are presented as llon-currenl liabilities. Trade creditors are recognised initially at transaction prlce and subsequentty measured al gmortised cost usÈng th8 8ffedv6 Interest method. Derècognltlon of financlal liabilities Financial liabiliti88 are ￿er8￿gnIsed when the charitys contractual obllgallons expire or are discharged or cancelled. 1.13 Employee benefits The cost of any unused holiday entitlem8nl is recogni$8d sn th8 p8ri0d whleh the èmployee's servlces are received. Termination bon¢llts ar¢ re¢ognSsed IM￿￿dIatelY as an expense when the charity 18 demonstrably ¢i¥nmitt8d lo temiinate the employment of an omptoyeo or Its provide lerminatlon beneflls. 1.14 Retlrement bener Paym8nts lo d￿Ined contribution retirement benefit schemes are charged as an oxp¢nsa as they fall due. The cost of prowding b8n8fit8 defir¥ed benefil plans 18 deterrnined $8parately lor E8ch plan using the projected unll credlt method. and Is based on a¢tuarlal advice. The chanqe ift thè nat dèfined benefit liability arising from employee service during the year is re￿gnised an employee cost. The cost of plan introdu¢tions. bentsfit ¢hanges, settlements and curtailments are rocognised as incufred. The net interest elemenl is determined by multiplying the nel defined ben8fil Ilèbility byfh6 discount rate. taking into account any changes in Ihe net defined benefit liability diiring thg pgriod as 8 result Of ¢ontribudon and benefit paym8nls. Thè nat Intèr8St is recognised in ineomellexpenditurel forthe year. Re-MeaSu￿rnent changes comprise actuarial gains and losses, the effect of Ihe asset celling and Ihè return on the net defined benefit liability excluding amounts included in netinl&resl. Th8s8 ar8 rècognised immediately In other recognised gains and tosses In Ihe per1(￿ in which they Dccur and 2r8 riot reclassified to incomellexpenditurel In subsequent pe¥lods. The nel defined benefit penslun asset or Ilabillly In the balance sheet comprises the total for each plan of the present value ol th9 d8lined b8nèflt obllostlon luslng a dlscounl rate based on high qualily corpoiale bonds), le55 the fair value of plan a￿etS out of which the obligations are to be settled directly. Fair value is based on Market price information. and in the case of quoted securities is the published bid prf¢e. The value of a net P8nslon b8neflt asset is limited to the amount that may be recover8d ellh8r through reduced contributions or agrèed rèfunds from the scheme. CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Aceountlng policles 1.15 Basis of consolldation In the parent company financial statements, the cost ol a bLJsiness comblnalion is the fair value al the acquisitior¢ date of the assats gi￿n, oquily Inslruments Issued at)d Ilabilities incurred or assum8d, plus costs directly attributable to the busin&ss combination. The excess of the cost of a business combinalion Ovèr the fair value of the identifiable assets. liabilities and contingent liabillties aequlred is recognised as good￿￿11, The ¢tssl of the eomblnalion Includes the estimated amount of contlnqénl conslderation that is probable and can be measured reliably. ar￿ is adjusted for changes in contingent ¢on.%idpratian after the 8cqulsition date. Provisional lair values recognis(Ml for business comblnations In the prevlous periods are 8djusled ret105peclively lor findl falr values d&leriMined in the 12 months follo￿n9 the acquisition date. Investments in subsidiaries, lolnt ventures and associatos are accounted for 81 cost ￿$8 Impairi￿nl. The consolidalgd financial $lalerngnts ineorpDr2te tliose of Crescent Purchasing Limited and all of its subsidiaries li& entities Ihal the group controls through lis power (o govem the finanetsal and opgrating poliaes so as to obtain economic benelilsl. Subsidiarics acquircd during the year are eonsolldated using the purchase method. Their r8suIts are in¢orywrated from the date that control pass8S. All financial statements ar8 mad8 UP to 31 July 2021. Where appropriate, adjuslmonts ar¢ rnade to fhe Ilnancl81 statements of subsidiaries lo br*ng tho accounbng policies used In Ilna wilh those used by other mèmbèrs of the group. All inlra-group transactlons, balances and unrealised gains on transactions b8tWoen 9roup companies are ellminaled ori ¢orig0(idation. Unreallséd losses are also eliminated unless the transaction provide5 ewdence of an Impaimienl of the as8el tran￿f9rr9d. Tenet Education Serd¢es Llmlted and Tenal Pro¢urarnent Services hav8 b86n included in the uroup flnancial statements using the purchase method ofaccounling. Acrordingly, th8 group st8tementof finanaal activllies and slalom¢nl of cash flows Include the resulis and cash flows of T8nel Education Services Ltmited and Tenet Procurgrnenl Semces Llmltèd. Critlcal aecountlng estimates and ludgements In the application of the ¢h8rlty's accounting poliues, the trustees are requlred to make judgements. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assoclafed assumptions are based on historical cxporicncc and ofhèr fxclors that are considered lo be relevant. Actual rosults rnay differ (rom these estimates. The eslimales and underl)ing 858UtnpUons are ￿vieWed on an ongoing basis. R¢vlsions to a¢eoLJnting esllmales are rocogniscd in the pcricxl in whlch the eS￿Mate is revised where the rovislon affects only that period. or Sn the period of lh& revision and fukn%ré payiods where the revision affects both current and fulure peiiods. During the current or preceding financial 5talements, no critical judgements or &stimat88 W8rè usad in the preparation of these financAal slatsmenl8. Charltable acllvltl85 Group 2021 Group 2020 Charlly 2021 Charlty 2020 Marketing premlums Services r&ndered othew inwme 2.058.857 1,864,370 5,490 1,775,807 1,599,841 18,538 2,055,067 1,775.807 182,466 117.175 3.928,717 3.394,186 2,237,533 1,892,g82 19 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 Investments 2021 2020 Interest recelvable 9,077 15.658 All of the GroLJP'S Investment Incorne of £9.07712020'. £15,658) arlses In Crèscanl Pur¢h8slng Llmiled from money held In fi￿te￿t bearing doposit acwunts. Other Income 2021 2020 Coron8virLts lob rétèntlon schame 7,714 36.756 20 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Charltsbl8 activities Group 2021 Group 2020 CharSty 2021 Charity 2020 Staff costs Occupancy costs Telèphonè Postage and stationery Insuran Legal costs Travel costs Recruitment and training Marketing and adv&rtising Crescent leaming Procttremenl partner and member shared Incomtt 2.697.114 69.676 24.856 5,234 38.225 314 11.954 47,912 32,109 4,165 2,324,940 88,783 23,443 5,965 34.1fj5 6,380 72,192 30,787 50,343 20,943 1,253,009 69,676 16,036 3,221 38.225 314 499 37,637 24.165 4,165 1,044,654 68.783 15,976 4,305 24,121 2,120 18.587 16.309 15,837 20,943 10,529 11.581 125,6161 2,971 18,818 43,127 12,275 34.140 23.410 2.486 23.405 36,567 103,351 6.391 125,6161 1,839 16,363 32,253 168,408 4.600 25.574 1,351 12.718 22,263 Consultancy f888 Provision fix bad dabts Bank charges Other expenditure ICT ¢osls 2,992,969 2,770,154 1,581,528 1.466,549 Grant Funding A¢livities {se8 notg 7} 68,133 325,477 68,133 325,477 Share of support ¢osts (see note 81 Shara of gov6manee (￿St$ (see noie 81 797,840 22,797 653,781 21,999 664,552 15,103 522,934 15,479 3,881.739 3,771.411 2,329.316 2,330,439 Analysis by fund Unrp8lrirtpd funds- g@neral Unrastricted funds- d8Slgn2t8d 3.813.606 68.133 3,445.933 325,477 2.261,183 68,133 2.004,962 325.477 3.881,739 3.771,411 2,329,316 2,330,439 21 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED> FOR THE YEAR ENDED 31 JUL Y 2021 Grants payasjle Reinveslrnent acltvities payable into Ihe education sector Is expendilLEre made frt)m tha charity's designal8d funds toward agreed PTojects detalled In thè Trustees report and note 21. This expendiiure falls outsid8 of standard operation81 costs and may lead to deficits in some years. The operational sulplus that would have begn slated had this Tolnvo$lm¢nl into the sector not happened Is stated. Group Group Charlty Charlty 2021 2020 2021 2020 Net Income for the year Expendltura from deslunated funds 63,769 68,133 1324,811} 325,477 193,127 68,133 1208,2731 325,477 Operational surplus 131,902 666 261,260 117,204 Group Support costs Support Governancè costs costs 2021 2020 8•$l$ of allocatlon Staff costs D8preciation and amortisalion 625,849 625.849 497,771 Admtnislralion Support 171.991 171,991 10,425 5,483 6,889 156,010 12,875 Governancè 3.884 Govemance 5.240 Govérn8nc6 Audll lees Legal and professional Accountlng s6rvi¢es 10,425 5,483 6.889 797,840 22,797 820.637 675,780 Analysed between Charitable activities 797,840 22,797 820,637 675,780 Govemance wsts includes paym8nts to th8 8udllors 01 £10,42512020.' £12,875) for audit fees. Charity Support Governance 2021 2020 Basls of alEo¢ation cost5 costs Staff costs Depreciation and amortisation 625,849 625,849 497.771 Support Support 38,703 38,703 6,925 4.982 3,196 25,163 7,725 Governancg 3,884 Governance 3.870 Governance Audlt f8es Legal and professional Accounting services 6,925 4,982 3,196 664,552 15,103 679,655 538,413 Analysed between Charitable activities 664,552 15,103 679.655 538,413 Govemance costs Includes payments to th9 auditors of £6,92512020.. £7,725) for audit lèas. 22 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Net movement In funds Group 2021 Group 2020 Charlty 2021 Charity 2020 Net movement in funds is stated after oharuingl{eredilingl Fees payable to the companls auditor for the 2udit of the company's financial statements Depreciatson of owntsd langlbla fixed a$s¢ts Amortisation of intangible assets 10,425 33,298 138,693 12.875 31,010 127.489 6,925 25,010 13,693 7,725 25,163 2,489 10 TruSt￿S None of the trustees (or any persons ¢onnecled wllh them), excepl for the Managing Direck)r. received any remuneration during the year, no Irusts@S W8r8 r8imbursed travelltng expenses In the yeBr12J20'. £1,768). Please se& note 11 for further disck)sure of remuneration and key management personnel. 