Crescent Purchasing Consortium Annual Report 2021/22 CPL GROUP tenet tenet |Contents|| |---|---| |**Introduction from our Chair**|| 3| |**Welcome to our Group Leadership Team**|| 4| |**Welcome to our Board of Trustees**|| 6| |**Managing Director Report**|| 8| |**Contracting Business**|| 12| |**Communications & Engagement**|| 16| |**Managed Procurement Service**|| 20| |**On-Demand Procurement Service**|| 22| |**Tenet Procurement Service**|| 24| |**People & Culture**|| 26| |**CPL Learning**|| 30| |**Financial**|| 32| |**Governance**|| 36| |**Partnerships**|| 38| We are an education owned **charity** that gives back to the sector ## Introduction from our Chair ## **Our Vision** **“To be the procurement services partner of choice for the education sector and, through our work, help the sector to enhance teaching and learning.”** I wish you a very warm welcome to our 2021-22 annual report for Crescent Purchasing Limited (CPL Group). I have the honour of writing the opening comments section of the report for the first time following my appointment to Chair of the Board of Trustees, in August 2021. In the capacity of Nominated Chair, I have had the pleasure of working with our Trustees and CPL Group colleagues, in particular the Group Leadership Team, all of whom are dedicated to pursuing our vision to be the procurement services partner of choice for the education sector and, through our work, help the sector to enhance teaching and learning. The CPL Group is committed to supporting our members with all aspects of procurement, including the advancement of education and research in procurement through learning and development and enabling collaboration and sharing best practice with likeminded network groups. I hope you will gain an appreciation of the depth and breadth of the valuable work undertaken through the year as you read the various sections within our annual report. The year has seen several milestones being achieved by the CPL Group team, including: 1. More members than ever before finding value in using the Crescent Purchasing Consortium (CPC) portfolio of frameworks, resulting in record levels of spend going through the frameworks each quarter 2. Tenet On Demand procurement consultancy completing more projects than ever before, enabling them to achieve their highest level of income to-date 3. Tenet Procurement Services supporting customers with more procurement activities than ever before, helping them achieve their highest level of income to-date The surplus generated by the Charity enables it to continue to invest funds back into education with many members having benefitted not just from the CPL Group’s procurement services, but also the grant funding which has been provided to support the enhancement of teaching and learning across the education sector. A further £367,959 has been ‘given back’ to the education sector during the 2021/22 year. The new 5-year strategic plan will commence in 2022 and I believe we have been aspirational in our vision for the next 5 years to deliver outstanding procurement services to our members. More detail relating to the 2022-27 5-year plan is contained in the Managing Director report. The work of the CPL Group relies on the support of our members and suppliers who engage in our procurement work. It cannot be under-estimated how much we appreciate this support, which ultimately translates into us being able to ‘give back to the future’; the future being those learners who are benefiting from enhanced teaching and learning because of the work of the CPL Group. Without this continued support, none of the work we do would be possible. My final words of appreciation are for the CPL Group employees. None of the above is achievable without a team of professionals who live by the Charity’s values of being People Orientated, Supportive, Collaborative, Professional and Customer Focused. The range of activities undertaken by the team are wide and far-reaching, with each person adding value to the overall outcomes produced by the Group. On behalf of the Trustees, I would like to say thank you! The work you do is highly valued and hugely appreciated and is making a positive difference to the education sector. ## Andrew Comyn AR 2021/22 **| 3** ## Darren Lowe MANAGING DIRE ## Craig Lockley ## HEAD OF PROCUREMENT, ON-DEMAND With extensive expertise and knowledge of Procurement Legislation, Craig brings over 12 years’ experience across the NHS and education sectors and is a member of the Group Leadership Team. He is proud to have developed a procurement service has that provided 1,000+ institutions with a compliant, robust, effective tender process, while growing a winning team to meet those demands. Jane Davies HEAD OF PEOPLE DEVELOPMENT With over 25 years’ experience, Jane is an experienced Head of People Development and has HR experience within a diverse range of organisations including retail, manufacturing, private commercial and education sector. ## Rachel Turner HEAD OF PROCUREMENT - NORTH Rachel is the Head of Procurement for Tenet Education Services’ North team. A highly accomplished MCIPS, Chartered procurement and supply professional, with 17 years of public procurement with experience acquired in the NHS and Education sectors. We are an education owned **charity** that gives back to the sector **----- Start of picture text -----**
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## Dave Owen FINANCIAL CONTROLLER Dave is a qualified and customer focused management accountant with over 16 years of experience working in large finance departments. Dave joined CPL Group from the Housing sector where he had demonstrated a track record in managing and developing a management accounts team within a constantly evolving company. ## Rana Holland ## HEAD OF COMMUNICATION & ENGAGEMENT Rana joined the CPL Group in October 2021 as the Head of Communications and Engagement following a 28-year career in the Housing sector. A fellow of the Chartered Institute of Public Relations (CIPR) Rana has particular expertise in sectors that are highly regulated and complex whilst dealing with multiple stakeholders. ## Raymond Wiffen HEAD OF PROCUREMENT - SOUTH Raymond is a procurement professional with over 30 years’ experience within Education and the NHS. He has a wealth of experience, expertise and knowledge of Public Contracting and procurement legislation. AR 2021/22 **| 5** ## Andrew Comyn DEPUTY CHIEF EXECUTIVE & CHIEF FINANCIAL OFFICER AT NOTTINGHAM COLLEGE ## Jo Bentley EXECUTIVE DIRECTOR OF FINANCE, ESTATES & RISK AT HOPWOOD HALL COLLEGE ## Darren Lowe ## CPL MANAGING DIRECTOR ## David Pullein VICE PRINCIPAL AT LEEDS COLLEGE OF BUILDING, FINANCE & RESOURCES ## Peter Kane DEPUTY HEAD OF ESTATE AT BELFAST METROPOLITAN COLLEGE We are an education owned **charity** that gives back to the sector ## Noel Cassidy PROCUREMENT MANAGER AT CAMBRIDGE REGIONAL COLLEGE ## Fatima Benishem FINANCE & PROCUREMENT OFFICER AT THE COLLEGE OF WEST ANGLIA ## Jon Howard ## ESTATE DIRECTOR ## Lawrence Jenkins DEPUTY CHIEF EXECUTIVE AT NORTH KENT COLLEGE ## Has procurement ever been needed more than it is now? The past 12 months have seen price increases happening continually. This constant challenge is hard to manage, and some organisations are forced to make difficult decisions and reduce outgoing costs to allow for the affordability of essentials such as rising staffing costs and energy bills. Sadly, cutting cost at every opportunity can increase risk in your business. Implementing a strategy to avoid escalating costs can save an organisation a lot of money. Ensuring procurement processes are compliant, even if this means having to take longer to receive the goods or service, is better than receiving a costly legal challenge resulting from a non-compliant process. Challenging financial markets place a lot of pressure on businesses and some will be forced into survival mode. ## Darren Lowe MANAGING DIRECTOR The difference between winning a new contract, or retaining one, can make or break a business. Losing a contract can be the end and, in these times, it is not uncommon for the volume of challenges from unsuccessful bidders to rise. A good procurement offering will defend their process and decision, so the costly legal challenge does not occur. Procurement has never been a quick win solution, it’s a long-term game and in many cases a backlog of process improvements and a change of culture is needed before savings and quality improvements can start to be achieved. Once the good practice is embedded, the benefits will flow but need to be maintained by experienced professionals. Some of these benefits are not tangible. Not receiving a legal challenge is a win, but educational establishments will not recognise this as cost avoidance. My procurement colleagues across the CPL Group have been supporting a large volume of our customers throughout the year and from the conversations I have been involved in, I am only too aware how difficult the past twelve months has been for the education sector. I am proud of the dedication our customer focused team has invested into supporting and collaborating with customers and suppliers to do the very best that they can do. The same has to be said for the CPL Group support service teams, who are people focused and have provided firstclass support to our front-line team to ensure they are supported, and their wellbeing is cared for. We are an education owned **charity** that gives back to the sector ## The CPL Group has a mission “to provide outstanding procurement services to our members and clients.” We strive to deliver this mission every day because we genuinely believe outstanding procurement services enhances teaching and learning. We might not be teachers and lecturers, but we assist in providing teachers and lecturers with the teaching materials, books, stationery, technical equipment and learning environments to help them deliver world class teaching and learning. If what we do goes some way to enhancing the work of teachers and lecturers nationwide, then we will proudly continue with our work. ## **Commitment to Equality, Diversity, and Inclusion** ## **Health, Safety and Wellbeing** Our Wellbeing Support Team has grown as a result of enthusiastic employees wanting to train to become Mental Health First Aiders. The team now consists of eight colleagues who are all passionate to help others when they need someone to lean on and talk to. I am proud that our values of being supportive, collaborative and people focused are evidenced in bright lights by the work of this team and any employee across the CPL Group, regardless of their location is never far from a caring colleague. ## **People** The CPL Group was proud to retain the Great Place to Work certified status for a 2nd year and we formed an Equality, Diversity and Inclusion working group made up of employees. The group meetings are chaired by Lisa O’Shea, Senior Procurement Officer within the CPC Contracting Team and will look to continually raise awareness and ensure fair treatment and opportunity for all. More information on our work in the field of equality, diversity and inclusion is provided within the People and Culture section of the report. The CPL Group pride ourselves on being a people focused organisation. I want to give recognition to our HR Team who may be small in numbers but large in support, empathy and knowledge. Continually looking for improvements in how we can support our employees to be the best they can be requires a team to be innovative and there is no shortage of ideas and energy. ## **Sustainability** We all have a part to play in sustainability and the CPL Group are doing our best to contribute to this important matter. Dave Owen, Financial Controller is the chair of our Sustainability working group and with support from our Trustee Sponsor Jon Howard and employees who make up our working group we have ambitions to improve the working practices that we have control over to be more financially, economically, and environmentally sustainable. AR 2021/22 **| 9** ## **Membership** Membership numbers within the CPC have remained strong during the 2021/22 year, with membership figures increasing by 10.24%. The rise in membership is primarily accountable to an increase in schools, academies and multi-academy trusts wishing to access the fantastic resources available through the CPL Group. A breakdown of the CPC membership is shown below. ## **CPC MEMBERSHIP BREAKDOWN (TOTAL 8943)** **Academies 5504 English Schools 1445 Multi-Academy Trusts 885 English Schools with 6th Forms 343 English FE and 6th Form Colleges (Full) 244 Universities 112** **Free Schools 86 Private and Independent 80 Other Members (Non-Colleges) 76 Specialist Colleges and Schools for Students with Disabilities 52** **Other Members (Local Authorities) 30 Welsh Schools 22 Scottish FE Colleges 17 Welsh FE Colleges 14** **English FE and 6th Form Colleges (Other) 12 Museums 7** **Nothern Irish FE Colleges 6 Adult Education Colleges 3 Federations 3 Scottish Schools and Schools with 6th Forms 2** Managed procurement service customers was 42, an increase of 6 since last year, Tenet managed services and On Demand ran a total of 240 tenders this year, down from 287 last year. A breakdown of the customer types for both Tenet services is shown below. ## **TENET CUSTOMERS BREAKDOWN** **Academies 22.9%** **Adult Education Colleges 0.4%** **English FE and 6th Form Colleges (Full) 33.9% English FE and 6th Form Colleges (Other) 0.7%** **English Schools 23.2%** **English Schools with 6th Forms 1.8%** **Multy-Academy Trusts 13.3% Non Education 1.5% Other Members (Non-Colleges) 0.4% Private and Independent 0.4% Universities 1.1% Welsh FE Colleges 0.4%** We are an education owned **charity** that gives back to the sector ## The Strategic Plan ## **2021/22 Strategic Plan** The 2021/22 year focused on 4 priority aims across the CPL Group. Each aim had an operational plan of work designed to move the CPL Group towards our vision of being the procurement partner of choice for the education sector and through our work, help the sector to enhance teaching and learning. The 2021/22 priorities were: 1. To provide outstanding procurement services 2. To invest in providing procurement training and resources to enable the advancement of education and research 3. Be an employer of choice through engagement, equality, diversity, and inclusion 4. Focus on sustainability matters The outcomes from the 2021-22 strategic plan have resulted in 80% of planned activities being fully completed, with the remaining 20% realligned to the 2022-27 strategic plan. ## **2022-27 Strategic Plan** The CPL Group will always be an ambitious which looks for organisation continuous improvement in everything we do. Our new 5-year strategic plan consists of 3 strategies: 1. To deliver outstanding procurement services 2. To support the development of our people (members and employees) 3. To enable a sustainable future Within each strategy are 3 objectives which describe what we intend to achieve alongside key results which will become our success measure. I am very proud of the strategic plan and the engagement which has taken place during the latter months of 2020 and early 2021. Engagement sessions with our employees and Trustees has provided over 500+ ideas from which the final strategic plan has been designed. Darren Lowe **Click here to see our Strategic Plan** ## Peter McMullan ## SENIOR CATEGORY MANAGER The Contracting Team have had an exceptional year with CPC frameworks being the chosen route to market for many educational institutions. The volume of spend via frameworks has been £322m, which is an increase of 32% from £244m in 2020/21 with each quarter of 2021/22 seeing new spend records being achieved The Contracting Team has delivered outstanding support to CPC members through a range of channels, including a telephone helpdesk, online chat, video calls and more traditional telephone and email support. Members can be assured that their needs are at the forefront of the support from the Contracting Team and every effort will be made to help members achieve their desired goal. The Contracting Team have worked collaboratively with colleagues from across the CPL Group, in particularly Tenet colleagues, Dukefield Procurement and Risk 2 Value (framework partners) to ensure the CPC portfolio of framework agreements and dynamic purchasing systems are designed specifically for the education sector, are easy to use and provide value for money. These collaborations have benefitted the pre-market engagement process with knowledge gained from discussions, and research being invested into new frameworks. Likewise, the quality of work from the team is continuously reviewed to ensure best-in-class frameworks and dynamic purchasing systems are the primary outcome for the team. Continuing with the theme of collaboration, the Team have engaged with both members and suppliers throughout the year to ensure