11 Employees Number of employ8èS The average monthly number ￿TrplaYees during the yearwas.. Group 2021 Numbor Group 2020 Number Charity 2021 Number Charlty 2020 Numbgr Prolesslonal and admlnlstratlve stsff 66 65 31 33 Employment costs 2021 2020 2021 2020 Wag8s and salaries Social s8curlty costs Other p6nsion costs 2,455.395 254.732 612,836 2,166.494 220,395 435,823 1.189,970 122,947 565.941 1,044,729 106,284 391,412 3,322,963 2.822.712 1.878,858 1.542.425 Included wllhln other penslon costs are current senric8 Costs and associ8t8d Int8r8st 8XP8ns8 d8fin8d benellt penslon plans. Durfng the year, the company recognised currenl service costs and Interest expenses from deflned b9neflt P9nsion plans of £462,OOQ12020.' £312.0001. Included within support costs are wages to the value of £625,849 for the Human Resourres, Financg, Marketing and IT departments through vlrtue of shared service lo all of the charilable a(aiwli&s. 23 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 11 Employeès Icontinuedl The number of empkyees whose annual remunerauon was £6Q,000 or more Wore.. Group 2021 Numb•r Group 2020 Numbèr Charity 2021 Number Charity 2020 Number Directors Employees Peter Brewer (Managing Di¥ectorl is the only key management personngl associated with the direct running of the charity. Peter Brewer was paid total remune¥ation of £111.72212020= £110,958). The Yomuneralion for Peter Brewer was provided in his capacity of Managing Director of the charilable activities and not in his capacity of trustee of thg Gharily. Included withln tolal remvneratlon were pension contributions totalling £8.73912020= £7,824). Peter Br9Wgr relired from his position as mgnaging director on 31 July 2021. 12 Taxation Thè charity Is exempt from tax on Income and gains falling withln sectlon 505 of th& taxes act 1988 or 8ectlon 252 of the Taxation of Chargg&ble Gairbs Act 1992 lo the extenl that these are applled lo it9 charSlable objects. 13 Group intangible fixed assets Goadwlll Customer rèl#tlollshlps Brand Total Cost At 1 August 2020 and 31 July 2021 1.804,474 69,003 366,523 2.240.000 Amortlsallon and Impalmient At 1 August 2020 AMOr￿Sa￿0n eharged for the year 1,532,236 70,000 34,504 8,750 183,260 46,250 1,750,000 125,000 Al 31 July 2021 1,602,236 43,254 229.510 1.875,000 Carrylng amount At 31 July 2021 202,238 25,749 137.013 385,000 At 31 July 2020 272,238 34.4 183,263 49Q,000 24 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 13 Charity Intangible fixed assets Goodwlll Cosl Al 1 August 2020 and 31 July 2021 1,250,C¢OO Amortlsatlon and Impalrment Al 1 August 2020 1,250.000 Amorbsation ¢hsrged forthe year Al 31 July 2021 1.2￿.000 Carrylng amount Al 31 July 2021 At 31 July 2020 13a Group other intangible fixed assets Customer Relatlonshlp Managemont System Cloud based seNer Total C¢$1 At l August 20201 ro-s18l¢dl Addillons 80,492 80.492 8.500 8.500 At 31 July 2021 80,492 8,500 88.992 Amortlsation and ImpaSrm8nt At 1 August 2020 Amortisalion charged in the year 2,489 13,410 2,489 13,693 283 Al 31 July 2021 15,899 283 16,182 Carrying amount At 31 July 2021 64,593 8.217 72,810 Al 31 July 2020 78,(￿3 78,003 25 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 13b Chartty Intanglble flxed assets Customer Relationshlp Management Systèm Cloud based server Total Cost Al l August 2020 ( re -Staledl AddStlons 80,492 80,492 8,5QK) 8.500 Al 31 July 2021 80,492 8.500 88,992 Amortlsatlon Impalrm$nl At 1 August 2020 Amortisation charged in the year 2.489 13,410 2,489 13,693 283 At 31 July 2021 15,899 283 16,182 Carrying amount At 31 July 2021 64,593 8,217 72,810 At 31 July 2020 78,003 78,003 26 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 14 Group tanuible fixed assets Leasehold Improv¢menf¥ Plant and FIKture$ 8nd equipment ritlithgs Total Cost Al 1 August 2020 Additions Less Di8posals 58,757 45,470 12,827 12,127 29,417 133.643 12,327 12.127 At 31 July 2021 58,757 55,670 29,417 143,843 Dapreclatlon and Impalrment At 1 August 2L120 Depreciation charged in the ygar Less di8pos818 20,392 9,795 18,410 17,620 {6801 9,279 5,883 48,081 33.298 16801 At 31 Juty 2021 30,187 35,351 15,162 80,699 Carrying amount At 31 July 2021 28.570 20.319 14,255 63.144 At 31 July 2020 38,365 27.061 20,137 85.563 27 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 14 Charlty tanglble flxed assets Lèastrhold Improvemehts Plant and Flxturès and equlprne*t flttlngB Total Cost At 1 August 2020 Additlons Less di8po8&Is 58,757 25,822 5,091 11,0771 29,416 113,995 5,091 11,0771 Al 31 July 2021 58.757 29,836 29.416 118,009 Depreciation and impairmènt At l August 2020 DeFxe¢ialion charged in the yea¥ Le88 Dispos818 20,392 9.795 9,315 9,332 14131 9,279 5,883 38,986 25,010 14131 At 31 July 2021 30.187 18.234 15,162 63.583 Carrying amount At 31 July 2021 28,570 11,602 14,254 54,426 Al 31 July 2020 38,365 16.508 20.137 75,010 15 Charity fixed asset investments other Investments Cost or valuation At l August 2020 & 31 July 2021 1,377,962 Carryrrjg amount Al 31 July 2021 1,377.g62 Al 31 July 2020 1,377.962 2021 2020 Olh¢r investmants ¢omprls6'. Investinonts in subsidiaries 1,377,962 1,377,962 28 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 16 Flnanclal Instrument8 Gmup 2021 Group 2020 Charity 2021 Charity 2020 Carrylng amounl of financial assets Debt inslruments measured al amortised cost 320.592 264,998 54.631 74,83Q Carylng amount of financlal liabilities Measured at amorti8ed rost 429,103 324,667 352,664 259,222 q7 Debtors Amounts falling due wtthln one y&ar.' Group 202q Group 2020 Charlly 2021 Charlty 2020 Trad8 d8blors ArrK>unts owed by subsldlary Other debtors Prepayments and accrued Income 317,721 262,127 51,743 16 2,871 700,600 65,132 6.827 2,871 538,273 2,871 725.510 2,871 586,571 1,046,102 851,569 755,230 613,103 18 Credllors: amounts falllng due withln ona yéar Group 2021 Group 2020 Charlty 2021 Charlty 2020 othet taxation and soclal seeurity Trada cradltors Amounls owed to subsidiary Other creditors Aund was £301 k awarded to 71 inslilulions which will be Pdyiibte In Ihe lirsl quartgr of tha new flnanclal y88r. The ¢ylterS8 for grant funding is dellberalely wide In seope thc>uoh the malorlty of appli¢alions this year fell into thr8è m8ln Ihèm6S'. ICT H8rdware for disadvantag8d18arners. Sludenl wellbeing programmes. Innovalivo leaTning teohnology. namely around vlrtual reality. The Trustees and CPL Gyoup staff are proud of the contributK)n they can make to these causes. The Trusl¢es each work In educalional institutions which are rnembers of CPL and fherefore beneflt Irom ils servI￿s. Their institutions aw therefore ellqibla for orant funding. It is stated in the relatod party transactions that no trustees slt on the evaluation panel whirli r8Vi8ws and 8pproves funding applications and any grant funding paid will bè id8nt1fi6d and listed in the financial slatem8nls. Antsihèr popular prola¢t is tho subsidised lees for Ten81 on-domand servlces. Thls Is aimed al those institutions that may not normally access such a 89rvice. To date 57 InslilutSons have taken 8dvantao8 of Ihls servlce. Advanci ublished education and research in rOcur8m￿t rovldsd that all the useful resulis ol such res r¢ Crescent Learning Is tha banner undar whleh the charity fulfils ils charitable objedves In relation lo education and research aclSvllles. The charity continues lo fu￿1 its commltm6nt to advancing education Ihrou9h the funding of free PrL￿ureMOnt courses with 3 party prowders for rnemb8r st8ff. During the year 38 courses were funded covering subjects such as Writing a lender specification, Ethical procurement and supply. and Developing and managing contracts. 293 memb8rs have tsk8n orara in the process ot compleling a free e-leaming course comprfsing 5 modules, produced inhouse and covering the basics of pro¢uremenl wllhln an edu(xlional inslilulion. ThÈs course is CPD accredited and has received excellent reviews frorn participants. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 JUL Y 2021 Furth9r e4earning courses are ir> planning and will be IBunched in due course. Each course Is almed at 8dvancing the education of the learner. CPL Group conllnue lo EXQ￿de lull admlnistratlve and lèchnital support lo regional aY)d nallonal Procurement Advisory Groups IPAGI and a￿ maklng 51gnificant progress in sotting up and supporting similar groups specifically for Heads of Estates within educationa5 institutions. Th6sè groups provide an excellent forurn for rnembers to advance thèir educalion through the transfer of knowledg with peers from other educational establishments and provlde feedback on new fiameworks and procurement developments whilst enabllng productlvo fèedback orh curr8nl servic&s. CPL Group havo ￿ntInUed lo develop the FELP (Further Education Library of Procurement) which is a Ire8 to a￿8s8 online learning resource portal for all members. The research undertaken by CPL Group is published via th8 library in 8 variety ofdifferonl templates and adviGelguidance documents. To eomplimentthe library, 811 of th& CPL framework agroements have a comprehensivo user-guide wth embedded templates 8nd guid8rkc$ do¢um8nls to help the member utilise a framework wilh ease. Flnanclal and businèss rèvièw Group income for the year ended 31 July 2021 was £3,945.508 12020- £3,446,600). Ttie year-end Surplus beftme pension costs was £63,76912020.' £324,811 lossl. In respeet of thé yo8r and8d 31 July 2021 a gift aid payment of £267,015 {2020-. £181),0001 was rècelved from Tenat Education Sorwces ar￿ £7,316 {2020.' £11.73tl from Tenet Procurement Services. The charlty particlpates the West Yorksh1￿ Pension Fund (WYPFI wllh Tenet staff participatsng in the NEST penslon scheme. Th8 WYPF p8nsion scheme lia￿lity is ￿2.192,￿0{202o.. £2.425,0001 <1 reducbtjn of £233k. The m051 Tecenl fortnal aduarial valuabnn nf the scheme was undertaken In 2019. The Truslees have commllted additional year on year nployer contributions over the next 5 years. Income from marketlng premlums from framework usage has increased by £283k during the year despite conunual restrictions and a further llalional lockdowll. Frameworks which did not perform well due to lack of student numbers in schools and wlleges were compgnsaled by frdmeworks such as ICT Haidware and p6riph6rals brought aboul by an increase in home-schooling. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 17 frameworks are currently signposted by the Departmenl for Education {DfE}. Tenet incomo from procurement placements illcreased by £158k during the year while the on-demand tenderfng seNtce increased its incom8 by £107k. CPL Group has managed to maintain, if not improve upon a high level of service across all buslness areas during a challenglng 18 months. Durlng the year the Group moved lo a permanent agile working policy whiGh allows staff lo ch￿Se thelr placé of work within any customer contractual bOu￿darIeS. This has had a positiv8 effect on both pmduotivity and staff wellbeing. The company head offico in Salford remains partially occupled andls predomlnately used as a hub for collaborative working wlh teams a￿osS the Group. CPL Group Wds vory pleased to a¢hleve Great Place to WLxf(" accreditalion and 'Top 100 Great P￿ce lo Work for Women in May 2021 and have been advised 10 seek similar accredllation in relalion lo wellbeing. The year ended wilh the ratiremenl of P91er Br￿er on 31 July 2021. Petèr had baèn ths Managlng Director of CPL ince Its conceptlon. Peter has b66n replac&d by Darren Lowe, prewously the Managlng Dir8Ctorof Tèn6t. wl)o wvers both posilions. Thi5 is madc possible by Ihe strengthening of the senior managemelll team wlhin Tenet. Coronavirus The national lockdown of 2019120 had 8 direct impact on income with a reduction in framework usage and the Tonel 0￿demand tendpring sp.rvice. Th8 Group h8s sufficlent reserves and cash lo withstand events such as those though a more eaulious business plan was put in placo f(Y 2020121. This pioved prudeii( wilh further lockdowns and restrietions throughout the year. ThTesholds have been pul In place to ensure that should forecasted Income levels drop again. appropriate responses are triggered to ensure buslnsss conlinuily. The reserves policy is reviewEd annually as part of the ￿dget S8tttng process. Th6 pollcy1s based on retalnlng enough reserves lo cover slx months operational a¢,tivily in addition to pen8ion 118blllty, eommlltèd projects and desigfialod rosotV8s. Excess reserves ara reinvested into the education sector in fullllment of charitable objectlves. The Trustees h8ve (Secided that in the evw mors likoly event that a slmllar global pandemic could happen, then more reserves would be needed lo ensure that the Group can continue lo provide ils serth¢es whllsl mainlalnlng as many jobs as WSSIb￿ to ènable a basè for the subsequent recovery. The tM)licy has therefore been amonded lo move toward havlng 12~months of operational cover from 2022123 onwards. This will be brought in gradually with oover being Set at nlne-months for 2021D.J.. Lookln ahead CPL Group intends to continue its gTOWth overthè comSng years. A new vision and 5-year stralegy will be deVelo￿d during the year that detiirl how Ihe business will achieve I￿ aim of being th8 procurement setvicès partner of choice foT the education sectoi. Within Ihe strategy wll b& a new Social Value stralggy d9tailing how the Group wlll achieve financial, economic, enMronm8ft1al, and S￿[al and human sustainability. This will includ8 an aim lo achieve ISO 14001 accredttation wthin 3 years and go beyond net ￿rboTh emisslons (carbon offsetting). Further and sustained investment in staff wellbeing is a priority, with the majority of Ihe worklOr￿ working remotely. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 Post balaneè sh•èt evants Thore have been no events slnce the year-end that have had a slgnilicanl effect on the Charitys financial posilion. Equallty dlverslty and Incluslon Thè Charfty has, and contlnually tsappralses, a full and comprèh6nslv6 pollcy of dlverslty Incluslon and equal opportunltias. Health and safety The Trusttr¢s are aware tsf thelr r&sponslbllilles on all matters ralalinu lo health and safety. The ¢h8rfty has w¢pa￿d detailed health and safoty policies and proiqdes staff training and oducalion on health and safely matters. Further details are providod in this report undor Risk Managornonl and Compliance checks. Internal controls assurance Thè Trust8es are responsible for ensurinq that its business is conducted In accordance wlth the law and proper stsndard8, Ihal tho C.h2rity'8 A88et8 and Mnn?y are safeguarded and propArfy accnitntpd for, and that they ar? being US￿ economically. efficiently and effectively. A wde range of intemal control mèchanisms are in place and belng operated to help the compsny meet its strategic objectives, lo opfj¥ale wlhin th8 law, lo m8ke 9ff￿live use of the Charity's rroney ar￿ to Feport aclivi11gs 8ccifr8lely. The59 bring togglher information from all significant parts of the busines5 and provide assurance lo the Trustees that an effeclivo Systom of intornal controls 18 in place. The most 8ignllicanl Sou￿eS are Ihrough.. The external auditors. Flnanclal and non-flnancial performance mon¥toring and tnanagement. Appropri8te comtnunicotions structure8. Eff8clivg slrateqies, policies and procedures= and External stakeholders, including the Charity Comnwssiorj ané a¢creditaliov¥ ￿les. The main forms of Bssurance are.. erational controls Effective recruitment and selection processes are in place lo ensure suitable people are employed (including the complelion ol Disclogure and Barring Servlce LhgLkb for slaff worf(ing in educallov)al Inslilullo¥)sl with senlor managers responsible for ensurlng that standards of conduct and behavlour a￿ maintalned to the hlghest lev61s. Annual appraisals Ibas8d aroLJnd the Charity's visÈon and values) and hatf yaar Interlm ravi8WS, Wlth r￿￿lar learn and one lo one meetings und8rtaken to maintain high standards of perforrnance, and HR p*o¢esses ar8 in Pla￿ to address any gaps or failings. Formal polieAes and procedures are in place for both lin2ncial and operational actiwties. These indude (but are not exeluslve tol FlnancSal R&gulatlons, IT and Communleatlons Aceess Poli¢y, Group Conduct, Dal8 Piole¢lion Policy, Health and Safely Policy and Troasury Man8gom¢nl Policy. Appropriate separations of duties are in place across key opgralional fun¢tions &.g. purchase ordor pro¢e$s lo mitigate risks around fraud. Role based acces5 controls are Én place to ensure thal staff only have acce55 to Sy51em5 and data that 15 pertinent to their requlrementS. Flnandal foreeasts and budgèts 8r8 In plac8 whlch allow thè lÈadèrshlp team to monltor spénd t8rms ol achi8ving bU(￿etS in the short, medium and long term. CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Risk ma com llan￿ checks Significant work has been undertaken durfng 2020121 to update and improvd th¢ CPL Group rtsk reglster. Rlsks are eollaled under four main hoadings.. Financial, assets, prernises, H&S and charitsble status. Suppliers, pariners, competition, frameworks and all Group procu￿Ment services. Group op8ratlonal. legal and regulatory matters. Mernbership, eustomèrs, reputational issues and the marketplac8. The risk r8glst6r Is reported lo every Board moeling, supplemented by detalled rewews Ihroughout the yèar by th Group Le8d8rshlp T6am. The risk appetlle is reviewed during thls proeass. A r8nge of surveys are undortakgn of custorner satisfaction and employee satisfaction. in¢luding detsiled analysis of the vesulls thqlh actlons lakon lo addrcss areas of coneÈrn. There is appropiiate Independent ovarsight of cornplianc@ withlt) speclflc areas of the business such as Health & Safely and Data Prolo¢lion. CPL Group recently maintained Its oreen light rating in ils annual Health & Safely inspectlon wilh particular Ilonlion brotjght to ils pro¢e889% in relation to Covid-19. A Health and Safely Exo¢utive IHSEI spot check in MarGh 2021 on tha ¢omp8ny's covid-19 control m08sures In speclflc relation "lo Tenet staff ach18V8d recognition for going"8bove and beyon(r. CPI. Group w?rp aw2rd8d'Crèat Place to Work. ac￿ed11a¢10n and"Top 100 Great Place to Workforwomen n May 2021 and have been advised lo seek slmllar accredilatson in relation to wèllbÈing. CPL Group achieved Cyber Essentials Plus accredltation in July 2021. Internal controls assurartC8 coneluslon The Trust68S e8n take assurance that the CPL Group Is reacting appropriately lo tho ¢hallenges It is facing and has acted proactively to idEntify, Investigate and communlcate Issues and managemgnl a¢bons in an ac¢essSble. transparent manner. The Trubtees can confirrn that th8 CPL Group has suitable internal controls for maintalning adequate accounting olds, for 5aleguarding (he of the charity, and for ta￿ng roasonablo steps to prevent and delect fraud and olhcr iTregularllles. They also confimi that no we8knesses liave been ideniified frorn IhÈ extem81 audit wh￿h would have resulted in material mlsstatement or loss and which would have requlred disclosure in the finan¢ial statemènts. Annual general meeting The annual ganer￿ rne6tlt￿ wlll be held on 16 November 2021. The event will be onlina Mi(wsoft Teams. External audltor Haines Watt8 wore reappointed at Ihe 2020 AGM for a three-year period. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT {INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 st8t8ment of tho re8ponslbilities of the Board of Trustees In relatlon to the Flnanclal Statements Company IAW requ1￿5 th6 Trustees lo prepare financial st8tetnents for each fin8nCi81 year which give a Irue ar￿ falr view of th6 Statè of affalrs of thè eharlty at th8 ènd of th8 financial year and of its surplus or deficit for the linandal year. Th6 trust88s are Tequlr8d to: Seloct sullable accounting poliues and then apply them consistendy. Observe the methods and princAples in the Charities Statement of Recomm&nded Practicè {SORPI. Make judgements and estimates that ¥r¢ reasonable and pwdenl. Slate whether applicable UK accounting standards have been followed, subject lo any material departures disclosed and oxplainod in the finarKial statements,. and Prepare the financial stalements on tlie yuing Loncem basls unless it is Inappropriate to presum¢ that th8 charity will cont¢nue in business. The Trustees are responsiblè for kaèping propèr accounting iecords that disdose, wth reasonable a￿￿￿9¢y al any time, the linèncial positson of tha charity and to 8nable Ih8m 10 8nsurp that thg financial statements comply with the Cotnwdnies Act 2006. They are also r8sponsible for safeguarding the assets ol the charity and the group and henca taking reasonable steps for th& prevention and detection of fraud and other irregLJfarities. The Trustees are responsible for th9 main19nancg and integrity of the corporate flnancial Information included on the charitable company's website. Legislation in the United lfjngdom goveming the preparation and dissemination of th8 fin8ncÉal slatem8nts rnay differ from legislation in olherjurlsdlcuons. In so far as each Trustee is eware= Ther6 Is no relèv8nt audll Infomiation of which the Charity's auditors are unaware,. and Tha Board of Truste8s have taken all 8tep.% that it nught ta havp taken to makè itself aware of any audil information and to establish thal the auditors are aware of that information. This report of the Twstees was approved by the Board on 16 November 2021 and slgned on Its behalf by.. D N PLEII in, Chair of Trustees CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 JUL Y 2021 Oplnlon Wè have audited the financial statements of Crescent Purchasing Limited (the 'cha￿ty.} for Ihe year ended 31 July 2021 whleh comprise the statement ol financial a￿VIll¢s, the balance sheet, the statement of cash flows and the notes lo the financial statements-. Including signllkant accounting policies. The financtal reporting frsmawork that has been applied in their proparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard atplicable in the UK and Republic of Ireland" (United Kingdom GenerallyAccepted ACc￿nting Pract1￿). In our opinlon, the financial statements.. give a true and lair view ol the state of the charitable company's affalrs as al 31 July 2021 and of its incomlng resources and appllcatlon of resources, for the year then ended., have been properly prepared in accordance with United Kingdom Ggnar8lly A¢¢epled A¢crAJntlng Pradce. and havé been prepared in accordan￿ with th8 rsquiysments of the Companies Act 2006. Basis for opinlon We conducÉed our audit in av￿rdanc8 Wlth InlematlOll21 Stand8rds on ALJditing IUIQ {ISAs (UK)) and applicable law. Our responslbilltles under those standards are further dèscrlbÉd in thè Auditovs responsibilities for the audlt of the rinancial statements saetion of our re￿rt. We are independent of Ihs charity in aooordance with the ethical requirements that ar8 r￿&Vant to our audit of thefinancial statements in Ih@ UK, Including the FRC'S Ethlcal sta￿da￿d, and we hav? fuifillpd our ather ethical responsibilities in accordance wilh Ihoso rcquircmcnts. We believe that the audil ewdence we have obtained Is SLthcienl and approprtdte lo provide a basis for our opinion. Concluslons relatlng to going ¢on¢ern In 8udlllng the financial giatements, we have conduded that the auditor use ol th6 golng concern basis of accounting In tho wep8r8tlon of the financlal statements is apwopriale. Based on the wty* hav8 parfom6d, we have not identified any material uncortainlies relatlng to 8vents or Conditions that, individually or ￿lleCtively, may cast significant duubt Lin the charitls abilily lo continue as 8 going concèrn for a pericxl of at least Iwelve Months trom when Ihe financlal statements are authorised for issue. However. becaus8 1101811 futuré 8vènts or conditK)ns can be predicted, th18 8talemenl is not a guarantee as lo the company's ability to continue as a golng CO￿ern. The COVID-19 viral pandemic is one of the most signrfcant economic ev&nts for the UK with unpr8C8dènt6d1ovo1s of uncertainty of outcomes. It is Iherofore difficult lo evaluate 11 of th6 Potential ImplicatiorE on the CoMpan￿S tradts, customers, supplier and wider economy. Our responsibilities and the responslb]IIUas of the Irustees with respect lo golng concem are dos¢rfbed in the relevant sections of this report. Other infomiation The other informalion comprl8eS the Information included in the annLial report olher than the financial slalem&nls and our audllovs report thereon. The trustees are rasponsibl8 for thé othér Infomialion contained wqlhin the annual report. Our opillion on the firbanclal 5tatemgiilb does not Cover the oth8r Information and we do not express any form of . assurance cOr￿l￿S1o￿ Èhereon. Our responsibility is to rpad th8 Other information and, in dolng so. Consider whether the olhor information is materially inconslstenl wlth the financial stalements or our knowledge obtained in the course of Ihe audit, or olherwlse appears to be materially mlsst8led.lf we identify such material inconsistonoies or apparent [nate￿al mlsstatemBnts, we are required to déttermlne whether this gives rise to a materlal mlsstatement in the financial statements themsa￿&s. If, bas8d on the work we hav8 performod, we conclude that there is a material mlsstatemenl of this other information, w8 arè required to report that fact. We have nothlng to report in this regard. CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CRESCENT PURCHASING LIMITED atters on which we are required to report by exceptlon W6 hav8 nothlng to report in r8spect of th8 folk>wng mallers retalion lo whi¢h th9 Charities {Accounts and Reports) Règulallons 2008 requlre us to report to you if, in our opinion.. the information givèn in th8 financial st8t8m8nts is inconsist8nt in any matarial respect wilh Ihe Auditor report,. or sufficient accounting records have not beèn kept.. or Ihe finanelal statements are not In agreement with the 8c¢ounling records,. or we liave not ¥ocoived all tha information and explanalions we require for our audit. Responslbllltles of trustees As èxplained more ftjlly in th6 statem8nt of Auditor r8swnsibililie8. the trustees, who ar8 also the dIreCt￿S of the charity forthe purpose of company law, are responsible for the preparation of the financial slalemenls and for being satisfied that they give 2 true and fair wew, and for such internal control as the trustees delermlne Is necessary to ènable the preparation of financial statements that are free from malerial misstat8ment. whetherdue to fraud or error. In preparing the financial slalements. the trustees are responsible for ass85sing the charity's a￿litY to continue as a going concem, disclosing. as applieable, matters related to going eoncÈm And llglng tli& galng rnnr.prn basis of accounting unless the tTuslees either intend lo Ilquidale the charitable company or lo cease operations, or have no rgalistic alterllative but lo do so. Auditorfs responslbllltlos for th• audlt of tha flnanclal statèménts We have been appointod as auditor under 8eclioN 144 01 the Charities Act 2011 and report in accordance wth the Act and relevant regulations mado or havlng offecl ther8unofer. OUT objcclives arc lo obtain roasonablo assLFrance about whether the financial statements as a whole are free from material misstatement. whellier dug lo IrÉiud or errur, 12,425,000) Net assets 2,524,607 1,765,838 3,155,585 2,267,458 tncome funds Unrestricted funds- designated Unr8Stricted funds- gort8Fal Unrestrioted funds- pension 21 599,476 656,738 5gg,476 656,738 4.117,131 3.534,100 4,748,109 4,035,720 12,192,QOOI 12,425,000) 12,192,000) 12.425,0(KI} 2.524,607 1,785.838 3,155,585 2,267,458 12 CRESCENT PURCHASING LIMITED CONSOLIDATED BALANCE SHEET (CONTINUED) ASA T31 JULY2021 The eornpany is èntitled to the exemption from the audll requlrement conlaingd in section 477 of the Compani88 Act 2006, for the year ended 31 July 2021, although an audlt has been carrted out under se¢lion 144 of the Cha¥rfies Aol 2011. No member of tho company has deposited a notice, pursuant to Section 476, requiring an audit of these linancial stalemenls under the requirements of the Companies Act 2006. The Irusl888 acknowledge their respi)nsibilities for ensuring that the charity keeps accounting records vthich comply with seclion 386 of the Act and for preparing fi'nanclal statèmÈnts whlch give a true and fair wew of the state of affairs of the company a5 al the end of the finan¢i31 yaar and of ils incoming resourcèg and application of r8sourc6s. including its in¢omo and cxpendlttsre, for the linaneial year in accordance with the requirements of sg¢lions 394 and 395 and which othgW4ise ¢omply with th8 r8qulrements of th6 Companies Act 2006 relating lo fi'nancial sta18m8nts, so far as applicable to the company. These financial slalements have been prepared in accordanco wllh the provisions applicable to companies subject to the small companles regime. The financlal slatemenls were approved by the Trustees on 16 Novembér 2021 D N Pulleln Chalr of Twstees Comp8ny Reglstration No. 06774578 13 CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JUL Y 2021 2021 2020 Notes Cash flows from operallng actlvltle8 Cash generated from operations 493.706 460,022 Investing activitles Purchase of tangible fixed assets sale olfixed a88els Interest received 120,8271 1,447 9,077 {105.4151 15.658 Net cash usgd In Investlng activiiles 110.3031 {89.7571 Nat cash uséd In flnanclng actlvltles Nel increasel(deereasel in cash and cash equivalents 483,403 370,265 Cash and cash equlvalenis at beglnnlng of year 3,352,873 2,982,608 Cash and cash equivalents at end of year 3,836,276 3,352.873 14 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JUL Y 2021 Accounting pollelès Charlty Infomiation Crescent Purchasing Ltmi16d is 8 private company limited by guarantee incorpordled in England and Wales. The registered office Is Procur&mtsnt House, Lesltsy Hough Way. Salford, M6 8AJ. The Crescent Group Consists of Crescanl Purchasing Limited, Tenet Educatlon S8DAcos Limit6d and TÉn$l Procuiernent Services Limited. 1.1 Accountlng conventlon Thg ¢ha17ty wnstltutes a publlc b8neftt entity as d81ined by FRS f02. The financial stat8m8nts have been prepared in accordance with Accounting and R8POrting by Ch8rtlies'. Statement of Recommended Practic applicable to ¢hariti?8 pr@paring thgir arcounts accordance with the Financial Reporting Standard 8pplSeable In the UK and Republic of Ireland issued in October 2019, Ihfj Financial Reporting Standard applieablè In thè Unlt6d Kit)gdom and Republic of Ireland IFRS 1021, the Chari11gs AGI 2011 and Ihg Companies Act 21J06 and UK Génèrally Aceèpt8d Accounting PrACtice. The flnancial stat&mants arp. pr&pargd in 8tgrllng, whlch Is thé functlonal currency of the charfty. Monetary amounts In these flnancl81 stat6mentS Bre rounded to the nearest £. The financial stat8ments have been prepared under the historical cD81 ￿nVention. The principal aw)unlillg Iicio8 adoptAd s8t out b610w. The chadly Is a qu8llfylng enlity forthe purposes of FRS1D2 and tho Charity SORP, belng a Member of a gr￿Jp where the parènt of that group pr￿areS publicfy available consolidated financial slat8rnents which are intended lo gi￿. a tru8 and fair view {of th6 assets, liBbililies. finRncial position and profil or loss} and that m9mber 18 included in the consolidallon. The charity has therefore taken the advaniage of exemptions from the followng disclosure requirements for paronl company infortnation presented wllhln the consolidaled ffinancial slalèments.. S8ction 7 °Sta18m8nt of Cash Flows" dlsclosures Sèctlon 33"Related Party Disclosures". Compensallon for key manaoement personnel. Presentation of a statomenl of cash flgw and related notes 1.2 Golng concern At the time of approving the financlal ststements. the trustees have a reasonablg exp8¢tation that th8 chatity has adequate resources to continue in operational existen￿ for the foreseeable future. Thus the Irusl8es continue lo adopt the going concem basis of 8¢counting in pieparing the financial stalements. 1.3 Charltabl8 funds Unrestiicted funds are available for use at the discretlon of the trust66s in furtherance of their charitable objectives unless the funds have boen designated for other purposes. Resirfcted lunds are subject ILb specific condFbons by donors as to how they may ￿ used. The purposes and ses of the restrided funds are set out in (he notes lo the financial stattsments. Endowmentfunds are subject to specific conditions by don(Ks Ihallhe capit81 must be malntalt)ed by the charity. 1.4 Incoming resources Income is r8009nised when tho charity is I￿alty entitled to it after any perfomiance conditions have been met, Ihe amounts can be measured reliabty, and It is probable that income will be received. 15 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Accountlng pollcies Cash donations are recognised on receipt. Other donabons are recognised once Ihe ¢harlEy has been notilled of the donation, unless performance conditions require delerrdl of Ihe (?mount. Income lax recoverable In relation lo donations received under Gift Aid or deeds of covenant Is recognis8d at the tlme ol the donation, Legacies are reccyJnised on receipt or othenmse il the charÉty has béen notifièd of an impènding dlstributli)n, the a￿￿Unt is known, Ènd receipt is expected. Ef the amotjnt is not known, the legacy is treated as a contingent asset. Interest on funds hold on deposit is InGluded when receivable and the amount can be t¥teasured reliabty by the charity, this is nomially upon nolilicalion of tho interest paid or payable by the bank. 1.5 Re$ourcès axpènd•d Expenditure is induded vAthin the Statement of Financial Aclivilies on an accrua18 basis. Irrecoverable VAT has ￿en charged as a cost against the activity in which the expendilure was incurred. All expenditure is solely for the purpose ol achieving the charities objectives and has bBen dlsdosed wilhin Ihose cost categorles. Governance costs are recognised when, and lo the exlenl Ihal, the chartly ¢an Idenllfy aetivittes In whi¢h are associated with the general running of the charity, as opposed lo being directly assoGiated with its charitable aetivilies, Support costs are rèctsgnisèd whèn th6 charily can identify centralised seNces that beneflt all areas of the charIl￿S operations. 1.8 Intanglble flxed assets- goothwlll Goodwill represents the excess of the cost of aequlslllon of unlncorporated businesses over the fair value of not assols acquired. It Is Inltlally r￿gnised as an asset at eost and is subsequently rneasured at cost less accumulateé amort*sation and accurllulat8d Impairm8nt Ioss8s. Goodwill shall be considered to have a finite useful lrfe, and shall be amortised on a systgmalic basis over ils Ilfo. 1.7 Intsngible fixed a$$¢t$ other than goodwlll Intangible assets acquired separately from a business ar& reGoJnised al cost and aye subsequently tneasured 81 Cost less acwmulated amortisation and accumulated Impalrment losses. Inlanqible assets acquir8d on busill8ss comblnatlons arè rtrcognlsed separatelyfrom goodwill atthe acquisition date whpr&. it 18 prahabl8 that the exp8ct8d future économlc benefits that are attributable lo the asset will flow to th8 antity and the cost or value of the asset can be measured rellably. Amortisalion Is recognised so as lo write off the cost or valualic>n of a55ets less Ihelr residual values over ihelr selul lives on the following bases.. Customer wlallonships Brand Over 8 years Over 8 ygars 16 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Accountlng pollcles 1.8 Tangible fixed assets Tangible fixed assets are initially measured al cost and subsequently measured al Gost or valEEation, nel of deprecialion and any impairment losses. Depredation is recognlsed so as to wtile off the Cost or valuation of ass8ls19s8 their residual values over their expected useful lives on Ihe following bases.. Leasehold Improvements Plant and equipment Fixtures and fillings Ov8r the life of the leas8 Between 3 and 6 years Ov&r 5 years Th8 gain or loss arising on th8 di8ptF881 of an asset is determined as the differen¢p between the sale procèed5 and the caryino value of the asset. and is recounlsed In net Incom61{expendlturel for th6 yaar. 1.9 Impalrment of flxed assets At each r8￿rtI￿ 8nd dat8, th8 charity r&views th& carrying arnounls of its tangible and intangible assets lo dol•rmine whpther th?re 18 any indiration that Ih(kqp assets have 8ufferpd an impairment loss. If any such indication exists. the recoverable amount of the asset is estimated in order to determine th6 extent of thè impaimienl loss lif any). Intangible a88ets with indefinite useful lives arKI intangible as8els not yet available for use are 1gst8d for impairrnenl annually, and wh8ngvgrther8 is an indication that the asset rnay be impaired. 