we remain educated on the needs and requirements of the sector, as well as maintaining our marketplace knowledge. Members have benefited from numerous interactions with the Contracting Team via regional network groups, individual support and knowledge transfer articles, in the form of blogs and newsletters. Suppliers have worked well with the Team to exchange knowledge on their specific marketplace and assisted the Contracting Team to overcome member issues, when necessary. The CPC was founded on the principle of members, suppliers and CPC supporting each other to deliver a mutually beneficial service for all. Since our formation back in 1999 we have worked on this principle and we will continue to do so, as we commence our new 5-year strategic plan with members and suppliers equally reflected in the objectives we have set. CPC have been working with various teams across the Department for Education (DfE) throughout 2021/22. Mutual benefit has been achieved from working with the Category Team at the DfE to promote CPC frameworks to the school marketplace. On the 31st of July 2022, **17 CPC frameworks** had gained **DfE approved** status. **17 DfE** The UK public procurement reform is anticipated to be the biggest change to public procurement rules since 2015. The earliest the regime will come into force is 2023. Until such time, the Contracting Team are providing as much information as is known to the members and continually reviewing news as it is released by the Cabinet Office. Excellent feedback was received from members who attended the regional procurement network meetings and heard Pat Condon’s appraisee of what the new regime may look like and how the education sector may need to work differently. One of the fundamental objectives of our operation is to ensure that we offer our members full regulatory compliance when utilising our agreements and we will take appropriate steps prior to the introduction of the new procurement rules to ensure this continues under the new regulatory regime. Furthermore we are committed to upskilling our members and will be working in partnership with training providers to support the education sector in understanding necessary changes, as part of the regulatory rollout. The team completed a framework gap analysis during the year, identifying a number of potential workstreams. Our vision is to be the first-choice procurement partner, and through our work, enhance teaching and learning. This work supports our vision and will provide our members with a one-stop-shop for their procurement needs. The next step is for feasibility studies to be undertaken to determine the potential viability of any given requirement. Details of the findings from the gap analysis will be discussed with our members throughout 2022/23 at regional network meetings. Thank you to colleagues from Tenet and framework partners for their support with and work involved in producing the above agreements. ## Retendered Agreements completed during 2021/22 - Outsourced Catering - • Painting & Decorating - Leasing Services (Master Vendor) - • Temporary & Permanent Staffing - • Software Licenses & Associated Services - • Corporate Software - Building Materials & Hardware - Leasing DPS - Print & Design - Security Systems - Electric Vehicle Charging Points - • Utilities Supplies & Services - Financial Services - Legal Services - Cashless Payments - Outsourced HR & Payroll - Communication Solutions - - Residential Textiles - - Sustainable Furniture Solutions - - Sustainable Fleet Solutions - ## The Contracting Team There have been no staffing changes within the past year. Each team member has completed a minimum of 30 hours continuous professional development and colleagues who are studying toward the Chartered Institute of Purchasing and Supply (CIPS) professional qualification have progressed well. I would like to congratulate Lisa O’Shea for achieving Level 5 CIPS, Myles Woodman for progressing through Level 6 and Rezia Begum for progressing Level 4. The CPL Group are committed to advancing the education of our team and will continue to provide support with the development of their skills and career progression qualifications. Finally, I would like to thank the Contracting Team for their efforts throughout the year. I am proud of where we are and what we have achieved, as a team. **----- Start of picture text -----**
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## Rana Holland ## HEAD OF COMMUNICATIONS & ENGAGEMENT It has been a busy 12 months for the Communications and Engagement Team, with a number of service enhancements implemented to improve user experience, engagement levels and to provide timely, accessible information for all our members. Following Board approval, the Group commissioned a new website project that will amalgamate the Groups service offer across its subsidiaries, providing a one-stop-shop for all our members procurement needs at their fingertips, with one primary website offering. The project commenced with a pre-engagement campaign to gather member feedback on how we can improve our website accessibility and functionality. Our websites recorded a staggering 265,260 sessions with a total number of 169, 604 users. ## **LOGGED SESSIONS** ## **TOTAL USERS** **CPL 14,783 CPC 130,635** **TES 9,214** **TPS 5,016** **FELP 105,612** **CPL 11,638 CPC 62,037 TES 7,518 TPS 3,804 FELP 84,607** We are an education owned **charity** that gives back to the sector It is vital that our members are instrumental and at the heart of our development work to ensure we create a platform that is tailored and bespoke around their needs. Our new website is on track to be launched in 2023. Another milestone achievement was the build and launch of a new internal Intranet site, which was another welcome addition to our communications portfolio to support colleagues across the Group. This centralised portal, provides easy access to internal and external resources and is a central hub to facilitate company-wide communication, increasing employee productivity, and team collaboration, whilst supporting colleagues to stay connected with an integrated web app to assist colleagues on the move. AR 2021/22 **| 17** **Jack Horton** CUSTOMER ENGAGEMENT MANAGER The year 2021-22 saw significant change within the Regional Procurement Advisory Team (RPA) which demonstrates our commitment to ongoing member support across the UK. Jack Horton joined the team in February 2022 as our new Customer Engagement Manager along with two new RPA roles. Deborah Adesina supports members in London/Southeast and East respectively, along with Emma Middleton who supports member regions Wales and the Southwest. We continue to offer our members a blended approach to engagement offering virtual and physical meetings, utilising the latest technology. This allows our members a variety of engagement methods and makes best use of our procurement expertise and support tailored to their needs. The team has facilitated 397 meetings during the course of year with 95% of those supporting new members inductions to CPL Group services, whilst also signposting to our internal procurement experts for members wanting to utilise our wide portfolio of 90 compliant procurement frameworks (17 approved by the DfE) and our Tenet OnDemand consultancy and managed services. This does not include the several hundred points of contact via phone calls, email and MS Team meetings fielded by the team, on a day-to-day basis to provide procurement support and guidance for our members. **Tracey Hindmarsh** REGIONAL PROCUREMENT ADVISOR **Louise Ashcroft** REGIONAL PROCUREMENT ADVISOR **Emma Middleton** REGIONAL PROCUREMENT ADVISOR **Deborah Adesina** REGIONAL PROCUREMENT ADVISOR We are an education owned **charity** that gives back to the sector We saw a growth in demand from Multi Academy Trusts (MATS) and Academies during the year which has resulted in a significant increase within our member base. Demand for the latest news in procurement practices will continue to grow in the lead up to the new Procurement Bill being implemented. The CPL Group have invested in the RPA Team to support our growing membership navigate changes in legislation. We have continued to harness the power of our internal Customer Relationship Management (CRM) system. By cleansing contract data information, we have enhanced our member experience by signposting them effectively within the Group to the relevant procurement expertise. In turn this intelligence will support future streamlining of our service offer. The RPA team facilitated 24 Procurement Advisory Group (PAG) networking meetings across the UK during the year with a collective 377 institutions in attendance. We will continue to meet the exponential growth in demand with an additional proposal for quarterly PAG meetings by region. Rana Holland AR 2021/22 **| 19** ## Raymond Wiffen & Rachel Turner HEAD OF PROCUREMENT - NORTH & SOUTH The Managed Procurement Team have supported 42 different educational establishments during the year. - 34 placements are Further Education customers, this represents a 15% market share in this sector. - 6 placements are Multi Academy Trust customers - 2 placements are Higher Education customers A total of 240 tenders were completed during the year influencing £26.9m of non-pay public sector spend. Savings of £10.7m were generated within the combined duration of all placement customer contracts. As of the 31st of July 2022, the managed procurement service team consisted of 30 employees, split equally across the North and South teams. The gender split across both North and South teams was 44% male / 56% female. The annual customer satisfaction questionnaire informed us that a pleasing 100% of the customers who responded to the questionnaire would recommend the service to others. 92.3% considered the Value for Money to be good or outstanding. We received a 30.23% return rate on the questionnaire. Tenet completed tenders in 46 different categories during the year 2021/22. A breakdown of the work is shown below. - Audit 11% - • Catering inc. Vending 3% • Minor Works 10% • Consultancy 3% • MFD/Print Services 7% • Insurance services 3% • IT Equipment 5% • IT Hardware 3% • PPM Maintenance 5% • Student Transport 3% - Student Transport - Cleaning Services 4% - • Waste Management 3% • 4% Sub-Contracting - • Equipment 2% • 3% Corporate Software - • Future Technologies 2% • IT Networks 3% • M&E services 2% • Grounds Maintenance 3% • Other 24% **£26.9m non-pay public sector spend** We are an education owned **charity** that gives back to the sector ## **TENDER CATEGORIES** **Audit 11% Corporate Software 3% Minor Works 10% IT Network 3% MFD/ Print Services 7% Grounds Maintenance 3% IT Equipment 5% Catering inc. Vending 3% PPM Maintenance 5% Consultancy 3% Cleaning Services 4% Insurance Services 3% IT Hardware 3% Sub Contracting 4%** **Student Trasport 3% Waste Management 3% Equipment 3% Future Technologies 2% M&E Services 2% Other 2%** ## **TENDER PROCESS** in **46** different categories **Below Treshold 45%** **Over Treshold-Open 14%** **Over Treshold-Restricted 4%** **Mini-Competition 37%** ## **FRAMEWORK DETAIL** **CPC Framework 59%** **Other Framework Providers 41%** AR 2021/22 **| 21** ## Craig Lockley HEAD OF PROCUREMENT ON-DEMAND The post-pandemic restriction era brought about a vast amount of contracts that had been extended under the Government’s Procurement Policy Notes and required to be competitively tendered. Tenet’s On Demand team have been the chosen provider for procurement consultancy on 179 different projects over the 2021/22 year, across more than 500 separate education sites. The team have performed fantastically well and have delivered a compliant, robust and effective tendering service to a sector, in need of support. The Management Team within On Demand was expanded during the year with a well-deserved promotion for Jonathan Whittle. Jonathan is the Senior Catering Specialist and brings a wealth of experience and expertise to the team. Catering is a complex area of spend to tender. In recognition of the demand from the education sector for Tenet’s support in this area, Gareth Jones and Mary Bee joined the On Demand team working with Jonathan to specifically fulfil the sectors catering tendering requirements. The On Demand team also welcomed a further two new employees with Emma Thorley joining as a Junior Procurement Officer and Leah-Ann Richardson joining as a Procurement Officer. Both Emma and Leah-Ann have settled in well and have demonstrated the added value they bring to the team and our partners. Craig Lockley **----- Start of picture text -----**
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## Craig Lockley HEAD OF PROCUREMENT ON-DEMAND Tenet Procurement Services (TPS) provides procurement support services, including compliant frameworks and procurement consultancy to the public and private sectors, outside of education. TPS has expanded its growth throughout the year with public sector bodies outside of education making CPC frameworks their chosen route to market. Wider public sector choosing TPS products included housing, health, blue light, charity, and local authority sectors. In addition, TPS has continued to help private companies with procurement support on their public sector appointments. A total of 27 compliant frameworks are now available with a host of procurement options available in terms of direct awards, mini-competitions, and dynamic purchasing systems (DPS). The aspiration is for the number of frameworks to expand year on year, providing customers with an alternative resource to conduct all procurement. TPS was appointed by a Housing Association to provide a dedicated procurement support service for an agreed number of days per week. This model has been successfully delivered within the education sector for many years, and we are delighted to be adding value within the Housing Sector by leading on the running of tenders, analysing spend and managing suppliers. The Tenet Procurement Services website has undergone a full transformation during the year, with a focus on providing customers with an easy to navigate website with clear and concise information. **----- Start of picture text -----**
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AR 2021/22 **| 25** ## Jane Davies ## HEAD OF PEOPLE DEVELOPMENT Our most valuable assets are the people who work in our business every day. Our people bring a diverse range of experience, expertise and perspectives that contribute to the values and culture of the Group. Gathering feedback from our people about their experiences at the Group is key. Our annual employee ‘Great Place to Work’ survey provides us with insights and an opportunity to shape our culture and commitment to ensuring the policies, programmes and initiatives we are building reflect the needs of our people. Our people have truly spoken and following the survey in June 2022, the Group were delighted to be certified as a Great Place to Work (GPTW) for a 2nd year running. As well as the Best Workplace for Well-being, Best Workplace for Women and officially named one of the Best Workplaces for a medium sized organisation. We are delighted with the overall results and whilst we did see a slight dip from the previous year results, we are still one of the highest scoring charities within the not-for-profit sector. We are an education owned **charity** that gives back to the sector Highest scoring areas of the survey 2021/22: ## **Employer of Choice** One of the Group’s strategic aims for 2021/22 was to be an employer of choice through engagement, equality diversity and inclusion. Over the last 12 months we have developed many initiatives to help enhance our people’s experience, so we can retain and attract talent. These initiatives have been successful and have helped us reduce our labour turnover rate from 30% to 15.6%. We have also attracted 23 new employees to the Group through delivering effective recruitment strategies and achieving 4.9* rating review as a great employer on Glassdoor. We always aim to deliver a total remuneration and reward package that is competitive with the market. All employees are offered a wide range of benefits including a competitive salary with an annual pay review, yearly bonus, pension, 38 days leave (including Christmas holiday closure and bank holidays), agile flexible working, paid sick, maternity and paternity pay and financial support towards CPD and qualifications. ## **Great place to work for Well-being** In 2021, we were accredited a Great Place to Work for Well-being and we have continued to review and develop our engagement agenda to create a working environment that is safe and fun, where our people feel supported to thrive. We have continued to deliver engaging events including team building days which included afternoon teas, boat trips and escape rooms. We have also organised a bake-off and planting event, a walking challenge around Britain