1.10 Fl¥ed asset Investments Flxed asset Investments are Inltlally measL4red at cost and subseouenlly measured at C05l le58 any accumulated impalrtnent losses. The Investments are 8ssess8d for Impalment at each reporllng date and any lrnpaÉrm8llt108S8s or r8V8rsals of impairment losses are recagnis8d immediately in n8t incom&llgxpendilurel for the year. 1.11 Cash and ¢•$h equlvalents Cash and cash equivalents include cash in hand. deposits held at call with banks. other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in curtent liabililies. 1.12 Fihanclxl Instruments The charity has elected to apply the provisions of Section f1 '8asic Financial Instruments. and Section 12 'Other Financial Instruments Issues, of FRS 102 to 81101 its finaneAal instruments. Financial inslrumgnls are recognised in the charity's balance sheet when the charity becomes party to the conlraclual wovisions Of the instrument. Flnan¢ial assets and Ilabilllies are offset, wlth th6 net emounts presented thLI flnan¢lal statements, when there is a legally enforceable right to sel off th9 recognised amounls and there is an intention lo settle on a n8t ba818 or lo realise the asset and sellle the liability simullan¢ously. Baslc financl818S5ets Basic financial assets. which include debtors and cash ar￿ bank balances. are initially measured at transaction price induding Iransaclion costs and are subsequently carried al amortised cost using the effective int6re8t mèthod unlass tha 8rrang8mènt ￿nstItUt&S a flnanclng transactiori. wher6 Ihè transaetlon Ss mèasur8d at th8 pr6sent value of the futur8 r8c8lpls dtscount6d at a m8rk6l r8t6 of int8r8St. Finandal ass8ts classified as receivabl8 within one year are not amothsed. 17 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED> FOR THE YEAR ENDED 31 JUL Y 2021 Accounting policiès 8aslc flnanclal Ilahlllt18S tjasic financial liabilities, including Creditors end bank laans ar8 initially rècognised 8t transaction price unless the arrangement constitutes a financing transaction, where the debt Instrument Is measured at the present Wdluè of thè future payments discounted al a marf(et rale of interesl. Financial liabilitie5 classified as pa￿ble within one y8ar are not 8mortised. Debt Instrumenls are subsequently carried at amortised co81, using thé 8ff8ctlve Interesl rate method. Tradè crèditors are obligations to pay for goods or ServI￿S that have been acquired in the ordinary course of operallons from suppliers. AtTruunts payable are cldSSilied as Lurrenl liabilities if payment is due within one y8ar or less. If not, they are presented as llon-currenl liabilities. Trade creditors are recognised initially at transaction prlce and subsequentty measured al gmortised cost usÈng th8 8ffedv6 Interest method. Derècognltlon of financlal liabilities Financial liabiliti88 are ￿er8￿gnIsed when the charitys contractual obllgallons expire or are discharged or cancelled. 1.13 Employee benefits The cost of any unused holiday entitlem8nl is recogni$8d sn th8 p8ri0d whleh the èmployee's servlces are received. Termination bon¢llts ar¢ re¢ognSsed IM￿￿dIatelY as an expense when the charity 18 demonstrably ¢i¥nmitt8d lo temiinate the employment of an omptoyeo or Its provide lerminatlon beneflls. 1.14 Retlrement bener Paym8nts lo d￿Ined contribution retirement benefit schemes are charged as an oxp¢nsa as they fall due. The cost of prowding b8n8fit8 defir¥ed benefil plans 18 deterrnined $8parately lor E8ch plan using the projected unll credlt method. and Is based on a¢tuarlal advice. The chanqe ift thè nat dèfined benefit liability arising from employee service during the year is re￿gnised an employee cost. The cost of plan introdu¢tions. bentsfit ¢hanges, settlements and curtailments are rocognised as incufred. The net interest elemenl is determined by multiplying the nel defined ben8fil Ilèbility byfh6 discount rate. taking into account any changes in Ihe net defined benefit liability diiring thg pgriod as 8 result Of ¢ontribudon and benefit paym8nls. Thè nat Intèr8St is recognised in ineomellexpenditurel forthe year. Re-MeaSu￿rnent changes comprise actuarial gains and losses, the effect of Ihe asset celling and Ihè return on the net defined benefit liability excluding amounts included in netinl&resl. Th8s8 ar8 rècognised immediately In other recognised gains and tosses In Ihe per1(￿ in which they Dccur and 2r8 riot reclassified to incomellexpenditurel In subsequent pe¥lods. The nel defined benefit penslun asset or Ilabillly In the balance sheet comprises the total for each plan of the present value ol th9 d8lined b8nèflt obllostlon luslng a dlscounl rate based on high qualily corpoiale bonds), le55 the fair value of plan a￿etS out of which the obligations are to be settled directly. Fair value is based on Market price information. and in the case of quoted securities is the published bid prf¢e. The value of a net P8nslon b8neflt asset is limited to the amount that may be recover8d ellh8r through reduced contributions or agrèed rèfunds from the scheme. CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Aceountlng policles 1.15 Basis of consolldation In the parent company financial statements, the cost ol a bLJsiness comblnalion is the fair value al the acquisitior¢ date of the assats gi￿n, oquily Inslruments Issued at)d Ilabilities incurred or assum8d, plus costs directly attributable to the busin&ss combination. The excess of the cost of a business combinalion Ovèr the fair value of the identifiable assets. liabilities and contingent liabillties aequlred is recognised as good￿￿11, The ¢tssl of the eomblnalion Includes the estimated amount of contlnqénl conslderation that is probable and can be measured reliably. ar￿ is adjusted for changes in contingent ¢on.%idpratian after the 8cqulsition date. Provisional lair values recognis(Ml for business comblnations In the prevlous periods are 8djusled ret105peclively lor findl falr values d&leriMined in the 12 months follo￿n9 the acquisition date. Investments in subsidiaries, lolnt ventures and associatos are accounted for 81 cost ￿$8 Impairi￿nl. The consolidalgd financial $lalerngnts ineorpDr2te tliose of Crescent Purchasing Limited and all of its subsidiaries li& entities Ihal the group controls through lis power (o govem the finanetsal and opgrating poliaes so as to obtain economic benelilsl. Subsidiarics acquircd during the year are eonsolldated using the purchase method. Their r8suIts are in¢orywrated from the date that control pass8S. All financial statements ar8 mad8 UP to 31 July 2021. Where appropriate, adjuslmonts ar¢ rnade to fhe Ilnancl81 statements of subsidiaries lo br*ng tho accounbng policies used In Ilna wilh those used by other mèmbèrs of the group. All inlra-group transactlons, balances and unrealised gains on transactions b8tWoen 9roup companies are ellminaled ori ¢orig0(idation. Unreallséd losses are also eliminated unless the transaction provide5 ewdence of an Impaimienl of the as8el tran￿f9rr9d. Tenet Education Serd¢es Llmlted and Tenal Pro¢urarnent Services hav8 b86n included in the uroup flnancial statements using the purchase method ofaccounling. Acrordingly, th8 group st8tementof finanaal activllies and slalom¢nl of cash flows Include the resulis and cash flows of T8nel Education Services Ltmited and Tenet Procurgrnenl Semces Llmltèd. Critlcal aecountlng estimates and ludgements In the application of the ¢h8rlty's accounting poliues, the trustees are requlred to make judgements. estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assoclafed assumptions are based on historical cxporicncc and ofhèr fxclors that are considered lo be relevant. Actual rosults rnay differ (rom these estimates. The eslimales and underl)ing 858UtnpUons are ￿vieWed on an ongoing basis. R¢vlsions to a¢eoLJnting esllmales are rocogniscd in the pcricxl in whlch the eS￿Mate is revised where the rovislon affects only that period. or Sn the period of lh& revision and fukn%ré payiods where the revision affects both current and fulure peiiods. During the current or preceding financial 5talements, no critical judgements or &stimat88 W8rè usad in the preparation of these financAal slatsmenl8. Charltable acllvltl85 Group 2021 Group 2020 Charlly 2021 Charlty 2020 Marketing premlums Services r&ndered othew inwme 2.058.857 1,864,370 5,490 1,775,807 1,599,841 18,538 2,055,067 1,775.807 182,466 117.175 3.928,717 3.394,186 2,237,533 1,892,g82 19 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 Investments 2021 2020 Interest recelvable 9,077 15.658 All of the GroLJP'S Investment Incorne of £9.07712020'. £15,658) arlses In Crèscanl Pur¢h8slng Llmiled from money held In fi￿te￿t bearing doposit acwunts. Other Income 2021 2020 Coron8virLts lob rétèntlon schame 7,714 36.756 20 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Charltsbl8 activities Group 2021 Group 2020 CharSty 2021 Charity 2020 Staff costs Occupancy costs Telèphonè Postage and stationery Insuran Legal costs Travel costs Recruitment and training Marketing and adv&rtising Crescent leaming Procttremenl partner and member shared Incomtt 2.697.114 69.676 24.856 5,234 38.225 314 11.954 47,912 32,109 4,165 2,324,940 88,783 23,443 5,965 34.1fj5 6,380 72,192 30,787 50,343 20,943 1,253,009 69,676 16,036 3,221 38.225 314 499 37,637 24.165 4,165 1,044,654 68.783 15,976 4,305 24,121 2,120 18.587 16.309 15,837 20,943 10,529 11.581 125,6161 2,971 18,818 43,127 12,275 34.140 23.410 2.486 23.405 36,567 103,351 6.391 125,6161 1,839 16,363 32,253 168,408 4.600 25.574 1,351 12.718 22,263 Consultancy f888 Provision fix bad dabts Bank charges Other expenditure ICT ¢osls 2,992,969 2,770,154 1,581,528 1.466,549 Grant Funding A¢livities {se8 notg 7} 68,133 325,477 68,133 325,477 Share of support ¢osts (see note 81 Shara of gov6manee (￿St$ (see noie 81 797,840 22,797 653,781 21,999 664,552 15,103 522,934 15,479 3,881.739 3,771.411 2,329.316 2,330,439 Analysis by fund Unrp8lrirtpd funds- g@neral Unrastricted funds- d8Slgn2t8d 3.813.606 68.133 3,445.933 325,477 2.261,183 68,133 2.004,962 325.477 3.881,739 3.771,411 2,329,316 2,330,439 21 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED> FOR THE YEAR ENDED 31 JUL Y 2021 Grants payasjle Reinveslrnent acltvities payable into Ihe education sector Is expendilLEre made frt)m tha charity's designal8d funds toward agreed PTojects detalled In thè Trustees report and note 21. This expendiiure falls outsid8 of standard operation81 costs and may lead to deficits in some years. The operational sulplus that would have begn slated had this Tolnvo$lm¢nl into the sector not happened Is stated. Group Group Charlty Charlty 2021 2020 2021 2020 Net Income for the year Expendltura from deslunated funds 63,769 68,133 1324,811} 325,477 193,127 68,133 1208,2731 325,477 Operational surplus 131,902 666 261,260 117,204 Group Support costs Support Governancè costs costs 2021 2020 8•$l$ of allocatlon Staff costs D8preciation and amortisalion 625,849 625.849 497,771 Admtnislralion Support 171.991 171,991 10,425 5,483 6,889 156,010 12,875 Governancè 3.884 Govemance 5.240 Govérn8nc6 Audll lees Legal and professional Accountlng s6rvi¢es 10,425 5,483 6.889 797,840 22,797 820.637 675,780 Analysed between Charitable activities 797,840 22,797 820,637 675,780 Govemance wsts includes paym8nts to th8 8udllors 01 £10,42512020.' £12,875) for audit fees. Charity Support Governance 2021 2020 Basls of alEo¢ation cost5 costs Staff costs Depreciation and amortisation 625,849 625,849 497.771 Support Support 38,703 38,703 6,925 4.982 3,196 25,163 7,725 Governancg 3,884 Governance 3.870 Governance Audlt f8es Legal and professional Accounting services 6,925 4,982 3,196 664,552 15,103 679,655 538,413 Analysed between Charitable activities 664,552 15,103 679.655 538,413 Govemance costs Includes payments to th9 auditors of £6,92512020.. £7,725) for audit lèas. 22 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 Net movement In funds Group 2021 Group 2020 Charlty 2021 Charity 2020 Net movement in funds is stated after oharuingl{eredilingl Fees payable to the companls auditor for the 2udit of the company's financial statements Depreciatson of owntsd langlbla fixed a$s¢ts Amortisation of intangible assets 10,425 33,298 138,693 12.875 31,010 127.489 6,925 25,010 13,693 7,725 25,163 2,489 10 TruSt￿S None of the trustees (or any persons ¢onnecled wllh them), excepl for the Managing Direck)r. received any remuneration during the year, no Irusts@S W8r8 r8imbursed travelltng expenses In the yeBr12J20'. £1,768). Please se& note 11 for further disck)sure of remuneration and key management personnel. 11 Employees Number of employ8èS The average monthly number ￿TrplaYees during the yearwas.. Group 2021 Numbor Group 2020 Number Charity 2021 Number Charlty 2020 Numbgr Prolesslonal and admlnlstratlve stsff 66 65 31 33 Employment costs 2021 2020 2021 2020 Wag8s and salaries Social s8curlty costs Other p6nsion costs 2,455.395 254.732 612,836 2,166.494 220,395 435,823 1.189,970 122,947 565.941 1,044,729 106,284 391,412 3,322,963 2.822.712 1.878,858 1.542.425 Included wllhln other penslon costs are current senric8 Costs and associ8t8d Int8r8st 8XP8ns8 d8fin8d benellt penslon plans. Durfng the year, the company recognised currenl service costs and Interest expenses from deflned b9neflt P9nsion plans of £462,OOQ12020.' £312.0001. Included within support costs are wages to the value of £625,849 for the Human Resourres, Financg, Marketing and IT departments through vlrtue of shared service lo all of the charilable a(aiwli&s. 23 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 11 Employeès Icontinuedl The number of empkyees whose annual remunerauon was £6Q,000 or more Wore.. Group 2021 Numb•r Group 2020 Numbèr Charity 2021 Number Charity 2020 Number Directors Employees Peter Brewer (Managing Di¥ectorl is the only key management personngl associated with the direct running of the charity. Peter Brewer was paid total remune¥ation of £111.72212020= £110,958). The Yomuneralion for Peter Brewer was provided in his capacity of Managing Director of the charilable activities and not in his capacity of trustee of thg Gharily. Included withln tolal remvneratlon were pension contributions totalling £8.73912020= £7,824). Peter Br9Wgr relired from his position as mgnaging director on 31 July 2021. 12 Taxation Thè charity Is exempt from tax on Income and gains falling withln sectlon 505 of th& taxes act 1988 or 8ectlon 252 of the Taxation of Chargg&ble Gairbs Act 1992 lo the extenl that these are applled lo it9 charSlable objects. 13 Group intangible fixed assets Goadwlll Customer rèl#tlollshlps Brand Total Cost At 1 August 2020 and 31 July 2021 1.804,474 69,003 366,523 2.240.000 Amortlsallon and Impalmient At 1 August 2020 AMOr￿Sa￿0n eharged for the year 1,532,236 70,000 34,504 8,750 183,260 46,250 1,750,000 125,000 Al 31 July 2021 1,602,236 43,254 229.510 1.875,000 Carrylng amount At 31 July 2021 202,238 25,749 137.013 385,000 At 31 July 2020 272,238 34.4 183,263 49Q,000 24 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 13 Charity Intangible fixed assets Goodwlll Cosl Al 1 August 2020 and 31 July 2021 1,250,C¢OO Amortlsatlon and Impalrment Al 1 August 2020 1,250.000 Amorbsation ¢hsrged forthe year Al 31 July 2021 1.2￿.000 Carrylng amount Al 31 July 2021 At 31 July 2020 13a Group other intangible fixed assets Customer Relatlonshlp Managemont System Cloud based seNer Total C¢$1 At l August 20201 ro-s18l¢dl Addillons 80,492 80.492 8.500 8.500 At 31 July 2021 80,492 8,500 88.992 Amortlsation and ImpaSrm8nt At 1 August 2020 Amortisalion charged in the year 2,489 13,410 2,489 13,693 283 Al 31 July 2021 15,899 283 16,182 Carrying amount At 31 July 2021 64,593 8.217 72,810 Al 31 July 2020 78,(￿3 78,003 25 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2021 13b Chartty Intanglble flxed assets Customer Relationshlp Management Systèm Cloud based server Total Cost Al l August 2020 ( re -Staledl AddStlons 80,492 80,492 8,5QK) 8.500 Al 31 July 2021 80,492 8.500 88,992 Amortlsatlon Impalrm$nl At 1 August 2020 Amortisation charged in the year 2.489 13,410 2,489 13,693 283 At 31 July 2021 15,899 283 16,182 Carrying amount At 31 July 2021 64,593 8,217 72,810 At 31 July 2020 78,003 78,003 26 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 14 Group tanuible fixed assets Leasehold Improv¢menf¥ Plant and FIKture$ 8nd equipment ritlithgs Total Cost Al 1 August 2020 Additions Less Di8posals 58,757 45,470 12,827 12,127 29,417 133.643 12,327 12.127 At 31 July 2021 58,757 55,670 29,417 143,843 Dapreclatlon and Impalrment At 1 August 2L120 Depreciation charged in the ygar Less di8pos818 20,392 9,795 18,410 17,620 {6801 9,279 5,883 48,081 33.298 16801 At 31 Juty 2021 30,187 35,351 15,162 80,699 Carrying amount At 31 July 2021 28.570 20.319 14,255 63.144 At 31 July 2020 38,365 27.061 20,137 85.563 27 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2021 14 Charlty tanglble flxed assets Lèastrhold Improvemehts Plant and Flxturès and equlprne*t flttlngB Total Cost At 1 August 2020 Additlons Less di8po8&Is 58,757 25,822 5,091 11,0771 29,416 113,995 5,091 11,0771 Al 31 July 2021 58.757 29,836 29.416 118,009 Depreciation and impairmènt At l August 2020 DeFxe¢ialion charged in the yea¥ Le88 Dispos818 20,392 9.795 9,315 9,332 14131 9,279 5,883 38,986 25,010 14131 At 31 July 2021 30.187 18.234 15,162 63.583 Carrying amount At 31 July 2021 28,570 11,602 14,254 54,426 Al 31 July 2020 38,365 16.508 20.137 75,010 15 Charity fixed asset investments other Investments Cost or valuation At l August 2020 & 31 July 2021 1,377,962 Carryrrjg amount Al 31 July 2021 1,377.g62 Al 31 July 2020 1,377.962 2021 2020 Olh¢r investmants ¢omprls6'. Investinonts in subsidiaries 1,377,962 1,377,962 28 CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2021 16 Flnanclal Instrument8 Gmup 2021 Group 2020 Charity 2021 Charity 2020 Carrylng amounl of financial assets Debt inslruments measured al amortised cost 320.592 264,998 54.631 74,83Q Carylng amount of financlal liabilities Measured at amorti8ed rost 429,103 324,667 352,664 259,222 q7 Debtors Amounts falling due wtthln one y&ar.' Group 202q Group 2020 Charlly 2021 Charlty 2020 Trad8 d8blors ArrK>unts owed by subsldlary Other debtors Prepayments and accrued Income 317,721 262,127 51,743 16 2,871 700,600 65,132 6.827 2,871 538,273 2,871 725.510 2,871 586,571 1,046,102 851,569 755,230 613,103 18 Credllors: amounts falllng due withln ona yéar Group 2021 Group 2020 Charlty 2021 Charlty 2020 othet taxation and soclal seeurity Trada cradltors Amounls owed to subsidiary Other creditors ACorporation tax advisory, compliance and
submission services|Internally the accounts are reviewed by a separate individual from those who have prepared the financial
statements. The accounts are reviewed in full by those charged by governance of the charity to ensure
compliance with the Charities Act 2011. Any accounting judgements required are made by the audit
client.