and an international food day. We have invested in training eight mental health first aiders, to help reduce the stigma around mental health and we positively encourage our people to reach out if they are struggling with any emotional matters and mental struggles. Working with ABEL, a healthcare provider, we also now offer occupational health resolutions to support our people with any health issues which may affect their functional ability both at home and at work. ## **Learning and Development** We have maintained a culture of learning and development, upskilling and reskilling our people so they can bring their best selves to work. This year we have invested £34,401 and 1,571 hours of continue professional development. Working in partnership with Futureproof we have delivered training on a wide range of courses including Unconscious Bias, Imposter Syndrome, Presenting with Impact, Negotiation Skills and Report Writing. Our people also have access to funded training through a Greater Manchester initiative, GM Skills Map and have completed Leadership & Management training, Mental Health & Stress Awareness and Time Management. This year we have also been working hard, developing a bespoke Development Programme for Procurement and Leadership Management so we can “grow our own” talent within the Group. We are very excited to launch the programme in 2022/23 and continue to invest in the development of our people. ## **Internal Communications** We have created a direct connection between our Board, leadership, management and our people to ensure that there is open dialogue and communication sharing upwards and downwards. This year we have put a spotlight on connecting leaders (Group Leadership team with the Management team) through new communication channels and management meetings. The purpose and focus of this group is to work together to identify and understand business priorities, strategy and deliverables and behaviours we need to be successful. Through the implementation of a new internal Intranet system, we have improved collaboration and communication by sharing monthly news, recognising special events, anniversaries and achievements. It provides business intelligence on group wide policies, strategy plans and access to useful information. ## **Equality, Diversity and Inclusion (ED&I)** We want to be a workplace in which everyone feels they belong and are able to thrive. This means creating an inclusive culture, free from the barriers that limit people in reaching their true potential. To help achieve our ED&I goals, our dedicated working group are developing a strategic plan and policy which will set out our commitment in creating an inclusive work environment. We have continued to take a holistic approach to make sure every employee’s individuality, diversity and uniqueness is welcome, valued and be at their best. This year we have recognised and raised awareness of national celebration days including Pride, Diwali, Ramadan, Black History Month, Alzheimer’s, ADHD and bisexuality awareness. **----- Start of picture text -----**
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## CPL Learning Advancing the procurement knowledge and skills of our members is important to us. No matter what role our members have in Education, we aim to raise awareness of procurement across the sector and provide our members with a general business understanding of procurement. Having a greater understanding of procurement allows our members to become more efficient in their role, manage risks and lower the costs of goods and services. As the Charity continues to grow, so does the investment and our commitment into the advancement of learning and research to our members. The year commenced with the launch of a new brand and website for CPL Learning htps://cpl.group/learning bringing together all categories of advancement and learning. ## **Funded Procurement Training** Working in partnership with CIPS, BIP Solutions and The Whitepaper Conference we have continued to fulfil our commitment to offer fully funded training courses to our members. During 2021/22, 187 training courses were offered to our members, compared to 38 in 2020/21. The courses covered subjects such as Introduction to Procurement, Writing a Tender Specification, Ethical Procurement and Supply, Developing and Managing Contracts and the Public Procurement Law Conference. CPL Learning (formerly Crescent Learning) is the flagship under which the charity fulfils its charitable objective in relation to advancing education and research activities in procurement for the Education sector. We are an education owned **charity** that gives back to the sector ## **Procurement Advisory Groups (PAG)** The Regional and National PAG Groups have continued to deliver a comprehensive agenda to members and are making considerable progress with 377 educational institutes in attendance this year. These groups provide an excellent forum for members to advance their education through the transfer of knowledge with peers from other educational establishments and provide feedback on new frameworks and procurement developments whilst enabling productive feedback on current services. ## **FE Facilities Management Network (FEFM)** The FEFM is a network of Facilities Management professionals from the FE Sector all coming together to collaborate and communicate the sharing of good practice. Regional networks have been established in Northwest, Yorkshire & Humberside and we hope to build on these regional networks yearly, with a longer aspiration of forming a national council and Education Facilities Management specific events. ## **Further Education Library of Procurement (FELP)** The FELP website has been rebranded and provides six hundred library pages of free procurement information, resources and templates to our members. A working group was formed at the beginning of the year to review the pages and update in accordance with any legislation changes. To date, the working group have updated the top twenty-five pages and a continued review is planned for 2022/23. The content on FELP is only accessible through login credentials provided to our members. The statistics for the last 12 months show any increase in visits to the pages, just over 29,000 sessions (a session is one browser visiting the site). ## **Plans for the next 12 months** The aspiration is to broaden the learning opportunities for our members and continually advance their education and research in procurement. In 2022/23 we plan to conduct research with our members to determine the current level of dedicated procurement resource and gain a greater understanding of training needs. The findings from this research will help build and develop additional training material, resources, development programmes and support for our members. We plan to continually build our community through the PAG and FEFM network groups. We will offer administration support to ensure meetings are set in advance, with trending topics that allow members to engage, collaborate and advance their education. Continuing to support the FE sector we also plan to launch a research project on the benchmarking of data called ‘Insight’. Insight will gather data intelligence from our members about their education establishment. Once analysed, the data will help our members improve the procurement of goods, services and help save costs for the future. We are excited to launch a portfolio of training presentations and toolbox talks, including an introduction to procurement, contract management, delivery of frameworks and the principles of contract law. We will continually work with training providers and ensure we have in place regular updates and training on the new procurement bill regulations. Another exciting year ahead and we welcome members to join our community and advance your procurement knowledge with CPL Learning. AR 2021/22 **| 31** ## Dave Owen ## FINANCIAL CONTROLLER This year has been our best year yet for income and surplus. The CPC frameworks continue to provide excellent Value for Money for all members supported by a free helpdesk facility and personal technical support from the field based Regional Procurement Advisor team. Marketing premium income increased by £394k on last year. This is supported by an outstanding procurement managed service (which in the year recorded £10.7M of savings over contract terms for 42 customers) and on-demand tendering services provided by Tenet. The Trustees are committed to ensuring that any excess surpluses are reinvested into the education sector. Since 2019 £1 Million has been Identified as Designated Funds for the purpose of reinvestment. £400,525 had been expended prior to the financial year with a further £367,959 spent during 21/22. Re-investment into the education sector takes the form of several projects with the grant funding to sponsor student events/activities generating particular interest. The first round of grant funding during 2019/20 saw £259k awarded to 33 institutions. The national lockdowns during the global pandemic meant that no further funding was possible though, with the easing of restrictions, a second funding “window” was opened in May 2021. The result of the second round was £288k awarded to 68 institutions which was paid in the first quarter of this financial year. The CPC frameworks continue to provide excellent Value for Money for all members supported by a free helpdesk facility and personal technical support from the field based Regional Procurement Advisor team. We are an education owned **charity** that gives back to the sector Tenet income from procurement placements increased by £149k during the year while the on-demand tendering service increased its income by £114k. Tenet Procurement Services (TPS) which services the wider public sector has seen its most active year to date with significant increase in CPL framework usage, continued one-off tender provision and for the first time a managed service contract with a Housing Association. Fundraising – the charity does not generate income from fundraising at this current time and therefore does not use the services of fundraisers either on a paid or voluntary basis. AR 2021/22 **| 33** ## **Environmental management** At the start of the year a Sustainability Working Group was established with employee volunteers from across the Group. This is chaired by a member of the Group Leadership Team and has a Board sponsor. The aim of the working group is to set up and maintain an effective Environment Management System (EMS) and Carbon Management Plan. The implementation of energy efficient measures will ensure the Group’s carbon footprint is significantly reduced over the next five years. The new 5-year business plan includes a detailed plan to achieve ISO 14001 – Environmental Management accreditation within 3 years and go beyond net carbon emissions (carbon offsetting). Business travel across the organisation has reduced following the national lockdowns as more meetings, in particular the Regional Procurement Advisors meetings with members are held virtually. A hybrid working model means that employees based at the Head Office in Salford are only expected to work onsite for two days per week and can work from home for the remainder. Managed service contract customers are willing for Tenet employees to work on a hybrid basis. ## **Health, safety and employee wellbeing** The Trustees are aware of their responsibilities on all matters relating to health and safety. The Charity has prepared detailed health and safety policies as well as a new 5-year health, safety and employee wellbeing strategy. A Board sponsor oversees the work that is carried out in relation to this. The aim of this strategy is to develop a positive health, safety and wellbeing culture with coherent policies and procedures that are compliant with all appropriate health and safety standards. Further details are provided in this report under Risk Management and Compliance checks. Further and sustained investment in employee wellbeing is a priority, with the majority of the workforce working remotely. A Wellness Group was set up during the year with employees from across the organisation with the aim of ensuring the new strategy is achieved. Eight employees have been trained as mental health first aiders. We are an education owned **charity** that gives back to the sector The CPL Group intends to continue its growth over the coming years. ## **Looking ahead** The CPL Group intends to continue its growth over the coming years. A new, ambitious and challenging 5-year business plan is in place with a supporting budget model. The three main strategies within the business plan are: - To deliver outstanding procurement services - To support the development of its people (employees and members) - To enable a sustainable future (financial, environmental and economic/social) The financial strength of the CPL Group ensures it can absorb the impact of the cost-of-living crisis and with no long-term liabilities (loans) is not negatively impacted by rises in interest rates. ## **Reserves policy** The CPL Group maintains a reserves policy that is available on its website. This sets out the level of reserves to be held by the company and the reasons why. Designated reserves are those reserves that the board of trustees have approved for the purpose of “Giving back” to the education sector. David Owen AR 2021/22 **| 35** ## Darren Lowe ## MANAGING DIRECTOR ## **The Board** Approves the strategy and leads the CPL Group to achieve long-term success. ## **Chair** - Leads the Board and ensures it operates effectively - Maintains a culture of openness and debate - Ensures effective dialogue between the Board and members ## **Trustees** Work with and challenge, if necessary, Group Leadership Team. - Provide independent external perspective - Contribute a broad range of experience and expertise ## **Managing Director** Day-to-day management of the CPL Group and implementation of strategy. ## **Sub-committees of the Board** ## **Giving Back Group** ## **Procurement Advisory Group (PAG)** Represented by a National and Regional Groups. Each group consists of representation from member organisations. Chairs from each regional group form the national group and cascade information to regional meetings. The Chair of the National Group is a Trustee and provides an update at each Board meeting. ## **Group Leadership Team** Is responsible for the ongoing management of the CPL Group. It considers the day-to-day operational matters for running the charity and reviews performance of the CPL Group, in line with the strategic plan. - Meets on a frequent basis and is chaired by the Managing Director. The Managing Director then reports to the Board - Is responsible for the development and implementation of the strategy - Develops and delivers business plans and budgets - Approves procedures and policies - Monitors operating and financial performance - • Is responsible for health, safety, and wellbeing management - Is responsible for data protection management - Is responsible for sustainability management With Trustee representation, the Group advises on the appropriate distribution of free reserves held by the CPL Group. We are an education owned **charity** that gives back to the sector ## **CPL Group Board** The Board of Directors are responsible for providing direction and overseeing the governance of the Charity. The Directors of the Charity are its trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees. The duties of the Board are delivered within scheduled Board meetings which allow for constructive debate and challenge by the Trustees. This approach enables the Trustees and the Managing Director to make timely and educated decisions on strategic matters. ## **Leadership** As of the 31st of July 2022, the Board comprises the Chair, seven Trustees and one Executive Director (Managing Director). The Charity’s procedure for appointing new Trustees is overseen by the Financial Controller. The composition of the Board is fundamental to its success in providing strong and effective leadership. Trustees are appointed for specific terms, usually of three years. The Chair reviews the composition of the Board and will assess whether the balance of skills, experience, and knowledge is appropriate to enable them to operate effectively. ## **Role of the Board** The Board has core responsibilities including setting the Charity’s strategic direction, overseeing the delivery of the strategy, and managing risk. All matters below the financial limit set by the Board are delegated to the Group Leadership Team. The Board Trustees operate on an open and constructive debate basis. ## **Board Meetings** The Board agenda is agreed by the Chair, in conjunction with the Managing Director. Each scheduled meetings includes an update from the various areas of the Charity, along with financial reports and update reports from committees. Discussions on strategic proposals, legal and governance matters are also covered. The Board has a strong focus on financial performance, risk management, data protection, health, safety and wellbeing and sustainability. ## **Division of Responsibilities** There is a clear division of responsibilities between the Chair (who is responsible for the leadership and effectiveness of the Board) and the Managing Director (who is responsible for managing the Charity’s business). The Board has delegated authority for the day-to-day management of the CPL Group to the Managing Director, with specific areas of business being managed by the other members of the Group Leadership Team. The Group Leadership Team are involved in, or aware of, all major activities and are therefore extremely well placed to ensure that all decisions align with the Charity’s agreed strategy. The Group Leadership Team are given delegated authority from the Board to make decisions within specific parameters. Decision outside of these parameters are reserved for the Board, although the Group Leadership Team are encouraged to bring decisions and/or proposals within their delegated authority to the Board for scrutiny and challenge. ## **Conflict of Interest** Trustees are required to avoid situations in which they have, or can have, a direct or indirect conflict with the interests of the Charity. The Charity has a procedure to record new outside interests and actual or perceived conflicts of interest that may affect them in their roles as Directors and Trustees of the CPL Group. Darren Lowe AR 2021/22 **| 37** Partnerships Department for Education RY 'sk 2 Volue Lid Dukefield Pr¢xurement UKUPC We are an education owned **charity** that gives back to the sector The CPL Group has a long history of working in collaboration with external partners. We believe that a strong partnership with a trusted provider will generate benefits that will positively impact our members and customers. A continuation of partnership working was maintained throughout 2021/22 and details of the various partners with whom the CPL Group engaged with are shown below ## **Department for Education (DfE)** www.gov.uk Frequent discussions throughout the year with various parties within the Department for Education are held with the sole purpose of progressing the mutual goal of improving procurement within the school sector. As of the 31st of July 2022, the Department for Education were recommending 17 CPC frameworks. ## **Dukefield Procurement** www.dukefieldprocurement.co.uk Framework partners to the CPL Group, Dukefield Procurement provide procurement resource and specialism in designated areas of spend. Dukefield Procurement lead on the procurement of several frameworks of which Crescent Purchasing Limited are the contracting authority. ## **Risk 2 Value** ## www.risk2value.com Framework partners to CPC Risk 2 Value provide expertise on insurance matters. Risk 2 Value support the work associated to insurance frameworks provided by CPC and also lead on any insurance tenders for Tenet Education Services customers. ## **UK Universities Purchasing Consortia (UKUPC)** ## www.ukupc.ac.uk The CPC work collaboratively with the Joint Contracting Group, a working group of UKUPC, to share knowledge and combine skills to produce best in practice framework agreements for the education sector. AR 2021/22 **| 39** We are an education owned **charity** that gives back to the sector ## Contact Us **Office telephone:** +44 (0)800 066 2188 **Office email:** info@cpl.group **Our address:** Procurement House, Unit 23, Leslie Hough Way, Salford. M6 6AJ. UK ## **Auditors** Haines Watts, Bridge House, Ashley Road, Hale, Altrincham. WA14 2UT. UK **Bankers** NatWest, Leeds City Office, 8 Park Row, Leeds. LS1 5HD. UK Ch3rFty Registration No. 1130461 Company Registration No. 06774578 IEn8land and Wale51 CRESCENT PURCHASING LIMITED ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022 Halnes Watts Chartered Accountants Bridge House 157 Ashley Road Hale Altrincham Cheshi>e WA14 2UT CRESCENT PURCHASING LIMITED CONTENTS Page Legal and administrative information Tru5tees' report Independent 3udltorfs report 10-12 Consolldated statement of fln3nckl activlties 13 Consolidated balance sheet 14-15 Consolldated statement of cash flows 16 Note5 to the financial 5tatement5 17-35 CRESCENT PURCHASING LIMITED LEGAL AND ADMINSTRATIVE INFORMATION CONSTITUTION Crescent Purchas5ng Ltd ICPLI Is a company Ilmited by guarantee ?nd a registered charity gtrvÈrned by Its metnorandum and article5 of as50Clation. CPL trades as Crescent Purchaslng Consortium ICPCI. The registered charity number Is 1130461 and the company number is 06774578. DIRECTORS AND TRUSTEES The Dlrectors of th& charltsble company l-the Charlty"l are Its trustees for the purpose of ¢harfty law and throughout this report are collectively referred to as the TrJsteÈs. The Trustees servlnB durlng the yearwere as follows.. Nomlnated Chalr A J Comyn, Oeputy Chief Executive & Chief Financial OffKer. Nottingharn College Trustees and Directors J C Bentley, Executive Director of Finance and Estates, Hopwood Hall College F BÈnslhem, Finance and Procurement Officer, College of West Anglia N Cassidy, Procurernent Manager, Cambridge Regional ColleEe (Chalr of Purchaslng Advisory Group) A J Comyn, Deputy ChiÈf Exocutlve & Chl&t Flnanclal Offlcer. Nottlngham College L Jenklns, Deputy Prlnclpal Finance and Resourtr5, North Kent College P Kane, Deputy Head of Estate, Belfast Metropolitan College (c￿0Pled with voting rights) J Howard. Director of Estates, Wakefield College D Lowe, Man4ging Director, CPL D N Pulleln, Vlce Prlnclpal- Flnance and Resources. Leeds College of Building Reglstered Office Procurement House, Unlt 23-25 Leslle Hough Way. Salford M6 6AJ. Audltors Halnes Watts, Brldge House. 157 Ashley Road, Hale. Altrincharn WA14 2Ltr. BankÈrs N3tWe5t, Leeds City Offi¢e, 8 Park Row. Leeds LSI SHD. Solicitors Weightmans LLP, Nol Spinn1ngfields, Hardman Square, Manchester M3 3EB Webslte www.rhec htt C.8c.uk rou CRESCENT PURCHASING LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 JUL Y2022 The Trustees present thelr report together with the consolidated fin3ncial staternents for the Charity and its Subsidiaries ft>rthe ye&rended 31 July 2022 which are also pr&pared to meetthe requiretnent5 forthe Directors, report for Companie5 House purposÈs. The legal 3nd admlnistr8tfve Informatlon Set out on page I forms part of thls report. The financial statements comply with the Charitle5 Act 2011. the Companies Act 2006, the Memorandum and Articles of Assoclation ènd Accounting and Reporting by CharltlÈs.' Staternent of Recotnmended Practlce appllcable in the UK 4nd Republic of IrÈland IFRS1021 (effective l January 20151. Vlsion and Mission The v15ion of the Charity is to be the procurement services partner of cholcÈforthe educatlon sectorand through its work, help the sector to enhance teachlng and leamlng. The mlsslon of the Charlty Is to provlde outstanding procurernent service5 to rnembers and cllents. Report of the T¥ustee$ C￿$(ent Purchasing Limited ICPLI was established in 1999 as Crescent FurthÈr EdutatSon LlmSted by the Universlty of ￿lf0rd to fatilltate collaborative purchasing in the Further Education sector. CPLwas establlshed a5 a charity in November 2009 following a buy out from the University of ￿lf0rd, to enable the Further Educgtion sector to opeiate and develop CPL and to promote prolesslonal purchaslng. CPL works to this end in collaboration with the Dep4rtrnent for Educatlon and Higher Educatlon and Unlversity Purchaslng Consortla. CPL also work5 in partnership with TUCO. a speclalist consortium for caterlng supplles and wlth Dukefleld Procurement on jolnt frameworks. CPL purchased Tenet EducatSon Se[vi￿5 ITenetl and Its wholly owned subsidiary Tenet Procurement 5ervlces (TPSI In 2017 and are Collettively known as CPL Group. The Board ofTrusteÈs con515ts of norniD3ted repiesentatbves of members colleges incorporatlng, four Dlrectors of Flnance. rhe Chalr of the Purchasinz Advisory Group IPAGI plus one norninated officer from PAG, two He8d5 of Estates and the Manaeing Olwtor. There have been no Board membership movements during the year. Trustee vacant1È5 arE &dvert15ed via social media channels and charityjob.co.uk. The￿ is a bespoke induction pack and progratntne for all new Tru5tee5. Trustee5 3re not paid for their services. The Board meÈts three times J year tg determine strategy and to monitor progress. Day to dzy administratlon of CPL Group 15 delegated to the Managing Director and his employee5. The group leadership team Is made up of six senior rnanagers, three from CPL and three from Tenet plus the Man8glng Dlrector. The pay and remuneration of key personnel is agreed annually £5 part of the budget setting process. Each post Is benchmarked aealnst simllar roles wlthln similar sized charitie5. On 31 July 2022 CPL had 8,968 members, an Increase in the year of 787. 170 have con*irmed thelr status as 'Qwner mernbers" ol thÈ ¢harStable ¢ompany* limited by guarantee. Membership consists primarily of English colleges, schools, acadetnie5 and academy trusts and there are 3150 institutions from Scotland, Northern Ireland 8nd W3le5. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT IINCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED31 JUL Y2022 Charitsble oble¢tlves The Chzrlt¢s object5 are to promote the Èflieiency and elfectlveness ol charltles and the effective use of charitable resources forthe benefit of the public by.. l. Providin to romote services lor furtheredu¢ation hl her oducatlon schools and other educational institutional bDdles ood ractlce and enhancÈ and im rove thelr rocurement actlvities. The CPC frameworks Continue to provlde excellent Value for Money for all members supported by è free helpdesk facillty and personal technlcal support from the field based Reglonal Procurement Advisor team. Thls Is supported by an outstandlng procurernent managed service Iwhlch In the year recorded EIO.7M of savings over contract terms for 43 customers) and on-demand tendering service5 provided byTenet. TheTrusteesarecomfflitted to ensuringthat any Èxcess surpluses are relnvested into theeduc4tion sector. Slnte 2019 £1 Mllllon has been Identified as Designated Fund5 for thÈ purpose of r&investment, £400,525 had bpen expended priorto the financial year wlth a further £367,959 spent during 21122. Re-lnvestment into the educatlon Sector take5 the form of several projects wlth the grant funding to Sponsor student eventslactivities generating particular interest. The first round of gr8nt funding during 2019120 saw £259k awarded to 33 institutions. The nètional lockdowns durSng the global pandemlc meant that no further Funding was posslble though. with the easing of restrictlOn5, 3 second fundlng -windovf was opened in Mav 2021. The result of the second round was £288k awarded to 68 insiitutions whlch was paid In the first quarter of thls flnancial year. The ¢ritÉrla for grantfundlng are dellberately wide In scope though the malorftyof appllcations thisyear fell into th￿e main themes.. Icr Hardware for disadvantaged learners. Learner wellbelng programmes Innovative learning technologyj namely around virtU81 reallty. ThÈTrust@es and CPL Group employees are proud of the contributlon they make to these causes. The Trustee5 each work in educationÈl institutSons which are member5 Of CPL and therefore beneflt from it5 services. Their instltutlons are therefore eligible lor grant funding. It IS Stated In the related party transactlQnS that no trustees sit on the evBIu3tion panel whlch reviews and approve5 funding applications and any gr8nt funding paid will be identif￿d 8nd listed in the financial statements. Another populor projÈtt is the subsldlsed fees for fenet on-demand services. Thls Is almed at those Institutions that may not normally access such a servlce. To date 157 subsldlsed tenders have been cofflpleted for 126 in5titutlons. Durlng the year, the Tenet on4emand team utlllsed £40k frorn the designated re5erve5 to run a prolect whlch providÈd a free tender revlew setvlce. 32 Institutions beDefitted from the service whlch focussed on catering services. 2. Adv8ncin ublished. education and r rement rovided that all the useful results arch are CPL Leaming If0￿edY c￿scent Learnlngl is the flagship underwhich the ch8rlty lulfils Its charStable oblectives In relation to advancSng education and research 3¢t￿ltieS In procurement. The Charlty contlnues to fulfil its commitment through the fundlng of free procurement courses with 3 party training providers for CPL metnber employees. Durlng the year 187 course5 were funded coverlng subjects such as writing a tender speclficatlon, ethical procurernent and 5uppIyp and developing and managing contracts. CRESCENT PURCHASING LIMITED TRVSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 CPL contlnues to provld@ full administrative and technical support to regional and national Procurement Advlsory Groups IPAGI and are maklng slgnific3nt progress in settlng up and supporting sitnilar groups speclflcally for Heads of Estate5 Wlthln educatlon Institutlons, Durfng the yearCPL Learnlng has developed a new webslte and Improved its branding and marketIngCam￿lgns. The reglonal and national Procurernent Advlsory Groups IPAGI have contlnued to dellver a comprehenslve agenda to members and are making slgniflcant progre55. These groups provlde an eKcellÈnt forum for tnerDbers to advance thÈlreducation through the translerof knowledgÈwith peers Irorn othereducatlon31 establSshments and provide feedback on new framework5 and procurement developments whllst enabling productive feedback on current servlces. CPL have continued to develop the FELP (Further Educatlon Llbr3ry of Procurementl which is a free access onlln learning resource portal for 211 members. The research undertaken by CPL Is published via the ITbrary in a variety of different templates and advlcelguldance documents. To compllment the library, all the CPL [raM￿Ork agreements have a comprehensive usÈr-guide with embedded templates and guldance documents to help the mernber utilise a framework with &ase. Through the work of CPL Learning there is an aspiration to conduct research durinB the 22123 year to dÈtermlnÈ the current level of dÈdlcated procurement resource across the education sector and identify their support needs. The findings from this research will bÈ used to further support the work of CPL Learnlng and ultimately advancethe educatlon of all members. One of the planned proposals Is to establish a Pmcurernent Development Prtsgramme, a new Initiative that wlll ralse the proflle of procurement within the education sector. CPL intends to engage with the Flnance Dlre¢torfs network and mernbers to Identlfy a cohort of procurernent champions to dÈliver the proBramme. Th& alm Is to enhance the procurernent knowledge of these ch8mplons by way ol a mentoring pro8ramme supportEd and funded by CPL Learnine. Thlswlll take the form of 121 mentorlng, trainln& acce55 to resouTces and networklng groups as well as work experience wlthln the CPL Group. The Trustees oversee the charltable obje¢tfves of the charitywith due reBèrd to the Charlty Commission's public benefit guldance. Flnanclal and busine55 review. CPL Group Incotne for the year ended 31 July 2022 was £4,660,48512021.. £3.945,5081. The year-ènd surplus before penslon costs was £41.11512021.. £63,7691. In respect of the year Ènded 31 July 2022 a glft ald payment of £245.00012021 £267,015) was ￿ceiVed from Tenet Education Services and £35,37612021.' E7,3161 from Tenet Procurement Servlces. The Charity participates In the West Yorkshire Pension Fund IWYPFI with Tenet empk)yees pgrticip3ting in the NEST penslon stheme. The WYPF penslon scheme v31ue as at 31 July 2022 has been determlned by the actu4ry which 15 now showlng the company as having a penslon asset as at 31 JU￿ 2022. In accordance with applicable èctounting standards, the 3SSÈt value has ￿en deemed to be recognisable on the b3SlS that the cornpany has expectations of reduced future employer contributlons at some polnt during the Ilfe of the plan. A￿hOUgh a penslon 3SSÈt is arisln& thi5 does not creare an ImmÈdiately re3llsable asset that can be expended for the speciflc purposes of the penslon fund. Marketing prerniurn income from framework usage h35 increased by £394k during the year. the flrst full year without Interruptlons brought 3bout by Coronavirus. 12 frèmeworks are currently 5ignp05ted by the Department for Edutation IDfEI. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JUIY2022 Tenet income from pro¢u￿rne￿t placements Increased by £149k durlngtheyear while thÈon-demand tendering servlce incre3sed Its Income by £114k. Tenet Procurement Service5 (TPSI which services the wlder public sector has seen Its most 3Ctlve year to date with significant Increase In CPL framework us38e, continued one-Dff tender provlsion and for the first tlme a managed servlce contract with a Housing A5SOtiatlon. Fundraislng-the charity d0È5 not generate income from fundraising atthi5 ¢urrenttlme and therefore doe5 not use the 5ernites of fundraisers either on a paid or voluntary basls. Lookin ah ad CPL Intendsto contlnue growth overthe comlng year5. A new, ambltlous and challenglnB 5-year buslness plan Is In the final stages ol development wlth 2 SUPPOrting budget rnodel. The three maln strategies within the bu5ine5s plan 3re'. To dellver outstanding procurement servlces To support the development of its people letDployÈÈs Ènd members) To enable a sustalnable future Iflnanci81, environrnent&l and economlclsoclall The flnancial strength of CPL ensures It can absorb the impact of the cost-of-living trisis and wlth no long-term liabllitles Iloan51 is not negatlvely Impacted by rises in Interest rates. Reserves pollcv CPL rnaintains a reserves pollcy that is available on it5 website. Thls sets out the level of reserve5 to be held by the company and the ￿aSonS why. Deslenated reserves are those reserve5 that the ￿ard of trustees have approved forthe purposÈ of -Giving back- to the educatiL)n sector. Post balan¢e sheet events There have been no events sintr the year-end that have had a significant effect on the Charlty's financial position. Envlronmental management At the start of the ye3r 3 Su5tainabllity Worklng Group was e5tabli5hed with employee volut)teers from acr05S the Group. Thls Is chalred by a mernber of the Group LeadershipTeam and has a aoard sponsor. The aim of the worklne group Is to set up and m>intain an effettive Envlronment Managetnent System IEM51 and Carbon Management Plan. The lrnplemenratlon of energy efficient measu￿$ will Ènsure the Group's carbon footprlnt 15 slgniflcantly reduced overthe next five years. ThÈ new 5-year buslness plan includes a detailed plan to achlevo ISO 14001- Environfflental tvianagement 8ccredltatSon within 3 years and go beyond net carbon emlsslons Icarbon offsetting). Buslness travel acr055 the arganisation has reduced following the national lockdowns as moTe meeting5, ill particular the Reglonal ProcurementAdvisors rneeting5 Wlth members are heldvirtually. A hybrid worklng model means that employees l)ased at the Head Office in Salford are only expected to work onslte for two days per week and can work from home for the remainder. Managed service contract customers are wllllng for Tenet employees to work on a hybrld basls. Soclal CPLcontlnue5 Its ggile working policy whlch allows employee5 to ch005etheir place of work within any customer contractual boundaries. Th1s has had a positive effect on both productivity and employee wellbelng. The company heèd office in S31ford remains partially occupied and is Predominately u*d as a hub for collaborative working with teÈms acr055 the Group. CRESCENT PURCHASING LIMITED TRUSTEES, RepoRT IINCLUDING DIRECTORS. REPORn ICONTINUEDI FOR THE YEAR EJVDED 31 JUL Y2022 CPL Group was very pleased to maintain its -Great Plèce to Work- accredltation for another year which runs alongside its current accredltatlonsfor Yop 100 Great Place towork for Women~ Yop IOOGreat Pla¢ÈtoWork lor WÈllbelng" and-Great Pla￿ to Work- UK'S best workplace" The new 5-year buslne55 pl?n contlnues the Groups "Grow Your Own. policy by Incorporatlng the recrultment of local gr3duate5 Into planned posltlons atros5 Several areas of the bu51ness. CPL GfOUP has made significant progress during the year in moving from natlonal to local suppllers for varlous servlces. Thls h8S a P051tive imp3ct on the local economy. The management and dlstribution ol designated reserves to mÈwber institutions in the form ol grznts Is led by the 'Glvlng Back" Group who enSts￿ that three main CTlteria are met. These are.. To help improvement5 to teaching and learning wSthin the organisatio To h4ve a positive impact on the learnÈls experience of education To support the learning of economically di￿dVantaged learners and tninority groyp5 Feedback from Instltutlons that hove received funding have been extreme￿ positwe and dernonstrate the dlfference CPL Group is having on the Ilves of young lÈarner5. Equèllty diversity and Incluslon IEDII The Trustees recognise that EDI Is key to helping deliver 3 public beneflt and contlnually rÉapprÈ5se a lull and comprehensive polScy of diversity inclusion and equbl opportunities. A working group has been formed and Is chaired by an employee. It will work on variou5 initiatives during the 22123 year whlch wlll support one of the Group's three strategies whlth 15 to 5UPPOrt the development of our people. Health, safety and employee wellbelng The Trustees arÈ aware ol thelr responsibillties on all matters relatlng to health and safety. The Chèrity has prepared detailed health and s3fÈty policles as well a5 a new 5-year health, safety 8nfl employee wellbelne strategy. A Board spon50r aversees the work that Is carrled out in relatlon to th55. The alm of thls strateEV Is to develop a positNe health. safety and WEllbping cultuie with coherent pollcles and procedures that are compliant wlth all appropriate he4lth and safety Standards. Further detalls are provided in this report undÈr Risk Management and Compliance checks. FurthÈrand 5UStalned Investment in employee wellbeing is a prSority, with the majorityoltheworkforce worklng remotely. A Wellness Group was set up during the year wlth employees from across the organisatlon with the alm of ensuring the new 5tr4tegy 15 achieved. Elght employees have been trJined 35 mental health flrst alders. GovÈrnance The Trustees are committed to the hlghest standards of Governance and recognise that thls Is only achleved through continual ImprovÈment. The Charity Governance Code is used as guldance. The Group Le3dershlp Team acknowledge th?t the organisation requires effective leadershlp at every level to achleve the Group'5 M15slon and Vlslon. A new traSnlng and developmÈnt programme for the Group Leadership Teatn will commence in the year ahead alongside one forall tnanagers within th& Group to support thern in their role. The Group has several c35h investments in Ilne wlth Its Treasury Management Policy, The Trustees requlre that all investments be carried out ethi1811y. CRESCENT PURCHASING LIMITED TRUSTEES, REPORT IINCLUDING DIRECTOAS, REPORTI ICONTINUEDI FOR THE YEAR ENDED31 JUIY2022 The Flnènc181 Controller fflonitors not only the credlt ratings of instltutlons the Group invests Its cash Into but also the environmental su5talnablllty performance of the listed instltutlons and reports on thi5 thfOU8h the managemeni accounts commentary. The envlronmental sustalnablllty performance is b3spd on four crlterla.. Environmental reportln& Carbon reportlng and man3gement, TranS￿r￿nCY and ethlcal lending and Company ethos. Internal controls a55urance The Trustees are responsible for ensurlng that its buslness is conducted In )ccordanTr with the13w and proper Standards, that the Charttws assets and money are safeguarded and properly accounted for, and that they 3re being used economically and effectively. A wlde range of Internal control mechanisms are in place and being operated to help the cornpany meet its strateglc objective5, to operate w1thln the law, to make effectlve use of the Charit¢s money and to ￿port activitlÈs atturately. These bring togpther inforfflation from all significant part5 of the business and provide assurance to the Trustee5 that an effectfve system of internal co￿trOl5 15 in plac@. The most significant sources are through.. The external auditors. Flnanclal and non-financial perforrnance monStorlng and management. Appropriate tommunlcatlons structures. Effectlve str3tegie5, policles and procedures.. and External stakeholders, Includin8 the Charity CommissSon and accreditation bodies. The rnain forms oFassur3nce are.. erational c EFFertSve recruitment and selection process Is In place to ensure suitable people are employed lincluding the cornpletion of Dlsclosure and Barring SeNice Chec￿ for employees working in educ3tional institutlonsl wlth senior m3n3gers ￿sponSIble for ensurlng that standards ol tonduct and behaviour are maintalned to the hlghest levels. Annual appraisèls (based around the Charlty's vision and values) and half year 5nterlm revlews, wlth regular team and one-to-one meetin8s undertaken to maintaln hlgh standards ol perforrnancE. HR processes a￿ in place to address any 83P5 or failings. Formal (but not exclusive tol Financial Policles and pro¢edures, Ir and Communications Acce55 Policyp Group Conduct, Data Protectlon Pollcyi Health and Safety Policy and Treasury ManagemÈnt Policy. Appropriate separatlons of duries are in place acr05s key tsperatlonal fur¢ctlons e.8￿> Pufchase order proce55 to mitlgate rlsks around fraud. Role based access controls are In place to ensure that employÈes only have access to Sy5terns and data that is pertlnent to thelr requirement5. Flnancial forecast5 3nd budgets are place which allow the Group Leadership Team to rnonitorspend In ierms of achlevlng budgets in the short, medlum and long term. Rlsk mana ement nd com Ilance check5 The Group LeadershlpTeam rnaintain a comprehenslve risk register. Risk5 a￿ collated underfour main headlngs.. Financial, assets, premises, H&S and charitsble status. Suppliers, partners, cornpetition, frameworks and all Group procurement servlces. Group opÈratlonal. legal and regulatory matters. Membershipi CU5tomÉrs, rep￿tatIonal issues and the rnarketplècÈ. CRESCENT PURCHASING LIMITED TRUSYEES, REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 The risk register land in partitular the "top 5" risks ￿entIfied below) 15 reported to every Board meetln& supplemented by detailed reviews throughout the year by the Group Leadershlp Tparn. The risk appetlte Is ieviewed during thls process. Rlsk Significant loss of Income Nature of RSsk and Rlsk Appetite SevÈre reduction in income due to increased compÈtltlon and loss of market share poses a rlsk to the buslness plan. R15k A etite- moderore Secure and r&slllent technology and proces5e5 3re fundamental In building a more reslllent busines5. Rlsk Ap etite uvoid F?ilure to reduce or remove threats to employee, customer and supplier health and safety l&atls to harm and reputational damage. RiskAppetite- ttvold Impact of malor disruption such as Covid-19 pandemic on the continulng oper3tlons of the business. Risk Appetite- moderat8 R￿1￿￿tMentand retention of talent is Èssentlal to the delivery of buslness oblectlves and the loss of skills and knowledge poses a challenge to maint8lnlng performance. Ri5kA etite- modemte Mitig8tlon Robust fin3ncial management processes are in placÈ wlth action plans identified should trigger points be met. RÈsÈrves policy ensures adequate reserves ère rnaintained. Compllance with Dat Protection External penetration testing of systems has been rorried out and wlll be donÈ annvally. The sewer Is now Èloud-based with daily routinÈ backups takln place. A health, safety and staff wellbelng strategy is in place with mandatory tralnlng for all employees. A wellness group ha5 been set up ta irnpleTnent an employee wèllbÈinE and en ement rogratnrne. A new Buslne5s Continuity Plan has been developed to provlde guldance and 5UPPOrt in the event of a major no-notice event. ThSs Is tested throu hout the year. Competitlve terms ind conditions wlth regular salary henchm8rking 5UPPOrts the Group's -Grow your Own" str4tegy. A bonus schefne to reward employees. Regular feedback Is received froffl employees vla Surve s and 121s. Compllance with health and s3fety Buslness continuity In the event of a major disruptlo Retruiting and A r3nge of surveys are undertaken of cu5torner satisfactlon and Èmployee 5atisfactlon. Includlng detallÈd analysis of thÈ results with action5 taken to address area5 of concern. There Is appropriats independent oversight of compllance within specific areasof the business such Bs Hezlth & Safety alld Data Protectlon. CPL Group has developed a new 5-year stratÈgy in relation to health, safety and employee wellbeing whlch is sponsored by a board member. The Group aspires to achieve ISO 45001 accreditation. CPL Group malntain5 Its "Great Place to Work. at¢reditatlon, Yop 100 Great Plate to Work for Women., Yop 100 Great Place to Work for Wellbeing" 8nd -Great Place to Work - UK'S best workplace.. CPL Group malntalns Cybor Essent1315 Plus accreditatlon. Durlfte the year, the Group comm5ss￿ned external consultant5 to perform penetration testing on It5 Svstems. This forms part of the Group'5 work toward achievirTrg ISO 27001 accredltatl(>n wlll be a regular event. A Board member sponsors a working group set up durlng the year to ensure CPL Group maSntalns full compliance with GDPR focusslng on continual itnprovement. lJ)ternal controls a$5urance Conclusion The Trustees can take assurance that the CPL Group15 reacting 3ppropriately to the thallenge5 It faces and has acted proactlvely to Identlfy, Investigate communicate Issues and manageTnent actions in èn acce55ible, transparÈnt tnannei. The TrustÈe5 C3D confirrn th3t the CPL Group has suitsble Internal controls for malntalning adequate accounting records, lor safeguarding the a55et5 of the Charlty. and for taking reasonable steps to prevent and detect fraud CRESCENT PURCHASING LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI ICONTINUEDI FOR THE YEAR ENDED 31 JULY2022 and other irregularitie5. They also conflrm that no weaknesse5 have bÈen Identified frorn the external audlt which would have re5uhed In material misstatement or loss and whlch would h3ve requI￿d distlosure In the linanciHI statements. Annual Kener81 meetlng The annual general meetlng will be held on 16th of November2022. The event will bp online via MicrosoftTehms. External audltors Haines Watt5 wère reappointed at the 2020 AGM for a three-year period. Statement ol the responsibilities of the Board of Trustees In relatlon to the Flnan¢lal Staiements Company law requlresthe Trustees to prepare financlal statements for each financial year whlch glve a true and Izirvlew of the st8te of affalrs of the Charity at the end of the flnaDcial yÈar and of Its SUTpIus or deficit for the Ilnanclal year. The Trustees a￿ requlred to: select sultable 3ccountlng pollcles and then apply them consist&ntly. Observe rhe method5 and printiples In the Charities StstemÈnt of recommended Practices ISORPI. Make judeements and estlmates that ire reasonable and prudent. State whether appllcable UK accountlng standard have been followed, Subject to any material departure dlsclosed and explalned in the fin3nc181 statements,. and Prepare the fin3n¢ial statements on the golng concern basls unless It Is inapproprlate to presume that the charity wlll contlnue in bu51nes5. The Trustees arÈ responslble for keeping proper accountlng records that di5c105è, wlth reasonable accuracy at any tlmo, the flnancial p051tion of the Charlty ènd to enablethern tgensure that the financial 5tatemÈnts comply wlth the Companie5 Act 2006.They are also re5PQllsible for safeguarding the asset5 of the Charity and the Group and hence t8king reasonable steps for the prevention and detectlon of fraud and other iTregularities. The Trustees are responsible lor thÈ Maintenan￿ and integrity of the corporate and financial Informatlon Included on the charftablÈ companws webslte. LeElslatlon In the United K1ngdom governlng the preparation and di5semin3tion of the financial staternents may differ from legislation In otherjurlsdiction5. In so faros each Trustee is aware-. There Is no relevant audif Informatlon of which the CharltV5 audltors are unaware: and The Board of Trustees have taken all step5 that It ought to have taken to tnake itself aware of any audit Informatlon and to establish that the auditors are aware of that information. Thi5 ￿PDrI of theTrustees was approved by the Board on 16 Novernber 2022 and signed on its behalf by.. AJ Comyn Chalr of Trustees CRESCENT PURCHASING UMITED INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 JUL Y2022 Opinion We have audited the flnancial 5taternents of Crescent Purch3slng Llmlted Ithe 'ch3rltVI for the year ended 31 July 2022 whlch Igrnprise the st3tement of flnancial activities, the balance sheet. the statement of cash flows and notes to the financlèl statÈn)ent5, including significant attounting policies. The financlal reportlng framework that ha5 been applied in their prepaiation is 3pplicable law and United Kingdotn Accounting St4ndard5, Including Financlal Reportinestandard 102 The Finoncfol Reportingstandard applicuble In the UK trnd Republlc of irelond Iunited Kingdom Generally Accepted Accounting Practice). In our oplnlon, the fin4ncial st3tements'. give a true and falr VIÈW of the State of the ch3rltable company'5 affair5 as at 31 July 2022 and of it5 Intoming resources and appllcatlon of resources, forthe year then ended,. have been properly prepared In accordance with Ljnlted Kingdom Generally Accepted Accountln Practlce,. and havo been prepared in accordance wlth the Tequlrements of the Companles Act 2006. Basls for oplnion