This service is provided by a separate individual from those who have audited the financial statements.| Haines Watts charged £10,425 for completion of the statutory audit of the group. To maintain our independence as auditors we can also confirm that: - Haines Watts, its partners and the audit team have no family, financial, employment, investment or business relationship with the company; and - Audit and non-audit fees paid by the company do not represent a significant proportion of total fee income for either the firm or office. We confirm that, in our professional judgement, the firm is independent within the meaning of regulatory and professional requirements and the objectivity of the audit engagement partner and audit staff is not impaired. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 Legal and regulatory requirements In undertaking our audit work we considered compliance with the following legal and regulatory requirements, where relevant: - Companies Act 2006. - Charities Act 2011. - Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017. - Statement of Recommended Practice, Accounting and Reporting by Charities (FRS 102). - Applicable accounting standards. - 2.2 Audit approach and materiality Our audit planning has taken account of the issues highlighted through discussions with David Owen, together with our knowledge and understanding of the charitable group. We confirm that there were no restrictions on the scope of our audit procedures and we have been able to undertake our work as set out in our planning meeting. In our planning we have taken account of the results of our risk assessments made in accordance with the guidance set by the ISAs. Our consideration of high risk areas is documented in full within section 3 of this report. Based on this rigorous process we have used our professional judgement and formed a materiality level. A matter is material if its omission or misstatement would reasonably influence the economic decisions of a user of the financial statements and the value at which if errors, on their own or in aggregate, were uncorrected would result in a potential qualified audit opinion. The audit materiality of the financial statements as a whole has been set at approximately 1% of total incoming resources. We have considered this level of materiality based on the draft accounts for the year ended 31 July 2021 and are satisfied that it continues to be appropriate. Underpinning materiality is a level of triviality, £1,000, at which any error or omission in excess of this value is recorded and reported to management. In planning and carrying out our work, we applied a group materiality level to the Charitable Group of £45,000 based on 1% of income. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 - 2.3 Accounting policies In preparing the financial statements of the charitable group, directors/trustees are required under FRS 102 to review the charitable group’s accounting policies on an annual basis to ensure they remain appropriate to the charitable group’s circumstances and are properly applied. We have reviewed the accounting policies selected and operated by the charitable group, and are satisfied that they are acceptable. - 2.4 Significant findings There were no significant findings made during the audit procedures. - 2.5 Accounting estimates and judgements Depreciation is provided on a straight line basis on the cost of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives. The principal annual rates used were as follows: ||Leasehold Improvements
6 years straight line| |---|---| ||Plant and equipment
3 years straight line| ||Fixtures, fittings & equipment
5 years straight line| ||| ||| Local Government Pension Scheme - the charity’s share of the LGPS assets is measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis using the projected unit method. The net of these two figures is recognised as an asset or liability on the balance sheet. Any movement in the asset or liability between balance sheet dates is reflected in the statement of financial activities. Details of the major assumptions used by the actuary in its calculation are shown in note 16 to the financial statements. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 ## 2.6 Funding position at 31 July 2021 Unrestricted funds are funds to which the governing body may use in the pursuance of the charity’s objectives and are expendable at the discretion of the trustees. The balance carried forward on this fund is £2,524,607. Of these funds £599,476 has been designated for certain charitable objectives. Individually, the general reserves carried forward in Crescent Purchasing Limited, Tenet Education Services Limited and Tenet Procurement Services Limited is £3,155,585, £371,609 and £10,376 respectively. Following consolidation journals of £1,012,963 this brings the group general reserve balance to £2,524,607. - 2.7 Reconciliation of audited surplus/deficit The surplus/(deficit) per the financial statements has been derived as follows: |Surplus/(deficit) per the trial balance
Surplus/(deficit) per the financial statements|**Crescent**
**Group**
758,769
758,769|**Tenet**
**Tenet**
**Crescent**
**Education**
**Procurement**
888,127
(4,733)
376| |---|---|---| |||888,127
(4,733)
376| There are £2,225 uncorrected errors detailed on A27. - 2.8 Significant difficulties encountered during the audit We did not encounter any significant difficulties during the audit. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 - 2.9 Accounting and financial control systems During our audit we examined the design and implementation of the internal controls relevant to the accounting systems and procedures. The review of internal controls was carried out with a view to expressing an opinion on the financial statements for the year and was not directed primarily towards discovering weaknesses or towards the detection of fraud. Therefore our comments on these systems include only those matters that have come to our attention as a result of our normal audit procedures, and consequently our comments should not be regarded as a comprehensive record of all weaknesses that may exist or of all improvements that might be made. Please refer to section 4 of this report. ## 2.10 Management representations We include a copy of the draft management representation letter. There are certain specific representations which we are required by auditing standards to obtain from management as part of our audit procedures. In addition, we are required to obtain other representations on matters material to the financial statements where other sufficient appropriate audit evidence cannot be reasonably expected to exist. - 2.11 Audit opinion Based upon the findings and conclusions of our work, we expect to issue an unmodified audit opinion on the financial statements. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 ## **3. High risk audit areas** |Issue|Audit risk|Auditprocedures undertaken|Conclusion| |---|---|---|---| |Revenue Recognition|Under/overstatement of
revenues due to the unique
nature of market premium
recognition, and the large
accrued income figure
recognised in the year.|We reviewed the systems and controls
associated with the recognition of revenue for
the Group.
A sample of income was tested from source
documentation through to the final accounts.|Correct income recognition
criteria met, with no material
under/overstatement of
revenues.| |FRS 102 Accounting for Pensions
Treatment of the charity’s share of
pension scheme assets and deficits|Incorrect treatment of the
pension valuation.
Financial statements are not
prepared in accordance with
appropriate accounting
standards.|We obtained the FRS 102 pension valuation as
at 31 July 2019 and assessed the disclosures
and accounting entries made by the charity.
We confirmed that the basis of valuation was
appropriate and that the disclosures made in the
financial statements were prepared in
accordance with FRS 102.|Profit or loss impact was
correctly recognised,
disclosure in financial
statements was amended
accordingly.| |Intangible Assets|Recognition of Intangible
Assets (including goodwill)
and the application of
appropriate accounting
policies.|We assessed the identifiable intangible assets
against appropriate recognition criteria under
FRS102, and assessed the reasonableness and
valuation of the disclosure of intangibles within
the financial statements.|The acquisition of Tenet
Education and Tenet
Procurement gives rise to
goodwill in the consolidation.
This has been correctly
accounted for.| Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 |Issue|Audit risk|Auditprocedures undertaken|Conclusion| |---|---|---|---| |Going concern|It is the responsibility of the
Trustees to assess the ability
of the charity to continue as a
going concern for a period of
not less than 12 months
following the anticipated date
of sign off.
This is a key risk given the
current economic climate and
pressures on government
spending.|We have reviewed the considerations of
management in relation to the going concern
assumptions made.|The charity and associated
subsidiaries are prepared
correctly under the going
concern basis.| |Management override of internal
controls|All control systems present
the risk that they can be by-
passed by senior members
of the management team,
leading to accounting entries
and transactions being made
without the need to follow the
established systems and
procedures|A suitable level of professional scepticism was
applied throughout all areas of audit testing.
We examined the significant accounting
estimates and judgements applied to the
accounts for evidence management bias that
may represent a risk of material misstatement
due to fraud.|The risk of management
override was deemed low.| |Payments made to connected
parties|The payments made to
related parties and trustees’
are not made in line with the
Charity SORP (FRS102)|Obtain a register of interests from the client for
all associated entities for the trustees’ and
record any transactions and balances with each
entity. Record all expenses paid on behalf of the
trustees’ and review the reasonableness of the
expense|All payments to related parties
were reasonable and on an
arms-length basis.| Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 ## **4. Report of significant weaknesses in systems and internal controls** ## 4.1 Introduction We set out below the significant matters we became aware of during our audit, which relate to the effectiveness of the company’s accounting and financial control systems. We have used the following grading system to indicate the significance of the issues we have raised and the priority that we believe should be given to our recommendations. |Rating|Description| |---|---| |High|Should be urgently attended to by the directors and management.
These are significant issues that mayresult in aqualification in the audit report in futureperiods if not satisfactorilyaddressed.| |Moderate|Issues requiring the attention of the directors and management.
Issues ranked as moderate require close monitoringbythe board and senior management to ensure timelyresolution.| |Low|Issues requiring management attention and correction.
Issues ranked as low are generally routine in nature and should be resolved by general management.
The board and senior management should be aware of these issues to enable monitoring of progress with their resolution. These
issues maybe reported to management in less detail than more highlyrated issues.| No significant weaknesses in systems and internal controls have been identified. No audit recommendations. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2021 ## **5. Status of audit recommendations from previous year** During the course of the audit we revisited the audit recommendations from the previous year’s audit management letter and set out below the status of these recommendations. |Systems and controls – observations in 2020|Update in 2021| |---|---| |Dates were incorrectly recorded on some purchase invoices. Ensure that all
dates are correctly recorded so that expenditure is recognised in the correct
periods.|No issues were identified in the current year.|