We conducted our audit in accordance with International Standard5 on Audltlng IUKI IISAS IUKII and appllcable law, Our responsibilities under those st4ndards are further described in the Auditorf5 responslbllltles for tht audit of the finonclol sttstÈmentS section of our report. We are independent of the charlty In accordante with the ethlcal ￿QUireMents that are relevant to our audit of the financlal statèments In the UK, including the FRCS Ethlcal Standard. and we have lullilled ourother ethical rÈspoD5ibilities in accordance with these requirements. We believe that the audit evidence we have obtained 15 sufficient and approprlate to provlde a basis for our opinion. Conclu51ons relatlng to gDln8 concern In audSting the financial statements, we havÈ concluded that the Audltor USÈ of the EoinB concern basls of accounting in the preparation of the financial statements is appropriate. Based on the work we havÈ performed. we have not identified any rnBterial uncertalntles relating to events or condltions that. Individually or collettivÉly, tpay cast significant doubt on the chaTitV5 8bS1ity to contlnue as golng concern for a period of at least twelve months frorn when the financi31 st3tement$ are authorised lor Issue. However, because not 411 future events or conditlon5 be predicted. thls statement Is not a gu3rantee as to the charSty's ablllty to continu2 as a going concern. ThÈ Covid-19 vlfal pandemlc Is ono of the most significant e¢onornic events for the UK with unprecedented levels of uncertalnty of outtomes. It Is therefore dlfflcult to evaluate all of the potential implications on the tharitvs trade, cu5torners, suppliers and wlder ectsnomy. Our responslbilitie5 and the responslbllltles of the trustee5 Wlth respect to goln8 concern are descrlbed In the relevant sections of thls report. Other Informatlon The other Infortnation comprls&s the Informatlon included In the annu81 report other than the financial Statements and our audltorfs report thereon. The trustees are responsible for the other informatlon contalned wlthin the &nnual report. Our oplnion on the financlal statements does not cover the other Information and we do not express any form of a55urance conclusion thereon. Our responsibility 15 to read the other Information and. in doing 50, Consider whether the othÈr inform3tian is materi3lly inconslstent with the fiD4nclal statements or our knowledge obtained In the tour5e of the audit, or otherwise appe8rs to be materially mlsstated. If we identify such matÈrial incons1Stencies or apparent material rnisstaternents. we are required to determine whether this gives rise to a matÈrlal m15Statement in the financial statement5 thern5elves. If, based on the work we have performÈd, we conclude that there Is a materlal mi$5titement of this other Information. we are rÈquI￿d to report that fact. We have nothing to report in this rÈgaid. io- CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF CRESCENT PURCHASING IIMITED Matter5 on which we are required to report by exteptlon We have nothing to report in respect of the following matters In relatlon to whlch the Charltle5 (Accounts and RÈportsl Regulation$ 2008 ￿qUIreS us to report to you if, in our oplnlon: the informatlon given in thefinancial state￿ntS Islnconsistent In any materlal respectwith theAuditor report,. or sufficient accountSng records have not been kept,. or the financièl statements are not in agreement wlth the accounting records,. or we have not received all the InfO￿atIOn and explanations we requlre for our audlt. Responsibilitles ol trustees explalned more fully in the statement of Auditor responsibilitles the trustees. who are also directors of the charlty forthe purpose of company law. are responsible for the preparation ol the financial statement5 and for being satlsfled that they give a true and falr vlew, and for such int&rn31 control as the tfU5tees determine 15 necessary to en3ble the prepèratlon of financial staternents that are free from material mlsstatement. whether due to fraud or error. In preparin8 the financial statements. the trustees are responsible for assesslng the charity's ability to continue as a going concern. disc105in& a5 appllcable, matters related to golng concern and usingthe goingconcÈrn basis of accounting unless the trustees either intendto Ilquldate thecharitsble company or to cease operation5, or have no reallstic altematNe but to do so. Audltor's responslbllltles for the audlt of the flnanclal statements We have been appolnted as auditor under Socrion 144 of the Charities Acr 2011 and report in accordance with the Act and relevant regulations made or havlng effect thereunder. Our oblectlves are to obtain reasonable assurance about whether the financial statements as a whole are free from materSal m15Statement. whether due to fr3ud or error. and to issue an audltorfs report that Includes our opinion. Reasonable assurance is H high lev&1 of a55urance but is not a guarantee that an audlt conducted In accordantt with ISA5 IUKI wlll always detect a rnbterial mlsstatement when it exists. Mlsstatements can arise from fraud or error and are considered material if, individually or In the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financlal statement5. A further de5crlptlon ol our responsibllltie5 15 3vallable on the FinanclHI Reportlng Council's web51te at.. htt auditorsres onsi s. This description forrns part of our auditorfs report. li- CRESCENT PURCHASING LIMITED INDEPENDENT AUDITOR'S REPORT ICONTINUEDI TO THE TIILISTEES OF CRESCENT PURCHASING LIMITED Use of our report Th15 report 15 made solÈly to the charitfs trustÈes, as a body, In accordance with Part 4 of Charitie5 (Accounts and Reponsl Regulations 2008. Our 3udit work has been undertaken so that we might state to the chaiity's trustees those matters we are requlred to statÈ to the member in an auditorfs report and for tio other purpose. To the fullest extent permlttÈd by 13w. we do not atcept or assume responsibility to anyone other than the charity ?nd the charltwg trustee5 for our audit work, for this report, or for the opinions we have foTrned. Candlce Beynon FCCA (Senior Statutory Auditorl For and on behalf of Haine5 Watts IGlii/£oz. z Chèrtered Accountants Statutory ALsdltor Bridge House 157 Ashley Road Hale Altrincham WA14 2UT Haines Watts 15 eligible for appointment as audltor of the charity by virtue of its eliglbillty for appointment as auditor of a company under section 1212 of the Companies Act 2006. 12- CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JUL Y2022 Group 2022 GrDYP 2021 Charity 2022 Charltv 2021 Notes Income frorn.. DonatlOD5 and legacle5 280,376 274,331 4,650,073 3,928,717 2,737,820 2,237,533 10,412 9,077 7,011 6,204 7,714 4,375 Investments Other Income Total income 4,660,485 3,945,508 3.025,207 2,522,443 Ex enditure on.. Charitable aitivities 4.619.370 3,881,739 2,893,227 2,329,316 Net sncome for the yearl Net Sncomlng resource5 41,115 63,759 131,980 193.127 Other recoEnlserl gain5 and losse5 Actuarial gain on defined beneflt penslon schemes 3.164.(M)O 695,000 3,164.000 695,000 Net rnovement In funds 3.205,115 758,769 3,295.980 888,127 Fund balances at l August 2021 2.524,607 1,765,838 3.155,585 2.267,458 Fund balances 8t 31 July 2022 5,729,722 2,524,607 6,451.565 3.155,585 The statement of financlal actlvltie5 inrludes all galns and losses recognised in thÈ year. A51 income and expenditure derive from contlnulng actlvities. The Statement of financial activitie53150¢0mplles with the requiTement5 foran Intome and expenditure account under the Companie5 Act 2006. 13- CRESCENT PURCHASING LIMITED CONSOLIDATED BALANCE SHEET ASA T31 JUL Y2022 Group 2022 Group 2021 Charltv 2022 Char4ty 202L Notes Flxed asset5 Goodwill Intangible assets TanBlble asset5 Investrnents 13 14 15 16 240,000 57,700 53,514 365.0 72,810 63,145 57.700 39,164 1.377.962 72,810 54.427 1.377,962 351.214 500.955 1,474.826 1,505,199 Current assets Debtors sh at bank and In hand 18 1,285,657 4.288,311 1.046,102 3,836,276 938,438 3,969,300 755,230 3,542,394 5.573.968 4,882,378 4.907,738 4,297,624 Credltors.. amounts falling due wlthln one year 19 1687,4601 1666.7261 1422,9991 1455,2381 Net current assets 4,886,508 4,215.652 4.484.739 3,842,386 Net assets excludSng pension liability 5,237,722 4.716,607 5,959,565 5.347,585 Defined beneflt penslon surplus / 20 492.000 12,192,000) 492.000 12,192,(K)01 Net a$$etS 5,729.722 2,254,607 6,451.565 3.155,585 Income funds Unresrricted *und5- designated Unrestrlcted funds- general Unrestricted funds- pension 22 231,517 5,W6,205 492.000 599,476 4.117,131 12,192,000) 231,517 599,476 5,728,048 4,748,109 492.000 12,192.0001 5,729.722 2,524,607 6.451.565 3,155,585 14- CRESCENT PURCHASING LIMITED BAIANCE SHEET ICONTINUEDI ASA T31 JUL Y2022 The companyls entltled to the exernption from the audit requirement contained in 5ectlon 477 of the Cotnpanles Act 2006, for the year ended 31 July 2021, although zn audit ha5 beÈn carrled out under sectlon 144 of the Ch3rities Act 2011. No member of the cotnpany has deposited a notice, pursuant to sectlon 476, requlrlng an audlt of those lin3ncial statements under the requirements of the Companles Act 2006. The trustees acknowledge thÈlr responslbillties for ensuring that the charlty keeps accounting records which comply with sÈttion 386 of the Act and for preparlng flnanclal statements which givp a true and fair view of thE statÈ of affalrs of the company a5 at the end of the flnanc131 year and of Its Incomlng resource5 and applicÈtlon of resource5, includlng its Income and expendltuie, for the financial year ift accordance with the requirements of sectlons 394 and 395 and which otherwise comply with the requirernent5 of the Companies Act 2006 relating to flllanclal statetnents, so far as appSicable to the cotnpany. ThÈse fln3ncial statements have been prepared in accordance with the provisions applicable to companies subject to the Small companies regirne. The financial statements were approved by the Trustees on 16 Novernber 2022 A J Comyn Chair of Truste Company Reglstration No. 06774578 15- CRESCENT PURCHASING LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR fHE YEAR ENDED 31 JUIY2022 202Z 2021 Note5 Cash flows from opèrating activities Cash generated from operatlons 27 465.785 493,706 Purchasing of tanglb1e fixed a55ets 531É of fi¥ed 4ssets Interest recelvÈd 124,3111 149 10,412 120,8271 1.447 9.077 Net cash used In Investlng a¢tlvltles 113,7501 110,3031 Net cash used In Ilnanring artivltles Net increaselldecreasel In cash and tash equlvalÈnts 452,035 483,403 Cash and cash equlvalents at beginnlng of year 3,836,276 3,352,873 Cash and cash equlvalents at end of year 4.288,311 3,836,276 16- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL SYATEMENT5 FOR THE YEAR ENDED 31 JUL Y2022 Accountlng policie5 Charlty inforrnation Crescent Purchasing Limited is a private company Ilmlted by guarantee Incorporated In England and Wales. The rÈgi5tered office 15 Procurement House, Leslie Hough Wayi Salford, M6 6￿. The Crescent Group consists ol CrÈscent Purchasln8 Liffllted, TÈnet Educatlon Servlces Lifflited ènd Tenet Procurement Servlces Llmlted. 1.1 AccountinE ¢onvÈntlon The charlty constitutes a public benefit entity as defined by FRS 102. The financial st8ternent5 havÈ ￿en prepared in accordance with accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charltl&s preparing their account5 In accordance with the Flnanclal Reporting Standard 8ppllcable in that UK Republlc of Ireland issued in Ottober 2019, the Flnanclal Reportlng Standard 3pplicable in thÈ United Kingdom and Republic of Ireland IFRS 1021, the CharStles Act 2011 and the companles Act 2006 and UK Generally Accepted Accountlng Practice. The flnanclal statement5 are prepared In 5terfin& which Is the funttional currency of the charlty. Monetary amounts in these flnantlal statements are rounded to the nearest £. The financial statements have been prepared underthe hlstorlcal cost convention. The prSncipal accounting pollcles adopted are set out below. Thls Charity Is a qualifying entity for thÈ purpose of FRS 102 and the Charlty SORP. bein8 a rnember of group where the parent of that group prepares publicly avallable consolidated finaneTal statements which are intended to give a true and fair view lof the assets, liabilities, financiHI posltlon and profit or lossl and that member is included in the consolidation. The charity ha5 therefore tèken the advantage of exemptions from the following disclosure requirements lor parent company information presented wlthin the consolidated financial 5t3tements. Secuon 7 'Ststement of Cash Flows,: Pre5entatlon of a ststement of cash flow and related notes and disclosures Section 33'Related Party Disc105ures' Compensation for key manaEement personnel. 1.2 Golng concern At the time of approving the flnancSal statements. the trustees have a reasonable expectatlon that the charity has adequate resourtes to continue In operational exlstence for the f0￿See3b1e future. Thus, the trustees contlnue to adoptthe going concem basls of accountln8 In preparlng the flnancial statetnents. 1.3 Charltable funds Unrestrlcted funds are avallable for use at the dlscretion OF the trustees in furtherance of thelr charitable obiectlves unless the funds have been designated for other purposes. Restrlcted funds are subject to specifK conditlOn5 by donors a5 to how they may be Used. The puip05e and U5e5 of the re5trlcted tunds are Sel out in the notes to the financial statements. EndowmÈnt funds are subject to specif1¢ condStlons by donors that the capital must be maintalned by the charity. 1.4 Incomlng re50urce5 Income15 retognlsed when the charity is legally entltled to it after any performance conditions have been met, the amounts can be rnÈÈsurÈd rellably, and it 15 probable that income will be recewed. 17- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Accounting policies (Continuedl sh donations are reiogni5ed on receipt. Other donations are recogni5ed once that charlty has been notlfled of the donation unless performance conditions require deferral ol the amount. Income tax coverable In relatlon to donations received under Gift Aid or deeds of toven3nt is recognised at thè tim of the donatlon. LeEacies are recognised on recelpt to otherwise is the charlty hasbeen notlfied of an Impendlng dlstrlbution, the amounts is known. and receipt is expected. If the arnount Is not known, the le￿£V is tre8ted as contingent asset. Interest on funds held on deposlt Is included when recelvablè and the amount can be measll￿d rellably by the charity, thls is normally upon notificatlon of the interest paid or payable by the b3nk 1.5 Resources expended ExpÈfiditure is included wlthln the Staternent of Financial Actlvities on an accruals basis. Irrecoverable VAT has been char8Èd 15 a cost against the attivity in whlch the expenditure was incurred. All expÈ￿ditu￿ is 501ely for the purpose of athieving the charltles objectives 3nd has been dSs¢losed within those cost categorles. Governance ¢05t5 are recognised when, and to the extent that. the charity can identlfy actlvitles In which 8re associ3ted with the general running of the charlty, 45 opposed to belng dlrettly associated wlth Its Support costs are recognised when the charlty can identlfy centrali5ed services that benefit all area of the charity's operation5. 1.6 Intongible fixed assets soodwill Goodwlll represents the excess of the t05t of acqulsltlon of unlncorporated businesses over the falr value of nÈt a55ets acquired. Its it Initially reco8nised as 8n 8sset at tost and issubsequently measured at C05t less accumulated amortisation and accumulatÈd itnp3irrnent losses. Goodwill shall be consldered to havea finite useful lrfe and shall be amortlsed on a systematlc basis over it51rfe. 1.7 Intanglble Ilxed assets other than goodwlll Intaneible asset5 4cqulred separately from a buslne55 are recognlsed at ¢95t and are Subsequent￿ measured at cost less accumulated amortisatlon and accumulated irnpairment105ses. Intangible assets acqulred Dn business comblnatlons are recognlsed sep3rately from goodwill at the acqulsition date where it is probÈble that the expected future Èconornic benefits that are attributable to the asset will flow to the entity and the cost or valu& of the &55et can be measured rellably. AMorti￿tron Is retognised 50 as to write off the cost or valuation ol assets le5S their resldual values over theSr useful Ilves on the following bases.. Customer relatlonshlp BrBnd Cloud-based server up to 8 years up to 8 years Over S years 1.8 Tangible fixed asset5 Tan￿ble fixed assets are Inltially rneasured at cost and subsequently rnezsured at cost or valuatlon. net of depreclatlon and any Impairment losses. Depreclatlons is recognlsed so as to wrltÈ off the cost or vzlu8tlon o1855et5 less their rÈsldual value over their expected useful IlvÈs on the following bases.. 18- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 l. Accountlnz pollcles Icontinuedl Leasehold ifflprovements Plant and equlpment Flxtures and fittings Over the Ilfe of the lease Between 3 and 6 years Over 5 years The gain or1055 arisingon the dlsposal of an asset 15 determlned as the difference betweÈn the sale proceeds and the carrylng value of the asset and is recognlsed in net incomellexpenditurel forthe year. 1.9 Impairment of fixed asset5 At each reporting end date, the charlty revlews the carrylng amounts of Its tanglble and intanglble assets to determine whÈthÈr there is any Indication that these assets have suffered an Impairment Ioss. 11 any Such Indicatlon exlsts, the recoverable atnount of the asset Is estimated In order to determine the extent of the Impalrrnent loss Ilf any). Intanglble a5setS Wlth Indefinlte useful lives and intanglble assets not yet available for use are tested for ImpairrnÈnt annu311y, and whenever there is an indlcation thzt the asset may be impaired. 1.10 Fixed assÈts Investment5 FlxÈd 8sset investments a￿ initlally measured at C05t and subsequently measured at cost less any accumulated imp81rment losse5. The investments are assessed for Impairment at each reporting date and any Impairment 1055es or reversals OF impalrrnent losses are recognlsed immediately In net incoMe/le¥pendltu￿} for the year. 1.11 Cash and ¢ash equlvalents Cash and cèsh equlvalents inrludÈ cash in hènd, deposits held at cèll wlth banks, other shirt-tÈrm liquld Investments with original maturltles of three months or less. and bank overdrafts. Bank overdrafts aTe shown within borrowlngs in current liabilities. 1.12 Finantlal Instrument5 The charity ha5 elected to appfy the provlslon5 of Sectlon 11 'Baslc Financial Instruments, and Section 12 'OthÈr FSnancièl Instruments 155ues' of FR5102 to all of It5 linantlal Instruments. Fln3nclal Instruments are recognlsed In the charltws balance Sheet when the charity becorne5 party to the contractual provislon of the instrument. Flnanclal assets and liabilities are offset, with the net arnounts presented in the financial statements. when there is a legally enforceable rlght to set off the rÈtognised arnounts and thorÈ Is an Intentlon to Settle on a net k￿S￿S or to reali5e the a55et and settle the liability 51multaneously. Bo5icfinon¢lolossets Baslc flnancial assets, whlth Include debtors and cash and bank balance5, are Inltlally measured at trans3Ction prlce Including transactloD costs and 3re subsequÈntly carried at amortised cost using the effectlve Interest fflethod unless the arran8etnent constltutes a lin3Dcing transactlon. where the transaction is measured at the present value of the future receipts dlscounted zt a market rate of intÈrest. Fln3nclal assets classified as recelvèble within one VEar are not amortised. Boslcflnunciolliubilitles Basic financial liablllties. including credltors and bank loans are InltI811y recognised at transoctlon prlce unless the arrangement constitutes a financinÈtrans3Ctlon, where the debt Instrument Is measured at the present V31ue of the future payments dlscounted at a market rntÈ of Interest. Flnsncial Ilabllities classlfted 8s payable within one year not amorrised. 19- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUIY2022 Actounting policies Icontlnuedl Debt in5trufflents ar& subsequently carried at amortlsed cost. using the effectlve interest rate method. Trade Creditors are obligatlon5 to p4y for goods or servlce5 that been acqulred in the ordinary course of operatlons from 5uppllers. Amounts p8y3ble are classified èscurrÈnt liabilities if payment Is due within one year or less. 11 not, they are presented as non-current Ilabilltles. Tr3de credltors are retognised initially at trans8Ctlon price and subsequently measured at amortlsed cost uslng the effectpie interest method. Derecognltlon oflinonciul liabilities Flnancial li3bilities 3r& d@￿cOgnised when the ch3rlVs contractual obll83tlons ÈKplre or are dlscharged or c3ncelled. 1.13 Employee beneflt5 The cost of any unu*d hollday entitlement Is recognised in the period in whlEh the employee's setvlces are retelved. rermlnation benefits are recognised immed13tely as an expense when the charlty is demonstrably committed to terminate the employment of an etnployee or to provlde terminatlon benefits. 1.14 Retirement beneflts Payment5 to defined contrlbutlon retlTement benefit sthemes are charged as an expensÈ as they fall due. The cost of provlding beneflts under defined benef￿ plans 15 determined sep3ratelyfore3ch plan usingthe projected unlt crÈdlt method and Is based on attuarial advice. The change In the net deftned beneflt Ilability ar151ng from employee setvlce durfng the year Is retognispd a5 an etnployee costs. The cost ol plan Introductlons, benefit changes, s&ttlements and curtailments are recognised as in£urrÈd. The net interest element is determined by rnultiplying the net deflned benefit liability by the discount rate, taklng into account any changès In the net defined benefkt liability during the perlod 35 3 result of contrlbutlon and beneflt payments. The net Snteiest is recognised in in£omÈ/lexpenditurel lor the year. Re-measurementch3nges comprlse acruarial gain5 and losses, the effect of the asset£eiling3nd the return on the net defined beneflt Ilability excluding amounts included In net interest. ThesÈ a￿ recognised immedlately in other recoEnised gains and losses in the perlod In whlch they occur and are not reclassifled to income/lexpenditurel In subsequent periods. The net defined benefit pension asset or li8biiity In the b31ance sheet comprlses the total for each plan of the prevent value of the defined benefit obli8ation lusing a dlscount rate b35ed on high quallty corporate bonds). less the fair value of plan assets out of which the obligations are to be Settled directly. Falrvalue Is based on market prlce Information. and In the case of quoted securltlÈs isthe published bid price. The value ol a net pension bÈneflt a55et 15 limired to the amount that may be recovered either through reduced contributlons or agreed refunds from the schetne. 20- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JULY2022 AccountlnB pollclÈs Icontlnuedl 1.15 Basis ol con5011datlon In the parÈnt company fin8ncl21 statements. the cost ol a bu5ine5s comblnatk)n Is the falr value at the acquisition date olthe asSÈt£ Èiven, equlty instruments Issued and Ilabllltles incurred ora55Utnedi plus costs directly attributable to the business comblnatlon. The excess of the cost of a business comblnation over the fair value of the identifiable as5et5, liabilitles and contingent liabilitie5 acquired 15 recognlsed as goodwill. The cost of the combination includes the estimated 3mount of tontlngent consideration after the 8CqUlSltion date. Provisional l£1r value5 recoEni5ed for business combinations in the previous perlods are odjusted rÈtrospectlvely forfinal fairvalues determined in the 12 rnonths followingthe acquisition date. Investments in subsidiaries. joint ventures and associates a￿ accounted for at Costs less impalrtnent. The consolldated flnanclal statements Incorporate those of Crescent Purchasing Llmlted and 411 of its subsldlarles lie entlties that the group controls through ￿t$ power to 8overn thÈ financial and operatlng pollcSÉs so as to obtaln econornic benelltsl. Subsidiaries atquirÈd durlng the year are consolid3ted using the purchase rnethod. Their result$ 3rÈ Incorporated from the date that control passes. All financial staternents ère made up 31 July 2022. Where appropriate. adjustment5 are madÈ to the financial 5tatement5 of subsld13ries to bring the accounting policie5 Used in Ilne wlth those used by other members of the eroup. All Intra-group transactions, balances and un￿alISed Ealns on transactlons between group cornpanies ar eliminated on coD501idation. Unreallsed losses 8re 81so eliminated unlessthe transaction provldes evidence of an impalrment of the asset transferred. Tenet Educatlon Servlces Llmlted and Tenet Procurement Service5 Limited hav& been included in the group financ131 statements Using th2 purchasing tnethDd of accounting. Accordingly, the group 5tatEments of financi31 activitie5 and statement ol cash flo￿ include the results and ￿sh flows ol Tenet Education Services Lirnited and Tenet Prorkjrèment SeNices Limited. Critical accounting estimates and judgements In the 8pplication of the ch3rit¢s accounting pollcles, the trustees are requlred to make ludeements, e5timate5 and assumptlons about the carrylng amount of assets and liabillties that are not readlly apparent from other sources. The estimates and a550Clated assvmptions are based on hlstorical experience and other factor5 that are ¢onsldÈred to be relev8nt. Actual results may differ from these estimates. The estimate5 and underlying a55umptlons are reviewed on an ongoing ba515. Revislons accounting e5tirnatEs are recognised in the period in which the e5tini3te is revlsed where the revision affect5 only that period, or in the period olthe revision and future periods where the revision affects both turrÈnt and future period5. During the current or pretedlng flnancial statement5, no crltlcal judgements or estlmates were used in the preparatlon of these financial st&tements. 21- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAI STATEMENTS ICONTINUEDI FOR fHE YEAR ENDED 31 JUL Y2022 Charltable a¢tl¥itles Grts￿P 2022 Group 2021 char￿1V 2022 Charity 2021 Market5ng premlums Se￿Ice5 rendered Other income 2,452,931 2,118,685 78,457 2.058,857 1,864,370 5,490 2,412,784 2.055,067 325,036 182,466 4.650.073 3,928,717 2,737,820 2,237,533 Investments 2022 2021 InterÈst receivable 10,412 9,077 All of the Group's investment Income of £10,41212021.. £9,0771 ari5e5 in Crescent Purchaslng Llmlted from money held in Interest bearing deposit accounts. other Income 2022 2021 Coronavlrtss job retention scheme 7,714 22- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Charitable activlties Group 2022 Group 2021 Charlty 2022 Charity 2021 Ernployee c05t5 Occupancy costs Telephone P05tagÉ and stationery Insurance Legal costs Travel costs Recruitment and tralnlng Marketlng and advertisine Crescent lÈarninB Procurement partner and Member shared Income ealth. safety and employee we11belng Con5uhancy fees Provlslon for bad debt5 Bank charge5 Other expendlture ICT costs 2,811,756 77,445 19,272 6,178 49,819 15,046 55,520 47,142 117,134 8.600 2,697.114 69.676 24,856 5,234 38.225 314 11,954 47.912 32,109 4,165 1,235.303 77,445 14,330 4,639 49,819 3,381 14,628 42,966 115,909 8,600 1,253,009 69,676 16.036 3,221 38.225 314 499 37,637 24,165 4,165 13,569 7.046 17,136 789 2,669 6,152 71,269 10.529 3,093 11,581 125,6161 2.971 15,725 43.127 113,569 5,747 1,600 789 1,555 5.196 47,772 103,351 3,093 6.391 125,6161 1,839 13.270 32,253 3,326,542 2,992,969 1,743,248 1.581,528 Gr3nt Fundlng Activitie5 l*e note 71 367,959 68,133 367.959 68,133 Share of support costs Isee notÈ 81 Share of governancÈ costs Isee note 81 899,019 25,850 797,840 22.797 766,550 15,470 664,552 15.103 4,619,370 3.881,739 2.893.227 2,329,316 Analysls by lund Unrestricted lund5- genÈral Unrestricted funds- designated 4,251,411 367,959 3,813,[￿6 68.133 2.525.268 367,959 2,261,183 68.133 4.619.370 3,881,739 2.893.227 2,329,316 23- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENT5 ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 Grant funding activitie5 Reinvestment activitlP5 payable into the education sector isexpendlture madÈfrom the charSty's deslgnated funds towards agreed projÈtt5 detailed in the Trustees rpport and note 22. Thls expenditure falls outslde of standard operational r05ts and may lead to defltits in 50tne years. The operatlonal surplus that would have b&en stated had this reinvestment Into the sector not happenÈd Is shtswn. Group 2022 Group 2021 Charity 2022 Charity 2021 Net income for the year ExpÈndlture from designated funds 41,115 367,959 63,769 68,133 131.980 367,959 193,127 68,133 Operatlon31 surplus 4￿.074 131,902 499,939 261,260 Group support C05t5 Support Governance Cost Costs 2022 2021 Basls of 411ocation Employee costs Oepreciation and amortlS8tion Audit fees Legal and professlonal Accounting service5 725,116 725.116 625,849 Administration support 173,903 173,903 8,000 10,490 7,360 171.991 10.425 Governance 5,483 Governance 6,889 GovernancÈ 8,000 10,490 7,360 899.019 25,850 924.869 820,637 Analysed between 899,019 25,850 924,869 820,637 Governance c05ts includes payments to the auditors of £8.(K)012021.' EIO,4251 foraudlt fees. Charlty Support Governance Cost costs 2022 2021 Ba51s of allocatlon Employee costs Depreciation and arnortisation Audit feÈs Legal and prof&sslonal Accounting 5ervice5 725,116 725,116 625,849 Admlnistration support 41,434 41,434 5,000 6.915 3,555 38,703 6,925 Govemance 4.982 Governance 3.196 Governan 5,000 6,915 3,555 766,550 15.470 782,020 679.655 Analysed between 766,550 15.470 782,020 679,655 Governance costs Includes payment5 to the audltors ol £S,00012021.. £6.9251 for audit fees. 24- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED3J JUL Y2022 9. Net Movement In funds Group 2022 Group 2021 Charltv 2022 Charity 2021 Net movement in funds Is srated after chargin8llcredltlnEI Fee5 payable to the company's 2udltor for the audlt of the cornpan¢s flnanclal 5taternents Operating lease costs Depreciation of owned tangible flxed asset5 Amort15atlon of Intangible as5et5 10,425 42,082 33,298 138,693 5.000 42,747 26,324 15,IlQ 6,925 42,082 25,010 13,693 42.747 33,793 14D,110 10. Tru5lÈÈS None of the trustees lor Ony persons connected with them). except for the M3nagine Director, recebjed any r@muneration durlng the year. Trustees were relmbursed travelllng expenses in the yearol £29512021.. nill. Please see note 11 forfurther dlsclosure of remuneration of key management personnel. 11. Émployees Number of Èmployees The average monthly numberemployees during the year were.. Group 2022 Number Group 2021 Number Charity 2022 Number Charity 2021 Number Professional and admlnlstratlve 74 66 36 31 Employment COSts 2022 2021 2022 2021 Wages and salaries Social securlty costs Other pension costs 2.609,074 278,162 649,636 2.455.395 254.732 612,836 1,232,126 128,692 599,601 1,189.970 122.947 565,941 3,536,872 3,322,963 1,960.419 1.878,858 Included wlthln other pension costs are current 5ervites costs and associated Interest expense on deflned benÉflt pens1on plan5. Duringthe year. the company recognised current servlce costs and Interest expenses from defined benefit pension plans of £480,0001£2021'. £462,000). Included within support costs are wage5 to the value of £725,116 for the Human Resources, Finance and Communications departments through vlrrue of shared service to all the charitable activities. 25- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 11. Employees lcontinuedl The number of employees whose annual remuner8tlon was £60,000 or rnare Group 2022 Number Group 2021 Number Charltv 2022 Number Charity 2021 Number Directors Employees DèrrÈn Lowe Imanaglng Dlrectorl is the only key management personnel a5$0ciated wkh the direct running of the charity. Darren Lowe was paid tot31 remuneratlon of £J09,71512021.. £111,722). The remuneration for Darren Lowe was provided in his c8P3clty of Mana8lng Director of the charitable activlties and not in his capacity of trustee ol the charlty. Included withln total rÈmuneTatlon were penslon contrSbutlons totalling £9,22912021.. £8,739). 12. Taxatlon The tharity Is exemptfrom taxon incom& and g4in5 fallingwithln section 505 of thetaxes act 1988orsection 252 01 the Taxation of Chargeable Galns Act 1992 to the extent that these a￿ applied to its ch4ritable objects. 13. Group intangible Ilxed asset5 Goodwill Customer relation5hlp Brand Total C05t At l August 2021 and 31 July 2022 1,804,474 69,003 366,523 2,240,000 Arnorti58tion and Impairment At l Aueust 2021 Amortisation charged forthe year 1.602,236 70,000 43,254 8,750 229,510 46,250 1,875,000 125,000 At 31 July 2022 1,672,236 52,004 275.760 2,ODO.DOO Carrylng amount At 31 July 2022 132,238 16.999 90.763 240,000 At 31 July 2021 202,238 25,749 137,013 365,000 26- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUIY2022 tharlty IntanEible Ilxed assets Goodwlll Cost At l August 2021 and 31 July 2022 1,250.000 Amortlsation and impalrment At l August 2021 Amortisation charged forthe year 1.250,000 At 31 July 2022 1,250,000 CarryinE amotjnt At 31 July 2022 At 31 July 2021 14. Group other Intanglble fixed assets Customer relationshlp management system Cloud based server Total Cost At l August 2021 and 31 July 2022 80,492 8,500 88,992 AmortSsatlon and Impa5rment At l August 2021 Amorusation charged for the yeaF 15,899 13,410 283 1,700 16,182 15,110 At 31 ju￿ 2022 29.309 1,983 31,292 Carrylng amount At 31 July 2022 51,183 6,517 57,700 At 31 Juty 2021 64,593 8,217 72,810 27- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED31 JUL Y2022 Charlty intanglble flxed assets Customer relatlonshlp management systÈm Cloud based Total server Cost At l August 2021 and 31 July 2022 80.492 8,500 88,992 Amortlsatlon and Impairment At l August 2021 Amortlsation charged for the ye4F 15.899 13.410 283 16.182 15,110 1.700 At 31 July 2022 29,309 1,983 31,292 CarrylnB amount At 31 July 2022 51.183 6,517 57,71K) At 31 ju￿ 2021 64,593 8.217 72,810 15. Group tanEible fsxed asset$ LÈasehold Improvements Plant and Flxtures and equipment Totgl Cost At l August 2021 Additions Less Disposals 58.757 55,670 24,311 117,9381 29,417 143,844 24,311 117,9381 At 31 July 2022 58,757 62,043 29,417 150,217 Depretlation and Impalrment At l August 2021 Depreciation charBed in the year Less disposa15 30.187 9,795 35,350 18,115 IL7,7891 15,162 5.883 80,699 33.793 117.7891 At 31 July 2022 39.982 35.676 21,045 96,703 Carrylng amount At 31 July 2022 18,775 26,367 8.372 53.514 At 31 Juty 2021 28,570 20,320 14,255 63,145 -28- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENT5 ICONTINUEDI FOR THE YEAR ENDED31 JULY2022 Charlty tan6lble Ilxed asset5 Leasehold improvements Plant and Flxtures and equlpment fittlngs Total C05t At l August 2021 Addltions Le55 Qi5posals 58,757 29,836 11,210 17,8501 29.417 118,010 11,210 17,8501 At 31 July 2022 58,757 33,196 29,417 121.370 Depreclation and impalrment At l August 2021 Depreclation charged in the ye3f Less disp05als 30,187 9,79S 18,234 10,646 17,7011 15,162 5.883 63.583 26,324 17,7011 At 31 July 2022 39,982 21.179 21,045 82,206 Carrying amount At 31 July 2022 18,775 12,017 8,372 39.164 At 31 July 2021 28,570 11,602 14.2SS 54,427 16. Charltyflxed asset Investment5 oiher Investments Cost or valuatlon At l August 2021 & 31 July 2022 1,377,962 Carrylng amount At 31 JIAly 2022 1.377.962 At 31 July 2021 1,377.962 2022 2021 Other investments Colnpr￿se'. InvestmÈnts In subsidiarie5 1.377,962 1.377,962 17. Financial instrument5 Group 2022 Group 2021 Charity 20Z2 Charity 2021 Carrylng amount of Ilnanclal assws Debt instruments rne3surÈd at amortised cost 422,799 320,592 90,430 54,630 Carrylng amount of finan¢lal Ilabllltie5 Measured at afflortlsed cost 414,285 429,103 323.013 352,664 -29- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 18. Debtors Amounts falllng due within one year: Group 202Z Group 2021 Charity 2022 Charity 2021 TradÈ debtors Arnounts owed by 5ubsidlary Other debtors Prepa¥ments and accrued Income 416,099 317,721 25,132 61,270 4,028 848,008 51,743 16 2.871 700,600 6,700 862,858 2.871 725,510 1,285,657 1,046,102 938,438 755,230 19. Creditors.. amouNs falllng d￿e wlthin one year Group 2022 Group 2021 Charttv 2022 Charity 2021 Other taxation and Social 5ecurlty Trade creditors Arnoullts owed to subsidiary Other treditors Accruals and deferred Income 273,175 43,532 231,345 73.095 99,986 41,422 1,143 28,021 252,427 102.424 68,010 32 8,238 276.534 39,802 330,95L 15,492 346,794 687,460 666,726 422,999 455.238 Deferred Income within the charity relates to supplier sponsorship of the CPL vlllage within external exhlbltlons, narnely the Schools and Academles Show ISAA51. During the pandernic these were postponed or held virtually. ThÈ balance of E5,000 wlll be utilised In the November 2022 SAAS. The deferred income of £1,800 within the Group subsidlary relates to a delay untll DetÈmber 2022 In a project whlch had been Snvoiced during the year. Deferred income Group Charity balance at l August 2021 Released from prevlous years Resources deferred In the year 30,200 30,200 125,2001 1,800 125,2001 Balance at 31 July 2022 6,800 5,000 20. Deflned benelit penslon surplus / provlslon for Ilabllltles The WYPF pension scheme value a5 èt 31 JUFY 2022 has been determlned by the #ctuary which 15 now 5howlng the company as having a pension asset as at 31 July 2022. In accordance with applicable accounting standard5, the asset ￿luÈ has been deemed to be recognisable on the basis that the company ha5 expectatlons of reduTrd future employer contributions 3t some polnt during the life of the plan. Although 8 pÈnsion asset Is arlslng, this does not create an ImmediatÈ￿ realisable asset that can be expended for the speclflc purposes of the penslon fund. 30- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUIY2022 Group 2022 Group 2021 Charliv 2022 Charlty 2021 Retirement benefit asset / obllg4tlons Note 21 492.000 12,192.0001 492,000 12,192.0001 492,000 12,192,0001 492.0(Xl 12,192,000> 21. Retlrement benÈflt schemes Dellned conlTibutlon schemes The charity operatÈs a defined contrlbution pension scheme for311 quallfyln8 employees. The asset5 of the scheme are held separatoly from those of the charity In an Independently admlnlstered fund. The charge to profit or loss In reS￿ct ol defined contrlbution schems was f 71,00012021.. £47,000). Deflned benellt schemes Key assumptions 2022 2021 Discount r8te Expected rate of increase ol pensions In payment Expected rate of salary increases Inflatlon assuMptSon ICPII 3.40 2.50 3.75 2.50 1.70 2.50 3.75 2.50 Mortallly 055umptlons The 455umÈd life expectations on retirement at age 65 are.. 2022 Years 2021 Years Retlring today Males Females 21.8 24.6 21.9 24.7 Retlring in 20 years - Male5 Females 22.5 25.7 22.6 25.8 Amounts recognlsed in the profit and 1055 account.. 2022 2021 Current Service cost Net Interest on deflned beneflt liabiiityllassetl Other costs 3nd Income 563,000 530,000 107.000 81,000 171.<￿0) 147,0001 Tot31 costs 599,000 564,000 -31- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEOI FOR niE YEAR ENDED 31 JUIY20Z2 Amounts taken to other comprehensive income- 2022 2021 Actual retum on scheme assets 1442.0001 1626.0001 Return on scheffle 3sset5 excluding interest Intorne Actuarial changes relBted to obligations I442,￿0) 1626,0001 12,722,000) 169,0001 The amounts included In the balance sheet arising from the charity's obllgation5 in respett ol defined benefit plan5 are a5 follow5: 2022 2021 Present value of defined benefit obllgatlons Fair value of plan assets Isurpluslldeflclt In scheme 4,185,0(K) 6,397.000 14,677,000) 14,205,0001 1492,0001 2,192,000 MovÈments in the present value of defined benefit obligatlons.. 2022 2021 Liabllities at l August 2021 Current servltr cost Benefits paid Contrlbutlon5 frorn scheme members Actuarial galns and105ses Interest cost 6.397,000 563,000 1234.0001 74,000 12,722,000) 107,000 5,665.OCM) 530,000 119,000 71,000 169,0001 81,CK)O At 31 July 2022 4,185.000 6.397.WO The deflned benefit obligatlons arise from plans whlch are wholly or partly funded. Movements In the falr value of plan assets.. 2022 2021 Falr value of asset5 at l August 2021 Return on plan a$5et5 lexcluding amounts included In net) Beneflt5 Contributions by the employer Contributions by scheme members Other 4,205,000 442,000 1234,0001 119,000 74,Th)0 71,000 3,240,000 626,000 119,000 102,000 71,000 47,000 At 31 July 2022 4,677,000 4.205.000 32. CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THF YEAR ENDED 31 JUL Y2022 The falr value of plan assets at the repDrtlng period end w8s as follow5.. 2022 2021 Equity instruments Debt Instrument5 Property Cash Other 3,709,000 524,000 187,000 187.000 70,000 3.368,(K>O 521,ODO 156,000 97,000 63,000 4.677.OCQ 4.205.000 22. Deslgnated funds The Income funds of the charity include the 1011owing deslgnated funds whlch have beEn set aslde out of unrestricted fund by the tru5tÈes for Specific purposes.. Balall￿ ar 01 August 2021 IncominE Rèsourcos Resources expended Balance at 31 July 2022 Provislon ol e-Learnln8 courses for members Sub5idi5ed costs lor Tenet On-Demand Collèboration tender Èxercise Regional Piotur.Ed Conferences Sponsorship of Student EventslActlvities Free ReviEW OF In-House FM SeDflce Educom Facilltate Procurement Advisory Group IPAGI Facilitate Estate Group Marketlng and ffl3tÈrlals 2,278 71.680 10,000 45,000 409,103 40,000 3,707 5,000 2,708 10.000 12,2781 39,650 32,030 iio.0001 45,000 136.779 15,985 288.309 40,(K)O 13.7071 5,(K)O 2,708 10,000 599.476 367.959 231.517 23. Analysi5 of net assets between funds U#restrlcted 2022 Dp5ignated 2022 Total 2022 Total 2021 Fund balances at 31 July 2022 are Represellted by.. Intanglble fixed assetS-8oodwill Intangible fixed assets other Tonglble assets Current assets Pensions and Provlslons 240,000 57.700 53,514 4,654,991 492,000 240,(XX> 365,000 57.7fl) 72,810 53,514 63,144 4,886,508 4,215,653 492,000 12,192,000> 231.517 5,498,205 231,517 5,729,722 2.524,607 33- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 JUL Y2022 2Q Operating lease commilmen15 At the reportlng end date, the tharity had outstanding cotnmitments for future minlmum lease payments under non-cancellable operlting leases, whlch f411 due as follows.. Group 2022 Group 2021 Charity 2022 Charity 2021 Withln one year Between two and flve years In over fave year5 43.676 33,199 42.082 72,757 43,676 33,199 42,082 72,757 76,875 114,839 76,875 114,839 25. Related party transaction5 The Charlty has taken advantège of the exemption available in Sectlon 33.IA of FRS 102 whÈreby it has not disclosed transactlons with the ultimate parent company or any wholly owned subsidi4ry undertaklng of the group. The Trustees are Èrnployed by Instltution5 that are also members of CPL and benefit from the usage of its framework5 and CPL Learning activlties. A Trustee Is assoc13ted to Hopwood Hèll College which also access the procurement rnanaged service provided by Tenet. Grants payablefrom designated fund5 areavailableto all tnernber Institutions that pass the relevantCTlteria. Thls Is therefore open to In5titution5 whlth employ the trustees of the charlty. No Trustees are Involved in the review and approval of grant applications. LÈEds College of Bullding received Efant fundlng of £5,250 durfng the year. Hopwood Hall College was paid £500 for spon50rship of their Annual Student Awards. 26. Subsidiaries Consolldated financlal statement5 for parent charltable companies are required under the Charity SORP IFR51021 Detalls of the Charlty's 5ubsldlarfÈs on 31 July 2022 are as follows.. Name of undertaklng fteglstered offl Nature ol bu$lnes5 Class Df shares held % Held Dlrect ioo.(xJ Tenet Educatlon Service5 Llmlted (No. 0304941741 Tenet Procurement Setvlce5 Llmlted (No. It)0213981 United Kingdom Provision of advlsory and Ordlnary consultancy services Provision of advlsory and Ordlnary consultancy services United Kingdom Joo.00 All investments in subsldlarles are held at cost less prov15ion for Impairment and are eliminated upon consolidation. -34- CRESCENT PURCHASING LIMITED NOTES TO THE FINANCIALSTATEMENTS ICONTINUEDI FOR THE YEAR EAIDED 31 JUL Y2022 27. Cash generated from operations 2022 2021 Surplus lor the year Adjustment5 for.. Investment income re¢oenlsed in statement of financlal activities Amort153tlon and impairment of intangible assets Depreciation and iwpalrmÈnt of tanglble fixed a55ets Difference between penslon charge Bnd cash ¢ontrlbutions 41,115 63,769 110.4121 140,110 33,793 480,000 19,0771 138,693 33,298 462.000 Movernents in worklng capital.. Ilncreasel in debtors Incre35e/ldecreasel in creditors 1239,5551 1194,5331 20,734 14441 Cash geneiated from operations 465,785 493,706 35- Report to the trustees and summary of audit findings Crescent Purchasing Limited t/a Crescent Purchasing Consortium (“the Group”) Year ended 31 July 2022 Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 ## **1. Introduction** We are pleased to set out in this document our report to the trustees of Crescent Purchasing Limited for the year ended 31 July 2022. Our responsibilities as auditors are set out in the International Standards on Auditing (UK and Ireland) (“ISAs”). We are responsible for forming and expressing an opinion on the financial statements that have been prepared by management with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities. We have carried out our audit in accordance with the terms of our engagement letter dated 02 August 2018 in order to express an audit opinion for UK statutory purposes on the financial statements of Crescent Purchasing Limited for the year ended 31 July 2022. In this report, we present the key findings from our audit, together with a commentary on the significant matters arising. This report has been discussed comprehensively and agreed with David Owen and Mon-Yee Ackers. This report has been provided to the trustees to consider and ratify on behalf of Crescent Purchasing Limited. We do not owe a duty of care however it should be noted that information within this report will be shared internally within The Charity Commission for decision making purposes. We accept no duty, responsibility or liability to any other parties, since this report has not been prepared, and is not intended, for any other purpose. It should not be made available to any other parties without our prior written consent. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 ## **2. Statutory audit communication** - 2.1 Objectivity and independence We conducted our audit in accordance with the Code of Ethics of the Institute of Chartered Accountants in England & Wales and the Ethical Standards published by the United Kingdom Auditing Practices Board. We have considered our independence and objectivity in respect to the audit for the year ended 31 July 2022. In addition to auditing the financial statements we also provided, through other individuals, the following services to Crescent Purchasing Limited (“The Group”) for the year ended 31 July 2022: - Corporation tax advisory, compliance and submission services Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 We have outlined below the safeguards that we have put in place to ensure that these services do not cause any breaches in our independence and objectivity in relation to the audit. |Non audit serviceprovided|Safeguardsput inplace to reduce the threat to our integrity,independence and objectivity| |---|---| |Corporation tax advisory, compliance and
submission services|This service is provided by a separate individual from those who have audited the financial statements.| Haines Watts charged £8,000 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 2022 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 2022 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 2022 - 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 and amortisation is provided on a straight line basis on the cost of the 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 Customer relationship Up to 8 years straight line Brand Up to 8 years straight line Cloud-based server 5 years straight line Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 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 21 to the financial statements. ## 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 £5,729,722. Of these funds £231,517 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 are £6,451,565, £403,340 and £12,780 respectively. Following consolidation journals of £1,137,963 this brings the group general reserve balance to £5,729,722. ## 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**
3,205,115
3,205,115|**Tenet**
**Tenet**
**Crescent**
**Education**
**Procurement**
3,295,980
31,731
2,404| |---|---|---| |||3,295,980
31,731
2,404| There are £1,800 uncorrected errors detailed on A27. Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 ## 2.8 Significant difficulties encountered during the audit We did not encounter any significant difficulties during the audit. - 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 2022 ## **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.
New revenue stream income
has been reviewed and
confirmed to be correctly
accounted for.| |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.|Movement 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 2022 |Issue|Audit risk|Auditprocedures undertaken|Conclusion| |---|---|---|---| ||||In addition the remaining
assets of customer relationship
and the cloud-cased server
have been accounted for
correctly.| |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.| ## Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 |Issue|Audit risk|Auditprocedures undertaken|Conclusion| |---|---|---|---| |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 2022 ## **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.| ## Crescent Purchasing Limited t/a Crescent Purchasing Consortium Summary of audit findings for the year ended 31 July 2022 |Audit finding and recommendation|Priority|Management response| |---|---|---| |During our testing it was noted that authority from the Financial Controller in
relation to purchase invoices is given by amending the title of the relevant PDF
copyof the invoice to include their initials. This is subject topotential misuse.||It was agreed that the finance team would review
the system for approval.| |During our testing of other income it was noted that a sales invoice was raised
over 3 weeks after the terms and conditions had been signed by the customer.
This was in relation to the exhibition stallholders. We would advise that invoices
are raised in a timelymanner for all income streams.||| ## **5. Status of audit recommendations from previous year** No audit recommendations were stated in the prior year.